Chapter 3 - Process Strategy

Question 1

supply chain processes

Answer 1

business processes that have external customers or suppliers

Question 2

process structure

Answer 2

the process type relative to the kinds of resources needed, how resources are partitioned between them, and their key characteristics

Question 3

layout

Answer 3

the physical arrangement of operations created by the various processes

Question 4

customer involvement

Answer 4

the ways in which customers become part of the process and the extent of their participation

Question 5

resource flexibility

Answer 5

the ease with which employees and equipment can handle a wide variety of products, output levels, duties and functions

Question 6

capital intensity

Answer 6

the mix of equipment and human skills in a process

Question 7

customer contact

Answer 7

the extent to which the customer is present, actively involved, and receives personal attention during the service process

Question 8

process divergence

Answer 8

the extent to which the process is highly customized with considerable latitude as to how its tasks are performed

Question 9

flexible flow

Answer 9

the customers, materials, or information move in diverse ways, with the path of one customer or job often crisscrossing the path that the next one takes

Question 10

line flow

Answer 10

the customers, materials, or information move linearly from one operation to the next, according to a fixed sequence

Question 11

front office

Answer 11

a process with high customer contact where the service provider interacts directly with the internal or external customer

Question 12

hybrid office

Answer 12

a process with moderate levels of customer contact and standard services with some options available

Question 13

back office

Answer 13

a process with low customer contact and little service customization

Question 14

process choice

Answer 14

a way of structuring the process by organizing resources around the process or organizing them around the products

Question 15

job processes

Answer 15

a process with the flexibility needed to produce a wide variety of products in significant quantities, with considerable divergence in the steps performed

Question 16

batch process

Answer 16

a process that differs from the job process with respect to volume, variety and quantity

Question 17

line process

Answer 17

a process that lies between the batch and continuous processes on the continuum; volumes are high and products are standardized, which allows resources to be organized around particular products

Question 18

continuous flow process

Answer 18

the extreme end of high volume standardized production and rigid line flows, with production not starting and stopping for long time intervals

Question 19

make to order strategy

Answer 19

a strategy used by manufacturers that make products to customer specifications in low volumes

Question 20

assemble to order strategy

Answer 20

a strategy for producing a wide variety of products from relatively few subassemblies and components after the customer orders are received

Question 21

postponement

Answer 21

the strategy of delaying final activities in the provision of a product until the orders are received

Question 22

mass customization

Answer 22

the strategy that uses highly divergent processes to generate a wide variety of customized products at reasonably low costs

Question 23

make to stock strategy

Answer 23

a strategy that involves holding items in stock for immediate delivery, thereby minimizing customer delivery times

Question 24

mass production

Answer 24

a term sometimes used in the popular press for a line process that uses the make to stock strategy

Question 25

block plan

Answer 25

a plan that allocates space and indicates placement of each operation

Question 26

closeness matrix

Answer 26

a table that gives a measure of the relative importance of each pair of operations being located close together

Question 27

weighted distance method

Answer 27

a mathematical model used to evaluate layouts (of facility locations) based on closeness factors

Question 28

euclidean distance

Answer 28

the straight line distance, or shortest possible path, between two points

Question 29

rectilinear distance

Answer 29

the distance between two points with a series of 90 degree turns, as along city blocks

Question 30

flexible workforce

Answer 30

a workforce whose members are capable of doing many tasks, either at their own workstations or as they move from one workstations to another

Question 31

automation

Answer 31

a system, process, or piece of equipment that is self-acting and self-regulating

Question 32

fixed automation

Answer 32

a manufacturing process that produces one type of part or product in a fixed sequence of similar operations

Question 33

flexible (programmable) automation

Answer 33

a manufacturing process that can be changed easily to handle various products

Question 34

industrial robot

Answer 34

versatile, computer-controlled machine programmed to perform various tasks

Question 35

economies of scope

Answer 35

economies that reflect the ability to produce multiple products more cheaply in combination than separately

Question 36

plants within plants (PWPs)

Answer 36

different operations within a facility with individualized competitive priorities, processes, and workforces under the same roof

Question 37

focused factories

Answer 37

the result of a firm’s splitting large plants that produced all the company’s products into several specialized smaller plants

Question 38

reengineering

Answer 38

the fundamental rethinking and radical redesign of processes to improve performance dramatically in terms of cost, quality, service, and speed

Question 39

process improvement

Answer 39

the systematic study of the activities and flows of each process to improve it

Question 40

process strategy

Answer 40

the pattern of decisions made in managing processes so that they will achieve their competitive priorities