seldom realized form, ties together computer-aided design (CAD),
computer-aided manufacturing, flexible manufacturing systems
(FMS), the necessary automated storage and retrieval systems
8. In process-control systems sensors collect data; analog
devices read data on a periodic basis; measurements are digitized
and transmitted to a computer; data are analyzed; and output is
9. Manufacturing firms in each of the process models:
CHAPTER 7 PRO CESS STRA T EG Y 95
10. Competitive advantage of manufacturing firms in each of
the process models:
◼ Process focus, differentiation, and expertise in each process
area (Kinko’s)
11. Students may find Figure 7.1 and Figure 7.8 and the related
discussions helpful with this question. Service firms in each of the
process models:
◼ Process: Your local general-purpose hospital; also most
speed of data entry contributing to productivity. For instance, costs are
15. Technological advances include numeric control, process
control, vision systems, robots, automated storage and retrieval
systems, automated guided vehicles, flexible manufacturing
17. CAD data generates design data, but can also generate
instructions for NC machines. If the NC machines are connected
(integrated) with other NC machines and material handling
96 CHAPTER 7 PROCES S ST R AT E G Y
contributor to limited mental development.) The violence reaped
upon animals in the food chain is not confined to what homo sapi-
1. Suppose Kleber Enterprises wants to lower the
point of indifference between Software A and Soft-
ware B to 2,000 units. What would the Fixed costs
2. Examine the graph. If the expected volume is
1,500 reports, which process should be used?
Software A
3. Examine the graph. If the expected volume is
15,000 reports, which process should be used?
Software C
4. As the fixed costs for developing Software B drop, what
happens to the graph?
The cost line for B drops and the area between the
7.1 (a) A fun topic, as students will add a lot of waiting. Flow
is, of course, dependent upon the school but usually
includes the following:
7.2
(b) Flow diagram for a car wash:
98 CHAPTER 7 PROCES S ST R AT E G Y
7.9 (a) Values to aid in plotting the graph below:
Units
Stan’s Costs
Salt Lake Supply
Costs
0
15,000
0
10,000
18,200 + 15,000
40,000
Units
At 0 Units
(arbitrary
number)
(A)
Y = 800 + 1.10x
800
$5,200
Refurbish
(B)
Y = 1,100 + 0.70x
1,100
$3,900
Modify
(C)
1,800
$3,400
New
(C)
1,800
$3,400
New
7.11 Expected rooms rented: 50 365 = 18,250.
Current: Fixed cost = $61,000
Variable cost = $12.50
61,000 + (12.50)x = $25,000 + (18.50)x
36,000 = 6x
6,000 = x = crossover point in room
nights
Since Tim expects to rent 18,250 rooms, he should not
7.12 CAD software decision.
(5)($3,000) + $200x = (6)($2,000) + $240x
Since the projected volume of 80 is above the crossover
point, he should rent the HP software.
7.13 Using the value stream map, Figure 7.6, as a starting point,
analyze the opportunity for improvement and develop an improved
process.
Remove inventory, improve throughput by reducing setup,
100 CHAPTER 7 PRO C ESS ST R ATEG Y
2
on page 100 for an example of how to document information
requirements.
1. The major auto companies are not in the custom design busi-
ness, and ambulance volume is small compared with the
“module.” Then the employees become experienced in those
modules and the customized modules can be delivered to the
line as needed.
labor standards, they are set for each module and assembly
area to ensure that the work at each station can be accom-
Copyright ©2014 Pearson Education, Inc.
higher profit margins. However, since the demand for the
“fixed” design is growing, expansion into this area, with its
repetitive-oriented layout and procedures (see Table 7.2 and
Figure 7.1 in text), may be warranted.
CHAPTER 7 PRO CESS STRA T EG Y 95
10. Competitive advantage of manufacturing firms in each of
the process models:
◼ Process focus, differentiation, and expertise in each process
area (Kinko’s)
11. Students may find Figure 7.1 and Figure 7.8 and the related
discussions helpful with this question. Service firms in each of the
process models:
◼ Process: Your local general-purpose hospital; also most
speed of data entry contributing to productivity. For instance, costs are
15. Technological advances include numeric control, process
control, vision systems, robots, automated storage and retrieval
systems, automated guided vehicles, flexible manufacturing
17. CAD data generates design data, but can also generate
instructions for NC machines. If the NC machines are connected
(integrated) with other NC machines and material handling
96 CHAPTER 7 PROCES S ST R AT E G Y
contributor to limited mental development.) The violence reaped
upon animals in the food chain is not confined to what homo sapi-
1. Suppose Kleber Enterprises wants to lower the
point of indifference between Software A and Soft-
ware B to 2,000 units. What would the Fixed costs
2. Examine the graph. If the expected volume is
1,500 reports, which process should be used?
Software A
3. Examine the graph. If the expected volume is
15,000 reports, which process should be used?
Software C
4. As the fixed costs for developing Software B drop, what
happens to the graph?
The cost line for B drops and the area between the
7.1 (a) A fun topic, as students will add a lot of waiting. Flow
is, of course, dependent upon the school but usually
includes the following:
7.2
(b) Flow diagram for a car wash:
98 CHAPTER 7 PROCES S ST R AT E G Y
7.9 (a) Values to aid in plotting the graph below:
Units
Stan’s Costs
Salt Lake Supply
Costs
0
15,000
0
10,000
18,200 + 15,000
40,000
Units
At 0 Units
(arbitrary
number)
(A)
Y = 800 + 1.10x
800
$5,200
Refurbish
(B)
Y = 1,100 + 0.70x
1,100
$3,900
Modify
7.11 Expected rooms rented: 50 365 = 18,250.
Current: Fixed cost = $61,000
Variable cost = $12.50
61,000 + (12.50)x = $25,000 + (18.50)x
36,000 = 6x
6,000 = x = crossover point in room
nights
Since Tim expects to rent 18,250 rooms, he should not
7.12 CAD software decision.
(5)($3,000) + $200x = (6)($2,000) + $240x
Since the projected volume of 80 is above the crossover
point, he should rent the HP software.
7.13 Using the value stream map, Figure 7.6, as a starting point,
analyze the opportunity for improvement and develop an improved
process.
Remove inventory, improve throughput by reducing setup,
100 CHAPTER 7 PRO C ESS ST R ATEG Y
2
on page 100 for an example of how to document information
requirements.
1. The major auto companies are not in the custom design busi-
ness, and ambulance volume is small compared with the
“module.” Then the employees become experienced in those
modules and the customized modules can be delivered to the
line as needed.
labor standards, they are set for each module and assembly
area to ensure that the work at each station can be accom-
Copyright ©2014 Pearson Education, Inc.
higher profit margins. However, since the demand for the
“fixed” design is growing, expansion into this area, with its
repetitive-oriented layout and procedures (see Table 7.2 and
Figure 7.1 in text), may be warranted.