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ITM410 - TB Chapter 3

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ITM410 - TB Chapter 3

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  • July 25, 2017
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  • 2014/2015
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Operations Management: Processes and Supply Chains, 10e (Krajewski et al.)
Chapter 3 Process Strategy

1) Process decisions are strategic in nature.

Answer: TRUE

2) No process can exist without at least one product or service.

Answer: TRUE

3) Supply chain processes are simply business processes that have either external customers or
external suppliers.

Answer: TRUE

4) Processes, by their nature, are found only in the operations function of an organization.

Answer: FALSE

5) Process structure is the mix of equipment and human skills in a process.

Answer: FALSE

6) Resource flexibility determines whether resources are organized around products or
processes.

Answer: FALSE

7) Fixed automation maximizes efficiency and results in the lowest variable cost per unit
possible with high output volume.

Answer: TRUE
8) Customer involvement reflects the ways in which customers become part of the process and
the extent of their participation.

Answer: TRUE

9) Capital intensity is the ease with which employees and equipment can handle a wide variety
of products, output levels, duties, and functions.

Answer: FALSE

10) Service providers with a line process tend to move customers, materials, or information in a
3-1
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