Question 1

An example of a short-term capacity decision is:

Accepted Answer

A)  Adding specialized labor.
B)  Installing new equipment.
C)  Adding new facilities.
D)  Adding low-skilled labor. D

Question 2

A bottleneck activity in a process is generally the activity with:

Accepted Answer

A)  The smallest number of resources devoted to it.
B)  The least capacity.
C)  No delays in front of it.
D)  The highest cost.

Question 3

The following sequence shows four operations for a computer chip assembly process and the effective capacity of each. Step 1: 500 chips/hour Step 2: 250 chips/hour Step 3: 200 chips/hour Step 4: 550 chips/hour
Suppose the utilization is 70 percent of effective capacity.What is the actual output of the process?

Accepted Answer

A)  140 chips/hour
B)  350 chips/hour
C)  175 chips/hour
D)  200 chips/hour A

Question 4

You walk into a hair stylist shop.All stylists are busy and you sit in the waiting area.You are in which of the following process activities?

Accepted Answer

A)  Operation
B)  Delay
C)  Storage
D)  You are not in a process activity.

Question 5

Make/buy/subcontract is typically considered at what time horizon when doing capacity planning?

Accepted Answer

A)  Short-term
B)  Medium-term
C)  Long-term
D)  It is not part of the capacity planning process. B

Question 6

Adam Smith described his company's process as follows: "Under ideal conditions we can produce 10,000 units a day.However, our normal production is 6,000 units a day.Today, we actually produced 8,000 units." Which of the following is true?

Accepted Answer

A)  Utilization is 60 percent of maximum capacity.
B)  Yield is 133 percent of effective capacity.
C)  Utilization was 133 percent of effective capacity.
D)  All of these are true.

Question 7

If a company can eliminate all sources of variance in a process:

Accepted Answer

A)  It will be able to operate at maximum capacity at all times.
B)  There will be no constraints in the process.
C)  Continuous improvement will not be necessary.
D)  None of these are true.

Question 8

Which of the following statements about economies of scale is NOT true?

Accepted Answer

A)  One reason economies of scale occur is because fixed costs can be spread over more units of production as output increases.
B)  One reason economies of scale occur is because employees become more efficient as volume increases.
C)  Economies of scale refers to the fact that as volume increases, total cost of production decreases.
D)  Economies of scale may not exist at all levels of production.

Question 9

Which of the following statements best differentiates a delay from storage?

Accepted Answer

A)  There is no difference - they both refer to the same concept.
B)  Delays are planned activities; storages are not.
C)  Delays are due to other factors; storages are not.
D)  Delays require control; storages doe not.

Question 10

A short-term, highly focused effort for improving a process is known as a:

Accepted Answer

A)  Jidoka Event.
B)  Kaizen Event.
C)  Chaebol Event.
D)  Poka-yoke Event.
E)  Enchilada Event.

Question 11

A manager is currently unhappy with the capabilities of a particular process and wants to improve its capabilities.To accomplish this, the manager needs to focus on the process:

Accepted Answer

A)  Inputs, outputs, and flows.
B)  Activities.
C)  Management metrics.
D)  Structure.

Question 12

Which of the following actions will NOT increase output?

Accepted Answer

A)  Increasing capacity through physical additions.
B)  Outsourcing.
C)  Managing the flow of work into the system.
D)  Changing the processes to eliminate unnecessary steps.

Question 13

Which process activity is due to other factors (e.g., insufficient operating capacity, lack of material, equipment breakdowns) ?

Accepted Answer

A)  Delay
B)  Operation
C)  Storage
D)  Transportation
E)  Inspection

Question 14

One implication of increased utilization in a process is that:

Accepted Answer

A)  Process cost typically will go up.
B)  Waiting time typically will go up.
C)  Variance typically will be reduced.
D)  All of these.

Question 15

Under Juran's Law, whenever a problem occurs, what percentage of the time is the problem the result of a system/process error?

Accepted Answer

A)  15 percent
B)  50 percent
C)  85 percent
D)  100 percent

Question 16

Suppose you learn that a process has a very long waiting time.Which of the following would decrease the waiting time?

Accepted Answer

A)  Decrease utilization.
B)  Increase the coefficient of variation of job arrival times.
C)  Increase the coefficient of variation of job processing times.
D)  None of these would decrease waiting time.

Question 17

The following sequence shows four operations for a computer chip assembly process and the effective capacity of each.Which step is the bottleneck? Step 1: 500 chips/hour Step 2: 250 chips/hour Step 3: 200 chips/hour Step 4: 550 chips/hour

Accepted Answer

A)  Step 1
B)  Step 2
C)  Step 3
D)  Step 4

Question 18

Which of the following elements of a process most directly impacts or affects process capabilities?

Accepted Answer

A)  Activities
B)  Inputs/Outputs/Feedback
C)  Process Structure
D)  Management Policies.

Question 19

Process thinking causes managers to address critical process elements, including:

Accepted Answer

A)  If you don?t like the outcome, focus on the people.
B)  Processes are guidelines to thinking about to best staff activities.
C)  Processes drive measurement.
D)  If you don?t like the outcome, change the process.

Question 20

Most processes involve two basic types of flows:

Accepted Answer

A)  Information flows and physical flows.
B)  Product flows and decision flows.
C)  Information flows and operator flows.
D)  Physical flows and security flows.

Exam 3: Managing Processes and Capacity

An example of a short-term capacity decision is:

Correct Answer
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D

A bottleneck activity in a process is generally the activity with:

Correct Answer
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Correct Answer
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A

You walk into a hair stylist shop.All stylists are busy and you sit in the waiting area.You are in which of the following process activities?

Correct Answer
verified

Make/buy/subcontract is typically considered at what time horizon when doing capacity planning?

Correct Answer
verified
B

Adam Smith described his company's process as follows: "Under ideal conditions we can produce 10,000 units a day.However, our normal production is 6,000 units a day.Today, we actually produced 8,000 units." Which of the following is true?

Correct Answer
verified

If a company can eliminate all sources of variance in a process:

Correct Answer
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Which of the following statements about economies of scale is NOT true?

Correct Answer
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Which of the following statements best differentiates a delay from storage?

Correct Answer
verified

A short-term, highly focused effort for improving a process is known as a:

Correct Answer
verified

A manager is currently unhappy with the capabilities of a particular process and wants to improve its capabilities.To accomplish this, the manager needs to focus on the process:

Correct Answer
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Which of the following actions will NOT increase output?

Correct Answer
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Which process activity is due to other factors (e.g., insufficient operating capacity, lack of material, equipment breakdowns) ?

Correct Answer
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One implication of increased utilization in a process is that:

Correct Answer
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Under Juran's Law, whenever a problem occurs, what percentage of the time is the problem the result of a system/process error?

Correct Answer
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Suppose you learn that a process has a very long waiting time.Which of the following would decrease the waiting time?

Correct Answer
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The following sequence shows four operations for a computer chip assembly process and the effective capacity of each.Which step is the bottleneck? Step 1: 500 chips/hour Step 2: 250 chips/hour Step 3: 200 chips/hour Step 4: 550 chips/hour

Correct Answer
verified

Which of the following elements of a process most directly impacts or affects process capabilities?

Correct Answer
verified

Process thinking causes managers to address critical process elements, including:

Correct Answer
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Most processes involve two basic types of flows:

Correct Answer
verified

Exam 3: Managing Processes and Capacity

An example of a short-term capacity decision is:

Correct AnswerverifiedD

A bottleneck activity in a process is generally the activity with:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedA

You walk into a hair stylist shop.All stylists are busy and you sit in the waiting area.You are in which of the following process activities?

Correct AnswerverifiedShow Answer

Make/buy/subcontract is typically considered at what time horizon when doing capacity planning?

Correct AnswerverifiedB

Adam Smith described his company's process as follows: "Under ideal conditions we can produce 10,000 units a day.However, our normal production is 6,000 units a day.Today, we actually produced 8,000 units." Which of the following is true?

Correct AnswerverifiedShow Answer

If a company can eliminate all sources of variance in a process:

Correct AnswerverifiedShow Answer

Which of the following statements about economies of scale is NOT true?

Correct AnswerverifiedShow Answer

Which of the following statements best differentiates a delay from storage?

Correct AnswerverifiedShow Answer

A short-term, highly focused effort for improving a process is known as a:

Correct AnswerverifiedShow Answer

A manager is currently unhappy with the capabilities of a particular process and wants to improve its capabilities.To accomplish this, the manager needs to focus on the process:

Correct AnswerverifiedShow Answer

Which of the following actions will NOT increase output?

Correct AnswerverifiedShow Answer

Which process activity is due to other factors (e.g., insufficient operating capacity, lack of material, equipment breakdowns) ?

Correct AnswerverifiedShow Answer

One implication of increased utilization in a process is that:

Correct AnswerverifiedShow Answer

Under Juran's Law, whenever a problem occurs, what percentage of the time is the problem the result of a system/process error?

Correct AnswerverifiedShow Answer

Suppose you learn that a process has a very long waiting time.Which of the following would decrease the waiting time?

Correct AnswerverifiedShow Answer

The following sequence shows four operations for a computer chip assembly process and the effective capacity of each.Which step is the bottleneck? Step 1: 500 chips/hour Step 2: 250 chips/hour Step 3: 200 chips/hour Step 4: 550 chips/hour

Correct AnswerverifiedShow Answer

Which of the following elements of a process most directly impacts or affects process capabilities?

Correct AnswerverifiedShow Answer

Process thinking causes managers to address critical process elements, including:

Correct AnswerverifiedShow Answer

Most processes involve two basic types of flows:

Correct AnswerverifiedShow Answer

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D

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A

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B

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