OPM 101 EXAM 1 REVIEW pt 1 Hamza Afzal
Which of the following statements about a firm's capabilities is FALSE? A firm has capabilities to do well on some dimensions of its customers' utility function. How well a firm can satisfy its customers' utility function is dependent on its capabilities. A firm has capabilities to do well on all dimensions of its customers' utility function. A firm's capabilities can be defined as the dimensions of the customer's utility function it is able to satisfy.
A firm has capabilities to do well on all dimensions of its customers' utility function.
Process flow diagram
A graphical way to describe the process. •The process flow diagram provides a visual chart that represents the steps of a process.
Which of the following is a definition of the term "process"? A set of activities that transforms a collection of inputs into outputs. A set of activities that combines a collection of supplies. A set of activities that transforms a collection of outputs into inputs. A set of activities that combines a collection of units.
A set of activities that transforms a collection of inputs into outputs.
Market Segments
A set of customers who have similar utility functions
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?
Flow time = Inventory × Cycle time = 5 patients × 5 minutes per patient = 25 minutes.
Little's Law relates inventory, flow rate, and flow time as:
Inventory = Flow rate × Flow time.
Off-loading the bottleneck
Line balancing: reassign activities to other resources with more capacity. •Technology: automate some of the activities consuming time at the bottleneck. •Outsourcing: outsource some of the activates consuming time at the bottleneck.
Which dimension of the customer utility function is emphasized with a restaurant's slogan, "Eat Fresh"?
Performance
Variability
Predictable or Unpredictable changes in the demand or the supply process
Which of the following is an appropriate flow unit for a roller coaster at an amusement park? Seats on the roller coaster. Riders. . Employees. Miles per hour (as in the speed of the roller coaster). Operating time (as in the number of hours operated per day).
Riders
Capabilities
The dimensions of the customer's utility function a firm is able to satisfy. Capabilities allow a company to do well on some but not all components for customer utility.
inflexability
The inability to adjust to either changes in the supply process or changes in customer demand
Trade-offs
The need to sacrifice one capability in order to increase another one
Demand rate
The number of flow units that customers want per unit of time.
What is the processing time
The processing time of a process is the sum of the activity times of all its activities.
flow rate
The rate at which flow units travel through a process. is a speed. indicates how fast work is processed within a process
inconvenience
The reduction in utility that results from the effort of obtaining the product or service. It comes from various attributes such as Location & Timing.
Price
The total cost of owning a product or receiving the service. Included expenses such as shipping and financing etc.
A restaurant promising a meal in two minutes or less attempts to cater to which part of the customer utility function?
Timing
Which of the following statements is TRUE? 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 the flow rate exceeds its capacity. Utilization of a resource is at its maximum when the flow rate is equal to its capacity. Utilization of a resource is at its minimum when the flow rate exceeds its capacity.
Utilization of a resource is at its maximum when the flow rate is equal to its capacity.
Consumption Utility
a measure of how much you like a product or service, ignoring the effects of price and of the inconvenience of obtaining the product or service
Activities are shown in a process flow diagram as:
boxes.
Customers are driving away after failing to find a place to park at a supermarket. The process currently is:
capacity constrained.
Process capacity
capacity of the bottleneck
Utility is composed of the following components EXCEPT:
customer loyalty.
The set of products or services customers want is called:
demand.
The capacity of a resource determines the ________ number of flow units that can flow through that resource per unit of time.
maximum
inventory
number of units-within a process. is also referred to as Work In Process (WIP). • takes up space and cost money•Inventory indicates the congestion level of a process.
A graphical representation of a process is called a:
process flow diagram.
The ________ of a resource is how long that particular resource takes to complete one flow unit.
processing time
Bottleneck
resource (stage) with lowest-capacity(or highest processing time) in a process
Flow Unit
the basic unit that moves through a process. •Flow unit is generally associated with the output of the process.
An example of a flow unit at a fast-food restaurant is:
the customers.
A process scope is: the set of outputs produced by the process. the set of activities involved in the process. the set of resources used in the process. the set of inputs required by the process.
the set of activities involved in the process
Flow time
the time a flow unit spends in a process, from start to finish.In service businesses, is associated with the waiting time of a customer.
Flow time tells us:
the time a flow unit spends in a process.
A customer's desire for a product or service is measured by its:
utility.
Leftover bread that is not sold at a bakery is an example of:
waste.
Strategic trade-off
when selecting inputs and resources, the firm must choose between a set that excels in one direction of customer utility or another, but no single set of inputs and resources can excel in all dimensions.