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Chapter 7—Process Selection, Design, and Analysis
Multiple Choice
1. Ships, weddings, and estate planning are examples of _____ goods and services.
a.
make-to-order
b.
assemble-to-order
c.
make-to-stock
d.
continuous flow
2. Subway’s sandwich process is best described as:
a.
custom or make-to-order.
b.
option or assemble-to-order.
c.
standard or make-to-stock.
d. a value (supply) chain.
3. Dell computers and travel agent services are examples of _____ goods and services.
a.
Custom
b.
Option
c.
Standard
d.
processed
4. Appliances and iPods are examples of _____ goods.
a.
Custom
b.
Option
c.
Standard
d.
assemble-to-order
5. An accounting firm specializing in standard EZ tax returns filed online with a similar sequence
of steps is best described as what type of process?
a.
Project
b.
Job shop
c.
Flow shop
d.
Continuous flow
6. A women’s beauty salon specializing in hair coloring is best described as a:
a. project.
b. job shop.
c. flow shop.
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d. continuous flow.
7. Which of the following type of process is most likely to be used by a manufacturing firm that
produces a standardized product, not made of discrete parts, with little to no customization, and
has a high volume of demand?
a.
Project
b.
Job shop
c.
Flow shop
d.
Continuous flow
8. _____ processes are organized around particular types of general-purpose equipment that are
flexible and capable of customizing work for individual customers
a.
System
b.
Job shop
c.
Flow shop
d.
Continuous flow
9. Automobile factories and hospital laboratory work are examples of:
a.
projects.
b.
job shop processes.
c.
flow shop processes.
d.
continuous flow processes.
10. What type of process would a paper mill most likely use?
a.
Project
b.
Job shop
c.
Flow shop process
d.
Continuous flow process
11. All of the following are the phases of a product's life cycle EXCEPT:
a.
introduction.
b.
inception.
c.
maturity.
d.
decline.
12. The decisions for the product-process matrix include all the following EXCEPT:
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a.
volume of demands.
b.
range of products.
c.
pathways.
d.
type of goods.
13. _____ services offer customers broad freedom to select the pathways that are best suited for
their immediate needs and wants from many possible pathways through the service delivery
system.
a.
Provider-routed
b.
Customer-routed
c.
Option-oriented
d.
Standard
14. Using the service-positioning matrix, a limited number of customer pathways and highly
repeatable service encounter activity sequences would best relate to:
a.
being below the diagonal.
b.
continuous flow processes.
c.
customer-routed services.
d.
provider-routed services.
15. A(n) _____ is a group of tasks needed to create and deliver an intermediate or final output.
a.
process
b.
activity
c.
value chain
d.
prototype
16. Which of the following is NOT a major activity in designing a goods-producing or service-
providing process?
a.
Utilizing reengineering methods
b.
Designing value street map for the current process
c.
Developing process performance criteria
d.
Defining appropriate performance measures
17. Which of the following statement is TRUE about a process map (flowchart)?
a.
It does not have boundaries.
b.
It does not include information flow.
c.
It is often used as a baseline to describe how a process is performed.
d.
It must include a line of customer visibility.
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18. Which is the correct order of hierarchy of process design?
a.
Activity, task, process, value chain
b.
Value chain, process, task, activity
c.
Process, value chain, activity, task
d.
Value chain, process, activity, task
19. Which one of the following major activities is NOT one of the six major activities to design a
goods-producing or service-providing process?
a.
Define the purpose and objectives of the process.
b.
Create a detailed process or value stream map that baselines current performance.
c.
Use the product life cycle for each good or service to create a future state process map.
d.
Select the appropriate equipment and technology.
20. Transferring material between two non-adjacent workstations, waiting for service, and
requiring multiple approvals are examples of:
a.
a value stream.
b.
a process map.
c.
non-value-added activities.
d.
a service blueprint.
21. Which of the following is LEAST related to value stream mapping?
a.
Non-value-added activity
b.
Time
c.
Cost
d.
Reengineering
22. Which of the following is NOT a common process design improvement strategy?
a.
Increasing revenue
b.
Decreasing agility
c.
Decreasing cost
d.
Decreasing process flow time
23. The lowest resource utilization is usually found in a(n) _____ process.
a.
job shop
b.
flow shop
5
c.
continuous flow
d.
assembly line
24. A manufacturing firm produces a few standardized products in high volumes in a fixed
processing sequence that operates 24 hours a day and 7 days a week. The forecast of volume is
reasonably accurate. The firm is most likely to use the _____ process.
a. project
b. job shop
c. flow shop
d. continuous flow
25. _____is the fraction of time a workstation or individual is busy over the long run.
a. Utilization
b. Cycle time
c. Throughput
d. Turnaround time
26. An automobile emission testing center has six (6) inspectors and tests 50 vehicles per hour.
Each inspector can inspect twelve (12) vehicles per hour. What is the center's utilization?
a. Less than 60 percent
b. More than 60% but less than or equal to 70%
c. More than 70% but less than or equal to 80%
d. More than 80% but less than or equal to 90%
27. An order fulfillment process normally operates two shifts a day, six days per week. Under
normal conditions, 380 orders can be processed per shift. What is the weekly capacity?
a. More than 1000 but less than or equal to 2000
b. More than 2000 but less than or equal to 3000
c. More than 3000 but less than or equal to 4000
d. More than 4000
28. An automobile emissions testing center has six (6) inspectors and tests 50 vehicles per hour.
Each inspector can inspect twelve (12) vehicles per hour. If the center wants a utilization of 90%,
how many inspectors are required?
a. Two
b. Three
c. Four
d. Five
6
29. An automobile emission testing center has six (6) inspectors and tests 50 vehicles per hour.
What should the service rate be in order to achieve 90% utilization?
a. Less than 5 vehicles per hour
b. More than 5 but less than or equal to 10 vehicles per hour
c. More than 10 but less than or equal to 15 vehicles per hour
d. More than 15 but less than or equal to 20 vehicles per hour
30. What is the implied service rate per service-counter employee at an airport automobile rental
counter if customer demand is 36 customers per hour, two service-counter employees are on duty,
and their labor utilization is 75%?
a. More than 5 but less than or equal to 10 customers per hour
b. More than 10 but less than or equal to 15 customers per hour
c. More than 15 but less than or equal to 20 customers per hour
d. More than 20 customers per hour
31. What is the implied service rate at a bank teller's window if demand is 26 customers per hour
and the bank staffs are 3 tellers with an average utilization of 80%?
a. Less than 5 customers per hour
b. More than 5 but less than or equal to 10 customers per hour
c. More than 10 but less than or equal to 15 customers per hour
d. More than 15 but less than or equal to 20 customers per hour
32. How many computer repair troubleshooters should be on duty from 8:00 p.m. to midnight if
total demand during that period is 15 calls? The service rate is five (5) calls per hour and the
target utilization is 90%.
a. Two
b. Three
c. Four
d. Five
33. A company is able to process 100 customer statements (bills) per day per processing clerk. It
has 250 customer statements to process per day. How many full-time processing clerks are
needed if the company wants a processing-clerk utilization rate as close to 0.80 as possible?
a. Two
b. Three
c. Four
d. Five
7
34. The Department of Motor Vehicle (DMV) testing center has ten (10) testers who test 75
drivers per day. What would the implied service rate need to be in order to achieve 85%
utilization?
a. Less than 5 drivers per day per tester
b. More than 5 but less than or equal to 10 drivers per day per tester
c. More than 10 but less than or equal to 15 drivers per day per tester
d. More than 15 but less than or equal to 20 drivers per day per tester
35. The Department of Motor Vehicle (DMV) testing center has six (6) testers who test 50 drivers
in total per day. Each tester can test ten (10) drivers per day. What is the center's utilization?
a. More than 60% but less than or equal to 70%
b. More than 70% but less than or equal to 80%
c. More than 80% but less than or equal to 90%
d. More than 90 percent
36. The Department of Motor Vehicle (DMV) testing center currently has six (6) testers who test
68 drivers per day. Each tester can test twelve (12) drivers per day. Testers are complaining about
being too busy and the center being understaffed. In order to achieve an average of 80%
utilization of the testers, how many testers should be added at the center?
a. One
b. Two
c. Three
d. Four
37. For a Marriott hotel call center, the expected service rate was 3.0 minutes per telephone call
per customer service representative (CSR). With 3 telephone CSRs on-duty during the 6:30 to
7:00 a.m. time period, and assuming a 90% target CSR labor utilization rate, how many telephone
calls can these 3 CSRs handle during this time period?
a. More than 5 but less than or equal to 10 customers per hour
b. More than 10 but less than or equal to 15 customers per hour
c. More than 15 but less than or equal to 20 customers per hour
d. More than 20 customers per hour
38. An automobile emission testing center tests 50 vehicles per hour. Each inspector can inspect
one vehicle every four minutes. If the center wants a utilization of 90%, how many inspectors are
required?
a. Two
b. Three
8
c. Four
d. Five
39. What is the implied service rate per service-counter employee at an airport automobile rental
counter if the customer demand is 36 customers per hour, two service-counter employees are on
duty, and their labor utilization is 90%?
a. More than 10 but less than or equal to 12 customers/hour/employee
b. More than 12 but less than or equal to 14 customers/hour/employee
c. More than 14 but less than or equal to 16 customers/hour/employee
d. More than 16 customers/hour/employee
40. A big city automobile quick oil change store can process 20 vehicles per hour over its
multiple bays. Each mechanic can change the oil and do other related tasks at a rate of one car
every 20 minutes. If the center wanted a target labor utilization of 90%, how many mechanics
would they require?
a. More than 4 but less than or equal to 6
b. More than 6 but less than or equal to 8
c. More than 8 but less than or equal to 10
d. More than 10
41. 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
42. 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
43. 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
9
c. More than 4 but less than or equal to 5 days
d. More than 5 days
44. 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
45. 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
46. 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
47. 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
48. 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
10
d. More than 30 but less than or equal to 40
49. 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
50. 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
51. 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.
True/False Questions
1. A custom good or service is produced in anticipation of demand.
2. 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.
3. Projects are often used for standardized products and not for custom goods and services.
4. Make-to-stock goods and services are made according to a fixed design, and the customer has
no options from which to choose.
5. Standard goods are made in anticipation of customer demand and stocked in inventory and
therefore, are usually available,
6. A legal defense preparation is an example of a project.
7. Flow shop processes are more rigid and highly specialized than continuous flow processes.
8. Job shop processes use flexible, general purpose equipment that is capable of customizing
work for individual customers.
9. The product-process matrix works well for both goods and services.
10. In using the product-process matrix, the most appropriate match between products and
processes occurs along the diagonal of the matrix.
11. Service-positioning matrix is a model that describes the alignment of process choice with the
characteristics of the manufactured good.
12. A company can differentiate itself from its competitors by positioning itself along the
diagonal of the product-process matrix.
13. A pathway is a route that a product takes in a job shop.
14. In a customer-routed service, customers follow a very small number of possible and
predetermined pathways through the service system.
15. The service-positioning matrix focuses on the service encounter level rather than the overall
design of the service system.
16. Service-encounter repeatability provides a measure analogous to product volume for goods-
