Question 1

An automobile emissions testing center has three inspectors and tests 35 vehicles per hour. What should the service rate be in order to achieve a target utilization of 95 percent

Accepted Answer

A)  More than 1 but less than or equal to 5 vehicles per hour 
B)  More than 5 but less than or equal to 10 vehicles per hour 
C)  More than 10 but less than or equal to 15 vehicles per hour 
D)  More than 15 but less than or equal to 20 vehicles per hour

Question 2

All processes and functional areas participate in the reengineering efforts of a firm.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements is true of the service-positioning matrix (SPM)

Accepted Answer

A)  The horizontal axis of the SPM reflects the number of pathways built into a service system design by management. 
B)  The SPM mainly focuses on the alignment of process choice with the characteristics of the manufactured good. 
C)  The SPM helps management design a service system that best meets the technical and behavioral needs of customers. 
D)  The vertical axis of the SPM denotes the repeatability of a customer's service-encounter activity sequence.

Question 4

Which of the following is true of reengineering

Accepted Answer

A)  Reengineering increases the number of non-value-added activities in a process design. 
B)  Reengineering decreases throughput by adding process bottlenecks. 
C)  The goal of reengineering is to achieve quantum leaps in performance. 
D)  The aim of reengineering is to focus on quality by adding multiple approval requirements for all transactions.

Question 5

An accounting firm is capable of processing 20 income tax forms per day. The average number of forms in various stages of processing at any one time in the firm is 64. What is the average processing time per income tax form

Accepted Answer

A)  More than 2 but less than or equal to 3 days 
B)  More than 3 but less than or equal to 4 days 
C)  More than 4 but less than or equal to 5 days 
D)  More than 5 days

Question 6

A car rental company at a major airport on an average rents 70 percent of its fleet of 200 cars per day. The cars are rented for an average of 4 days. What is the average number of rentals processed per day

Accepted Answer

A)  More than 10 but less than or equal to 50 cars per day 
B)  More than 50 but less than or equal to 100 cars per day 
C)  More than 100 but less than or equal to 150 cars per day 
D)  More than 150 but less than or equal to 200 cars per day

Question 7

A wealth management company is able to process 300 customer statements per day. The average processing time per statement is two days. What is the average number of statements the company has in process at any time

Accepted Answer

A)  150 
B)  200 
C)  450 
D)  600

Question 8

Which of the following is a difference between flow shops and job shops

Accepted Answer

A)  Unlike flow shops, job shops require little or no setup time. 
B)  Unlike flow shops, job shops are organized around a fixed sequence of process steps. 
C)  Unlike flow shops, job shops require frequent machine changeovers and delays. 
D)  Unlike flow shops, job shops produce many large-volume goods and services.

Question 9

The average number of hotel rooms occupied per day during the month of March is 225. On average, each room is booked for 2.5 days. What is the average number of new bookings that occur per day

Accepted Answer

A)  More than 50 but less than or equal to 100 rooms per day 
B)  More than 150 but less than or equal to 300 rooms per day 
C)  More than 350 but less than or equal to 500 rooms per day 
D)  More than 500 rooms per day

Question 10

Which of the following statements is true of a process map

Accepted Answer

A)  It distorts the boundaries of a process. 
B)  Including non-value-added activities in a process map is one of the important responsibilities of operations managers. 
C)  It documents how work either is or should be accomplished. 
D)  Adding multiple approval requirements for all transactions in a process map is a crucial part in the creation of the process map.

Exam 7: Process Selection, Design, and Analysis