Operations Management 2nd Edition By Gerard Cachon – Test Bank

 

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Sample Test

Operations Management, 2e (Cachon)

Chapter 3   Process Analysis

 

1) The primary purpose of a process analysis is to crowdsource new product ideas.

 

Answer:  FALSE

Explanation:  The purpose of process analysis is to improve a process.

Difficulty: 1 Easy

Topic:  How to Draw a Process Flow Diagram

Learning Objective:  03-01 Draw a process flow diagram.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

2) The capacity of a resource is the average flow rate of that resource.

 

Answer:  FALSE

Explanation:  The capacity of a resource is the maximum number of flow units that can be processed by the resource per unit of time.

Difficulty: 1 Easy

Topic:  Capacity for a One-Step Process

Learning Objective:  03-02 Determine the capacity for a one-step process.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

3) Cycle time is the time between when an order is placed and when it is completed.

 

Answer:  FALSE

Explanation:  Cycle time is the time between completing two consecutive flow units. Lead time is the time between when an order is placed and when it is filled.

Difficulty: 2 Medium

Topic:  How to Compute Flow Rate, Utilization, and Cycle Time

Learning Objective:  03-03 Determine the flow rate, the utilization, and the cycle time of a process.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

4) A bottleneck is the resource with the lowest capacity in a multistep process.

 

Answer:  TRUE

Explanation:  A bottleneck is the resource with the lowest capacity in a multistep process. It determines the rate of flow of units through a process.

Difficulty: 2 Medium

Topic:  How to Analyze a Multistep Process and Locate the Bottleneck

Learning Objective:  03-04 Find the bottleneck of a multi-step process and determine its capacity.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

5) A resource with a utilization of less than 100% cannot be the bottleneck.

 

Answer:  FALSE

Explanation:  When a process is demand-constrained, even the bottleneck will have a utilization of less than 100%.

Difficulty: 2 Medium

Topic:  How to Analyze a Multistep Process and Locate the Bottleneck

Learning Objective:  03-04 Find the bottleneck of a multi-step process and determine its capacity.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

6) It matters whether the process starts empty or not when computing the time it takes to produce a certain order quantity.

 

Answer:  TRUE

Explanation:  If the process is already running, the time it takes to produce X units is equal to Cycle time of the process×X. If the process starts empty, the time it takes to produce the first unit should be added, making it Time through an empty process + [Cycle time of the process × (X − 1)].

Difficulty: 1 Easy

Topic:  The Time to Produce a Certain Quantity

Learning Objective:  03-05 Determine how long it takes to produce a certain order quantity.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

7) Which of the following statements about process analysis is TRUE?

1.   A) Process analysis is the backbone of a company’s accounting system.

2.   B) Process analysis tracks an organization’s revenue and costs.

3.   C) Process analysis enables a business to create demand.

4.   D) Process analysis is a framework to understand an organization’s detailed operations.

 

Answer:  D

Explanation:  Process analysis helps in analyzing a process to make improvements.

Difficulty: 1 Easy

Topic:  How to Draw a Process Flow Diagram

Learning Objective:  03-01 Draw a process flow diagram.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

8) Resources are shown in a process flow diagram as ________.

1.   A) boxes

2.   B) arrows

3.   C) spheres

4.   D) triangles

 

Answer:  A

Explanation:  Resources are represented as boxes in a process flow diagram.

Difficulty: 1 Easy

Topic:  How to Draw a Process Flow Diagram

Learning Objective:  03-01 Draw a process flow diagram.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

9) Inventory is shown as ________ in a process flow diagram.

1.   A) boxes

2.   B) arrows

3.   C) spheres

4.   D) triangles

 

Answer:  D

Explanation:  Inventory is shown as triangles in a process flow diagram.

Difficulty: 1 Easy

Topic:  How to Draw a Process Flow Diagram

Learning Objective:  03-01 Draw a process flow diagram.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

10) Which of the following is a resource in an outpatient medical clinic?

1.   A) Flu shot

2.   B) X-ray machine

3.   C) Ambulance

4.   D) Reputation

 

Answer:  B

Explanation:  Equipment such as an X-ray machine is a resource at an outpatient medical clinic.

Difficulty: 2 Medium

Topic:  How to Draw a Process Flow Diagram

Learning Objective:  03-01 Draw a process flow diagram.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

11) You are filling your prescription at a pharmacy. Right now, you are waiting in line in front of the pickup window. Which process is upstream, relative to your current position in the process?

1.   A) Paying for the prescription

2.   B) Waiting to take the prescription

3.   C) Inspecting the prescription

4.   D) Dropping off the prescription

 

Answer:  D

Explanation:  An upstream process occurs before the current process; you drop off the prescription before picking it up.

Difficulty: 2 Medium

Topic:  How to Draw a Process Flow Diagram

Learning Objective:  03-01 Draw a process flow diagram.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

12) On a process flow diagram, ________ are used to show the journey of a flow unit from input to output.

1.   A) boxes

2.   B) arrows

3.   C) spheres

4.   D) triangles

 

Answer:  B

Explanation:  Arrows are used to show the journey of a flow unit from input to output.

Difficulty: 1 Easy

Topic:  How to Draw a Process Flow Diagram

Learning Objective:  03-01 Draw a process flow diagram.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

13) Refer to the process flow diagram below. Station 1 is ________ from station 2.

 

1.   A) downstream

2.   B) upstream

3.   C) target

4.   D) bottleneck

 

Answer:  B

Explanation:  The beginning of the flow (where Station 1 is located) is called the upstream of the process.

Difficulty: 2 Medium

Topic:  How to Draw a Process Flow Diagram

Learning Objective:  03-01 Draw a process flow diagram.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

14) Refer to the process flow diagram below. Station 3 is ________ from station 2.

 

1.   A) downstream

2.   B) upstream

3.   C) target

4.   D) bottleneck

 

Answer:  A

Explanation:  The end of the flow (where Station 3 is located) is called the downstream of the process.

Difficulty: 2 Medium

Topic:  How to Draw a Process Flow Diagram

Learning Objective:  03-01 Draw a process flow diagram.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

15) Refer to the process flow diagram below. Station 2 is the ________ of Station 1.

 

1.   A) customer

2.   B) supplier

3.   C) target

4.   D) bottleneck

 

Answer:  A

Explanation:  Resources downstream are the customers of resources upstream.

Difficulty: 1 Easy

Topic:  How to Draw a Process Flow Diagram

Learning Objective:  03-01 Draw a process flow diagram.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

16) A process analysis of a hospital’s emergency room can answer all of the following questions EXCEPT ________.

1.   A) What is the average waiting time of a patient in the emergency room?

2.   B) How many patients can be treated each day in the emergency room?

3.   C) How busy are the physicians in the outpatient clinic?

4.   D) How many seats are in the emergency room?

 

Answer:  C

Explanation:  A process analysis of a hospital’s emergency room can answer questions related to all activities involved in providing medical care to patients in the emergency room.

Difficulty: 2 Medium

Topic:  How to Draw a Process Flow Diagram

Learning Objective:  03-03 Determine the flow rate, the utilization, and the cycle time of a process.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

17) Consider this checkout process at a store: “Customers wait in line at a common area and will be checked out by the next available cashier.” Which process flow diagram is a correct depiction of this checkout process?

A)

B)

C)

D)

 

 

 

Answer:  B

Explanation:  One triangle indicates one common waiting area and the three boxes represent three cashiers serving the next customers waiting in line at the common area.

Difficulty: 2 Medium

Topic:  How to Draw a Process Flow Diagram

Learning Objective:  03-01 Draw a process flow diagram.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

18) Consider this checkout process at a store: “Customers wait in line in front of one of three cashiers for checkout.” Which process flow diagram is a correct depiction of this checkout process?

A)

B)

C)

D)

 

 

 

Answer:  A

Explanation:  There are three triangles (waiting areas), one in front of each box (cashier) showing that each cashier has its own waiting line.

Difficulty: 2 Medium

Topic:  How to Draw a Process Flow Diagram

Learning Objective:  03-01 Draw a process flow diagram.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

19) Consider this checkout process at a store: “Customers wait in line to drop off their order in one station, then wait to pick up their order in another station.” Which process flow diagram is a correct depiction of this checkout process?

A)

B)

C)

D)

 

 

 

Answer:  D

Explanation:  There are two steps in the checkout process: drop off and pick up. Each step requires waiting. Therefore, a triangle (waiting area) will be placed in front of each of the two boxes (stations).

Difficulty: 2 Medium

Topic:  How to Draw a Process Flow Diagram

Learning Objective:  03-01 Draw a process flow diagram.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

20) The ________ of a resource is how long that particular resource takes to complete one flow unit.

1.   A) flow time

2.   B) flow rate

3.   C) processing time

4.   D) processing rate

 

Answer:  C

Explanation:  The time it takes for a resource to complete one flow unit is called the processing time.

Difficulty: 1 Easy

Topic:  Capacity for a One-Step Process

Learning Objective:  03-02 Determine the capacity for a one-step process.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

21) The capacity of a resource determines the ________ number of flow units that can flow through that resource per unit of time.

1.   A) maximum

2.   B) minimum

3.   C) average

4.   D) medium

 

Answer:  A

Explanation:  The capacity of a resource determines the maximum number of flow units that can flow through that resource per unit of time.

Difficulty: 1 Easy

Topic:  Capacity for a One-Step Process

Learning Objective:  03-02 Determine the capacity for a one-step process.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

22) The process capacity determines the ________ a process can provide per unit of time.

1.   A) minimum flow rate

2.   B) maximum flow rate

3.   C) maximum flow time

4.   D) minimum flow time

 

Answer:  B

Explanation:  The process capacity determines the maximum flow rate a process can provide per unit of time.

Difficulty: 1 Easy

Topic:  Capacity for a One-Step Process

Learning Objective:  03-02 Determine the capacity for a one-step process.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

23) One employee is in charge of the following activities at a bank’s drive-through:

 

 

Activity	Activity Time per Customer
Greet customer	2 seconds
Take order	3 seconds
Process order	2 minutes
Print receipt	10 seconds

 

 

What is the processing time (in seconds) of the drive-through process at the bank?

4.   A) 4.25

5.   B) 17

6.   C) 33.75

7.   D) 135

 

Answer:  D

Explanation:  The processing time of a process is the sum of the activity times of all its activities.

Difficulty: 1 Easy

Topic:  Capacity for a One-Step Process

Learning Objective:  03-02 Determine the capacity for a one-step process.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

24) One employee is in charge of the following activities at a bank’s drive-through:

 

 

Activity	Activity Time per Customer
Greet customer	2 seconds
Take order	3 seconds
Process order	2 minutes
Print receipt	10 seconds

 

 

What is the capacity (in customers per hour) of the employee?

1.   A) 0.007

2.   B) 0.44

3.   C) 26.67

4.   D) 211.76

 

Answer:  C

Explanation:  Capacity = 1/[2 + 3 + (2 × 60) + 10] = 0.007 customer per second = 0.007 ×60 (seconds/minute) ×60 (minutes/hour) = 26.67 customers per hour.

Difficulty: 2 Medium

Topic:  Capacity for a One-Step Process

Learning Objective:  03-02 Determine the capacity for a one-step process.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

25) One employee is in charge of the following activities at a bank’s drive-through:

 

 

Activity	Activity Time per Customer
Greet customer	2 seconds
Take order	3 seconds
Process order	2 minutes
Print receipt	10 seconds

 

 

What is the bank’s process capacity (in customers per minute)?

1.   A) 0.007

2.   B) 0.44

3.   C) 26.67

4.   D) 33.75

 

Answer:  B

Explanation:  Since there is only one employee, the process capacity = 1/[2 + 3 + (2 × 60) + 10] = 0.007 customer per second = 0.007 × 60 (seconds/minute) = 0.44 customer per minute.

Difficulty: 2 Medium

Topic:  Capacity for a One-Step Process

Learning Objective:  03-02 Determine the capacity for a one-step process.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

26) A bank has three tellers. It takes a teller 6 minutes to serve one customer. What is the capacity of the bank in customers per hour?

1.   A) 6

2.   B) 18

3.   C) 10

4.   D) 30

 

Answer:  D

Explanation:  Capacity = 3/6 × 60 = 30 customers per hour.

Difficulty: 1 Easy

Topic:  Capacity for a One-Step Process

Learning Objective:  03-02 Determine the capacity for a one-step process.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

27) A bank has three tellers. It takes a teller 6 minutes to serve one customer. What is the capacity of the bank (in customers per hour) over the course of an 8-hour workday?

1.   A) 48

2.   B) 144

3.   C) 100

4.   D) 240

 

Answer:  D

Explanation:  Capacity = 3/6 × 60 customers per hour × 8 hours = 240 customers per day.

Difficulty: 2 Medium

Topic:  Capacity for a One-Step Process

Learning Objective:  03-02 Determine the capacity for a one-step process.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

28) Customers drive away after failing to find a place to park at a supermarket. The current process is ________.

1.   A) capacity-constrained

2.   B) demand-constrained

3.   C) supply exceeds demand

4.   D) capacity unconstrained

 

Answer:  A

Explanation:  Customers leaving without being served means that the demand exceeds supply, or that the supermarket is capacity-constrained.

Difficulty: 1 Easy

Topic:  How to Compute Flow Rate, Utilization, and Cycle Time

Learning Objective:  03-03 Determine the flow rate, the utilization, and the cycle time of a process.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

29) Capacity is constrained when ________ exceeds ________ and the flow rate is equal to ________.

1.   A) supply, demand, process capacity

2.   B) supply, demand, demand

3.   C) demand, supply, process capacity

4.   D) demand, supply, demand

 

Answer:  C

Explanation:  Flow rate is the minimum of demand or process capacity. Capacity is constrained when demand exceeds supply; flow rate is limited to the process capacity.

Difficulty: 2 Medium

Topic:  How to Compute Flow Rate, Utilization, and Cycle Time

Learning Objective:  03-03 Determine the flow rate, the utilization, and the cycle time of a process.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

30) The process is ________-constrained when ________ exceeds ________ and the flow rate is equal to the demand rate.

1.   A) demand, supply, demand

2.   B) capacity, supply, demand

3.   C) demand, demand, supply

4.   D) capacity, demand, supply

 

Answer:  A

Explanation:  Flow rate is equal to the demand rate means demand is the constraint, which happens when supply exceeds demand.

Difficulty: 2 Medium

Topic:  How to Compute Flow Rate, Utilization, and Cycle Time

Learning Objective:  03-03 Determine the flow rate, the utilization, and the cycle time of a process.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

31) Process utilization is the ratio between ________ and ________.

1.   A) flow time, flow rate

2.   B) flow rate, process capacity

3.   C) process capacity, flow time

4.   D) process time, process capacity

 

Answer:  B

Explanation:  Process utilization is the ratio between flow rate and process capacity.

Difficulty: 1 Easy

Topic:  How to Compute Flow Rate, Utilization, and Cycle Time

Learning Objective:  03-03 Determine the flow rate, the utilization, and the cycle time of a process.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

32) You observe a long line at C&A Bakery with customers leaving every 4 minutes. What is the capacity (in customers per hour) of the bakery?

1.   A) 0.25

2.   B) 4

3.   C) 15

4.   D) 12

 

Answer:  C

Explanation:  Flow rate = 1/Cycle time = 1/4 = 0.25 minute. Capacity = Flow rate when capacity is constrained = 0.25 customer per minute = 0.25 × 60 (minutes/hour) = 15 customers per hour.

Difficulty: 3 Hard

Topic:  How to Compute Flow Rate, Utilization, and Cycle Time

Learning Objective:  03-03 Determine the flow rate, the utilization, and the cycle time of a process.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

33) A help desk can answer 200 calls per hour. The demand rate is 250 calls per hour. What are the cycle time (in minutes per call) and utilization of the call center?

1.   A) 0.005, 1

2.   B) 0.004, 0.8

3.   C) 0.24, 0.8

4.   D) 0.3, 1

 

Answer:  D

Explanation:  Flow rate = Min(demand, capacity) = Min(250, 200) = 200 calls per hour. Cycle time = 1/Flow rate = 1/200 hour per call = 1/200 × 60 (minutes/hour) = 0.3 minute per call. Utilization = Flow rate/Capacity = 200/200 = 1.

Difficulty: 3 Hard

Topic:  How to Compute Flow Rate, Utilization, and Cycle Time

Learning Objective:  03-03 Determine the flow rate, the utilization, and the cycle time of a process.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

34) Which of the following statements about utilization of a resource is TRUE?

1.   A) It is at its maximum when the flow rate exceeds its capacity.

2.   B) It is at its maximum when the flow rate is equal to its capacity.

3.   C) It is at its minimum when the flow rate exceeds its capacity.

4.   D) It is at its minimum when the flow rate is equal to its capacity.

 

Answer:  B

Explanation:  Utilization of a resource is at its maximum when it is equal to one, or when flow rate is equal to capacity.

Difficulty: 2 Medium

Topic:  How to Compute Flow Rate, Utilization, and Cycle Time

Learning Objective:  03-03 Determine the flow rate, the utilization, and the cycle time of a process.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

35) One employee is in charge of the following activities at a refreshment stand:

 

 

Activity	Activity Time per Customer
Greet customer	5 seconds
Take order	25 seconds
Process order	1.5 minutes
Print receipt	30 seconds

 

 

If the demand rate is 20 customers per hour, what are the flow rate (in customers per hour), utilization, and cycle time (in minutes per customer)?

1.   A) 24, 1, 0.04

2.   B) 24, 1, 2.5

3.   C) 20, 0.83, 0.05

4.   D) 20, 0.83, 3

 

Answer:  D

Explanation:  Processing time = 5 + 25 + (1.5 × 60) + 30 = 150 seconds. Process capacity = 1/150 × 60 (seconds/minute) × 60 (minutes/hour) = 24 customers per hour. Flow rate = Min(Demand, Process capacity) = Min(20, 24) = 20 customers per hour. Utilization = Flow rate/Process capacity = 20/24 = 0.83. Cycle time = 1/Flow rate = 1/20 × 60 (minutes/hour) = 3 minutes per customer.

Difficulty: 3 Hard

Topic:  How to Compute Flow Rate, Utilization, and Cycle Time

Learning Objective:  03-03 Determine the flow rate, the utilization, and the cycle time of a process.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation

 

 

 

36) A patient leaves an outpatient clinic every 5 minutes. There are 5 patients in the clinic waiting to be seen by the physician. How many minutes will the 5th patient be in the clinic?

1.   A) 5

2.   B) 10

3.   C) 15

4.   D) 25

 

Answer:  D

Explanation:  Flow time = Inventory × Cycle time = 5 patients × 5 minutes per patient = 25 minutes.

Difficulty: 1 Easy

Topic:  How to Compute Flow Rate, Utilization, and Cycle Time

Learning Objective:  03-03 Determine the flow rate, the utilization, and the cycle time of a process.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

37) A team of 10 volunteers is visiting families in a local community to deliver canned goods. It takes one volunteer 4 hours to complete one visit. What is the capacity of the team over the course of an 8-hour workday?

2.   A) 2.5

3.   B) 2

4.   C) 20

5.   D) 25

 

Answer:  C

Explanation:  Process time = 4 hours. Capacity = 1/Process time = 1/4 = 0.25 family per hour per volunteer. Capacity of 10 volunteers over an 8-hour day = 0.25 × 10 × 8 = 20 families per day.

Difficulty: 2 Medium

Topic:  How to Compute Flow Rate, Utilization, and Cycle Time

Learning Objective:  03-03 Determine the flow rate, the utilization, and the cycle time of a process.

Bloom’s:  Understand; Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

38) Guests are arriving at a party at a rate of 12 per minute. Each guest will be checked in, served a drink, and accompanied to his/her table by one receptionist, one bartender, and one usher, respectively. Both the receptionist and usher can serve 10 guests per minute, whereas the bartender takes 5 minutes to serve one guest. Which of the following conclusions can be drawn?

1.   A) The capacity of the bartender is the same as that of the receptionist.

2.   B) The capacity of the bartender is higher than that of the receptionist.

3.   C) The capacity of all three resources is the same.

4.   D) The capacity of the usher is higher than that of the bartender.

 

Answer:  D

Explanation:  Capacity = 1/Process time. Capacity for both the receptionist and usher = 10 guests per minute. Capacity of the bartender is  1/5 = 0.2 guest per minute. Because demand is higher than the capacity of any of the three resources, Flow rate = Capacity. Therefore, the capacity for both the receptionist and usher = 10 guests per minute, which is higher than that of the bartender’s 1/5 = 0.2 guest per minute.

Difficulty: 3 Hard

Topic:  How to Analyze a Multistep Process and Locate the Bottleneck

Learning Objective:  03-04 Find the bottleneck of a multi-step process and determine its capacity.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

39) Guests are arriving at a party at a rate of 12 per minute. Each guest will be checked in, served a drink, and accompanied to his/her table by one receptionist, one bartender, and one usher respectively. Both the receptionist and usher can serve 10 guests per minute, whereas the bartender takes 5 minutes to serve one guest. Which resource is the bottleneck and what is the process capacity in guests per minute?

1.   A) Receptionist, 10

2.   B) Bartender, 5

3.   C) Bartender, 0.2

4.   D) Usher, 5

 

Answer:  C

Explanation:  Capacity = 1/Process time. Capacity for both the receptionist and usher = 10 guests per minute. Capacity of the bartender is  1/5 = 0.2 guest per minute. The bottleneck is the bartender because it is the resource with the lowest capacity. The lowest capacity also defines the process capacity, which is 0.2 guest per minute.

Difficulty: 3 Hard

Topic:  How to Analyze a Multistep Process and Locate the Bottleneck

Learning Objective:  03-04 Find the bottleneck of a multi-step process and determine its capacity.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

40) Guests are arriving at a party at a rate of 12 per minute. Each guest will be checked in, served a drink, and accompanied to his/her table by one receptionist, one bartender, and one usher, respectively. Both the receptionist and usher can serve 10 guests per minute, whereas the bartender takes 5 minutes to serve one guest. The ________ is a nonbottleneck resource and its utilization is ________.

1.   A) usher, 2%

2.   B) bartender, 100%

3.   C) usher, 100%

4.   D) receptionist, 20%

 

Answer:  A

Explanation:  Capacity for both the receptionist and usher = 10 guests per minute. Capacity of the bartender is  1/5 = 0.2 guest per minute. Process capacity = Bottleneck capacity = 0.2 guest per minute. Flow rate = Min(Demand, Process capacity) = Min(12, 0.2) = 0.2 guest per minute. Utilization = Flow rate/Capacity. Utilization for both the receptionist and usher (nonbottleneck) = 0.2/10 = 2%.

Difficulty: 3 Hard

Topic:  How to Analyze a Multistep Process and Locate the Bottleneck

Learning Objective:  03-04 Find the bottleneck of a multi-step process and determine its capacity.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

41) Which of the following statements is FALSE?

1.   A) Nonbottleneck resources have slack capacity.

2.   B) A bottleneck resource must have a utilization of 100%.

3.   C) Nonbottleneck resources have a less than 100% utilization.

4.   D) A bottleneck resource does not always have the longest processing time.

 

Answer:  B

Explanation:  A bottleneck resource can have a less than 100% utilization if the process is demand constrained.

Difficulty: 2 Medium

Topic:  How to Analyze a Multistep Process and Locate the Bottleneck

Learning Objective:  03-04 Find the bottleneck of a multi-step process and determine its capacity.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

42) Patients are arriving at a clinic at a rate of two per minute. Each patient’s visit consists of four steps: check in, record vital signs, receive treatment, and check out. A receptionist takes 1 minute to check a patient in. A nurse takes 2 minutes to record the patient’s vital signs. A doctor spends 10 minutes with a patient. A staff member takes 3 minutes to check a patient out. What is the process capacity in patients per hour?

1.   A) 60

2.   B) 30

3.   C) 20

4.   D) 6

 

Answer:  D

Explanation:  Capacity = 1/ Processing time. Capacity at check in, record vital signs, receive treatment, and check out is 1, 0.5, 0.1, and 0.333 patient per minute respectively. The lowest capacity is the bottleneck and is Process capacity = 0.1 patient per minute = 0.1 × 60 (minutes/hour) = 6 patients per hour.

Difficulty: 1 Easy

Topic:  How to Analyze a Multistep Process and Locate the Bottleneck

Learning Objective:  03-04 Find the bottleneck of a multi-step process and determine its capacity.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

43) Patients are arriving at a clinic at a rate of two per minute. Each patient’s visit consists of four steps: check in, record vital signs, receive treatment, and check out. A receptionist takes 1 minute to check a patient in. A nurse takes 2 minutes to record the patient’s vital signs. A doctor spends 10 minutes with a patient. A staff member takes 3 minutes to check a patient out. What is the utilization of the checkout resource?

1.   A) 100%

2.   B) 33%

3.   C) 20%

4.   D) 10%

 

Answer:  B

Explanation:  Capacity = 1 / Processing time. Capacity at check in, record vital signs, receive treatment, and check out is 1, 0.5, 0.1, and 0.333 patient per minute respectively. The lowest capacity is the bottleneck and is Process capacity = 0.1 patient per minute = 0.1 × 60 (minutes/hour) = 6 patients per hour. Flow rate = Min(Demand, Process capacity) = Min(2, 0.1) = 0.1. Utilization of checkout = Flow rate / Capacity of checkout = 0.1 / 0.333 = 30%.

Difficulty: 3 Hard

Topic:  How to Analyze a Multistep Process and Locate the Bottleneck

Learning Objective:  03-03 Determine the flow rate, the utilization, and the cycle time of a process.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

44) Patients are arriving at a clinic at a rate of two per minute. Each patient’s visit consists of four steps: check in, record vital signs, receive treatment, and check out. A receptionist takes 1 minute to check a patient in. A nurse takes 2 minutes to record the patient’s vital signs. A doctor spends 10 minutes with a patient. A staff member takes 3 minutes to check a patient out. What is the cycle time of the process in minutes?

1.   A) 10

2.   B) 20

3.   C) 30

4.   D) Cannot be determined

 

Answer:  A

Explanation:  Capacity = 1 / Processing time. Capacity at check in, record vital signs, receive treatment, and check out is 1, 0.5, 0.1, and 0.333 patient per minute respectively. The lowest capacity is the bottleneck and is Process capacity = 0.1 patient per minute = 0.1 × 60 (minutes/hour) = 6 patients per hour. Flow rate = Min(Demand, Process capacity) = Min(2, 0.1) = 0.1. Cycle time = 1 / Flow rate = 1 / 0.1 = 10 minutes.

Difficulty: 1 Easy

Topic:  How to Analyze a Multistep Process and Locate the Bottleneck

Learning Objective:  03-03 Determine the flow rate, the utilization, and the cycle time of a process.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

45) When will the utilization of a bottleneck resource be less than 100%?

1.   A) When the process is capacity-constrained

2.   B) When the process is demand-constrained

3.   C) When demand is higher than process capacity

4.   D) When demand is equal to process capacity

 

Answer:  B

Explanation:  A process that is demand-constrained will have a flow rate less than the bottleneck capacity, which means there is slack capacity at the bottleneck resources, causing a less than 100% utilization.

Difficulty: 2 Medium

Topic:  How to Analyze a Multistep Process and Locate the Bottleneck

Learning Objective:  03-04 Find the bottleneck of a multi-step process and determine its capacity.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

46) The capacity of a nonbottleneck resource is ________ the capacity of the process.

1.   A) equal to

2.   B) smaller than

3.   C) larger than

4.   D) The answer depends on the specific process under consideration

 

Answer:  C

Explanation:  A nonbottleneck resource has a higher capacity than the bottleneck of the process.

Difficulty: 1 Easy

Topic:  How to Analyze a Multistep Process and Locate the Bottleneck

Learning Objective:  03-04 Find the bottleneck of a multi-step process and determine its capacity.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

47) Job candidates are leaving an office every 50 minutes. Each candidate goes through three activities during the office visit: verification, written test, and interview. Verification takes 1 minute, the written test takes 40 minutes, and the interview takes 10 minutes. Assume there is only one resource dedicated to each activity. What is the bottleneck capacity in candidates per hour?

1.   A) 1.5

2.   B) 1.2

3.   C) 2.0

4.   D) 2.5

 

Answer:  A

Explanation:  Bottleneck capacity = Min(1, 1/40, 1/10) = 0.025 candidate per minute or 1.5 candidates per hour.

Difficulty: 1 Easy

Topic:  How to Analyze a Multistep Process and Locate the Bottleneck

Learning Objective:  03-04 Find the bottleneck of a multi-step process and determine its capacity.

Bloom’s:  Remember

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

48) Job candidates are leaving an office every 50 minutes. Each candidate goes through three activities during the office visit: verification, written test, and interview. Verification takes 1 minute, the written test takes 40 minutes, and the interview takes 10 minutes. Assume there is only one resource dedicated to each activity. Which of the following conclusions can be drawn?

1.   A) The process is capacity-constrained.

2.   B) The process is demand-constrained.

3.   C) The interview resource is the bottleneck.

4.   D) The process capacity is equal to the bottleneck capacity.

 

Answer:  B

Explanation:  Process capacity = Min(1, 1/40, 1/10) = 0.025 candidate per minute. Flow rate = 1/Cycle time = 1/50 = 0.02 candidate per minute. The process is demand constrained because the flow rate is less than the process capacity.

Difficulty: 3 Hard

Topic:  How to Analyze a Multistep Process and Locate the Bottleneck

Learning Objective:  03-04 Find the bottleneck of a multi-step process and determine its capacity.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

49) Job candidates are leaving an office every 50 minutes. Each candidate goes through three activities during the office visit: verification, written test, and interview. Verification takes 1 minute, the written test takes 40 minutes, and the interview takes 10 minutes. Assume there is only one resource dedicated to each activity. What is the utilization of the bottleneck resource?

1.   A) 100%

2.   B) 80%

3.   C) 20%

4.   D) 2%

 

Answer:  B

Explanation:  Cycle time = 50 minutes. Flow rate = 1/50 = 0.02 customer per minute. Bottleneck capacity = Min(1, 1/40, 1/10) = 0.025 customer per minute. Utilization of the bottleneck resource = Flow rate/Capacity = 0.02/0.025 = 80%.

Difficulty: 3 Hard

Topic:  How to Analyze a Multistep Process and Locate the Bottleneck

Learning Objective:  03-04 Find the bottleneck of a multi-step process and determine its capacity.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

50) There are four steps in the manufacturing process of a stuffed toy: cutting, stuffing, sealing, and packaging. There are two employees each for cutting and stuffing but one each for sealing and packaging. The processing times of cutting, stuffing, sealing, and packaging are 8, 5, 3, and 2 seconds per toy. What is the bottleneck in the process?

1.   A) Cutting

2.   B) Stuffing

3.   C) Sealing

4.   D) Packaging

 

Answer:  A

Explanation:  Capacity = Number of workers/Processing time. Capacity = 2/8, 2/5, 1/3, and 1/2 for cutting, stuffing, sealing, and packaging. The bottleneck is the lowest capacity = 2/8, which is cutting.

Difficulty: 2 Medium

Topic:  How to Analyze a Multistep Process and Locate the Bottleneck

Learning Objective:  03-04 Find the bottleneck of a multi-step process and determine its capacity.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

51) There are four steps in the manufacturing process of a stuffed toy: cutting, stuffing, sealing, and packaging. There are two employees each for cutting and stuffing but one each for sealing and packaging. The processing times of cutting, stuffing, sealing, and packaging are 8, 5, 3, and 2 seconds per toy. What is the capacity in toys per minute at the resource “stuffing”?

1.   A) 24

2.   B) 12

3.   C) 0.4

4.   D) 0.2

 

Answer:  A

Explanation:  Capacity = Number of resources/Processing time = 2/5 toy per second = 2/5 × 60 (seconds/minute) = 24 toys per minute.

Difficulty: 2 Medium

Topic:  How to Analyze a Multistep Process and Locate the Bottleneck

Learning Objective:  03-04 Find the bottleneck of a multi-step process and determine its capacity.

Bloom’s:  Understand

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

52) There are four steps in the manufacturing process of a stuffed toy: cutting, stuffing, sealing, and packaging. There are two employees each for cutting and stuffing but one each for sealing and packaging. The processing times of cutting, stuffing, sealing, and packaging are 8, 5, 3, and 2 seconds per toy. What is the utilization at the “packaging” resource if demand is unlimited?

1.   A) 100%

2.   B) 75%

3.   C) 63%

4.   D) 50%

 

Answer:  D

Explanation:  Capacity of packaging = 1/2. Process capacity = Min(2/8, 2/5, 1/3, 1/2) = 1/4. Flow rate = Min(Demand, Process capacity) = 1/4. Utilization = Flow rate/Capacity = 0.25/0.5 = 50%.

Difficulty: 3 Hard

Topic:  How to Analyze a Multistep Process and Locate the Bottleneck

Learning Objective:  03-03 Determine the flow rate, the utilization, and the cycle time of a process.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

53) Students are going through a three-step process to obtain their ID cards. Each student will spend 2 minutes at the registration desk before going to one of three cashiers to pay a fee for the card. After that, he/she will visit one of four ID processing stations to have his/her picture taken and the ID card printed. Registration takes 2 minutes. Visits to the cashier and ID processing station take 10 and 20 minutes respectively. If the demand rate is 0.5 student per minute, which of the following conclusions can be drawn if resources are doubled at the processing station?

1.   A) The cashier station becomes the bottleneck.

2.   B) There will be no bottleneck in the process.

3.   C) Registration becomes the bottleneck.

4.   D) The processing station becomes the bottleneck.

 

Answer:  A

Explanation:  Bottleneck capacity = Min(1/2, 3/10, 4/20) = 0.2 student per minute at the processing station. If four additional ID stations are added, Bottleneck capacity = Min(1/2, 3/10, 8/20) = 0.3 student per minute at the cashier station.

Difficulty: 3 Hard

Topic:  The Time to Produce a Certain Quantity

Learning Objective:  03-04 Find the bottleneck of a multi-step process and determine its capacity.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

54) There are four steps in the manufacturing process of a stuffed toy: cutting, stuffing, sealing, and packaging. There are two employees each for cutting and stuffing, but one each for sealing and packaging. The processing times of cutting, stuffing, sealing, and packaging are 8, 5, 3, and 2 seconds per toy. Assuming demand is unlimited, how long does it take (in seconds) to produce 2,000 toys starting with an empty system?

1.   A) 8,028

2.   B) 8,014

3.   C) 8,000

4.   D) 7,996

 

Answer:  B

Explanation:  Process capacity = Min(2/8, 2/5, 1/3, 1/2) = 1/4. Flow rate = Min(Demand, Process capacity) = 1/4. Cycle time = 1/Flow rate = 1/0.25 = 4 seconds. Time to complete the first toy = 8 + 5 + 3 + 2 = 18 seconds. Time to complete the remaining 1,999 toys = 1,999 × Cycle time = 1,999 × 4 = 7,996 seconds. Time to make 2,000 toys = 7,996 + 18 seconds, or 8,014 seconds.

Difficulty: 3 Hard

Topic:  The Time to Produce a Certain Quantity

Learning Objective:  03-05 Determine how long it takes to produce a certain order quantity.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

55) There are four steps in the manufacturing process of a stuffed toy: cutting, stuffing, sealing, and packaging. There are two machines each for cutting and stuffing, but one each for sealing and packaging. The processing times of cutting, stuffing, sealing, and packaging are 8, 5, 3, and 2 seconds per toy. Assuming demand is unlimited, how long does it take (in seconds) to produce 2,000 toys starting with a full system?

1.   A) 8,028

2.   B) 8,014

3.   C) 8,000

4.   D) 7,996

 

Answer:  C

Explanation:  Process capacity = Min(2/8, 2/5, 1/3, 1/2) = 1/4. Flow rate = Min(Demand, Process capacity) = 1/4. Cycle time = 1/Flow rate = 1/0.25 = 4 seconds. Time to complete 2,000 toys = 4 × 2,000 seconds, or 8,000 seconds.

Difficulty: 3 Hard

Topic:  The Time to Produce a Certain Quantity

Learning Objective:  03-05 Determine how long it takes to produce a certain order quantity.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

56) Students are going through a three-step process to obtain their ID cards. Each student will spend 2 minutes at the registration desk before going to one of three cashiers to pay a fee for the ID card. After that, he/she will visit one of four ID processing stations to have his/her picture taken and ID card printed. Visits to the cashier and ID processing station take 10 and 20 minutes respectively. If the demand rate is 0.125 student per minute, how long does it take to process 20 students, assuming the system is full?

1.   A) 100 minutes

2.   B) 152 minutes

3.   C) 160 minutes

4.   D) 184 minutes

 

Answer:  C

Explanation:  Process capacity = Min(1/2, 3/10, 4/20) = 0.2 student per minute. Flow rate = Min(Demand, Process capacity) = Min(0.125, 0.2) = 0.125 student per minute. Cycle time = 1/Flow rate = 1/0.125 = 8 minutes. Time to process 20 students = 20 × 8 = 160 minutes.

Difficulty: 3 Hard

Topic:  The Time to Produce a Certain Quantity

Learning Objective:  03-05 Determine how long it takes to produce a certain order quantity.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

57) Students are going through a three-step process to obtain their ID cards. Each student will spend 2 minutes at the registration desk before going to one of three cashiers to pay a fee for the ID card. After that, he/she will visit one of four ID processing stations to have his/her picture taken and ID card printed. Visits to the cashier and ID processing station take 10 and 20 minutes respectively. If the demand rate is 0.125 student per minute, how long does it take to process 20 students, assuming the system is empty?

1.   A) 100 minutes

2.   B) 152 minutes

3.   C) 160 minutes

4.   D) 184 minutes

 

Answer:  D

Explanation:  Process capacity = Min(1/2, 3/10, 4/20) = 0.2 student per minute. Flow rate = Min(Demand, Process capacity) = Min(0.125, 0.2) = 0.125 student per minute. Cycle time = 1/Flow rate = 1/0.125 = 8 minutes. Time to process the first student = 2 + 10 + 20 = 32 minutes. Time to process 20 students = (19 × 8) + 32 = 184 minutes.

Difficulty: 3 Hard

Topic:  The Time to Produce a Certain Quantity

Learning Objective:  03-05 Determine how long it takes to produce a certain order quantity.

Bloom’s:  Analyze

AACSB:  Analytical Thinking

Accessibility:  Keyboard Navigation; Screen Reader Compatible

 

 

 

58) Students are going through a three-step process to obtain their ID cards. Each student will spend 2 minutes at the registration desk before going to one of three cashiers to pay a fee for the ID card. After that, he/she will visit one of four ID processing stations to have his/her picture taken and ID card printed. Visits to the cashier and ID processing station take 10 and 20 minutes respectively. If the demand rate is 0.5 student per minute, how long does it take to process 20 students, assuming the system is empty?

1.   A) 95 minutes

2.   B) 100 minutes

3.   C) 127 minutes

4.   D) 160 minutes

 

Answer:  C

Explanation:  Process capacity = Min(1/2, 3/10, 4/20) = 0.2 student per minute. Flow rate = Min(Demand, Process capacity) = Min(0.5, 0.2) = 0.2 student per minute. Cycle time = 1/Flow rate = 1/0.2 = 5 minutes. Time to process the first student = 2 + 10 + 20 = 32 minutes. Time to process 20 students = (19 × 5) + 32 = 127 minutes.