Deck 7: Process Selection, Design, and Analysis

Question 1

Using the service-positioning matrix, a limited number of customer pathways and highly repeatable service encounter activity sequences would best relate to:

A) being below the diagonal.
B) continuous flow processes.
C) customer-routed services.
D) provider-routed services.

Answer 1

D

Question 2

Which of the following statement is TRUE about a process map (flowchart)?

A) It does not have boundaries.
B) It does not include information flow.
C) It is often used as a baseline to describe how a process is performed.
D) It must include a line of customer visibility.

Answer 2

C

Question 3

An accounting firm specializing in standard EZ tax returns filed online with a similar sequence of steps is best described as what type of process?

A) Project
B) Job shop
C) Flow shop
D) Continuous flow

Answer 3

C

Question 4

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

A) Project
B) Job shop
C) Flow shop process
D) Continuous flow process

Question 5

Which one of the following major activities is NOT one of the six major activities to design a goods-producing or service-providing process?

A) Define the purpose and objectives of the process.
B) Create a detailed process or value stream map that baselines current performance.
C) Use the product life cycle for each good or service to create a future state process map.
D) Select the appropriate equipment and technology.

Question 6

Which is the correct order of hierarchy of process design?

A) Activity, task, process, value chain
B) Value chain, process, task, activity
C) Process, value chain, activity, task
D) Value chain, process, activity, task

Question 7

Subway's sandwich process is best described as:

A) custom or make-to-order.
B) option or assemble-to-order.
C) standard or make-to-stock.
D) a value (supply) chain.

Question 8

A(n) _____ is a group of tasks needed to create and deliver an intermediate or final output.

A) process
B) activity
C) value chain
D) prototype

Question 9

Which of the following is NOT a major activity in designing a goods-producing or service-providing process?

A) Utilizing reengineering methods
B) Designing value street map for the current process
C) Developing process performance criteria
D) Defining appropriate performance measures

Question 10

Automobile factories and hospital laboratory work are examples of:

A) projects.
B) job shop processes.
C) flow shop processes.
D) continuous flow processes.

Question 11

_____ services offer customers broad freedom to select the pathways that are best suited for their immediate needs and wants from many possible pathways through the service delivery system.

A) Provider-routed
B) Customer-routed
C) Option-oriented
D) Standard

Question 12

The decisions for the product-process matrix include all the following EXCEPT:

A) volume of demands.
B) range of products.
C) pathways.
D) type of goods.

Question 13

_____ processes are organized around particular types of general-purpose equipment that are flexible and capable of customizing work for individual customers

A) System
B) Job shop
C) Flow shop
D) Continuous flow

Question 14

All of the following are the phases of a product's life cycle EXCEPT:

A) introduction.
B) inception.
C) maturity.
D) decline.

Question 15

Transferring material between two non-adjacent workstations, waiting for service, and requiring multiple approvals are examples of:

A) a value stream.
B) a process map.
C) non-value-added activities.
D) a service blueprint.

Question 16

Ships, weddings, and estate planning are examples of _____ goods and services.

A) make-to-order
B) assemble-to-order
C) make-to-stock
D) continuous flow

Question 17

Which of the following type of process is most likely to be used by a manufacturing firm that produces a standardized product, not made of discrete parts, with little to no customization, and has a high volume of demand?

A) Project
B) Job shop
C) Flow shop
D) Continuous flow

Question 18

A women's beauty salon specializing in hair coloring is best described as a:

A) project.
B) job shop.
C) flow shop.
D) continuous flow.

Question 19

Appliances and iPods are examples of _____ goods.

A) Custom
B) Option
C) Standard
D) assemble-to-order

Question 20

Dell computers and travel agent services are examples of _____ goods and services.

A) Custom
B) Option
C) Standard
D) processed

Question 21

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

A) Two
B) Three
C) Four
D) Five

Question 22

How many computer repair troubleshooters should be on duty from 8:00 p.m. to midnight if total demand during that period is 15 calls? The service rate is five (5) calls per hour and the target utilization is 90%.

A) Two
B) Three
C) Four
D) Five

Question 23

An order fulfillment process normally operates two shifts a day, six days per week. Under normal conditions, 380 orders can be processed per shift. What is the weekly capacity?

A) More than 1000 but less than or equal to 2000
B) More than 2000 but less than or equal to 3000
C) More than 3000 but less than or equal to 4000
D) More than 4000

Question 24

For a Marriott hotel call center, the expected service rate was 3.0 minutes per telephone call per customer service representative (CSR). With 3 telephone CSRs on-duty during the 6:30 to 7:00
A) More than 5 but less than or equal to 10 customers per hour

A)m. time period, and assuming a 90% target CSR labor utilization rate, how many telephone calls can these 3 CSRs handle during this time period?
B) More than 10 but less than or equal to 15 customers per hour
C) More than 15 but less than or equal to 20 customers per hour
D) More than 20 customers per hour

Question 25

The Department of Motor Vehicle (DMV) testing center has ten (10) testers who test 75 drivers per day. What would the implied service rate need to be in order to achieve 85% utilization?

A) Less than 5 drivers per day per tester
B) More than 5 but less than or equal to 10 drivers per day per tester
C) More than 10 but less than or equal to 15 drivers per day per tester
D) More than 15 but less than or equal to 20 drivers per day per tester

Question 26

An automobile emission testing center has six (6) inspectors and tests 50 vehicles per hour. What should the service rate be in order to achieve 90% utilization?

A) Less than 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 27

_____is the fraction of time a workstation or individual is busy over the long run.

A) Utilization
B) Cycle time
C) Throughput
D) Turnaround time

Question 28

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%?

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

Question 29

What is the implied service rate per service-counter employee at an airport automobile rental counter if the customer demand is 36 customers per hour, two service-counter employees are on duty, and their labor utilization is 90%?

A) More than 10 but less than or equal to 12 customers/hour/employee
B) More than 12 but less than or equal to 14 customers/hour/employee
C) More than 14 but less than or equal to 16 customers/hour/employee
D) More than 16 customers/hour/employee

Question 30

What is the implied service rate at a bank teller's window if demand is 26 customers per hour and the bank staffs are 3 tellers with an average utilization of 80%?

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

Question 31

A manufacturing firm produces a few standardized products in high volumes in a fixed processing sequence that operates 24 hours a day and 7 days a week. The forecast of volume is reasonably accurate. The firm is most likely to use the _____ process.

A) project
B) job shop
C) flow shop
D) continuous flow

Question 32

A company is able to process 100 customer statements (bills) per day per processing clerk. It has 250 customer statements to process per day. How many full-time processing clerks are needed if the company wants a processing-clerk utilization rate as close to 0.80 as possible?

A) Two
B) Three
C) Four
D) Five

Question 33

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

A) More than 60% but less than or equal to 70%
B) More than 70% but less than or equal to 80%
C) More than 80% but less than or equal to 90%
D) More than 90 percent

Question 34

Which of the following is LEAST related to value stream mapping?

A) Non-value-added activity
B) Time
C) Cost
D) Reengineering

Question 35

A big city automobile quick oil change store can process 20 vehicles per hour over its multiple bays. Each mechanic can change the oil and do other related tasks at a rate of one car every 20 minutes. If the center wanted a target labor utilization of 90%, how many mechanics would they require?

A) More than 4 but less than or equal to 6
B) More than 6 but less than or equal to 8
C) More than 8 but less than or equal to 10
D) More than 10

Question 36

The Department of Motor Vehicle (DMV) testing center currently has six (6) testers who test 68 drivers per day. Each tester can test twelve (12) drivers per day. Testers are complaining about being too busy and the center being understaffed. In order to achieve an average of 80% utilization of the testers, how many testers should be added at the center?

A) One
B) Two
C) Three
D) Four

Question 37

The lowest resource utilization is usually found in a(n) _____ process.

A) job shop
B) flow shop
C) continuous flow
D) assembly line

Question 38

Which of the following is NOT a common process design improvement strategy?

A) Increasing revenue
B) Decreasing agility
C) Decreasing cost
D) Decreasing process flow time

Question 39

An automobile emission testing center has six (6) inspectors and tests 50 vehicles per hour. Each inspector can inspect twelve (12) vehicles per hour. What is the center's utilization?

A) Less than 60 percent
B) More than 60% but less than or equal to 70%
C) More than 70% but less than or equal to 80%
D) More than 80% but less than or equal to 90%

Question 40

An automobile emission testing center tests 50 vehicles per hour. Each inspector can inspect one vehicle every four minutes. If the center wants a utilization of 90%, how many inspectors are required?

A) Two
B) Three
C) Four
D) Five

Question 41

The product-process matrix works well for both goods and services.

Question 42

A custom machine shop is able to process 25 orders per day. The average processing time is 4 days. What is the average number of orders that are in process at any time?

A) Less than 50
B) More than 50 but less than or equal to 100
C) More than 100 but less than or equal to 150
D) More than 150 but less than or equal to 200

Question 43

Flow shop processes are more rigid and highly specialized than continuous flow processes.

Question 44

Configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set are called make-to-order goods and services.

Question 45

Standard goods are made in anticipation of customer demand and stocked in inventory and therefore, are usually available,

Question 46

Which of the following statements is TRUE about Little's Law?

A) It explains the relationship between waiting time and throughput.
B) It takes into account any randomness in arrivals or service times.
C) It focuses on finished goods inventory.
D) It evaluates average process performance.

Question 47

A car rental company at a major airport has an average inventory of 48 cars rented. Cars are rented for an average of 3 days. How many rentals are processed each day on average?

A) Less than or equal to 10
B) More than 10 but less than or equal to 20
C) More than 20 but less than or equal to 30
D) More than 30 but less than or equal to 40

Question 48

A wealth management company is able to process 300 customer statements (bills) per day. The average processing time is six (6) days. What is the average number of statements (bills) the company has in process at any time?

A) More than 500 but less than or equal to 750
B) More than 750 but less than or equal to 1000
C) More than 1000 but less than or equal to 1250
D) More than 1250

Question 49

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?

A) Less than 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 50

The average number of entities completed per unit time-the output rate-from a process is called _____.

A) utilization
B) throughput
C) service rate
D) work-in-process

Question 51

A manufacturer's average work-in-process inventory for Part 1234 is 1,250 parts. The workstation produces parts at the rate of 150 parts per day. What is the average amount of time a part spends at the workstation?

A) More than 4 but less than or equal to 6 days
B) More than 6 but less than or equal to 8 days
C) More than 8 but less than or equal to 10 days
D) More than 10 days

Question 52

Projects are often used for standardized products and not for custom goods and services.

Question 53

Job shop processes use flexible, general purpose equipment that is capable of customizing work for individual customers.

Question 54

A custom good or service is produced in anticipation of demand.

Question 55

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?

A) Less than 100 rooms per day
B) More than100 but less than or equal to 150 rooms per day
C) More than 150 but less than or equal to 200 rooms per day
D) More than 200 but less than or equal to 250 rooms per day

Question 56

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. What is the average processing time per EZ tax form?

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 57

Make-to-stock goods and services are made according to a fixed design, and the customer has no options from which to choose.

Question 58

The work activity that effectively limits throughput of a process is known as a _____.

A) process boundary
B) service blueprint
C) bottleneck
D) process map

Question 59

A legal defense preparation is an example of a project.

Question 60

What is the average time a loaf of sliced bread stays in an urban sandwich shop if the restaurant uses 46 loaves per day, and they maintain an average inventory of 150 loaves?

A)Less than one day
B)More than one day but less than or equal to two days
C)More than two days but less than or equal to three days
D)More than three days

Question 61

Process mapping is defined as the fundamental rethinking and radical redesign of business processes.

Question 62

In using the product-process matrix, the most appropriate match between products and processes occurs along the diagonal of the matrix.

Question 63

Service-positioning matrix is a model that describes the alignment of process choice with the characteristics of the manufactured good.

Question 64

The service-positioning matrix suggests that services should try to position themselves off the diagonal in order to achieve superior performance.

Question 65

A pathway is a route that a product takes in a job shop.

Question 66

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

Question 67

As one moves up the hierarchy of work, the total number of tasks that must be coordinated becomes larger.

Question 68

A group of tasks needed to create and deliver an intermediate or final output is called an activity.

Question 69

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

Question 70

The "line of customer visibility" shows the separation between the back office and front office activities in a service flowchart.

Question 71

In service operations, significant volume increases can and frequently are made without changes in the service process, as would be expected in manufacturing.

Question 72

To improve process designs, one must focus on increasing costs through better technology.

Question 73

In designing processes, one often starts at the detail level and moves progressively toward the aggregate.

Question 74

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

Question 75

The service-positioning matrix focuses on the service encounter level rather than the overall design of the service system.

Question 76

A company can differentiate itself from its competitors by positioning itself along the diagonal of the product-process matrix.

Question 77

In service applications, flowcharts generally highlight the points of contact with the customer.

Question 78

Service facilities have a greater range of resource utilization than manufacturing.

Question 79

A process map and a value stream map are two terms for the same thing.

Question 80

Service-encounter repeatability provides a measure analogous to product volume for goods-producing firms.