OPM 101 Unit 1

C&A's potato chip filling process has a lower specification limit of 9.5 oz. and an upper specification limit of 10.5 oz. The standard deviation is 0.2 oz. and the mean is 10 oz. What is the process capability index for the chip filling process? a. 0.83 b. 3.33 c. 0.56 d. 1.11

a. 0.83 (USL - LSL)/(6 × Standard deviation) = (10.5 - 9.5)/(6 × 0.2) =0.83333.

An example of a flow unit at a fast-food restaurant is: a. the suppliers. b. the kitchen. c. the customers. d. the cashiers.

c. the customers.

Which of the following is another name for the fishbone diagram? a. Pareto diagram b. Flow diagram c. Frequency diagram d. Cause-effect diagram

d. Cause-effect diagram

Which of the following is NOT one of the steps in statistical process control? a. Conformance analysis b. Capability analysis c. Assignable cause investigation d. Common cause investigation

d. Common cause investigation

Utility is composed of the following components except: a. Price b. Consumption utility c. Inconvenience d. Customer loyalty

d. Customer loyalty

Which of the following is a means to counter overproduction? a. Keep moving things around. b. Keep resources busy. c. Produce expected demand. d. Produce at the volume of actual demand.

d. Produce at the volume of actual demand.

A customer's desire for a product or service is measured by its: a. Costs b. Popularity c. Advertisement d. Utility

d. Utility

The capacity of a resource determines the ________ number of flow units that can flow through that resource per unit of time. a. medium b. average c. minimum d. maximum

d. maximum

Flow time tells us: a. the time a flow unit starts a process. b. the rate at which a flow unit moves through a process. c. the number of flow units within a process. d. the time a flow unit spends in a process.

d. the time a flow unit spends in a process.

T/F A worker moving inventory from one machine to another is considered non-value-added work.

True

Job candidates are leaving an office every 50 minutes. Each candidate goes through three activities during the office visit: verification, written test, and interview. Verification takes 1 minute, the written test takes 40 minutes, and the interview takes 10 minutes. Assume there is only one resource dedicated to each activity. What is the utilization of the bottleneck resource? a. 80% b. 2% c. 20% d. 100%

a. 80% Cycle time = 50 minutes. Flow rate = 1/50 = 0.02 customer per minute. Bottleneck capacity = Min(1, 1/40, 1/10) = 0.025 customer per minute. Utilization of the bottleneck resource = Flow rate/Capacity = 0.02/0.025 = 80%.

Which of the following statements about a firm's capabilities is FALSE? a. A firm has capabilities to do well on all dimensions of its customers' utility function. b. How well a firm can satisfy its customers' utility function is dependent on its capabilities. c. A firm has capabilities to do well on some dimensions of its customers' utility function. d. A firm's capabilities can be defined as the dimensions of the customer's utility function it is able to satisfy.

a. A firm has capabilities to do well on all dimensions of its customers' utility function.

Which of the following statements is TRUE about capability analyses? a. A higher process capability index means the process has a lower defect probability b. A process capability index of 1.33 means that a process has a six sigma capability. c. A higher process capability index means the process has a higher defect probability. d. A process must have its mean centered in the middle of its tolerance interval in order to perform capability analyses.

a. A higher process capability index means the process has a lower defect probability

Which of the following is a definition of the term "process"? a. A set of activities that transforms a collection of inputs into outputs. b. A set of activities that combines a collection of supplies. c. A set of activities that transforms a collection of outputs into inputs. d. A set of activities that combines a collection of units.

a. A set of activities that transforms a collection of inputs into outputs

Which of the following is NOT a component of worker time on the job? a. Commuting b. Non-value-added work c. Waste d. Value-added work

a. Commuting

The set of products or services customers want is called: a. Demand b. Supply c. Value d. Bundle

a. Demand

Which of the following is an example of waste of worker intellect? a. Discounting process improvement ideas from workers b. Walking from one part of the building to the other c. Working overtime d. Taking lunch breaks

a. Discounting process improvement ideas from workers

A sold-out concert that turns away music fans because it is not able to increase the number of seats is an example of: a. Inflexibility b. Defect c. Variability d. Waste

a. Inflexibility

Which dimension of the customer utility function is emphasized with a restaurant's slogan "Eat Fresh"? a. Performance b. Fit c. Timing d. Location

a. Performance

Which of the following is the Pareto principle? a. The majority of problems can be explained by a few root causes. b. The majority of problems can be explained by many symptoms. c. The majority of problems can be explained by one root cause. d. The majority of problems can be explained by many root causes.

a. The majority of problems can be explained by a few root causes.

Which of the following terms is interchangeable with "lean"? a. Toyota Production System b. Value adding c. Green d. No waiting

a. Toyota Production System

A control chart is used to identify ________ of a process. a. assigned causes of variation b. input variables c. output variables d. normal causes of variation

a. assigned causes of variation

The goal of lean is to ________ from the system. a. eliminate waste b. generate value c. increase output d. extract profit

a. eliminate waste

A kanban system ________ work through the process based on ________. a. pulls, demand b. pushes, capacity c. pulls, capacity d. pushes, demand

a. pulls, demand

A campus deli serves 240 customers over its busy lunch period from 11:00am to 1:00pm. A quick count of the number of customers waiting in line and being served by the sandwich makers shows that an average of 10 customers are in process at any point in time. What is the average amount of time that a customer spends in process? a. 6 minutes b. 5 minutes c. 7 minutes d. 4 minutes

b. 5 minutes (240 customers / 2 hours = 120 customers per hour 120 customers per hour / 60 minutes per hour = 2 customers per min 10 customers = 2 customers per min * Flow Time Flow time = 5 minutes)

Patients are arriving at a clinic at a rate of two per minute. Each patient's visit consists of four steps: check in, record vital signs, receive treatment, and check out. A receptionist takes 1 minute to check a patient in. A nurse takes 2 minutes to record the patient's vital signs. A doctor spends 10 minutes with a patient. A staff member takes 3 minutes to check a patient out. What is the process capacity in patients per hour? a. 30 b. 6 c. 20 d. 60

b. 6

Which of the following statements is FALSE? a. Nonbottleneck resources have a less than 100% utilization. b. A bottleneck resource must have a utilization of 100%. c. Nonbottleneck resources have slack capacity. d. A bottleneck resource does not always have the longest processing time.

b. A bottleneck resource must have a utilization of 100%

Lean was started as: a. An offshoot of the quality movement after WWII b. As Toyota wanted to emulate Ford's efficiencies without huge inventory build-up it saw at Ford. c. Ford Motor Company turned to mass production in the 1950s d. Both a and b

b. As Toyota wanted to emulate Ford's efficiencies without huge inventory build-up it saw at Ford.

Little's Law relates inventory, flow rate, and flow time as: a. Inventory = Flow rate + Flow time. b. Inventory = Flow rate × Flow time. c. Inventory = Flow rate - Flow time. d. Inventory = Flow rate/Flow time.

b. Inventory = Flow rate × Flow time.

Which of the following is NOT an element of the Toyota Production System? a. Kaizen b. Scientific management c. Lean d. Kanban

b. Scientific management

Leftover bread that is not sold at a bakery is an example of: a. Defect b. Waste c. Flexibility d. Variability

b. Waste

When will the utilization of a bottleneck resource be less than 100%? a. When the process is capacity constrained b. When the process is demand constrained c. When demand is higher than process capacity d. When demand is equal to process capacity

b. When the process is demand constrained

A control chart is used to identify ________ of a process. a. input variables b. assigned causes of variation c. normal causes of variation d. output variables

b. assigned causes of variation

Activities are shown in a process flow diagram as: a. triangles b. boxes c. spheres d. arrows

b. boxes

Customers are driving away after failing to find a place to park at a supermarket. The process currently is: a. supply exceeds demand. b. capacity constrained. c. demand constrained. d. capacity unconstrained.

b. capacity constrained.

A graphical representation of a process is called a: a. process flow chart. b. process flow diagram. c. process activity diagram. d. process activity chart.

b. process flow diagram.

The ________ of a resource is how long that particular resource takes to complete one flow unit. a. processing rate b. processing time c. flow time d. flow rate

b. processing time

A process scope is: a. the set of outputs produced by the process. b. the set of activities involved in the process. c. the set of resources used in the process. d. the set of inputs required by the process.

b. the set of activities involved in the process.

C&A operates a dry cleaning service. Which of the following is an output variable for C&A? a. The average age of the customers b. The temperature of the dry cleaning machine c. Stains left on garments after dry cleaning d. Weather conditions

c. Stains left on garments after dry cleaning

Which of the following is an example of value-added work? a. Waiting for customers to order b. Delivering pizza to customers c. Taking orders from customers d. Repairing a defective product

c. Taking orders from customers

Job candidates are leaving an office every 50 minutes. Each candidate goes through three activities during the office visit: verification, written test, and interview. Verification takes 1 minute, the written test takes 40 minutes, and the interview takes 10 minutes. Assume there is only one resource dedicated to each activity. Which of the following conclusions can be drawn? a. The interview resource is the bottleneck. b. The process capacity is equal to the bottleneck capacity. c. The process is demand constrained. d. The process is capacity constrained.

c. The process is demand constrained.

A restaurant promising a meal in two minutes or less attempts to cater to which part of the customer utility function? a. Fit b. Ambience c. Timing d. Preference

c. Timing

Which of the following statements is TRUE? a. Utilization of a resource is at its minimum when the flow rate is equal to its capacity. b. Utilization of a resource is at its maximum when the flow rate exceeds its capacity. c. Utilization of a resource is at its maximum when the flow rate is equal to its capacity. d. Utilization of a resource is at its minimum when the flow rate exceeds its capacity.

c. Utilization of a resource is at its maximum when the flow rate is equal to its capacity.

Costs a company incurs for assessing its quality levels are called: a. external failure costs. b. internal failure costs. c. appraisal costs. d. prevention costs.

c. appraisal costs.