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1. Borges Machine Shop, Inc., has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle. Owner Luis Borges hopes the contract will be extended and the volume increased next year. Borges has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow:

Annual contracted units

General-Purpose Equipment (GPE) 200,000

Flexible Manufacturing System (FMS) 200,000

Dedicated Machine (DM) 200,000

Annual fixed cost

100,000

250,000

525,000

$15.00

$14.00

Per unit variable cost

$13.75

Based on the cost, the process that is best suited for the current contracted volume is FMS The cheapest = FMS = 250000+14(200000) = 3050000 GPE = 100000+15(200000) = 3100000 DM = 525000+13.75(200000) = 3275000 The option GPE is best when the contracted volume is below 25000 units The option FMS is best when the contracted volume is between 25000 and 250000 units The option DM is best when the contracted volume is over 250000 units 3. Low-volume, high-variety production is best suited for which of the following process strategies? A. mass customization B. process focus C. repetitive focus D. product focus 4. What is the ability to respond with little penalty in time, cost, or customer value? A. flexibility B. mass customization C. postponement D. repetitive process

5. For a shoe shine process, the following functions have been identified: Function Function Description A Clean / Brush Shoes B Obtain Polish C Open and Apply Polish D Buff E Inspect F Collect Payment

If one was to prepare a process chart for the above identified functions then: Select the functions that will be represented as an operation using a circle in the process chart (check all that apply): A. Buff B. Obtain Polish C. Collect Payment D. Clean / Brush Shoes E. Open and Apply Polish F. Inspect

Function "Obtain Polish" in the process chart will be represented by Transportation (arrow) Function "Inspect" in the process chart will be represented by Inspection (square) . 6. What is a drawing of the movement of material, product or people? A. RFID B. flowchart C. process chart D. AIS 7. Which of the quadrants in the service process matrix has low labor intensity and low customization? A. professional service B. service factory C. mass service D. service shop 8. In many applications, human quality inspectors can be replaced effectively by A. FMS. B. automated storage and retrieval systems. C. vision systems. D. RFID tags. 9. Which of the following is NOT a production technology that enhances production and productivity? A. service blueprinting B. automatic identification systems C. process control D. vision systems 10. Which of the following is NOT an example of technology's impact on the financial services industry? A. Internet stock trading B. debit cards C. RFID D. electronic funds transfer 11. Which of the following statements is NOT true regarding process redesign? A. Process redesign also focuses on those activities that cross functional lines.

B. Effective process redesign works only if the basic process and its objectives are reexamined. C. Process redesign is also called process reengineering. D. Process redesign is also called process reinvention. 12. A fast food restaurant is an example of A. low customization and low degree of labor. B. low customization and high degree of labor. C. high customization and low degree of labor. D. high customization and high degree of labor....