Which of the following statement is TRUE about a process map (flowchart)?

  It does not include information flow.

  It does not have boundaries.

  It must include a line of customer visibility.

  It is often used as a baseline to describe how a process is performed

Service facilities have a greater range of resource utilization than manufacturing.

  True

  False

In service applications, flowcharts generally highlight the points of contact with the customer.

  True

  False

Reliability does not apply to service processes.

  True

  False

Which of the following is NOT correct regarding product or process simplification?

  Reduces opportunity for error

  Improves reliability

  Reduces flexability 

  Speeds up flow time

The process by which a model (real or simulated) is constructed to test a product’s performance under actual operating conditions is called:

  prototype testing 

  quality function deployment.

  detailed product design.

  value engineering.

A process map and a value stream map are two terms for the same thing.

  True 

  False

Building a House of Quality begins by identifying the:

  competitive evaluation.

  voice of the customer.

  design of a customer benefit package.

  marketplace evaluation.

Which of the following is LEAST related to value stream mapping?

  Time

  Reengineering

  Non-value-added activity

  Cost

In a design specification 25 ± 1.5, the value 25 is called the _____, while ± 1.5 is called the _____.

  nominal; tolerance

  average; tolerance

  nominal; reliability

  average; nominal

Objectives of service guarantees include all of the following EXCEPT:

  allowing reduced pricing.

  building brand image.

  forcing operational improvement.

  reducing customer risk.

Which of the following is NOT a concept or dimension of the servicescape?

  Ambient conditions

  Transaction processing 

  Spatial layout and functionality

  Signs, symbols, and artifacts

Which of the following is NOT one of the six customer attributes that impact the design and configuration of a customer benefit package?

  Information

  Exchange

  Time

  Rieliability

A bottleneck is the work activity that effectively limits the throughput of an entire process.

  True

  False

The average number of entities completed per unit time—the output rate—from a process is called _____.

  utilization

  work-in-process

  service rate

  throughput

Automobile factories and hospital laboratory work are examples of:

  projects.

  flow shop processes.

  job shop processes.

  continuous flow processes.

Design for manufacturability (DFM) includes practices such as designing for recycling and disassembly.

  True

  False  

Which of the following steps is NOT the same for both goods and services?

  Marketplace evaluation

  Detailed goods, services, and process design

  Customer benefit package design and configuration

  Market introduction/deployment

Make-to-stock goods and services are made according to a fixed design, and the customer has no options from which to choose.

  True

  False

A bank provides four sequential services to its customers. Over the last quarter, the reliability of each of these services was 92%, 97%, 95%, and 90%. What is their overall reliability?

  0.7630

  0.9350

  0.9700

  0.7400

Which of the following statements is TRUE about Little's Law?

  It takes into account any randomness in arrivals or service times.

  It explains the relationship between waiting time and throughput.

  It focuses on finished goods inventory.

  It evaluates average process performance.

A manufacturing firm produces a few standardized products in high volumes in a fixed processing sequence that operates 24 hours a day and 7 days a week. The forecast of volume is reasonably accurate. The firm is most likely to use the _____ process.

  job shop

  continuous flow

  project

  flow shop

In class, why did the instructor state that it is important for operations management team members to understand the importance of the product or service life cycle?  (Choose Two)

 Understanding the process helps the company to know when to have a liquidation sale.

 To ensure there is sufficient time to sell off that part of the business.

  It is useful tool in the design process of new products and services. 

  So they can take measures to proactively adjust inputs and outputs to meet demand.

In class, the instructor noted that service guarantees have a direct impact to the company in terms of cost that should be factored into the selling price of the service or product.

  True

  False

1.    In class, the instructor stated that Value Stream Mapping was an effective tool to?

  Provide employees a visual map to locate work areas.

  Identify waste elements.

  Determine management’s value to the organization.

  Analyze a supplier’s pricing matrix.