Part 1

1. What is the difference between maximum capacity and best operating capacity (effective capacity)?

2. Explain the concept of economies of scale How can a university attain economies of scale? What impact might this have on quality and flexibility?

3. Which would require a larger amount of excess capacity, a hospital emergency room or a doctor's office? Why?

4. What capacity problems are encountered when a new drug is introduced to the market?

5. List some practical limits to economies of scale. In other words, when should a plant stop growing?

Part 2

1. What is meant by a process? Describe its important features.2.What is a customer order decoupling point? Why is it important?3.What is the product process matrix? What does it organize? Why is it useful?

Part 3

1. What is the service package of your college or university?2.Can/should a manufacturer have a service guarantee in addition to a product guarantee?3.At first glance, asking customers to provide their own service in the self-service approach may not seem very consumer friendly. What are some of the characteristics of self-service operations that have led to their acceptance and signiicant popularity?