Exam 7: Process Selection, Design, and Analysis

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Once a firm decides on the most appropriate process, they can then determine the type of goods they need to create.

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A car rental company at a major airport has 70% of its fleet of 200 cars rented each day on average. Cars are rented for an average of 4 days. How many rentals are processed each day on average?

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WIP = R x T
(0.7200) = R(4)
R = 35 cars/day.

An automobile emissions testing center has six( 6) inspectors and tests 50 autos per hour. Each inspector can inspect twelve( 12) autos per hour. If the center wants a utilization of 90%, how many inspectors are required?

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Utilization (U) = Demand Rate/[Service Rate x Number of Servers]
.90 = 50/[12 x N]
N = 4.63 so they would require 5 inspectors.

What are some management strategies to improve process designs?

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The terms, "general purpose equipment," "flexible and capable of customizing work" and "wide variety of goods or services" best relate to

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Appliances and iPods are examples of ____ goods.

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In a customer routed service, customers follow a very small number of possible and predetermined pathways through the service system.

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An accounting firm is capable of processing 20 EZ tax forms per day and the average number of forms on-hand in the office is 64 forms. The average processing time per EZ tax form is

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The average number of hotel rooms occupied per day during the month of March is 225. Rooms are booked on average for 2.5 days. On average, how many new bookings occur each day?

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Little's Law states that Throughput = Flow Time x Work-In-Process.

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What is the implied service rate per service-counter employee at an airport automobile rental counter if customer demand is 36 customers per hour, two service counter employees are on duty, and their labor utilization is 75%?

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A bottleneck is the work activity that effectively limits throughput of a process.

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Give three examples of goods or services associated with each of the process types: project, job shop, flow shop and continuous flow.

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Explain why the product-process matrix does not transfer well to services.

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Marketing Product Characteristics/Decisions for the Product-Process Matrix include all the following except

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A Department of Motor Vehicle (DMV) testing center has six (6) testers who test 50 drivers in total per day. Each tester can test twelve (10) drivers per day. What is the center's utilization?

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You were just promoted to manage the process defined by the four stages A to D below. This process could be a human resource management, marketing, accounting, finance, or engineering process and you are the manager. This is your chance to impress your boss and be promoted again. After three months on the job you realize something is not right with the process because your employees experience big pile ups of work, things take too long to be processed, the opportunity for error is increasing, and the entire process is approaching chaos. Do a process and capacity analysis of this process. The numbers in parentheses #) are the times in minutes to complete one unit of work. Demand on the process averages 30 units per hour and each unit must be worked on by all four stages. Administrative clerks) do Stage A work. The assistant managers) do Stages C and D work. The coding specialists) do Stage B work. You were just promoted to manage the process defined by the four stages A to D below. This process could be a human resource management, marketing, accounting, finance, or engineering process and you are the manager. This is your chance to impress your boss and be promoted again. After three months on the job you realize something is not right with the process because your employees experience big pile ups of work, things take too long to be processed, the opportunity for error is increasing, and the entire process is approaching chaos. Do a process and capacity analysis of this process. The numbers in parentheses #) are the times in minutes to complete one unit of work. Demand on the process averages 30 units per hour and each unit must be worked on by all four stages. Administrative clerks) do Stage A work. The assistant managers) do Stages C and D work. The coding specialists) do Stage B work.   Currently, there are 3 administrative clerks, 2 coding specialist, and 3 assistant managers on duty. Each assistant manager is cross-trained so he/she can do Stage C or Stage D work.  a. Which stage of work is the bottleneck? What is the capacity in units per hour) at the bottleneck stage? b. What should the throughput rate be set at so that the utilization at the bottleneck stage is 90%? c. Based on your throughput rate found in question b above, what will be the utilization at each of the work stages? Currently, there are 3 administrative clerks, 2 coding specialist, and 3 assistant managers on duty. Each assistant manager is cross-trained so he/she can do Stage C or Stage D work. a. Which stage of work is the bottleneck? What is the capacity in units per hour) at the bottleneck stage? b. What should the throughput rate be set at so that the utilization at the bottleneck stage is 90%? c. Based on your throughput rate found in question b above, what will be the utilization at each of the work stages?

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Which of the following is least related to Value Stream Mapping?

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What type of process would a paper mill most likely use?

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Explain how a product's life cycle has important implications in terms of process design and choice.

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