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

Accepted Answer

Focused factories aim to streamline operations by concentrating on a limited set of tasks, which allows management to focus on optimizing those specific processes, improving efficiency and effectiveness.

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

Accepted Answer

Operation, inspection, and delay are all activities that can be shown on a process chart.

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

Accepted Answer

A swim lane flowchart is structured to illustrate which groups or functional areas have responsibility for specific sub-processes using lanes.

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.

Accepted Answer

Decreased amounts of automation would typically decrease capital intensity, as capital intensity refers to the amount of capital required in relation to labor. More automation usually means higher 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?

Accepted Answer

The question "Why is it being done and who is doing it?" is not relevant to open-ended evaluation because it focuses on specific individuals and their roles, rather than the broader context and purpose of the process.

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.

Accepted Answer

Economies of scope do not necessarily reflect low capital intensity and high resource flexibility; they are about cost advantages from producing a variety of products together.

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.

Accepted Answer

Forward integration involves a company moving closer to the end consumer in the supply chain. In this case, farmers forming a cooperative to sell directly to consumers is an example of forward integration.

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

Accepted Answer

Outsourcing typically results in less control over product quality, as the production is handled by an external party.

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.

Accepted Answer

The answer of Which one of the following statements concerning...

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

Accepted Answer

Low volume production often requires high resource flexibility to adapt to varying customer demands and smaller batch sizes.

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.

Accepted Answer

Analyzing and improving a bottleneck operation can significantly enhance the overall efficiency and throughput of a process, leading to economic benefits.

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.

Accepted Answer

The dotted line of visibility in flow diagrams typically separates customer-facing activities from those that are not visible to the customer, not subcontracted activities from in-house activities.

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.

Accepted Answer

Plants within plants allow for different operations within a facility to have their own competitive priorities and processes, aligning with the concept of gaining focus.

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.

Accepted Answer

Customized-services processes require tailoring to individual customer needs, which naturally involves higher customer interaction and 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.

Accepted Answer

A job process is preferred when customization is high and volume is low, as it allows for flexibility and tailored production to meet specific customer needs.

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.

Accepted Answer

Customer involvement in a process is influenced by cost-saving opportunities through self-service, the necessity of the customer's presence, and the need for customization based on customer preferences.

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.

Accepted Answer

In services that directly involve the customer, the customer often dictates the time and location of the service, as their involvement is crucial to the service delivery 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.

Accepted Answer

The answer of Which one of the statements is TRUE...

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.

Accepted Answer

The answer of Which one of the following statements about...

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

Accepted Answer

Forward integration involves a company expanding its operations into the next stages of its production process, such as distribution or retail. In this case, a personal computer manufacturer opening retail stores is an example of forward integration as it moves closer to the end consumer.

Quiz 4: Process Configuration

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

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

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

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

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?

Which statement about economies of scope is NOT true?

Which of the following is an example of FORWARD integration?

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

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

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

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

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

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

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

A job process would be preferred when

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

Which of the following statements about customer involvement is best?

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

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

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