Deck 3: Process and Service Design

Question 1

A firm's process design can be product or process oriented.

Answer 1

True

Question 2

Process design typically follows either product design or begins at the prototype stage.

Answer 2

True

Question 3

Recent advances allow for marketing strategy, product, and process design to all be done concurrently.

Answer 3

True

Question 4

Product-oriented process design is characterized by low volume-high variety products.

Question 5

A process-oriented arrangement features high volume-low variety products and is very flexible.

Question 6

Process-oriented designs are inflexible in terms of the variety of tasks/products that can be handled.

Question 7

Equipment utilization is low in process-focused facilities as compared to product-focused facilities.

Question 8

Product-oriented designs have high variable costs and low idle time.

Question 9

Service design is a conceptual exercise that identifies consumer wants and develops actions to satisfy those wants.

Question 10

Service design is the combination of a tangible product and low-volume customer service.

Question 11

Process design is the way equipment and labor are organized to make a product or service.

Question 12

The goal of a product-oriented process is resource utilization, whereas the goal of a process-oriented design is standardization.

Question 13

The typical fast food restaurant such as Burger King uses a product-focused process.

Question 14

Dell Computers produces many varieties of computers from a few basic components. Their production process design can best be described as batch production.

Question 15

Project production involves products being generally made in large numbers.

Question 16

The organization of your university is an example of a batch processing service facility.

Question 17

A job shop organization is a product-oriented layout with different products moving among different work centers.

Question 18

The volumes in assembly lines processing are greater than in batch processing, but the variety is lower.

Question 19

Products like cereals, sugar, steel, bulk chemicals, power, and refined oil are made using continuous flow processes.

Question 20

Flexible manufacturing systems (FMS) are able to perform such tasks as manufacturing one-of-a-kind products efficiently and economically through use of CAD and CAM.

Question 21

A service factory is the opposite of a service shop based on the degree of customer interaction and the service customization.

Question 22

Professional services are the opposite of mass services because mass services require more use of technology than professional services.

Question 23

A professional service such as a law firm requires highly skilled labor, and the managerial focus is to maximize utilization of skilled resources.

Question 24

Service design is done using the 4Ts framework of tangibles, tasks, treatment, and time.

Question 25

The behavioral aspect of service design accounts for factors such as pain and time spent experiencing the service.

Question 26

Flowcharting is one of the simplest tools used for process design.

Question 27

Service blueprinting is a flowchart done in color.

Question 28

Service blueprinting is a process design technique that adds details of the customer-server interaction and provides time estimates for tasks.

Question 29

quality function deployment (QFD) is a service design tool for translating the voice of the market into design ideas and concepts.

Question 30

The 'House of Quality' identifies consumer priorities, conducts competitor comparisons, relates technical features to customer wants, and develops targets for technical features.

Question 31

ATMs and optical checkout scanners are examples of the use of technology in product design.

Question 32

Products are now designed to be part of a consumer experience as a means of differentiation.

Question 33

Process design

A) typically occurs before product design
B) is concerned with how resources are transformed into goods and services
C) can be product or process oriented
D) all of the above

Question 34

An automotive manufacturing assembly line is an example of a(n)

A) high volume-low variety process
B) high variety-low volume process
C) high volume-high variety process
D) low volume-low variety process

Question 35

Two types of process design are

A) input and output
B) goods and services
C) manual and automated
D) process focus and product focus

Question 36

Process-oriented designs are flexible in terms of

A) the variety of services that can be produced
B) the variety of products that can be produced
C) the high volume of product availability
D) the high amount of idle time

Question 37

A hospital emergency room is a good example of a process-oriented design because of

A) the versatility of the ER physicians
B) specially trained nurses
C) general purpose X-ray and diagnostic equipment
D) all of the above

Question 38

Service design is

A) a conceptual exercise that identifies consumer wants and develops actions to satisfy those wants
B) converting the consumer into a factor of production
C) using design modules to mix and match
D) all of the above

Question 39

Fixed costs are high, and unit variable costs are low for a

A) product-oriented process design
B) process-oriented design
C) serviced-oriented process design
D) none of the above

Question 40

Three of the main ways that machines and labor are organized include

A) project production, job shop, and batch processing
B) assembly line, product production, and service production
C) batch processing, modular processing, and intermittent processing
D) product oriented, process oriented and batch processing

Question 41

Which of the following statements is/are true?

A) Machine-paced assembly lines are similar in volume and variety to worker-paced lines.
B) The speed of a machine-paced line is lower than a worker-paced line.
C) The variety of a worker-paced line is higher than a machine-paced line.
D) The speed of the machine-paced line depends on the speed of the worker.

Question 42

Which of the following industries is most likely to have low equipment utilization?

A) cereal manufacturing
B) gourmet restaurants
C) auto manufacturing
D) oil refining

Question 43

Output from a job shop production environment would include all of the following except

A) university graduates
B) a hospital emergency room
C) television sets
D) a financial investment firm

Question 44

The product-process matrix identifies

A) the right process for the right product
B) the relationship between volume and product variety and the corresponding process
C) mismatches between product and process
D) all of the above

Question 45

Product standardization and production volume _______ as process type changes from batch to continuous

A) decrease
B) remain the same
C) increase
D) none of the above

Question 46

Which of the following is true as process type changes from batch to continuous?

A) Unit variable costs decrease, and initial fixed costs decrease.
B) Initial fixed costs increase, while unit variable costs decrease.
C) Unit variable costs increase, and initial fixed costs increase.
D) Initial fixed costs decrease, while unit variable costs increase.

Question 47

Computer-aided design and manufacturing systems can enable assembly-type production efficiencies

A) while maintaining product mix flexibility and low production volumes close to that of a job shop
B) while maintaining high production volumes close to that of project-type manufacturing
C) while maintaining product mix flexibility close to that of a continuous flow type operation
D) all of the above are correct

Question 48

Services that are designed to meet the needs of specific customers and low volume are

A) service factory
B) service shop
C) professional services
D) mass services

Question 49

H&R Block, one of the nation's leading tax preparation companies, has managed to convert from a pure professional service to a service shop by the use of

A) technology
B) multiple locations in major cities
C) standardizing cost
D) tax accountants

Question 50

The service matrix diagonal suggests that most service businesses have a tendency to drift towards the low customization-high speed flow 'service factory' quadrant by

A) offering a standardized menu of services
B) automating operations as much as possible
C) increase speed of customer flow
D) all of the above

Question 51

Rapid movement through the facility along with a high degree of customization might be typical of which company's approach?

A) Zappos
B) Saks
C) Old Navy
D) Garren's High Fashion Hair Stylist

Question 52

Which of the following companies uses a mass customization approach?

A) Dell
B) Home Depot
C) Arnold Palmer Hospital
D) Colgate-Palmolive

Question 53

Which of the following service categories generally has the highest equipment utilization?

A) service shop
B) service factory
C) professional services
D) mass services

Question 54

In the 3Ts model of tangibles, tasks, and treatment, the selection of the foundational T depends on

A) the size of the facility
B) the number of tasks
C) the different kinds of treatments available
D) the service performance priorities of the business

Question 55

Which of the following is not a component of the 3Ts model of service design?

A) tasks
B) treatment
C) time
D) tangibles

Question 56

Which of the following statements about the 3Ts model of service design is false?

A) Time refers to the duration required to perform and deliver the service.
B) Task consists of the jobs required to perform and deliver the service.
C) Treatment consists of psycho-social elements such as empathy, attitude, and consideration.
D) Tangibles consist of physical layout and space elements, and sensory elements.

Question 57

The behavioral aspects of service design include

A) rotating personnel at stressful points in the service design
B) administering pain early and often throughout the process
C) customer experience improvement during the steps the of service delivery
D) both A and C

Question 58

Which of the following is not a tool for process design?

A) value stream mapping
B) flowcharting
C) service blueprinting
D) process mapping

Question 59

Tools for service design include all of the following except

A) ethnography
B) quality function deployment
C) Ishikawa's framework
D) co-joint analysis

Question 60

Service blueprinting

A) adds details on customer-server interactions
B) identifies tasks that are carried out outside the sight of the customer
C) provides time estimates for tasks
D) all of the above

Question 61

Which of the following statements about the House of Quality is false?

A) It stimulates design innovations by examining how design features affect customer satisfaction.
B) It identifies consumer priorities.
C) It conducts competitor comparisons.
D) It relates technical features to customer wants.

Question 62

Which of the following is true regarding opportunities to improve process design?

A) using technology to replace labor in professions such as bank teller
B) offering virtual physician visits via video conferencing
C) automating routine tasks in accountancy and actuarial science
D) all of the above

Question 63

Advances in technology

A) have impacted the manufacturing sector only
B) are not very good yet at doing low-skilled labor
C) are replacing mid-level professional and mid-level manual labor
D) all of the above

Question 64

__________ is a process strategy that uses a product-oriented modular production process. MASS

Question 65

__________ is a conceptual exercise that identifies consumer wants and develops actions to satisfy those wants.

Question 66

A(n) __________ organization is a product-oriented layout with different products moving among different work centers.

Question 67

Two types of assembly line production are __________ and __________.

Question 68

Why is Dell Computers known as a mass customizer and not as a repetitive manufacturer?

Question 69

Identify and discuss any three process design strategies. Illustrate your answers with examples.

Question 70

Why is equipment utilization in process-focused service industries often lower than in comparative process-focused product industries?

Question 71

Compare and contrast a project production process design to an assembly line process design on the basis of variety, volume, equipment utilization, and inventory.

Question 72

Discuss advances being made in technology that enhance production and change the production design process.

Question 73

Compare and contrast product design methods with service design methods.

Question 74

Propose a new service or a modification of an existing service. Design it using the 3Ts framework.

Question 75

It may be easier to convert a process design from high-customization, low-volume output to low-customization, high-volume output rather than the other way around. Do you agree or disagree with this statement? Explain why.

Question 76

Discuss the behavioral aspects of service design. Are they as important, less important, or more important than the non-behavioral aspects?

Question 77

Explain briefly one process-design tool and one service-design tool.

Question 78

Discuss briefly three or four examples of technology's impact on services. Include at least one that has led to a reduction in labor costs.

Question 79

How do environmental concerns influence process design? Is being an environmentally friendly firm more costly? Does it increase or decrease competitive advantages? Discuss your position with examples.