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Chapter 4
1. A flowchart traces the flow of:
a. information through a process.
b. customers through a process.
c. equipment through a process.
d. All of these can be traced through a process using a flow chart.
2. A flow chart 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.
3. 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.
4. 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 flow chart.
Answer: b
Reference: A Systematic ApproachDifficulty: ModerateKeywords: handoff, coordination, cross, functional5. An effective tool for showing steps of a service process that have a high level of customer contact is a:
a. Pareto chart.
b. flow chart.
c. service blueprint.
d. check sheet.
Answer: c
Reference: A Systematic ApproachDifficulty: ModerateKeywords: service, blueprint, customer, tool6. The feature that service blueprints 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. the line of visibility.
c. the Mendoza line.
d. a C and a P.
Answer: b
Reference: A Systematic ApproachDifficulty: Moderate
Keywords: service, blueprint, customer, visibility7. A process chart activity that changes, creates, or adds something is a(n):
a. operation.
b. transportation.
c. inspection.
d. delay.
Answer: a
Reference: A Systematic Approach
Difficulty: EasyKeywords: process, chart, symbol
8. 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: A Systematic Approach
Difficulty: Easy
Keywords: process, chart, symbol
9. Which one of the following statements concerning flow diagrams is NOT true?
a. Flow diagrams can take many forms.
b. It is helpful on flow diagrams to label each step with process measurements such as cost, capacity, or total elapsed time.
c. Flow diagrams 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: Designing ProcessesDifficulty: Moderate
Keywords: flow, diagram
10. 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: Designing ProcessesDifficulty: Moderate
Keywords: process, chart, operation, inspection, delay
11. 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: Designing ProcessesDifficulty: ModerateKeywords: process, chart
12. 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: A Systematic ApproachDifficulty: Easy
Keywords: process, chart, symbol
13. 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 labor cost to the university?
a. $60
b. $100
c. $600
d. $36,000
Answer: c
Reference: A Systematic ApproachDifficulty: Moderate
Keywords: annual, labor, cost
14. 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 labor cost to the university?
a. $60
b. $160
c. $576
d. $576,000
Answer: b
Reference: A Systematic Approach
Difficulty: Moderate
Keywords: annual, labor, cost
15. 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 labor cost to the university?
a. $250
b. $500
c. $1000
d. $2,000
Answer: d
Reference: A Systematic ApproachDifficulty: ModerateKeywords: annual, labor, cost
16. 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. If she is paid $25 an hour, how much is her annual labor cost?
a. $1,000
b. $1,250
c. $2,500
d. $3,000
Answer: c
Reference: A Systematic ApproachDifficulty: ModerateKeywords: annual, labor, cost17. 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. If he is paid $30 an hour, how much is his annual labor cost?
a. $250
b. $500
c. $1,000
d. $2,000
Answer: d
Reference: A Systematic ApproachDifficulty: ModerateKeywords: annual, labor, cost18. 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, problem
19. 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. flow chart.
d. Pareto chart.
Answer: d
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: Pareto, chart, problem
20. A manager of a fiberglass molding operation suspects that the number of defects 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
21. Which one of the following techniques will help management trace customer complaints directly to the operations involved?
a. Cause-and-effect diagram
b. Quality circles
c. Quality engineering
d. Specification management
Answer: a
Reference: Evaluating PerformanceDifficulty: ModerateKeywords: cause, effect22. The cause-and-effect diagram is a method that:
a. was developed by W. Edwards Deming.
b. relates a product defect to its potential contributing factors.
c. helps management develop quality circles.
d. reduces the frequency of product design.
Answer: b
Reference: Evaluating PerformanceDifficulty: ModerateKeywords: cause, effect
23. 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, analysis
24. 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 80% of the total complaints?
a. Table/utensils dirty
b. Slow service
c. Food taste
d. Food taste, Table/utensils dirty
Answer: d
Reference: Evaluating Performance
Difficulty: Moderate
Keywords: Pareto, analysis
25. 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
d. Food taste, Table/utensils dirty
Answer: d
Reference: Evaluating PerformanceDifficulty: ModerateKeywords: Pareto, analysis26. 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 shown above each bar.
How was the value for the point represented by the square calculated?
a.
b.
c.
d.
Answer: c
Reference: Evaluating PerformanceDifficulty: ModerateKeywords: Pareto, analysis27. 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 shown above 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, analysis28. 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: benchmarking, model, process29. Which of these questions is not one of the ways that ideas are typically uncovered 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: EasyKeywords: process, redesign30. 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, brainstorming31. Which of the following statements regarding brainstorming is FALSE?
a. After the brainstorming session is over, the design team moves into the get real phase to analyze the ideas.
b. Participants are discouraged from evaluating any ideas generated during the brainstorming session.
c. Anyone can be a participant in the brainstorming session regardless of whether they have seen or heard the process documentation.
d. The get crazy phase of process analysis is when ideas are sought that invert existing rules and examine new approaches.
Answer: c
Reference: Redesigning the ProcessDifficulty: Moderate
Keywords: process, redesign, brainstorming32. 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
33. 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
34. 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
35. 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
36. 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
37. 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
38. 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
39. 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
40. 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
41. 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
FILL In THE BLANK42. The first step of the systematic approach to process analysis is ____________.
Answer: identify opportunitiesReference: A Systematic Approach
Difficulty: ModerateKeywords: identify, opportunities, process, analysis43. Process ____________ is the boundary of the process to be analyzed.
Answer: scopeReference: A Systematic ApproachDifficulty: Easy
Keywords: process, scope, boundary
44. 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: system, suggestion45. ____________ are performance measures that are established for the process and the steps within it.
Answer: MetricsReference: A Systematic Approach
Difficulty: EasyKeywords: metric46. 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
47. A flow chart traces the flow of ____________, ____________, ____________, or ____________ through the various steps of a process.
Answer: information, customers, equipment, materials
Reference: Documenting the ProcessDifficulty: HardKeywords: flow, chart, information, customers, equipment, materials48. A(n) ____________ is a table that lists and categorizes the steps in the process.
Answer: process chart
Reference: Documenting the ProcessDifficulty: ModerateKeywords: process, chart
49. A(n) ____________ represents a decision point in the process.
Answer: diamond
Reference: Documenting the Process
Difficulty: Moderate
Keywords: decision, process, chart50. 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, flow, chart, service, blueprint51. The ____________ in a service blueprint separates which steps are in view of the customer from those that arent.
Answer: line of visibilityReference: Documenting the Process
Difficulty: Moderate
Keywords: line, visibility, service, blueprint52. 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, check, list
53. 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, bar, chart
54. 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, effect, fishbone, Ishikawa
55. 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
56. ____________ is the act of reproducing the behavior of a process using a model that describes each step of the process.
Answer: Process simulation
Reference: Redesigning the Process
Difficulty: Moderate
Keywords: process, simulation
57. A simulation model goes one step further than possible with analysis tools, because it can show how the process performs ____________.
Answer: dynamicallyReference: Redesigning the ProcessDifficulty: ModerateKeywords: process, simulation
58. A(n) ____________ is a time when 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
59. ____________ 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
60. ____________ compares areas such as administration, customer service, and sales operations with those of outstanding firms in any industry.
Answer: Functional benchmarkingReference: Redesigning the Process
Difficulty: Moderate
Keywords: benchmarking, functional
61. ____________ is based on comparison with a direct adversary in industry.
Answer: Competitive benchmarkingReference: Redesigning the ProcessDifficulty: ModerateKeywords: benchmarking, competitive
62. ____________ involves using an organizational unit with superior performance as the ideal for other departments.
Answer: Internal benchmarkingReference: Redesigning the Process
Difficulty: ModerateKeywords: benchmarking, internal
63. The American company that has changed the way the business world looks at benchmarking and knowledge sharing is ____________.
Answer: XeroxReference: Redesigning the ProcessDifficulty: Moderate
Keywords: benchmarking
SHORT ANSWERS64. 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 of the different steps that it 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, improvement
65. How can flow charts 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. Be as complete as time permits.
Answer: Flow charts 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: flow, chart, diagram
66. 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 flow chart, 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 check sheets 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: checksheet, histogram, Pareto chart, fishbone, flow, chart, service, blueprint
67. What is a fishbone chart?
Answer: Also called the cause-and-effect diagram, the fishbone chart relates a key quality problem to its potential causes.
Reference: Evaluating PerformanceDifficulty: Easy
Keywords: fishbone, cause, effect68. 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: ModerateKeywords: benchmarking, competitive, internal, functionalPROBLEMS69. 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?
FormTime to Input (minutes)Quantity (forms/year)
Part A Existing Method31,200,000
Part B Existing Method31,200,000
Part C Existing Method41,100,000
Part A Proposed Method41,200,000
Part 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 Method
Part A
Part B
Part C (web)
Total Proposed Process: 10,900,000 minutes A savings of 700,000 minutes/yearReference: Documenting the ProcessDifficulty: Moderate
Keywords: annual, labor, cost
70. 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 check9
Line too long22
Cashier unfriendly4
Answer:
Reference: Improving Quality Through TQM
Difficulty: Moderate
Keywords: Pareto
71. Because a telephone customer service center has experienced several problems, it has begun to analyze the data from customer complaints. Its first step was to construct the following table. Use this data to build a Pareto chart to help identify the vital few problems.
Problem TypeTotal Problems
Person not available5
Incorrect information given12
Phone line busy7
Long delay 39
Phone tree confusing20
People unfriendly17
Answer:
Reference: Improving Quality Through TQM
Difficulty: Moderate
Keywords: Pareto
72. Develop a process chart for a manual car wash.
Answers will vary, but a typical answer might look like the following
process chart:Inputs
SolverProcess Charts
Enter data in shaded areas.
Process:Manual Car WashSummary
Subject:
Beginning:ActivityNumber of StepsTime (min)
Ending:Operation
69.00
Transport
Inspect
3
11.20
0.50
Delay
10.50
Store
----
Step No.Time (min)Distance (ft)OP
TRAN
DELAY
STORE73. Step Description
11.00--XAttendant accepts instructions from customer
20.4020.0XCar driven into vacuuming area
30.50XDelay waiting for vacuuming
42.00XCar vacuumed
50.3010.0XCar moved to wash area
60.50Delay waiting for wash
73.0020.0XCar washed
80.5010.0XCar dried
90.5010.0XCar moved to hand dry area
102.00XCar hand dried
110.50XFinal inspection
120.50XCar given to customer
Reference: Documenting the Process
Difficulty: Moderate
Keywords: process, chart
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