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Business Process Management Exam Bank - 2523 Verified Questions

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Business Process Management

Exam Bank

Course Introduction

Business Process Management (BPM) is a multidisciplinary course that introduces students to the concepts, methods, and tools necessary to analyze, design, implement, monitor, and optimize business processes within organizations. The course emphasizes the alignment of organizational processes with business goals, leveraging technology and process modeling techniques to enhance efficiency, agility, and customer satisfaction. Through case studies, practical exercises, and real-life scenarios, students learn how to identify process improvements, implement workflow automation, and measure process performance, preparing them to drive organizational change and continuous improvement in dynamic business environments.

Recommended Textbook operations management 5th edition by r. dan reid

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20 Chapters

2523 Verified Questions

2523 Flashcards

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Page 2

Chapter 1: Introduction to Operations

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132 Flashcards

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Sample Questions

Q1) The Internet developed from a government network called ARPANET,which was created in 1969 by _____.

A)Japanese scientists

B)the EPA

C)the U.S.Defense Department

D)NSF

E)ISO

Answer: C

Q2) Today many corporate CEOs have come through the ranks of operations.

A)True

B)False

Answer: True

Q3) Tactical decisions can be distinguished from strategic decisions by what set of characteristics?

Answer: Focus on specific day-to-day issues,tactical decisions are made after strategic decisions,tactical decisions must be aligned with strategic decisions,tactical decisions provide feedback to strategic decision.

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Chapter 2: Operations Strategy and Competitiveness

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130 Verified Questions

130 Flashcards

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Sample Questions

Q1) A firm produces 1500 units per day using four workers on a five-hour shift.On average,12% of the units produced are defective and must be scrapped.What is the labor productivity for non-defective units?

Answer: 66 units/hour

Q2) A manager has just replaced three workers with a machine that is cheaper to operate than the cost of the three replaced workers.Output is expected to remain the same.Which of the following is true?

A)labor productivity will decrease

B)machine productivity will increase

C)multifactor productivity will decrease

D)multifactor productivity will increase

E)the value of output will decrease

Answer: D

Q3) A nation's productivity is not directly related to its standard of living.

A)True

B)False

Answer: False

Q4) Environmental scanning helps organizations recognize

Answer: opportunities and threats.

4

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Chapter 3: Product Design and Process Selection

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128 Flashcards

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Sample Questions

Q1) If the third stage of a repetitive line process cannot complete its activities as fast as stage one or two it has become a:

A)key work location

B)bottle neck

C)place not to work

D)project process location

E)none of these

Answer: B

Q2) Lands' End is a well-known benchmarking target because of its __________ .

A)catalog business

B)supply chain management

C)success at resolving complaints

D)labor relations

E)environmental policies

Answer: A

Q3) What is input if Productivity = 7 and Output = 5?

Answer: Productivity = Output / Input,so Input = Output/Productivity = 5/7 = 0.71.

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Page 5

Chapter 4: E-Commerce and Supply Chain Management

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138 Verified Questions

138 Flashcards

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Sample Questions

Q1) What does TL stand for?

A)Transportation lead time

B)Transportation logistics

C)Trucking line

D)Trucking life

E)Truckload (quantity)

Q2) Name three things purchasing agents should avoid as they balance loyalty their own organization and those with whom they deal:

Q3) One of the Institute for Supply Management's principles of ethical supply chain management conduct is "loyalty to your organization."

A)True

B)False

Q4) Global competition forces organizations to decrease their amount of product proliferation.

A)True

B)False

Q5) What is the formula for the indifference point Q* in the make-or-buy decision.

Page 6

Q6) Describe how consumers can use the Internet to shop in new ways.

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Chapter 5: Total Quality Management

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Sample Questions

Q1) External failure costs tend to be particularly high for service organizations.

A)True

B)False

Q2) The last step in constructing the house of quality includes

A)Determining how to advertise

B)Setting targets for our own product

C)Determining how to attack our competitors' products

D)Designing the product

E)Comparing results with past sales

Q3) One TQM mistake companies make is believing that the responsibility for quality and elimination of waste lies

A)with the supplier

B)with the return and repair shop

C)with the supply chain

D)with all employees but top management

E)with top management alone.

Q4) The concept of the quality trilogy is attributed to Philip Crosby.

A)True

B)False

Q5) Describe the foundation of Deming's "14 Points."

Page 7

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Chapter 6: Statistical Quality Control

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Sample Questions

Q1) In six-sigma programs,individuals who have extensive training in the use of technical tools and are responsible for carrying out the implementation of Six Sigma are

A)black belts

B)green belts

C)blue belts

D)red belts

E)white belts

Q2) The computed AOQ provides a sense of the ______________ of the product

Q3) Which company is known for coining the term "six-sigma?"

A)Ford Motor Company

B)Proctor and Gamble

C)IBM

D)Motorola Corporation

E)Hewlett-Packard

Q4) Given a sample size of 2,the lower limit for the R-chart is 0.

A)True

B)False

Q5) What is the formula for an x-bar chart's control limits?

Q6) What is the formula for an R chart's center line?

Page 8

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Chapter 7: Just-In-Time and Lean Systems

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Sample Questions

Q1) Discuss why implementation of a JIT will not start and end in definite time periods.

Q2) Consider a workstation that can process 4000 units per hour.It takes 15 minutes to receive an order from the previous station.The container size is 20 units.The factory sets safety stock at 20 percent of demand during lead time.How many kanbans are needed for the workstation?

A)16

B)3600

C)50

D)10

E)60

Q3) Beliefs that help define the JIT philosophy include all of the following except

A)Simplicity

B)Visibility

C)Flexibility

D)Push production

E)Continuous improvement

Q4) Describe how JIT affects the Accounting department.

Q5) JIT supply chains often involve firms that _____________________.

Q6) Under the JIT belief of visibility,describe JIT facilities.

Page 9

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Chapter 8: Forecasting

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Sample Questions

Q1) ____________________ is a collaborative process between two trading partners that establishes formal guidelines for joint forecasting and planning.

A)Collaborative Planning Forecasting and Replenishment (CPFR)

B)Supply Chain Planning Forecasting and Replenishment (SCPFR)

C)Supply Chain Optimization (SCO)

D)Collaborative Creation of Guidelines (CCG)

E)Joint Planning and Forecasting (JPP)

Q2) Forecasting demand and forecasting sales are the same thing.

A)True

B)False

Q3) Suppose that you are using the naïve forecasting method with trend to forecast sales.If sales have been increasing by 40% per month,and this month's sales amounted to $1200,what would your forecast be for next month?

A)$1200

B)$ 480

C)$1680

D)$ 720

E)$1600

Q4) What are the two categories of quantitative models?

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Chapter 9: Capacity Planning and Facility Location

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Sample Questions

Q1) The concept of diseconomies of scale ________________________.

A)states that the average cost of a unit produced is reduced when the amount of output increases

B)is not realistic

C)is not valid for regulated industries

D)states that beyond a certain point the cost of each additional unit made increases

E)is an approach for measuring unusable output

Q2) Expected values are

A)forecasted sales prices

B)forecasted revenues

C)average value of chance events

D)weighted value of the chance events

E)exponential value of the chance events

Q3) Name three of the main factors that affect location decisions.________________________,________________________,and

Q4) Why are focused factories often the best approach in today's business environment?

Q5) Describe the relation of capacity requirement and the supply chain.

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Chapter 10: Facility Layout

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Sample Questions

Q1) Maxine's cookie factory bottleneck is the oven.It takes 45 seconds to cook a batch of 144 cookies.What is the maximum number of cookies that Maxine can produce every hour?

Q2) What is Wal-Mart's primary consideration for its store layout decision regarding the number and size of aisles in its stores?

A)predictability

B)comfort

C)ease of navigation through the store

D)customer exposure to merchandise

E)inventory control

Q3) Which of the following is more like a product layout as compared to a process layout?

A)Resources used are general purpose.

B)Facilities are less capital intensive.

C)Processing rates are faster.

D)Space requirements for inventory storage are higher.

E)Scheduling resources is more challenging.

Q4) As the cycle time of a process decreases,its output also decreases.

A)True

B)False

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Chapter 11: Work System Design

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123 Flashcards

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Sample Questions

Q1) To determine whether the alternative workplace is right for your organization,which of the following questions should be positively answered?

A)are you out of space?

B)does your organization have an open culture?

C)does your organization allow the employee to set their own expectations?

D)does your organization subscribe to the 'new' work force program?

E)does the organization plan office parties?

Q2) If OT = the mean observed time,PRF = the performance rating factor,F = the frequency of occurrence,and PFD = the percentage allowance based on time worked,the formula to compute the standard time is (OT)(PRF)(F).

A)True

B)False

Q3) Which of the following values for performance rating factor would be for an above-average work pace?

A)90%

B)100%

C)140%

D)138%

E)78%

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Page 13

Chapter 12: Independent Demand Inventory Management

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Sample Questions

Q1) Risk costs are obsolescence,damage deterioration,theft,insurance and taxes.

A)True

B)False

Q2) The textbook discusses that in the service industry it is not uncommon for retailers not to be able to __________ specific merchandise.

Q3) Which of the following allow you to calculate the average amount of inventory in transit?

A)ATI - (365*d)/t

B)ATI - (t/365)*d

C)ATI = 365*t*d

D)ATI = (tD)/365

E)ATI - (365*t)/d

Q4) Consider the basic EOQ model.If annual demand doubles,what happens to the total annual setup and holding cost?

A)It doubles.

B)It increases by 41.42%.

C)It remains the same.

D)The impact depends upon the value of the setup cost.

E)It quadruples (increases by 400%).

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Chapter 13: Aggregate Planning

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Sample Questions

Q1) If Frank has 200 chickens in stock and he forecasts the following monthly demands.Using a level production plan how many chickens will Frank need to supply each month to meet the demand? January = 300

February =250

March = 180

April = 175

May =200

June = 240

July = 220

A)175

B)195

C)223

D)232

E)1565

Q2) In evaluating the current situation,the point of departure is the size of the change that is needed.

A)True

B)False

Q3) In proactive option demand-based aggregate planning,marketing tries to _____ the _____ pattern.

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Chapter 14: Resource Planning

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Sample Questions

Q1) Gross requirements for finished products are taken from the order entry file.

A)True

B)False

Q2) What are some technological motivations for implementing ERP systems?

Q3) A ____________________ is the primary output of an MRP system.

Q4) Which of the following is not one of the four basic categories of ERP modules?

A)finance and accounting

B)information systems

C)sales and marketing

D)production and materials management

E)human resources

Q5) Production and inventory planners release orders to ________________________.

A)the expediter

B)either an external supplier or to the shop floor

C)the logistics manager

D)either the shop floor or to the warehouse

E)marketing

Q6) The three criteria for selecting an ERP system include _____________,________________,and

16

Q7) What are the objectives of second-generation ERP systems?

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Chapter 15: Scheduling

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131 Flashcards

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Sample Questions

Q1) Which of the following is a measure of whether the job is done ahead of,on,or behind schedule?

A)average number of jobs in system

B)mean flow time

C)makespan

D)job tardiness

E)job lateness

Q2) The backlog at a work center increases when the work center receives more work than it finishes.

A)True

B)False

Q3) The process batch should:

A)match the transfer batch.

B)exceed the transfer batch.

C)be smaller than the transfer batch.

D)be fixed.

E)be variable.

Q4) Eli Goldratt's bottleneck scheduling system is called _____________.

Q5) Discuss how companies can benefit from both infinite and finite loading.

Q6) What is a transfer batch?

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Chapter 16: Project Management

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Sample Questions

Q1) The last project activity ES and LS times are:

A)different

B)calculated using termination rules

C)the same

D)required probabilistic calculations

E)involving risk analysis

Q2) In calculating the estimated probability of completion value a negative number is obtained.This means:

A)your calculation is wrong.

B)the project will be delayed.

C)the specified completion time is later than the expected completion time.

D)the specified completion time is earlier than the expected completion time.

E)the variance is incorrect.

Q3) An activity in a network diagram has an optimistic time estimate of five days,a most likely time estimate of seven days,and a pessimistic time estimate of 15 days.Its expected time is eight days.

A)True

B)False

Q4) CPM was initially developed to plan and _______________ maintenance projects in chemical plants.

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Chapter 17: Spreadsheet Modeling: an Introduction

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Sample Questions

Q1) A model needs to do more than transform inputs to outputs; it must also:

A)modify the process

B)adjust the controllable inputs

C)have a purpose

D)control the output

E)be accurate

Q2) In Excel,you should delete unused worksheets of a workbook.

A)True

B)False

Q3) A model is correct if it produces the _______________ correct _________ for the outputs for the current values of the inputs

Q4) The key to spreadsheet model flexibility is to keep all the ___________ of the model separate from the ______________ of the model.

A)inputs; formulas

B)inputs; outputs

C)outputs; formulas

D)constraints; formulas

E)parameters; decision variables

Q5) Define an output.

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Chapter 18: Introduction to Optimization

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Sample Questions

Q1) The ________________________ for a constraint is the amount the optimal objective value will change if the right-hand-side of the constraint is increased by one unit.

A)Changing Price

B)Opportunity Cost

C)Shadow Price

D)Opportunity Price

E)Shadow Cost

Q2) One use of the Answer report is:

A)to develop the final answer.

B)to duplicate the output results in a new form.

C)as a debugging tool.

D)as a duplication tool.

E)as a results summary printout.

Q3) The basic idea for optimization of problems is to find the values of __________ variables that ____________ (minimize)the objective function value,while staying within the _________ .

Q4) Discuss how the Solver Sensitivity Report is fundamentally different than the other reports.

Q5) Define feasible solution,infeasible solution,and optimal solution.

Page 20

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Chapter 19: Waiting Line Models

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Sample Questions

Q1) Which of the following is not considered to be an element of a waiting line system?

A)the customer population source

B)the service system

C)the arrival and service patterns

D)the average amount of time a customer spends in the system

E)the priorities used for controlling the line

Q2) If only two cars can physically fit between the ordering and pay window of a fast-food drive-through,the waiting line system has a ____ _____ waiting line.

A)constrained server

B)finite size

C)infinite size

D)multi-phase

E)single service

Q3) A single-line service system eliminates jockeying behavior.

A)True

B)False

Q4) A multiple-line service system provides an incentive for jockeying behavior.

A)True

B)False

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Chapter 20: Master Scheduling and Rough-Cut Capacity Planning

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Sample Questions

Q1) Discuss how the MPS is evaluated in terms of cost.

Q2) Engines Corp.builds two different types of motors.Model A has averaged 120,000 units annually,and Model B has average 230,000 units annually.The firm has historically used 80,000 direct labor hours and 210,000 hours of machine time per year to build Model A.Also,250,000 annual direct labor hours have been allocated to Model B,along with 60,000 hours of annual machine time.Calculate the four relevant CPOPF planning factors.

Q3) When Projected Available is negative,the Master Production Schedule must include

Q4) What is the portion of the MPS called that lies between the current time and the demand time fence?

A)gaseous

B)frozen

C)slushy

D)mucky

E)liquid

Q5) In future periods,MPS Shipments - Customer orders between current and next scheduled MPS shipment is called ________________________.

Q6) Describe what CPOPF is.

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