Test Bank for Operations Management 1st Edition by Cachon

Chapter 03 Test Bank KEY 1. The primary purpose of a process analysis is to crowdsource new product ideas. FALSE The purpose of process an alysisis to improve a process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-01 Draw a process flow diagram. Topic: How to Draw a Process Flow Diagram 2. The capacity of a resource is the average flow rate of that resource. FALSE The capacity of a resource is the maximum number of flow units that can flow through that resource per unit of time. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-02 Determine the capacity for a one-step process. Topic: Capacity for a One-Step Process 3. Cycle time is the same as lead time. FALSE Cycle time is the time between completing two consecutive flow units, whereas lead time is the time between when an order is placed and when it is received. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. Topic: How to Compute Flow Rate, Utilization, and Cycle Time 4. A bottleneck is the resource with the lowest capacity. TRUE A bottleneck is the resource with the lowest capacity in a multistep process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-04 Find the bottleneck of a multi-step process and determine its capacity. Topic: How to Analyze a Multistep Process and Locate the Bottleneck 5. A resource with a utilization of less than 100% is never the bottleneck. FALSE When the process is demand constrained, even the bottleneck will have a utilization of strictly less than 100% AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-04 Find the bottleneck of a multi-step process and determine its capacity. Topic: How to Analyze a Multistep Process and Locate the Bottleneck 6. It matters whether the process starts empty or not when computing the time it takes to produce a certain order quantity. TRUE 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 to Cycle time of the process × (X – 1). AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-05 Determine how long it takes to produce a certain order quantity. Topic: The Time to Produce a Certain Quantity 7. Which of the following statements about process analysis is TRUE? A. Process analysis only matters to those who are in accounting. B. Process analysis is all about keeping track of revenue and costs. C. Process analysis is all about creating demand. D. Process analysis helps one analyze all the activities involved in providing one unit of supply. Process analysis helps in analyzing a process to make improvements. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-01 Draw a process flow diagram. Topic: How to Draw a Process Flow Diagram 8. Resources are shown in a process flow diagram as: A. boxes. B. arrows. C. spheres. D. triangles. Resources are represented as boxes in a process flow diagram. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-01 Draw a process flow diagram. Topic: How to Draw a Process Flow Diagram 9. Inventory is shown as ____________ in a process flow diagram. A. boxes B. arrows C. spheres D. triangles Inventory is shown as triangles in a process flow diagram. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-01 Draw a process flow diagram. Topic: How to Draw a Process Flow Diagram 10. Which of the following is a resource in an outpatient clinic? A. Flu shot B. X-ray machine C. Ambulance D. Reputation Equipment such as an X-ray machine is a resource at an outpatient clinic. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-01 Draw a process flow diagram. Topic: How to Draw a Process Flow Diagram 11. You are filling your prescription at a pharmacy and are waiting in line in front of the pickup window. Which one of the following processes will be upstream relative to your current position in the process? A. Paying for the prescription B. Waiting to take the prescription C. Inspecting the prescription D. Dropping off the prescription You have to drop off the prescription before picking it up. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-01 Draw a process flow diagram. Topic: How to Draw a Process Flow Diagram 12. _______________ are used to show the journey of a flow unit from input to output. A. Boxes B. Arrows C. Spheres D. Triangles Arrows are used to show the journey of a flow unit from input to output. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-01 Draw a process flow diagram. Topic: How to Draw a Process Flow Diagram 13. Refer to the process flow diagram below. Station 1 is at the ______________ of the process. A. downstream B. upstream C. target D. bottleneck The beginning of the flow (where Station 1 is) is called the upstream of the process. AACSB: Analytical Thinking Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-01 Draw a process flow diagram. Topic: How to Draw a Process Flow Diagram 14. Refer to the process flow diagram below. Station 3 is at the ______________ of the process. A. downstream B. upstream C. target D. bottleneck The end of the flow (where Station 3 is) is called the downstream of the process. AACSB: Analytical Thinking Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-01 Draw a process flow diagram. Topic: How to Draw a Process Flow Diagram 15. Refer to the process flow diagram below. Station 2 is the ______________ of Station 1. A. customer B. supplier C. target D. bottleneck Resources downstream are the customers of resources upstream. AACSB: Analytical Thinking Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-01 Draw a process flow diagram. Topic: How to Draw a Process Flow Diagram 16. A process analysis of a hospital’s emergency room can answer all of the following questions EXCEPT: A. What is the average waiting time of a patient? B. How many patients can be treated each day? C. How busy are the physicians in the outpatient clinic? D. How many beds are in the emergency room? 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. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. Topic: How to Draw a Process Flow Diagram 17. Which of the following process flow diagrams is a correct depiction of the checkout process at a store: "Customers wait in line at a common area and will be checked out by the next available cashier." A. B. C. D. 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. AACSB: Analytical Thinking Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-01 Draw a process flow diagram. Topic: How to Draw a Process Flow Diagram 18. Which of the following process flow diagrams is a correct depiction of the checkout process at a store: "Customers wait in line in front of one of three cashiers for checkout." A. B. C. D. There are three triangles (waiting area), one in front of each box (cashier) showing that each cashier has its own waiting line. AACSB: Analytical Thinking Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-01 Draw a process flow diagram. Topic: How to Draw a Process Flow Diagram 19. Which of the following process flow diagrams is a correct depiction of the checkout process at a store: "Customers wait in line to drop off their order in one station before waiting to pick their order up in another station." A. B. C. D. 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). AACSB: Analytical Thinking Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-01 Draw a process flow diagram. Topic: How to Draw a Process Flow Diagram 20. The _______________ of a resource is how long that particular resource takes to complete one flow unit. A. flow time B. flow rate C. processing time D. processing rate The time it takes for a resource to complete one flow unit is called the processing time. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-02 Determine the capacity for a one-step process. Topic: Capacity for a One-Step Process 21. The capacity of a resource determines the ___________ number of flow units that can flow through that resource per unit of time. A. maximum B. minimum C. average D. medium The capacity of a resource determines the maximum number of flow units that can flow through that resource per unit of time. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-02 Determine the capacity for a one-step process. Topic: Capacity for a One-Step Process 22. The process capacity determines the ______________ a process can provide per unit of time. A. minimum flow rate B. maximum flow rate C. maximum flow time D. minimum flow time The process capacity determines the maximum flow rate a process can provide per unit of time. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-02 Determine the capacity for a one-step process. Topic: Capacity for a One-Step Process 23. One employee is in charge of the following activities at a drive-through of a bank: 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? A. 4.25 B. 17 C. 33.75 D. 135 The processing time of a process is the sum of the activity times of all its activities. AACSB: Analytical Thinking Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-02 Determine the capacity for a one-step process. Topic: Capacity for a One-Step Process 24. One employee is in charge of the following activities at a drive-through of a bank: 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? A. 0.007 B. 0.44 C. 26.67 D. 33.75 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. AACSB: Analytical Thinking Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-02 Determine the capacity for a one-step process. Topic: Capacity for a One-Step Process 25. One employee is in charge of the following activities at a drive-through of a bank: 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)? A. 0.007 B. 0.44 C. 26.67 D. 33.75 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. AACSB: Analytical Thinking Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-02 Determine the capacity for a one-step process. Topic: Capacity for a One-Step Process 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? A. 6 B. 18 C. 20 D. 30 Capacity = 3/6 × 60 = 30 customers per hour. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-02 Determine the capacity for a one-step process. Topic: Capacity for a One-Step Process 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? A. 48 B. 144 C. 160 D. 240 Capacity = 3/6 × 60 customers per hour × 8 hours = 240 customers per hour. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-02 Determine the capacity for a one-step process. Topic: Capacity for a One-Step Process 28. Customers are driving away after failing to find a place to park at a supermarket. The process currently is: A. capacity constrained. B. demand constrained. C. supply exceeds demand. D. capacity unconstrained. Customers leaving without being served means that the demand exceeds supply or the supermarket is capacity constrained. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. Topic: How to Compute Flow Rate, Utilization, and Cycle Time 29. Capacity is constrained when _________ exceeds _____________ and the flow rate is equal to ____________. A. supply, demand, process capacity B. supply, demand, demand C. demand, supply, process capacity D. demand, supply, demand 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. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. Topic: How to Compute Flow Rate, Utilization, and Cycle Time 30. The process is ___________ constrained when ___________ exceeds ___________ and the flow rate is equal to the demand rate. A. Demand, supply, demand B. Capacity, supply, demand C. Demand, demand, supply D. Capacity, demand, supply Flow rate is equal to the demand rate means demand is constrained, which happens when supply exceeds demand. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. Topic: How to Compute Flow Rate, Utilization, and Cycle Time 31. Process utilization is the ratio between __________ and ______________. A. flow time, flow rate B. flow rate, process capacity C. process capacity, flow time D. process time, process capacity Process utilization is the ratio between flow rate and process capacity. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. Topic: How to Compute Flow Rate, Utilization, and Cycle Time 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? A. 0.25 B. 4 C. 15 D. Cannot be determined. 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. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Gradable: automatic Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. Topic: How to Compute Flow Rate, Utilization, and Cycle Time 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? A. 0.005, 1 B. 0.004, 0.8 C. 0.24, 0.8 D. 0.3, 1 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. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Gradable: automatic Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. Topic: How to Compute Flow Rate, Utilization, and Cycle Time 34. Which of the following statements is TRUE? A. Utilization of a resource is at its maximum when the flow rate exceeds its capacity. B. Utilization of a resource is at its maximum when the flow rate is equal to its capacity. C. Utilization of a resource is at its minimum when the flow rate exceeds its capacity. D. Utilization of a resource is at its minimum when the flow rate is equal to its capacity. Utilization of a resource is at its maximum when it is equal to one or the flow rate is equal to its capacity. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Gradable: automatic Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. Topic: How to Compute Flow Rate, Utilization, and Cycle Time 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 demand rate is 20 customers per hour, what are the flow rate (in customers per hour), utilization, and cycle time (in minutes per customer)? A. 24, 1, 0.04 B. 24, 1, 2.5 C. 20, 0.83, 0.05 D. 20, 0.83, 3 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. AACSB: Analytical Thinking Blooms: Analyze Difficulty: 3 Hard Gradable: automatic Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. Topic: How to Compute Flow Rate, Utilization, and Cycle Time 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 long will a patient be in the clinic? A. 5 B. 10 C. 15 D. 25 Flow time = Inventory × Cycle time = 5 patients × 5 minutes per patient = 25 minutes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Gradable: automatic Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. Topic: How to Compute Flow Rate, Utilization, and Cycle Time 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? A. 2.5 B. 2 C. 20 D. 25 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. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Gradable: automatic Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. Topic: How to Compute Flow Rate, Utilization, and Cycle Time 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? A. The capacity of the bartender is the same as that of the receptionist. B. The capacity of the bartender is higher than that of the receptionist. C. The capacity of all three resources is the same. D. The capacity of the usher is higher than that of the bartender. 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. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Gradable: automatic Learning Objective: 03-04 Find the bottleneck of a multi-step process and determine its capacity. Topic: How to Analyze a Multistep Process and Locate the Bottleneck 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? A. Receptionist, 10 B. Bartender, 5 C. Bartender, 0.2 D. Usher, 5 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. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-04 Find the bottleneck of a multi-step process and determine its capacity. Topic: How to Analyze a Multistep Process and Locate the Bottleneck 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 ____. A. Usher, 2% B. Bartender, 100% C. Usher, 100% D. Receptionist, 20% 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%. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-04 Find the bottleneck of a multi-step process and determine its capacity. Topic: How to Analyze a Multistep Process and Locate the Bottleneck 41. Which of the following statements is FALSE? A. Nonbottleneck resources have slack capacity. B. A bottleneck resource must have a utilization of 100%. C. Nonbottleneck resources have a less than 100% utilization. D. A bottleneck resource does not always have the longest processing time. A bottleneck resource can have a less than 100% utilization if demand constrained the process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-04 Find the bottleneck of a multi-step process and determine its capacity. Topic: How to Analyze a Multistep Process and Locate the Bottleneck 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? A. 60 B. 30 C. 20 D. 6 Capacity = 1/Processing time. Capacity at check in, record vital signs, receive treatment, and check out is 1, 0.5, 0.1, and 0.3 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. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-04 Find the bottleneck of a multi-step process and determine its capacity. Topic: How to Analyze a Multistep Process and Locate the Bottleneck 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? A. 100% B. 33% C. 20% D. 10% Capacity = 1/Processing time. Capacity at check in, record vital signs, receive treatment, and check out is 1, 0.5, 0.1, and 0.3 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 = 0.1/0.3 = 33%. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. Topic: How to Analyze a Multistep Process and Locate the Bottleneck 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? A. 10 B. 20 C. 30 D. Cannot be determined Capacity = 1/Processing time. Capacity at check in, record vital signs, receive treatment, and check out is 1, 0.5, 0.1, and 0.3 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. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. Topic: How to Analyze a Multistep Process and Locate the Bottleneck 45. When will the utilization of a bottleneck resource be less than 100%? A. When the process is capacity constrained B. When the process is demand constrained C. When demand is higher than process capacity D. When demand is equal to process capacity 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. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-04 Find the bottleneck of a multi-step process and determine its capacity. Topic: How to Analyze a Multistep Process and Locate the Bottleneck 46. The capacity of a nonbottleneck resource is __________ the capacity of the process. A. equal to B. smaller than C. larger than D. The answer depends on the specific process under consideration. A nonbottleneck resource has a higher capacity than the bottleneck of the process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-04 Find the bottleneck of a multi-step process and determine its capacity. Topic: How to Analyze a Multistep Process and Locate the Bottleneck 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? A. 1.5 B. 1.2 C. 2.0 D. 2.5 Bottleneck capacity = Min(1, 1/40, 1/10) = 0.025 candidate per minute or 1.5 candidates per hour. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 03-04 Find the bottleneck of a multi-step process and determine its capacity. Topic: How to Analyze a Multistep Process and Locate the Bottleneck 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? A. The process is capacity constrained. B. The process is demand constrained. C. The interview resource is the bottleneck. D. The process capacity is equal to the bottleneck capacity. 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. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 3 Hard Gradable: automatic Learning Objective: 03-04 Find the bottleneck of a multi-step process and determine its capacity. Topic: How to Analyze a Multistep Process and Locate the Bottleneck 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? A. 100% B. 80% C. 20% D. 2% 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%. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Gradable: automatic Learning Objective: 03-04 Find the bottleneck of a multi-step process and determine its capacity. Topic: How to Analyze a Multistep Process and Locate the Bottleneck 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? A. Cutting B. Stuffing C. Sealing D. Packaging 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. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-04 Find the bottleneck of a multi-step process and determine its capacity. Topic: How to Analyze a Multistep Process and Locate the Bottleneck 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"? A. 24 B. 12 C. 0.4 D. 0.2 Capacity = Number of resources/Processing time = 2/5 toy per second = 2/5 × 60 (seconds/minute) = 24 toys per minute. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-04 Find the bottleneck of a multi-step process and determine its capacity. Topic: How to Analyze a Multistep Process and Locate the Bottleneck 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? A. 100% B. 75% C. 63% D. 50% 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%. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. Topic: How to Analyze a Multistep Process and Locate the Bottleneck 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? A. The cashier station becomes the bottleneck. B. There will be no bottleneck in the process. C. Registration becomes the bottleneck. D. The processing station becomes the bottleneck. 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. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Gradable: automatic Learning Objective: 03-04 Find the bottleneck of a multi-step process and determine its capacity. Topic: The Time to Produce a Certain Quantity 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 2000 toys starting with an empty system? A. 8028 B. 8014 C. 8000 D. 7996 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 1999 toys = 1999 × Cycle time = 1999 × 4 = 7996 seconds. Time to make 2000 toys = 7996 + 18 seconds, or 8014 seconds. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-05 Determine how long it takes to produce a certain order quantity. Topic: The Time to Produce a Certain Quantity 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 2000 toys starting with a full system? A. 8028 B. 8014 C. 8000 D. 7996 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 2000 toys = 4 × 2000 seconds, or 8000 seconds. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-05 Determine how long it takes to produce a certain order quantity. Topic: The Time to Produce a Certain Quantity 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? A. 100 minutes B. 152 minutes C. 160 minutes D. 184 minutes 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. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-05 Determine how long it takes to produce a certain order quantity. Topic: The Time to Produce a Certain Quantity 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? A. 100 minutes B. 152 minutes C. 160 minutes D. 184 minutes 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. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-05 Determine how long it takes to produce a certain order quantity. Topic: The Time to Produce a Certain Quantity 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? A. 95 minutes B. 100 minutes C. 127 minutes D. 160 minutes 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. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-05 Determine how long it takes to produce a certain order quantity. Topic: The Time to Produce a Certain Quantity 59. 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 full? A. 95 minutes B. 100 minutes C. 127 minutes D. 160 minutes 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 20 students = 20 × 5 = 100 minutes. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-05 Determine how long it takes to produce a certain order quantity. Topic: The Time to Produce a Certain Quantity 60. Every student who wishes to enter the public library at Hotel de Ville (HdV) in the center of Paris, needs to go through the following steps: a. Show your ID to one of the two guards at the entrance of the HdV building—20 seconds b. Have your bag go through the metal detector—30 seconds c. Give your ID card to the ground floor desk clerk, who will give you in exchange a magnetic badge—1 minute d. Take the stairs up to the fourth floor of the building, where the library is located—2 minutes (Note: multiple people can be on the stairs at the same time) e. Show your badge to one of the two desk clerks at the library entrance to have your badge number archived—30 seconds f. Enter the library and get assigned to a numbered seat by one of the two librarians—40 seconds When the library opens at 9 a.m., there is usually a very long queue of people waiting to get in. How long does it take for the 25 seats in the library to be occupied (assuming there are at least 25 people in the queue)? A. 9 minutes B. 18 minutes C. 29 minutes D. 45 minutes Use the "Time to finish X units starting with an empty system" equation: The first customer requires 20 + 30 + 60 + 120 + 30 + 40 = 300 seconds, or 5 minutes. Cycle time after that is based on the bottleneck, step 3, at 1 minute. 24 × 1 = 24 minutes for the remaining 24 seats. Total time is 5 + 24 = 29 minutes. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-05 Determine how long it takes to produce a certain order quantity. Topic: The Time to Produce a Certain Quantity 61. A community health system’s nurse team consists of 12 nurses working in the local community. It takes a nurse 1.5 hours to complete one patient visit (including travel times and breaks). What is the capacity of the nurse team over the course of a 9-hour workday? A. 162 patients B. 12 patients C. 72 patients D. 100 patients The capacity of 1 nurse is 1/Processing time, or 1/1.5 hours = 0.667 patient per hour. 0.667 × 9 hours = 6 patients per day. There are 12 nurses × 6 patients = 72 patients per day. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-02 Determine the capacity for a one-step process. Topic: Capacity for a One-Step Process 62. A community health system’s nurse team consists of 12 nurses working in the local community. It takes a nurse 1.5 hours to complete one patient visit (including travel times and breaks). Assuming the demand for the nurses is 60 patients per day, what is the utilization of the nurse team? A. 100% B. 33.3% C. 66.66% D. 83.33% Utilization is Flow rate/Capacity, or 60/72 = 0.8333, or 83.33%. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. Topic: How to Compute Flow Rate, Utilization, and Cycle Time 63. An electric car company operates a manufacturing facility with 160 robots and 3000 employees. The process produces some 500 vehicles each week. It takes a car about 5 days to move from the beginning of the process to the end. The plant operates for 16 hours per day, 5 days a week. What is the cycle time of the process? A. 5 minutes/car B. 0.0009 minute/car C. 9.6 minutes/car D. 40 minutes/car Cycle time = 1/Flow rate. Flow rate is 500 cars per week, or 16 × 5 = 80 hours. Cycle time = 1/(500/80) = 0.16 hour per car, or 0.16 × 60 minutes = 9.6 minutes per car. AACSB: Reflective Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. Topic: How to Compute Flow Rate, Utilization, and Cycle Time Chapter 03 Test Bank Summary Category # of Questions AACSB: Analytical Thinking 59 AACSB: Reflective Thinking 4 Accessibility: Keyboard Navigation 53 Blooms: Analyze 9 Blooms: Remember 22 Blooms: Understand 32 Difficulty: 1 Easy 21 Difficulty: 2 Medium 32 Difficulty: 3 Hard 10 Gradable: automatic 63 Learning Objective: 03-01 Draw a process flow diagram. 13 Learning Objective: 03-02 Determine the capacity for a one-step process. 10 Learning Objective: 03-03 Determine the flow rate, the utilization, and the cycle time of a process. 17 Learning Objective: 03-04 Find the bottleneck of a multi-step process and determine its capacity. 15 Learning Objective: 03-05 Determine how long it takes to produce a certain order quantity. 8 Topic: Capacity for a One-Step Process 10 Topic: How to Analyze a Multistep Process and Locate the Bottleneck 17 Topic: How to Compute Flow Rate, Utilization, and Cycle Time 13 Topic: How to Draw a Process Flow Diagram 14 Topic: The Time to Produce a Certain Quantity 9 Chapter 05 Test Bank KEY 1. All flow units should have the same exit point in a production process. FALSE Attrition loss is an example of when flow units exit the process before completion. Therefore, some flow units exit the process earlier than others. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 05-01 Compute the demand for a resource in the presence of a product mix. Topic: Generalized Process Flow Patterns 2. A bottleneck resource must have an implied utilization less than 100%. FALSE An implied utilization less than 100% simply means that the resource has capacity to meet demand. It has no bearing on whether or not the resource is a bottleneck. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 05-02 Find the bottleneck in a general process flow by computing implied utilization levels. Topic: How to Find the Bottleneck in a General Process Flow 3. The overall process yield is the sum total of the yields of all resources. FALSE The overall process yield is the product of the yields of all resources. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 05-03 Compute the yield of a process and be able to analyze a process flow with yield loss. Topic: Attrition Losses, Yields, and Scrap Rates 4. When analyzing a process flow with flow unit dependent processing times, the unit of analysis should be a unit of demand. FALSE The unit of analysis for a flow unit becomes a minute or hour of work instead of a unit of demand when analyzing a process flow with flow unit dependent processing times. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 05-04 Analyze a process flow with flow unit–dependent processing times. Topic: Flow Unit–Dependent Processing Times 5. Rework always lowers the process capacity. FALSE Rework lowers the process capacity only when it involves a bottleneck resource in restoring reworked units. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Analyze Difficulty: 3 Hard Gradable: automatic Learning Objective: 05-05 Analyze a process flow with rework. Topic: Rework 6. Reworked units consume more time at a resource involved with rework than good units. TRUE Reworked units revisit a resource and therefore consume more time at that resource than good units. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 05-05 Analyze a process flow with rework. Topic: Rework 7. Customers at an e-retailer site abandon their shopping carts without completing their purchase. This is an example of _____________. A. attrition loss B. attrition gain C. attention loss D. attention gain Attrition loss refers to flow units leaving the process without completion. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 05-01 Compute the demand for a resource in the presence of a product mix. Topic: Generalized Process Flow Patterns 8. A store manager at C&A notices that 20% of customers come to browse but not buy, 5% of them need assistance to complete their purchases, and 3% simply window shop. This is a _____________ situation where customers take different paths through the shopping process. A. process mix B. operation mix C. product mix D. market mix A product mix refers to a combination of different flow unit types moving through a process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 05-01 Compute the demand for a resource in the presence of a product mix. Topic: Generalized Process Flow Patterns 9. A store manager at C&A notices that not all customers who walk into the store will make a purchase. About 20% come to browse but not buy, 10% need assistance from an assistant manager, and 5% need assistance from the store manager. C&A has one greeter, two assistant managers, one store manager, and six cashiers. In setting up a demand matrix, how many rows of resource type and columns of customer type does C&A need? A. 10, 3 B. 10, 4 C. 4, 4 D. 5, 5 There are four types of resources and four types of customers. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 05-01 Compute the demand for a resource in the presence of a product mix. Topic: Generalized Process Flow Patterns 10. Not all of the 100 customers who walk into the C&A store per day will make a purchase. About 20% come to browse but not buy, 10% need assistance to complete a purchase, and 5% need assistance but leave without making a purchase. The other 65% purchase something without requiring assistance. C&A has one greeter (who greets every customer), two assistants (who deal with customers who need assistance), and two cashiers (who serve customers who purchase something). What does the demand matrix for C&A look like? A. Browse Buy Greeter 20 80 Assistant 0 10 Cashier 0 75 B. Browse Help Buy Greeter 20 15 80 Assistant 0 15 0 Cashier 0 15 75 C. Browse Help Buy Greeter 20 10 65 Assistant 0 10 0 Cashier 0 10 65 D. Browse Help + Buy Help + Leave Buy Greeter 20 10 5 65 Assistant 0 10 5 0 Cashier 0 10 0 65 There are four customer types and three resource types. AACSB: Analytical Thinking Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 05-01 Compute the demand for a resource in the presence of a product mix. Topic: Generalized Process Flow Patterns 11. Not all of the 100 customers who walk into the C&A store per day will make a purchase. About 20% come to browse but not buy, 10% need assistance to complete a purchase, and 5% need assistance but leave without making a purchase. The other 65% purchase something without requiring assistance. C&A has one greeter (who greets every customer), two assistants (who deal with customers who need assistance), and two cashiers (who serve customers who purchase something). What is the total demand rate per day for the greeter? A. 100 B. 20 C. 15 D. 10 Demand for greeter = 20 + 10 + 5 + 65 = 100. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 05-01 Compute the demand for a resource in the presence of a product mix. Topic: Generalized Process Flow Patterns 12. Not all of the 100 customers who walk into the C&A store per day will make a purchase. About 20% come to browse but not buy, 10% need assistance to complete a purchase, and 5% need assistance but leave without making a purchase. The other 65% purchase something without requiring assistance. C&A has one greeter (who greets every customer), two assistants (who deal with customers who need assistance), and two cashiers (who serve customers who purchase something). What is the total demand rate per day for assistants? A. 100 B. 20 C. 15 D. 10 Demand for assistants = 10 + 5 = 15. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 05-01 Compute the demand for a resource in the presence of a product mix. Topic: Generalized Process Flow Patterns 13. Not all of the 100 customers who walk into the C&A store per day will make a purchase. About 20% come to browse but not buy, 10% need assistance to complete a purchase, and 5% need assistance but leave without making a purchase. The other 65% purchase something without requiring assistance. C&A has one greeter (who greets every customer), two assistants (who deal with customers who need assistance), and two cashiers (who serve customers who purchase something). What is the total demand rate per day for cashiers? A. 100 B. 75 C. 65 D. 25 Demand for cashiers = 10 + 65 = 75. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 2 Medium Gradable: automatic Learning Objective: 05-01 Compute the demand for a resource in the presence of a product mix. Topic: Generalized Process Flow Patterns 14. A ________ is a combination of different flow unit types moving through a process. A. capacity mix B. demand matrix C. product matrix D. product mix A product mix is a combination of different flow unit types moving through a process. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 05-01 Compute the demand for a resource in the presence of a product mix. Topic: Generalized Process Flow Patterns 15. A __________ determines how many flow units of each type are flowing through each __________. A. demand matrix, process B. demand matrix, resource C. product mix, process D. product mix, resource A demand matrix determines how many flow units of each type are flowing through each resource. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 05-01 Compute the demand for a resource in the presence of a product mix. Topic: Generalized Process Flow Patterns 16. All students register with the receptionist upon arrival at the orientation. The receptionist will assign each student to one of four groups for a campus tour. Each campus tour has its designated tour guide. In setting up a demand matrix, how many rows of resource type and columns of flow unit type does the situation have? A. 5, 2 B. 2, 2 C. 5, 4 D. 2, 4 Each student will be assigned to one of the four tour groups. Therefore, there will be four types of students and five types of resources-the receptionist and tour guides 1-4. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Understand Difficulty: 1 Easy Gradable: automatic Learning Objective: 05-01 Compute the demand for a resource in the presence of a product mix. Topic: Generalized Process Flow Patterns 17. C&A makes two types of products using four machines. Product A visits machines 1, 2, and 4. Product B only visits machines 1 and 3. The demand per day is 40 units for Product A and 160 units for Product B. What does the demand matrix for C&A look like? A. All products Machine 1 200 Machine 2 40 Machine 3 160 Machine 4 40 B. Product A Product B Machine 1 1 1 Machine 2 1 0 Machine 3 0 1 Machine 4 1 0 C. Product A Product B Machine 1 40 160 Machine 2 40 0 Machine 3 0 160 Machine 4 40 0 D. Product A Product B All machines 40 160 Demand rate for Product A is 40 units per day. Demand rate for Product B is 160 units per day. Machine 1 is visited by Products A and B. Machine 2 is visited by Product A only. Machine 3 is visited by Product B only. Machine 4 is visited by Product A only. AACSB: Analytical Thinking Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 05-01 Compute the demand for a resource in the presence of a product mix. Topic: Generalized Process Flow Patterns 18. Which of the following statements is TRUE regarding implied utilization? A. A resource with an implied utilization of 1.7 means that capacity exceeds demand by 1.7%. B. A resource with an implied utilization of 1.7 means that demand exceeds capacity by 1.7% C. A resource with an implied utilization of 1.7 means that demand exceeds capacity by 70%. D. A resource with an implied utilization of 1.7 means that capacity exceeds demand by 70%. Implied utilization = Total demand at the resource/Capacity at the resource. Therefore, if implied utilization is 1.7, that means demand exceeds capacity by 1.7 – 1 = 70%. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 05-02 Find the bottleneck in a general process flow by computing implied utilization levels. Topic: How to Find the Bottleneck in a General Process Flow 19. Which of the following statements is TRUE regarding utilization and implied utilization? A. Utilization measures by how much demand exceeds the capacity of the resource. B. Utilization can exceed 1. C. Implied utilization can exceed 1. D. Implied utilization is a measure of demand variability. Implied utilization measures by how much demand exceeds the capacity of the resource. If it exceeds 1, then it means the process is capacity constrained. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 05-02 Find the bottleneck in a general process flow by computing implied utilization levels. Topic: How to Find the Bottleneck in a General Process Flow 20. _________ is constrained if the implied utilization of any resource is above 100%. A. Capacity B. Demand C. Bottleneck D. Inventory Capacity is constrained if the implied utilization of any resource is above 100%. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 05-02 Find the bottleneck in a general process flow by computing implied utilization levels. Topic: How to Find the Bottleneck in a General Process Flow 21. A process is ______________ constrained if the highest implied utilization of all resources is less than or equal to 100%. A. capacity B. demand C. bottleneck D. supply Demand is constrained if the implied utilization of the resource is below 100%. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 05-02 Find the bottleneck in a general process flow by computing implied utilization levels. Topic: How to Find the Bottleneck in a General Process Flow 22. The steps involved in finding the bottleneck in a process with a product mix include all the following EXCEPT: A. compute the total demand rate for each resource. B. compute the capacity level for each resource. C. compute the flow rate for each resource. D. compute the implied utilization for each resource. The bottleneck in a process with a product mix is the resource with the highest implied utilization for each process and does not involve the flow rate. Besides, flow rate should be computed in relation to each flow unit type. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 05-02 Find the bottleneck in a general process flow by computing implied utilization levels. Topic: How to Find the Bottleneck in a General Process Flow 23. The resource with the ____________ is the bottleneck in a process with multiple types of flow units. A. highest capacity B. lowest capacity C. highest implied utilization D. lowest implied utilization The resource with the highest implied utilization is the bottleneck in a process with multiple types of flow units. AACSB: Analytical Thinking Accessibility: Keyboard Navigation Blooms: Remember Difficulty: 1 Easy Gradable: automatic Learning Objective: 05-02 Find the bottleneck in a general process flow by computing implied utilization levels. Topic: How to Find the Bottleneck in a General Process Flow 24. C&A makes two types of products using four machines from 9 a.m. to 5 p.m. each day. Product A visits machines 1, 2, and 4. Product B only visits machines 1 and 3. The capacity is 0.4 unit per minute at machine 1, 0.12 unit per minute at machine 2, 0.2 unit per minute at machine 3, and 0.3 unit per minute at machine 4. The demand per day is 40 units for Product A and 160 units for Product B. Which is the implied utilization for the bottleneck resource? A. 1.67 B. 1.04 C. 0.69 D. 0.28 Total demand rate for machine 1 = 40