Questions All Solved Correctly 2026-
2027 Updated.
Process - Answer A set of logically related tasks or activities performed to achieve a defined
business outcome
Primary Process - Answer A process that addresses the main value-added activities of an
organization
- considered value-added because some customer is willing to pay for the resulting outputs
ex. providing a service, educating customers, manufacturing
Support Process - Answer A process that performs necessary, albeit not value-added,
activities
ex. Tuition billing, no student wants to pay tuition and the university would rather not spend the
overhead required to collect it but the university would not be able to sustain itself without
monetary flows from the students
Development Process - Answer A process that seeks to improve the performance of primary
and support processes
ex. developing new products, performing research, training new workers
Mapping - Answer The process of developing graphic representations of the organizational
relationships and/or activities that make up a business process
Process Map (know symbols) - Answer A detailed map that identifies the specific activities
that make up the informational, physical, and/or monetary flow of a process
Measures for Process Performance - Answer 1. Quality - can be further divided into
dimensions such as performance quality, conformance quality, and reliability
2. Cost - can include such categories as labor, material, and quality-related costs
3. Time - includes such dimensions as delivery speed and delivery reliability
4. Flexibility - includes mix, changeover, and volume flexibility
Productivity - Answer = Outputs/Inputs
Efficiency - Answer =100%(actual outputs/standard outputs)
, Cycle Time - Answer Total elapsed time needed to complete a business process
Percent Value-Added Time - Answer 100%(value-added time/total cycle time)
Benchmarking - Answer The process of identifying, understanding, and adapting outstanding
practices from within the same organization or from other businesses to help improve
performance
Competitive Benchmarking - Answer The comparison of an organization's processes with
those of competing organizations
Process Benchmarking - Answer The comparison of an organization's processes with those of
noncompetitors that have been identified as having superior processes
Capacity - Answer The capability of a worker, a machine, a workcenter, a plant, or an
organization to produce output in a time period
Theoretical Capacity - Answer The maximum output capability, allowing for no adjustments
for preventive maintenance, unplanned downtime, or the like
Rated Capacity - Answer The long-term expected output capability of a resource or system
Factors that Affect Capacity - Answer 1. number of lines used
2. number of shifts operating
3. number of temporary workers used
4. number of storage facilities used
5. product variations on line
6. conformance quality
7. quality improvement
Capacity Strategies - Answer 1. Lead strategy - a capacity strategy in which capacity is added
in anticipation of demand
2. lag strategy - a capacity strategy in which capacity is added only after demand has
materialized
3. match strategy - a capacity strategy in which capacity is added only after demand has
materialized