6. Which of the following statements about process management is best? The tradi
ID: 346209 • Letter: 6
Question
6. Which of the following statements about process management is best? The traditional relationship between capital intensity and resource flex one is high, so is the other. When customization must be high, equipment should be general purpose, and employees need to perform a broader range of duties. Creati variable unit cost. a. b. c. ng a more capital intensive process tends to reduce the fixed cost and raise the d. Economies of scope mean that a process should be devoted to a single product or service to achieve high volumes. Economies of scale mean that a process should be devoted to a variety of products or services to achieve customization e. 7. Which of the following statements about customer involvement is best? In service industries, customer contact is of minor importance. b. a. A firm that products standardized products often seeks customer specifications. c. For services that directly involve the customer, the customer often dictates the time of the service d. When customer involvement is highly customized, a process is more likely to use a standardized-services process rather than a customized-services process. Empowered employees are not necessary when there is high customer involvement. e. 8. What type of production process would be appropriate for a company that refines petroleum, or makes petrochemicals or paper that would be used as a base for other companies to use to make a variety of products? a. product focus b. continuous c. job shop d. project shop e. none of the above Scantron Inc. claims that its competitors have to recall 10% of their products to fix defects when Scantron, Inc. only has to recall 5%. Scantron Inc. is emphasizing which dimension of quality? 9, a. Safety/Security b. Reliability c. Performance d. Conformance e. FeaturesExplanation / Answer
6. Ans: when customization must be high, equipment should be general purpose and employees need to perform a broader range of duties.
Option A is wrong because when capital intensity is high resource flexibility need not be high
Option C is wrong because creating more intensive process does not reduce fixed cost
Option D is wrong because Economy of scope means saving gained by producing two or more product
Option E is wrong because Economy of scale means saving gained by producing single product in large quantity
7. Ans: For the services that directly involves the customer, the customer often dictates the time of service because in service industry customer is king
Option A is wrong because in service industry customer contact is of high importance
Option B is wrong because the firm which produces standardize product never seeks customer specification.
Option D is wrong because when customer involvement is highly customized, the process is more likely to use customized service process.
Option E is wrong because empowered employees are necessary for high customer involvement
8. Continuous process. This is because petrochemical, paper and petroleum are standardized product which are produced in mass
It is not project or job shop because they are specialized production process which concentrate on single to few product.
9. Reliability. This is because reliability is nothing but trustworthy. Scantron inc is saying that its products are trust worthy that even during worst condition it is far better than its competition
Safety means while using product how safe the user is, performance means how efficiently product can achieve its goal, conformance means how product meets its specification, features means speciality of product.
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