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

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

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

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

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

    Which layout exhibits characteristics of handling varied specialized orders?

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

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