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________ is the mix of equipment and human skills in a process.

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Capital intensity

Project processes involve a higher degree of customization than line processes.

A) True
B) False

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Which one of the following is NOT normally an advantage of outsourcing?


A) increased supplier options due to globalization
B) advanced capabilities to coordinate suppliers through information technology
C) less required investment in capital equipment
D) tighter control over product quality

E) None of the above
F) B) and D)

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The manner and extent to which customer involvement becomes part of the process is determined by


A) the potential for cost savings based on self-service.
B) the extent to which preferences for customized features must be determined.
C) whether or not the customer has to be present fora service to be provided.
D) all the factors listed above.

E) A) and B)
F) A) and C)

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What is the difference between fixed automation and flexible (or programmable)automation?

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Fixed automation produces one ...

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Compare the typical arrangement of high volume processes to low volume processes in terms of the process decisions of process structure,customer involvement,resource flexibility,and capital intensity.

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High volume operations typically involve...

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Project processes are typically used to create one-of-a-kind products or services.

A) True
B) False

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More vertical integration means more outsourcing.

A) True
B) False

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Job processes support higher production volumes than line processes.

A) True
B) False

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The emphasis of reengineering is on the functional departments.

A) True
B) False

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Which one of the following groups of activities is likely to be shown on a process chart?


A) operation, inspection, delay
B) operation, capital intensity, flow strategy
C) transportation, material flow, physical layout
D) storage, delay, personnel involved

E) A) and B)
F) A) and C)

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A continuous process is characterized by a high degree of job customization.

A) True
B) False

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Simulation is an act of reproducing the behaviour of a process using a model that describes each step of the process.

A) True
B) False

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A front-office process has high customer involvement,with the process being directly visible to the internal or external customer.

A) True
B) False

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Which of the following statements about customer involvement is best?


A) In service industries, customer contact is of minor importance.
B) For services that directly involve the customer, the customer often dictates time and location of the service.
C) A firm that produces standardized products often seeks customer specifications.
D) When customer involvement is high a process is more likely to use a standardized-services process rather than a customized-services process.

E) None of the above
F) A) and B)

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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.

E) A) and C)
F) A) and B)

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


A) a firm using a flexible flow strategy
B) a firm facing a stable demand
C) a firm using a line flow strategy
D) a firm producing only one product

E) A) and B)
F) B) and C)

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The more processes in the supply chain that the organization performs itself,the less vertically integrated it is.

A) True
B) False

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Which one of the following statements concerning flow diagrams is NOT true?


A) Flow diagrams can take many forms.
B) It is helpful on flow diagrams to label each step with process measurements such as cost, capacity, or total elapsed time.
C) Flow diagrams trace the flow of information, customers, equipment, employees, or materials through a process.
D) The dotted line of visibility separates activities subcontracted from those done in-house.

E) All of the above
F) C) and D)

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D

Explain the distinction between processes structured as line processes and continuous flow processes.Provide examples of both types of processes to support your explanation.

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A line process involves linear movement of materials,information,or customers from one operation to the next according to a fixed sequence.Volumes are relatively high and products or services are standardized,allowing productive resources to be organized around a product or service.Services based on line processes typically follow a standardized-services strategy.In manufacturing,line processes are often referred to as mass production or assembly lines,common labels associated with high volume,repetitive manufacturing operations.Typically production lots for line processes are not linked to specific customer orders,rather line processes follow a make-to-stock strategy so that inventory is available to respond to customer orders.Advances in processing and information technologies are making it more feasible for line processes to incorporate greater product variety,based on a assemble-to-order strategy that controls the addition of standard options to the main product or service. This combination of line processes with high volume and customization of product or services is referred to as mass customization. Continuous flow processes involve the extreme end of high-volume,standardized production using rigid line flow process facilities.Process industries such as petroleum refineries,steel plants,and high volume food processing facilities are typical of continuous flow processes.Continuous flow processes involve capital-intensive production technology,typically operated with large production runs to maximize capacity utilization and to avoid expensive shutdowns and startups. Raw materials are continually input to the process during production,with the output flowing from one processing stage to the next in a continuous manner. Examples used to support the explanation of the distinction between line and continuous flow processes will vary.

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