Operations Management Chapter 3 Questions

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Process decisions are
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strategic in nature.
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No process can exist without
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at least one product or service.
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Customer involvement reflects the ways in which customers
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become part of the process and the extent of their participation.
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The degree of customization is one factor that impacts
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the selection of a manufacturers process structure.
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Service providers with a line process tend to move customers, materials, or information in a
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fixed sequence from one operation to the next.
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A moment of truth or service encounter is
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face to face interaction between the customer and a service provider.
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Active contact in services means that
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the customer is very much part of the creation of the service.
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Divergence is the extent to which
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the process is customized with considerable latitude on how the tasks are performed.
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A front office structure features
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high levels of customer contact where the service provider interacts directly with the internal or external customer.
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Beginning points for manufacturing process structure decisions are the
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volume level, amount of customization, and competitive priorities.
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A job process has
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a relatively high level of customization.
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A job process has the highest level of
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customization of the process choices.
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In a line process, there is
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little variability in the products manufactured, and production and material handling equipment are often specialized.
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Petroleum refineries typically use
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continuous flow processes.
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A make to stock strategy involves
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holding items in stock for immediate delivery and is feasible for standardized products with high volumes and reasonably accurate forecasts.
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Assemble to order strategy produces
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a wide variety of products from relatively few assemblies and components after orders are received.
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A layout is the
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physical arrangement of human and capital resources used by processes clustered together into operations.
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A block plan allocates
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space and indicates the placement of each department within the framework of a new or existing facility.
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A closeness matrix can reflect the
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qualitative judgments of managers and employees, or can be the number of trips between each par of departments.
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A detailed layout showing exact size and shape of each department or work center cannot be designed until
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after a satisfactory block plan has been developed.
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A flexible workforce usually requires
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greater skills and training, which comes at a cost. However, total benefits can exceed these costs.
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Resource flexibility helps to
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absorb feast or famine workloads in individual operations that are caused by low volume production, divergent tasks, and fluid scheduling.
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Fixed automation is appropriate for
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line and continuous flow operations.
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The ability to reprogram machines is useful for
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both low customization and high customization processes.
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Economies of scope reflect the ability to
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produce multiple products more cheaply in combination than separately.
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In a service process, capital intensity varies with
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volume in both front office and back office operations.
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The common denominator for decisions on service processes is
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primarily customer contact.
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The common denominator for decisions on manufacturing processes is
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volume.
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Reengineering is the
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fundamental rethinking and radical redesign of processes to improve performance dramatically.
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Which one of the following statements concerning process management is best?
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The variable underlying all four major process decisions is volume.
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Several key decisions must be made in building an effective process design. Which one of the following best identifies them?
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Capital intensity, resource flexibility, customer involvement, and process structure.
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People processing services require:
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Physical presence.
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A college course taught in a case discussion format is an example of:
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Active contact.
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A yacht maker produces customized yachts for a clientele that want a one of a kind watercraft. The process is said to be:
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Divergent.
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The process structure that best describes a waiters position at a restaurant would be classified as:
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Front office.
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Field service representatives are classified as a:
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Front office
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A process that is primarily back office is:
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The payroll clerk that calculates your paycheck.
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Front offices typically emphasize:
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Top quality and customization.
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Back offices typically emphasize:
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Low cost operations and on time delivery.
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Which of the following is sometimes called mass production?
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Line process and make to stock strategy.
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A job process should be preferred when:
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Customization is high and volume is low.
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When the process choice is a job process, it requires:
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organizing the resources around the process.
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Which of the following statements about process choice is best?
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Continuous flow processes are very capital intensive.
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The product matrix used to analyze manufacturing operations brings together the elements of:
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Customization, volume, and process.
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Which one of the following statements about process management is best?
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When customization must be high, equipment should be general purpose, and employees need to perform a broader range of duties.
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A manufacturer that produces standard products in large volumes is likely to be using a:
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make to stock strategy.
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The principle of postponement is employed by a producer using a:
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assemble to order strategy.
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Combining a line process with the make to strategy is sometimes called:
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mass production.
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Which of the following statements about customer involvement is best?
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High task divergence and flexible process flows require more flexibility of the process’s employees, facilities an equipment.
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Active customer contact and personalized attention can lower cost to the customer by:
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substituting customer efforts for those of the service provider.
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An advantage of customer involvement in a service process is that:
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if the customers are price sensitive, they might feel they are receiving more value.
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More fixed automation typically means:
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higher demand volumes.
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Which of the following statements about flexible automation is best?
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It is an automatic process that can be reprogrammed to handle various products.
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With flexible automation, the ability to reprogram instructions can be useful in:
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either line flow or flexible flow operations.
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Higher volume in a process is generally associated with:
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more capital intensity.
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Low capital intensity is generally associated with:
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higher customer involvement.
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As it relates to process management, the concept of a flexible workforce is defined as:
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workers who are capable of performing many different tasks.
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Which of the following statements regarding flexibility is best?
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Resource flexibility requires employees to be able to perform a broad range of duties, and equipment usually must be more general purpose.
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Which of the following statements concerning resource flexibility is best?
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Flexible equipment is useful to companies with low production volumes and high customization.
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Suppose the competitive priorities call for offering a wide variety of customized services. Which of the following process decisions would be more likely?
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More resource flexibility.
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Under which one of the following environments would you opt for a higher degree of resource flexibility?
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A firm using a flexible flow strategy.
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Which statements about economies of scope is true?
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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.
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Which one of the following statements on the concept of focused factories is best?
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Reduces the range of demands placed on an operation so management can concentrate on fewer tasks.
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One method for a factory to gain operational focus is to:
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Reorganize existing facilities to the plant within plant approach.
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Which one of the following statements on the concept of gaining focus is best?
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Plants within plants are different operations within a facility that can have individualized competitive priorities and processes.
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A plant that has separate operations that are relatively autonomous with individualized competitive priorities, processes, and workforce under the same roof are said to have:
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plant within plants.
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Which one of the following statements concerning process reengineering is true?
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1. Reengineering is the fundamental rethinking and radical design of business processes. 2. Information technology is a major enabler of reengineering. 3. Reengineering requires a “clean slate” philosophy.
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Which one of the following statements about reengineering is true?
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It is not appropriate for all organizations and all processes.
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Which statement on reengineering and process improvement is best?
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Reengineering starts with a “clean slate” whereas process improvement looks for ways to incrementally improve.
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A primary enabler of process reengineering is:
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Information technology.
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A team consisting of members from each functional area affected by the process change is referred to as a:
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Cross functional team.
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A process selected for reengineering should be a:
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Core process.
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_____ is the ease with which employees and equipment can handle a wide variety of products, output levels, duties, and functions.
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Resource flexibility.
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_____ reflects the ways in which customers become part of the process and the extent of their participation.
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Customer involvement.
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_____ is the mix of equipment and human skills in a process.
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Capital intensity.
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_____ means that the customer is very much a part of the creation of the service and affects the process itself.
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Active contact or customer involvement.
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Customer, materials, or information move in diverse ways in processes that have _____.
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Active contact.
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A _____ process has high customer contact where the service provider interacts directly with the internal or external customer.
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Front office.
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A _____ allocates space and indicates placement of each department.
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Block plan.
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A _____ gives the relative importance of each pair of operations or departments being located close together.
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Closeness matrix.
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The most elementary way to develop a block plan that satisfies performance criteria and area requirements is by _____.
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Trial and error.
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The _____ method is a mathematical model used to evaluate layouts based on proximity factors.
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Weighted distance.
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The _____ method measures distance between two points with a series of 90 degree turns.
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Rectilinear distance.
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_____ automation produces one type o product or part in a sequence of simple operations.
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Fixed.
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_____ automation can handle various products through programmability.
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Flexible
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_____ are different operations within a facility with individualized competitive priorities, processes, and workforces under the same roof.
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Plants within plants.
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When a firm splits a large factory that makes all of a firms products into smaller specialized plants that each make one product, they have created _____.
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Focused factories or plants within plants.

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