Operations Management Ch. 03, Module 2

kenhum

org_man_q2.docx

Home >Business & Finance homework help >Operations Management homework help >Operations Management Ch. 03, Module 2

Question 1 (1 point)

Question 1 Unsaved

Job processes generally have higher volumes than batch processes.

Question 1 options:

	True
	False

Save

Question 2 (1 point)

A front office structure features high levels of customer contact where the service provider interacts directly with the internal or external customer.

Question 2 options:

	True
	False

Save

Question 3 (1 point)

A team consisting of members from each functional area affected by the process change is referred to as a(n):

Question 3 options:

	reengineering team.
	cross-functional team.
	process team.
	improvement team.

Save

Question 4 (1 point)

Which statement about economies of scope is not true?

Question 4 options:

	Economies of scope are often attained through programmable automation.
	Economies of scope bring together two competitive priorities-customization and low price.
	Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately.
	Economies of scope reflect low capital intensity and high resource flexibility.

Save

Question 5 (1 point)

Which of the following statements concerning resource flexibility is best?

Question 5 options:

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

Save

Question 6 (1 point)

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

Question 6 options:

	True
	False

Save

Question 7 (1 point)

Processes, by their nature, are found only in the operations function of an organization.

Question 7 options:

	True
	False

Save

Question 8 (1 point)

Petroleum refineries typically use continuous flow processes.

Question 8 options:

	True
	False

Save

Question 9 (1 point)

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

Question 9 options:

	True
	False

Save

Question 10 (1 point)

A back office operation most closely resembles a:

Question 10 options:

	continuous flow process.
	batch process.
	job process.
	line process.

Save

Question 11 (1 point)

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

Question 11 options:

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

Save

Question 12 (1 point)

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

Question 12 options:

	True
	False

Save

Question 13 (1 point)

Process decisions are strategic in nature.

Question 13 options:

	True
	False

Save

Question 14 (1 point)

Assemble-to-order strategy produces a wide variety of products from relatively few assemblies and components after orders are received.

Question 14 options:

	True
	False

Save

Question 15 (1 point)

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

Question 15 options:

	True
	False

Save

Question 16 (1 point)

Physical presence does not occur in a manufacturing service process.

Question 16 options:

	True
	False

Save

Question 17 (1 point)

Which of the following statements about process choice is best?

Question 17 options:

	A batch process typically has a standard sequence of operations through the facility.
	Automobiles and appliances are examples of products created using a continuous flow process.
	Continuous flow processes are very capital intensive.
	A custom cake operation is an example of a batch process.

Save

Question 18 (2 points)

Use the following to answer the questions below. A company must decide on the type of equipment to buy in order to manufacture a new product line. The company can purchase an all-purpose machine, with fixed costs amounting to $20,000 per year, and it will cost $40 / unit to produce the new line on this machine. It can also buy a special-purpose machine, with fixed costs of $50,000 per year, and the per unit cost on this machine is $30. Refer to the instruction above. What does the company save for the year by selecting this low-cost option (for annual requirements of 5,000 units)?

Question 18 options:

	$15,000
	$5,000
	$10,000
	$20,000

Save

Question 19 (2 points)

Use the following to answer the questions below. A company is considering two options for the production of a part needed downstream in the manufacturing process. Particulars are as follows:

Refer to the instruction above. For a monthly volume of 3,000 units, which automation approach should be chosen?

Question 19 options:

	specialized automation
	general automation
	Either approach is acceptable, because costs are the same for either option at 3,000 units.
	Can't be determined with information given.

Save

Question 20 (2 points)

Use the following to answer the questions below. A company must decide on the type of equipment to buy in order to manufacture a new product line. The company can purchase an all-purpose machine, with fixed costs amounting to $20,000 per year, and it will cost $40 / unit to produce the new line on this machine. It can also buy a special-purpose machine, with fixed costs of $50,000 per year, and the per unit cost on this machine is $30. Refer to the instruction above. What is the break-even quantity between the two machines?

Question 20 options:

	7,000 units
	10,000 units
	3,000 units
	5,000 units

Save