Management Chapter 6 1 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

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subject Authors M. Johnny Rungtusanatham (Author), Roger Schroeder (Author), Susan Goldstein

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Chapter 06 - Process-Flow Analysis
6-1
1. In the process view of business, which of the following should be identified when defining
the system?
Difficulty: Hard
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:
Difficulty: Hard
3. If a factory has 100,000 units of materials in the system and if the average flow rate of the
system is 5000 units per day, then according to Little's Law, the average throughput time is:
Difficulty: Moderate
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Chapter 06 - Process-Flow Analysis
6-2
4. A numerically controlled machining center has an average processing capacity of 5000
units per day. It receives an average of 3000 units of inventory from another machining center
and it has to supply an average of 1000 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:
Difficulty: Moderate
5. Which of the following would NOT be changed due to process flow analysis?
Difficulty: Moderate
6. The first step in process flow analysis is:
Difficulty: Moderate
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Chapter 06 - Process-Flow Analysis
6-3
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):
Difficulty: Easy
8. Which of the following statements about Little's Law is NOT include?
Difficulty: Moderate
9. A diamond symbol in a flowchart indicates:
Difficulty: Easy
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Chapter 06 - Process-Flow Analysis
6-4
10. What does a square or rectangle symbol indicate in a flowchart?
Difficulty: Moderate
11. Analysis of the flow of information:
Difficulty: Moderate
12. Which of the following is NOT one of the four principles of process redesign?
Difficulty: Hard
13. The capacity of a process is determined by:
Difficulty: Hard
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Chapter 06 - Process-Flow Analysis
6-5
14. Which of the following is NOT a prerequisite to process flowcharting?
Difficulty: Easy
Difficulty: Hard
16. Process elements that might be changed when improving a process include:
Difficulty: Moderate
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Chapter 06 - Process-Flow Analysis
6-6
17. Which of the following statements regarding business process reengineering (BPR) is
Difficulty: Moderate
18. A service blueprint:
Difficulty: Moderate
19. A service blueprint is used to analyze and manage the service process because it involves:
Difficulty: Moderate
20. A process view emphasizes that it is important for a business to function as independent
silos.
Difficulty: Moderate
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Chapter 06 - Process-Flow Analysis
6-7
21. If there are multiple resources that process each transaction, then the process capacity is
the sum of all the individual capacities of the resources.
Difficulty: Hard
22. A process will generally have at least one bottleneck.
Difficulty: Hard
23. A line of visibility separates the parts of a service that come in direct contact with
customers from those that do not.
Difficulty: Easy
24. Process redesign tends to be cross-functional in nature and requires a complete overhaul
of work methods, flows, and information systems.
Difficulty: Easy
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Chapter 06 - Process-Flow Analysis
6-8
25. A store open 24 hours per day is interested in determining store traffic. They found that
customers arrive uniformly at the rate of 10 customers per hour. The store has a single worker
to process customers. The worker takes an average of 5 minutes to process a customer. If we
assume that every customer must be processed, what is the average number of customers in
the store?
Difficulty: Moderate
26. Provide two examples for each of the following categories of good questions to ask when
conducting process flow analysis:
a. What
b. Who
c. Where
d. When
e. How
Difficulty: Moderate
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Chapter 06 - Process-Flow Analysis
6-9
27. Provide two examples for each of the following categories of good questions to ask when
conducting process flow analysis.
a. Flow
b. Time
c. Quantity
d. Quality
e. Cost
Difficulty: Moderate
28. It takes 1 minute to remove a burger from the cooler. The burger is cooked for 2 minutes
and requires constant monitoring (the worker cannot do something else during cooking).
Cooked burgers are assembled into sandwiches with buns, lettuce, and tomato. This step takes
45 seconds per sandwich. Finally, packaging the sandwich takes about 10 seconds. What is
the bottleneck in the process? Why?
Difficulty: Moderate

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