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Exam 3: Process Strategy

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Question 61

True/False

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A layout is the physical arrangement of human and capital resources used by processes clustered together into operations.

A) True
B) False

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Question 62

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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.

E) C) and D)
F) B) and D)

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Question 63

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Figure 3.2 A company of four departments has the following closeness factors and current locations of all departments.Assume rectilinear distance. -Using the information in Figure 3.2,which of these arrangements has the best weighted-distance score?

Name four other business functions within a firm besides operations and describe processes within each function.

Use the following to answer the questions below. 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: -Refer to the instruction above.For what range of output is the General-Purpose Equipment the low-cost option?

A closeness matrix can reflect the qualitative judgments of managers and employees,or can be the number of trips between each pair of departments.

Which of the following statements regarding capital intensity is NOT true?

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.

The product-process matrix brings together the elements of volume,process,and quality.

Use the following to answer the questions below. A company must decide on the type of equipment to buy in order to manufacture a new product line.The company can purchase an all-purpose machine,with fixed costs amounting to $20,000 per year,and it will cost $40 / unit to produce the new line on this machine.It can also buy a special-purpose machine,with fixed costs of $50,000 per year,and the per unit cost on this machine is $30. -Refer to the instruction above.What is the break-even quantity between the two machines?

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

Which of the following is sometimes called mass production?

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?

Use the following to answer the questions below. A company must decide on the type of equipment to buy in order to manufacture a new product line.The company can purchase an all-purpose machine,with fixed costs amounting to $20,000 per year,and it will cost $40 / unit to produce the new line on this machine.It can also buy a special-purpose machine,with fixed costs of $50,000 per year,and the per unit cost on this machine is $30. -Refer to the instruction above.What does the company save for the year by selecting this low-cost option (for annual requirements of 5,000 units) ?

Fixed automation maximizes efficiency and results in the lowest variable cost per unit possible with high output volume.

The degree of process divergence is what keeps a large batch process from being economically produced using a line process.

A process that is primarily back office is:

A toaster is an example of flexible automation.

Use the following to answer the questions below. A company must decide on the type of equipment to buy in order to manufacture a new product line.The company can purchase an all-purpose machine,with fixed costs amounting to $20,000 per year,and it will cost $40 / unit to produce the new line on this machine.It can also buy a special-purpose machine,with fixed costs of $50,000 per year,and the per unit cost on this machine is $30. -Refer to the instruction above.Which alternative should be selected if annual requirements are 5,000 units?

Resource flexibility determines whether resources are organized around products or processes.