Question 1

The break-even graph shown below represents the cost structure associated with a flexible production process and one that is fixed (less flexible).Using the information displayed in the graph,determine the cost structures associated with the two alternative production methods.

Accepted Answer

The Fixed alternative has a fixed cost o...

Question 2

Two manufacturing processes are being considered for making a new product.Process #1 is less capital intensive,with fixed costs of $50,000 per year and variable costs of $700 per unit.Process #2 has fixed costs of $400,000 annually,with variable costs of $200 per unit.
a.What is the break-even quantity for the two processes?
b.If annual sales are expected to be 600 units,which process should be selected?
c.If lowest overall costs per year is your overall objective,for what range of annual production quantities should you select the first process? the second process?
d.Operations and Engineering have found a way to reduce the cost of the second process,such that the fixed costs for this process decrease from $400,000 to $300,000 annually.All other costs remain the same (1st process fixed = $50,000 / year,1st process variable = $700 / unit,2nd process variable = $200 / unit).What is the new break even quantity between the two processes?
e.Does this change the process selection for the annual sales volume of 600 units? If so,for what range of annual production quantities should you select the first process and the second process?

Accepted Answer

a.$50,000 + $700(Q)= $400,000 + $ 200(Q)...

Question 3

An eighty percent learning curve means that for each doubling of output,the time required to complete the last task is ________ percent less than before.

Accepted Answer

The answer of An eighty percent learning curve means that...

Question 4

Process ________ is the boundary of the process to be analyzed.

Accepted Answer

scope

Question 5

A farmer that has been well-trained in the scientific method divides his acreage into several plots and plants the same variety of hay in each.He varies the amount of fertilizer applied to each plot and carefully records the yield,in bales per acre,for each of the plots.Which of these tools would be the best to help him analyze the effect of fertilizer application on hay yield?

Accepted Answer

A)  cause and effect diagram
B)  scatter diagram
C)  Pareto chart
D)  flow chartE) B) and D)
F) None of the above

Question 6

Capital intensive automation is appropriate for high and low volume operations.

Accepted Answer

A) True 
 B)False

Question 7

When managing processes,it is vital that:

Accepted Answer

A)  design teams are allowed to function creatively and set their own charter.
B)  the organization is not satisfied unless fundamental reengineering changes are made.
C)  sound project management practices are used to implement the redesigned process.
D)  people are redesigned at the same time the process is redesigned.E) C) and D)
F) A) and C)

Question 8

How could a fishbone chart be used to design a new process?

Accepted Answer

Also called a cause-and-effect diagram,the classic fishbone chart relates a key quality problem to its potential causes.Instead of placing a problem at the head of the fish,instead the process designers might place the desired process outcome at the head of the fish,e.g. ,"100% accuracy in order fulfillment" and then fill out the skeletal structure with elements that can help achieve this desired process outcome.

Question 9

A(n)________ process would probably not be used to produce products before a customer has placed a firm order.

Accepted Answer

The answer of A(n)________ process would probably not be used...

Question 10

Create a flowchart that displays the proper sequential use of the major graphical tools in Chapter 4,"Process Analysis." Include a note next to each tool that explains how the output of one tool is used as the input for the following tool.

Accepted Answer

A flowchart shows a big picture view of ...

Question 11

Process analysis focuses on:

Accepted Answer

A)  how work is actually done.
B)  who is responsible for the customer.
C)  the customer's needs.
D)  the number of steps in between supplier and customer.E) A) and D)
F) A) and C)

Question 12

Sketch and discuss the product-process matrix for manufacturing.

Accepted Answer

The product-process matrix brings togeth...

Question 13

Higher volume processes are more likely to be encountered in the back office.

Accepted Answer

A) True 
 B)False

Question 14

Active customer contact and personalized attention can lower cost to the customer by:

Accepted Answer

A)  increasing the capital intensity.
B)  trading fixed costs for an equivalent variable cost.
C)  substituting customer efforts for those of the service provider.
D)  lowering the level of technology involved.E) B) and D)
F) B) and C)

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

A group of people,who are knowledgeable about the process and its disconnects,meets to propose ideas for change in a rapid-fire manner.Such a session is called a brainstorming session.

Accepted Answer

A) True 
 B)False

Question 17

Scenario 2.3
A job consists of three elements.Twenty observations for each element were timed,and the resulting data are shown in the following table.A performance rating has also been assigned for each element,as shown in the table.The job has an allowance of 15% of normal time.
 
-Use the information in Scenario 2.3.What is the normal time for the entire job?

Accepted Answer

A)  greater than or equal to 10.0 minutes
B)  less than 10.0 minutes but greater than or equal to 8.5 minutes
C)  less than 8.5 minutes but greater than or equal to 7.0 minutes
D)  less than 7.0 minutesE) B) and D)
F) A) and B) C

Question 18

An examination of strategic issues such as possible gaps between a process's competitive priorities and current competitive capabilities falls in the:

Accepted Answer

A)  document process phase of process analysis.
B)  evaluate performance phase of process analysis.
C)  redesign process phase of process analysis.
D)  identify opportunities phase of process analysis.E) None of the above
F) B) and D)

Question 19

Process analysis is the documentation and detailed understanding of how work is performed and how it can be redesigned.

Accepted Answer

A) True 
 B)False

Question 20

Benchmarking studies must have:

Accepted Answer

A)  a direct competitor for comparison.
B)  a team composed of at least one member from each department in the organization.
C)  a team composed of at least one member from each department in the organization plus one customer of each process output.
D)  quantitative goals.E) A) and C)
F) B) and D)

Exam 2: Process Strategy and Analysis

The break-even graph shown below represents the cost structure associated with a flexible production process and one that is fixed (less flexible).Using the information displayed in the graph,determine the cost structures associated with the two alternative production methods.

Correct Answer
verified
The Fixed alternative has a fixed cost o...
View Answer

Correct Answer
verified
a.$50,000 + $700(Q)= $400,000 + $ 200(Q)...
View Answer

An eighty percent learning curve means that for each doubling of output,the time required to complete the last task is ________ percent less than before.

Correct Answer
verified

Process ________ is the boundary of the process to be analyzed.

Correct Answer
verified
scope

Correct Answer
verified

Capital intensive automation is appropriate for high and low volume operations.

Correct Answer
verified

When managing processes,it is vital that:

Correct Answer
verified

How could a fishbone chart be used to design a new process?

A(n)________ process would probably not be used to produce products before a customer has placed a firm order.

Correct Answer
verified

Create a flowchart that displays the proper sequential use of the major graphical tools in Chapter 4,"Process Analysis." Include a note next to each tool that explains how the output of one tool is used as the input for the following tool.

Correct Answer
verified
A flowchart shows a big picture view of ...
View Answer

Process analysis focuses on:

Correct Answer
verified

Sketch and discuss the product-process matrix for manufacturing.

Correct Answer
verified
The product-process matrix brings togeth...
View Answer

Higher volume processes are more likely to be encountered in the back office.

Correct Answer
verified

Active customer contact and personalized attention can lower cost to the customer by:

Correct Answer
verified

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

Correct Answer
verified

A group of people,who are knowledgeable about the process and its disconnects,meets to propose ideas for change in a rapid-fire manner.Such a session is called a brainstorming session.

Correct Answer
verified

Correct Answer
verified
C

An examination of strategic issues such as possible gaps between a process's competitive priorities and current competitive capabilities falls in the:

Correct Answer
verified

Process analysis is the documentation and detailed understanding of how work is performed and how it can be redesigned.

Correct Answer
verified

Benchmarking studies must have:

Correct Answer
verified

Exam 2: Process Strategy and Analysis

The break-even graph shown below represents the cost structure associated with a flexible production process and one that is fixed (less flexible).Using the information displayed in the graph,determine the cost structures associated with the two alternative production methods.

Correct AnswerverifiedThe Fixed alternative has a fixed cost o...View AnswerShow Answer

Correct Answerverifieda.$50,000 + $700(Q)= $400,000 + $ 200(Q)...View AnswerShow Answer

An eighty percent learning curve means that for each doubling of output,the time required to complete the last task is ________ percent less than before.

Correct AnswerverifiedShow Answer

Process ________ is the boundary of the process to be analyzed.

Correct Answerverifiedscope

Correct AnswerverifiedShow Answer

Capital intensive automation is appropriate for high and low volume operations.

Correct AnswerverifiedShow Answer

When managing processes,it is vital that:

Correct AnswerverifiedShow Answer

How could a fishbone chart be used to design a new process?

A(n)________ process would probably not be used to produce products before a customer has placed a firm order.

Correct AnswerverifiedShow Answer

Create a flowchart that displays the proper sequential use of the major graphical tools in Chapter 4,"Process Analysis." Include a note next to each tool that explains how the output of one tool is used as the input for the following tool.

Correct AnswerverifiedA flowchart shows a big picture view of ...View AnswerShow Answer

Process analysis focuses on:

Correct AnswerverifiedShow Answer

Sketch and discuss the product-process matrix for manufacturing.

Correct AnswerverifiedThe product-process matrix brings togeth...View AnswerShow Answer

Higher volume processes are more likely to be encountered in the back office.

Correct AnswerverifiedShow Answer

Active customer contact and personalized attention can lower cost to the customer by:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

A group of people,who are knowledgeable about the process and its disconnects,meets to propose ideas for change in a rapid-fire manner.Such a session is called a brainstorming session.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedC

An examination of strategic issues such as possible gaps between a process's competitive priorities and current competitive capabilities falls in the:

Correct AnswerverifiedShow Answer

Process analysis is the documentation and detailed understanding of how work is performed and how it can be redesigned.

Correct AnswerverifiedShow Answer

Benchmarking studies must have:

Correct AnswerverifiedShow Answer

Correct Answer
verified
The Fixed alternative has a fixed cost o...
View Answer

Correct Answer
verified
a.$50,000 + $700(Q)= $400,000 + $ 200(Q)...
View Answer

Correct Answer
verified

Correct Answer
verified
scope

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A flowchart shows a big picture view of ...
View Answer

Correct Answer
verified

Correct Answer
verified
The product-process matrix brings togeth...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
C

Correct Answer
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Correct Answer
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Correct Answer
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