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OPRE 3310 EXAM 2 REVIEW QUESTIONS

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OPRE 3310 EXAM 2 REVIEW QUESTIONS

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OPRE 3310 EXAM 2 REVIEW QUESTIONS

What is a Process? - Answers :A set of activities that take a collection of inputs, perform
some work or activities with those inputs, and then yield a set of outputs.

What should the manager measure to determine if the process is performing well? -
Answers :Process

What are the two key questions the manager of a process should ask? - Answers :Is the
process performing well?

How can we make the process better or improve the process?

What are the rules to Define Flow Unit? - Answers :1.) Choose a flow unit that
corresponds to what you want to track and to measure in the process.

2.) Stick with the flow unit you define.

3.) Choose a flow unit that can be used to measure and describe all activities within the
process.

What is a Process Metric? - Answers :A scale or measure that informs us about the
performance and capability of a process.

What are the Three Key Process Metrics? - Answers :1.) Inventory: the number of flow
units within a process. Requires space and costs money (measured in number of flow
units, for example, 30 patients)

2.) Flow Rate: The rate at which flow units move through the process (measured in
number of flow units per unit of time, for example, 25 patients per day, $ per week,
kilograms per hour, people per month. Always expressed at some unit per unit of time)

3.) Flow Time: The time a flow unit spends in a process from start to finish (measured in
time units, for example, minutes, hours, weeks, months, or years)

What does Inventory tell us? - Answers :How much "stuff" (flow units) is in the process.
Inventory requires space and can cost money (for example, more patients may
necessitate a larger waiting room, more products may necessitate a larger store.)

What does Flow Rate tell us? - Answers :The rate at which "stuff" (flow units) travel
through the process. More units flowing through a process (high flow rate) is generally
desirable because the goal of the process is to produce an output.

, What does Flow Time tell us? - Answers :How much time a flow unit spends in the
process. In manufacturing, low flow times are generally desirable since that means flow
units move through the process more quickly from start to finish.

Over the course of an 8-hour day, a dentist's office treats 24 patients. What is the hourly
flow rate of patients in this dentist's office? - Answers :Flow rate = 24 patients/8 hours =
3 patients per hour

What is Little's Law? - Answers :The law describing the relationship between the three
key process metrics:

Inventory = Flow Rate * Flow Time

I=R*T

Where I = Inventory

R = Flow rate

T = Flow time

During a typical Friday, the West End Donut Shop serves 2,400 customers during the
10 hours it is open.

A customer spends (on average) 5 minutes in the shop.

On average, how many customers (on average) are in the shop simultaneously? -
Answers :2,400 customers / 10 hours = 240 customers per hour

(240 customers / hour) / 60 = 4 customers per minute

Therefore, Flow rate = R = 4 customers per minute

Flow Time = T = 5 minutes (given)

Therefore, I = R * T = 4 customers per minute * 5 minutes = 20 customers

Ten customers visit Candy Haven Bakery from 8 am to 10 am. The customers spend
10, 15, 20, 11, 8, 12, 5, 18, 29, and 32 minutes in the bakery.

What is the average flow rate of customers in the bakery (in customer per hour)? What
is the average number of customers in the bakery at the same time? - Answers :R = 10
customers/2 hours = 5 customers/hour

T = average of times each customer spent in bakery

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