CHAPTER 3 PROCESS STRATEGY

How many Process Strategy or Process Selection that you have learned in your class?

• 5

• 6

• 3

• 4

Which process refer to this statement?

Difficult to control , planning and manages.

• Repetitive Strategy

• Process Strategy

• Product Strategy

• Mass Customization

Which statement is TRUE for product strategy?

• Generally less skilled labor

• Also known as continuous processes, because they have very short continuous production run.

• Typically low fixed cost but high variable cost.

• Facilities are organized by tasks.

 $\frac{\text{}FC}{\text{SP - VC}}$  

This above formula refer to?

• Utilization

• Efficiency

• Break even Point

• Idleness percentage

Design capacity is express in...

• units

• dollars

• percentage

• time

If a plant has an effective capacity of 6500 and efficiency of 88% , what is the actual output?

• 5720

• 4720

• 3720

• 6720

Calculate the BEP for situation below:

Markland Manufacturing intends to increase capacity by overcoming bottleneck operation. Two vendors have presented proposals. Fixed cost for proposal A are $50,000 and for proposal B $70,000. The variable cost for A is $12.00 and for B , $10.00. The revenue generated by each unit is $20. Which one should you choose?

• 6250,7000 choose A

• 6000, 7000 choose A

• 6000, 4500 choose B

• 5250, 7000 choose B

Which of the decision making for BEP, Total cost and Profit is true?

• high BEP low Profit high Total Cost

• low BEP high Profit low Total cost

• low BEP low Profit high Total cost

• high BEP low Profit low Total cost

Which formula is TRUE?

• Profit = (SP X Q) + FC [(VC X Q)]

• Profit = (SP + Q) - FC + [(VC X Q)]

• Profit = (SP X Q) + FC - [(VC X Q)]

• Profit = (SP X Q) - (FC + (VC X Q))

Which of this statement is true

• When we sell more than BEP we will get Profit

• When we buy more than BEP we will get Profit

• When we sell less than BEP we will get Loss

• When we sell less than BEP we will get Loss