Deck 3: Process Configuration

Question 1

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

Answer 1

False

Question 2

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

Answer 2

True

Question 3

Processes are found in all functions of an organization.

Answer 3

True

Question 4

Volume is one factor that impacts the selection of the process type.

Question 5

Construction of a new shopping mall would be an example of a project process.

Question 6

The degree of customization is one factor that impacts the selection of process type.

Question 7

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

Question 8

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

Question 9

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

Question 10

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

Question 11

Resources used in a project typically are released for further use after a project is completed.

Question 12

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

Question 13

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

Question 14

A project process has the highest level of customization of the five process types.

Question 15

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

Question 16

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

Question 17

Batch processes typically uses a line flow through the operations.

Question 18

A back-office process has high customer involvement,and takes place out of sight of the customer.

Question 19

Processes are found in all organizations.

Question 20

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

Question 21

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

Question 22

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

Question 23

Project processes generally have higher volumes than batch processes.

Question 24

The decision by consumer product manufacturing companies such as Nike and Sony to own and operate retail outlets is an example of forward integration.

Question 25

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

Question 26

A business that competes on customization frequently allows customers to develop their own product specifications.

Question 27

In a line process variety is possible by careful control of the addition of standard options to the main product or service.

Question 28

More vertical integration means more outsourcing.

Question 29

Generally,doing the work in-house means better quality.

Question 30

Resource flexibility helps to absorb the feast-or-famine workloads in individual operations that are caused by low-volume,jumbled routings,and fluid scheduling.

Question 31

The decision of a major grocery chain to invest in a poultry processing plant to supply its stores is an example of forward integration.

Question 32

Capital intensity is the mix of equipment and human skills in the process.

Question 33

Service providers with a line process follow a standardized-services strategy.

Question 34

Job processes support higher production volumes than line processes.

Question 35

Flexible automation produces one type of part or product in a fixed sequence of simple operations.

Question 36

In a vertical corporation,competitors enter into short-term partnerships to respond to market opportunities.

Question 37

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

Question 38

Continuous processes have a high level of customization.

Question 39

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

Question 40

Petroleum refineries typically use continuous processes.

Question 41

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

Question 42

For professional services the work tends to be standardized and routine.

Question 43

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) The variable underlying all five major process decisions is volume.
D) A company's operations strategy is the primary output of its major process decisions.

Question 44

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

Question 45

Information technology is rarely used with reengineering.

Question 46

Job rotation involves the vertical expansion of job duties.

Question 47

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

Question 48

Flow diagrams are effective for documenting and evaluating processes.

Question 49

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

Question 50

Process re-engineering involves incremental improvements to the design of processes.

Question 51

Which of the following is sometimes called mass production?

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

Question 52

A job process would be preferred when

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

Question 53

A job process requires

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

Question 54

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

Question 55

The emphasis of reengineering is on the functional departments.

Question 56

A job with a high degree of specialization generally means great efficiency.

Question 57

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

Question 58

So called "back office" processes are more likely to be associated with professional service processes with high levels of customer interaction than service factories.

Question 59

Process charts trace the flow of information,customers,employees,equipment,or materials through a process.

Question 60

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

Question 61

Which of the following statements concerning resource flexibility is best?

A) Flexible equipment is useful to companies with low production volumes and high customization.
B) Investment in general-purpose equipment is warranted if the firm expects to sell more than the break-even amount.
C) Manufacturing efficiency increases with general-purpose equipment.
D) Resource flexibility is crucial for line-flow processing.

Question 62

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.

Question 63

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

Question 64

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

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

Question 65

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

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

Question 66

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

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

Question 67

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.

Question 68

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

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

Question 69

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

Question 70

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

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

Question 71

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

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

Question 72

Which of the following statements regarding resource flexibility is best?

A) Training is a small part of worker flexibility.
B) Specialization of employees is consistent with worker flexibility.
C) Worker flexibility is not a priority if the process is subject to hourly or seasonal peaks in demand.
D) The use of registered nurses is preferred in some hospitals because they can perform all nursing tasks.

Question 73

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 high production volumes
D) a process with a flexible flows

Question 74

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

Question 75

One method of gaining focus is to

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

Question 76

Which one of the following statements about fixed automation is TRUE?

A) Operations managers consider fixed automation when demand volumes are high, product designs are unstable, and product life cycles are short.
B) The primary drawbacks of fixed automation are its large initial investment cost and its relative inflexibility.
C) It is an automatic process that can be reprogrammed to handle various products.
D) The equipment performs complicated operations in a flexible sequence.

Question 77

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

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

Question 78

Which of the following is an example of FORWARD integration?

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

Question 79

Which one of the following statements about fixed automation is NOT usually true?

A) Chemical processing plants and oil refineries use fixed automation.
B) The equipment performs simple operations in a fixed sequence.
C) It is an automatic process that can be reprogrammed to handle various products.
D) It is designed around a particular product or service and can yield rock-bottom variable cost per unit.

Question 80

MORE fixed automation typically means

A) decreased labor productivity.
B) longer cycle time.
C) higher demand volumes.
D) lower sales.