Question 1

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.

Accepted Answer

To calculate the average flow time for the Underwriting process, we need to use Little’s Law:

Average flow time = number of applications in the process / throughput

Throughput = number of applications completed per unit of time (in our case, per month)

Since we know that there are currently 140 applications with the Underwriting team and the total number of applications per month is 600, we can calculate the monthly throughput:

Throughput = 600 - 60 (in Reception) - 140 (with Underwriting) = 400 applications per month

We also know that there are 20 working days per month, so the average flow time for the Underwriting process is:

Average flow time = 140 / 400 = 0.35 months = 0.35 x 20 days = 7 days

Therefore, the answer is choice C.

Question 2

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.

Accepted Answer

To process an application, it has to go through Receiving and Underwriting. As there are 160 applications in the Reception area and 240 applications with the Underwriting team currently, the total number of applications in the process is 160 + 240 = 400.
Therefore, the number of applications processed per day is 1,600 / 20 = 80.
To process 400 applications, it will take (400/80) = 5 days. 
So, the answer is option C, 5 days.

Question 3

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?

Accepted Answer

To calculate the number of customers waiting in line, we need to use Little's Law, which states that the average number of customers in a queue is equal to the average arrival rate multiplied by the average time in the queue.

Average arrival rate = 120 customers per hour = 2 customers per minute

Average time in the queue = 5 minutes (since each customer takes about 5 minutes to complete their transaction)

Therefore, the average number of customers waiting in line = 2 x 5 = 10

So the best choice is (D) 10 customers.

Question 4

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

Accepted Answer

The answer of Given the following process flow diagram, where...

Question 5

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

Accepted Answer

The answer of Given the following process flow diagram, which...

Question 6

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?

Accepted Answer

The registrar has the lowest capacity and can only serve 5 students per hour, while the academic advisor and departmental advisor each have a capacity of 10 students per hour. Therefore, the registrar is the bottleneck in this system and determines the overall capacity of the system. Option A is incorrect because if the academic advisor operates at full capacity, it means that the departmental advisor can also operate at full capacity since they have equal capacity. Option B is incorrect because the system's capacity is determined by the registrar's capacity as the bottleneck. Option D is incorrect because the advisors' capacity is higher than the registrar's, and they are not the bottleneck.

Question 7

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?

Accepted Answer

The answer of Students typically need to see an academic...

Question 8

Warning signs of deteriorating process management conditions include

Accepted Answer

The use of shadow processes indicates that the established processes are not effective or efficient, too many metrics can lead to confusion and lack of focus, and senior management decline in interest can result in lack of support and resources for process management. All of these are warning signs of deteriorating process management conditions.

Question 9

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

Accepted Answer

There is no trend of a decrease in the number and complexity of process performance metrics. In fact, companies are using more sophisticated metrics and performance indicators to measure process performance and make data-driven decisions.

Question 10

A process consists of ________and ________work steps.

Accepted Answer

The answer of A process consists of ________and ________work steps....

Question 11

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

Accepted Answer

The answer of Process management involves ________, ________, ________, ________,...

Question 12

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

Accepted Answer

The answer of _________, ________, and ________ are three fundamental...

Question 13

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

Accepted Answer

The answer of Process management is important to a business...

Question 14

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

Accepted Answer

The answer of Three key metrics in process flow analysis...

Question 15

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

Accepted Answer

The answer of The three key metrics in process flow...

Question 16

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

Accepted Answer

The answer of A stable process means that the average...

Question 17

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

Accepted Answer

The answer of A process ________ or ________ is usually...

Question 18

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

Accepted Answer

The answer of ________ can be used to identify all...

Question 19

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

Accepted Answer

The answer of In process improvement, any steps that do...

Question 20

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

Accepted Answer

The answer of The work step with the lowest capacity...

Quiz 4: Managing Processes

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.

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?

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

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

Warning signs of deteriorating process management conditions include

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

A process consists of and work steps.

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

_, , and are three fundamental processes used by businesses.

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

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

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

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

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

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

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

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