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CHAPTER 4
21) The majority of the total operating budget for most organizations is:
C) supply chain costs.
22) A set of logically related tasks or activities performed to achieve a defined business outcome is a:
A) process.
23) A set of tasks or activities that addresses the main value-added activities of an organization is a:
B) primary process.
24) Which of the following statements BEST describes current thinking regarding processes?
D) Developing superior business processes requires a cross-functional and cross-organizational perspective.
25) Mapping does NOT:
C) provide a detailed view of all elements external to the process.
26) An arrow in a process map represents a:
A) move activity.
27) Which tool should be used to track the movement of a customer’s complaint from one department to the next until it is resolved?
B) swim lane map
28) A car wash services 200 customers in a 4 hour span on a lovely Saturday afternoon. The car wash employs 5 washers at $6 per hour. An appropriate measure of productivity is:
D) 1.7 cars/$.
29) A car wash services 200 customers in an hour on a lovely Saturday afternoon. The car wash employs 5 washers at $6 per hour and uses $50 of water and $5 of electricity per hour. An appropriate measure of productivity is:
B) 2.35 cars/$.
30) A professor is expected to cover 16 chapters in an operations management text each semester. One semester the professor dismisses class 30 minutes early every Monday and Friday and is able to cover only 12 chapters. What is the professor’s efficiency?
A) 75%
31) A maintenance worker maintains an alibi sheet of all work activities performed in an 8 hour shift. If the work standard is such that 90% efficiency is expected, what is the actual amount of time that should be documented?
C) 7.2 hours
32) A man in midlife crisis places his order for a custom chopper from OC Choppers on September 1, but the work on the bike doesn’t actually begin until October 1. The actual work on the bike, from design, through fabrication and assembly takes the entire month of October. The entire month of November is spent learning to ride a trainer bike, adding another garage bay to the house, and updating his will. Finally on November 30, the customer takes possession of his dream chopper and happily smokes his tires out of the lot and rides back to Oklahoma. This period of 91 days, besides being labeled “the longest three months of his life” would be more accurately labeled:
C) cycle time.
33) It takes one day for Peter Gibbons to complete a TPS report and attach the cover sheet. During that day, Peter spends about 15 minutes a day performing actual work and the other 7 hours and 45 minutes spacing out. Which of the following statements is correct?
D) Peter’s percent value-added time is just over 3%.
34) Which of the following approaches to process improvement could be described as competitive benchmarking?
C) Employees at XEROX purchase a Canon copier and take it apart to get design ideas for their next generation of copiers.
35) In statistical terms, a process that achieves Six Sigma quality will generate about:
C) three defects per million opportunities.
36) Green Belts have:
D) more Six Sigma training than Team Members but less Six Sigma training than Black Belts.
37) Which of these steps is NOT part of the Six Sigma process sequence?
A) design
38) When constructing a fishbone diagram, brainstorming takes place during the:
D) open phase.
39) Which two continuous improvement tools are most similar in appearance?
B) Pareto chart and histogram
40) Every morning the married couple waged a war over the available laptop computer. Jeff was always eager to get started on the task at hand but Liza felt the need to first download her podcasts, which infuriated Jeff. He decided to track the time he spent waiting for podcasts to download every day for a month to see whether things were getting worse. The best tool for displaying these results to the divorce court judge would be a:
D) run chart.
41) Which of these continuous improvement tools would be best suited for showing all of the steps required to change your major to operations management?
A) process map
42) When should a process be an art and not a science?
C) when the process is research and development
43) The procedure of rethinking and radical redesign of business processes to achieve dramatic organizational improvements is called:
D) business process reengineering.
44) Which of these SCOR model flows moves in the opposite direction from the others?
B) return
45) Which of these elements of the SCOR model at level 1 does NOT have a direct connection with customer processes?
B) make
46) Which of these statements about the SCOR model is BEST?
C) The model makes provisions for different levels of customization.
47) Which of these statements about SCOR level 3 processes is BEST?
A) They describe in detail the actual steps required to execute level 2 processes.