OMCh 7 Questions

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Session 3: DISCUSSION QUESTIONS (p.274) 2. What type of process is used for making each of the following products?

(process focus low vol, high variety, repetitive focus modular, product focus high vol, low variety, mass customization high vol, high variety) a) Beer (Product Focused/Continuous) b) Wedding invitations (Process Focused/Job Shop) c) Automobiles (Modular/Repetitive) d) Paper (Product Focused/Continuous) e) Big Macs (Modular/Repetitive) f) Custom homes (Job Shop with components made in Product Focused and Modular facilities) g) Motorcycles (Modular/Repetitive) 4. What is process redesign? is the rethinking and radical design of business processes to bring about dramatic improvements in performance. 9. Identify manufacturing firms that compete on each of the four processes shown in Fig 7.1 Process focus, your local print shop and Kinkos Repetitive focus, Harley-Davidson Product focus, International paper Mass customization, Dell Computer 11. Identify service firms that compete on each of the four processes shown in Fig 7.1 Process: your local general-purpose hospital. Also most construction rms, such as Bechtel Repetitive: fast-food restaurants Product: Shouldice Hospital Mass customization: cafeterias and e-trade stockbrokers such as Schwab 12. Identify the competitive advantage of each of the four firms identified in Discussion Q11 Process focus for a general-purpose hospital: specialization of expertise in each hospital discipline, xray, physical therapy, blood lab, etc., by both the technician and supervision. Repetitive focus: high-quality modules as in most fastfood (very limited menu) restaurants, and law clinicswith the low cost of the uncontested divorce. Product focus: Southwest Airlines and e-trade stockbrokers may be good examples of low-cost advantage. Mass customization, per the text, McDonalds is trying this in a limited way. Charles Schwab seems to be effective at this in the nancial services areas. They seek competitive advantage via low cost and high customization 13. What are numerically controlled machines? Numerically controlled machinery means the equipment is computer controlled via programming languages known as APT and Compact II. Machinery with its own programmable computer 14. Describe briefly what an automatic identification system (AIS) is and how service organizations could use AIS to increase productivity and at the same time increase the variety of services offered. In an Automatic Identication System (AIS), bar codes, radio frequency (RF) signals, and optical signals improve both accuracy and speed of data entry contributing to productivity. For instance, costs are reduced because clerks spend less time keying in prices and quantities and do so with fewer errors. New services are being developed as these systems collect more information about customer behavior

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