Chapter 06 Process Flow Analysis Chapter 6 Process Flow Analysis Answer Key Multiple Choice Questions 1 In the process view of business which of the following should be identified when defining the system A Interconnected processes across functional areas B The process flow analysis approach to be used C Only the operations function D The vertical nature of the organizational design LO 6 2 Topic The Process View of Business Difficulty 3 Hard AACSB Reflective thinking Bloom s Understand Feedback The process view means viewing a business as a system consisting of a collection of interconnected processes connecting functions 2 If I denotes the average inventory in the system T denotes the average throughput time and R denotes the average flow rate of the system then by Little s Law A I T R B T I R C I R T D R I T LO 6 5 Topic Measuring Process Flows Difficulty 3 Hard AACSB Reflective thinking Bloom s Understand Feedback If I T x R then R I T 3 If a factory has 100 000 units of materials in the system and if the average flow rate of the system is 5 000 units per day then according to Little s Law the average throughput time is A 0 5 days B 20 days C 0 05 days D 100 days LO 6 5 Topic Measuring Process Flows Difficulty 2 Moderate AACSB Application of knowledge Bloom s Apply Feedback 100 000 5 000 20 6 1 Chapter 06 Process Flow Analysis 4 A numerically controlled machining center has an average processing capacity of 5 000 units per day It receives an average of 3 000 units of inventory from another machining center and it has to supply an average of 1 000 units of finished goods to the packaging section Assuming that the company incurs a significant cost for carrying finished goods supplied to the packaging section the flow rate of the machining process is A 3 000 units per day B 5 000 units per day C 1 000 units per day D none of the above LO 6 5 Topic Measuring Process Flows Difficulty 2 Moderate AACSB Application of knowledge Bloom s Apply Feedback The flow rate is the minimum of supply demand or capacity In this case demand is 1 000 while supply and capacity are higher 5 Which of the following would NOT be changed due to process flow analysis A Raw materials B Product or service design C Job design D Customers LO 6 4 Topic Process Flow Analysis as Asking Questions Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback Materials products jobs can all be changed but changing customers is not typically an option 6 The first step in process flowcharting is to A draw the flowchart B break the process down into blocks C assemble an appropriate team to do the flowcharting D select an appropriate transformation process for analysis LO 6 3 Topic Process Flowcharting Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback The first step or principle is to identify and select a relevant process one that offers potential performance gains 6 2 Chapter 06 Process Flow Analysis 7 One step in process flow analysis is to describe the existing process If a new system is being developed there is no existing system A this step is simply omitted B process flow analysis cannot be performed C a sociotechnical design must be used D the analysis must include a hypothetical process for comparison LO 6 4 Topic Process Flow Analysis as Asking Questions Difficulty 1 Easy AACSB Reflective thinking Bloom s Remember Feedback Process flow analysis can be and is done on new processes but without an existing process to chart this step is skipped 8 Which of the following statements about Little s Law is NOT correct A Little s Law cannot be applied to service operations B Little s Law relates the average number of units in the system to average throughput time and average flow rate C Little s Law includes processing and waiting time D Little s Law assumes that the system is in steady state LO 6 5 Topic Measuring Process Flows Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback Little s law can be applied to service operations especially waiting line problems 9 A diamond symbol in a flowchart indicates A evaluation with more than one possible outcome B decision C both a and b D neither a nor b LO 6 3 Topic Process Flowcharting Difficulty 1 Easy AACSB Reflective thinking Bloom s Remember Feedback The diamond represents a decision or evaluation point or describes a required condition and splits the process 6 3 Chapter 06 Process Flow Analysis 10 What does a square or rectangle symbol indicate in a flowchart A Operation B Inspection C Storage D Delay LO 6 3 Topic Process Flowcharting Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback A process box represents an operational step or activity 11 Analysis of the flow of information A is necessary only if management wants tight control of the system B is more important than materials flow C should always accompany an analysis of materials flow D is of concern only to service industries LO 6 4 Topic Process Flow Analysis as Asking Questions Difficulty 2 Moderate AACSB Reflective thinking Bloom s Understand Feedback Material or customer flow for services is a common starting place but analysis should also include the flow of information and often the flow of money 12 Which of the following is NOT one of the four principles of process redesign A Organize around outcomes not tasks B Have the people who do the work process their own information C Eliminate unnecessary steps in the process D Automate the remaining steps in the process LO 6 6 Topic Process Redesign Difficulty 3 Hard AACSB Reflective thinking Bloom s Understand Feedback In addition to A B and C the fourth principle of process redesign is to put the decision point where the work is performed and build control into the process 6 4 Chapter 06 Process Flow Analysis 13 The capacity of a process is determined by A the bottleneck B the maximum of the required capacity resources C throughput time D none of the above LO 6 5 Topic Measuring Process Flows Difficulty 3 Hard AACSB Reflective thinking Bloom s Understand Feedback The capacity of the entire process is limited by the resource with the smallest capacity 14 Which of the following is NOT a prerequisite to process flowcharting A Identifying system boundaries B Identifying the relevant industry best practice C Identifying sequential flows D Identifying suppliers LO 6 3 Topic Process Flowcharting Difficulty 1 Easy AACSB Reflective thinking Bloom s Remember Feedback Industry best