Question 1

Process decisions are

Accepted Answer

strategic in nature.

Question 2

No process can exist without

Accepted Answer

at least one product or service.

Question 3

Customer involvement reflects the ways in which customers

Accepted Answer

become part of the process and the extent of their participation.

Question 4

The degree of customization is one factor that impacts

Accepted Answer

the selection of a manufacturers process structure.

Question 5

Service providers with a line process tend to move customers, materials, or information in a

Accepted Answer

fixed sequence from one operation to the next.

Question 6

A moment of truth or service encounter is

Accepted Answer

face to face interaction between the customer and a service provider.

Question 7

Active contact in services means that

Accepted Answer

the customer is very much part of the creation of the service.

Question 8

Divergence is the extent to which

Accepted Answer

the process is customized with considerable latitude on how the tasks are performed.

Question 9

A front office structure features

Accepted Answer

high levels of customer contact where the service provider interacts directly with the internal or external customer.

Question 10

Beginning points for manufacturing process structure decisions are the

Accepted Answer

volume level, amount of customization, and competitive priorities.

Question 11

A job process has

Accepted Answer

a relatively high level of customization.

Question 12

A job process has the highest level of

Accepted Answer

customization of the process choices.

Question 13

In a line process, there is

Accepted Answer

little variability in the products manufactured, and production and material handling equipment are often specialized.

Question 14

Petroleum refineries typically use

Accepted Answer

continuous flow processes.

Question 15

A make to stock strategy involves

Accepted Answer

holding items in stock for immediate delivery and is feasible for standardized products with high volumes and reasonably accurate forecasts.

Question 16

Assemble to order strategy produces

Accepted Answer

a wide variety of products from relatively few assemblies and components after orders are received.

Question 17

A layout is the

Accepted Answer

physical arrangement of human and capital resources used by processes clustered together into operations.

Question 18

A block plan allocates

Accepted Answer

space and indicates the placement of each department within the framework of a new or existing facility.

Question 19

A closeness matrix can reflect the

Accepted Answer

qualitative judgments of managers and employees, or can be the number of trips between each par of departments.

Question 20

A detailed layout showing exact size and shape of each department or work center cannot be designed until

Accepted Answer

after a satisfactory block plan has been developed.

Question 21

A flexible workforce usually requires

Accepted Answer

greater skills and training, which comes at a cost. However, total benefits can exceed these costs.

Question 22

Resource flexibility helps to

Accepted Answer

absorb feast or famine workloads in individual operations that are caused by low volume production, divergent tasks, and fluid scheduling.

Question 23

Fixed automation is appropriate for

Accepted Answer

line and continuous flow operations.

Question 24

The ability to reprogram machines is useful for

Accepted Answer

both low customization and high customization processes.

Question 25

Economies of scope reflect the ability to

Accepted Answer

produce multiple products more cheaply in combination than separately.

Question 26

In a service process, capital intensity varies with

Accepted Answer

volume in both front office and back office operations.

Question 27

The common denominator for decisions on service processes is

Accepted Answer

primarily customer contact.

Question 28

The common denominator for decisions on manufacturing processes is

Accepted Answer

volume.

Question 29

Reengineering is the

Accepted Answer

fundamental rethinking and radical redesign of processes to improve performance dramatically.

Question 30

Which one of the following statements concerning process management is best?

Accepted Answer

The variable underlying all four major process decisions is volume.

Question 31

Several key decisions must be made in building an effective process design. Which one of the following best identifies them?

Accepted Answer

Capital intensity, resource flexibility, customer involvement, and process structure.

Question 32

People processing services require:

Accepted Answer

Physical presence.

Question 33

A college course taught in a case discussion format is an example of:

Accepted Answer

Active contact.

Question 34

A yacht maker produces customized yachts for a clientele that want a one of a kind watercraft. The process is said to be:

Accepted Answer

Divergent.

Question 35

The process structure that best describes a waiters position at a restaurant would be classified as:

Accepted Answer

Front office.

Question 36

Field service representatives are classified as a:

Accepted Answer

Front office

Question 37

A process that is primarily back office is:

Accepted Answer

The payroll clerk that calculates your paycheck.

Question 38

Front offices typically emphasize:

Accepted Answer

Top quality and customization.

Question 39

Back offices typically emphasize:

Accepted Answer

Low cost operations and on time delivery.

Question 40

Which of the following is sometimes called mass production?

Accepted Answer

Line process and make to stock strategy.

Question 41

A job process should be preferred when:

Accepted Answer

Customization is high and volume is low.

Question 42

When the process choice is a job process, it requires:

Accepted Answer

organizing the resources around the process.

Question 43

Which of the following statements about process choice is best?

Accepted Answer

Continuous flow processes are very capital intensive.

Question 44

The product matrix used to analyze manufacturing operations brings together the elements of:

Accepted Answer

Customization, volume, and process.

Question 45

Which one of the following statements about process management is best?

Accepted Answer

When customization must be high, equipment should be general purpose, and employees need to perform a broader range of duties.

Question 46

A manufacturer that produces standard products in large volumes is likely to be using a:

Accepted Answer

make to stock strategy.

Question 47

The principle of postponement is employed by a producer using a:

Accepted Answer

assemble to order strategy.

Question 48

Combining a line process with the make to strategy is sometimes called:

Accepted Answer

mass production.

Question 49

Which of the following statements about customer involvement is best?

Accepted Answer

High task divergence and flexible process flows require more flexibility of the process\'s employees, facilities an equipment.

Question 50

Active customer contact and personalized attention can lower cost to the customer by:

Accepted Answer

substituting customer efforts for those of the service provider.

Question 51

An advantage of customer involvement in a service process is that:

Accepted Answer

if the customers are price sensitive, they might feel they are receiving more value.

Question 52

More fixed automation typically means:

Accepted Answer

higher demand volumes.

Question 53

Which of the following statements about flexible automation is best?

Accepted Answer

It is an automatic process that can be reprogrammed to handle various products.

Question 54

With flexible automation, the ability to reprogram instructions can be useful in:

Accepted Answer

either line flow or flexible flow operations.

Question 55

Higher volume in a process is generally associated with:

Accepted Answer

more capital intensity.

Question 56

Low capital intensity is generally associated with:

Accepted Answer

higher customer involvement.

Question 57

As it relates to process management, the concept of a flexible workforce is defined as:

Accepted Answer

workers who are capable of performing many different tasks.

Question 58

Which of the following statements regarding flexibility is best?

Accepted Answer

Resource flexibility requires employees to be able to perform a broad range of duties, and equipment usually must be more general purpose.

Question 59

Which of the following statements concerning resource flexibility is best?

Accepted Answer

Flexible equipment is useful to companies with low production volumes and high customization.

Question 60

Suppose the competitive priorities call for offering a wide variety of customized services. Which of the following process decisions would be more likely?

Accepted Answer

More resource flexibility.

Question 61

Under which one of the following environments would you opt for a higher degree of resource flexibility?

Accepted Answer

A firm using a flexible flow strategy.

Question 62

Which statements about economies of scope is true?

Accepted Answer

1. Economies of scope are often attained through programmable automation. 2. Economies of scope bring together two competitive priorities - customizations and low price. 3. Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately.

Question 63

Which one of the following statements on the concept of focused factories is best?

Accepted Answer

Reduces the range of demands placed on an operation so management can concentrate on fewer tasks.

Question 64

One method for a factory to gain operational focus is to:

Accepted Answer

Reorganize existing facilities to the plant within plant approach.

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