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Q:
The "Define" step of the Six Sigma Process Improvement Model entails establishing the ________ and boundaries of the process to be analyzed.
Q:
The first step of the systematic approach to process analysis is ________.
Q:
________ is the documentation and detailed understanding of how work is performed and how it can be redesigned.
Q:
Widespread participation in process analysis is essential not only because of the work involved but also because:
A) employees tend to neglect their regular work duties, thus no one falls too far behind.
B) it builds commitment.
C) no one can analyze a process by himself.
D) a silo mentality should prevail and this requires large numbers of workers.
Q:
Performance measures such as average response times, repair times, and percent defective are referred to as:
A) benchmarks.
B) metrics.
C) targets.
D) tactics.
Q:
A systematic approach to process analysis includes the step:
A) reengineering.
B) integration.
C) order fulfillment.
D) define scope.
Q:
Process analysis focuses on:
A) how work is actually done.
B) who is responsible for the customer.
C) the customer's needs.
D) the number of steps in between supplier and customer.
Q:
A process selected for reengineering should be a:
A) core process.
B) front-office process.
C) hybrid office.
D) back office process.
Q:
A team consisting of members from each functional area affected by the process change is referred to as a(n):
A) reengineering team.
B) cross-functional team.
C) process team.
D) improvement team.
Q:
Which of these tools is considered a primary enabler of process reengineering?
A) supply chain partners
B) information technology
C) logistics
D) infrastructure
Q:
Which one of the following statements concerning the role of process reengineering is best?
A) Reengineering is the fundamental rethinking and radical redesign of business processes.
B) Reengineering efforts should focus on one functional department at a time.
C) Information technology should be kept separate from reengineering initiatives.
D) Reengineering requires an attitude of incremental improvement.
Q:
Process improvement teams that focus on processes that cut across departmental boundaries have the silo mentality.
Q:
Process analysis is the documentation and detailed understanding of how work is performed and how it can be redesigned.
Q:
More often than not, process improvement takes place whether or not a process is reengineered.
Q:
With a dramatic flourish, the team leader tore the employee orientation guidelines into pieces. He then distributed blank pieces of paper to the team and asked them to envision the perfect orientation process without regard to how it has always been done. This team is probably engaging in process reengineering.
Q:
Reengineering is the fundamental rethinking and radical redesign of processes to improve performance dramatically.
Q:
Is an executive MBA program at your school a plant within a plant? Explain your reasoning.
Q:
________ are different operations within a facility with individualized competitive priorities, processes, and workforces under the same roof.
Q:
Which one of the following statements on the concept of gaining focus is best?
A) Focused factories maximize the amount of customization.
B) Small sizes of many focused factories make it difficult to compete on the basis of shorter lead times.
C) Plants within plants are different operations within a facility that can have individualized competitive priorities and processes.
D) Focused factories are large factories producing all the products that the company offers.
Q:
A firm that chooses to compete based on delivery speed and variety would most likely have:
A) a make-to-order production and inventory strategy.
B) an assemble-to-order production and inventory strategy.
C) a make-to-stock production and inventory strategy.
D) an engineer-to-order production and inventory strategy.
Q:
One method for a factory to gain operational focus is to:
A) build large enough factories to produce all products and services the company offers.
B) hire more specialists and supervisors to control the operations.
C) reorganize existing facilities to the plant-within-plant (PWP) approach.
D) remodel stores to create the effect of many small boutiques under one roof.
Q:
Which one of the following statements on the concept of focused factories is best?
A) emphasizes economies of scale, rather than diseconomies of scale
B) prefers larger facilities producing all of the products or services the company offers
C) reduces the range of demands placed on an operation so management can concentrate on fewer tasks
D) emphasizes flexibility rather than cost
Q:
When volume is higher, automation and capital intensity are more likely.
Q:
Front offices generally emphasize top quality and customization.
Q:
Define economies of scope, and identify how they relate to flexible automation.
Q:
Comment on the need for flexibility in both the workforce and capital equipment. What process types and production situations require greater flexibility?
Q:
Provide examples of three different processes that rely on the customer for approximately 100% of the process; about 50%; and about 0%. What unique challenges exist for operations and supply chain managers and process designer in each one of these scenarios?
Q:
________ automation can handle various products through programmability.
Q:
________ automation produces only one type of product or part in a sequence of simple operations.
Q:
________ is the mix of equipment and human skills in a process.
Q:
________ reflects the ways in which customers become part of the process and the extent of their participation.
Q:
________ is the ease with which employees and equipment can handle a wide variety of products, output levels, duties, and functions.
Q:
The break-even graph shown below represents the cost structure associated with a flexible production process and one that is fixed (less flexible). Using the information displayed in the graph, determine the cost structures associated with the two alternative production methods.
Q:
Two manufacturing processes are being considered for making a new product. Process #1 is less capital intensive, with fixed costs of $50,000 per year and variable costs of $700 per unit. Process #2 has fixed costs of $400,000 annually, with variable costs of $200 per unit.
a. What is the break-even quantity for the two processes?
b. If annual sales are expected to be 600 units, which process should be selected?
c. If lowest overall costs per year is your overall objective, for what range of annual production quantities should you select Process #1? Process #2?
d. Operations and Engineering have found a way to reduce the cost of Process #2, such that the fixed costs for this process decrease from $400,000 to $300,000 annually. All other costs remain the same (Process #1 fixed = $50,000 / year, Process #1 variable = $700 / unit, Process #2 variable = $200 / unit). What is the new break even quantity between the two processes?
e. Does this change the process selection for the annual sales volume of 600 units? If so, for what range of annual production quantities should you select Process #1 and Process #2?
Q:
Which of the following statements about additive manufacturing capabilities is not true?
A) Changes in product design are difficult and costly to incorporate.
B) It allows firms to react to a wider variety of customer demands.
C) Three-dimensional (3D) printing technology is one example of additive manufacturing.
D) It enables firms to achieve substantial economies of scope.
Q:
Which statement about economies of scope is not true?
A) Economies of scope are often attained through programmable automation.
B) Economies of scope bring together two competitive priorities—customization and low price.
C) Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately.
D) Economies of scope reflect low capital intensity and high resource flexibility.
Q:
Suppose that competitive priorities call for offering a wide variety of customized services. Which of the following process decisions would be more likely?
A) more capital intensity
B) more resource flexibility
C) more process automation
D) less customer involvement
Q:
Which of the following statements concerning resource flexibility is best?
A) Flexible equipment is useful to companies with low production volumes and high customization.
B) Investment in general-purpose equipment is warranted if the firm expects to sell more than the break-even amount.
C) Manufacturing efficiency increases with general-purpose equipment.
D) Resource flexibility is crucial for line-flow processing.
Q:
Which of the following statements regarding resource flexibility is best?
A) Training is a small part of worker flexibility.
B) Specialization of employees is consistent with worker flexibility.
C) Worker flexibility is not a priority if the process is subject to hourly or seasonal peaks in demand.
D) Resource flexibility requires employees to be able to perform a broad range of duties, and equipment usually must be more general purpose.
Q:
Higher volume in a process is generally associated with:
A) more resource flexibility.
B) more capital intensity.
C) greater customer involvement.
D) fewer opportunities for standardization.
Q:
With flexible automation, the ability to reprogram instructions can be useful in:
A) line flow, but not flexible flow, operations.
B) flexible flow, but not line flow, operations.
C) either line flow or flexible flow operations.
D) situations in which top efficiency is mandatory, but only if volumes are high.
Q:
Which one of the following statements about flexible automation is best?
A) Investment cost is lower when a transfer machine handles many operations.
B) Chemical processing plants and oil refineries mainly utilize programmable automation.
C) It is an automatic process that can be reprogrammed to handle various products.
D) It achieves top efficiency; accommodating new products is difficult and costly.
Q:
A higher level of fixed automation can be justified by:
A) decreased labor productivity.
B) longer cycle time.
C) higher demand volumes.
D) lower sales.
Q:
Scenario 2.6 You currently purchase a part used in your production process from an outside supplier, and have decided to begin making this part in-house. You have two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment. Cost information for these two options is as follows: ALTERNATIVE FIXED COST VARIABLE COST Special-Purpose Equipment $200,000 per year $15 per unit General-Purpose Equipment $50,000 per year $20 per unit Use Scenario 2.6 to solve this mystery. At an annual requirement of 40,000 units, what does the company save per year by selecting the lower-cost option? A) $150,000 B) $300,000 C) $50,000 D) $40,000
Q:
Scenario 2.4 A company is considering two options for the production of a part needed downstream in the manufacturing process. Particulars are as follows: Specialized automation Fixed Costs = $9,000 / month Variable Cost / Unit = $2 General automation: Fixed Costs = $3,000 / month Variable Cost / Unit = $5 Use Scenario 2.4 to solve this problem. What does the company save each month by selecting this low-cost option compared to the higher-cost option (for monthly requirements of 3,000 units)? A) $1,000 B) $3,000 C) $6,000 D) Can't be determined with information given.
Q:
Active customer contact and personalized attention can lower cost to the customer by: A) increasing the capital intensity. B) trading fixed costs for an equivalent variable cost. C) substituting customer efforts for those of the service provider. D) lowering the level of technology involved.
Q:
Which of the following statements about customer involvement is best?
A) In service industries, customer contact is of minor importance.
B) High task divergence and flexible process flows require more flexibility of the process's employees, facilities and equipment.
C) A firm that produces standardized products often seeks customer specifications.
D) When customer involvement is highly customized, a process is more likely to use a standardized-services process rather than a customized-services process.
Q:
Additive manufacturing capabilities, such as 3D printing, prevent firms from achieving substantial economies of scope.
Q:
Customer involvement is especially important for service process strategy decisions, particularly if customer contact is high.
Q:
In a service process, capital intensity varies with volume in both front office and back office operations.
Q:
A toaster is an example of flexible automation.
Q:
The ability to reprogram machines is useful for both low-customization and high-customization processes.
Q:
Fixed automation is appropriate for both line and continuous flow operations.
Q:
Capital intensive automation is appropriate for both high and low volume operations.
Q:
High customer involvement increases service provider productivity and makes quality measurement easier.
Q:
List and briefly define four different basic types of manufacturing processes.
Q:
Describe the differences among make-to-order, assemble-to-order, and make-to-stock strategies from the producer's and from the customer's perspective.
Q:
A(n) ________ process would probably not be used to produce products before a customer has placed a firm order.
Q:
The principle of postponement is employed by a producer using a(n):
A) make-to-stock strategy.
B) make-to-order strategy.
C) assemble-to-order strategy.
D) engineer-to-order strategy.
Q:
A manufacturer that produces standard products in large volumes is likely to be using a(n):
A) make-to-stock strategy.
B) make-to-order strategy.
C) assemble-to-order strategy.
D) engineer-to-order strategy.
Q:
Which one of the following statements about process management is best?
A) When customization must be high, equipment should be general purpose, and employees need to perform a broader range of duties.
B) The traditional relationship between capital intensity and resource flexibility is that if one is high, so is the other.
C) Creating a more capital-intensive process tends to reduce the fixed cost and raise the variable unit cost.
D) Economies of scope mean that a process should be devoted to a single product or service to achieve high volumes.
Q:
The product-process matrix used to analyze manufacturing operations brings together the elements of:
A) volume, process, and intensity.
B) process, intensity, and product design.
C) intensity, volume, and process.
D) customization, volume, and process.
Q:
Which of the following statements about process choice is best?
A) A batch process typically has a standard sequence of operations through the facility.
B) Automobiles and appliances are examples of products created using a continuous flow process.
C) Continuous flow processes are very capital intensive.
D) A custom cake operation is an example of a batch process.
Q:
A job process should be preferred when:
A) workforce and equipment are specialized.
B) products are made to stock type.
C) customization is high and volume is low.
D) customization is low and volume is high.
Q:
Which of the following is sometimes called mass production?
A) batch process and make-to-order strategy
B) line process and make-to-stock strategy
C) continuous flow process and assemble-to-order strategy
D) job process and make-to-order strategy
Q:
The principle of postponement is modeled by the worker that has known his assignment for several weeks, but waits until the day before the product is to be delivered to begin production.
Q:
Explain the types of decisions that operations managers are involved in and how they are linked to a firm's strategy.
Q:
Effective management of its processes can allow a firm to reduce its ________ and also increase ________.
Q:
Each function of an organization is connected with operations through shared ________.
Q:
________ are often responsible for key performance measures such as cost and quality.
Q:
The key decisions to eliminate activities that do not add value while improving those that do are an important part of:
A) managing processes.
B) managing customer demand.
C) managing supply chains.
D) managing people.
Q:
If a retail store owner does not have a popular item in stock because he underestimated the forecasted sales for that item, he most likely has a challenge with:
A) managing processes.
B) managing customer demand.
C) managing supply chains.
D) managing people.
Q:
Operations managers are involved at both the strategic and tactical levels of corporate strategy.
Q:
It is the sole responsibility of the operations function of an organization to design and operate processes that are part of a supply chain.
Q:
The effective operation of a firm and its supply chain is more important than the design and implementation of its processes.
Q:
Managing supply chains does not involve processes external to the firm.
Q:
Understanding the concepts in this text will help you become an effective manager in any functional area of business.
Q:
What are some of the concerns operations managers must address regarding using the internet of things? Cite a specific example.
Q:
What are some ethical issues that are prevalent in organizations that have a global operations presence?
Q:
What are some disadvantages of globalization?