Question 1

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 uncontrolled; storage is a planned part of a process.
D)  Delays require control; storages does not.E) A) and B)
F) A) and C)

Question 2

Inventory held due to bottlenecks in a process causes:

Accepted Answer

A)  Increased storage requirements
B)  Quality issues
C)  Increased labor costs
D)  All of theseE) A) and B)
F) A) and C)

Question 3

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

Accepted Answer

A)  Activities
B)  Inputs/Outputs/Flows
C)  Process Structure
D)  Management Policies.E) None of the above
F) B) and D) C

Question 4

Which of the following is NOT a basic activity type in processes?

Accepted Answer

A)  Delay
B)  Operation
C)  Reporting
D)  StorageE) B) and D)
F) A) and B)

Question 5

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.E) None of the above
F) A) and B)

Question 6

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.E) C) and D)
F) All of the above D

Question 7

Continual improvement of processes is important because:

Accepted Answer

A)  Competitors are improving their processes.
B)  Customer preferences change over time.
C)  Technology is constantly changing.
D)  All of these.E) C) and D)
F) A) and D)

Question 8

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 4E) B) and C)
F) None of the above

Question 9

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 percentE) B) and C)
F) A) and C)

Question 10

The total time that it takes to get one unit through a process is called:

Accepted Answer

A)  Flow time
B)  Cycle time
C)  Throughput time
D)  Wait timeE) A) and B)
F) A) and C)

Question 11

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.E) A) and B)
F) All of the above

Question 12

Subcontracting 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.E) All of the above
F) None of the above B

Question 13

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.E) B) and C)
F) A) and D)

Question 14

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.E) B) and D)
F) B) and C)

Question 15

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.E) B) and C)
F) A) and D)

Question 16

Joe Jones,plant manager at Waco Industries,told a friend that if it was necessary,his plant could produce 1,000 items a day if all conditions were just right.Joe is describing his plant's:

Accepted Answer

A)  Effective capacity.
B)  Yield rate.
C)  Utilization.
D)  Maximum capacity.E) A) and B)
F) C) and D)

Question 17

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 basic activity types in a process?

Accepted Answer

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

Question 18

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.E) A) and B)
F) A) and C)

Question 19

Which two of the following effects directly result from bottlenecks?

Accepted Answer

A)  Increase in costs and increase in defects.
B)  Increase in output and increase in lead-times.
C)  Decrease in inspections and increase in costs.
D)  Decrease in output and increase in lead-times.E) C) and D)
F) B) and C)

Question 20

Floor space used to store items to be inspected belongs to which of the following elements of a process?

Accepted Answer

A)  Activities
B)  Inputs/outputs/flows
C)  Process structure
D)  Management policiesE) None of the above
F) B) and D)

Exam 3: Managing Processes and Capacity

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

Correct AnswerverifiedShow Answer

Inventory held due to bottlenecks in a process causes:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedC

Which of the following is NOT a basic activity type in processes?

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

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 AnswerverifiedD

Continual improvement of processes is important because:

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

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

The total time that it takes to get one unit through a process is called:

Correct AnswerverifiedShow Answer

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

Subcontracting is typically considered at what time horizon when doing capacity planning?

Correct AnswerverifiedB

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Joe Jones,plant manager at Waco Industries,told a friend that if it was necessary,his plant could produce 1,000 items a day if all conditions were just right.Joe is describing his plant's:

Correct AnswerverifiedShow Answer

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 basic activity types in a process?

Correct AnswerverifiedShow Answer

Which of the following actions will NOT increase output?

Correct AnswerverifiedShow Answer

Which two of the following effects directly result from bottlenecks?

Correct AnswerverifiedShow Answer

Floor space used to store items to be inspected belongs to which of the following elements of a process?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified