88

CHAPTER 1O P E R AT I O N S A N D P R O D U C T I V I T Y

1.Process strategy is the organizations approach to

transformingresourcesintogoodsandservices.
2.

Product

Likely Process

(a) Beer
(b) Wedding invitations
(c) Automobiles
(d) Paper
(e) Big Mac
(f) Custom Homes

Product Focused/Continuous
Process Focused/Job Shop
Modular/Repetitive
Product Focused/Continuous
Modular/Repetitive
Job Shop with components made
in Product Focused and Modular
facilities
Modular/Repetitive

(g) Motorcycles

3.Service blueprinting is a process analysis technique that

focusesontheprovidersinteractionwiththecustomer.
4.Processredesignreengineeringistherethinkingandradical
design of business processes to bring about dramatic
improvementsinperformance.
5.Techniques for improving service productivity include
separation, selfservice, postponement, focus, modules,
automation,scheduling,andtraining.
6.Thefourquadrantsare:
(1)Massservice(lowinteraction/customization;highlabor
intensity)
(2)Professional service (high interaction/customization;
highlaborintensity)
(3)Service factory (low interaction/customization; low
laborintensity)
(4)Serviceshop(highinteraction/customization;lowlabor
intensity)
7.CIM (computerintegrated manufacturing) in its ideal but
seldomrealizedform,tiestogethercomputeraideddesign(CAD),
computeraided manufacturing, flexible manufacturing systems
(FMS), the necessary automated storage and retrieval systems
(ASRS)andmovementofmaterials(automatedtransfermachines
orautomatedguidedvehicles[AGVs])tomakeitallwork.
8.In processcontrol systems sensors collect data; analog
devicesreaddataonaperiodicbasis;measurementsaredigitized
andtransmittedtoacomputer;dataareanalyzed;andoutputis
presentedinvarioussignals,charts,diagrams,messages,etc.
9.Manufacturingfirmsineachoftheprocessmodels:
Processfocus,yourlocalprintshop,Kinkos.

Repetitivefocus,HarleyDavidson
Productfocus,FritoLay
Masscustomization,DellComputer

10.Competitiveadvantageofmnufacturingfirmsineachofthe
processmodels:
Processfocus,differentiation,andexpertiseineachprocess
area(Kinkos)
Repetitive focus, rapidresponse, and efficiency(Harley
Davidson)
Productfocus,verylowvariablecost(FritoLay)
Mass customization, low cost, rapid response to unique
customerdemands(DellComputer)
11.StudentsmayfindFigure7.1andFigure7.8andtherelated
discussionshelpfulwiththisquestion.Servicefirmsineachofthe
processmodels:
Process: your local generalpurpose hospital. Also most
constructionfirms,suchasBechtel
Repetitive:fastfoodrestaurants
Product:ShouldiceHospital.
Mass customization: cafeterias and online stockbrokers
suchasSchwab
12.Competitiveadvantageofservicefirmsineachprocessmodel:
Processfocusforageneralpurposehospital:specialization
of expertise in each hospital discipline, xray, physical
therapy, blood lab, etc., by both the technician and
supervision.
Repetitivefocus:highqualitymodulesasinmostfastfood
(verylimitedmenu)restaurants,andlawclinicswiththe
lowcostoftheuncontesteddivorce.
Productfocus:SouthwestAirlinesandonlinestockbrokers
maybegoodexamplesoflowcostadvantage.
Masscustomization,perthetext,McDonaldsistryingthis
inalimitedway.CharlesSchwabseemstobeeffective at
thisinthefinancialservicesareas.Theyseekcompetitive
advantagevialowcostandhighcustomization.
13.Numericallycontrolledmachinerymeanstheequipmentis
computer controlled via programming languages. As an added
note, machinery with its own programmable computer is
sometimes called computer numerically controlled (CNC),
implyingthatthereiscomputermemoryatthemachine.Machines
thatarewiredtoacentralmachinearecalleddirectnumerically
controlled(DNC)machines.

88