Marketing Research 8th Edition by Burns - Test Bank

Job shop processes produce the widest variety of the listed process types.

Repetitive processes typically produce standardized products. The other choices are correct (see Table 5-1).

Automobile seats have moderate volumes and varieties considering such factors as differences in upholstery and thus would use a batch process (see Table 5-1).

Cellular manufacturing attempts to maintain flexibility of job shops but at lower costs.

Mass customization attempts to maintain cost advantages similar to continuous or repetitive processes, but allows a firm to produce greater variety than those processes normally allow.

Continuous process structures are used for make-to-stock orientations. The others are primarily make-to-order.

Of the alternatives, only repetitive process applies to make-to-stock. The others are make or assemble to order.

In a make-to-stock orientation, products are made in advance of actual customer orders and held in inventory. Thus, forecasting is critical to both costs and sales. Firms using the other orientations do not produce finished goods until after a customer order is received.

For an upholstered sofa using an assemble-to-order orientation, the premade frames are held in inventory but the fabric is not added until a customer order is placed. Sofas can also be make to stock.

A service factory requires high capital investment. The other descriptions are opposite of the reality. See Figure 5-2.

The degree of customization/customer interaction and labor/capital intensity form the axes of the service process matrix as shown in Figure 5-2.

Because there is moderate to low customization/customer interaction, meaning that large groups of customers have similar requirements, mass services technology can be used to create “self-services.” This helps to reduce labor costs and can increase service availability for customers.

Decoupling allows for back-office work to be done at a remote centralized location, allowing for standardization and economies of scale. Decoupling may actually reduce the ability to customize services.

Service blueprinting is defined as an approach that analyzes the interface between customers and service processes. It is similar to but different from process mapping.

Delivery of gasoline is essential for the service, but it is carried out by employees who do not have direct contact with customers, and it is generally not seen (or intended to be seen) by customers.

In a fixed-position layout, all of the necessary resources must come to the work site.

Because each product or customer takes a unique route through the process, the time and cost for movement can be very high.

When resources are arranged in a regular sequence of activities, a product layout is being employed.

Unique routes and high processing times are characteristics of functional layouts.

Lines are balanced so that each workstation does not exceed the takt time, which is the time required at each station to produce exactly what the customer demands.

(400 items × 6 minutes)/(12 hours × 60 minutes) = 3.33 (round up to 4)

(1,000 units × 12 minutes)/(8 hours × 60 minutes) = 25

A cellular layout arranges workstations to form work cells to produce parts that have similar processing characteristics.

Compared to a functional layout, a cellular layout is less complex, has fewer setups, higher efficiency, and less work-in-process inventory.

See Table 5-4.

FMS systems combine automated machines, robots, and material handling systems and are controlled by a single computer.

The use of tablet computers to provide information at the source where it is needed is mobility.

Indifference analysis is used to compare processes.

$1,000 + $0.50/cake = $3,000 + $0.40/cake, breakeven = $2,000/$0.10/cake = 20,000 cakes

The indifference point for A versus B is 5,000 units. Since B has the lowest variable cost, it is preferable to A for anticipated demand of 6,000 units. Breakeven for B versus C is 20,000 units. Since anticipated volume is only 6,000 units, B is preferable since it has lower fixed cost than C.