Test Bank For Operations Management In The Supply Chain Decisions & Cases 7th Edition By Roger

Test Bank For Operations Management In The Supply Chain Decisions & Cases 7th Edition By Roger

Chapter 6 Process-Flow Analysis Answer Key

Multiple-Choice Questions

1. In the process view of business, which of the following should be identified when defining the system?
A. Interconnected processes across functional areas.
B. The process flow analysis approach to be used.
C. Only the operations function.
D. The vertical nature of the organizational design.
LO: 6.2
Topic: The Process View of Business
Difficulty: 3 Hard
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: The process view means viewing a business as a system consisting of a collection of interconnected processes connecting functions.

2. If I denotes the average inventory in the system, T denotes the average throughput time, and R denotes the average flow rate of the system, then by Little’s Law,
A. I = T/R.
B. T = I + R.
C. I = R/T.
D. R = I/T.

LO: 6.5
Topic: Measuring Process Flows
Difficulty: 3 Hard
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: If I = T x R, then R = I/T.

3. If a factory has 100,000 units of materials in the system and if the average flow rate of the system is 5,000 units per day, then according to Little’s Law, the average throughput time is
A. 0.5 days.
B. 20 days.
C. 0.05 days.
D. 100 days.

LO: 6.5
Topic: Measuring Process Flows
Difficulty: 2 Moderate
AACSB: Application of knowledge
Bloom’s: Apply
Feedback: 100,000 / 5,000 = 20.

4. A numerically controlled machining center has an average processing capacity of 5,000 units per day. It receives an average of 3,000 units of inventory from another machining center, and it has to supply an average of 1,000 units of finished goods to the packaging section. Assuming that the company incurs a significant cost for carrying finished goods supplied to the packaging section, the flow rate of the machining process is
A. 3,000 units per day.
B. 5,000 units per day.
C. 1,000 units per day.
D. none of the above.

LO: 6.5
Topic: Measuring Process Flows
Difficulty: 2 Moderate
AACSB: Application of knowledge
Bloom’s: Apply
Feedback: The flow rate is the minimum of supply, demand, or capacity. In this case demand is 1,000 while supply and capacity are higher.

5. Which of the following would NOT be changed due to process flow analysis?
A. Raw materials
B. Product or service design
C. Job design
D. Customers
LO: 6.4
Topic: Process Flow Analysis as Asking Questions
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Materials, products, jobs can all be changed, but changing customers is not typically an option.

6. The first step in process flowcharting is to
A. draw the flowchart.
B. break the process down into blocks.
C. assemble an appropriate team to do the flowcharting.
D. select an appropriate transformation process for analysis.
LO: 6.3
Topic: Process Flowcharting
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: The first step or principle is to identify and select a relevant process—one that offers potential performance gains.

7. One step in process flow analysis is to describe the existing process. If a new system is being developed (there is no existing system),
A. this step is simply omitted.
B. process flow analysis cannot be performed.
C. a sociotechnical design must be used.
D. the analysis must include a hypothetical process for comparison.
LO: 6.4
Topic: Process Flow Analysis as Asking Questions
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: Process flow analysis can be and is done on new processes, but without an existing process to chart, this step is skipped.

8. Which of the following statements about Little’s Law is NOT correct?
A. Little’s Law cannot be applied to service operations.
B. Little’s Law relates the average number of units in the system to average throughput time and average flow rate.
C. Little’s Law includes processing and waiting time.
D. Little’s Law assumes that the system is in steady state.
LO: 6.5
Topic: Measuring Process Flows
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Little’s law can be applied to service operations, especially waiting line problems.

9. A diamond symbol in a flowchart indicates
A. evaluation with more than one possible outcome.
B. decision.
C. both (a) and (b).
D. neither (a) nor (b).
LO: 6.3
Topic: Process Flowcharting
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: The diamond represents a decision or evaluation point, or describes a required condition and splits the process.

10. What does a square or rectangle symbol indicate in a flowchart?
A. Operation
B. Inspection
C. Storage
D. Delay
LO: 6.3
Topic: Process Flowcharting
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: A process box represents an operational step or activity.

11. Analysis of the flow of information
A. is necessary only if management wants tight control of the system.
B. is more important than materials flow.
C. should always accompany an analysis of materials flow.
D. is of concern only to service industries.

LO: 6.4
Topic: Process Flow Analysis as Asking Questions
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Material or customer flow (for services) is a common starting place, but analysis should also include the flow of information and often the flow of money.

12. Which of the following is NOT one of the four principles of process redesign?
A. Organize around outcomes, not tasks.
B. Have the people who do the work process their own information.
C. Eliminate unnecessary steps in the process.
D. Automate the remaining steps in the process.

LO: 6.6
Topic: Process Redesign
Difficulty: 3 Hard
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: In addition to A, B, and C, the fourth principle of process redesign is to put the decision point where the work is performed and build control into the process.