Applying the Concept 15-1: Level of Customer Involvement

Identify each product by its level of customer involvement.

A. make-to-stock
B. assemble-to-order
C. make-to-order

1. Berkline theater chairs with subwoofer speakers.       
B. Assemble-to-order. When you put a subwoofer in the chair, it is assembled—or no longer made to stock.

2. Amazon having FedEx deliver a package overnight to a customer.
C. Make-to-order. The order has been received from the customer. Therefore, there is a high level of customer involvement in shipping it to the specific address.

3. A Samsung Galaxy smartphone at a Sprint store.        
A. Make-to-stock. The smartphone is a standard product. The customer has a low level of involvement because he or she either takes the product as is or doesn’t buy it.

4. A Nicole French Salon facial. 
C. Make-to-order. The facial is made-to-order on a specific customer. The customer has to be there, which requires a high level of involvement.

5. A bag of Frito-Lay Doritos.
A. Make-to-stock. Snack foods are standardize prepackaged items..

6. Special-of-the-day ice cream in a sugar cone at the local Joe’s Diner.
B. Assemble-to-order. An ice cream cone is a standard product. The ice cream in a sugar cone is a simple customized feature. The customer has to be there to order it; therefore, there is a moderate level of involvement.

 

Applying the Concept 15-2: Flexibility of Operations

Identify the operations system that would be used to produce each product.

A. Continuous Process Operations (CPO)
B. Repetitive Process Operations (RPO)
C. Batch Process Operations (BPO)
D. Individual Process Operations (IPO)
E. Project Process Operations (PPO)

7. Packages of Wonder white, whole wheat, and rye breads.     
C. BPO. Because bread has a variety of grains that can be easily made on the same machine, it most likely baking in batches.

8. The new dormitory built at Salem State University.  
E. PPO. Project process operations are used in the construction industry

9. A Toyota Camry car built in the United States.
B. RPO. Automobiles are commonly made on an assembly line.

10. A swimming pool installed by Pool Man pools.
E. PPO. Swimming pools are installed at the customer’s site.

11. The concrete delivered for the slab foundation for a new house.
A. CPO. Concrete is not delivered in discrete units, it continuously flows until you fill the foundation slab.

 

Applying the Concept 15-3: Facility Layout

Identify the facility layout that would be used to produce each product.

A. product
B. process
C. cellular
D. fixed-position

12. Salads being made at the Olive Garden restaurant. 
C. Cellular. Most restaurants use a cellular layout for simplification to reduce cost and improve productivity.

13. A Mustang car being built in a Ford plant.    
A. Product. Most traditional automotive plants use repetitive-process operations in which the automobiles are made on an assembly line.

14. A wall-to-wall carpet being cleaned by Rug Cleaning R Us.
D. Fixed-position. The business must go to the customer to do the work.

15. A woman comes to Mercy Hospital to have a baby.
B. Process. The women would go to the maturity ward.

 

Applying the Concept 15-4: Scheduling Tools

Select the most appropriate scheduling tool for each situation.

A. planning sheet
B. Gantt chart
C. PERT network

16. You want to use a tool to develop procedures for opening and closing the facility.
A. Planning sheet. Planning sheets are good for developing procedures.

17. You want to use a tool to schedule rooms and human resources courses.
B. Gantt chart. Gantt charts are good for allocating room resources to courses so you can see at a glance which rooms are being used when, why, and by which program.

18. You want to use a tool for building a new submarine.
C. PERT network. Building a new submarine will have both dependent and independent activities. PERT was fisrt developed to build submarines, so that is why I use this example.

19. You want a tool to schedule the making of eight products on six different types of machines. 
B. Gantt chart. Gantt charts can show the progress of multiple products.

20. You want a tool for building a new office facility to rent out 10 units.
C. PERT network. Building an office building requires a set sequence of relatively complex activities.

21. You want a tool to develop a procedure for a new method of reporting absenteeism. 
A. Planning sheet. Planning sheets are good for developing procedures.

 

Applying the Concept 15-5: Measuring Productivity

The standard monthly productivity rate in your department is

Outputs of 6,000 units = .67
Inputs of $9,000 cost

For the first five months of the year, calculate the current productivity rate and show it as a ratio and a percentage. Also, calculate the percentage productivity change, compared to the standard, stating whether it is an increase or a decrease.

22. January: outputs of 5,900, inputs of $9,000.  _____ ratio, _____%, increase/decrease of _____%
.66:1 ratio, 66%, decrease of 1.49%

23. February: outputs of 6,200, inputs of $9,000. _____ ratio, _____%, increase/decrease of _____%
.69:1 ratio, 69%, increase of 2.99%

24. March: outputs of 6,000, inputs of $9,300. _____ ratio, _____%, increase/decrease of _____%
.65:1 ratio, 65%, decrease of 2.99%

25. April: outputs of 6,300, inputs of $9,000. _____ ratio, _____%, increase/decrease of _____%
.70:1 ratio, 70%, increase of 4.48%

26. May: outputs of 6,300, inputs of $8,800. _____ ratio, _____%, increase/decrease of _____%
.72:1 ratio, 72%, increase of 7.46%