Deck 4: Process Configuration

Question 1

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

A) emphasize flexibility rather than cost
B) emphasize economies of scale, rather than diseconomies of scale
C) reduce the range of demands placed on a factory so management can concentrate on fewer tasks
D) prefer larger facilities producing all of the products or services the company offers

Answer 1

reduce the range of demands placed on a factory so management can concentrate on fewer tasks

Question 2

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

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

Answer 2

operation, inspection, delay

Question 3

Which of the following is structured to illustrate which groups or functional areas have responsibility for specific sub- processes using lanes?

A) capital budgeting
B) flow diagram
C) swim lane flowchart
D) process chart

Answer 3

swim lane flowchart

Question 4

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

A) Automation refers to a system or piece of equipment that is self- regulating and self- acting.
B) Capital intensity can be a prohibitive investment for low- volume operations.
C) Leasing is a method to acquire equipment while defraying financial risk.
D) Decreased amounts of automation increase capital intensity.

Question 5

Process analysis involves managers asking critical questions that might create better customer value. Which one of the following questions is NOT relevant to open- ended evaluation?

A) Why is the process even being done?
B) Why is it being done and who is doing it?
C) Why is it being done and when it is being done?
D) Why is it being done and where it is being done?

Question 6

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 low capital intensity and high resource flexibility.
D) Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately.

Question 7

Which of the following is an example of FORWARD integration?

A) a group of farmers decision to form a cooperative to build and operate a roadside market to sell fresh produce.
B) the decision by the owner of a sawmill to buy a large woodlot adjacent to the mill.
C) an auto manufacturer deciding to purchase interior door panels from suppliers rather than manufacturer them internally.
D) a food processing company's decision to enter into long term supply contracts with farmers.

Question 8

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

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

Question 9

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

A) Process management is a short- term decision, and thus it has a tactical rather than a strategic focus.
B) Process changes should be made only when introducing new products or services.
C) A company's operations strategy is the primary output of its major process decisions.
D) The variable underlying all five major process decisions is volume.

Question 10

Which of the following statements is MOST likely to be associated with a low volume production?

A) high capital- intensity and automation
B) high resource flexibility
C) less customer involvement
D) line or continuous process

Question 11

Analysis of a process is most likely to be economically beneficial if the process is

A) the first operation on an assembly line.
B) an operation rarely performed.
C) a very fast operation.
D) a bottleneck operation.

Question 12

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

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

Question 13

Which one of the following statements on the concept of gaining focus is best?

A) Focused factories are large factories producing all the products that the company offers.
B) Focused factories maximize the amount of customization.
C) Plants within plants are different operations within a facility that can have individualized competitive priorities and processes.
D) Small sizes of many focused factories make it difficult to compete on the basis of shorter lead times.

Question 14

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

A) A standardized- services process is characterized by low capital intensity.
B) Replacement of general- purpose production equipment with highly specialized process equipment tends to reduce a company's capital intensity.
C) A standardized- services process has high customer involvement.
D) Customized- services processes tend to have high customer involvement.

Question 15

A job process would be preferred when

A) workforce and equipment are specialized.
B) customization is high and volume is low.
C) customization is low and volume is high.
D) products are made to stock type.

Question 16

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) whether or not the customer has to be present fora service to be provided.
C) the extent to which preferences for customized features must be determined.
D) all the factors listed above.

Question 17

Which of the following statements about customer involvement is best?

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

Question 18

Which one of the statements is TRUE about process re- engineering?

A) it has to do with re- wiring.
B) it is about garbage collection.
C) it is about reinvention.
D) it is about processes.

Question 19

Which one of the following statements about swim lane flowchart is TRUE?

A) it shows the flow diagrams of business.
B) it depicts the order placement and acceptance process at a firm.
C) it exposes the bottlenecks of design process.
D) it illustrates procedures for rejecting bad products.

Question 20

Which one of the following is an example of FORWARD integration?

A) an automobile company opening a plant to manufacture spark plugs
B) a personal computer manufacturer deciding to produce its own keyboards
C) a local bank opening branch offices in neighboring states
D) a personal computer manufacturer opening retail computer sales stores

Question 21

Which one of the following elements of re- engineering is TRUE?

A) trial- and- error
B) procedures
C) process analysis
D) strong steps

Question 22

Which of the following is an example of BACKWARD integration for an automobile manufacturer?

A) acquisition of a sheet metal company that is a major supplier to the automobile industry
B) creation of a marketing plan to offer a factory rebate upon the purchase of a new car
C) installation of robotic welding equipment on the factory floor
D) opening new company- owned car dealerships

Question 23

Which one of the following processes is more likely to have the greatest capital intensity?

A) a process with more of its products or services in the early stage of their life cycles
B) a process using customization as its competitive priority
C) a process with a flexible flows
D) a process with high production volumes

Question 24

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 resource flexibility
B) more capital intensity
C) less outsourcing
D) less customer involvement

Question 25

Which one of the following is an example of BACKWARD integration?

A) an airline company purchasing a retail clothing store
B) a personal computer manufacturer opening retail computer sales stores
C) a local bank opening branch offices in neighboring states
D) an automobile company opening a plant to manufacture spark plugs

Question 26

A job process requires

A) same sequence of processing steps for each job.
B) perfectly predictable customer demands.
C) a line flow strategy.
D) organizing the resources around the process.

Question 27

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

A) Economies of scope mean that a process should be devoted to a single product or service to achieve high volumes.
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) When customization must be high, equipment should be general purpose and employees need to perform a broader range of duties.

Question 28

Which of the following is sometimes called mass production?

A) continuous
B) project
C) line
D) batch

Question 29

Which of the following statements is LEAST likely to be associated with a high volume production?

A) high levels of customer involvement
B) less resource flexibility
C) a continuous or line process
D) high capital- intensity and automation

Question 30

One method of gaining focus is to

A) remodel stores to create the effect of many small boutiques under one roof.
B) hire more specialists and supervisors to control the operations.
C) build large enough factories to produce all products and services the company offers.
D) reorganize existing facilities to the plant- within- plant approach.

Question 31

Which one of the following statements about reengineering is TRUE?

A) It is not appropriate for all organizations and all processes.
B) It only requires improving cross- functional processes.
C) It can be done easily for any process.
D) It does not require much time or resources to implement.

Question 32

Which statement on reengineering and process improvement is best?

A) Only reengineering focuses on business processes.
B) Process improvement focuses only on critical or core processes, such as order fulfillment.
C) Reengineering starts with a "clean slate" whereas process improvement looks for ways to incrementally improve.
D) Only process improvement programs make use of cross- functional teams.

Question 33

Which one of the following statements about relationships between the five major process decisions is best?

A) Increasing volume opens the door for less capital intensity and more outsourcing.
B) Resource flexibility usually is higher when capital intensity is higher.
C) Customer involvement usually is higher when capital intensity is higher.
D) A manufacturing plant that is capital intensive tends to have more opportunity for vertical integration.

Question 34

Five dimensions must be considered in making decisions on process. Which one of the following correctly identifies all five major process decisions?

A) capital intensity, resource flexibility, vertical integration, customer involvement, and process choice
B) capital intensity, resource flexibility, facility location, vertical integration, and process choice
C) product or service life cycle, capital intensity, vertical integration, process choice, and customer involvement
D) capital intensity, process choice, inventory placement, resource flexibility, and customer involvement

Question 35

Which one of the following options is NOT a characteristic of project process?

A) a low degree of job customization
B) the release of substantial resources once a project is completed
C) the large scope of each project
D) a high degree of job customization

Question 36

Which one of the following statements concerning process reengineering is NOT true?

A) Reengineering efforts should focus on functional departments.
B) Reengineering is the fundamental rethinking and radical design of business processes.
C) Information technology is a major enabler of reengineering.
D) Reengineering requires a "clean slate" philosophy.

Question 37

As it relates to process management, the concept of a flexible work force is defined as

A) workers who are willing to work large amounts of overtime when necessary.
B) workers who are capable of performing many different tasks.
C) a labor force that often changes in size because of hirings and firings.
D) a labor force with a high turnover rate.

Question 38

"The systematic study of activities and flows of each process" is a definition of

A) job design.
B) product analysis.
C) capital budgeting.
D) process improvement.

Question 39

Which one of the following is NOT a characteristic of a line process?

A) volumes are high
B) lies between the batch and continous processes on the continuum
C) products or services are standardized
D) high degree of customization

Question 40

The five categories of activities (operation, transportation, inspection, delay, and storage) are used in which of the following methods of process analysis?

A) process chart
B) capital budgeting
C) flow diagram
D) multiple activity chart

Question 41

A policy that involves holding items in inventory for immediate delivery, thereby minimizing customer delivery times is called _______ .

Question 42

______ refers to the fundamental rethinking and radical redesign of processes to achieve dramatic performance improvements.

Question 43

List and briefly define four elements of process reengineering.

Question 44

______ means that the firm acquires more channels of distribution, such as distribution centers and retail stores.

Question 45

______ is the ease with which employees and equipment can handle a wide variety of products, output levels, duties, and functions.

Question 46

A policy for producing a wide variety of goods or services from relatively few subassemblies and components after customer orders are received is called______ .

Question 47

______ represents movement upstream toward the source of raw materials and parts.

Question 48

List and briefly define five major process decisions.

Question 49

What is the difference between a flow diagram and process chart?

Question 50

How can flow diagrams and process charts be used to study and improve operations? Include descriptions of these two tools, the types of questions that can be addressed with them, and the extent to which teams can be used. Be as complete as time permits.

Question 51

A(n)______ process tends to be used when many of the five factors of customer involvement are at a moderate level, or perhaps high on some, and low on others.

Question 52

Economies of ______ reflect the ability to produce multiple products more cheaply in combination than separately.

Question 53

What is the meaning of process reengineering and how can it be applied to a major process with which you are familiar? Be as complete as time permits.

Question 54

______ is the systematic study of the activities and flows of each process to improve its performance.

Question 55

______ determines whether resources are organized around products or processes.

Question 56

A(n) ______ is a table that lists and categorizes the steps in the process.

Question 57

______ trace the flow through a process graphically.

Question 58

A _______ is a group of two or more dissimilar workstations located close to each other that process a limited number of parts or models with similar process requirements.

Question 59

List and briefly define five basic process types.

Question 60

______ reflects the ways in which customers become part of the process and the extent of their participation.

Question 61

Vertical integration is the degree to which a firm's own production system or service facility handles the entire supply chain.

Question 62

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

Question 63

Processes are found in all functions of an organization.

Question 64

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

Question 65

When a service is delivered to the customer, client, or patient by appointment, decisions involving the location become part of process design.

Question 66

Backward integration means that the firm acquires more channels of distribution.

Question 67

A firm's supply chain is sometimes called the value chain.

Question 68

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

Question 69

The advances in information technology have led to more vertical integration.

Question 70

More vertical integration means more outsourcing.

Question 71

Firms that make products or provide services to customer specifications in low volumes tend to use the ______ policy.

Question 72

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

Question 73

A(n)______ process has high customer involvement, with the process being directly visible to the internal or external customer.

Question 74

______ are different operations within a facility with individualized competitive priorities, processes, and workforces under the same roof.

Question 75

______ is the degree to which a firm's own production system or service facility handles the entire supply chain.

Question 76

Flow diagrams are effective for documenting and evaluating processes.

Question 77

Service factories place greater emphasis on cost efficiency than professional services.

Question 78

In services, productivity improves as processes involve shorter service encounters and lower levels of customer interaction.

Question 79

A job shop process has a relatively high level of customization.

Question 80

______ is the selection of the inputs, operations, work flows, and methods that transform inputs into outputs.