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operations management correct answers management (design, operation, and improvement) of
the transformation processes that create value for society


Order Winners correct answers -competitive dimensions
-criteria that differentiate the products or services of one firm from another (drive a customer to
buy from one company instead of another)
-ex: price, quality, time, flexibility ( in terms of products sold)


strategic framework of operations correct answers Is your business strategy compatible with your
operational structures and, in turn, your Order Winner(s)?


resources in parallel correct answers -resources are performing same activity and flow units go
through only one of them indifferently
ex: Dorothy and Elena can both take payment
-in process flow diagram, for activities with resources in parallel, split flow and put dotted
rectangle around them (if resources perform different activity at same time ~not in parallel ~ then
split flow but no dotted rectangle)


process flow diagram correct answers -take point of view of flow unit (which is what is
transformed from from inputs -> outputs
o some processes have multiple types of flow units (use different color arrows, ex: if burrito
company makes quesadillas)
-in a process we distinguish:
o activities or tasks WHICH ADD VALUE to the flow unit
-represented by boxes
o buffers or work-in process inventories which DO NOT ADD VALUE and ARE NOT
NECESSARY (typical waiting steps) ~represented by triangles

, -put a buffer between every pair of activities done by different resources unless you know for
sure that flow units CANNOT wait in between (buffer at start and end too)
-you may group successive tasks that are performed by same (set of) resources sequentially into
1 rectangle: ex of burrito business-
add vegan cheese --> ^ --> add veggies or add vegan cheese and veggies
o ONLY IF ALL THE RESOURCES BELOW AN ACTIVITY BOX DO ALL THE
ACTIVITIES IN BOX


Capacity (bottleneck) Analysis correct answers -analyzes how well process can perform in BEST
possible scenario
o ex: burritos produced per hr
o key words: process capacity, capacity of resource, rush order flow time


flow analysis correct answers -analyzes how well process is performing at some point in time,
given what the demand is
ex: from 3pm to 4pm, 10 customers came in, how many burritos served?
o key words: flow rate, flow time, inventory


best possible scenario correct answers -constant flow of flow units into process (ex: infinite # of
customers coming into restaurant)
-no flow interruptions (ex: no strike, break, machine breakdown)
-unlimited # of inputs (ex: no shortage of ingredients)
-time it takes to do activity is constant (ex: adding beans, rice, meat takes 25 sec)


irrelevant vs relevant resources correct answers irrelevant if:
1. every time it is used in process, it is used at the same time as another specific resource (ex:
resource being used by person (resource))
2. Available in infinite quantity
3. What it does takes insignificant amount of time

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