Managing Operations Across the Supply Chain 3rd Edition By Morgan Swink – Test Bank

 

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Sample Test

1.   Process thinking causes managers to address critical process elements, including:

 

1.   If you don?t like the outcome, focus on the people.

 

1.   Processes are guidelines to thinking about to best staff activities.

 

1.   Processes drive measurement.

 

1.   If you don?t like the outcome, change the process.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-01 Understand the importance of processes and process thinking to operations and supply chain management.

 

Level of Difficulty: 1 Easy

 

Topic: Processes and Process Thinking

 

2.   Which of the following is NOT a basic activity type in processes?

 

1.   Delay

 

1.   Operation

 

1.   Reporting

 

1.   Storage

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-02 Define the various components that make up processes; including types of inputs and outputs.

 

Level of Difficulty: 1 Easy

 

Topic: Anatomy of a Process

 

3.   You walk into a hair stylist shop. All stylists are busy and you sit in the waiting area. You are in which of the following process activities?

 

1.   Operation

 

1.   Delay

 

1.   Storage

 

1.   You are not in a process activity.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Apply

 

Gradable: automatic

 

Learning Objective: 03-02 Define the various components that make up processes; including types of inputs and outputs.

 

Level of Difficulty: 2 Medium

 

Topic: Anatomy of a Process

 

4.   Most processes involve two basic types of flows:

 

1.   Information flows and physical flows.

 

1.   Product flows and decision flows.

 

1.   Information flows and operator flows.

 

1.   Physical flows and security flows.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-02 Define the various components that make up processes; including types of inputs and outputs.

 

Level of Difficulty: 1 Easy

 

Topic: Anatomy of a Process

 

5.   A manager is currently unhappy with the capabilities of a particular process and wants to improve its capabilities. To accomplish this, the manager needs to focus on the process:

 

1.   Inputs, outputs, and flows.

 

1.   Activities.

 

1.   Management metrics.

 

1.   Structure.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Apply

 

Gradable: automatic

 

Learning Objective: 03-02 Define the various components that make up processes; including types of inputs and outputs.

 

Level of Difficulty: 2 Medium

 

Topic: Anatomy of a Process

 

6.   Joe Jones, plant manager at Waco Industries, told a friend that if it was necessary, his plant could produce 1,000 items a day if all conditions were just right. Joe is describing his plant’s:

 

1.   Effective capacity.

 

1.   Yield rate.

 

1.   Utilization.

 

1.   Maximum capacity.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Apply

 

Gradable: automatic

 

Learning Objective: 03-03 Distinguish between operational; tactical; and strategic capacity planning.

 

Level of Difficulty: 2 Medium

 

Topic: Process Capacity and Utilization

 

7.   Adam Smith described his company’s process as follows: “Under ideal conditions we can produce 10,000 units a day. However, our normal production is 6,000 units a day. Today, we actually produced 8,000 units.” Which of the following is true?

 

1.   Utilization is 60 percent of maximum capacity.

 

1.   Yield is 133 percent of effective capacity.

 

1.   Utilization was 133 percent of effective capacity.

 

1.   All of these are true.

 

AACSB: Analytical Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Analyze

 

Gradable: automatic

 

Learning Objective: 03-03 Distinguish between operational; tactical; and strategic capacity planning.

 

Level of Difficulty: 2 Medium

 

8.   The following sequence shows four operations for a computer chip assembly process and the effective capacity of each. Which step is the bottleneck?

 

Step 1: 500 chips/hour Step 2: 250 chips/hour Step 3: 200 chips/hour Step 4: 550 chips/hour

 

1.   Step 1

 

1.   Step 2

 

1.   Step 3

 

1.   Step 4

 

AACSB: Analytical Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Understand

 

Gradable: automatic

 

Learning Objective: 03-04 Estimate the capacity and utilization of a process.

 

Level of Difficulty: 1 Easy

 

Topic: Principles of Process Performance: The Theory of Constraints

 

9.   The following sequence shows four operations for a computer chip assembly process and the effective capacity of each.

 

 

Step 1: 500 chips/hour Step 2: 250 chips/hour Step 3: 200 chips/hour Step 4: 550 chips/hour

 

Suppose the utilization is 70 percent of effective capacity. What is the actual output of the process?

 

 

1.   140 chips/hour

 

1.   350 chips/hour

 

1.   175 chips/hour

 

1.   200 chips/hour

 

AACSB: Analytical Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Analyze

 

Gradable: automatic

 

Learning Objective: 03-04 Estimate the capacity and utilization of a process.

 

Level of Difficulty: 2 Medium

 

Topic: Principles of Process Performance: The Theory of Constraints

 

10.                A bottleneck activity in a process is generally the activity with:

 

1.   The smallest number of resources devoted to it.

 

1.   The least capacity.

 

1.   No delays in front of it.

 

1.   The highest cost.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Understand

 

Gradable: automatic

 

Learning Objective: 03-04 Estimate the capacity and utilization of a process.

 

Level of Difficulty: 1 Easy

 

Topic: Principles of Process Performance: The Theory of Constraints

 

11.                Little’s Law suggests that the key to increased throughput is:

 

1.   Shorter flow times.

 

1.   Fewer defects.

 

1.   Eliminating waste.

 

1.   Increased inspection.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Understand

 

Gradable: automatic

 

Learning Objective: 03-04 Estimate the capacity and utilization of a process.

 

Level of Difficulty: 2 Medium

 

Topic: Principles of Process Performance: The Theory of Constraints

 

12.                A short-term, highly focused effort for improving a process is known as a:

 

1.   Jidoka Event.

 

1.   Kaizen Event.

 

1.   Chaebol Event.

 

1.   Poka-yoke Event.

 

1.   Enchilada Event.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-06 Describe process improvement methodologies such as business process reengineering and Kaizen Events.

 

Level of Difficulty: 1 Easy

 

Topic: Principles of Process Performance: The Theory of Constraints

 

13.                Suppose you learn that a process has a very long waiting time. Which of the following would decrease the waiting time?

 

1.   Decrease utilization.

 

1.   Increase the coefficient of variation of job arrival times.

 

1.   Increase the coefficient of variation of job processing times.

 

1.   None of these would decrease waiting time.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Evaluate

 

Gradable: automatic

 

Learning Objective: 03-05 Explain the impacts of bottlenecks; variance; and other factors on process performance.

 

Level of Difficulty: 3 Hard

 

Topic: Principles of Process Performance: The Theory of Constraints

 

14.                One implication of increased utilization in a process is that:

 

1.   Process cost typically will go up.

 

1.   Waiting time typically will go up.

 

1.   Variance typically will be reduced.

 

1.   All of these.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Understand

 

Gradable: automatic

 

Learning Objective: 03-05 Explain the impacts of bottlenecks; variance; and other factors on process performance.

 

Level of Difficulty: 3 Hard

 

Topic: Principles of Process Performance: The Theory of Constraints

 

15.                If a company can eliminate all sources of variance in a process:

 

1.   It will be able to operate at maximum capacity at all times.

 

1.   There will be no constraints in the process.

 

1.   Continuous improvement will not be necessary.

 

1.   None of these are true.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Understand

 

Gradable: automatic

 

Learning Objective: 03-05 Explain the impacts of bottlenecks; variance; and other factors on process performance.

 

Level of Difficulty: 1 Easy

 

Topic: Principles of Process Performance: The Theory of Constraints

 

16.                An example of a short-term capacity decision is:

 

1.   Adding specialized labor.

 

1.   Installing new equipment.

 

1.   Adding new facilities.

 

1.   Adding low-skilled labor.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-03 Distinguish between operational; tactical; and strategic capacity planning.

 

Level of Difficulty: 1 Easy

 

Topic: Process Capacity and Utilization

 

17.                Which of the following statements about economies of scale is NOT true?

 

1.   One reason economies of scale occur is because fixed costs can be spread over more units of production as output increases.

 

1.   One reason economies of scale occur is because employees become more efficient as volume increases.

 

1.   Economies of scale refers to the fact that as volume increases, total cost of production decreases.

 

1.   Economies of scale may not exist at all levels of production.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-03 Distinguish between operational; tactical; and strategic capacity planning.

 

Level of Difficulty: 1 Easy

 

Topic: Process Capacity and Utilization

 

18.                Which of the following forms of capacity can only be determined AFTER the completion of activities?

 

1.   Demonstrated capacity

 

1.   Maximum capacity

 

1.   Design capacity

 

1.   Effective capacity

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-03 Distinguish between operational; tactical; and strategic capacity planning.

 

Level of Difficulty: 1 Easy

 

Topic: Process Capacity and Utilization

 

19.                Government regulations belong to which of the following elements of a process?

 

1.   Activities

 

1.   Inputs/outputs/feedback

 

1.   Process structure

 

1.   Management policies

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-02 Define the various components that make up processes; including types of inputs and outputs.

 

Level of Difficulty: 1 Easy

 

Topic: Anatomy of a Process

 

20.                Under Juran’s Law, whenever a problem occurs, what percentage of the time is the problem the result of a system/process error?

 

1.   15 percent

 

1.   50 percent

 

1.   85 percent

 

1.   100 percent

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-01 Understand the importance of processes and process thinking to operations and supply chain management.

 

Level of Difficulty: 1 Easy

 

Topic: Processes and Process Thinking

 

21.                Make/buy/subcontract is typically considered at what time horizon when doing capacity planning?

 

1.   Short-term

 

1.   Medium-term

 

1.   Long-term

 

1.   It is not part of the capacity planning process.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-05 Explain the impacts of bottlenecks; variance; and other factors on process performance.

 

Level of Difficulty: 1 Easy

 

Topic: Process Capacity and Utilization

 

22.                Kaizen Events are most appropriate for which type of operations problem?

 

1.   Customer-based

 

1.   Metrics-based

 

1.   Process-based

 

1.   Product-based

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-06 Describe process improvement methodologies such as business process reengineering and Kaizen Events.

 

Level of Difficulty: 1 Easy

 

Topic: Principles of Process Performance: The Theory of Constraints

 

23.                Which of the following actions will NOT increase output?

 

1.   Increasing capacity through physical additions.

 

1.   Outsourcing.

 

1.   Managing the flow of work into the system.

 

1.   Changing the processes to eliminate unnecessary steps.

 

 

 

 

 

 

 

 

24.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-05 Explain the impacts of bottlenecks; variance; and other factors on process performance.

 

Level of Difficulty: 2 Medium

 

Topic: Process Capacity and Utilization

 

You are given the following information. Which of these statements can you support with this information?

 

 

 

 

 

 

 

 

 

 

 

1.   More capacity needs to be added in the short term to improve performance in the system.

 

1.   We have to look at the rate at which jobs are being input into the shop.

 

1.   Our workforce is not working hard enough.

 

1.   We need to further investigate whether the problem is in input or capacity.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-05 Explain the impacts of bottlenecks; variance; and other factors on process performance.

 

Level of Difficulty: 2 Medium

 

Topic: Process Capacity and Utilization

 

25.                Which process activity is due to other factors (e.g., insufficient operating capacity, lack of material, equipment breakdowns)?

 

1.   Delay

 

1.   Operation

 

1.   Storage

 

1.   Transportation

 

1.   Inspection

 

 

 

 

 

 

 

26.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-02 Define the various components that make up processes; including types of inputs and outputs.

 

Topic: Process Capacity and Utilization

 

Which of the following Operations Management “gurus” was responsible for the notion of process thinking?

 

 

1.   Deming

2.   Crosby

3.   Juran

4.   Drucker

 

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-01 Understand the importance of processes and process thinking to operations and supply chain management.

 

Level of Difficulty: 1 Easy

 

Topic: Processes and Process Thinking

 

 

27.                Which of the following statements best differentiates a delay from storage?

 

 

 

1.   There is no difference – they both refer to the same concept.

2.   Delays are planned activities; storages are not.

 

1.   Delays are due to other factors; storages are not.

 

1.   Delays require control; storages doe not.

 

 

 

 

 

 

 

 

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-02 Define the various components that make up processes, including types of inputs and outputs.

 

Level of Difficulty: 1 Easy

 

Topic: Processes and Process Thinking

 

28.                Which of the following elements of a process most directly impacts or affects process capabilities?

 

 

 

1.   Activities

 

1.   Inputs/Outputs/Feedback

 

1.   Process Structure

 

1.   Management Policies.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-02 Define the various components that make up processes, including types of inputs and outputs.

 

Level of Difficulty: 1 Easy

 

Topic: Processes and Process Thinking

 

29.                Space on the shop floor, bins, carts, racks are most frequently associated with which of the following process activities?

 

1.   Delays

 

1.   Transportation

 

1.   Inspections

 

1.   Operations.

 

 

 

 

 

 

 

 

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Remember

 

Gradable: automatic

 

Learning Objective: 03-02 Define the various components that make up processes, including types of inputs and outputs.

 

Level of Difficulty: 1 Easy

 

Topic: Processes and Process Thinking

 

30.                Which of the following two effects is directly a result of bottlenecks?

 

 

1.   Increase in costs and increase in defects.

2.   Increase in output and increase in lead-times.

3.   Decrease in inspections and increase in costs.

4.   Decrease in output and increase in lead-times.

 

AACSB: Reflective Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Understand

 

Gradable: automatic

 

Learning Objective: 03-05 Explain the impacts of bottlenecks; variance; and other factors on process performance.

 

Level of Difficulty: 3 Easy

 

Topic: Principles of Process Performance: The Theory of Constraints

 

Category                                                                                                            #

 

AACSB: Reflective Thinking

 

AACSB: Analytical Thinking

 

Accessibility: Keyboard Navigation

 

Blooms: Analyze

 

Blooms: Apply

 

Blooms: Evaluate

 

Blooms: Remember

 

Blooms: Understand

 

Gradable: automatic

 

Learning Objective: 03-01 Understand the importance of processes and process thinking to operations and supply chain management.

 

Learning Objective: 03-02 Define the various components that make up processes, including types of inputs and outputs.

 

Learning Objective: 03-02 Define the various components that make up processes; including types of inputs and outputs.

 

Learning Objective: 03-03 Distinguish between operational; tactical; and strategic capacity planning.

 

Learning Objective: 03-04 Estimate the capacity and utilization of a process.

 

Learning Objective: 03-05 Explain the impacts of bottlenecks; variance; and other factors on process performance.

 

Learning Objective: 03-06 Describe process improvement methodologies such as business process reengineering and Kaizen Events.

 

Level of Difficulty: 1 Easy

 

Level of Difficulty: 2 Medium

 

Level of Difficulty: 3 Easy

 

Level of Difficulty: 3 Hard

 

Topic: Anatomy of a Process

 

Topic: Principles of Process Performance: The Theory of Constraints

 

Topic: Process Capacity and Utilization

 

Topic: Processes and Process Thinking

 

1.   Which of the following process structures can produce the widest variety of products?

 

1.   Job shop

 

1.   Repetitive process

 

1.   Continuous flow

 

1.   Batch operation

 

Job shop processes produce the widest variety of the listed process types.

 

AACSB: Reflective Thinking Blooms: Remember Difficulty: 1 Easy

 

Learning Objective: 05-01 Compare and contrast the seven process structures: project; job shop; batch; repetitive process; continuous process; mass customization; and cellular manufacturing.

Topic: Process Structures

 

2.   Which process type is not correctly matched with its descriptive characteristic?

 

1.   Project-high complexity

 

1.   Repetitive process-customized products

 

1.   Job shop-high flexibility

 

1.   Continuous flow-low-skilled workers

 

Repetitive processes typically produce standardized products. The other choices are correct (see Table 5-1).

 

AACSB: Reflective Thinking Blooms: Remember Difficulty: 1 Easy

 

Learning Objective: 05-01 Compare and contrast the seven process structures: project; job shop; batch; repetitive process; continuous process; mass customization; and cellular manufacturing.

Topic: Process Structures

 

3.   Which of the following types of businesses would most likely use a batch process structure?

 

1.   Company that builds cruise ships.

 

1.   An automotive assembler such as Ford Motor Co.

 

1.   A glass beverage bottle manufacturer.

 

1.   A company that produces automobile seats.

 

Automobile seats have moderate volumes and varieties considering such factors as differences in upholstery and thus would use a batch process (see Table 5-1).

 

AACSB: Reflective Thinking

Blooms: Apply

Difficulty: 2 Medium

 

Learning Objective: 05-01 Compare and contrast the seven process structures: project; job shop; batch; repetitive process; continuous process; mass customization; and cellular manufacturing.

Topic: Process Structures

 

4.   Wanda Corp. currently uses a job shop process. It wants to maintain the advantages of this but increase efficiency. Wanda should investigate:

 

1.   Cellular manufacturing.

 

1.   Job shop processes.

 

1.   Mass customization.

 

1.   Project process.

 

Cellular manufacturing attempts to maintain flexibility of job shops but at lower costs.

 

AACSB: Reflective Thinking Blooms: Apply Difficulty: 1 Easy

 

Learning Objective: 05-01 Compare and contrast the seven process structures: project; job shop; batch; repetitive process; continuous process; mass customization; and cellular manufacturing. Topic: Process Structures

 

5.   Zanda Corp. wants to have a process structure that has cost advantages similar to continuous or repetitive processes, but wants to produce greater variety than those processes normally allow. Zanda should consider:

 

1.   Cellular manufacturing.

 

1.   Job shop processes.

 

1.   Mass customization.

 

1.   Project process.

 

Mass customization attempts to maintain cost advantages similar to continuous or repetitive processes, but allows a firm to produce greater variety than those processes normally allow.

 

AACSB: Reflective Thinking

Blooms: Apply

Difficulty: 2 Medium

 

Learning Objective: 05-01 Compare and contrast the seven process structures: project; job shop; batch; repetitive process; continuous process; mass customization; and cellular manufacturing.

Topic: Process Structures

 

6.   Jones Company has a make-to-order orientation. It most likely does NOT use:

 

1.   Continuous process structure.

 

1.   Cellular manufacturing process structure.

 

1.   Job shop process structure.

 

1.   Batch process structure.

 

 

AACSB: Reflective Thinking Blooms: Understand Difficulty: 1 Easy

 

Learning Objective: 05-01 Compare and contrast the seven process structures: project; job shop; batch; repetitive process; continuous process; mass customization; and cellular manufacturing.

Topic: Process Structures

 

7.   Companies with a make-to-stock orientation are most likely to use which of the following process structures?

 

1.   Mass customization

 

1.   Job shop

 

1.   Repetitive process

 

1.   They are likely to use any one of these process structures.

 

Of the alternatives, only repetitive process applies to make-to-stock. The others are make or assemble to order.

 

AACSB: Reflective Thinking Blooms: Remember Difficulty: 1 Easy

 

Learning Objective: 05-01 Compare and contrast the seven process structures: project; job shop; batch; repetitive process; continuous process; mass customization; and cellular manufacturing.

Topic: Process Structures

 

8.   For which market orientation is accurately forecasting the amount of finished goods needed likely to be the most important for a firm’s financial performance?

 

1.   Engineer to order

 

1.   Make to order

 

1.   Assemble to order

 

1.   Make to stock

 

In a make -to-stock orientation, products are made in advance of actual customer orders and held in inventory. Thus, forecasting is critical to both costs and sales. Firms using the other orientations do not produce finished goods until after a customer order is received.

 

AACSB: Reflective Thinking Blooms: Understand Difficulty: 3 Hard

 

Learning Objective: 05-01 Compare and contrast the seven process structures: project; job shop; batch; repetitive process; continuous process; mass customization; and cellular manufacturing.

Topic: Process Structures

 

9.   Which of the following products is most likely to use an assemble-to-order market orientation?

 

1.   An upholstered sofa

 

1.   A mobile phone

 

1.   Shampoo

 

1.   A race car

 

For an upholstered sofa using an assemble-to-order orientation, the premade frames are held in inventory but the fabric is not added until a customer order is placed. Sofas can also be make to stock.

 

AACSB: Reflective Thinking

Blooms: Apply

Difficulty: 2 Medium

 

Learning Objective: 05-01 Compare and contrast the seven process structures: project; job shop; batch; repetitive process; continuous process; mass customization; and cellular manufacturing.

Topic: Process Structures

 

10.                Choose the service type that is correctly matched with one of its key characteristics.

 

1.   Service factory-facilities and equipment represent a large proportion of total costs.

 

1.   Service shop-there is a low degree of customer interaction.

 

1.   Mass service-transactions are very varied from customer to customer.

 

1.   Professional service-transactions tend to be fairly standardized.

 

A service factory requires high capital investment. The other descriptions are opposite of the reality. See Figure 5-2.

 

AACSB: Reflective Thinking Blooms: Remember Difficulty: 1 Easy

 

Learning Objective: 05-02 Compare and contrast the goals and challenges associated with a service factory; a mass service; a service shop; and professional services.

Topic: Unique Aspects of Service Processes

 

11.                Which of the following is NOT considered in the service process matrix?

 

1.   Customization

 

1.   Volume

 

1.   Customer interaction

 

1.   Labor intensity

 

The degree of customization/customer interaction and labor/capital intensity form the axes of the service process matrix as shown in Figure 5-2.

 

AACSB: Reflective Thinking Blooms: Remember Difficulty: 1 Easy

 

Learning Objective: 05-02 Compare and contrast the goals and challenges associated with a service factory; a mass service; a service shop; and professional services.

Topic: Unique Aspects of Service Processes

 

12.                Using technology, such as self-checkouts in grocery stores, to enable customers to complete the service delivery and transaction themselves is most commonly used for:

 

1.   Service factories.

 

1.   Service shops.

 

1.   Mass services.

 

1.   Professional services.

 

Because there is moderate to low customization/customer interaction, meaning that large groups of customers have similar requirements, mass services technology can be used to create “self-services.” This helps to reduce labor costs and can increase service availability for customers.

 

AACSB: Reflective Thinking

Blooms: Apply

Difficulty: 2 Medium

 

Learning Objective: 05-02 Compare and contrast the goals and challenges associated with a service factory; a mass service; a service shop; and professional services.

Topic: Unique Aspects of Service Processes

 

13.                All of the following are potential benefits of decoupling front and back offices in service processes EXCEPT:

 

1.   Standardization across multiple locations.

 

1.   Economies of scale.

 

1.   Use of remotely located back office employees.

 

1.   Easier customization of services.

 

Decoupling allows for back-office work to be done at a remote centralized location, allowing for standardization and economies of scale. Decoupling may actually reduce the ability to customize services.

AACSB: Reflective Thinking Blooms: Understand Difficulty: 2 Medium

 

Learning Objective: 05-02 Compare and contrast the goals and challenges associated with a service factory; a mass service; a service shop; and professional services.

Topic: Unique Aspects of Service Processes

 

14.                An approach that analyzes the interface between customers and service processes is called:

 

1.   Service process matrix.

 

1.   Service blueprinting.

 

1.   Process mapping.

 

1.   Product/process matrix.

 

Service blueprinting is defined as an approach that analyzes the interface between customers and service processes. It is similar to but different from process mapping.

 

AACSB: Reflective Thinking Blooms: Remember Difficulty: 1 Easy

 

Learning Objective: 05-02 Compare and contrast the goals and challenges associated with a service factory; a mass service; a service shop; and professional services.

Topic: Unique Aspects of Service Processes

 

15.                If you were developing a service blueprint, how would you classify “delivery of gasoline to a service station”?

 

1.   Support processes

 

1.   Physical evidence

 

1.   Back-office/invisible contact employee actions

 

1.   Front-office/visible contact employee actions

 

Delivery of gasoline is essential for the service, but it is carried out by employees who do not have direct contact with customers, and it is generally not seen (or intended to be seen) by customers.

 

AACSB: Reflective Thinking

Blooms: Apply

Difficulty: 2 Medium

 

Learning Objective: 05-02 Compare and contrast the goals and challenges associated with a service factory; a mass service; a service shop; and professional services.

Topic: Unique Aspects of Service Processes

 

16.                Ensuring that all the right people, equipment, and materials arrive on time is especially challenging when using which layout?

 

1.   Fixed-position layout

 

1.   Functional layout

 

1.   Service factory layout

 

1.   Product layout

 

In a fixed-position layout, all of the necessary resources must come to the work site.

 

AACSB: Reflective Thinking Blooms: Remember Difficulty: 1 Easy

 

Learning Objective: 05-03 Describe how each of the operations layouts; fixed-position; functional; product; and cellular; is designed to meet the demands placed on it.

Topic: Operations Layout

 

17.                A common goal when designing a functional layout is to:

 

1.   Ensure materials arrive on schedule.

 

1.   Reduce the time and cost of moving people and materials between departments.

 

1.   Avoid downtime at any workstation.

 

1.   Balance the flow of materials through the process.

 

Because each product or customer takes a unique route through the process, the time and cost for movement can be very high.

 

AACSB: Reflective Thinking Blooms: Remember Difficulty: 2 Medium

 

Learning Objective: 05-03 Describe how each of the operations layouts; fixed-position; functional; product; and cellular; is designed to meet the demands placed on it.

Topic: Operations Layout

 

18.                Zanadu Corp. has dedicated equipment and workers in a regularly occurring sequence of activities. Zanadu has which type of operations layout?

 

1.   Fixed-position layout

 

1.   Functional layout

 

1.   Service factory layout

 

1.   Product layout

 

When resources are arranged in a regular sequence of activities, a product layout is being employed.

 

AACSB: Reflective Thinking

Blooms: Apply

Difficulty: 1 Easy

 

Learning Objective: 05-03 Describe how each of the operations layouts; fixed-position; functional; product; and cellular; is designed to meet the demands placed on it.

Topic: Operations Layout

 

19.                John Jones, CEO of Joes Corp., is unhappy because each product his company makes takes a unique route through the facility, so processing times tend to be high. His company most likely has a:

 

1.   Fixed-position layout.

 

1.   Sequential action layout.

 

1.   Functional layout.

 

1.   Product layout.

 

Unique routes and high processing times are characteristics of functional layouts.

 

AACSB: Reflective Thinking

Blooms: Apply

Difficulty: 2 Medium

 

Learning Objective: 05-03 Describe how each of the operations layouts; fixed-position; functional; product; and cellular; is designed to meet the demands placed on it.

Topic: Operations Layout

 

20.                What is the primary objective of line balancing?

 

1.   To minimize the travel time between workstations

 

1.   To match output rates with actual demand

 

1.   To minimize materials handling costs

 

1.   To group similar activities together

 

Lines are balanced so that each workstation does not exceed the takt time, which is the time required at each station to produce exactly what the customer demands.

 

AACSB: Reflective Thinking

 

Blooms: Understand

 

Difficulty: 2 Medium

 

Learning Objective: 05-04 Analyze a product layout using line balancing.

 

Topic: Operations Layout

 

21.                A company needs to produce 400 units per day (the day is defined as 12 hours of production). There are three tasks to be completed, with a total task time for all three tasks of 6 minutes. The company should have:

 

1.   3 workstations.

 

1.   4 workstations.

 

1.   5 workstations.

 

1.   2 workstations.

 

(400 items × 6 minutes)/(12 hours × 60 minutes) = 3.33 (round up to 4)

 

AACSB: Analytic

 

Blooms: Analyze

 

Difficulty: 2 Medium

 

Learning Objective: 05-04 Analyze a product layout using line balancing.

 

Topic: Operations Layout

 

22.                A company needs to produce 1,000 units per day (the day is defined as 8 hours of production). There are six tasks to be completed, with a total task time of 12 minutes. The company should have:

 

1.   25 workstations.

 

1.   2 workstations.

 

1.   84 workstations.

 

1.   14 workstations.

 

(1,000 units × 12 minutes)/(8 hours × 60 minutes) = 25

 

AACSB: Analytic

 

Blooms: Analyze

 

Difficulty: 2 Medium

 

Learning Objective: 05-04 Analyze a product layout using line balancing.

 

Topic: Operations Layout

 

23.                A contemporary process layout in which product “families” with similar processing characteristics are identified and produced on “mini-assembly lines” is referred to as:

 

1.   Cellular layout.

 

1.   Fixed position layout.

 

1.   Flexible manufacturing systems.

 

1.   Mass customization.

 

A cellular layout arranges workstations to form work cells to produce parts that have similar processing characteristics.

 

AACSB: Reflective Thinking

 

Blooms: Remember

 

Difficulty: 1 Easy

 

Learning Objective: 05-04 Analyze a product layout using line balancing.

 

Topic: Operations Layout

 

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