Full Name: Vũ Thị Hoàng Diệu

ID: 20198064

INDIVIDUAL ASSIGNMENT 3

CHAPTER 7: PROCESS STRATEGY

3. What is service blueprinting?
Service blueprinting is process analysis technique that focuses on the customer and
the provide interaction with the customer.
Service blueprinting helps evaluate the impact of customer interaction with the
process.
Service blueprinting includes three level:
 The first level: the activities are under the control of the customer
 The second level: are activities of the service provider interacting with the
customer.
 The third level: includes those activities that are performed away from and not
immediately visible to the customer.
10. Identify the competitive advantage of each of the four firms identified in Discussion
Question 9.
Process Focus: High Variety, Low Volume
 Facilities are organized around specific activities or processes.
 General purpose equipment and skilled personnel.
 High degree of product flexibility.
 Typically high costs and low equipment utilization.
 Product flows may vary considerably making planning and scheduling a challenge.
Repetitive Focus: Changes in Modules, Repetitive Process
 Facilities often organized as assembly lines.
 Characterized by modules with parts and assemblies made previously.
 Modules may be combined for many output options.
 Less flexibility than process-focused facilities but more efficient.
Product Focus: Changes in Attributes, High Volume
 Facilities are organized by product.
 High volume but low variety of products.
 Long, continuous production runs enable efficient processes.
 Typically high fixed cost but low variable cost.
 Generally less skilled labor.
Mass Customization: High Variety, High Volume
  Imaginative product design.
 Flexible process design.
 Tightly controlled inventory management.
 Tight schedules.
 Responsive partners in the supply chain.

7.11 Nagle Electric, Inc., of Lincoln, Nebraska, must replace a robotic Mig welder and is
evaluating two alternatives. Machine A has a fixed cost for the first year of $75,000 and a
variable cost of $16, with a capacity of 18,000 units per year. Machine B is slower, with a
speed of one-half of A’s, but the fixed cost is only $60,000. The variable cost will be higher,
at $20 per unit. Each unit is expected to sell for $28.
Machine A: FC = $75,000; VC = $16; C = 18,000 units per year
Machine B: FC = $60,000; VC = $20; Price = $28/ unit
a) What is the crossover point (point of indifference) in units for the two machines?
=> To determine the volume at V 1, we set the cost of Machine A equal to the cost of Machine
B. V 1 is the unknown volume:
75,000+16 ×V 1 =60,000+20 ×V 1
=> V 1=3,750

b) What is the range of units for which machine A is preferable?

=> The range of units for which machine A is preferable is above 3,750 units. But the
capacity of machine A is 18,000 so the range of units is from 3,750 to 18,000 units.
c) What is the range of units for which machine B is preferable?
=> The range of units for which machine B is preferable is below 3,750 so the range of units
is from 0 to 3,750 units.