Question 1

One implication of increased utilization in a process is that:

Accepted Answer

A) Process cost typically will go up. 
B) Waiting time typically will go up. 
C) Variance typically will be reduced. 
D) All of these. 
A) Process cost typically will go up. 
B) Waiting time typically will go up. 
C) Variance typically will be reduced. 
D) All of these. B

Question 2

The following sequence shows four operations for a computer chip assembly process and the effective capacity of each. Which step is the bottleneck? Step 1: 500 chips/hour
Step 2: 250 chips/hour
Step 3: 200 chips/hour
Step 4: 550 chips/hour

Accepted Answer

A) Step 1 
B) Step 2 
C) Step 3 
D) Step 4 
A) Step 1 
B) Step 2 
C) Step 3 
D) Step 4 C

Question 3

Which process activity is due to other factors (e.g., insufficient operating capacity, lack of material, equipment breakdowns)?

Accepted Answer

A) Delay 
B) Operation 
C) Storage 
D) Transportation 
E) Inspection 
A) Delay 
B) Operation 
C) Storage 
D) Transportation 
E) Inspection A

Question 4

A manager is currently unhappy with the capabilities of a particular process and wants to improve its capabilities. To accomplish this, the manager needs to focus on the process:

Accepted Answer

A) Inputs, outputs, and flows. 
B) Activities. 
C) Management metrics. 
D) Structure. 
A) Inputs, outputs, and flows. 
B) Activities. 
C) Management metrics. 
D) Structure.

Question 5

Under Juran's Law, whenever a problem occurs, what percentage of the time is the problem the result of a system/process error?

Accepted Answer

A) 15 percent 
B) 50 percent 
C) 85 percent 
D) 100 percent 
A) 15 percent 
B) 50 percent 
C) 85 percent 
D) 100 percent

Question 6

An example of a short-term capacity decision is:

Accepted Answer

A) Adding specialized labor. 
B) Installing new equipment. 
C) Adding new facilities. 
D) Adding low-skilled labor. 
A) Adding specialized labor. 
B) Installing new equipment. 
C) Adding new facilities. 
D) Adding low-skilled labor.

Question 7

Which of the following statements about economies of scale is NOT true?

Accepted Answer

A) One reason economies of scale occur is because fixed costs can be spread over more units of production as output increases. 
B) One reason economies of scale occur is because employees become more efficient as volume increases. 
C) Economies of scale refers to the fact that as volume increases, total cost of production decreases. 
D) Economies of scale may not exist at all levels of production. 
A) One reason economies of scale occur is because fixed costs can be spread over more units of production as output increases. 
B) One reason economies of scale occur is because employees become more efficient as volume increases. 
C) Economies of scale refers to the fact that as volume increases, total cost of production decreases. 
D) Economies of scale may not exist at all levels of production.

Question 8

Adam Smith described his company's process as follows: "Under ideal conditions we can produce 10,000 units a day. However, our normal production is 6,000 units a day.Today, we actually produced 8,000 units." Which of the following is true?

Accepted Answer

A) Utilization is 60 percent of maximum capacity. 
B) Yield is 133 percent of effective capacity. 
C) Utilization was 133 percent of effective capacity. 
D) All of these are true. 
A) Utilization is 60 percent of maximum capacity. 
B) Yield is 133 percent of effective capacity. 
C) Utilization was 133 percent of effective capacity. 
D) All of these are true.

Question 9

Little's Law suggests that the key to increased throughput is:

Accepted Answer

A) Shorter flow times. 
B) Fewer defects. 
C) Eliminating waste. 
D) Increased inspection. 
A) Shorter flow times. 
B) Fewer defects. 
C) Eliminating waste. 
D) Increased inspection.

Question 10

If a company can eliminate all sources of variance in a process:

Accepted Answer

A) It will be able to operate at maximum capacity at all times. 
B) There will be no constraints in the process. 
C) Continuous improvement will not be necessary. 
D) None of these are true. 
A) It will be able to operate at maximum capacity at all times. 
B) There will be no constraints in the process. 
C) Continuous improvement will not be necessary. 
D) None of these are true.

Question 11

Process thinking causes managers to address critical process elements, including:

Accepted Answer

A) Activities. 
B) Inputs and outputs. 
C) Flows, structure, resources, and metrics. 
D) All of these. 
A) Activities. 
B) Inputs and outputs. 
C) Flows, structure, resources, and metrics. 
D) All of these.

Question 12

Make/buy/subcontract is typically considered at what time horizon when doing capacity planning?

Accepted Answer

A) Short-term 
B) Medium-term 
C) Long-term 
D) It is not part of the capacity planning process. 
A) Short-term 
B) Medium-term 
C) Long-term 
D) It is not part of the capacity planning process.

Question 13

Which of the following actions will NOT increase output?

Accepted Answer

A) Increasing capacity through physical additions. 
B) Outsourcing. 
C) Managing the flow of work into the system. 
D) Changing the processes to eliminate unnecessary steps. 
A) Increasing capacity through physical additions. 
B) Outsourcing. 
C) Managing the flow of work into the system. 
D) Changing the processes to eliminate unnecessary steps.

Question 14

A short-term, highly focused effort for improving a process is known as a:

Accepted Answer

A) Jidoka Event. 
B) Kaizen Event. 
C) Chaebol Event. 
D) Poka-yoke Event. 
E) Enchilada Event. 
A) Jidoka Event. 
B) Kaizen Event. 
C) Chaebol Event. 
D) Poka-yoke Event. 
E) Enchilada Event.

Question 15

Which of the following forms of capacity can only be determined AFTER the completion of activities?

Accepted Answer

A) Demonstrated capacity 
B) Maximum capacity 
C) Design capacity 
D) Effective capacity 
A) Demonstrated capacity 
B) Maximum capacity 
C) Design capacity 
D) Effective capacity

Question 16

A bottleneck activity in a process is generally the activity with:

Accepted Answer

A) The smallest number of resources devoted to it. 
B) The least capacity. 
C) No delays in front of it. 
D) The highest cost. 
A) The smallest number of resources devoted to it. 
B) The least capacity. 
C) No delays in front of it. 
D) The highest cost.

Question 17

Most processes involve two basic types of flows:

Accepted Answer

A) Information flows and physical flows. 
B) Product flows and decision flows. 
C) Information flows and operator flows. 
D) Physical flows and documentation flows. 
A) Information flows and physical flows. 
B) Product flows and decision flows. 
C) Information flows and operator flows. 
D) Physical flows and documentation flows.

Question 18

Government regulations belong to which of the following elements of a process?

Accepted Answer

A) Activities 
B) Inputs/outputs/feedback 
C) Process structure 
D) Management policies 
A) Activities 
B) Inputs/outputs/feedback 
C) Process structure 
D) Management policies

Question 19

Kaizen Events are most appropriate for which type of operations problem?

Accepted Answer

A) Customer-based 
B) Metrics-based 
C) Process-based 
D) Product-based 
A) Customer-based 
B) Metrics-based 
C) Process-based 
D) Product-based

Question 20

You are given the following information. Which of these statements can you support with this information?

Accepted Answer

A) More capacity needs to be added in the short term to improve performance in the system. 
B) We have to look at the rate at which jobs are being input into the shop. 
C) Our workforce is not working hard enough. 
D) We need to further investigate whether the problem is in input or capacity. 
A) More capacity needs to be added in the short term to improve performance in the system. 
B) We have to look at the rate at which jobs are being input into the shop. 
C) Our workforce is not working hard enough. 
D) We need to further investigate whether the problem is in input or capacity.

One implication of increased utilization in a process is that:

The following sequence shows four operations for a computer chip assembly process and the effective capacity of each. Which step is the bottleneck? Step 1: 500 chips/hour Step 2: 250 chips/hour Step 3: 200 chips/hour Step 4: 550 chips/hour

Which process activity is due to other factors (e.g., insufficient operating capacity, lack of material, equipment breakdowns)?

A manager is currently unhappy with the capabilities of a particular process and wants to improve its capabilities. To accomplish this, the manager needs to focus on the process:

Under Juran's Law, whenever a problem occurs, what percentage of the time is the problem the result of a system/process error?

An example of a short-term capacity decision is:

Which of the following statements about economies of scale is NOT true?

Adam Smith described his company's process as follows: "Under ideal conditions we can produce 10,000 units a day. However, our normal production is 6,000 units a day.Today, we actually produced 8,000 units." Which of the following is true?

Little's Law suggests that the key to increased throughput is:

If a company can eliminate all sources of variance in a process:

Process thinking causes managers to address critical process elements, including:

Make/buy/subcontract is typically considered at what time horizon when doing capacity planning?

Which of the following actions will NOT increase output?

A short-term, highly focused effort for improving a process is known as a:

Which of the following forms of capacity can only be determined AFTER the completion of activities?

A bottleneck activity in a process is generally the activity with:

Most processes involve two basic types of flows:

Government regulations belong to which of the following elements of a process?

Kaizen Events are most appropriate for which type of operations problem?

You are given the following information. Which of these statements can you support with this information?

Introduction to Managing Operations Across the Supply Chain

Operations and Supply Chain Strategy

Extension: Process Mapping and Analysis

Productprocess Innovation

Manufacturing and Service Process Structures

Managing Quality

Extension: Quality Improvement Tools

Managing Inventories

Lean Systems

Customer Service Management

Sourcing and Supply Management

Logistics Management

Demand Planning: Forecasting and Demand Management

Sales and Operations Planning

Materials and Resource Requirements Planning

Project Management

Extension: Advanced Methods for Project Scheduling

Sustainable Operations Managementpreparing for the Future

Filters

Exam 3: Managing Processes and Capacity

One implication of increased utilization in a process is that:

The following sequence shows four operations for a computer chip assembly process and the effective capacity of each. Which step is the bottleneck? Step 1: 500 chips/hour Step 2: 250 chips/hour Step 3: 200 chips/hour Step 4: 550 chips/hour

Which process activity is due to other factors (e.g., insufficient operating capacity, lack of material, equipment breakdowns)?

A manager is currently unhappy with the capabilities of a particular process and wants to improve its capabilities. To accomplish this, the manager needs to focus on the process:

Under Juran's Law, whenever a problem occurs, what percentage of the time is the problem the result of a system/process error?

An example of a short-term capacity decision is:

Which of the following statements about economies of scale is NOT true?

Adam Smith described his company's process as follows: "Under ideal conditions we can produce 10,000 units a day. However, our normal production is 6,000 units a day.Today, we actually produced 8,000 units." Which of the following is true?

Little's Law suggests that the key to increased throughput is:

If a company can eliminate all sources of variance in a process:

Process thinking causes managers to address critical process elements, including:

Make/buy/subcontract is typically considered at what time horizon when doing capacity planning?

Which of the following actions will NOT increase output?

A short-term, highly focused effort for improving a process is known as a:

Which of the following forms of capacity can only be determined AFTER the completion of activities?

A bottleneck activity in a process is generally the activity with:

Most processes involve two basic types of flows:

Government regulations belong to which of the following elements of a process?

Kaizen Events are most appropriate for which type of operations problem?

You are given the following information. Which of these statements can you support with this information?

Introduction to Managing Operations Across the Supply Chain

Operations and Supply Chain Strategy

Extension: Process Mapping and Analysis

Productprocess Innovation

Manufacturing and Service Process Structures

Managing Quality

Extension: Quality Improvement Tools

Managing Inventories

Lean Systems

Customer Service Management

Sourcing and Supply Management

Logistics Management

Demand Planning: Forecasting and Demand Management

Sales and Operations Planning

Materials and Resource Requirements Planning

Project Management

Extension: Advanced Methods for Project Scheduling

Sustainable Operations Managementpreparing for the Future

Filters