Process Choice Decisions in Firms
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Questions and Answers

Which is a key advantage of a product layout mentioned in the text?

  • Low equipment utilization
  • Increased materials handling
  • High job satisfaction for employees
  • Simple planning and control systems (correct)

What do we define as reengineering based on the provided text?

  • A fundamental rethinking of physical facilities
  • A radical redesign of business processes (correct)
  • Slight improvements in measures of performance
  • A sequential optimization of operational tasks

What is a notable disadvantage of a process layout according to the text?

  • High flexibility in operations
  • High job satisfaction for employees
  • Low labor utilization
  • Requires costly specialized equipment (correct)

Which of the following is a characteristic of a process layout?

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

Which layout pattern is less flexible and may need major changes upon product design alteration?

<p>Product layout (B)</p> Signup and view all the answers

What concept refers to the strategic and systematic communication network within an organization?

<p>Value stream (A)</p> Signup and view all the answers

What problem can arise in a product layout if there is a breakdown of equipment?

<p>Entire process shutdown (A)</p> Signup and view all the answers

In what way is reengineering linked to modern business performance measures?

<p>Aims for dramatic improvements in key performance areas (C)</p> Signup and view all the answers

What is a distinguishing advantage of a product layout according to the text?

<p>High output rates (D)</p> Signup and view all the answers

Which layout exhibits characteristics of handling varied specialized orders?

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

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