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Chapter
4 Process Analysis
TRUE/FALSE
101. Which statement regarding learning rates is best?
a. A more complicated process offers more room for improvement.
b. A simpler process has a more pronounced learning rate.
c. Typically, the effect of each capital addition on the learning curve is significant.
d. Regardless of output volume, the estimate for the time required to produce the first unit is less important than the estimate of the learning rate.
102. The first unit of production takes 12 hours to produce and the learning rate is expected to be 80 percent. How long will it take to produce the fourth unit?
a. Less than or equal to 7.0 hours
b. Greater than 7.0 hours but less than or equal to 7.5 hours
c. Greater than 7.5 but less than or equal to 8.0 hours
d. Greater than 8.0 hours
103. The first unit of production takes 12 hours to produce and the learning rate is expected to be 80 percent. How long will it take to produce the eighth unit?
a. Less than or equal to 7.0 hours
b. Greater than 7.0 hours but less than or equal to 7.5 hours
c. Greater than 7.5 but less than or equal to 8.0 hours
d. Greater than 8.0 hours
104. The first unit of production takes 12 hours to produce and the learning rate is expected to be 80 percent. How long will it take to produce the sixth unit?
a. Less than or equal to 6.0 hours
b. Greater than 6.0 hours but less than or equal to 7.7 hours
c. Greater than 7.7 but less than or equal to 9.5 hours
d. Greater than 8.0 hours
105. The first unit of production takes 20 hours to produce and the learning rate is expected to be 90 percent. How long will it take to produce the fourth unit?
a. Less than or equal to 12.0 hours
b. Greater than 12.0 hours but less than or equal to 15.0 hours
c. Greater than 15.0 but less than or equal to 18.0 hours
d. Greater than 18.0 hours
106. The first unit of production takes 20 hours to produce and the learning rate is expected to be 90 percent. How long will it take to produce the eighth unit?
a. Less than or equal to 12.0 hours
b. Greater than 12.0 hours but less than or equal to 15.0 hours
c. Greater than 15.0 but less than or equal to 18.0 hours
d. Greater than 18.0 hours
107. The first unit of production takes 20 hours to produce and the learning rate is expected to be 90 percent. How long will it take to produce the twelfth unit?
a. Less than or equal to 11.0 hours
b. Greater than 11.0 hours but less than or equal to 13.0 hours
c. Greater than 13.0 but less than or equal to 15.0 hours
d. Greater than 15.0 hours
108. The manager of a supermarket would like to know which of several quality problems to address first. A tool that would be most helpful would be a:
a. checklist.
b. cause-and-effect diagram.
c. Pareto chart.
d. scatter diagram.
109. A process troubleshooter has to decide which problem to address first with his or her cause-and-effect diagram. The data analysis tool that will help him decide which problem to tackle first is a:
a. scatter diagram.
b. check sheet.
c. flowchart.
d. Pareto chart.
188
110. A manager of a fiberglass molding operation suspects that the number of process failures is related to the number of total units produced of a particular product. A tool most useful in this analysis would be a:
a. checklist.
b. cause-and-effect diagram.
c. Pareto chart.
d. scatter diagram.
111. Which one of the following techniques will help management trace customer complaints directly to the process involved?
a. Cause-and-effect diagram
b. Quality circles
c. Quality engineering
d. Specification management
112. The best data analysis tool for displaying the mean and standard deviation of a continuous data distribution is a:
a. Pareto chart.
b. bar chart.
c. checklist.
d. histogram.
113. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in at each table. The data collected from the past week’s diners appear in the following table.
Complaint
|
Frequency
|
Food taste
|
27
|
Food temperature
|
9
|
Order mistake
|
5
|
Slow service
|
19
|
Table/utensils dirty
|
47
|
Too expensive
|
9
|
Using a classic Pareto analysis, what categories comprise 80% of the total complaints?
a. Table/utensils dirty
b. Table/utensils dirty, Food taste, Slow service
c. Food taste, Food temperature, Order mistake, Slow service, Table/utensils dirty
d. Food taste, Food temperature, Order mistake, Slow service, Too expensive
114. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in at each table. The data collected from the past week’s diners appear in the following table.
Complaint
|
Frequency
|
Food taste
|
80
|
Food temperature
|
9
|
Order mistake
|
2
|
Slow service
|
16
|
Table/utensils dirty
|
47
|
Too expensive
|
4
|
Using a classic Pareto analysis, what categories comprise about 20% of the total complaints?
a. Order mistake, Too expensive, Food temperature, Slow service
b. Slow service, Order mistake,
c. Food taste, Food temperature, Slow service
d. Food taste, Table/utensils dirty
115. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in at each table. The data collected from the past week’s diners appear in the following table.
Complaint
|
Frequency
|
Food taste
|
80
|
Food temperature
|
9
|
Order mistake
|
2
|
Slow service
|
16
|
Table/utensils dirty
|
47
|
Too expensive
|
4
|
Using a classic Pareto analysis, what are the vital few complaints?
a. Table/utensils dirty
b. Slow service
c. Food taste, food temperature
d. Food taste, Table/utensils dirty
116. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in at each table. The data collected from the past week’s diners have been plotted and appear in the following graph. The number of complaints for each category is with each bar.
60
|
120%
| |||||
50
|
100%
| |||||
40
|
80%
| |||||
30
|
55
|
60%
| ||||
20
|
32
|
40%
| ||||
10
|
16
|
13
|
4
|
2
|
20%
| |
0
|
0%
|
temperature
|
dirty
|
service
|
Food
|
taste
|
expensive
|
mistake
| ||
Slow
|
Too
| |||||||
Food
|
Table/utensils
|
Order
| ||||||
Frequency
Percent
How was the value for the point represented by the triangle calculated?
a.
b.
32
c.
55 + 32 +16 +13 + 4 + 2
55 + 32
d.
55 + 32 +16 +13 + 4 + 2
191
117. The act of reproducing the behavior of a process using a model that describes each step of the process is called:
a. process analysis.
b. Pareto analysis.
c. benchmarking.
d. simulation.
118. Which of these questions is not one of the initial round questions typically used to uncover opportunities during a process redesign?
a. What is being done?
b. When is it being done?
c. Who is doing it?
d. Why are we doing it?
119. Which of these is NOT a general rule followed when engaged in a brainstorming session?
a. Ideas should be recorded by a facilitator.
b. The list of ideas should be as short as possible to make analysis easy.
c. Creativity should be encouraged.
d. The creative part of the mind should be encouraged at the expense of the judicial side.
120. A good brainstorming session has the characteristic of:
a. good judgment skills.
b. ability to think of creative ideas.
c. skill in identifying the best payoffs.
d. ability to analyze a process analytically.
121. Brainstorming sessions must have:
a. all participants together in the same room.
b. a mechanism for evaluation of the ideas as they are surfaced.
c. a means of implementing ideas as they are surfaced.
d. a way for all participants to communicate.
122. Benchmarking involves four basic steps, which are:
a. plan, do, check, and act.
b. planning, analysis, integration, and action.
c. search, check, systematize, and act.
d. find, do, change, and calibrate.
123. Xerox benchmarked its distribution system against that of L. L. Bean’s. This is an example of:
a. competitive benchmarking.
b. internal benchmarking.
c. functional benchmarking.
d. disaggregate benchmarking.
124. Benchmarking studies must have:
a. a direct competitor for comparison.
b. a team composed of at least one member from each department in the organization.
c. a team composed of at least one member from each department in the organization plus one customer of each process output.
d. quantitative goals.
125. An accounting firm realizes it is woefully inadequate at cultivating new clients. It is allowed to observe a rival firm perform the new-client cultivation process in hopes of gleaning improved methods it can adopt. This is an example of:
a. competitive benchmarking.
b. functional benchmarking.
c. internal benchmarking.
d. generic benchmarking.
126. An accounting professor realizes she is woefully inadequate at performing research. She discusses the art of research with a colleague and gains important insights that permit her to establish a research agenda. This is an example of:
a. competitive benchmarking.
b. functional benchmarking.
c. internal benchmarking.
d. generic benchmarking.
127. An accounting firm realizes it is woefully inadequate at cultivating new clients. It is allowed to observe a law firm perform the new-client cultivation process in hopes of gleaning improved methods it can adopt. This is an example of:
a. competitive benchmarking.
b. functional benchmarking.
c. internal benchmarking.
d. generic benchmarking.
128. A benchmarking team examines its own success with order delivery time and compares its metrics with a rival. This phase of the benchmarking process is called:
a. examination.
b. analysis.
c. integration.
d. action.
129. A benchmarking team meets for the first time and decides to try to improve its order delivery time and selects another firm as a benchmarking partner. This phase of the benchmarking process is called:
a. planning.
b. selection.
c. integration.
d. action.
130. A benchmarking team establishes goals and obtains support from the management team that agrees to provide resources for accomplishing the goals. This phase of the benchmarking process is called:
a. goal setting.
b. analysis.
c. integration.
d. action.
131. A benchmarking team develops improvement plans and team assignments. Once the plans are implemented it monitors progress and recalibrates benchmarks as improvements are made. This phase of the benchmarking process is called:
a. implementation.
b. analysis.
c. integration.
d. action.
132. Which one of the following statements about benchmarking is TRUE?
a. Benchmarking is useful only when a company compares itself against other companies.
b. Because of the power of benchmarking, specific plans of action are not necessary.
c. Benchmarking is the same as the plan-do-check-act cycle in continuous improvement.
d. Benchmarking focuses on setting quantitative goals for continuous improvement.
133. Which of these benchmarking metrics is NOT suitable for an order fulfillment process?
a. Finished goods inventory turnover
b. The company that actually makes the delivery to the customer
c. Percent of orders shipped on time
d. Value of plant shipments per employee
134. Which of these benchmarking metrics is NOT suitable for a support process?
a. Average employee turnover rate
b. Total cost of payroll processes per $1,000 revenue
c. The impression that applicants have as they submit applications
d. Number of accepted jobs as a percent of job offers
135. When managing processes, it is vital that:
a. attention is paid to competitive priorities and strategic fit.
b. design teams are allowed to function creatively and set their own charter.
c. design teams are not held accountable since their involvement ends once the new process rolls out.
d. the organization is not satisfied unless fundamental reengineering changes are made.
136. When managing processes, it is vital that:
a. design teams are allowed to function creatively and set their own charter.
b. the organization is not satisfied unless fundamental reengineering changes are made.
c. sound project management practices are used to implement the redesigned process.
d. people are redesigned at the same time the process is redesigned.
137. Good process management should include:
a. a mechanism for identifying what goes wrong and who is responsible.
b. a method for creating self-directed work teams.
c. at least half time dedicated to each employee’s self-actualization.
d. an infrastructure for continuous improvement.
FILL IN THE BLANK
138. ____________ is the documentation and detailed understanding of how work is performed and how it can be redesigned.
139. The first step of the systematic approach to process analysis is ____________.
140. Process ____________ is the boundary of the process to be analyzed.
141. A voluntary system by which employees submit their ideas on process improvements is called a(n) ____________.
142. ____________ are performance measures that are established for a process and the steps within it.
143. Gaps between actual and desired performance are called ____________.
144. A(n) ____________ means that a department focuses on its own tasks without understanding the role and processes of departments outside its own organizational boundaries.
200
145. A flowchart traces the flow of ____________, ____________, ____________, or
____________ through the various steps of a process.
146. A(n) ____________ is a table that lists and categorizes the steps in a process.
147. A(n) ____________ shape in a process chart represents a decision point in the process.
148. A special flowchart of a service process that shows which of its steps have high customer contact is a(n) ____________.
149. The ____________ in a service blueprint separates which steps are in view of the customer from those that aren’t.
150. ____________ is the process of creating labor standards based on the judgment of skilled observers.
151. The ____________ is a measurement found by multiplying the average time and the rating factor.
201
152. The time added to adjust for factors such as fatigue or equipment malfunction is called
____________.
153. Using the ____________, the analyst divides each work element into a series of micro-motions common to a variety of tasks.
154. ____________ involves estimating the proportion of time spent by people and machines on activities, based on a large number of observations.
155. The ____________ can be represented by a line called a learning curve.
156. A(n) ____________ is a form used to record the frequency of occurrence of certain product or service characteristics related to quality.
157. A(n) ____________ is a bar chart on which the factors are plotted in decreasing order of frequency along the horizontal axis.
158. A(n) ____________ would be a useful tool to determine the effect that the number of practice problems solved correctly has on the midterm score.
159. A(n) ____________ is a diagram that relates a key quality problem to its potential causes.
160. The process of gathering data regarding a process and sifting the data to deduce causes of problems is called ____________.
161. ____________ is the act of reproducing the behavior of a process using a model that describes each step of the process.
162. A simulation model goes one step further than possible with analysis tools, because it can show how the process performs ____________ over time.
163. A(n) ____________ is a method where a group of people, knowledgeable about the process and its disconnects, propose ideas for change in a rapid-fire manner.
164. ____________ is a continuous, systematic procedure that measures a firm’s products, services, and processes against those of industry leaders.
165. Once the benchmarking team has collected the data, the ____________ phase of the benchmarking study can begin.
166. The bursar’s office at your university decides to benchmark the collections department of a credit agency to improve their own collection rate. This is an example of
____________.
167. ____________ is based on comparison of processes with a direct adversary in industry.
168. ____________ involves using an organizational unit with superior performance as the ideal for other departments.
SHORT ANSWERS
169. What is the six-step blueprint for process analysis and what are the basic requirements for each step?
204
170. How can flowcharts and process charts be used to study and improve operations? Include descriptions of these two tools, the types of questions that can be addressed with them, and the extent to which teams can be used.
171. You have been hired as an external consultant to improve processes at a business. You are unfamiliar with exactly how the work is currently done but are intimately familiar with charting techniques and data analysis tools. What is a general sequence for use of these tools and why should you use them in the sequence you specify?
172. What are the four steps in a time study?
173. Explain why a sampling schedule is important in a work sampling study.
174. Compare and contrast the method of time study to the method of work sampling. What are the strengths and limitations of each, and for which applications are they best suited?
175. A manager of a company producing computer chips knows that in the early stages of production for a new product, the expenditures exceed receipts, whereas in the latter stages, the reverse is true. Give an explanation for this phenomenon.
176. An industrial engineer observes a brand new process and develops time standards for several of the manual components of the production line. What are the implications of learning effects on the time standards and the line balance? What could be done to address this situation?
177. What is a fishbone chart?
178. Create a flowchart that displays the proper sequential use of the major graphical tools in Chapter 4, “Process Analysis.” Include a note next to each tool that explains how the output of one tool is used as the input for the following tool.
179. What are the generic steps in any benchmarking study and what are examples of the three types of benchmarking?
PROBLEMS
180. An existing insurance application process requires manual keying of three different forms by a team of data entry operators. The three forms’ input times appear in the following table along with the numbers of each type of form anticipated for the coming year. A proposed refinement in the process would reduce the number of forms but make each slightly longer. This would be combined with a search of public records on the World Wide Web as necessary. These times and quantities appear in the lower half of the table. If the labor rate for the data entry operators is the same, which method is preferable?
Time to Input
|
Quantity
| |
rm
|
(minutes)
|
(forms/year)
|
t A – Existing Method
|
3
|
1,200,000
|
t B – Existing Method
|
3
|
1,200,000
|
t C – Existing Method
|
4
|
1,100,000
|
art A – Proposed Method
|
4
|
1,200,000
|
art B – Proposed Method
|
4
|
1,200,000
|
Web Search – Proposed Method
|
2
|
650,000
|
181. A discount store is experiencing an unacceptable number of dissatisfied customers leaving from the checkout process. Information from customer complaints about the checkout process was collected and is found in the following table. Construct a Pareto chart to identify the significant problems.
Problem Type
|
Total
|
Problems
| |
Cashier slow
|
15
|
Price check required
|
9
|
Line too long
|
22
|
Cashier unfriendly
|
4
|
182. Because a telephone customer service center has experienced several problems, it has begun to analyze the data from customer complaints. The first step was to construct the following table. Use this data to build a Pareto chart to help identify the “vital few” problems.
Process Failure
|
Total
|
Failures
| |
Person not available
|
5
|
Incorrect information given
|
12
|
Phone line busy
|
7
|
Long delay
|
39
|
Phone tree confusing
|
20
|
People unfriendly
|
7
|
183. The semester project came back from the copy store and to her horror, the project leader has just noticed that the left side y-axis of a key Pareto chart was cut off due to a printing error. The bar chart component uses the missing left side y-axis and the cumulative percentage line on the Pareto chart uses the right side y-axis. The project leader is pretty sure that the total number of observations in all combined categories is 200. Can you help her develop estimates of the counts for each of the five categories?
184. Develop a process chart for a manual car wash.
185. Develop a process chart for one of the following:
1) Researching and writing a paper for your Operations Management class;
2) Managing, developing and completing a team project for a Finance (or other) class;
3) Planning for your job interview process as you approach graduation (including resume preparation, developing interview skills, researching company backgrounds, etc.)
4) Studying and developing a process improvement plan for a business or other process you are familiar with (e.g., fast food restaurant, obtaining tickets to a university-sponsored event, dry cleaners, book purchases for next term, and the like)
186. A pilot work study has been conducted on a new operation with four work elements. The following times, in seconds, were obtained using a time study.
Observations
| ||||||
Element
|
1
|
2
|
3
|
4
|
5
|
RF
|
1
|
11
|
15
|
10
|
14
|
15
|
1.10
|
2
|
26
|
30
|
25
|
29
|
30
|
1.05
|
3
|
11
|
8
|
7
|
13
|
11
|
0.85
|
a. What is the normal time for this operation?
b. If an allowance of 20 percent is used, what is the standard time for this task?
187. An undergraduate business student studies diligently in the library late in the term in anticipation of an outstanding performance on her final exams. She asks a friend to spy on her at random intervals to determine what percentage of time she is actually studying. Over the course of three days, her friend records the following observations:
Times
|
Times Not
| ||
Observation Period
|
Studying
|
Studying
|
Observations
|
Monday
|
19
|
4
|
23
|
Tuesday
|
22
|
4
|
26
|
Wednesday
|
9
|
2
|
11
|
Based on this work sample, what percentage of time was the student actually studying?
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