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    2.3 Process Strategy Decisions

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    groton2045
    This document discusses process strategy decisions and their implications. It provides 10 multiple choice questions about key concepts related to process strategy, including customer involvement, automation, customization, and capital intensity. The questions cover topics like when different types of automation are appropriate, how capital intensity varies for different types of services, and the impact of customer involvement on productivity, quality measurement, and costs. The document is assessing understanding of major factors involved in process strategy decisions and their operational implications.

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    2.3 Process Strategy Decisions

    Uploaded by

    groton2045
    7 views2 pages
    This document discusses process strategy decisions and their implications. It provides 10 multiple choice questions about key concepts related to process strategy, including customer involvement, automation, customization, and capital intensity. The questions cover topics like when different types of automation are appropriate, how capital intensity varies for different types of services, and the impact of customer involvement on productivity, quality measurement, and costs. The document is assessing understanding of major factors involved in process strategy decisions and their operational implications.

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    This document discusses process strategy decisions and their implications. It provides 10 multiple choice questions about key concepts related to process strategy, including customer involvement, automation, customization, and capital intensity. The questions cover topics like when different types of automation are appropriate, how capital intensity varies for different types of services, and the impact of customer involvement on productivity, quality measurement, and costs. The document is assessing understanding of major factors involved in process strategy decisions and their operational implications.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    7 views2 pages

    2.3 Process Strategy Decisions

    Uploaded by

    groton2045
    This document discusses process strategy decisions and their implications. It provides 10 multiple choice questions about key concepts related to process strategy, including customer involvement, automation, customization, and capital intensity. The questions cover topics like when different types of automation are appropriate, how capital intensity varies for different types of services, and the impact of customer involvement on productivity, quality measurement, and costs. The document is assessing understanding of major factors involved in process strategy decisions and their operational implications.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    2.

    3 Process Strategy Decisions

    1) High customer involvement increases service provider productivity and makes quality
    measurement easier.
    Answer: FALSE
    Difficulty: Moderate
    Keywords: customer involvement, productivity, quality
    Learning Outcome: Discuss operations and operations management as a competitive advantage for the
    organization
    AACSB: Application of Knowledge
    Learning Obj.: Explain the major process strategy decisions and their implications for operations.

    2) Capital intensive automation is appropriate for both high and low volume operations.
    Answer: FALSE
    Difficulty: Moderate
    Keywords: automation, capital intensity
    Learning Outcome: Discuss operations and operations management as a competitive advantage for the
    organization
    AACSB: Application of Knowledge
    Learning Obj.: Explain the major process strategy decisions and their implications for operations.

    3) Fixed automation is appropriate for both line and continuous flow operations.
    Answer: TRUE
    Difficulty: Moderate
    Keywords: fixed automation, continuous flow
    Learning Outcome: Discuss operations and operations management as a competitive advantage for the
    organization
    AACSB: Application of Knowledge
    Learning Obj.: Explain the major process strategy decisions and their implications for operations.

    4) The ability to reprogram machines is useful for both low-customization and high-customization
    processes.
    Answer: TRUE
    Difficulty: Moderate
    Keywords: customization, programmable automation
    Learning Outcome: Discuss operations and operations management as a competitive advantage for the
    organization
    AACSB: Application of Knowledge
    Learning Obj.: Explain the major process strategy decisions and their implications for operations.

    5) A toaster is an example of flexible automation.


    Answer: FALSE
    Difficulty: Moderate
    Keywords: flexible automation
    Learning Outcome: Discuss operations and operations management as a competitive advantage for the
    organization
    AACSB: Application of Knowledge
    Learning Obj.: Explain the major process strategy decisions and their implications for operations.

    6) In a service process, capital intensity varies with volume in both front office and back office
    operations.
    Answer: TRUE
    Difficulty: Moderate
    Keywords: capital intensity, front office service, back office service
    Learning Outcome: Discuss operations and operations management as a competitive advantage for the
    organization
    AACSB: Application of Knowledge
    Learning Obj.: Explain the major process strategy decisions and their implications for operations.

    7) Customer involvement is especially important for service process strategy decisions, particularly if
    customer contact is high.
    Answer: TRUE
    Difficulty: Moderate
    Keywords: service process, customer contact
    Learning Outcome: Discuss operations and operations management as a competitive advantage for the
    organization
    AACSB: Application of Knowledge
    Learning Obj.: Explain the major process strategy decisions and their implications for operations.

    8) Additive manufacturing capabilities, such as 3D printing, prevent firms from achieving substantial
    economies of scope.
    Answer: FALSE
    Difficulty: Moderate
    Keywords: service process, economies of scope
    Learning Outcome: Discuss operations and operations management as a competitive advantage for the
    organization
    AACSB: Application of Knowledge
    Learning Obj.: Explain the major process strategy decisions and their implications for operations.

    9) Which of the following statements about customer involvement is best?


    A) In service industries, customer contact is of minor importance.
    B) High task divergence and flexible process flows require more flexibility of the process's
    employees, facilities and equipment.
    C) A firm that produces standardized products often seeks customer specifications.
    D) When customer involvement is highly customized, a process is more likely to use a standardized-
    services process rather than a customized-services process.
    Answer: B
    Difficulty: Moderate
    Keywords: customer involvement
    Learning Outcome: Discuss operations and operations management as a competitive advantage for the
    organization
    AACSB: Application of Knowledge
    Learning Obj.: Explain the major process strategy decisions and their implications for operations.

    10) Active customer contact and personalized attention can lower cost to the customer by:
    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.
    Answer: C
    Difficulty: Moderate
    Keywords: customer contact, cost
    Learning Outcome: Discuss operations and operations management as a competitive advantage for the
    organization
    AACSB: Application of Knowledge
    Learning Obj.: Explain the major process strategy decisions and their implications for operations.

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