True or False
1.ISO 14001 is a set of standards that govern how a company designs service processes.
2.No process can exist without at least one product or service.
3.Process structure is the mix of equipment and human skills in a process.
4.Resource flexibility determines whether resources are organized around products or processes.
5.Customer involvement reflects the ways in which customers become part of the process and the extent of their
participation.
6.Capital intensity is the ease with which employees and equipment can handle a wide variety of products, output
levels, duties, and functions.
7.Beginning points for manufacturing process structure decisions are the volume level, amount of customization, and
competitive priorities.
8.The degree of customization is one factor that impacts the selection of process type.
9.Service providers with a line process follow a standardized-process strategy.
10.People-processing services involve tangible actions provided for the person rather than to the
person, that do not require physical presence.
11.A moment of truth or service encounter is face-to-face interaction between the customer and a service
provider.
12.Physical presence does not occur in a manufacturing service process.
13.Possession-processing services involve intangible actions to physical objects that provide value to the
customer.
14.Active contact in services means that the customer is very much part of the creation of the service.
15.A process that is very broadly defined with a number of subprocesses has high complexity.
16.Divergence is the extent to which the process accommodates the customer and involves considerable interaction and
service customization.
17.A front office structure features high levels of customer contact where the service provider interacts directly
with the internal or external customer.
18.Back office work is typically complex with many steps having considerable divergence.
19.A continuous flow process is characterized by a high degree of job customization.
20.A job process has a relatively high level of customization.
21.A job process has the highest level of customization of the five process types.
22.Job processes typically use a line flow through the operations.
23.Job processes generally have higher volumes than batch processes.
24.In a line process, variety is possible by careful control of the addition of standard options to the main product
or service.
25.Petroleum refineries typically use continuous flow processes.
26.Continuous flow processes have a high level of customization.
27.The product-process matrix brings together the elements of volume, process, and quality.
28.A make-to-stock strategy involves holding items in stock for immediate delivery and is feasible for standardized
products with high volumes and reasonably accurate forecasts.
29.Mass production is a production strategy that uses batch processes in a make-to-stock strategy.
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