Multiple choices in Operation Management

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Multiple choices in Operation Management (Processes and technology) The attached are two file one the question and the other one is the lesson and you might find the answer on it. Thanks .


Question 11 pts

The two characteristics on which the product-process matrix is based are

demand stability and worker skills

demand volume and product standardization

product customization and process speed

product quality and process cost

Question 21 pts

Process innovation projects are chartered to do all of the following except

achieve rapid, dramatic improvements in process performance

continuously improve existing processes

achieve breakthrough improvements

totally redesign or reengineer a process from scratch

Question 31 pts

A firm’s process strategy defines all of the following except its

capital intensity

process flexibility

vertical integration

process selection

Question 41 pts

As process selection moves up the diagonal from project to continuous production

demand volume decreases

product variety decreases

capital intensity decreases

flexibility increases

Question 51 pts

If a firm can sell a product for $40 each, then what is the volume needed to break even if the fixed cost of production is $125,000 and labor and material costs are $30 per item?

125,000 units

12,500 units

4,167 units

3,250 units

Question 61 pts

A company is evaluating which of two alternatives should be used to produce a product that will sell for $25 per unit. The following cost information describes the two alternatives

Process A

Process B

Fixed Cost

$100,000

$200,000

Variable Cost per Unit

$15

$10

For what level of volume (output) would the firm prefer Process A to Process B?

for all volume levels greater than 10,000

for all volume levels less than 13,333.33

for all volume levels greater than 20,000

for all volume levels less than 20,000

Question 74 pts

Match the following products with the most likely way they are produced from the product-process matrix.

Office paper

[ Choose ] Mass production Project Continuous production Batch production

Croissants

[ Choose ] Mass production Project Continuous production Batch production

Cars

[ Choose ] Mass production Project Continuous production Batch production

Custom jewelry

[ Choose ] Mass production Project Continuous production Batch production


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Question 11 pts The two characteristics on which the product-process matrix is based are demand stability and worker skills demand volume and product standardization product customization and process speed product quality and process cost Question 21 pts Process innovation projects are chartered to do all of the following except achieve rapid, dramatic improvements in process performance continuously improve existing processes achieve breakthrough improvements totally redesign or reengineer a process from scratch Question 31 pts A firm’s process strategy defines all of the following except its capital intensity process flexibility vertical integration process selection Question 41 pts As process selection moves up the diagonal from project to continuous production demand volume decreases product variety decreases capital intensity decreases flexibility increases Question 51 pts If a firm can sell a product for $40 each, then what is the volume needed to break even if the fixed cost of production is $125,000 and labor and material costs are $30 per item? 125,000 units 12,500 units 4,167 units 3,250 units Question 61 pts A company is evaluating which of two alternatives should be used to produce a product that will sell for $25 per unit. The following cost information describes the two alternatives Process A Process B Fixed Cost $100,000 $200,000 Variable Cost per Unit $15 $10 For what level of volume (output) would the firm prefer Process A to Process B? for all volume levels greater than 10,000 for all volume levels less than 13,333.33 for all volume levels greater than 20,000 for all volume levels less than 20,000 Question 74 pts Match the following products with the most likely way they are produced from the productprocess matrix. Office paper [ Choose ] Mass production Project Continuous production Batch production Croissants [ Choose ] Mass production Project Continuous production Batch production Cars [ Choose ] Mass production Project Continuous production Batch production Custom jewelry [ Choose ] Mass production Project Continuous production Batch production Chapter 6 Processes and Technology Russell and Taylor Operations and Supply Chain Management, 9th Edition Lecture Outline • • • • Process Planning Process Analysis Process Innovation Technology Decisions 6-2 Learning Objectives • Evaluate strategic options in process planning, including whether or not to outsource • Differentiate among different types of production processes • Understand the effect of volume and standardization on process selection • Appreciate the difficulties in translating a design to a process • Use simple flowcharting tools to improve everyday processes • Investigate the use of technology in manufacturing and service processes 6-3 Process Planning • Process • Group of related tasks with specific inputs & outputs • Process design • tasks to be done & how they are coordinated among functions, people, & organizations • Process strategy • an organization’s overall approach for physically producing goods and services • Process planning • converts designs into workable instructions for manufacture or delivery 6-4 Process Strategy • Vertical integration • extent to which firm will produce inputs and control outputs of each stage of production process • Capital intensity • mix of capital (i.e., equipment, automation) and labor resources used in production process • Process flexibility • ease with which resources can be adjusted in response to changes in demand, technology, products or services, and resource availability • Customer involvement • role of customer in production process 6-5 Outsourcing • Cost • Is it cheaper to make or buy the item • Capacity • Does the company have the capacity • Quality • Easier to control quality in your own factory • Speed • Shipping time can reduce savings • Reliability • Quality and timing are reliability measures • Expertise • Protect proprietary information 6-6 Stop & Think What is the difference between outsourcing and offshoring? What are some of the advantages and disadvantages of each? 1-7 Process Selection • Projects • one-of-a-kind production of a product to customer order • Batch production • process many different jobs at the same time in groups or batches • Mass production • produce large volumes of a standard product for a mass market • Continuous production • used for very-high volume commodity products 6-8 Product-Process Matrix 6-9 Types of Processes Type of product Type of customer Product demand PROJECT BATCH MASS CONT. Unique Made-toorder Made-tostock Commodity (customized) (standardized ) Few individual customers Mass market Mass market Fluctuates Stable Very stable One-at-atime Infrequent 6-10 Types of Processes PROJECT BATCH MASS CONT. Demand volume Very low Low to medium High Very high No. of different products Infinite variety Many, varied Few Very few Production system Long-term project Discrete, job shops Repetitive, assembly lines Continuous, process industries 6-11 Types of Processes PROJECT BATCH MASS CONT. Equipment Varied Generalpurpose Specialpurpose Highly automated Primary type of work Specialized contracts Fabrication Assembly Mixing, treating, refining Worker skills Experts, craftspersons Wide range of skills Limited range of skills Equipment monitors 6-12 Types of Processes PROJECT Advantages Disadvantages Examples BATCH MASS CONT. Custom work, latest technology Flexibility, quality Efficiency, speed, low cost Highly efficient, large capacity, ease of control Non-repetitive, small customer base, expensive Costly, slow, difficult to manage Capital investment; lack of responsiveness Difficult to change, far-reaching errors, limited variety Construction, shipbuilding, spacecraft Machine shops, print shops, bakeries, education Automobiles, televisions, computers, fast food Paint, chemicals, foodstuffs 6-13 Stop & Think Think of examples of production processes that fit into each category on the product/process matrix. 1-14 Process Selection With Break-Even Analysis • Study cost trade-offs based on demand volume • Cost • Fixed costs • constant regardless of the number of units produced • Variable costs • vary with the volume of units produced • Revenue • price at which an item is sold 6-15 Process Selection With Break-Even Analysis • Total revenue • price times volume sold • Profit • difference between total revenue and total cost 6-16 Process Selection With Break-Even Analysis Total cost = fixed cost + total variable cost TC = cf + vcv Total revenue = volume x price TR = vp Profit = total revenue - total cost Z = TR – TC = vp - (cf + vcv) cf = fixed cost V = volume (i.e., number of units produced and sold) cv = variable cost per unit p = price per unit 6-17 Process Selection With Break-Even Analysis TR = TC vp = cf + vcv vp - vcv = cf v(p - cv) = cf cf v= p-c v Solving for Break-Even Point (Volume) 6-18 Break-Even Analysis Fixed cost = cf = $2,000 Variable cost = cv = $50 per unit Price = p = $100 per unit Break-even point is cf v= p-c v 6-19 Break-Even Analysis Fixed cost = cf = $2,000 Variable cost = cv = $50 per unit Price = p = $100 per unit Break-even point is cf 2000 v= p-c = = 40 units v 100 - 50 6-20 Break-Even Analysis: Graph 6-21 Process Selection – Multiple Processes Process A Process B $2,000 + $50v = $10,000 + $30v 6-22 Process Selection – Multiple Processes Process A Process B $2,000 + $50v = $10,000 + $30v $20v = $8,000 v = 400 units Below or equal to 400, choose A Above or equal to 400, choose B 6-23 Multiple Processes – Indifference Point 6-24 Stop & Think Fixed cost Variable cost Selling price Process A Process B $500,000 $750,000 $25 per unit $23 per unit $35 per unit What is the breakeven point for Process A? Process B? What is the preferred process if the demand volume is estimated to be 120,000 units? 150,000 units? What is the point of indifference between the two processes? 1-25 Process Plans • Set of documents that detail manufacturing and service delivery specifications • assembly charts • operations sheets • quality-control check-sheets 6-26 Assembly Chart 6-27 Operations Sheet for Plastic Part Part name Crevice Tool Part No. 52074 Usage Hand-Vac Assembly No. 520 Oper. No. Description Dept. Machine/Tools Time 10 Pour in plastic bits 041 Injection molding 2 min 20 Insert mold 041 #076 2 min 30 Check settings & start machine 041 113, 67, 650 20 min 40 Collect parts & lay flat 051 Plastics finishing 10 min 50 Remove & clean mold 042 Parts washer 15 min 60 Break off rough edges 051 Plastics finishing 10 min 6-28 Process Analysis • Systematic study of all aspects of a process • • • • make it faster more efficient less costly more responsive • Basic tools • process flowcharts • diagrams • maps 6-29 Building a Flowchart • • • • • • • Determine objectives Define process boundaries Define units of flow Choose type of chart Observe process and collect data Map out process Validate chart 6-30 Flow Charts in Microsoft Visio 6-31 Process Flowcharts • Look at manufacture of product or delivery of service from broad perspective • Incorporate • nonproductive activities (inspection, transportation, delay, storage) • productive activities (operations) 6-32 Process Flowchart Symbols Operation Inspection Transportation Delay Storage 6-33 Process Flowchart of Apple Processing 6-34 Visio Flowcharts 6-35 Flowcharts in Excel 6-36 Process Map or Swimlane Chart of Restaurant Service 6-37 Process Innovation Total redesign of a process for breakthrough improvements Continuous improvement refines the breakthrough Breakthrough Improvement Continuous improvement activities peak; time to reengineer process 6-38 From Function to Process Sales Manufacturing Purchasing Accounting Product Development Order Fulfillment Supply Chain Management Customer Service Function Process 6-39 Process Innovation Customer Requirements Strategic Directives Baseline Data Benchmark Data Goals for Process Performance High - level Process map Innovative Ideas Detailed Process Map Model Validation Pilot Study of New Design No Goals Met? Yes Design Principles Key Performance Measures Full Scale Implementation 6-40 High-Level Process Map 6-41 Principles for Redesigning Processes • Remove waste, simplify, and consolidate similar activities • Link processes to create value • Let the swiftest and most capable enterprise execute the process • Flex process for any time, any place, any way • Capture information digitally at the source and propagate it through process 6-42 Principles for Redesigning Processes • Provide visibility through fresher and richer information about process status • Fit process with sensors and feedback loops that can prompt action • Add analytic capabilities to the process • Connect, collect, and create knowledge around process through all who touch it • Personalize process with preferences and habits of participants 6-43 Techniques for Generating Innovative Ideas • Vary the entry point to a problem • In trying to untangle fishing lines, it’s best to start from the fish, not the poles • Draw analogies • A previous solution to an old problem might work • Change your perspective • Think like a customer • Bring in persons who have no knowledge of process 6-44 Techniques for Generating Innovative Ideas • Try inverse brainstorming • What would increase cost? • What would displease the customer? • Chain forward as far as possible • If I solve this problem, what is the next problem? • Use attribute brainstorming • How would this process operate if. . . • our workers were mobile and flexible? • there were no monetary constraints? • we had perfect knowledge? 6-45 Stop & Think Technology is a common disruptor. Brainstorm some examples of how technology has encouraged innovative, even radical, process redesign. 1-46 Financial Justification of Technology • Purchase cost • Includes add-ons to make technology work • Operating Costs • Visualize how the technology will be used • Annual Savings • Better quality and efficiency save money • Revenue Enhancement • New technology can enhance revenue 6-47 Financial Justification of Technology • Replacement Analysis • When to upgrade to new technology depends on competitive environment • Risk and Uncertainty • It is risky to invest and risky to • Piecemeal Analysis • Make sure new and existing technology are compatible 6-48 Advanced Components of Manufacturing 6-49 Product Technology • Computer-aided design (CAD) • Creates and communicates designs electronically • Group technology (GT) • Classifies designs into families for easy retrieval and modification • Computer-aided engineering (CAE) • Tests functionality of CAD designs electronically • Collaborative product commerce (CPC) • Facilitates electronic communication and exchange of information among designers and suppliers 6-50 Product Technology • Product data management (PDM) • Keeps track of design specs and revisions for the life of the product • Product life cycle management (PLM) • Integrates decisions of those involved in product development, manufacturing, sales, customer service, recycling, and disposal • Product configuration • Defines products “configured” by customers who have selected among various options, usually from a Web site 6-51 Process Technology • Standard for exchange of product model data (STEP) • Set standards for communication among different CAD vendors; translates CAD data into requirements for automated inspection and manufacture • Computer-aided design and manufacture (CAD/CAM) • Electronic link between automated design (CAD) and automated manufacture (CAM) • Computer aided process (CAPP) • Generates process plans based on database of similar requirements • E-procurement • Electronic purchasing of items from e-marketplaces, auctions, or company websites 6-52 Manufacturing Technology - 1 • Computer numerically control (CNC) • Machines controlled by software to perform a range of operations with the help of automated tool changers; collects processing information and quality data • Flexible manufacturing system (FMS) • A collection of CNC machines connected by an automated material handling system to produce a wide variety of parts • Robots • Programmable manipulators that can perform repetitive tasks; more consistent than workers but less flexible 6-53 Manufacturing Technology - 2 • Conveyors • Fixed-path material handling; move items along a belt or chain; “reads” package labels and diverts them to correct destination • Automatic guided vehicle (AGV) • Driverless trucks that move material along a specified path; directed by wire or tape embedded in floor or by radio frequencies • Automated storage and retrieval system (ASRS) • An automated warehouse; items placed in a storage system and retrieved by fast-moving stacker cranes; controlled by computer 6-54 Manufacturing Technology - 3 • Process Control • Continuous monitoring of automated equipment; makes real-time decisions on ongoing operation, maintenance, and quality • Computer-integrated manufacturing (CIM) • Automated manufacturing systems integrated through computer technology; also called e-manufacturing • Additive Manufacturing • Building up a product layer-by-layer from digital instructions, 3-D printing 6-55 Information Technology • Business–to–Business (B2B) • E-transactions between businesses usually via the Internet • Business–to–Consumer (B2C) • E-transactions between businesses and their customers usually via the Internet • Internet • A global information system of computer networks that facilitates communication and data transfer • Intranet • Communication networks internal to an organization; can also be password (i.e., firewall) protected sites on the Internet 6-56 Information Technology • Extranet • Intranets connected to the Internet for shared access with select suppliers, customers, and trading partners • Bar Codes • Series of vertical lines printed on packages that identify item and other information • Radio Frequency Identification tags (RFID) • Integrated circuit embedded in a tag; can send and receive information; a “twenty-first century bar code” with read/write capabilities • Electronic data interchange (EDI) • Computer-to-computer exchange of business documents over a proprietary network; very expensive and inflexible 6-57 Information Technology • Extensible markup language (XML) • A markup language that facilitates computer–to–computer communication over the Internet by tagging data before its is sent • Enterprise resource planning (ERP) • Software for managing key functions of an enterprise, including sales, marketing, finance, accounting, production, materials management & human resources • Supply chain management (SCM) • Software to manage flow of goods and information among a network of suppliers, manufacturers and distributors • Customer relationship management (CRM) • Software to manage interactions with customers; compiling and analyzing customer data 6-58 Information Technology • Decision support systems (DSS) • Information system to help managers make decisions; includes quantitative modeling components and interactive components for what-if analysis • Expert systems (ES) • A computer system that uses the knowledge of experts to diagnose or solve a problem • Artificial intelligence (AI) • Field of study replicating elements of human thought and natural processes in software; includes expert systems, genetic algorithms, neural networks, and fuzzy logic 6-59 Stop & Think Find a production process video that you can describe in terms of the four strategy choices: Vertical Integration Capital Intensity Process Flexibility Customer Involvement 1-60
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Explanation & Answer

Hello buddy, here is the complete solution. Thank you

Question 11 pts
The two characteristics on which the product-process matrix is based are
demand stability and worker skills
demand volume and product standardization
product customization and process speed
product quality and process cost

Question 21 pts
Process innovation projects are chartered to do all of the following except
achieve rapid, dramatic improvements in process performance
continuously improve existing processes
achieve breakthrough improvements
totally redesign or reengineer a process from scratch

Question 31 pts
A firm’s process strategy defines ...


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