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chapter 7
Indicate whether the statement is true or false.
1. All processes and functional areas participate in the reengineering efforts of a firm.
a. True
b. False
2. Continuous flow processes are used to create custom goods and services.
a. True
b. False
3. In a process design, an activity refers to a group of tasks needed to create and deliver an intermediate or final output.
a. True
b. False
4. Utilization is the average time taken to complete one cycle of a process.
a. True
b. False
5. The most appropriate match between type of product and type of process occurs as one moves away from the diagonal
in the product-process matrix.
a. True
b. False
Indicate the answer choice that best completes the statement or answers the question.
6. A _____ is a characterization of product growth, maturity, and decline over time.
a. product life cycle
b. service blueprint
c. value stream map
d. product-process matrix
7. An automobile emissions testing center has three inspectors and tests 35 vehicles per hour. What should the service rate
be in order to achieve a target utilization of 95 percent?
a. More than 1 but less than or equal to 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
8. A wealth management company is able to process 300 customer statements per day. The average processing time per
statement is two days. What is the average number of statements the company has in process at any time?
a. 150
b. 200
c. 450
d. 600
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9. The average number of hotel rooms occupied per day during the month of March is 225. On average, each room is
booked for 2.5 days. What is the average number of new bookings that occur per day?
a. More than 50 but less than or equal to 100 rooms per day
b. More than 150 but less than or equal to 300 rooms per day
c. More than 350 but less than or equal to 500 rooms per day
d. More than 500 rooms per day
10. Which of the following is true of reengineering?
a. Reengineering increases the number of non-value-added activities in a process design.
b. Reengineering decreases throughput by adding process bottlenecks.
c. The goal of reengineering is to achieve quantum leaps in performance.
d. The aim of reengineering is to focus on quality by adding multiple approval requirements for all transactions.
11. _____ goods are generally produced and delivered as one of a kind or in small quantities, and are designed to meet
specific customers’ specifications.
a. Fixed
b. Make-to-order
c. Make-to-stock
d. Standard
12. _____ are organized around particular types of general-purpose equipment that are flexible and capable of
customizing work for individual customers.
a. Assembly line processes
b. Flow shop processes
c. Continuous flow processes
d. Job shop processes
13. _____ are large-scale, customized initiatives that consist of many smaller tasks and activities that must be coordinated
and completed to finish on time and within budget.
a. Projects
b. Flow shops
c. Continuous flow processes
d. Assembly line processes
14. A car rental company at a major airport on an average rents 70 percent of its fleet of 200 cars per day. The cars are
rented for an average of 4 days. What is the average number of rentals processed per day?
a. More than 10 but less than or equal to 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
15. In a process design, a _____ is a specific unit of work required to create an output.
a. task
b. matrix
c. value chain
d. portfolio
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16. Which of the following statements is true of the service-positioning matrix (SPM)?
a. The horizontal axis of the SPM reflects the number of pathways built into a service system design by management.
b. The SPM mainly focuses on the alignment of process choice with the characteristics of the manufactured good.
c. The SPM helps management design a service system that best meets the technical and behavioral needs of
customers.
d. The vertical axis of the SPM denotes the repeatability of a customer’s service-encounter activity sequence.
17. An accounting firm is capable of processing 20 income tax forms per day. The average number of forms in various
stages of processing at any one time in the firm is 64. What is the average processing time per income 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
c. More than 4 but less than or equal to 5 days
d. More than 5 days
18. A process _____ is the beginning or end of a process.
a. design
b. map
c. boundary
d. bottleneck
19. Non-value-added activities in a process design can be eliminated by:
a. using value stream mapping.
b. limiting the throughput of all processes.
c. adding multiple approval requirements for all transactions.
d. increasing process boundaries.
20. Which of the following statements is true of a process map?
a. It distorts the boundaries of a process.
b. Including non-value-added activities in a process map is one of the important responsibilities of operations
managers.
c. It documents how work either is or should be accomplished.
d. Adding multiple approval requirements for all transactions in a process map is a crucial part in the creation of the
process map.
21. Management strategies to improve process designs of services focus on:
a. decreasing process costs by adding multiple approval requirements for all transactions.
b. decreasing process bottlenecks by adding non-value-added activities to a process.
c. increasing product and service quality by reducing defects and service upsets.
d. increasing agility by making service processes mechanistic and controlled.
22. An automobile emissions testing center has six inspectors and tests 50 vehicles per hour. Each inspector can inspect 12
vehicles per hour. How many inspectors would the center require to have a target utilization of 90 percent?
a. Two
b. Three
c. Seven
d. Five
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23. In the context of process design, _____ is defined as the ability to produce the right types and amounts of products as
customer demand or preferences change.
a. flexibility
b. outsourcing
c. throughput
d. utilization
24. _____ goods are configurations of standard parts, subassemblies, or services that can be selected by customers from a
limited set.
a. Fixed
b. Custom
c. Option
d. Standard
25. 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 the labor utilization is 75 percent?
a. 18 customers per hour
b. 26 customers per hour
c. 20 customers per hour
d. 24 customers per hour
26. Which of the following is a difference between flow shops and job shops?
a. Unlike flow shops, job shops require little or no setup time.
b. Unlike flow shops, job shops are organized around a fixed sequence of process steps.
c. Unlike flow shops, job shops require frequent machine changeovers and delays.
d. Unlike flow shops, job shops produce many large-volume goods and services.
27. Which of the following is true of flow shop processes?
a. They produce low volumes of custom goods and services.
b. They are large-scale, customized initiatives with wide variations in tasks.
c. They have high setup or changeover time.
d. They are organized around a fixed sequence of activities and process steps.
28. A manufacturer’s average work-in–process inventory for Part #1234 of a particular car model is 1,250 parts. The
workstation produces parts at the rate of 150 parts per day. What is the average 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
29. A _____ is a symbol used in process maps to denote an input or arrival into a process.
a. diamond
b. bold-dashed line
c. double-headed arrow
d. rectangle
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30. Which of the following is true of custom goods?
a. They are usually available as they are stocked in inventory.
b. They are produced on demand.
c. They are made in anticipation of customer demand.
d. They are made according to a fixed design.
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Answer Key
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chapter 7