Question 1

Make/buy/subcontract 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) A) and B)
F) All of the above

Question 2

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 3

Which of the following forms of capacity can only be determined AFTER the completion of activities?

Accepted Answer

A)  Demonstrated capacity
B)  Maximum capacity
C)  Design capacity
D)  Effective capacityE) None of the above
F) B) and D)

Question 4

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 D)
F) B) and C) C

Question 5

You are given the following information. Which of these statements can you support with this information?

Accepted Answer

A)  More capacity needs to be added in the short term to improve performance in the system.
B)  We have to look at the rate at which jobs are being input into the shop.
C)  Our workforce is not working hard enough.
D)  We need to further investigate whether the problem is in input or capacity.E) B) and C)
F) C) and D)

Question 6

Little's Law suggests that the key to increased throughput is:

Accepted Answer

A)  Shorter flow times.
B)  Fewer defects.
C)  Eliminating waste.
D)  Increased inspection.E) A) and B)
F) All of the above

Question 7

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) A) and B)
F) C) and D)

Question 8

Which process activity is due to other factors (e.g., insufficient operating capacity, lack of material, equipment breakdowns) ?

Accepted Answer

A)  Delay
B)  Operation
C)  Storage
D)  Transportation
E)  InspectionF) A) and D)
G) C) and D) A

Question 9

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

Question 10

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) None of the above
F) B) 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 D)
F) B) and C)

Question 12

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

Question 13

One implication of increased utilization in a process is that:

Accepted Answer

A)  Process cost typically will go up.
B)  Waiting time typically will go up.
C)  Variance typically will be reduced.
D)  All of these.E) B) and D)
F) All of the above B

Question 14

A short-term, highly focused effort for improving a process is known as a:

Accepted Answer

A)  Jidoka Event.
B)  Kaizen Event.
C)  Chaebol Event.
D)  Poka-yoke Event.
E)  Enchilada Event.F) All of the above
G) A) and B)

Question 15

Government regulations belong to which of the following elements of a process?

Accepted Answer

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

Question 16

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

Accepted Answer

A)  Activities.
B)  Inputs and outputs.
C)  Flows, structure, resources, and metrics.
D)  All of these.E) A) and B)
F) B) and D)

Question 17

If a company can eliminate all sources of variance in a process:

Accepted Answer

A)  It will be able to operate at maximum capacity at all times.
B)  There will be no constraints in the process.
C)  Continuous improvement will not be necessary.
D)  None of these are true.E) A) and C)
F) A) and B)

Question 18

Most processes involve two basic types of flows:

Accepted Answer

A)  Information flows and physical flows.
B)  Product flows and decision flows.
C)  Information flows and operator flows.
D)  Physical flows and documentation flows.E) B) and C)
F) A) and B)

Question 19

An example of a short-term capacity decision is:

Accepted Answer

A)  Adding specialized labor.
B)  Installing new equipment.
C)  Adding new facilities.
D)  Adding low-skilled labor.E) C) and D)
F) A) and B)

Question 20

Kaizen Events are most appropriate for which type of operations problem?

Accepted Answer

A)  Customer-based
B)  Metrics-based
C)  Process-based
D)  Product-basedE) None of the above
F) A) and D)

Exam 3: Managing Processes and Capacity

Make/buy/subcontract is typically considered at what time horizon when doing capacity planning?

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

Which of the following forms of capacity can only be determined AFTER the completion of activities?

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 AnswerverifiedC

You are given the following information. Which of these statements can you support with this information?

Correct AnswerverifiedShow Answer

Little's Law suggests that the key to increased throughput is:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which process activity is due to other factors (e.g., insufficient operating capacity, lack of material, equipment breakdowns) ?

Correct AnswerverifiedA

Which of the following actions will NOT increase output?

Correct AnswerverifiedShow Answer

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

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

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 AnswerverifiedShow Answer

One implication of increased utilization in a process is that:

Correct AnswerverifiedB

A short-term, highly focused effort for improving a process is known as a:

Correct AnswerverifiedShow Answer

Government regulations belong to which of the following elements of a process?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

If a company can eliminate all sources of variance in a process:

Correct AnswerverifiedShow Answer

Most processes involve two basic types of flows:

Correct AnswerverifiedShow Answer

An example of a short-term capacity decision is:

Correct AnswerverifiedShow Answer

Kaizen Events are most appropriate for which type of operations problem?

Correct AnswerverifiedShow Answer

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C

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A

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B

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