Question 1

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

Accepted Answer

The answer of The product-process matrix works well for both...

Question 2

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

Accepted Answer

The average number of orders in process at any time can be calculated using Little's Law, which states that the average number of items (L) in a queuing system equals the average arrival rate (λ) times the average time an item spends in the system (W). Here, λ = 25 orders/day and W = 4 days, so L = λW = 25 orders/day * 4 days = 100 orders. This falls into the range of "More than 50 but less than or equal to 100."

Question 3

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

Accepted Answer

Continuous flow processes are more rigid and highly specialized, designed for very high volumes of production with little to no variation in product types, whereas flow shop processes can handle a variety of products, though still in a sequential manner.

Question 4

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.

Accepted Answer

The statement describes make-to-stock goods and services, which are produced in advance based on demand forecasts and are available for purchase by customers. Make-to-order goods and services are customized and produced only after the customer places an order.

Question 5

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

Accepted Answer

Standard goods are produced in advance and stored in inventory to meet customer demands, making them readily available.

Question 6

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.

Accepted Answer

Little's Law evaluates average process performance by relating average number of items in a system, average arrival rate, and average time an item spends in the system.

Question 7

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

Accepted Answer

To calculate the number of rentals processed per day on average, we need to divide the average inventory by the average rental duration:

48 cars rented / 3 days = 16 rentals per day on average

Since 16 is more than 10 but less than or equal to 20, the best choice is B.

Question 8

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

Accepted Answer

The answer of A wealth management company is able to...

Question 9

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

Accepted Answer

The answer of A car rental company at a major...

Question 10

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

Accepted Answer

Throughput refers to the average number of entities completed per unit time from a process, indicating the output rate of that process.

Question 11

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

Accepted Answer

The average time a part spends at the workstation can be calculated using Little's Law: Inventory = Throughput Rate x Flow Time. Here, Flow Time = Inventory / Throughput 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

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

Accepted Answer

Projects can be used for both standardized products and custom goods/services. However, projects for custom goods and services may require more planning, customization, and stakeholder involvement compared to standardized products.

Question 13

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

Accepted Answer

Job shop processes are characterized by the use of flexible, general purpose equipment that can be adjusted to meet the specific needs of individual customers. This allows for customization and increased flexibility in production.

Question 14

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

Accepted Answer

A custom good or service is produced in response to a specific demand, not in anticipation of it.

Question 15

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

Accepted Answer

The answer of The average number of hotel rooms occupied...

Question 16

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

Accepted Answer

To find out the average processing time per EZ tax form, we need to divide the total number of EZ tax forms on hand by the number of forms that can be processed per day.

Total number of EZ tax forms on hand = 64
EZ tax forms processed per day = 20

Therefore, average processing time per form = Total forms on hand / EZ tax forms processed per day
= 64 / 20
= 3.2 days

Since the average processing time is more than 3 and less than or equal to 4 days, the answer is choice B.

Question 17

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

Accepted Answer

Make-to-stock goods and services are produced in anticipation of demand and typically have a fixed design that cannot be altered according to customer preferences. Customers have no options to choose from since the items are already produced and ready to be sold.

Question 18

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

Accepted Answer

A bottleneck is the narrowest point in a process that limits the overall throughput. It is the step that restricts the flow and slows down the entire process, resulting in longer lead times and lower productivity. Therefore, option C is the correct answer. The other options are process improvement tools and techniques that are used to analyze and optimize processes, but they do not refer specifically to the activity that limits throughput.

Question 19

A legal defense preparation is an example of a project.

Accepted Answer

A legal defense preparation involves specific tasks that need to be completed within a defined timeline, making it a project. It requires planning, coordination, and resources to achieve the desired outcome, which is to successfully defend the client against legal charges.

Question 20

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

Accepted Answer

The answer of What is the average time a loaf...

Quiz 7: Process Selection, Design, and Analysis

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

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?

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

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.

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

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

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 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 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?

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

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?

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

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

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

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?

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?

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

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

A legal defense preparation is an example of a project.

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?