Deck 4: Process Design and Capacity Management

Question 1

Which order of processes is correct for ascending order of output volume?

A) Batch $\rightarrow$ Job Shop $\rightarrow$ Assembly Line $\rightarrow$ Continuous
B) Continuous $\rightarrow$ Assembly Line $\rightarrow$ Batch $\rightarrow$ Job Shop
C) Assembly Line $\rightarrow$ Batch $\rightarrow$ Job Shop $\rightarrow$ Continuous
D) Job Shop $\rightarrow$ Batch $\rightarrow$ Assembly Line $\rightarrow$ Continuous

Answer 1

Job Shop $\rightarrow$ Batch $\rightarrow$ Assembly Line $\rightarrow$ Continuous

Question 2

Which of the following is most likely an example of a job shop?

A) A car assembly plant
B) A custom furniture manufacturer
C) An oil refinery
D) A large bakery

Answer 2

B

Question 3

A batch process requires ____________ flexibility versus a job shop.

A) More
B) Less
C) About the same
D) Cannot be determined

Answer 3

B

Question 4

Which process type is best suited for a company offering customized products and/or services?

A) Batch
B) Job Shop
C) Assembly Line
D) Continuous

Question 5

A company that produces bird houses is considering adding an ability for customers to customize the products that they order. The company should anticipate a(n) _________.

A) Increase in production volume
B) Decrease in production volume
C) Neither an increase nor decrease in production volume
D) It is impossible to determine how production volume will be affected by this change

Question 6

Which order of processes is correct for ascending order of product variety?

A) Job Shop $\rightarrow$ Batch $\rightarrow$ Assembly Line $\rightarrow$ Continuous
B) Batch $\rightarrow$ Assembly Line $\rightarrow$ Continuous $\rightarrow$ Job Shop
C) Continuous $\rightarrow$ Assembly Line $\rightarrow$ Batch $\rightarrow$ Job Shop
D) Continuous $\rightarrow$ Job Shop $\rightarrow$ Batch $\rightarrow$ Assembly Line

Question 7

A project process is an example of which type of process?

A) Batch
B) Job Shop
C) Assembly Line
D) Continuous

Question 8

Select the process type that is mismatched with the corresponding process characteristic.

A) Job shop $\rightarrow$ Low equipment flexibility
B) Batch $\rightarrow$ High product variety
C) Continuous $\rightarrow$ Very high output volume
D) Assembly line $\rightarrow$ Low/medium product variety

Question 9

A job shop will typically hold ________ raw materials in inventory.

A) Large amounts of
B) Very large amounts of
C) Small amounts of
D) Highly variable amounts of

Question 10

Desired production volume and variety of goods/services desired are, generally, the guiding criteria for determining?

A) A match of supplier to manufacturer
B) A match of production process to product
C) A match of transportation provider to customer
D) A match of production output to customer

Question 11

The textbook notes that which of the following would likely be considered to be a batch process?

A) Custom furniture manufacturer
B) Building an office building
C) Beauty salon
D) LASIK eye surgery

Question 12

A job shop would be most likely to hold which type of inventory?

A) Finished goods
B) Component parts
C) Raw materials
D) Work-in-process

Question 13

A job shop is organized in which of the following ways?

A) Processes arranged in sequence according to processing steps
B) Processes arranged in a circular fashion to allow processes to be repeated as needed
C) Production area divided across multiple facilities often located in different countries/regions
D) Production area divided into departments

Question 14

Job shop projects involve which of the following combinations of product type and process output?

A) Highly customized products and high process output
B) Limited customization of products and high process output
C) Highly customized products and very low process output
D) Extremely varied products and high process output.

Question 15

Increases in process output are typically accompanied by?

A) Increased automation and decreased standardization
B) Decreased automation and increased standardization
C) Increased automation and standardization
D) Decreased automation and standardization

Question 16

An assembly line is characterized by which of the following?

A) Low volume, high flexibility
B) Low volume, limited flexibility
C) High volume, limited flexibility
D) High volume, high flexibility

Question 17

The level of work in a job shop is __________?

A) Varied, based on processing requirements
B) Continuous across all departments
C) Consistent from department to department
D) Consistent for each product that is produced

Question 18

An increased product variety offering is associated with all of the following except?

A) Reduced production speed
B) Decreased need for special-purpose equipment
C) Reduced production output levels
D) Increased need for employees with greater skill sets

Question 19

Organizations generally match production processes to the product based on which two criteria?

A) Cost per unit and customer complaints
B) Product quality and customer demand
C) Product throughput time and expected delivery time to customer
D) Production volume and variety of goods/services

Question 20

Select the process type that is mismatched with the corresponding process characteristic.

A) Batch $\rightarrow$ High product variety
B) Continuous $\rightarrow$ Low employee skills
C) Job shop $\rightarrow$ Very low output volume
D) Assembly line $\rightarrow$ High equipment flexibility

Question 21

Wendy's and Burger King fast-food restaurants rely heavily on what type of process?

A) Make-to-Order
B) Make-to-Stock
C) Assemble-to-Stock
D) Assemble-to-Order

Question 22

A make-to-order process would be characterized by all of the following except?

A) Long time to product completion
B) High degree of customization available
C) High cost per unit
D) High volume

Question 23

Which of the following companies would be most associated with the mass customization concept?

A) Schneider National
B) Starbucks Coffee
C) Walmart
D) Sears

Question 24

Dell's production process is most closely associated with which type of process?

A) Assemble-to-Order
B) Make-to-Order
C) Make-to-Stock
D) Assemble-to-Stock

Question 25

A process where product is created in anticipation of customer demand would be referred to as?

A) Assemble-to-Order
B) Make-to-Stock
C) Make-to-Order
D) Assemble-to-Stock

Question 26

A customer purchasing a box of cereal at a grocery store is most likely purchasing a product that is a result of which type of process?

A) Assemble-to-Order
B) Make-to-Order
C) Make-to-Stock
D) Assemble-to-Stock

Question 27

Make-to-stock processes are characterized by all of the following except?

A) Low unit cost
B) High degree of customization available
C) Minimal order lead time
D) High volume

Question 28

Which of the following restaurant examples would be most closely identified with an assembly line process?

A) High-end, gourmet cafe
B) Fast food
C) Custom sandwich shop
D) Buffet

Question 29

Postponement involves?

A) Delay of shipment until payment is received
B) Delay of production until materials are available
C) Delay of assembly until capacity is available
D) Delay of customization of mass-produced product

Question 30

A customer desiring a highly-customized product will mostly rely on which of the following types of processes?

A) Make-to-Order
B) Make-to-Stock
C) Assemble-to-Order
D) Assemble-to-Stock

Question 31

A process that produces in high volume with little flexibility is likely a(n)?

A) Assembly line
B) Continuous process
C) Batch process
D) Job shop

Question 32

Which of the following is an incorrect match?

A) Continuous process $\rightarrow$ Beer bottling
B) Assembly line $\rightarrow$ Auto repair shop
C) Job shop $\rightarrow$ Machine shop
D) Batch $\rightarrow$ Paint manufacturing

Question 33

A diagram showing the sequence of steps involved in a process is a?

A) Process visualization
B) Process illustration
C) Process flowchart
D) Process diagram

Question 34

As process customization increases, we expect that volume will?

A) Increase
B) Decrease
C) Stay the same
D) Impossible to know how volume will change in response to increased customization

Question 35

A process via which a specialty product is made based upon customer specifications would most likely be a ________ process?

A) Make-to-Stock
B) Make-to-Order
C) Assemble-to-Order
D) Assemble-to-Stock

Question 36

Mass customization is a concept that is closely related to which type of process?

A) Make-to-Order
B) Make-to-Stock
C) Assemble-to-Order
D) Assemble-to-Stock

Question 37

Which of the following concepts allows for the customization of products that are produced in high volume?

A) Mass differentiation
B) Mass customization
C) Mass assembly
D) Mass processing

Question 38

A manufacturer opting to provide customers additional customization options is likely to give up some amount of which of the following?

A) Product profit
B) Product quality
C) Process volume
D) Process complexity

Question 39

Which type of inventory would be more likely to be held in assembly line process versus in a job shop process?

A) Work in process
B) Raw materials
C) Perishable goods
D) Finished goods

Question 40

A customer walks into a pizza restaurant and orders a pizza to meet her exact requirements. This type of pizza restaurant is operating (at least partially) as a _________ process.

A) Assemble-to-Order
B) Make-to-Stock
C) Make-to-Order
D) Assemble-to-Stock

Question 41

Effects of too much capacity include all of the following except?

A) High fixed costs
B) Lower profits
C) Higher sales totals
D) Higher unit costs

Question 42

A company has estimated its effective capacity is 1,000 units produced per day. If the company wishes to maintain a capacity utilization of at least 95%, what must its actual output be?

A) 1,000 units per day
B) 1,150 units per day
C) 950 units per day
D) Impossible to determine from the information provided

Question 43

The design of performance measures for processes should consider all of the following except?

A) Tie performance to firm goals
B) Tie performance to customer requirements
C) Monitoring quality, cost, timing, and volume of process outputs
D) Link performance to cost reduction

Question 44

Which of the following relationships is not likely or possible to be true?

A) Capacity utilization < Design capacity
B) Effective capacity < Design capacity
C) Effective capacity > Capacity Utilization
D) Capacity utilization > Design capacity

Question 45

An objective of process flowcharting could be?

A) Increase process duration
B) Reduce number of steps in the process
C) Increase the number of steps in the process
D) Identify new suppliers

Question 46

Capacity utilization is defined by which of the following ratios?

A) Effective capacity/actual output
B) Effective capacity/design capacity
C) Actual output/effective capacity
D) Design capacity/effective capacity

Question 47

A hand car wash facility was designed so that it could wash a maximum of 200 cars per day. In reality, the owners of the facility have discovered that an actual maximum throughput is 175 cars per day. If the car wash typically washes 120 cars per day, what is its capacity utilization (given as a percentage)?

A) 60%
B) 87.5%
C) 166.7%
D) 68.6%

Question 48

The fundamental rethinking and redesign of a process to achieve dramatic improvements in efficiency and effectiveness refers to?

A) Business process analysis
B) Business process reimagination
C) Business process relocation
D) Business process reengineering

Question 49

Effective capacity is expected to be _________ design capacity.

A) Equal to
B) Less than
C) More than
D) Cannot be determined from the information given

Question 50

Capacity planning that includes making decisions about hiring or firing personnel occurs during what type of capacity planning?

A) Short-range
B) Intermediate-range
C) Long-range
D) Extended-range

Question 51

Business process reengineering, in a modern context, refers to?

A) Making radical process improvements quickly
B) Making small improvements over a short period of time
C) Making continual process improvements over time
D) Outsourcing process design and engineering

Question 52

A factory with a sustainable output of 5,000 parts per day has averaged 4,600 parts per day for the last month. What is the factory's capacity utilization over this period (given as a percentage)?

A) 108.7%
B) 400%
C) 92%
D) Cannot be determined without a given design capacity

Question 53

An alternative name for a process flowchart is a?

A) Process view
B) Process map
C) Process diagram
D) Process chart

Question 54

The maximum number of units that a facility can produce or serve over a period of time is referred to as?

A) Load
B) Capacity
C) Stock
D) Inventory

Question 55

Actual throughput level is referred to as?

A) Actual capacity
B) Benevolent capacity
C) Constrained capacity
D) Effective capacity

Question 56

A cell phone repair company is struggling to complete its customer orders on time. This could be attributable to?

A) Too much capacity
B) Too little capacity
C) Neither too much nor too little capacity
D) It is impossible to know if capacity levels are appropriate in this situation

Question 57

Short-range capacity planning includes all of the following except?

A) A time horizon of at least one year
B) Worker scheduling
C) Scheduling of jobs
D) Allocation of equipment to jobs

Question 58

Effects of too little capacity include all of the following except?

A) Fewer mistakes
B) Lost customers
C) Overburden
D) Long product completion times

Question 59

If a call center had a capacity utilization of 91% in June and a capacity utilization of 93% in July, what was the call center's percentage change in capacity utilization from June to July (to one decimal place)?

A) 2.0%
B) 2.2%
C) -2.2%
D) -2.0%

Question 60

Determining worker schedules and possible overtime requirements occur during what type of capacity planning?

A) Short-range
B) Intermediate-range
C) Long-range
D) Extended-range

Question 61

Hotels shifting customers from overbooked rooms to other hotels is an example of?

A) Outsourcing
B) Capacity sharing
C) Capacity swapping
D) Capacity leasing

Question 62

A philosophy that suggests that a system is only as good as its weakest part is the?

A) Theory of Participation
B) Theory of Constraints
C) Theory of Limitations
D) Theory of Bounds

Question 63

Which of the following is an example of intermediate-range capacity planning?

A) Making major equipment purchases
B) Scheduling jobs to be completed
C) Determining worker schedules
D) Subcontracting work

Question 64

Attempting to exceed a sustainable capacity for an extended period of time can lead to an effect known as?

A) Economies of scale
B) Distribution of effort
C) Diseconomies of scale
D) Overreaching scale

Question 65

A process has four stages (A, B, C, and D). The stages have output rates of 15 units/hr, 10 units/hr, 9 units/hr, and 11 units/hr, respectively. What is the output rate of this process?

A) 15 units/hr
B) 10 units/hr
C) 9 units/hr
D) 11 units/hr

Question 66

A process has four stages (A, B, C, and D). The stages have output rates of 25 units/hr, 12 units/hr, 11 units/hr, and 14 units/hr, respectively. What is the output rate of this process?

A) 25 units/hr
B) 12 units/hr
C) 11 units/hr
D) 14 units/hr

Question 67

Purchasing or building facilities occurs during what type of capacity planning?

A) Short-range
B) Intermediate-range
C) Long-range
D) Extended-range

Question 68

Which of the follow is the most likely result of a process that limits the output of a system?

A) Stop-up
B) Bottleneck
C) Congestion
D) Lead time

Question 69

A process has four stages (A, B, C, and D). The stages have output rates of 5 units/hr, 12 units/hr, 10 units/hr, and 7 units/hr, respectively. What is the output rate of this process?

A) 5 units/hr
B) 12 units/hr
C) 10 units/hr
D) 7 units/hr

Question 70

A process has four stages (A, B, C, and D). The stages have output rates of 5 units/hr, 12 units/hr, 10 units/hr, and 7 units/hr, respectively. Which stage is the process bottleneck?

A) A
B) B
C) C
D) D

Question 71

The book The Goal is linked to which philosophy?

A) Theory of Assessment
B) Theory of Bounds
C) Theory of Conjunction
D) Theory of Constraints

Question 72

Which technique is used to evaluate cost trade-offs among various options?

A) Linear regression
B) Break-even analysis
C) The House of Quality
D) Performance Analysis

Question 73

To perform break-even analysis, all of the following are needed except?

A) Expected level of production needed, based on forecasted sales
B) Projected fixed and variable costs for each option
C) Product quality value
D) Expected sales price of the new product or service

Question 74

The break-even quantity is given by which equation?

A) X = P/(F-V)
B) X = V(P-V)
C) X = 1/(F-P-V)
D) X = F/(P-V)

Question 75

A restaurant that adds additional servers as capacity increases is utilizing what kind of approach to adding capacity?

A) Conservative
B) Relaxed
C) Aggressive
D) Responsive

Question 76

A sandwich shop uses a three-person process to build a customer's customized sandwich. One employee takes the customer's order and begins building the sandwich. A second employee then completes the sandwich building. The third employee then wraps the sandwich and takes the customer's payment. The employee that takes the longest time to complete his or her task is referred to as the?

A) Order winner
B) Stop-gap
C) Bottleneck
D) Laggard

Question 77

A coffee shop is considering the purchase of a new machine. The machine costs $1,200. The shop will be able to sell a new drink for $3 per drink with a cost per drink of $2. What is the break-even quantity for the machine?

A) 1,000 drinks
B) 600 drinks
C) 3 drinks
D) 1,200 drinks

Question 78

A coffee shop is considering the purchase of a new machine. The machine costs $1,000. The shop will be able to sell a new drink for $4 per drink with a cost per drink of $2. What is the break-even quantity for the machine?

A) 1,000 drinks
B) 2 drinks
C) 500 drinks
D) 250 drinks

Question 79

The Theory of Constraints concept originated from which book?

A) The 7 Habits of Highly Effective People
B) The Stand
C) The Goal
D) The Plan

Question 80

The break-even equation is developed by which of the following?

A) Setting total profit equal to total costs
B) Setting total revenues equal to total costs
C) Setting total profit equal to total revenues
D) Setting total revenue equal to total loss