Chapter 4 |Part Two Managing Processes

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Chapter
4 |Part Two Managing Processes

Process Strategy | |

TRUE/FALSE

1. Process decisions are strategic in nature.
Answer: True
Reference: Introduction
Difficulty: Moderate
Keywords: process, strategic

2. ISO 14001 is a set of standards that govern how a company designs service processes. Answer: False
Reference: Process Strategy
Difficulty: Easy
Keywords: ISO, 14001, service, design, process

3. No process can exist without at least one product or service. Answer: True
Reference: Process Strategy
Difficulty: Easy
Keywords: process, product, service

4. Process structure is the mix of equipment and human skills in a process. Answer: False
Reference: Major Process Decisions
Difficulty: Moderate
Keywords: process, structure, equipment, human

5. Resource flexibility determines whether resources are organized around products or processes. Answer: False
Reference: Major Process Decisions
Difficulty: Moderate
Keywords: resource, flexibility, products, processes

6. Customer involvement reflects the ways in which customers become part of the process and the extent of their participation. Answer: True
Reference: Major Process Decisions
Difficulty: Moderate
Keywords: contact, customer, participation, involvement

7. Capital intensity is the ease with which employees and equipment can handle a wide variety of products, output levels, duties, and functions. Answer: False
Reference: Major Process Decisions
Difficulty: Moderate
Keywords: capital, intensity, equipment

8. Beginning points for manufacturing process structure decisions are the volume level, amount of customization, and competitive priorities. Answer: True
Reference: Process Structure in Manufacturing
Difficulty: Easy
Keywords: process, structure, manufacturing, volume, customization

9. The degree of customization is one factor that impacts the selection of process type. Answer: True
Reference: Major Process Decisions
Difficulty: Easy
Keywords: process, selection, customization

10. Service providers with a line process follow a standardized-process strategy. Answer: True
Reference: Process Structure in Services
Difficulty: Moderate
Keywords: line, standard, service, process

11. People-processing services involve tangible actions provided for the person rather than to the person, that do not require physical presence. Answer: False
Reference: Process Structure in Services
Difficulty: Moderate
Keywords: people, processing, physical, presence

12. A moment of truth or service encounter is face-to-face interaction between the customer and a service provider. Answer: True
Reference: Process Structure in Services
Difficulty: Moderate
Keywords: moment, truth, face, customer, provider

13. Physical presence does not occur in a manufacturing service process. Answer: False
Reference: Process Structure in Services
Difficulty: Moderate
Keywords: physical, presence, manufacturing, service

14. Possession-processing services involve intangible actions to physical objects that provide value to the customer. Answer: False
Reference: Process Structure in Services
Difficulty: Moderate
Keywords: possession, processing, tangible

15. Active contact in services means that the customer is very much part of the creation of the service. Answer: True
Reference: Process Structure in Services
Difficulty: Easy
Keywords: active, contact, service

16. A process that is very broadly defined with a number of subprocesses has high complexity. Answer: True
Reference: Process Structure in Services
Difficulty: Easy...
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