Process Choice Decisions in Firms
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Questions and Answers

What does reengineering involve in business processes?

  • Revolutionary changes for marginal gains
  • Minor adjustments for incremental improvements
  • Radical redesign to achieve minor improvements
  • Fundamental rethinking to achieve dramatic improvements (correct)

    • What is facility layout in the context of an organization?

  • The arrangement of human resources
  • The allocation of financial resources
  • The specific arrangement of physical facilities (correct)
  • The management of information systems

    • What is an advantage of product layouts?

  • Higher work-in-process inventory
  • Higher labor and equipment utilization (correct)
  • Lower output rates
  • More complicated planning and control systems

    • What is a disadvantage of product layouts?

    <p>A breakdown of one piece of equipment can cause the entire process to shut down</p> Signup and view all the answers

    What type of layout is commonly used in job shops?

    <p>Process layout</p> Signup and view all the answers

    What is the primary characteristic of a process layout?

    <p>Functional grouping of equipment or activities</p> Signup and view all the answers

    What is the benefit of higher output rates in product layouts?

    <p>Improved equipment utilization</p> Signup and view all the answers

    Why may product layouts be less flexible?

    <p>Due to the high cost of specialized equipment</p> Signup and view all the answers

    What is a consequence of a breakdown in product layouts?

    <p>The entire process may shut down</p> Signup and view all the answers

    What is a key benefit of process layouts?

    <p>Increased flexibility</p> Signup and view all the answers

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