Krajewski Om9 Tif 04

Chapter 4 Process Analysis
Chapter
4
Process Analysis
TRUE/FALSE
1. Process analysis is the documentation and detailed understanding of how work is
performed and how it can be redesigned.
Answer: True
Reference: A Systematic Approach
Difficulty: Easy
Keywords: process analysis
2. The four core processes that merit thorough analysis are supplier relationship, new
serice!product deelopment, order fulfillment, and serice!product recoery.
Answer: "alse
Difficulty: #oderate
Keywords: core process, process analysis
$. An employee suggestion system can be an effectie method for identifying processes that
need improement.
Answer: True
Difficulty: Easy
Keywords: employee suggestion system, process analysis
%. Performance measures that are established for a process are known as metrics.
Answer: True
Difficulty: Easy
Keywords: metrics, performance measures
&. Process improement teams that focus on processes that cut across departmental
boundaries hae the silo mentality.
Answer: "alse
Difficulty: Easy
Keywords: silo, improement teams, process analysis
'. (nce a process is identified, defined, ealuated, and redesigned, the benefits of the process
analysis cycle are reali)ed.
Answer: "alse
Difficulty: moderate
Keywords: process analysis cycle, implementation
Copyright 2010 Pearson Education, Inc. Publishing as Prentice Hall
*. "lowcharts, serice blueprints, and process charts are effectie for documenting and
ealuating processes.
Answer: True
Reference: +ocumenting the Process
Difficulty: Easy
Keywords: flowchart, process documentation
,. A serice blueprint is a flowchart of a serice process that shows which of its steps has
high customer contact.
Answer: True
Keywords: serice blueprint, serice process, flowchart
-. "ormal work measurement techni.ues estimate aerage times for each step in a process by
relying on the /udgment of skilled obserers.
Answer: True
Reference: 0ork #easurement Techni.ues
Difficulty: Easy
Keywords: work measurement, labor standard, aerage process times
11. "atigue, rest, or unaoidable delays are factored into a work standard by the performance
rating factor.
Answer: "alse
Keywords: allowances, standard time, normal time, performance rating factor
11. Elemental standard time data can help managers deelop time standards for new work
before production begins.
Answer: True
Keywords: elemental standard data
12. The predetermined data approach eliminates the need for time studies.
Answer: True
Keywords: predetermined data approach, time studies
1$. A predetermined data approach to time standards can be completed before actual
production begins.
Answer: True
Keywords: predetermined data approach
1%. The predetermined data approach assumes that a se.uence of motions will take the same
amount of time regardless of the order in which they are performed.
Answer: True
Keywords: predetermined data approach
1&. 0ork sampling can be used to estimate the proportion of time spent by people or machines
on actiities.
Answer: True
Keywords: work sampling, proportion
1'. 0hen using work sampling, the times of day when the analyst collects the sample data
should be selected at random oer the length of the study.
Answer: True
Keywords: work sampling, data collection
1*. A learning cure is a line showing the relationship between processing time and the
cumulatie .uantity of a product or serice produced.
Answer: True
Keywords: learning cure analysis
1,. The learning cure for a process depends on the rate of learning and the actual or
estimated time for the first unit processed.
Answer: True
Keywords: learning cure analysis
1-. The best data analysis tool for recording which gas pump most customers use would be a
checklist.
Answer: True
Reference: Ealuating Performance
Keywords: data analysis, checklist
21. A histogram is a summari)ation of data measured on a yes2or2no basis.
Answer: "alse
Keywords: histogram, data measurement
21. The general principle that ,13 of a company4s reenue is generated by 213 of its
customers is known as the Pareto concept.
Answer: True
Keywords: Pareto chart, Pareto principle
22. A scatter diagram is a graphical techni.ue that shows whether two ariables may be
related.
Answer: True
Keywords: scatter diagram, ariables
2$. A fishbone diagram identifies which category is most fre.uently obsered out of all the
categories for which you hae data.
Answer: "alse
Keywords: fishbone diagram, cause2and2effect diagram
2%. +ata snooping is the ac.uisition of e5ternal benchmarking data een when the e5ternal
organi)ation has not authori)ed a formal benchmarking agreement.
Answer: "alse
Keywords: data snooping
2&. Simulation is an act of reproducing the behaior of a process using a model that describes
each step of the process.
Answer: True
Keywords: simulation, process model
2'. A group of people, who are knowledgeable about the process and its disconnects, meets to
propose ideas for change in a rapid2fire manner. Such a session is called a brainstorming
session.
Answer: True
Reference: 6edesigning the Process
Difficulty: Easy
Keywords: brainstorming, process ideas
2*. The only people who can proide input to a brainstorming session are members of the
design team.
Answer: "alse
Difficulty: Easy
Keywords: brainstorming, design team
2,. 7rainstorming sessions can be effectiely conducted on the 8nternet using software that
allows one person to see another4s ideas and build on them.
Answer: True
Difficulty: Easy
Keywords: brainstorming, 8nternet software
2-. The bursar4s office at a large state school sends a team to the bookstore on campus to see
how they handle customers and process payments. This is an e5ample of functional
benchmarking.
Answer: "alse
Difficulty: 9ard
Keywords: functional benchmarking, internal benchmarking
$1. 7enchmarking by tracking the performance of a process oer time is always aailable.
Answer: True
Keywords: benchmarking, process time
$1. 7enchmarking is a continuous, systematic procedure that measures a firm4s products,
serices, and processes against those of industry leaders.
Answer: True
Keywords: benchmarking, measure, industry leader
$2. A great /ob of flowcharting and benchmarking a process is of only academic interest if the
proposed changes are not implemented.
Answer: True
Reference: #anaging Processes
Keywords: process implementation
$$. 8mplementing a beautifully redesigned process completes the continuous monitoring and
improement process.
Answer: "alse
:eywords; process implementation, continuous process improement
MULTIPLE CHOICE
$%. Process analysis focuses on;
a. how work is actually done.
b. who is responsible for the customer.
c. the customer4s needs.
d. the number of steps in between supplier and customer.
Answer: a
Reference: Process Analysis Across the (rgani)ation
Difficulty: Easy
$&. 0hich of these is <(T a core process that managers would focus on for improement
opportunities=
a. Supplier relationships
b. <ew product!serice deelopment
c. (rder fulfillment
d. Employee training
Answer: d
Difficulty: Easy
Keywords: core process, opportunity identification
$'. A oluntary system by which employees submit their ideas on process improements is
used in the;
a. scope definition phase of process analysis.
b. process redesign phase of process analysis.
c. performance ealuation phase of process analysis.
d. opportunity identification phase of process analysis.
Answer: d
Keywords: employee suggestion system, opportunity identification
$*. A oluntary system by which employees submit their ideas on process improements is
called;
a. process contribution.
b. a suggestion system.
c. a brainstorming session.
d. a Pareto system.
Answer: b
Difficulty: Easy
Keywords: employee suggestion system
$,. The step in process analysis that immediately follows the scope definition phase is the;
a. document process phase.
b. ealuate performance phase.
c. redesign process phase.
d. implement changes phase.
Answer: a
Reference; A Systematic Approach
Keywords: scope definition, process documentation
$-. The step in process analysis that immediately follows the process documentation phase is
the;
a. define scope phase.
b. ealuate performance phase.
Answer: b
Keywords: process documentation phase, ealuate performance phase
%1. The step in process analysis that immediately follows the performance ealuation phase is
the;
a. document process phase.
b. define scope phase.
Answer: c
Keywords: performance ealuation, process redesign
%1. A systematic approach to process analysis includes the step;
a. reengineering.
b. integration.
c. order fulfillment.
d. define scope.
Answer: d
Difficulty: Easy
Keywords: define scope, process analysis, systematic approach
%2. An e5amination of strategic issues such as possible gaps between a process4s competitie
priorities and current competitie capabilities falls in the;
a. document process phase of process analysis.
b. ealuate performance phase of process analysis.
c. redesign process phase of process analysis.
d. identify opportunities phase of process analysis.
Answer: d
Keywords: identify opportunities, strategic issues, gap, competitie priorities, competitie
capabilities
%$. The resources that management assigns to improing or reengineering the process should;
a. outweigh the conse.uences.
b. match the process4s scope.
c. be at risk for less time than the redesign takes.
d. be less costly than the total downtime during redesign.
Answer: b
Keywords: resources, scope, process improement, process reengineering
%%. 8f a process under analysis is e5tensie and cuts across seeral departmental lines, it may
benefit from forming a>n?;
a. brainstorming team.
b. benchmarking team.
c. steering team.
d. implementation team.
Answer: c
Keywords: steering team
%&. Performance measures such as aerage response times, repair times, and percent defectie
are referred to as;
a. benchmarks.
b. metrics.
c. targets.
d. tactics.
Answer: b
Keywords: metrics, performance measures
%'. @aps between actual and desired performance are termed;
a. faults.
b. metrics.
c. opportunities.
d. disconnects.
Answer: d
Keywords: performance gaps, disconnect
%*. (nce the root causes of performance gaps hae been discoered, it is necessary to;
a. shift from analytical thinking to creatie thinking.
b. shift from creatie thinking to analytical thinking.
c. form a benchmarking team.
d. form a steering team.
Answer: a
Reference; 6edesigning the Process
Keywords: root cause, performance gap, analytical thinking, creatie thinking
%,. 0idespread participation in process analysis is essential not only because of the work
inoled but also because;
a. employees tend to neglect their regular work duties, thus no one falls too far behind.
b. it builds commitment.
c. no one can analy)e a process by himself.
d. a silo mentality should preail and this re.uires large numbers of workers.
Answer: b
Keywords: process analysis, participation, commitment
%-. A flowchart traces the flow of all EABEPT the following;
a. information through a process
b. customers through a process
c. e.uipment through a process
d. safety regulations through a process
Answer: d
Reference; +ocumenting the Process
Keywords: flowchart, information, customers, e.uipment
&1. A flowchart created at the strategic leel of an organi)ation should show;
a. core processes and their linkages.
b. details of a process as bracketed by its scope.
c. indiidual steps that may hae been aggregated at a higher leel of analysis.
d. areas that are seen and unseen by the customer.
Answer: a
Keywords: flowchart, strategic decision making
&1. 0hen a process is high in diergence, it is likely to hae;
a. few rectangle2shaped symbols.
b. many rectangle2shaped symbols.
c. few diamond2shaped symbols.
d. many diamond2shaped symbols.
Answer: d
Keywords: flowchart, flowchart symbols, diergence
&2. Bross2functional coordination is at particular risk where;
a. there is low process diergence.
b. there are handoffs in the process.
c. functional silos e5ist.
d. it is not possible to create a flowchart.
Answer: b
Keywords: handoff, coordination, cross functional coordination
&$. An effectie tool for showing steps of a serice process with a high leel of customer
contact is a;
a. Pareto chart.
b. flowchart.
c. serice blueprint.
d. check sheet.
Answer: c
Keywords: serice blueprint, customer contact, process documentation tool
&%. A special feature that serice blueprints often 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. a line of isibility.
c. a Pareto2type analysis.
d. a separating using different pages.
Answer: b
Keywords: serice blueprint, customer, line of isibility
&&. A process chart actiity that changes, creates, or adds something is a>n?;
a. operation.
b. transportation.
c. inspection.
d. delay.
Answer: a
Difficulty: Easy
Keywords: process chart, symbol, operation
&'. A process chart actiity that checks or erifies something but does not change it is a>n?;
a. operation.
b. transportation.
c. inspection.
d. delay.
Answer: c
Difficulty: Easy
Keywords: process chart, symbol, inspection
&*. 0hich one of the following statements concerning flowcharts is <(T true=
a. "lowcharts can take many forms.
b. 8t is helpful on flowcharts to label each step with process measurements such as cost,
capacity, or total elapsed time.
c. "lowcharts trace the flow of information, customers, e.uipment, employees, or
materials through a process.
d. The dotted line of isibility separates actiities subcontracted from those done in2
house.
Answer: d
Keywords: flow diagram, line of isibility
&,. 0hich one of the following groups of actiities is likely to be shown on a process chart=
a. (peration, inspection, delay
b. (peration, capital intensity, flow strategy
c. Transportation, material flow, physical layout
d. Storage, delay, personnel inoled
Answer: a
Keywords: process chart, actiity, operation, inspection, delay
&-. The fie categories of actiities >operation, transportation, inspection, delay, and storage?
are used in which of the following methods of process analysis=
a. #ultiple2actiity chart
b. Process chart
c. Bapital budgeting
d. "low diagram
Answer: b
Keywords: process chart, actiitiy categories
'1. A process chart actiity that occurs when something is put away until a later time is a>n?;
a. storage.
b. transportation.
c. inspection.
d. delay.
Answer: a
Difficulty: Easy
Keywords: process chart, actiity, storage
'1. A professor can grade a .ui) in $1 seconds. (er the course of an academic year he has '
sections of a course with an aerage of $1 students with 11 .ui))es in each section. 8f he is
paid C%1 an hour, how much is his annual .ui)2grading labor cost to the uniersity=
a. C'1
b. C111
c. C'11
d. C$',111
Answer: c
Keywords: annual labor cost
'2. A professor4s graduate assistant can grade a .ui) in %1 seconds. (er the course of an
academic year he assists with ' sections of a course with an aerage of $1 students with 11
.ui))es in each section. 8f he is paid C, an hour, how much is his annual .ui)2grading
labor cost to the uniersity=
a. C'1
b. C1'1
c. C&*'
d. C&*',111
Answer: b
'$. A professor can grade a .ui) in 2 minutes. (er the course of an academic year he has '
sections of a course with an aerage of 2& students with 11 .ui))es in each section. 8f he is
paid C%1 an hour, how much is his annual .ui)2grading labor cost to the uniersity=
a. C2&1
b. C&11
c. C1111
d. C2,111
Answer: d
'%. A welder can weld 2 angle irons together in 2 minutes. (er the course of an entire year
she will assemble 1,111 units, each of which re.uires $ such welds >i.e., welding two angle
irons together is one step, and three such steps are needed per unit?. 8f she is paid C2& an
hour, how much is her annual welding labor cost=
a. C1,111
b. C1,2&1
c. C2,&11
d. C$,111
Answer: c
'&. A welder can weld 2 angle irons together in 2 minutes. (er the course of an entire year he
will assemble 1,111 units, each of which re.uires 2 such welds >i.e., welding two angle
irons together is one step, and two such steps are needed per unit?. 8f he is paid C$1 an
hour, how much is his annual welding labor cost=
a. C2&1
b. C&11
c. C1,111
d. C2,111
Answer: d
''. 9ighly customi)ed /ob processes and processes that are highly diergent re.uire the use of;
a. the time study method.
b. the elemental standard data approach.
c. the predetermined data approach.
d. the work sampling method.
Answer: b
'*. DDDDDDDDDDDDDDDD estimates the proportion of time spent by people or machines on
different actiities, based on randomi)ed obserations oer time.
a. The time study method
b. The elemental standard data approach
c. The predetermined data approach
d. The work sampling method
Answer: d
Keywords: work sampling
',. All of the following are steps in setting a time standard using the time study method
EABEPT;
a. consulting cost accounting data.
b. selecting the work elements.
c. determining the sample si)e.
d. timing the elements.
Answer: a
Difficulty: Easy
Keywords: time study method
'-. DDDDDDDDDDDDDDDD uses a published database of normal times for a full array of
micromotions that make up the elements of task being studied.
a. The time study method
b. The elemental standard data approach
c. The predetermined data approach
d. The work sampling method
Answer: c
Keywords: predetermined data
*1. Ese the information in Scenario %.1. 0hat is the aerage time for this /ob element=
a. 1& seconds
b. 21 seconds
c. 2& seconds
d. $1 seconds
Answer: c
Difficulty: Easy
Keywords: time study, aerage time
*1. Ese the information in Scenario %.1. 0hat is the normal time for this /ob element if the
rating factor is ,13=
a. 1& seconds
b. 21 seconds
c. 2& seconds
d. $1 seconds
Answer: b
Scenario %.1
@arman obseres a worker assembling peanut ales and records the data displayed in
the table.
Time >seconds? (bserations
21 1&
2& 12
$1 12
Keywords: time study, normal time
*2. Ese the information in Scenario %.1. 0hat is the standard time for this /ob element if the
allowance for the process is 2&3=
a. 1& seconds
b. 21 seconds
c. 2& seconds
d. $1 seconds
Answer: c
Keywords: time study, standard time
*$. Ese the information in Scenario %.2. 0hat is the aerage time for this /ob element=
a. 1&.1' seconds
b. 1%.-2 seconds
c. 1$.%2 seconds
d. 11.1- seconds
Answer: b
Difficulty: Easy
Keywords: time study, aerage time
*%. Ese the information in Scenario %.2. 0hat is the normal time for this /ob element if the
rating factor is *&3=
a. 1&.1' seconds
b. 1%.-2 seconds
c. 1$.%2 seconds
d. 11.1- seconds
Answer: d
*&. Ese the information in Scenario %.2. 0hat is the standard time for this /ob element if the
allowance for the process is 213=
a. 1&.1' seconds
b. 1%.-2 seconds
Scenario %.2
@arman obseres a worker assembling peanut ales and records the data displayed in
the table.
11 1,
1& 2&
21 1*
c. 1$.%2 seconds
d. 11.1- seconds
Answer: c
*'. @arman obseres a worker assembling peanut ales and records the data displayed in the
table. 0hat is the normal time for this /ob element if the worker is rated at ,13=
21 11
2& 1&
$1 12
$& 12
a. Fess than 2$ seconds
b. @reater than or e.ual to 2$ seconds but less than 2' seconds
c. @reater than or e.ual to 2' seconds but less than 2- seconds
d. @reater than or e.ual to 2- seconds
Answer: a
**. :eith assembles peanut ales and the recorded data is displayed in the table. 0hat is the
normal time for this /ob element if he is rated at *&3=
Time >minutes? (bserations
2.& 1&
$.1 2$
$.& 2*
a. @reater than or e.ual to $ minutes
b. Fess than $ minutes but greater than or e.ual to 2.' minutes
c. Fess than 2.' minutes but greater than or e.ual to 2.2 minutes
d. Fess than 2.2 minutes
Answer: c
Difficulty: Easy
*,. Ese the information in Scenario %.$. 0hat is the normal time for /ob element G1=
Answer: c
Difficulty: Easy
*-. Ese the information in Scenario %.$. 0hat is the normal time for /ob element G2=
Answer: b
Difficulty: Easy
,1. Ese the information in Scenario %.$. 0hat is the normal time for /ob element G$=
Answer: b
Difficulty: Easy
Scenario %.$
A /ob consists of three elements. Twenty obserations for each element were timed, and
the resulting data are shown in the following table. A performance rating has also been
assigned for each element, as shown in the table. The /ob has an allowance of 1&3 of
normal time.
Element Performance
6ating >3?
Aerage Element
Time >in minutes?
G 1 *1 $.'
G 2 111 2.&
G $ -1 $.1
,1. Ese the information in Scenario %.$. 0hat is the normal time for the entire job=
a. @reater than or e.ual to 11.1 minutes
b. Fess than 11.1 minutes but greater than or e.ual to ,.& minutes
c. Fess than ,.& minutes but greater than or e.ual to *.1 minutes
d. Fess than *.1 minutes
Answer: c
,2. Ese the information in Scenario %.$. 0hat is the standard time for the entire job=
Answer: b
,$. Ese the information in Scenario %.%. 0hat is the normal time for /ob element G1=
Answer: b
Difficulty: Easy
Scenario %.%
A /ob consists of three elements. Twenty obserations for each element were timed, and
the resulting data are shown in the following table. A performance rating has also been
assigned for each element, as shown in the table. The /ob has an allowance of 213 of
normal time.
Element Performance
6ating >3?
Aerage Element
Time >in minutes?
G 1 ,1 $.'
G 2 111 2.&
G $ 111 $.1
,%. Ese the information in Scenario %.%. 0hat is the normal time for /ob element G2=
Answer: c
Difficulty: Easy
,&. Ese the information in Scenario %.%. 0hat is the normal time for /ob element G$=
Answer: a
Difficulty: Easy
,'. Ese the information in Scenario %.%. 0hat is the normal time for the entire /ob=
Answer: b
,*. Ese the information in Scenario %.%. 0hat is the standard time for the entire /ob=
Answer: a
,,. 0hich one of the following statements about work measurement is T6EE=
a. 0ork sampling is a techni.ue to determine the proportion of time spent on different
actiities.
b. 8n determining the normal time for the cycle, using a rating factor less than one >1.1?
will increase the total time allowed for a /ob to be performed, relatie to the select time.
c. Performance rating factors are not needed in the deriation of time standards.
d. The time study method is most appropriate for non2repetitie /obs in which the nature
of the task differs each time.
Answer: a
Keywords: work measurement, performance rating factor
,-. A time study analyst is attempting to determine the standard time for a work element. She
obseres a worker performing the work element at a higher2than2aerage pace. 9ow will
this fact be reflected in the time standard that is eentually created=
a. The fre.uency of the work element per cycle will be increased.
b. The proportion of allowance time will be increased aboe 1.1.
c. The performance rating factor will be set greater than 1.1.
d. The normal time for the work element will be increased.
Answer: c
Keywords: performance rating factor
-1. A manager is interested in setting a time standard for a machining operation. 0hich one of
the following is FEAST likely to be of use=
a. Time2study method
b. Elemental standard data approach
c. Predetermined data approach
d. 0ork sampling method
Answer: d
-1. An adantage of the elemental standard data approach is that there is;
a. a reduction in the number of time studies needed.
b. no need to estimate allowances.
c. no need to use time study methods.
d. no need to estimate the ariable characteristics of /obs.
Answer: a
-2. 0hich of the following is not an adantage of the predetermined data approach to work
measurement=
a. Standards can be set before production begins.
b. <ew work methods can be compared without conducting a time study.
c. Performance ratings are not needed to derie standards.
d. The approach is particularly applicable to firms with a fle5ible flow strategy.
Answer: d
Keywords: predetermined data
-$. 0hich work measurement techni.ue breaks down tasks into a series of generic
micromotions=
a. Time study method
b. Elemental standard data approach
c. Predetermined data approach
d. 0ork2sampling method
Answer: c
Keywords: micro2motion, work measurement, predetermined data
-%. 0hen using a work2sampling study;
a. the underlying assumption is that the proportion of time during which the actiity is
obsered in the sample will be the proportion of time spent on the actiity in general.
b. the underlying assumption is that small samples of an actiity can proide accurate
measures of time spent on the actiity.
c. an adantage is that the study can normally be concluded in a day or less.
d. the analyst must be highly trained in statistical obseration.
Answer: a
Keywords: work sampling, proportion
-&. 0ork sampling is most often used in situations in which;
a. a time standard is needed for a repetitie /ob.
b. an estimate of the proportion of the time spent on a particular actiity is needed.
c. it is important to keep the sample si)e down.
d. special training is re.uired for the obserer, and stopwatches must be used.
Answer: b
-'. A ma/or disadantage of work sampling is that;
a. obserers must be specially trained.
b. only one study can be conducted at a time.
c. it can be used only in hospital settings.
d. a large number of obserations are often re.uired.
Answer: d
-*. A work sampling method is used to determine the proportion of the time a machine is idle.
The following information was gathered on a random basis.
+ay <o. Times
Blerk 8dle
Total <o. of
(bserations
#onday % 12
Tuesday 2 ,
0ednesday % 11
Thursday 2 11
0hat is the proportion of idle time obsered for this machine=
a. Fess than or e.ual to &3
b. @reater than &3 but less than or e.ual to 1&3
c. @reater than 1&3 but less than or e.ual to 2&3
d. @reater than 2&3
Answer: c
Keywords: work sample
-,. A work sampling method is used to determine the proportion of the time a worker is idle.
Time <umber of Times
Blerk 8dle
Total <umber of
(bserations
,;11 H 11;11 am 2 '
11;11 am H 12;11 pm $ ,
1;11 H $;11 pm 2 *
$;11 H &;11 pm 1 -
0hat is the proportion of idle time obsered for this worker=
b. @reater than &3 but less than or e.ual to 113
c. @reater than 113 but less than or e.ual to 213
d. @reater than 213
Answer: d
--. A work sampling method is used to determine the proportion of the time a worker is idle.
+ay <umber of Times
Blerk 8dle
Total <umber
of (bserations
#onday , 2'
Tuesday , $2
0ednesday * 2,
Thursday * $%
0hat is the proportion of idle time obsered for this worker=
b. @reater than &3 but less than or e.ual to 113
c. @reater than 113 but less than or e.ual to 213
d. @reater than 213
Answer: d
111. 0hich one of the following statements about learning cures is T6EE=
a. A learning cure assumes that the direct labor re.uirements per unit will decrease at
an increasing rate as cumulatie production increases.
b. Fearning at a capital2intensie operation usually will be less than it is for a labor2
intensie operation.
c. Fearning for a simple product will usually be greater than it is for comple5 products.
d. Fearning cures can be used only for indiiduals, not for the whole organi)ation.
Answer: b
Difficulty: 9ard
Keywords: learning cure, capital intensie operations
111. 0hich statement regarding learning rates is best=
a. A more complicated process offers more room for improement.
b. A simpler process has a more pronounced learning rate.
c. Typically, the effect of each capital addition on the learning cure is significant.
d. 6egardless of output olume, the estimate for the time re.uired to produce the first
unit is less important than the estimate of the learning rate.
Answer: a
Reference: #anagerial Bonsiderations in the Ese of Fearning Bures
Difficulty: 9ard
Keywords: learning cure, learning rate, process
112. The first unit of production takes 12 hours to produce and the learning rate is e5pected to
be ,1 percent. 9ow long will it take to produce the fourth unit=
a. Fess than or e.ual to *.1 hours
b. @reater than *.1 hours but less than or e.ual to *.& hours
c. @reater than *.& but less than or e.ual to ,.1 hours
d. @reater than ,.1 hours
Answer: c
Reference: +eeloping Fearning Bures
Keywords: learning cure, learning effect, labor
11$. The first unit of production takes 12 hours to produce and the learning rate is e5pected to
be ,1 percent. 9ow long will it take to produce the eighth unit=
a. Fess than or e.ual to *.1 hours
b. @reater than *.1 hours but less than or e.ual to *.& hours
c. @reater than *.& but less than or e.ual to ,.1 hours
Answer: a
11%. The first unit of production takes 12 hours to produce and the learning rate is e5pected to
be ,1 percent. 9ow long will it take to produce the si5th unit=
a. Fess than or e.ual to '.1 hours
b. @reater than '.1 hours but less than or e.ual to *.* hours
c. @reater than *.* but less than or e.ual to -.& hours
Answer: b
11&. The first unit of production takes 21 hours to produce and the learning rate is e5pected to
be -1 percent. 9ow long will it take to produce the fourth unit=
a. Fess than or e.ual to 12.1 hours
b. @reater than 12.1 hours but less than or e.ual to 1&.1 hours
c. @reater than 1&.1 but less than or e.ual to 1,.1 hours
d. @reater than 1,.1 hours
Answer: c
11'. The first unit of production takes 21 hours to produce and the learning rate is e5pected to
be -1 percent. 9ow long will it take to produce the eighth unit=
b. @reater than 12.1 hours but less than or e.ual to 1&.1 hours
c. @reater than 1&.1 but less than or e.ual to 1,.1 hours
d. @reater than 1,.1 hours
Answer: b
11*. The first unit of production takes 21 hours to produce and the learning rate is e5pected to
be -1 percent. 9ow long will it take to produce the twelfth unit=
b. @reater than 11.1 hours but less than or e.ual to 1$.1 hours
c. @reater than 1$.1 but less than or e.ual to 1&.1 hours
d. @reater than 1&.1 hours
Answer: c
11,. The manager of a supermarket would like to know which of seeral .uality problems to
address first. A tool that would be most helpful would be a;
a. checklist.
b. cause2and2effect diagram.
c. Pareto chart.
d. scatter diagram.
Answer: c
Keywords: Pareto, relatie problem fre.uency
11-. A process troubleshooter has to decide which problem to address first with his or her cause2and2
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. flowchart.
d. Pareto chart.
Answer: d
Difficulty; #oderate
Keywords: Pareto chart, relatie problem fre.uency
111. A manager of a fiberglass molding operation suspects that the number of process failures 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. cause2and2effect diagram.
c. Pareto chart.
d. scatter diagram.
Answer: d
Keywords: scatter diagram
111. 0hich one of the following techni.ues will help management trace customer complaints
directly to the process inoled=
a. Bause2and2effect diagram
b. Iuality circles
c. Iuality engineering
d. Specification management
Answer: a
Keywords: cause2and2effect diagram
112. The best data analysis tool for displaying the mean and standard deiation of a continuous
data distribution is a;
a. Pareto chart.
b. bar chart.
c. checklist.
d. histogram.
Answer: d
Keywords: histogram, mean, standard deiation
11$. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in
at each table. The data collected from the past week4s diners appear in the following table.
Complaint Frequency
"ood taste 2*
"ood temperature -
(rder mistake &
Slow serice 1-
Table!utensils dirty %*
Too e5pensie -
Esing a classic Pareto analysis, what categories comprise ,13 of the total complaints=
a. Table!utensils dirty
b. Table!utensils dirty, "ood taste, Slow serice
c. "ood taste, "ood temperature, (rder mistake, Slow serice, Table!utensils dirty
d. "ood taste, "ood temperature, (rder mistake, Slow serice, Too e5pensie
Answer: b
Keywords: Pareto analysis
11%. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in
Complaint Frequency
"ood taste ,1
"ood temperature -
(rder mistake 2
Slow serice 1'
Too e5pensie %
Esing a classic Pareto analysis, what categories comprise about 213 of the total
complaints=
a. (rder mistake, Too e5pensie, "ood temperature, Slow serice
b. Slow serice, (rder mistake,
c. "ood taste, "ood temperature, Slow serice
d. "ood taste, Table!utensils dirty
Answer: a
11&. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in
Complaint Frequency
"ood taste ,1
"ood temperature -
(rder mistake 2
Slow serice 1'
Too e5pensie %
Esing a classic Pareto analysis, what are the ital few complaints=
a. Table!utensils dirty
b. Slow serice
c. "ood taste, food temperature
d. "ood taste, Table!utensils dirty
Answer: d
11'. A restaurant manager tracks complaints from the diner satisfaction cards that are turned in
at each table. The data collected from the past week4s diners hae been plotted and appear
in the following graph. The number of complaints for each category is with each bar.
9ow was the alue for the point represented by the triangle calculated=
a.
$2
&& $2 +
b.
&& $2
&& $2
+
+
c.
$2
&& $2 1' 1$ % 2 + + + + +
d.
&& $2
&& $2 1' 1$ % 2
+
+ + + + +
Answer: d
11*. The act of reproducing the behaior 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
Difficulty: Easy
Keywords: simulation, process model
11,. 0hich of these .uestions is not one of the initial round .uestions typically used to uncoer
opportunities during a process redesign=
a. 0hat is being done=
b. 0hen is it being done=
c. 0ho is doing it=
d. 0hy are we doing it=
Answer: d
Keywords: process redesign, .uestioning, brainstorming
11-. 0hich of these is <(T a general rule followed when engaged in a brainstorming session=
a. 8deas should be recorded by a facilitator.
b. The list of ideas should be as short as possible to make analysis easy.
c. Breatiity should be encouraged.
d. The creatie part of the mind should be encouraged at the e5pense of the /udicial side.
Answer: b
Difficulty: Easy
Keywords: process redesign, brainstorming
121. A good brainstorming session has the characteristic of;
a. good /udgment skills.
b. ability to think of creatie ideas.
c. skill in identifying the best payoffs.
d. ability to analy)e a process analytically.
Answer: b
Difficulty: Easy
Keywords: creatiity, brainstorming
121. 7rainstorming sessions must hae;
a. all participants together in the same room.
b. a mechanism for ealuation of the ideas as they are surfaced.
c. a means of implementing ideas as they are surfaced.
d. a way for all participants to communicate.
Answer: d
Difficulty: Easy
Keywords: brainstorming
122. 7enchmarking inoles four basic steps, which are;
a. plan, do, check, and act.
b. planning, analysis, integration, and action.
c. search, check, systemati)e, and act.
d. find, do, change, and calibrate.
Answer: b
Keywords: benchmarking steps
12$. Aero5 benchmarked its distribution system against that of F. F. 7ean4s. This is an e5ample
of;
a. competitie benchmarking.
b. internal benchmarking.
c. functional benchmarking.
d. disaggregate benchmarking.
Answer: c
Keywords: benchmarking, functional
12%. 7enchmarking studies must hae;
a. a direct competitor for comparison.
b. a team composed of at least one member from each department in the organi)ation.
c. a team composed of at least one member from each department in the organi)ation
plus one customer of each process output.
d. .uantitatie goals.
Answer: d
Keywords: benchmarking, data, .uantitatie goals
12&. An accounting firm reali)es it is woefully inade.uate at cultiating new clients. 8t is
allowed to obsere a rial firm perform the new2client cultiation process in hopes of
gleaning improed methods it can adopt. This is an e5ample of;
b. functional benchmarking.
c. internal benchmarking.
d. generic benchmarking.
Answer: a
Keywords: benchmarking, competitie
12'. An accounting professor reali)es she is woefully inade.uate 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 e5ample of;
Answer: c
Keywords: benchmarking, internal
12*. An accounting firm reali)es it is woefully inade.uate at cultiating new clients. 8t is
allowed to obsere a law firm perform the new2client cultiation process in hopes of
gleaning improed methods it can adopt. This is an e5ample of;
Answer: b
Keywords: benchmarking, functional
12,. A benchmarking team e5amines its own success with order deliery time and compares its
metrics with a rial. This phase of the benchmarking process is called;
a. e5amination.
b. analysis.
c. integration.
d. action.
Answer: b
Keywords: benchmarking, analysis
12-. A benchmarking team meets for the first time and decides to try to improe its order
deliery 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
Keywords: benchmarking, planning
1$1. A benchmarking team establishes goals and obtains support from the management team
that agrees to proide resources for accomplishing the goals. This phase of the
benchmarking process is called;
a. goal setting.
b. analysis.
c. integration.
d. action.
Answer: c
Keywords: benchmarking, integration
1$1. A benchmarking team deelops improement plans and team assignments. (nce the plans
are implemented it monitors progress and recalibrates benchmarks as improements are
made. This phase of the benchmarking process is called;
a. implementation.
b. analysis.
c. integration.
d. action.
Answer: d
Keywords: benchmarking, action
1$2. 0hich one of the following statements about benchmarking is T6EE=
a. 7enchmarking is useful only when a company compares itself against other
companies.
b. 7ecause of the power of benchmarking, specific plans of action are not necessary.
c. 7enchmarking is the same as the plan2do2check2act cycle in continuous improement.
d. 7enchmarking focuses on setting .uantitatie goals for continuous improement.
Answer: d
Keywords: benchmarking
1$$. 0hich of these benchmarking metrics is <(T suitable for an order fulfillment process=
a. "inished goods inentory turnoer
b. The company that actually makes the deliery to the customer
c. Percent of orders shipped on time
d. Jalue of plant shipments per employee
Answer: b
Difficulty: Easy
Keywords: benchmarking metrics
1$%. 0hich of these benchmarking metrics is <(T suitable for a support process=
a. Aerage employee turnoer rate
b. Total cost of payroll processes per C1,111 reenue
c. The impression that applicants hae as they submit applications
d. <umber of accepted /obs as a percent of /ob offers
Answer: c
Difficulty: Easy
Keywords: benchmarking metrics
1$&. 0hen managing processes, it is ital that;
a. attention is paid to competitie priorities and strategic fit.
b. design teams are allowed to function creatiely and set their own charter.
c. design teams are not held accountable since their inolement ends once the new
process rolls out.
d. the organi)ation is not satisfied unless fundamental reengineering changes are made.
Answer: a
Keywords: managing processes, competitie priorities, strategic fit
1$'. 0hen managing processes, it is ital that;
a. design teams are allowed to function creatiely and set their own charter.
b. the organi)ation is not satisfied unless fundamental reengineering changes are made.
c. sound pro/ect management practices are used to implement the redesigned process.
d. people are redesigned at the same time the process is redesigned.
Answer: c
Keywords: managing processes, pro/ect implementation
1$*. @ood process management should include;
a. a mechanism for identifying what goes wrong and who is responsible.
b. a method for creating self2directed work teams.
c. at least half time dedicated to each employee4s self2actuali)ation.
d. an infrastructure for continuous improement.
Answer: d
Keywords: managing processes, continuous improement
FILL IN THE LAN!
1$,. DDDDDDDDDDDD is the documentation and detailed understanding of how work is performed
and how it can be redesigned.
Answer: Process analysis
Difficulty: Easy
1$-. The first step of the systematic approach to process analysis is DDDDDDDDDDDD.
Answer: identify opportunities
Keywords: identify opportunities, process analysis
1%1. Process DDDDDDDDDDDD is the boundary of the process to be analy)ed.
Answer: scope
Difficulty: Easy
Keywords: process scope, boundary
1%1. A oluntary system by which employees submit their ideas on process improements is
called a>n? DDDDDDDDDDDD.
Answer: suggestion system
Difficulty: Easy
Keywords: suggestion system
1%2. DDDDDDDDDDDD are performance measures that are established for a process and the steps
within it.
Answer: #etrics
Difficulty: Easy
Keywords: metric
1%$. @aps between actual and desired performance are called DDDDDDDDDDDD.
Answer: disconnects
Keywords: gap, disconnect
1%%. A>n? ___DDDDDDDDD means that a department focuses on its own tasks without
understanding the role and processes of departments outside its own organi)ational
boundaries.
Answer: silo mentality
Difficulty: Easy
Keywords: silo mentality
1%&. A flowchart traces the flow of DDDDDDDDDDDD, DDDDDDDDDDDD, DDDDDDDDDDDD, or
DDDDDDDDDDDD through the arious steps of a process.
Answer: information, customers, e.uipment, materials
Difficulty: 9ard
Keywords: flowchart, information, customers, e.uipment, materials
1%'. A>n? DDDDDDDDDDDD is a table that lists and categori)es the steps in a process.
Answer: process chart
Keywords: process chart
1%*. A>n? DDDDDDDDDDDD shape in a process chart represents a decision point in the process.
Answer: diamond
Keywords: decision point, process chart symbols
1%,. A special flowchart of a serice process that shows which of its steps hae high customer
contact is a>n? DDDDDDDDDDDD.
Answer: serice blueprint
Keywords: flowchart, serice blueprint
1%-. The DDDDDDDDDDDD in a serice blueprint separates which steps are in iew of the
customer from those that aren4t.
Answer: line of isibility
Keywords: line of isibility, serice blueprint
1&1. DDDDDDDDDDDD is the process of creating labor standards based on the /udgment of skilled
obserers.
Answer: 0ork measurement
Difficulty: Easy
Keywords: work measurement
1&1. The DDDDDDDDDDDD is a measurement found by multiplying the aerage time and the rating
factor.
Answer: normal time, <T
Keywords: normal time
1&2. The time added to ad/ust for factors such as fatigue or e.uipment malfunction is called
DDDDDDDDDDDD.
Answer: allowance, allowance time
Keywords: allowance, allowance time
1&$. Esing the DDDDDDDDDDDD, the analyst diides each work element into a series of micro2
motions common to a ariety of tasks.
Answer: predetermined data approach
Keywords: predetermined data approach, micromotion
1&%. DDDDDDDDDDDD inoles estimating the proportion of time spent by people and machines on
actiities, based on a large number of obserations.
Answer: 0ork sampling
1&&. The DDDDDDDDDDDD can be represented by a line called a learning cure.
Answer: learning effect
Keywords: learning effect, learning cure
1&'. A>n? DDDDDDDDDDDD is a form used to record the fre.uency of occurrence of certain
product or serice characteristics related to .uality.
Answer: checklist
Keywords: checklist
1&*. A>n? DDDDDDDDDDDD is a bar chart on which the factors are plotted in decreasing order of
fre.uency along the hori)ontal a5is.
Answer: Pareto chart
Keywords: Pareto chart
1&,. A>n? DDDDDDDDDDDD would be a useful tool to determine the effect that the number of
practice problems soled correctly has on the midterm score.
Answer: scatter diagram
Keywords: scatter diagram
1&-. A>n? DDDDDDDDDDDD is a diagram that relates a key .uality problem to its potential causes.
Answer: cause2and2effect diagram
Keywords: cause2and2effect, fishbone, 8shikawa
1'1. The process of gathering data regarding a process and sifting the data to deduce causes of
problems is called DDDDDDDDDDDD.
Answer: data snooping
Difficulty: moderate
Keywords: data snooping
1'1. DDDDDDDDDDDD is the act of reproducing the behaior of a process using a model that
describes each step of the process.
Answer: Process simulation
Keywords: process simulation
1'2. A simulation model goes one step further than possible with analysis tools, because it can
show how the process performs DDDDDDDDDDDD oer time.
Answer: dynamically
Keywords: process simulation
1'$. A>n? DDDDDDDDDDDD is a method where a group of people, knowledgeable about the
process and its disconnects, propose ideas for change in a rapid2fire manner.
Answer: brainstorming session
Keywords: brainstorming
1'%. DDDDDDDDDDDD is a continuous, systematic procedure that measures a firm4s products,
serices, and processes against those of industry leaders.
Answer: 7enchmarking
Keywords: benchmarking
1'&. (nce the benchmarking team has collected the data, the DDDDDDDDDDDD phase of the
benchmarking study can begin.
Answer: analysis
Keywords: benchmarking, analysis
1''. The bursar4s office at your uniersity decides to benchmark the collections department of a
credit agency to improe their own collection rate. This is an e5ample of DDDDDDDDDDDD.
Answer: functional benchmarking
Keywords: benchmarking, functional benchmarking
1'*. DDDDDDDDDDDD is based on comparison of processes with a direct adersary in industry.
Answer: Bompetitie benchmarking
Keywords: benchmarking, competitie benchmarking
1',. DDDDDDDDDDDD inoles using an organi)ational unit with superior performance as the
ideal for other departments.
Answer: 8nternal benchmarking
Keywords: benchmarking, internal benchmarking
SHORT ANS"ERS
1'-. 0hat is the si52step blueprint for process analysis and what are the basic re.uirements for
each step=
Answer: The si5 steps are; identify opportunities, define scope, document process,
ealuate performance, redesign process, and implement changes. (pportunities can be
identified by e5amining the four core processes of supplier relationships, new
serice!product deelopment, order fulfillment, and customer relationship. (ther 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 analy)ed. The
process can be documented by deeloping a list of the process4s inputs, suppliers,
customers, and listing in se.uence the different steps that the process consists of.
Performance ealuation consists of identifying metrics that permit an ob/ectie
ealuation of the current process state and any progress that is made. The process is
redesigned by e5amining what can be improed and then thinking of and analy)ing
ways to improe those deficiencies. "inally, the process improements are
implemented by getting support and buy2in from all constituents.
Keywords: process analysis, process improement
1*1. 9ow can flowcharts and process charts be used to study and improe operations= 8nclude
descriptions of these two tools, the types of .uestions that can be addressed with them, and
the e5tent to which teams can be used.
Answer: "lowcharts trace the flow of information, customers, employees, e.uipment,
or material through a process. Process charts record all the actiities performed by a
person or a machine, at a workstation, with a customer, or on materials. Answers will
ary.
Keywords: flowchart, information flow, customer flow, employee flow, material flow
1*1. Kou hae been hired as an e5ternal consultant to improe processes at a business. Kou are
unfamiliar with e5actly how the work is currently done but are intimately familiar with
charting techni.ues and data analysis tools. 0hat is a general se.uence for use of these
tools and why should you use them in the se.uence you specify=
Answer: 7ecause you are unfamiliar with the process, you should first use a
flowchart, serice blueprint, or process chart. This diagram will gie you a big2
picture iew of what is currently happening. This will also proide some insight into
key data collection points where workers might use checklists 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?. (nce the largest problem is soled, more data can be collected to erify
that improements in the process hae taken place.
Reference: Ealuating Performance, +ocumenting the Process
Difficulty: 9ard
Keywords: checklist, histogram, Pareto chart, fishbone, cause2and2effect, flowchart,
serice blueprint
1*2. 0hat are the four steps in a time study=
Answer: The four steps are selecting work elements, timing the elements, determining
the sample si)e, and setting the standard.
Keywords: time study
1*$. E5plain why a sampling schedule is important in a work sampling study.
Answer: A sampling schedule should determine when the workers are to be obsered
because the obserations are /ust snapshots of time. 8n addition, the obseration times
should be randomi)ed to aoid biases in worker performance.
Difficulty: 9ard
Keywords: work sampling, schedule
1*%. Bompare and contrast the method of time study to the method of work sampling. 0hat are
the strengths and limitations of each, and for which applications are they best suited=
Answer: 7oth are direct obseration methods. 9oweer, a time study obseres
seeral cycles of work elements to determine a time standard, whereas work sampling
takes LsnapshotsM of the facility to determine the percentage of time engaged in an
actiity. Time studies re.uire e5perienced analysts, should not be used for tasks that
ary each time, and are many times found to be ob/ectionable to workers. 0ork
sampling does not re.uire special training and is generally accepted by workers
because it tends to e5amine actiities of the group rather than of the indiidual. 8n
addition, many work sampling studies can be conducted simultaneously.
Difficulty: 9ard
Keywords: time study method, work sampling method
1*&. A manager of a company producing computer chips knows that in the early stages of
production for a new product, the e5penditures e5ceed receipts, whereas in the latter
stages, the reerse is true. @ie an e5planation for this phenomenon.
Answer: The learning cure theory states that the direct labor costs will e5ceed the
aerage in the early stages of production, whereas the reerse is true in the latter
stages. Pricing is often predicted on aerage costs.
Difficulty: 9ard
Keywords: learning cures, direct labor
1*'. An industrial engineer obseres a brand new process and deelops time standards for
seeral of the manual components of the production line. 0hat are the implications of
learning effects on the time standards and the line balance= 0hat could be done to address
this situation=
Answer: The learning cure theory states that the labor re.uirement will be greater in
the early stages of production and lower as workers en/oy seeral repetitions of their
/obs. A line balance that is performed using inflated times will hae increased idle
time and decreased efficiency as learning effects occur. The industrial engineer can
compensate for learning effects by applying a smaller performance rating factor >or
allowance factor if downtime is an issue?. 8f the industrial engineer is unsure of the
workers4 learning rate, the line can be balanced, and then a second study performed to
rebalance it.
Difficulty: 9ard
Keywords: learning cures, labor, output rate, time standard, line balance
1**. 0hat is a fishbone chart=
Answer: Also called a cause2and2effect diagram, the fishbone chart relates a key
.uality problem to its potential causes.
Difficulty: Easy
Keywords: fishbone, cause2and2effect
1*,. Breate a flowchart that displays the proper se.uential use of the ma/or graphical tools in
Bhapter %, LProcess Analysis.M 8nclude a note ne5t to each tool that e5plains how the
output of one tool is used as the input for the following tool.
Answer: A flowchart shows a big picture iew of the process. The output from this
step is a iew that shows appropriate points for data collection using a checklist.
(nce the checklist has been deployed, the data that has been collected can be analy)ed
by a histogram or a Pareto chart >if data can be categori)ed? or a scatter diagram >if
coordinate data fall more naturally into continuous distributions?. "inally, the tallest
bar in the Pareto chart seres as the input to a fishbone >or cause2and2effect? diagram
as the fishbone4s head.
Keywords: flowchart, checklist, histogram, Pareto, scatter, fishbone, cause2and2
effect
1*-. 0hat are the generic steps in any benchmarking study and what are e5amples of the three
types of benchmarking=
Answer: The steps in any benchmarking study are planning, analysis, integration,
and action. The planning step re.uires the benchmarking team to identify the process,
serice, or product to be benchmarked, the firms to be used for comparison, and the
collection of data. 8n 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 deeloped and implemented and the
benchmarks are recalibrated as improements are reali)ed. E5amples will ary but
the three types are competitie, functional, and internal. Bompetitie benchmarking is
comparison with a direct competitorN functional benchmarking is a comparison with
similar functions outside the firm but not of a direct competitorN and internal
benchmarking is a comparison with another department or function in the same
company.
Difficulty: 9ard
Keywords: benchmarking, competitie, internal, functional
"lowchart Bhecklist 9istogramN
ParetoN
Scatter
Bause2and2
Effect
+iagram
7ig picture
Shows
Bollection
points
+ata collected
for graphical
analysis
@reatest problem
O relationships
identified
6oot cause of
problem
identified
PROLEMS
1,1. An e5isting insurance application process re.uires manual keying of three different forms
by a team of data entry operators. The three forms4 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 0orld 0ide
0eb as necessary. These times and .uantities appear in the lower half of the table. 8f the
labor rate for the data entry operators is the same, which method is preferable=
Fo rm
Time to Input
(minutes)
uantity
(forms!year)
Par t A H E5isting #ethod $ 1,211,111
Par t 7 H E5isting #ethod 1,211,111
Par t B H E5isting #ethod 1,111,111
P art A H Proposed #ethod 1,211,111
P art 7 H Proposed #ethod 1,211,111
0eb Search H Proposed #ethod '&1,111
Answer:
Annual Fabor BostP>Time to Perform Process?Q><umber of Times Performed!Kear?
"#istin$ %et&od
Part A $ minutes 1, 211, 111 $, '11, 111 =
Part 7 $ minutes 1, 211, 111 $, '11, 111 =
Part B % minutes 1,111, 111 %, %11, 111 =
Total Existing Process: 11,600,000 minutes
'roposed %et&od
Part A % minutes 1, 211, 111 %,,11, 111 =
Part 7 % minutes 1, 211, 111 %,,11, 111 =
Part B >web? 2 minutes '&1, 111 1, $11, 111 =
Total Proposed Process: 10,900,000 minutes A savings of 700,000 minutes!ear
1,1. A discount store is e5periencing an unacceptable number of dissatisfied customers leaing
from the checkout process. 8nformation from customer complaints about the checkout
process was collected and is found in the following table. Bonstruct a Pareto chart to
identify the significant problems.
'ro(lem Type Total 'ro(lems
Bashier slow 1&
Price check re.uired -
Fine too long 22
Bashier unfriendly %
Answer:
1,2. 7ecause a telephone customer serice center has e5perienced seeral problems, it has
begun to analy)e the data from customer complaints. The first step was to construct the
following table. Ese this data to build a Pareto chart to help identify the Lital fewM
problems.
'rocess Failure Total
Failures
Person not aailable &
8ncorrect information gien 12
Phone line busy *
Fong delay $-
Phone tree confusing 21
People unfriendly 1*
Answer:
1,$. The semester pro/ect came back from the copy store and to her horror, the pro/ect leader
has /ust noticed that the left side y2a5is of a key Pareto chart was cut off due to a printing
error. The bar chart component uses the missing left side y2a5is and the cumulatie
percentage line on the Pareto chart uses the right side y2a5is. The pro/ect leader is pretty
sure that the total number of obserations in all combined categories is 211. Ban you help
her deelop estimates of the counts for each of the fie categories=
Answer:
The actual counts for the fie categories are;
Bategory Bount
#B 11%
"7 %2
T" %1
SA ,
P7 '
Some allowance should be made for alignment in reading the graph4s right hand y2a5is and
matching up the location of the cumulatie percentage markers for each category. 7ecause the
total number of obserations e.uals 211, the percentages on the right side y2a5is can be
multiplied by 211 to yield estimates of the count alues. 7ased on a rough reading;
#B P 211 5 &2.& P 11&
"7 P 211 5 >*2.& H &2.&? P %1
T" P 211 5 >-2.& H *2.&? P %1
SA P 211 5 >-*.& H -2.&? P 11
P7 P 211 5 >111 H -*.&? P &
1,%. +eelop a process chart for a manual car wash.
Answers: will ary, but a typical answer might look like the following process chart;
1,&. +eelop a process chart for one of the following;
1? 6esearching and writing a paper for your (perations #anagement classN
2? #anaging, deeloping and completing a team pro/ect for a "inance >or other? classN
$? Planning for your /ob interiew process as you approach graduation >including resume
preparation, deeloping interiew skills, researching company backgrounds, etc.?
%? Studying and deeloping a process improement plan for a business or other process
you are familiar with >e.g., fast food restaurant, obtaining tickets to a uniersity2
sponsored eent, dry cleaners, book purchases for ne5t term, and the like?
Answers: will ary, but should follow the approach used in .uestion G1-$. Process chart
should include all alue adding and non2alue adding steps, and a summary of the steps
and times that recap the process.
1,'. A pilot work study has been conducted on a new operation with four work elements. The
following times, in seconds, were obtained using a time study.
(bserations
Element 1 2 $ % & RF
1 11 1& 11 1% 1& 1.11
2 2' $1 2& 2- $1 1.1&
$ 11 , * 1$ 11 1.,&
a. 0hat is the normal time for this operation=
b. 8f an allowance of 21 percent is used, what is the standard time for this task=
Answer:
Ratin$ A)era$e *ormal
+or, "lement Factor Time Times
1 1.11 1$.1 1%.$
2 1.1& 2,.1 2-.%
$ 1.,& 11.1 ,.&
a. <ormal time P 1%.$ R 2-.% R ,.& P &2.2 seconds
b. Standard time P >&2.2?>1.21? P '2.'% seconds
Keywords: time study, normal time, standard time
1,*. An undergraduate business student studies diligently in the library late in the term in
anticipation of an outstanding performance on her final e5ams. She asks a friend to spy on
her at random interals to determine what percentage of time she is actually studying. (er
the course of three days, her friend records the following obserations;
(bseration Period
Times
Studying
Times <ot
Studying (bserations
#onday 1- % 2$
Tuesday 22 % 2'
0ednesday - 2 11
7ased on this work sample, what percentage of time was the student actually studying=
Answer:
Total obserations P '1
<umber of obserations student was studying P &1
3 of time studying P &1 ! '1 P ,$.$3
Keywords: work sampling study, work sample

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Chapter 4 Process Analysis

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