Deck 5: Manufacturing and Service Process Structures

Question 1

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:

A)Cellular manufacturing.
B)Job shop processes.
C)Mass customization.
D)Project process.

Answer 1

Mass customization.

Question 2

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

A)Standardization across multiple locations.
B)Economies of scale.
C)Use of remotely located back office employees.
D)Easier customization of services.

Answer 2

Easier customization of services.

Question 3

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

A)Service process matrix.
B)Service blueprinting.
C)Process mapping.
D)Product/process matrix.

Answer 3

Service blueprinting.

Question 4

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:

A)Service factories.
B)Service shops.
C)Mass services.
D)Professional services.

Question 5

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

A)Cellular manufacturing.
B)Job shop processes.
C)Mass customization.
D)Project process.

Question 6

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:

A)Fixed-position layout.
B)Sequential action layout.
C)Functional layout.
D)Product layout.

Question 7

If you were developing a service blueprint, how would you classify "delivery of gasoline to a service station"?

A)Support processes
B)Physical evidence
C)Back-office/invisible contact employee actions
D)Front-office/visible contact employee actions

Question 8

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

A)Continuous process structure.
B)Cellular manufacturing process structure.
C)Job shop process structure.
D)Jones is likely to use any of these.

Question 9

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

A)Fixed-position layout
B)Functional layout
C)Service factory layout
D)Product layout

Question 10

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

A)Project-high complexity
B)Repetitive process-customized products
C)Job shop-high flexibility
D)Continuous flow-low-skilled workers

Question 11

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?

A)Engineer to order
B)Make to order
C)Assemble to order
D)Make to stock

Question 12

A common goal when designing a functional layout is to:

A)Ensure materials arrive on schedule.
B)Reduce the time and cost of moving people and materials between departments.
C)Avoid downtime at any workstation.
D)Balance the flow of materials through the process.

Question 13

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

A)Fixed-position layout
B)Functional layout
C)Service factory layout
D)Product layout

Question 14

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

A)Company that builds cruise ships.
B)An automotive assembler such as Ford Motor Co.
C)A glass beverage bottle manufacturer.
D)A company that produces automobile seats.

Question 15

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

A)An upholstered sofa
B)A mobile phone
C)Shampoo
D)A race car

Question 16

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

A)Job shop
B)Repetitive process
C)Continuous flow
D)Batch operation

Question 17

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

A)Mass customization
B)Job shop
C)Repetitive process
D)They are likely to use any one of these process structures.

Question 18

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

A)Service factory-facilities and equipment represent a large proportion of total costs.
B)Service shop-there is a low degree of customer interaction.
C)Mass service-transactions are very varied from customer to customer.
D)Professional service-transactions tend to be fairly standardized.

Question 19

What is the primary objective of line balancing?

A)To minimize the travel time between workstations
B)To match output rates with actual demand
C)To minimize materials handling costs
D)To group similar activities together

Question 20

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

A)Customization
B)Volume
C)Customer interaction
D)Labor intensity

Question 21

An automated process can be compared to a more labor-intensive process using:

A)A service blueprint.
B)Line balancing.
C)Indifference analysis.
D)Mass customization.

Question 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:

A)25 workstations.
B)2 workstations.
C)84 workstations.
D)14 workstations.

Question 23

The use of a tablet computer such as an iPad for a restaurant's wine list is an example of:

A)Mobility.
B)Point-of-sale system.
C)Warehouse management system.
D)Enterprise resource management system.

Question 24

Compared to a functional layout, cellular layouts have:

A)Less work-in-process inventory.
B)More complexity in scheduling.
C)More frequent setups.
D)Lower efficiency.

Question 25

Systems that combine automated machines, robots, and material handling systems and are controlled by a single computer are:

A)Transportation management systems (TMS).
B)Flexible manufacturing systems (FMS).
C)Manufacturing executive systems (EMS).
D)Warehouse management systems (WMS).

Question 26

A bakery has a choice of leasing different types of ovens. Oven A will cost $1,000 per year to lease and operate, plus $0.50 per cake baked. Oven B will cost $3,000 per year to lease and operate, plus $0.40 per cake baked. Find the indifference point at which the annual costs of the two ovens are equal.

A)200 cakes.
B)20,000 cakes.
C)40,000 cakes.
D)None of these.

Question 27

Three processes have the following costs: Process A has a fixed cost of $2,000 and variable cost of $3.00/unit. Process B fixed cost is $4,000 and variable cost is $2.60/unit. Process C fixed cost is $8,000 and variable cost is $2.40/unit. If the projected total demand is for 6,000 units, which process should be used?

A) Process A
B) Process B
C) Process C

Question 28

An example of an integrative technology is a/an:

A)Transportation management system.
B)Industrial robot.
C)Radio frequency identification (RFID) system.
D)Enterprise resource planning (ERP) system.

Question 29

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:

A)3 workstations.
B)4 workstations.
C)5 workstations.
D)2 workstations.

Question 30

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

A)Cellular layout.
B)Fixed position layout.
C)Flexible manufacturing systems.
D)Mass customization.