Deck 4: Managing Processes

Question 1

A process consists of an organized sequence of repeatable, customized work steps.

Answer 1

False

Question 2

A process delivers output of consistent quality and value, in small volumes.

Answer 2

False

Question 3

Process management is usually suitable for one-of-a-kind outputs.

Answer 3

False

Question 4

Managing a process involves planning, analyzing, and improving the process.

Question 5

Businesses use three fundamental processes: procurement, production, and fulfillment.

Question 6

Any process must have at least one product or service.

Question 7

Process management is important to businesses because it allows for quality and consistency.

Question 8

Proper process management does not impact company financials.

Question 9

Process management decisions are both strategic and operational in nature.

Question 10

A flow unit is usually defined in terms of the input of the process.

Question 11

The average flow rate is the average time it takes one unit to move from the beginning to the end of the process.

Question 12

The average inventory in a process is the average number of units that are inside the process at any time.

Question 13

Shorter flow times may lead to decreased flow rates or reduced average inventory.

Question 14

A process is stable only when the average rate of arrival or demand rate is equal to or lower than the process or service capacity.

Question 15

Process capacity is the effective capacity of a process that can be sustained under normal working conditions.

Question 16

A bottleneck is an operation that has the lowest capacity utilization of any process in the system.

Question 17

A flow diagram and a process flowchart do not illustrate the same things.

Question 18

A bottleneck process has the smallest or lowest throughput rate of any process within the system.

Question 19

One way to get rid of bottlenecks is to elevate them but putting them higher in the process flow diagram.

Question 20

Any process can be improved by redesigning it.

Question 21

Excessive KPIs (key performance indicators) can be detrimental to process improvements.

Question 22

Aligning and involving external businesses in process improvement is a relatively easy task.

Question 23

A visible commitment of resources and work analysis are conducive to maintaining interest in process improvement initiatives.

Question 24

Process performance metrics have increased in number and complexity, offering deeper insights on process performance.

Question 25

Which one of the following statements concerning processes is not correct?

A) Processes are an organized sequence of work steps.
B) Processes are repeatable.
C) Processes span different functions and multiple organizations.
D) Processes are customized work steps.

Question 26

Process management can best be described by which one of the following statements?

A) Process management can only be applied to production-type facilities.
B) Process management is only concerned with improving the output of the firm.
C) Process management is a short-term decision because it can be repeatable.
D) Process management is best suitable for standardized outputs.

Question 27

All of the following are fundamental processes used in business except

A) procurement
B) production
C) servicing
D) fulfilment

Question 28

Average flow time can be defined as

A) the average time it takes for one unit of output to be produced
B) the average time it takes for one unit to pass through any work step
C) the average time it takes for one unit to move from the beginning to the end of the process
D) the average time spent on transportation or movement between work steps

Question 29

Which of the following is not a metric for evaluating process flows?

A) average flow rate
B) average process time
C) average inventory
D) average flow time

Question 30

Little's law can only be used when

A) the average inventory rate is equal to the average flow rate
B) the average inflow rate would be equal to the average outflow rate
C) the average inflow rate would be greater than the average outflow rate
D) the average inflow rate would be lesser than the average outflow rate

Question 31

A process is stable if

A) the average inflow rate would be equal to the average outflow rate
B) the average inventory rate is close to zero
C) the average rate of arrival or demand is lower than the process or service capacity
D) the average rate of arrival or demand is higher than the process or service capacity

Question 32

All of the following elements can be found on a process flow chart except

A) billing
B) transportation
C) inspection
D) storage

Question 33

Any attempt at process improvement should focus on

A) providing value to the customer as quickly as possible
B) reducing capacity
C) increasing average inventory
D) decreasing the average flow rate

Question 34

Types of wastes identified by TIMWOODS include all of the following except

A) overtime
B) inventory
C) defects
D) transportation

Question 35

A bottleneck is

A) the work step with the highest capacity
B) the work step with the lowest capacity
C) the work step with the largest average flow rate
D) the work step with the lowest average flow time

Question 36

According to the theory of constraints (TOC), bottlenecks can be attributed to all of the following constraints except

A) policy
B) payment
C) internal
D) external

Question 37

According to the theory of constraints, "Exploit the bottleneck(s)" means

A) Raise the bottleneck(s) to another level in the process.
B) Reduce the capacity of the bottleneck(s).
C) Ensure that the bottleneck does not stay idle.
D) Maximize the average flow time through the bottleneck(s).

Question 38

"Elevate the bottleneck" means:

A) Move the bottleneck to a higher part of the diagram.
B) Increase the average flow time through the bottleneck.
C) Reduce the capacity of the bottleneck.
D) none of the above

Question 39

According to the theory of constraints, which of the following can be done to elevate the bottleneck?

A) add workers
B) add or replace equipment
C) subcontract or outsource capacity
D) all of the above

Question 40

Statewide Insurers receives 600 applications per month. Currently, there are 60 applications in the Reception area and 140 applications with the Underwriting team. How long does Receiving take to process an application? Assume that there are 20 working days per month.

A) 2 days
B) 3 days
C) 7 days
D) 10 days

Question 41

Statewide Insurers receives 600 applications per month. Currently, there are 60 applications in the Reception area and 140 applications with the Underwriting team. What is the average flow time for the Underwriting process? Assume that there are 20 working days per month.

A) 4.29 days
B) 7 days
C) 4.67 days
D) 3 days

Question 42

Statewide Insurers receives 1,600 applications per month. Currently, there are 160 applications in the Reception area and 240 applications with the Underwriting team. Application must go through Receiving and then the Underwriting process. How long does it take to process an application? Assume that there are 20 working days per month.

A) 2 days
B) 7 days
C) 5 days
D) 10 days

Question 43

During peak times, Bellville County Department of Motor Vehicles can process an average of 120 customers per hour. Each customer takes about 5 minutes to complete their transaction. On average how many customers are waiting in line?

A) 24 customers
B) 12 customers
C) 2 customers
D) 10 customers

Question 44

Given the following process flow diagram, where is the bottleneck?

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

Question 45

Given the following process flow diagram, which of the following actions would have the greatest effect on throughput?

A) Increase the throughput rate at WorkStation B to 12 units/hr.
B) Decrease the processing time at WorkStation A to 5 minutes.
C) Decrease the processing time at WorkStation D to 5 minutes.
D) Increase the throughput rate at WorkStation C to 12 units/hr.

Question 46

Students typically need to see an academic advisor, followed by a departmental advisor, and then the registrar before being processed for graduation. The academic advisor and departmental advisor can each serve 10 students per hour while the registrar can serve only 5 students per hour. Which of the following statements regarding this system is true?

A) If the academic advisor operates at full capacity, then there is a waiting line at the departmental advisor.
B) The entire system is capable of processing 25 students per hour.
C) The registrar is the bottleneck in this system.
D) The advisors are the bottlenecks in the system.

Question 47

Students typically need to see an academic advisor, followed by a departmental advisor, and then the registrar before being processed for graduation. The academic advisor and departmental advisor can each serve 15 students per hour while the registrar can serve only 10 students per hour. Ideally, how long would it take for them to be processed for graduation?

A) 15 minutes
B) 25 minutes
C) 10 minutes
D) 14 minutes

Question 48

Warning signs of deteriorating process management conditions include

A) the use of shadow processes
B) too many metrics
C) senior management decline in interest
D) all of the above

Question 49

Which of the following is not a trend in process management?

A) increased use of information technology
B) use of social technologies
C) crossover usage of process management principles from manufacturing to services
D) a decrease in the number and complexity of process performance metrics

Question 50

A process consists of ________and ________work steps.

Question 51

Process management involves ________, ________, ________, ________, ________, ________, and ________ the process.

Question 52

_________, ________, and ________ are three fundamental processes used by businesses.

Question 53

Process management is important to a business because it affects the ________.

Question 54

Three key metrics in process flow analysis are average: ________, ________, and ________.

Question 55

The three key metrics in process flow analysis are connected by ________.

Question 56

A stable process means that the average ________ rate must be equal to the average ________ rate.

Question 57

A process ________ or ________ is usually the best place to start analyzing a process for improvements.

Question 58

________ can be used to identify all of the different types of wastes present in any process.

Question 59

In process improvement, any steps that do not add value should be ________ or ________ or ________.

Question 60

The work step with the lowest capacity is called the ________.

Question 61

According to the theory of constraints, bottlenecks can be attributed to ________, ________, and ________ constraints.

Question 62

Process ________ is the maximum number of units that can be made or serviced by the process per unit time under normal working conditions.

Question 63

________ capacity is the maximum number of units that can be processed at that work activity station per unit time under normal working conditions.

Question 64

The ________ cannot be greater than process capacity.

Question 65

Underground or informal processes are also known as ________ processes.

Question 66

Warning signs of deteriorating process management conditions include ________ and ________.

Question 67

Trends in process management include ________ and the use of ________ and ________.

Question 68

What is a process? How is it managed? Illustrate your answer with examples.

Question 69

What are the three fundamental processes in any business? Describe each component carefully and indicate how they are all related to each other.

Question 70

Why is process management important to a business? What are the responsibilities of a process manager?

Question 71

Describe and define the three process flow measures. Illustrate your answer with examples.

Question 72

Identify the steps in process analysis and improvement.

Question 73

Explain why a bottleneck limits the output of a process.

Question 74

What are the principles of the theory of constraints?

Question 75

Describe some warning signs of deteriorating process management conditions.

Question 76

How can a process manager identify bottleneck(s) in a service or manufacturing process? What signs, if any, would there be in a manufacturing firm to indicate a bottleneck?

Question 77

Cars at a car wash come out of the car wash at an average rate of 10 cars/hour. Cars are arriving at an average rate of 10 cars/hour. Would there be a waiting line at the entrance of the car wash?

Question 78

The average number of people in the school cafeteria line at lunch time is 20 students. It takes the lunch counter 2 minutes on average to process a student. What is the average flow rate?

Question 79

The Montgomery Township Public Works claims to repair, on average, 100,000 potholes a year. Residents claim that the Department is misleading, given that an average of 60,000 unfilled potholes exists on city roads at any given time (confirmed from official records). The Department refutes the charge, insisting that they fix a pothole, on average, in less than a month. Who is telling the truth? Provide reasoning.