Operations Management Study Set 1

Business

Quiz 6 :

Processes and Technology

Quiz 6 :

Processes and Technology

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Discuss outsourcing decision factors, provide examples of process plans, and use break-even analysis for process selection.
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Important issues in process design include types of processes, process planning, analysis and innovation, and technology decisions. Process planning determines how a product will be produced or a service provided. It decides which components will be made in-house and which will be purchased from a supplier, selects processes, and develops and documents the specifications for manufacture and delivery. The type of production process selected depends primarily on demand volume and degree of product standardization. Projects are produced one at a time to customer order. Batch production is used to process a variety of low- volume jobs. Mass production produces large volumes of a standard product for a mass market. Continuous production is used for very high-volume commodity products.
Several quantitative techniques are available for selecting a process. One that bases its decision on the cost trade-offs associated with demand volume is break-even analysis. The components of break-even analysis are volume (the level of production), cost (both fixed and variable), revenue (the price at which an item is sold), and profit (the difference between total revenue and total cost).

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A process is a group of unrelated tasks with specific inputs and outputs.
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False

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Outsourcing occurs when a company cannot or will not make all the parts that go into a product.
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True

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Explain several tools for process analysis, including flowcharts and process maps.
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Customers are rarely involved in a project that takes an extended period of time to complete.
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Producing a high volume of a single product is a characteristic of batch production.
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Companies that control the production of virtually all of the parts that go into a product are said to be horizontally integrated.
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Discuss the steps required to redesign a process to achieve breakthrough improvements.
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Planning, analyzing, and improving processes is the purpose of operations management.
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The organization's overall approach for producing goods and providing services is its process strategy.
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One-of-a-kind production of a product based on a customer's unique specifications is called a project.
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Subcontracting is rarely a source of human resources for a project.
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Process design specifies what tasks need to be done and how they are to be coordinated among functions, people, and organizations.
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List recent technological advances in manufacturing systems and explain factors often overlooked in the financial analysis of technology decisions.
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Process strategy defines what tasks need to be done and how they are to be coordinated among functions, people, and organizations.
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Process planning determines how a manufactured good is produced or a service is provided.
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Supplier speed is rarely an important consideration in outsourcing decisions.
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A firm's process strategy defines the extent of customer involvement in providing a service.
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Supplier reliability is often an important consideration in outsourcing decisions.
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Companies that control the production of virtually all of the parts that go into a product are said to be vertically integrated.
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