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Chapter 4 Process Analysis Chapter 4 Process Analysis TRUE/FALSE 1. Process analysis is the documentation and detailed understanding of how work is performed and how it can be redesigned. Answer: True Reference: A Systematic Approach Difficulty: Easy Keywords: process analysis 2. The four core processes that merit thorough analysis are supplier relationship, new service/product development, order fulfillment, and service/product recovery. Answer: False Reference: A Systematic Approach Difficulty: Moderate Keywords: core process, process analysis 3. An employee suggestion system can be an effective method for identifying processes that need improvement. Answer: True Reference: A Systematic Approach Difficulty: Easy Keywords: employee suggestion system, process analysis 4. Performance measures that are established for a process are known as metrics. Answer: True Reference: A Systematic Approach Difficulty: Easy Keywords: metrics, performance measures 5. Process improvement teams that focus on processes that cut across departmental boundaries have the silo mentality. Answer: False Reference: A Systematic Approach Difficulty: Easy Keywords: silo, improvement teams, process analysis 6. Once a process is identified, defined, evaluated, and redesigned, the benefits of the process analysis cycle are realized. Answer: False Copyright ©2010 Pearson Education, Inc. Publishing as Prentice Hall 160

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Chapter 4

Chapter 4 ( Process Analysis

Chapter

4Process Analysis

TRUE/FALSE1. Process analysis is the documentation and detailed understanding of how work is performed and how it can be redesigned.

Answer: True

Reference: A Systematic ApproachDifficulty: Easy

Keywords: process analysis

2. The four core processes that merit thorough analysis are supplier relationship, new service/product development, order fulfillment, and service/product recovery.

Answer: FalseReference: A Systematic Approach

Difficulty: Moderate

Keywords: core process, process analysis

3. An employee suggestion system can be an effective method for identifying processes that need improvement.

Answer: TrueReference: A Systematic ApproachDifficulty: Easy

Keywords: employee suggestion system, process analysis4. Performance measures that are established for a process are known as metrics.

Answer: True

Reference: A Systematic ApproachDifficulty: EasyKeywords: metrics, performance measures

5. Process improvement teams that focus on processes that cut across departmental boundaries have the silo mentality.

Answer: FalseReference: A Systematic ApproachDifficulty: EasyKeywords: silo, improvement teams, process analysis6. Once a process is identified, defined, evaluated, and redesigned, the benefits of the process analysis cycle are realized.

Answer: FalseReference: A Systematic ApproachDifficulty: moderate

Keywords: process analysis cycle, implementation7. Flowcharts, service blueprints, and process charts are effective for documenting and evaluating processes.

Answer: TrueReference: Documenting the ProcessDifficulty: Easy

Keywords: flowchart, process documentation8. A service blueprint is a flowchart of a service process that shows which of its steps has high customer contact.

Answer: TrueReference: Documenting the Process

Difficulty: Moderate

Keywords: service blueprint, service process, flowchart9. Formal work measurement techniques estimate average times for each step in a process by relying on the judgment of skilled observers.

Answer: True

Reference: Work Measurement TechniquesDifficulty: Easy

Keywords: work measurement, labor standard, average process times10. Fatigue, rest, or unavoidable delays are factored into a work standard by the performance rating factor.

Answer: False

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: allowances, standard time, normal time, performance rating factor11. Elemental standard time data can help managers develop time standards for new work before production begins.

Answer: True

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: elemental standard data12. The predetermined data approach eliminates the need for time studies.

Answer: True

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: predetermined data approach, time studies13. A predetermined data approach to time standards can be completed before actual production begins.

Answer: True

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: predetermined data approach14. The predetermined data approach assumes that a sequence of motions will take the same amount of time regardless of the order in which they are performed.

Answer: True

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: predetermined data approach15. Work sampling can be used to estimate the proportion of time spent by people or machines on activities.

Answer: True

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: work sampling, proportion16. When using work sampling, the times of day when the analyst collects the sample data should be selected at random over the length of the study.Answer: True

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: work sampling, data collection17. A learning curve is a line showing the relationship between processing time and the cumulative quantity of a product or service produced.

Answer: True

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: learning curve analysis18. The learning curve for a process depends on the rate of learning and the actual or estimated time for the first unit processed.

Answer: True

Reference: Work Measurement Techniques

Difficulty: Moderate

Keywords: learning curve analysis

19. The best data analysis tool for recording which gas pump most customers use would be a checklist.

Answer: TrueReference: Evaluating PerformanceDifficulty: ModerateKeywords: data analysis, checklist

20. A histogram is a summarization of data measured on a yes-or-no basis.

Answer: FalseReference: Evaluating PerformanceDifficulty: ModerateKeywords: histogram, data measurement21. The general principle that 80% of a companys revenue is generated by 20% of its customers is known as the Pareto concept.

Answer: TrueReference: Evaluating Performance

Difficulty: Moderate

Keywords: Pareto chart, Pareto principle22. A scatter diagram is a graphical technique that shows whether two variables may be related.

Answer: TrueReference: Evaluating PerformanceDifficulty: Moderate

Keywords: scatter diagram, variables

23. A fishbone diagram identifies which category is most frequently observed out of all the categories for which you have data.

Answer: False

Reference: Evaluating PerformanceDifficulty: ModerateKeywords: fishbone diagram, cause-and-effect diagram24. Data snooping is the acquisition of external benchmarking data even when the external organization has not authorized a formal benchmarking agreement.

Answer: False

Reference: Evaluating PerformanceDifficulty: ModerateKeywords: data snooping

25. Simulation is an act of reproducing the behavior of a process using a model that describes each step of the process.

Answer: True

Reference: Evaluating PerformanceDifficulty: Moderate

Keywords: simulation, process model

26. A group of people, who are knowledgeable about the process and its disconnects, meets to propose ideas for change in a rapid-fire manner. Such a session is called a brainstorming session.

Answer: True

Reference: Redesigning the Process

Difficulty: EasyKeywords: brainstorming, process ideas

27. The only people who can provide input to a brainstorming session are members of the design team.

Answer: False

Reference: Redesigning the ProcessDifficulty: EasyKeywords: brainstorming, design team

28. Brainstorming sessions can be effectively conducted on the Internet using software that allows one person to see anothers ideas and build on them.

Answer: True

Reference: Redesigning the ProcessDifficulty: EasyKeywords: brainstorming, Internet software

29. The bursars office at a large state school sends a team to the bookstore on campus to see how they handle customers and process payments. This is an example of functional benchmarking.

Answer: False

Reference: Redesigning the ProcessDifficulty: Hard

Keywords: functional benchmarking, internal benchmarking30. Benchmarking by tracking the performance of a process over time is always available.

Answer: True

Reference: Redesigning the ProcessDifficulty: Moderate

Keywords: benchmarking, process time

31. Benchmarking is a continuous, systematic procedure that measures a firms products, services, and processes against those of industry leaders.

Answer: TrueReference: Redesigning the ProcessDifficulty: Moderate

Keywords: benchmarking, measure, industry leader

32. A great job of flowcharting and benchmarking a process is of only academic interest if the proposed changes are not implemented.

Answer: TrueReference: Managing ProcessesDifficulty: ModerateKeywords: process implementation33. Implementing a beautifully redesigned process completes the continuous monitoring and improvement process.

Answer: FalseReference: Managing ProcessesDifficulty: ModerateKeywords: process implementation, continuous process improvement MULTIPLE CHOICE34. Process analysis focuses on:a. how work is actually done.b. who is responsible for the customer.c. the customers needs.d. the number of steps in between supplier and customer.

Answer: a

Reference: Process Analysis Across the OrganizationDifficulty: EasyKeywords: process analysis35. Which of these is NOT a core process that managers would focus on for improvement opportunities?a. Supplier relationshipsb. New product/service developmentc. Order fulfillmentd. Employee training

Answer: d

Reference: A Systematic ApproachDifficulty: EasyKeywords: core process, opportunity identification 36. A voluntary system by which employees submit their ideas on process improvements is used in the:a. scope definition phase of process analysis.b. process redesign phase of process analysis.c. performance evaluation phase of process analysis.d. opportunity identification phase of process analysis.

Answer: d

Reference: A Systematic ApproachDifficulty: ModerateKeywords: employee suggestion system, opportunity identification

37. A voluntary system by which employees submit their ideas on process improvements is called:a. process contribution.b. a suggestion system.c. a brainstorming session.d. a Pareto system.

Answer: b

Reference: A Systematic ApproachDifficulty: Easy

Keywords: employee suggestion system

38. The step in process analysis that immediately follows the scope definition phase is the:a. document process phase.b. evaluate performance phase.c. redesign process phase.d. implement changes phase.

Answer: a

Reference: A Systematic Approach

Difficulty: Moderate

Keywords: scope definition, process documentation39. The step in process analysis that immediately follows the process documentation phase is the:a. define scope phase.b. evaluate performance phase.c. redesign process phase.d. implement changes phase.

Answer: b

Reference: A Systematic Approach

Difficulty: Moderate

Keywords: process documentation phase, evaluate performance phase40. The step in process analysis that immediately follows the performance evaluation phase is the:a. document process phase.b. define scope phase.c. redesign process phase.d. implement changes phase.

Answer: c

Reference: A Systematic Approach

Difficulty: Moderate

Keywords: performance evaluation, process redesign

41. A systematic approach to process analysis includes the step:a. reengineering.b. integration.c. order fulfillment.d. define scope.

Answer: d

Reference: A Systematic Approach

Difficulty: Easy

Keywords: define scope, process analysis, systematic approach42. An examination of strategic issues such as possible gaps between a processs competitive priorities and current competitive capabilities falls in the:a. document process phase of process analysis.b. evaluate performance phase of process analysis.c. redesign process phase of process analysis.d. identify opportunities phase of process analysis.

Answer: d

Reference: A Systematic ApproachDifficulty: ModerateKeywords: identify opportunities, strategic issues, gap, competitive priorities, competitive capabilities 43. The resources that management assigns to improving or reengineering the process should:a. outweigh the consequences.b. match the processs scope.c. be at risk for less time than the redesign takes.d. be less costly than the total downtime during redesign.

Answer: b

Reference: A Systematic Approach

Difficulty: Moderate

Keywords: resources, scope, process improvement, process reengineering44. If a process under analysis is extensive and cuts across several departmental lines, it may benefit from forming a(n):a. brainstorming team.b. benchmarking team.c. steering team.d. implementation team.

Answer: c

Reference: A Systematic ApproachDifficulty: ModerateKeywords: steering team

45. Performance measures such as average response times, repair times, and percent defective are referred to as:a. benchmarks.b. metrics.c. targets.d. tactics.

Answer: b

Reference: A Systematic ApproachDifficulty: Moderate

Keywords: metrics, performance measures

46. Gaps between actual and desired performance are termed:a. faults.b. metrics.c. opportunities.d. disconnects.

Answer: d

Reference: A Systematic ApproachDifficulty: Moderate

Keywords: performance gaps, disconnect47. Once the root causes of performance gaps have been discovered, it is necessary to:a. shift from analytical thinking to creative thinking.b. shift from creative thinking to analytical thinking.c. form a benchmarking team.d. form a steering team.

Answer: a

Reference: Redesigning the ProcessDifficulty: Moderate

Keywords: root cause, performance gap, analytical thinking, creative thinking48. Widespread participation in process analysis is essential not only because of the work involved but also because:a. employees tend to neglect their regular work duties, thus no one falls too far behind.b. it builds commitment.c. no one can analyze a process by himself.d. a silo mentality should prevail and this requires large numbers of workers.

Answer: b

Reference: A Systematic ApproachDifficulty: ModerateKeywords: process analysis, participation, commitment49. A flowchart traces the flow of all EXCEPT the following:a. information through a processb. customers through a processc. equipment through a processd. safety regulations through a processAnswer: d

Reference: Documenting the ProcessDifficulty: ModerateKeywords: flowchart, information, customers, equipment 50. A flowchart created at the strategic level of an organization should show:

a. core processes and their linkages.

b. details of a process as bracketed by its scope.

c. individual steps that may have been aggregated at a higher level of analysis.

d. areas that are seen and unseen by the customer.

Answer: a

Reference: Documenting the ProcessDifficulty: Moderate

Keywords: flowchart, strategic decision making51. When a process is high in divergence, it is likely to have:

a. few rectangle-shaped symbols.

b. many rectangle-shaped symbols.

c. few diamond-shaped symbols.

d. many diamond-shaped symbols.

Answer: d

Reference: Documenting the ProcessDifficulty: Moderate

Keywords: flowchart, flowchart symbols, divergence 52. Cross-functional coordination is at particular risk where:

a. there is low process divergence.

b. there are handoffs in the process.

c. functional silos exist.

d. it is not possible to create a flowchart.

Answer: b

Reference: Documenting the ProcessDifficulty: ModerateKeywords: handoff, coordination, cross functional coordination53. An effective tool for showing steps of a service process with a high level of customer contact is a:

a. Pareto chart.

b. flowchart.

c. service blueprint.

d. check sheet.

Answer: c

Reference: Documenting the ProcessDifficulty: ModerateKeywords: service blueprint, customer contact, process documentation tool54. A special feature that service blueprints often use to distinguish steps that are seen by the customer from those that are not seen by the customer is: a. separation using different pages.

b. a line of visibility.

c. a Pareto-type analysis.d. a separating using different pages.Answer: b

Reference: Documenting the ProcessDifficulty: Moderate

Keywords: service blueprint, customer, line of visibility55. A process chart activity that changes, creates, or adds something is a(n):

a. operation.

b. transportation.

c. inspection.

d. delay.

Answer: a

Reference: Documenting the ProcessDifficulty: EasyKeywords: process chart, symbol, operation56. A process chart activity that checks or verifies something but does not change it is a(n):

a. operation.

b. transportation.

c. inspection.

d. delay.

Answer: c

Reference: Documenting the ProcessDifficulty: Easy

Keywords: process chart, symbol, inspection57. Which one of the following statements concerning flowcharts is NOT true? a. Flowcharts can take many forms. b. It is helpful on flowcharts to label each step with process measurements such as cost, capacity, or total elapsed time. c. Flowcharts trace the flow of information, customers, equipment, employees, or materials through a process.

d. The dotted line of visibility separates activities subcontracted from those done in-house.

Answer: d Reference: Documenting the ProcessDifficulty: Moderate

Keywords: flow diagram, line of visibility58. Which one of the following groups of activities is likely to be shown on a process chart? a. Operation, inspection, delay

b. Operation, capital intensity, flow strategy

c. Transportation, material flow, physical layout

d. Storage, delay, personnel involved

Answer: a Reference: Documenting the ProcessDifficulty: Moderate

Keywords: process chart, activity, operation, inspection, delay

59. The five categories of activities (operation, transportation, inspection, delay, and storage) are used in which of the following methods of process analysis? a. Multiple-activity chart

b. Process chart

c. Capital budgeting

d. Flow diagram

Answer: b Reference: Documenting the ProcessDifficulty: ModerateKeywords: process chart, activitiy categories60. A process chart activity that occurs when something is put away until a later time is a(n):

a. storage.

b. transportation.

c. inspection.

d. delay.

Answer: a

Reference: Documenting the ProcessDifficulty: Easy

Keywords: process chart, activity, storage61. A professor can grade a quiz in 30 seconds. Over the course of an academic year he has 6 sections of a course with an average of 30 students with 10 quizzes in each section. If he is paid $40 an hour, how much is his annual quiz-grading labor cost to the university?

a. $60

b. $100

c. $600

d. $36,000

Answer: c

Reference: Documenting the ProcessDifficulty: Moderate

Keywords: annual labor cost

62. A professors graduate assistant can grade a quiz in 40 seconds. Over the course of an academic year he assists with 6 sections of a course with an average of 30 students with 10 quizzes in each section. If he is paid $8 an hour, how much is his annual quiz-grading labor cost to the university?

a. $60

b. $160

c. $576

d. $576,000

Answer: b

Reference: Documenting the ProcessDifficulty: Moderate

Keywords: annual labor cost

63. A professor can grade a quiz in 2 minutes. Over the course of an academic year he has 6 sections of a course with an average of 25 students with 10 quizzes in each section. If he is paid $40 an hour, how much is his annual quiz-grading labor cost to the university?

a. $250

b. $500

c. $1000

d. $2,000

Answer: d

Reference: Documenting the ProcessDifficulty: ModerateKeywords: annual labor cost

64. A welder can weld 2 angle irons together in 2 minutes. Over the course of an entire year she will assemble 1,000 units, each of which requires 3 such welds (i.e., welding two angle irons together is one step, and three such steps are needed per unit). If she is paid $25 an hour, how much is her annual welding labor cost?

a. $1,000

b. $1,250

c. $2,500

d. $3,000

Answer: c

Reference: Documenting the ProcessDifficulty: ModerateKeywords: annual labor cost65. A welder can weld 2 angle irons together in 2 minutes. Over the course of an entire year he will assemble 1,000 units, each of which requires 2 such welds (i.e., welding two angle irons together is one step, and two such steps are needed per unit). If he is paid $30 an hour, how much is his annual welding labor cost?

a. $250

b. $500

c. $1,000

d. $2,000

Answer: d

Reference: Documenting the ProcessDifficulty: ModerateKeywords: annual labor cost66. Highly customized job processes and processes that are highly divergent require the use of: a. the time study method.b. the elemental standard data approach.c. the predetermined data approach.d. the work sampling method.Answer: bReference: Work Measurement Techniques

Difficulty: ModerateKeywords: elemental standard data67. ________________ estimates the proportion of time spent by people or machines on different activities, based on randomized observations over time.

a. The time study method

b. The elemental standard data approach

c. The predetermined data approach

d. The work sampling method

Answer: d

Reference: Work Measurement Techniques

Difficulty: Moderate

Keywords: work sampling68. All of the following are steps in setting a time standard using the time study method EXCEPT:

a. consulting cost accounting data.

b. selecting the work elements.

c. determining the sample size.

d. timing the elements.

Answer: a

Reference: Work Measurement Techniques

Difficulty: Easy

Keywords: time study method69. ________________ uses a published database of normal times for a full array of micromotions that make up the elements of task being studied.

a. The time study methodb. The elemental standard data approachc. The predetermined data approachd. The work sampling methodAnswer: cReference: Work Measurement Techniques

Difficulty: Moderate

Keywords: predetermined data

70. Use the information in Scenario 4.1. What is the average time for this job element?

a. 15 seconds

b. 20 seconds

c. 25 secondsd. 30 seconds

Answer: c

Reference: Work Measurement Techniques

Difficulty: Easy

Keywords: time study, average time71. Use the information in Scenario 4.1. What is the normal time for this job element if the rating factor is 80%?

a. 15 seconds

b. 20 seconds

c. 25 seconds

d. 30 seconds

Answer: b

Reference: Work Measurement Techniques

Difficulty: ModerateKeywords: time study, normal time72. Use the information in Scenario 4.1. What is the standard time for this job element if the allowance for the process is 25%?

a. 15 seconds

b. 20 seconds

c. 25 seconds

d. 30 seconds

Answer: cReference: Work Measurement Techniques

Difficulty: ModerateKeywords: time study, standard time

73. Use the information in Scenario 4.2. What is the average time for this job element?

a. 15.06 seconds

b. 14.92 seconds

c. 13.42 seconds

d. 11.19 seconds

Answer: bReference: Work Measurement Techniques

Difficulty: Easy

Keywords: time study, average time74. Use the information in Scenario 4.2. What is the normal time for this job element if the rating factor is 75%?

a. 15.06 seconds

b. 14.92 seconds

c. 13.42 seconds

d. 11.19 seconds

Answer: dReference: Work Measurement Techniques

Difficulty: ModerateKeywords: time study, normal time75. Use the information in Scenario 4.2. What is the standard time for this job element if the allowance for the process is 20%?

a. 15.06 seconds

b. 14.92 seconds

c. 13.42 seconds

d. 11.19 seconds

Answer: c

Reference: Work Measurement Techniques

Difficulty: ModerateKeywords: time study, standard time

76. Garman observes a worker assembling peanut valves and records the data displayed in the table. What is the normal time for this job element if the worker is rated at 80%?Time (seconds)Observations

2010

2515

3012

3512

a. Less than 23 seconds

b. Greater than or equal to 23 seconds but less than 26 seconds

c. Greater than or equal to 26 seconds but less than 29 seconds

d. Greater than or equal to 29 seconds

Answer: aReference: Work Measurement TechniquesDifficulty: Moderate

Keywords: time study, normal time

77. Keith assembles peanut valves and the recorded data is displayed in the table. What is the normal time for this job element if he is rated at 75%?

Time (minutes)Observations

2.515

3.023

3.527

a. Greater than or equal to 3 minutes

b. Less than 3 minutes but greater than or equal to 2.6 minutes

c. Less than 2.6 minutes but greater than or equal to 2.2 minutes

d. Less than 2.2 minutes

Answer: cReference: Work Measurement TechniquesDifficulty: Easy

Keywords: time study, normal time

78. Use the information in Scenario 4.3. What is the normal time for job element #1?

a. Greater than or equal to 3 minutes

b. Less than 3 minutes but greater than or equal to 2.6 minutes

c. Less than 2.6 minutes but greater than or equal to 2.2 minutes

d. Less than 2.2 minutes

Answer: c

Reference: Work Measurement Techniques

Difficulty: Easy

Keywords: time study, normal time

79. Use the information in Scenario 4.3. What is the normal time for job element #2?

a. Greater than or equal to 3 minutes

b. Less than 3 minutes but greater than or equal to 2.6 minutes

c. Less than 2.6 minutes but greater than or equal to 2.2 minutes

d. Less than 2.2 minutes

Answer: b

Reference: Work Measurement Techniques

Difficulty: Easy

Keywords: time study, normal time

80. Use the information in Scenario 4.3. What is the normal time for job element #3?

a. Greater than or equal to 3 minutes

b. Less than 3 minutes but greater than or equal to 2.6 minutes

c. Less than 2.6 minutes but greater than or equal to 2.2 minutes

d. Less than 2.2 minutes

Answer: b

Reference: Work Measurement Techniques

Difficulty: Easy

Keywords: time study, normal time

81. Use the information in Scenario 4.3. What is the normal time for the entire job?

a. Greater than or equal to 10.0 minutes

b. Less than 10.0 minutes but greater than or equal to 8.5 minutes

c. Less than 8.5 minutes but greater than or equal to 7.0 minutes

d. Less than 7.0 minutes

Answer: c

Reference: Work Measurement Techniques

Difficulty: ModerateKeywords: time study, normal time

82. Use the information in Scenario 4.3. What is the standard time for the entire job?

a. Greater than or equal to 10.0 minutes

b. Less than 10.0 minutes but greater than or equal to 8.5 minutes

c. Less than 8.5 minutes but greater than or equal to 7.0 minutes

d. Less than 7.0 minutes

Answer: b

Reference: Work Measurement Techniques

Difficulty: Moderate

Keywords: time study, standard time

83. Use the information in Scenario 4.4. What is the normal time for job element #1?

a. Greater than or equal to 3 minutes

b. Less than 3 minutes but greater than or equal to 2.6 minutes

c. Less than 2.6 minutes but greater than or equal to 2.2 minutes

d. Less than 2.2 minutes

Answer: bReference: Work Measurement Techniques

Difficulty: Easy

Keywords: time study, normal time

84. Use the information in Scenario 4.4. What is the normal time for job element #2?

a. Greater than or equal to 3 minutes

b. Less than 3 minutes but greater than or equal to 2.6 minutes

c. Less than 2.6 minutes but greater than or equal to 2.2 minutes

d. Less than 2.2 minutes

Answer: cReference: Work Measurement Techniques

Difficulty: Easy

Keywords: time study, normal time

85. Use the information in Scenario 4.4. What is the normal time for job element #3?

a. Greater than or equal to 3 minutes

b. Less than 3 minutes but greater than or equal to 2.6 minutes

c. Less than 2.6 minutes but greater than or equal to 2.2 minutes

d. Less than 2.2 minutes

Answer: aReference: Work Measurement Techniques

Difficulty: Easy

Keywords: time study, normal time

86. Use the information in Scenario 4.4. What is the normal time for the entire job?

a. Greater than or equal to 10.0 minutes

b. Less than 10.0 minutes but greater than or equal to 8.5 minutes

c. Less than 8.5 minutes but greater than or equal to 7.0 minutes

d. Less than 7.0 minutes

Answer: bReference: Work Measurement Techniques

Difficulty: Moderate

Keywords: time study, normal time

87. Use the information in Scenario 4.4. What is the standard time for the entire job?

a. Greater than or equal to 10.0 minutes

b. Less than 10.0 minutes but greater than or equal to 8.5 minutes

c. Less than 8.5 minutes but greater than or equal to 7.0 minutes

d. Less than 7.0 minutes

Answer: aReference: Work Measurement Techniques

Difficulty: Moderate

Keywords: time study, standard time

88. Which one of the following statements about work measurement is TRUE?

a. Work sampling is a technique to determine the proportion of time spent on different activities. b. In determining the normal time for the cycle, using a rating factor less than one (1.0) will increase the total time allowed for a job to be performed, relative to the select time.

c. Performance rating factors are not needed in the derivation of time standards. d. The time study method is most appropriate for non-repetitive jobs in which the nature of the task differs each time.

Answer: a

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: work measurement, performance rating factor89. A time study analyst is attempting to determine the standard time for a work element. She observes a worker performing the work element at a higher-than-average pace. How will this fact be reflected in the time standard that is eventually created?

a. The frequency of the work element per cycle will be increased.

b. The proportion of allowance time will be increased above 1.0.

c. The performance rating factor will be set greater than 1.0.

d. The normal time for the work element will be increased.

Answer: c

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: performance rating factor90. A manager is interested in setting a time standard for a machining operation. Which one of the following is LEAST likely to be of use?

a. Time-study method

b. Elemental standard data approach

c. Predetermined data approach

d. Work sampling method

Answer: d

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: work sampling91. An advantage of the elemental standard data approach is that there is:

a. a reduction in the number of time studies needed.

b. no need to estimate allowances.

c. no need to use time study methods.

d. no need to estimate the variable characteristics of jobs.

Answer: a

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: elemental standard data92. Which of the following is not an advantage of the predetermined data approach to work measurement?

a. Standards can be set before production begins.

b. New work methods can be compared without conducting a time study.

c. Performance ratings are not needed to derive standards.

d. The approach is particularly applicable to firms with a flexible flow strategy.

Answer: d

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: predetermined data93. Which work measurement technique breaks down tasks into a series of generic micromotions?

a. Time study method

b. Elemental standard data approach

c. Predetermined data approach

d. Work-sampling method

Answer: c

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: micro-motion, work measurement, predetermined data94. When using a work-sampling study: a. the underlying assumption is that the proportion of time during which the activity is observed in the sample will be the proportion of time spent on the activity in general. b. the underlying assumption is that small samples of an activity can provide accurate measures of time spent on the activity. c. an advantage is that the study can normally be concluded in a day or less. d. the analyst must be highly trained in statistical observation.

Answer: a

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: work sampling, proportion95. Work sampling is most often used in situations in which:

a. a time standard is needed for a repetitive job.

b. an estimate of the proportion of the time spent on a particular activity is needed.

c. it is important to keep the sample size down.

d. special training is required for the observer, and stopwatches must be used.

Answer: b

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: work sampling96. A major disadvantage of work sampling is that:

a. observers must be specially trained.

b. only one study can be conducted at a time.

c. it can be used only in hospital settings.

d. a large number of observations are often required.

Answer: d

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: work sampling97. A work sampling method is used to determine the proportion of the time a machine is idle. The following information was gathered on a random basis.

DayNo. Times

Clerk IdleTotal No. of Observations

Monday412

Tuesday28

Wednesday410

Thursday210

What is the proportion of idle time observed for this machine?a. Less than or equal to 5%

b. Greater than 5% but less than or equal to 15%

c. Greater than 15% but less than or equal to 25%

d. Greater than 25%

Answer: c

Reference: Work Measurement TechniquesDifficulty: ModerateKeywords: work sample

98. A work sampling method is used to determine the proportion of the time a worker is idle. The following information was gathered on a random basis.

TimeNumber of Times

Clerk IdleTotal Number of Observations

8:00 10:00 am26

10:00 am 12:00 pm38

1:00 3:00 pm27

3:00 5:00 pm19

What is the proportion of idle time observed for this worker?

a. Less than or equal to 5%

b. Greater than 5% but less than or equal to 10%

c. Greater than 10% but less than or equal to 20%

d. Greater than 20%

Answer: d

Reference: Work Measurement Techniques

Difficulty: ModerateKeywords: work sample99. A work sampling method is used to determine the proportion of the time a worker is idle. The following information was gathered on a random basis.

DayNumber of Times

Clerk IdleTotal Number of Observations

Monday826

Tuesday832

Wednesday728

Thursday734

What is the proportion of idle time observed for this worker?

a. Less than or equal to 5%

b. Greater than 5% but less than or equal to 10%

c. Greater than 10% but less than or equal to 20%

d. Greater than 20%

Answer: d

Reference: Work Measurement Techniques

Difficulty: Moderate

Keywords: work sample100. Which one of the following statements about learning curves is TRUE?

a. A learning curve assumes that the direct labor requirements per unit will decrease at an increasing rate as cumulative production increases.

b. Learning at a capital-intensive operation usually will be less than it is for a labor-intensive operation.

c. Learning for a simple product will usually be greater than it is for complex products.

d. Learning curves can be used only for individuals, not for the whole organization.

Answer: b

Reference: Work Measurement TechniquesDifficulty: HardKeywords: learning curve, capital intensive operations101. 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.

Answer: a

Reference: Managerial Considerations in the Use of Learning Curves

Difficulty: HardKeywords: learning curve, learning rate, process

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 hoursc. Greater than 7.5 but less than or equal to 8.0 hoursd. Greater than 8.0 hoursAnswer: cReference: Developing Learning Curves

Difficulty: Moderate

Keywords: learning curve, learning effect, labor103. 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 hoursc. Greater than 7.5 but less than or equal to 8.0 hoursd. Greater than 8.0 hoursAnswer: a

Reference: Developing Learning Curves

Difficulty: Moderate

Keywords: learning curve, learning effect, labor104. 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 hoursc. Greater than 7.7 but less than or equal to 9.5 hoursd. Greater than 8.0 hoursAnswer: bReference: Developing Learning Curves

Difficulty: Moderate

Keywords: learning curve, learning effect, labor105. 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

Answer: c

Reference: Developing Learning Curves

Difficulty: Moderate

Keywords: learning curve, learning effect, labor106. 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

Answer: bReference: Developing Learning Curves

Difficulty: Moderate

Keywords: learning curve, learning effect, labor107. 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

Answer: cReference: Developing Learning Curves

Difficulty: Moderate

Keywords: learning curve, learning effect, labor108. 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.

Answer: c

Reference: Evaluating Performance

Difficulty: Moderate

Keywords: Pareto, relative problem frequency109. 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.

Answer: d

Reference: Evaluating Performance

Difficulty: Moderate

Keywords: Pareto chart, relative problem frequency 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.

Answer: d

Reference: Evaluating PerformanceDifficulty: Moderate

Keywords: 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

Answer: a

Reference: Evaluating PerformanceDifficulty: ModerateKeywords: cause-and-effect diagram

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.

Answer: d

Reference: Evaluating PerformanceDifficulty: ModerateKeywords: histogram, mean, standard deviation113. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in at each table. The data collected from the past weeks diners appear in the following table.ComplaintFrequency

Food taste27

Food temperature9

Order mistake5

Slow service19

Table/utensils dirty47

Too expensive9

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

Answer: b

Reference: Evaluating PerformanceDifficulty: Moderate

Keywords: Pareto analysis114. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in at each table. The data collected from the past weeks diners appear in the following table.ComplaintFrequency

Food taste80

Food temperature9

Order mistake2

Slow service16

Table/utensils dirty47

Too expensive4

Using a classic Pareto analysis, what categories comprise about 20% of the total complaints?

a. Order mistake, Too expensive, Food temperature, Slow serviceb. Slow service, Order mistake, c. Food taste, Food temperature, Slow serviced. Food taste, Table/utensils dirty

Answer: aReference: Evaluating Performance

Difficulty: Moderate

Keywords: Pareto analysis

115. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in at each table. The data collected from the past weeks diners appear in the following table.ComplaintFrequency

Food taste80

Food temperature9

Order mistake2

Slow service16

Table/utensils dirty47

Too expensive4

Using a classic Pareto analysis, what are the vital few complaints?

a. Table/utensils dirty

b. Slow service

c. Food taste, food temperatured. Food taste, Table/utensils dirty

Answer: d

Reference: Evaluating PerformanceDifficulty: ModerateKeywords: Pareto analysis116. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in at each table. The data collected from the past weeks diners have been plotted and appear in the following graph. The number of complaints for each category is with each bar.

How was the value for the point represented by the triangle calculated?

a.

b.

c.

d.

Answer: d

Reference: Evaluating Performance

Difficulty: Moderate

Keywords: Pareto analysis117. 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.

Answer: d

Reference: Evaluating PerformanceDifficulty: Easy

Keywords: simulation, process model118. 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?

Answer: d

Reference: Redesigning the ProcessDifficulty: ModerateKeywords: process redesign, questioning, brainstorming119. 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.

Answer: b

Reference: Redesigning the Process

Difficulty: EasyKeywords: process redesign, brainstorming120. 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.

Answer: b

Reference: Redesigning the Process

Difficulty: EasyKeywords: creativity, brainstorming121. 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.

Answer: d

Reference: Redesigning the Process

Difficulty: Easy

Keywords: brainstorming122. 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.

Answer: b

Reference: Redesigning the ProcessDifficulty: Moderate

Keywords: benchmarking steps

123. Xerox benchmarked its distribution system against that of L. L. Beans. This is an example of: a. competitive benchmarking.

b. internal benchmarking.

c. functional benchmarking.

d. disaggregate benchmarking.

Answer: c

Reference: Redesigning the ProcessDifficulty: ModerateKeywords: benchmarking, functional

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.

Answer: d

Reference: Redesigning the ProcessDifficulty: ModerateKeywords: benchmarking, data, quantitative goals125. 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.

Answer: a

Reference: Redesigning the ProcessDifficulty: ModerateKeywords: benchmarking, competitive

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.

Answer: c

Reference: Redesigning the ProcessDifficulty: ModerateKeywords: benchmarking, internal

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.

Answer: b

Reference: Redesigning the ProcessDifficulty: Moderate

Keywords: benchmarking, functional

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.

Answer: b

Reference: Redesigning the ProcessDifficulty: Moderate

Keywords: benchmarking, analysis

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.

Answer: a

Reference: Redesigning the ProcessDifficulty: ModerateKeywords: benchmarking, planning

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.

Answer: c

Reference: Redesigning the Process

Difficulty: ModerateKeywords: benchmarking, integration

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.

Answer: d

Reference: Redesigning the Process

Difficulty: Moderate

Keywords: benchmarking, 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.Answer: d

Reference: Redesigning the Process

Difficulty: Moderate

Keywords: benchmarking

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

Answer: b

Reference: Redesigning the Process

Difficulty: Easy

Keywords: benchmarking metrics134. 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 applicationsd. Number of accepted jobs as a percent of job offersAnswer: c

Reference: Redesigning the Process

Difficulty: Easy

Keywords: benchmarking metrics135. 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.

Answer: a

Reference: Managing Processes

Difficulty: Moderate

Keywords: managing processes, competitive priorities, strategic fit136. 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.

Answer: c

Reference: Managing Processes

Difficulty: Moderate

Keywords: managing processes, project implementation

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 employees self-actualization.d. an infrastructure for continuous improvement.

Answer: d

Reference: Managing Processes

Difficulty: Moderate

Keywords: managing processes, continuous improvement

FILL In THE BLANK138. ____________ is the documentation and detailed understanding of how work is performed and how it can be redesigned.Answer: Process analysisReference: A Systematic ApproachDifficulty: Easy

Keywords: process analysis

139. The first step of the systematic approach to process analysis is ____________.Answer: identify opportunitiesReference: A Systematic Approach

Difficulty: ModerateKeywords: identify opportunities, process analysis140. Process ____________ is the boundary of the process to be analyzed.Answer: scopeReference: A Systematic ApproachDifficulty: Easy

Keywords: process scope, boundary

141. A voluntary system by which employees submit their ideas on process improvements is called a(n) ____________.Answer: suggestion system

Reference: A Systematic Approach

Difficulty: EasyKeywords: suggestion system142. ____________ are performance measures that are established for a process and the steps within it.Answer: MetricsReference: A Systematic Approach

Difficulty: EasyKeywords: metric143. Gaps between actual and desired performance are called ____________.Answer: disconnectsReference: A Systematic Approach

Difficulty: ModerateKeywords: gap, disconnect144. A(n) ____________ means that a department focuses on its own tasks without understanding the role and processes of departments outside its own organizational boundaries.Answer: silo mentalityReference: A Systematic Approach

Difficulty: Easy

Keywords: silo mentality

145. A flowchart traces the flow of ____________, ____________, ____________, or ____________ through the various steps of a process.Answer: information, customers, equipment, materials

Reference: Documenting the ProcessDifficulty: HardKeywords: flowchart, information, customers, equipment, materials146. A(n) ____________ is a table that lists and categorizes the steps in a process.Answer: process chart

Reference: Documenting the ProcessDifficulty: ModerateKeywords: process chart

147. A(n) ____________ shape in a process chart represents a decision point in the process.Answer: diamond

Reference: Documenting the Process

Difficulty: Moderate

Keywords: decision point, process chart symbols148. A special flowchart of a service process that shows which of its steps have high customer contact is a(n) ____________.Answer: service blueprintReference: Documenting the ProcessDifficulty: Moderate

Keywords: flowchart, service blueprint149. The ____________ in a service blueprint separates which steps are in view of the customer from those that arent.Answer: line of visibility Reference: Documenting the Process

Difficulty: Moderate

Keywords: line of visibility, service blueprint150. ____________ is the process of creating labor standards based on the judgment of skilled observers.Answer: Work measurement

Reference: Work Measurement Techniques

Difficulty: Easy

Keywords: work measurement151. The ____________ is a measurement found by multiplying the average time and the rating factor.Answer: normal time, NT

Reference: Work Measurement Techniques

Difficulty: Moderate

Keywords: normal time152. The time added to adjust for factors such as fatigue or equipment malfunction is called ____________.Answer: allowance, allowance time

Reference: Work Measurement Techniques

Difficulty: Moderate

Keywords: allowance, allowance time153. Using the ____________, the analyst divides each work element into a series of micro-motions common to a variety of tasks.Answer: predetermined data approach

Reference: Work Measurement Techniques

Difficulty: Moderate

Keywords: predetermined data approach, micromotion154. ____________ involves estimating the proportion of time spent by people and machines on activities, based on a large number of observations.Answer: Work sampling

Reference: Work Measurement Techniques

Difficulty: Moderate

Keywords: work sampling155. The ____________ can be represented by a line called a learning curve.Answer: learning effect

Reference: Work Measurement Techniques

Difficulty: Moderate

Keywords: learning effect, learning curve

156. A(n) ____________ is a form used to record the frequency of occurrence of certain product or service characteristics related to quality.Answer: checklistReference: Evaluating PerformanceDifficulty: ModerateKeywords: checklist 157. A(n) ____________ is a bar chart on which the factors are plotted in decreasing order of frequency along the horizontal axis.Answer: Pareto chartReference: Evaluating PerformanceDifficulty: Moderate

Keywords: Pareto chart158. A(n) ____________ would be a useful tool to determine the effect that the number of practice problems solved correctly has on the midterm score.Answer: scatter diagramReference: Evaluating PerformanceDifficulty: Moderate

Keywords: scatter diagram

159. A(n) ____________ is a diagram that relates a key quality problem to its potential causes.Answer: cause-and-effect diagramReference: Evaluating PerformanceDifficulty: Moderate

Keywords: cause-and-effect, fishbone, Ishikawa

160. The process of gathering data regarding a process and sifting the data to deduce causes of problems is called ____________.Answer: data snoopingReference: Evaluating PerformanceDifficulty: moderateKeywords: data snooping

161. ____________ is the act of reproducing the behavior of a process using a model that describes each step of the process.Answer: Process simulation

Reference: Evaluating PerformanceDifficulty: Moderate

Keywords: process simulation

162. A simulation model goes one step further than possible with analysis tools, because it can show how the process performs ____________ over time.Answer: dynamicallyReference: Evaluating PerformanceDifficulty: ModerateKeywords: process simulation

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.Answer: brainstorming sessionReference: Redesigning the Process

Difficulty: Moderate

Keywords: brainstorming

164. ____________ is a continuous, systematic procedure that measures a firms products, services, and processes against those of industry leaders.Answer: BenchmarkingReference: Redesigning the ProcessDifficulty: Moderate

Keywords: benchmarking

165. Once the benchmarking team has collected the data, the ____________ phase of the benchmarking study can begin.Answer: analysisReference: Redesigning the Process

Difficulty: Moderate

Keywords: benchmarking, analysis

166. The bursars 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 ____________.Answer: functional benchmarkingReference: Redesigning the Process

Difficulty: Moderate

Keywords: benchmarking, functional benchmarking167. ____________ is based on comparison of processes with a direct adversary in industry.Answer: Competitive benchmarkingReference: Redesigning the ProcessDifficulty: ModerateKeywords: benchmarking, competitive benchmarking

168. ____________ involves using an organizational unit with superior performance as the ideal for other departments.Answer: Internal benchmarkingReference: Redesigning the Process

Difficulty: ModerateKeywords: benchmarking, internal benchmarking

SHORT ANSWERS169. What is the six-step blueprint for process analysis and what are the basic requirements for each step?Answer: The six steps are: identify opportunities, define scope, document process, evaluate performance, redesign process, and implement changes. Opportunities can be identified by examining the four core processes of supplier relationships, new service/product development, order fulfillment, and customer relationship. Other ways to identify opportunities are by looking at strategic issues and by asking employees. Scope definition entails establishing the boundaries of the process to be analyzed. The process can be documented by developing a list of the processs inputs, suppliers, customers, and listing in sequence the different steps that the process consists of. Performance evaluation consists of identifying metrics that permit an objective evaluation of the current process state and any progress that is made. The process is redesigned by examining what can be improved and then thinking of and analyzing ways to improve those deficiencies. Finally, the process improvements are implemented by getting support and buy-in from all constituents.Reference: A Systematic ApproachDifficulty: ModerateKeywords: process analysis, process improvement

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.Answer: Flowcharts trace the flow of information, customers, employees, equipment, or material through a process. Process charts record all the activities performed by a person or a machine, at a workstation, with a customer, or on materials. Answers will vary.

Reference: Documenting the ProcessDifficulty: Moderate

Keywords: flowchart, information flow, customer flow, employee flow, material flow171. 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?Answer: Because you are unfamiliar with the process, you should first use a flowchart, service blueprint, or process chart. This diagram will give you a big-picture view of what is currently happening. This will also provide some insight into key data collection points where workers might use checklists to collect some data. After data has been collected, elementary data analysis may be performed using a histogram, Pareto chart, and scatter diagram as appropriate. The tallest/leftmost bar on a Pareto chart can be the head of the first fishbone diagram (if the bars represent problems). Once the largest problem is solved, more data can be collected to verify that improvements in the process have taken place.

Reference: Evaluating Performance, Documenting the Process

Difficulty: HardKeywords: checklist, histogram, Pareto chart, fishbone, cause-and-effect, flowchart, service blueprint

172. What are the four steps in a time study? Answer: The four steps are selecting work elements, timing the elements, determining the sample size, and setting the standard.

Reference: Work Measurement Techniques

Difficulty: Moderate

Keywords: time study

173. Explain why a sampling schedule is important in a work sampling study. Answer: A sampling schedule should determine when the workers are to be observed because the observations are just snapshots of time. In addition, the observation times should be randomized to avoid biases in worker performance.

Reference: Work Measurement TechniquesDifficulty: HardKeywords: work sampling, schedule

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?Answer: Both are direct observation methods. However, a time study observes several cycles of work elements to determine a time standard, whereas work sampling takes snapshots of the facility to determine the percentage of time engaged in an activity. Time studies require experienced analysts, should not be used for tasks that vary each time, and are many times found to be objectionable to workers. Work sampling does not require special training and is generally accepted by workers because it tends to examine activities of the group rather than of the individual. In addition, many work sampling studies can be conducted simultaneously.

Reference: Work Measurement TechniquesDifficulty: HardKeywords: time study method, work sampling method175. 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. Answer: The learning curve theory states that the direct labor costs will exceed the average in the early stages of production, whereas the reverse is true in the latter stages. Pricing is often predicted on average costs.

Reference: Work Measurement TechniquesDifficulty: HardKeywords: learning curves, direct labor

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?Answer: The learning curve theory states that the labor requirement will be greater in the early stages of production and lower as workers enjoy several repetitions of their jobs. A line balance that is performed using inflated times will have increased idle time and decreased efficiency as learning effects occur. The industrial engineer can compensate for learning effects by applying a smaller performance rating factor (or allowance factor if downtime is an issue). If the industrial engineer is unsure of the workers learning rate, the line can be balanced, and then a second study performed to rebalance it.

Reference: Work Measurement TechniquesDifficulty: HardKeywords: learning curves, labor, output rate, time standard, line balance

177. What is a fishbone chart?Answer: Also called a cause-and-effect diagram, the fishbone chart relates a key quality problem to its potential causes.

Reference: Evaluating PerformanceDifficulty: Easy

Keywords: fishbone, cause-and-effect178. 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.Answer: A flowchart shows a big picture view of the process. The output from this step is a view that shows appropriate points for data collection using a checklist. Once the checklist has been deployed, the data that has been collected can be analyzed by a histogram or a Pareto chart (if data can be categorized) or a scatter diagram (if coordinate data fall more naturally into continuous distributions). Finally, the tallest bar in the Pareto chart serves as the input to a fishbone (or cause-and-effect) diagram as the fishbones head.

Reference: Evaluating PerformanceDifficulty: Moderate

Keywords: flowchart, checklist, histogram, Pareto, scatter, fishbone, cause-and-effect179. What are the generic steps in any benchmarking study and what are examples of the three types of benchmarking?Answer: The steps in any benchmarking study are planning, analysis, integration, and action. The planning step requires the benchmarking team to identify the process, service, or product to be benchmarked, the firms to be used for comparison, and the collection of data. In the analysis step, the team determines the gap between its employer and the benchmarking partner. The integration step features the establishment of goals for the new process and secures management support for changes. The action phase is when plans are developed and implemented and the benchmarks are recalibrated as improvements are realized. Examples will vary but the three types are competitive, functional, and internal. Competitive benchmarking is comparison with a direct competitor; functional benchmarking is a comparison with similar functions outside the firm but not of a direct competitor; and internal benchmarking is a comparison with another department or function in the same company.

Reference: Redesigning the ProcessDifficulty: HardKeywords: benchmarking, competitive, internal, functionalPROBLEMS180. 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?Fo rmTime to Input(minutes)Quantity (forms/year)

Par t A Existing Method31,200,000

Par t B Existing Method31,200,000

Par t C Existing Method41,100,000

P art A Proposed Method41,200,000

P art B Proposed Method41,200,000

Web Search Proposed Method2650,000

Answer:

Existing Method

Part A

Part B

Part C

Total Existing Process: 11,600,000 minutes

Proposed MethodPart A

Part B

Part C (web)

Total Proposed Process: 10,900,000 minutes A savings of 700,000 minutes/year

Reference: Documenting the ProcessDifficulty: Moderate

Keywords: annual labor cost

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 TypeTotal Problems

Cashier slow15

Price check required9

Line too long22

Cashier unfriendly4

Answer:

Reference: Evaluating Performance

Difficulty: Moderate

Keywords: Pareto chart182. 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 FailureTotal Failures

Person not available 5

Incorrect information given 12

Phone line busy 7

Long delay 39

Phone tree confusing 20

People unfriendly 17

Answer:

Reference: Evaluating Performance

Difficulty: Moderate

Keywords: Pareto chart183. 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?

Answer:

The actual counts for the five categories are:

CategoryCount

MC104

FB42

TF40

SA8

PB6

Some allowance should be made for alignment in reading the graphs right hand y-axis and matching up the location of the cumulative percentage markers for each category. Because the total number of observations equals 200, the percentages on the right side y-axis can be multiplied by 200 to yield estimates of the count values. Based on a rough reading:MC = 200 x 52.5 = 105

FB = 200 x (72.5 52.5) = 40TF = 200 x (92.5 72.5) = 40

SA = 200 x (97.5 92.5) = 10PB = 200 x (100 97.5) = 5

Reference: Evaluating Performance

Difficulty: Moderate

Keywords: Pareto chart184. Develop a process chart for a manual car wash.Answers: will vary, but a typical answer might look like the following process chart:

Reference: Documenting the Process

Difficulty: Moderate

Keywords: process chart

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) Answers: will vary, but should follow the approach used in question #193. Process chart should include all value adding and non-value adding steps, and a summary of the steps and times that recap the process. Reference: Documenting the Process

Difficulty: Moderate

Keywords: process chart

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

Element12345RF

111151014151.10

226302529301.05

3118713110.85

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?

Answer:

RatingAverageNormal

Work ElementFactorTimeTimes

11.1013.014.3

21.0528.029.4

30.8510.08.5

a. Normal time = 14.3 + 29.4 + 8.5 = 52.2 secondsb. Standard time = (52.2)(1.20) = 62.64 secondsReference: Work Measurement TechniquesDifficulty: Moderate

Keywords: time study, normal time, standard time187. 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:Observation PeriodTimes

StudyingTimes Not

StudyingObservations

Monday19423

Tuesday22426

Wednesday9211

Based on this work sample, what percentage of time was the student actually studying?

Answer:

Total observations = 60

Number of observations student was studying = 50

% of time studying = 50 / 60 = 83.3%

Reference: Work Measurement TechniquesDifficulty: Moderate

Keywords: work sampling study, work sample

Scenario 4.1

Garman observes a worker assembling peanut valves and records the data displayed in the table.

Time (seconds)Observations211525123012

Scenario 4.2

Garman observes a worker assembling peanut valves and records the data displayed in the table.

Time (seconds)Observations101815252017

Scenario 4.3

A job consists of three elements. Twenty observations for each element were timed, and the resulting data are shown in the following table. A performance rating has also been assigned for each element, as shown in the table. The job has an allowance of 15% of normal time.

ElementPerformance Rating (%)Average Element Time (in minutes)# 1703.6# 21102.5# 3903.1

Scenario 4.4

A job consists of three elements. Twenty observations for each element were timed, and the resulting data are shown in the following table. A performance rating has also been assigned for each element, as shown in the table. The job has an allowance of 20% of normal time.

ElementPerformance Rating (%)Average Element Time (in minutes)# 1803.6# 21002.5# 31103.1

Flowchart

Checklist

Histogram;

Pareto;

Scatter

Cause-and-

Effect

Diagram

Big picture

Shows

Collection

points

Data collected

for graphical

analysis

Greatest problem

& relationships

identified

Root cause of

problem

identified

PAGE 213Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall

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