Question 1

Continuous flow processes are used to create custom goods and services.

Accepted Answer

Continuous flow processes involve standardized, mass production of goods or services at a high rate of output. They are not typically used for creating custom goods or services, as customization requires a more flexible, non-standard process.

Question 2

_____ are generally produced and delivered as one of a kind or in small quantities, and are designed to meet specific customers' specifications.
A) Fixed goods
B) Make-to-order goods
C) Make-to-stock goods
D) Standard goods

Accepted Answer

Make-to-order goods are produced and delivered as per the specific requirements of individual customers. They are not produced in bulk, and the production is initiated only after receiving an order. This process allows for customization and provides customers with unique products tailored to their needs.

Question 3

A _____ is the beginning or end of a process.
A) process design
B) process map
C) process boundary
D) process bottleneck

Accepted Answer

A process boundary marks the beginning or end of a process. Process design outlines the steps of a process, process mapping visualizes the flow of a process, and process bottleneck refers to a step in the process that slows down the entire process.

Question 4

A _____ is a characterization of product growth, maturity, and decline over time.
A) product life cycle
B) service blueprint
C) value stream map
D) product-process matrix

Accepted Answer

The product life cycle is a model that describes the stages a product goes through from its introduction to the market, growth, maturity, and eventually decline. This model is widely used in marketing and management to guide decision-making regarding product strategy, resource allocation, and investment. The other options are not directly related to the product life cycle.

Question 5

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

Accepted Answer

Reengineering efforts involve a cross-functional approach where all processes and functional areas (such as marketing, finance, operations, and human resources) are involved and collaborate to improve the overall performance of the organization. Therefore, the statement is true.

Question 6

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
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

Accepted Answer

To find the average number of new bookings per day, divide the total number of rooms occupied (225) by the average stay duration (2.5 days). This gives 225 / 2.5 = 90 new bookings per day, which falls into the range of more than 50 but less than or equal to 100 rooms per day.

Question 7

_____ are organized around particular types of general-purpose equipment that are flexible and capable of customizing work for individual customers.
A) Assembly line processes
B) Flow shop processes
C) Continuous flow processes
D) Job shop processes

Accepted Answer

Job shop processes are organized around particular types of general-purpose equipment that are flexible and capable of customizing work for individual customers. This is in contrast to assembly line, flow shop, and continuous flow processes, which are more specialized and focused on mass production.

Question 8

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 the labor utilization is 75 percent
A) 18 customers per hour
B) 26 customers per hour
C) 20 customers per hour
D) 24 customers per hour

Accepted Answer

The labor utilization rate is 75%, meaning that the employees are working at 75% of their capacity. If the demand is 36 customers per hour and there are two employees, the total service rate needed is 36 customers/hour. Therefore, the total capacity is 36 / 0.75 = 48 customers/hour. With two employees, each employee's service rate is 48 / 2 = 24 customers per hour.

Question 9

Which of the following is true of reengineering
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.

Accepted Answer

Reengineering aims to achieve quantum leaps in performance by fundamentally restructuring the process design. It is not intended to increase non-value-added activities, decrease throughput or focus on quality by adding multiple approval requirements for all transactions.

Question 10

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

Accepted Answer

The service-positioning matrix (SPM) helps management design a service system that best meets the technical and behavioral needs of customers. The horizontal axis of the SPM reflects the degree of customization offered by the service system, while the vertical axis represents the level of customer interaction required in the service process. The SPM does not focus on the alignment of process choice with the characteristics of the manufactured good, nor does it reflect the number of pathways built into a service system design by management or denote the repeatability of a customer's service-encounter activity sequence.

Question 11

A manufacturer's average work-in-process inventory for Part #1234 of a particular car model is 1,250 parts. The workstation produces parts at the rate of 150 parts per day. What is the average 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

Accepted Answer

The average time a part spends at the workstation is calculated by dividing the average inventory by the production rate: 1250 parts / 150 parts per day = 8.33 days, which falls in the range of more than 8 but less than or equal to 10 days.

Question 12

Non-value-added activities in a process design can be eliminated by:
A) using value stream mapping.
B) limiting the throughput of all processes.
C) adding multiple approval requirements for all transactions.
D) increasing process boundaries.

Accepted Answer

Using value stream mapping allows a visual representation of the entire process and identifies all non-value-added activities. Once these activities are identified, they can be eliminated or improved to make the process more streamlined and efficient. Limiting throughput or adding unnecessary approval requirements may slow down the process without addressing the root cause of the non-value-added activities. Increasing process boundaries may actually increase the potential for non-value-added activities.

Question 13

__________are large-scale, customized initiatives that consist of many smaller tasks and activities that must be coordinated and completed to finish on time and within budget.
A) Projects
B) Flow shops
C) Continuous flow processes
D) Assembly line processes

Accepted Answer

Projects are specifically designed to achieve a particular goal or objective and require the completion of multiple tasks and activities in a coordinated manner to achieve the desired outcome. Flow shops, continuous flow processes, and assembly line processes are not directly related to the definition provided.

Question 14

Management strategies to improve process designs of services focus on:
A) decreasing process costs by adding multiple approval requirements for all transactions.
B) decreasing process bottlenecks by adding non-value-added activities to a process.
C) increasing product and service quality by reducing defects and service upsets.
D) increasing agility by making service processes mechanistic and controlled.

Accepted Answer

The most effective management strategy to improve process designs of services is to increase product and service quality by reducing defects and service upsets. This can be achieved through continuous improvement efforts such as Six Sigma, Lean, or Kaizen. Adding multiple approval requirements (A) will increase process costs and add unnecessary delays, while adding non-value-added activities (B) will create more bottlenecks and ultimately decrease efficiency. Making service processes mechanistic and controlled (D) can inhibit flexibility and innovation, which is important in today's dynamic business environment.

Question 15

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
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

Accepted Answer

The average number of rentals processed per day is 70% of 200 cars, which is 140 cars. This is more than 10 but less than or equal to 50 cars per day.

Question 16

Utilization is the average time taken to complete one cycle of a process.

Accepted Answer

Utilization is the proportion of the total available time that a resource is being used. It is not the average time taken to complete one cycle of a process.

Question 17

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

Accepted Answer

The average number of statements in process at any time can be calculated using Little's Law, which states that the average number of items in a queuing system (L) is equal to the average arrival rate (λ) multiplied by the average time an item spends in the system (W). Here, λ = 300 statements per day and W = 2 days. Therefore, L = λ * W = 300 * 2 = 600 statements.

Question 18

__________are configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set.
A) Fixed goods
B) Custom goods
C) Option goods
D) Standard goods

Accepted Answer

Option goods are configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set. They offer customers some level of customization while still allowing for efficient production and delivery processes. Fixed goods, on the other hand, are produced in large volumes with little flexibility in design or customization. Custom goods are specifically designed or tailored to meet the unique needs or preferences of individual customers, while standard goods are mass-produced items that are not customized in any way.

Question 19

The most appropriate match between type of product and type of process occurs as one moves away from the diagonal in the product-process matrix.

Accepted Answer

The product-process matrix suggests that the most appropriate match between type of product and type of process occurs as one moves closer to the diagonal, not away from it. This means that products requiring more flexibility and customization are best matched with more flexible processes, while standardized products are best produced with more efficient, repetitive processes.

Question 20

In a process design, an activity refers to a group of tasks needed to create and deliver an intermediate or final output.

Accepted Answer

An activity is defined as a group of related tasks that are required to produce an intermediate or final output. It is a key component of process design, which aims to optimize the flow of work and minimize inefficiencies. By breaking down a process into smaller activities, it becomes easier to identify areas for improvement and streamline operations.

Quiz 7: Process Selection, Design, and Analysis

Continuous flow processes are used to create custom goods and services.

_____ are generally produced and delivered as one of a kind or in small quantities, and are designed to meet specific customers' specifications.

A _____ is the beginning or end of a process.

A _____ is a characterization of product growth, maturity, and decline over time.

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

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

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

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 the labor utilization is 75 percent

Which of the following is true of reengineering

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

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

Non-value-added activities in a process design can be eliminated by:

__________are large-scale, customized initiatives that consist of many smaller tasks and activities that must be coordinated and completed to finish on time and within budget.

Management strategies to improve process designs of services focus on:

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

Utilization is the average time taken to complete one cycle of a process.

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

__________are configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set.

The most appropriate match between type of product and type of process occurs as one moves away from the diagonal in the product-process matrix.

In a process design, an activity refers to a group of tasks needed to create and deliver an intermediate or final output.