Business Process Management Exam Review
Course Introduction
Business Process Management (BPM) introduces students to the principles, methods, and tools for analyzing, improving, and optimizing business processes within organizations. The course covers techniques for modeling current workflows, identifying inefficiencies, and leveraging process redesign to improve productivity, quality, and customer satisfaction. Students will explore industry-standard BPM frameworks, tools for process mapping, and strategies for change management, while also learning how technology such as workflow automation and data analytics can drive continuous improvement. Case studies and practical assignments enable learners to apply BPM concepts to real-world business challenges.
Recommended Textbook
OM 3rd Edition by David
Alan Collier
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18 Chapters
1344 Verified Questions
1344 Flashcards
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Page 2
Chapter 1: Goods, Services, and Operations Management
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65 Verified Questions
65 Flashcards
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Sample Questions
Q1) Explain a customer benefit package (CBP). Also, differentiate a primary good or service from a peripheral good or service.
Answer: A customer benefit package (CBP) is a clearly defined set of tangible (goods-content) and intangible (service-content) features that the customer recognizes, pays for, uses or experiences. In simple terms, it is some combination of goods and services configured in a certain way to provide value to customers. A CBP consists of a primary good or service, coupled with peripheral goods and/or services. A primary good or service is the "core" offering that attracts customers and responds to their basic needs. For example, the primary service of a personal checking account is convenient financial transactions. Peripheral goods or services are those that are not essential to the primary good or service but enhance it. A personal checking account might be supported and enhanced by such peripheral goods as a printed monthly account statement, designer checks and checkbooks, a special credit card and such peripheral services as a customer service hotline and online bill payment. Finally, processes create and deliver each primary or peripheral good or service, and process design and management is a key focus of OM. A variant is a CBP feature that departs from the standard CBP and is normally location- or firm-specific such as a fishing pond at an auto dealership.
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Chapter 2: Value Chains
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Sample Questions
Q1) In breakeven analysis, whenever the anticipated volume is greater than the breakeven quantity, the firm should not outsource.
A)True
B)False
Answer: True
Q2) The United States has experienced three waves of outsourcing. Which of the following is not one of the waves?
A)skilled knowledge work
B)mass customization
C)simple service work
D)goods-producing jobs
Answer: B
Q3) A value chain views an organization from an integrative perspective of goods and services, while a supply chain focuses mainly on the creation of physical goods.
A)True
B)False
Answer: True
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Chapter 3: Measuring Performance in Operations
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Sample Questions
Q1) Return on assets would normally be classified as a productivity measure.
A)True
B)False
Answer: False
Q2) Describe the five key dimensions of assessing service quality.
Answer: 1. Tangibles Physical facilities, uniforms, equipment, vehicles and appearance of employees, i.e., the physical evidence.
2. Reliability Ability to perform the promised service dependable and accurately.
3. Responsiveness Willingness to help customers and provide prompt recovery to service upsets.
4. Assurance Knowledge and courtesy of the service-providers and their ability to inspire trust and confidence in customers.
5. Empathy Caring attitude and individualized attention provided to its customers.
Q3) Reliability is the ability to perform a service dependably and accurately.
A)True
B)False
Answer: True
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Chapter 4: Operations Strategy
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Sample Questions
Q1) Which one of the following statements best represents McDonald's approach to global business?
A)One brand cannot be all things to all people.
B)Extensive use of outside trainers
C)Using alternative technologies to make French fries
D)Use of primarily manual information systems
Q2) Which one of the following statements in the Lawn Care Company (LCC) case study is true?
A)The LCC already had experience and capabilities in the residential lawn application service and market segment, and was considering using this expertise to enter the golf and park market segment.
B)The gross margin on grass seed and fertilizer were higher than on the lawn application service.
C)Service management skills play a major role in the LCC current strategy and vision of the business.
D)The order winner for the current strategy at LCC is high physical goods quality.
Q3) How do customers evaluate services differently from manufacturing, and what implications do these have for operations?
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Chapter 5: Technology and Operations Management
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72 Flashcards
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Sample Questions
Q1) The dot.com company WebVan focused on
A)grooming pets in customers' driveways
B)customers ordering their groceries on-line.
C)installing/repairing residential wireless networks
D)providing door-to-door medical diagnoses
Q2) Explain the concept of ERP-Enterprise Resource Planning Systems.
Q3) Computer integrated manufacturing systems combine hardware, software, database management and communications to automate and control a broad range of production activities.
A)True
B)False
Q4) Breakeven analysis can be used to
A)evaluate quality levels
B)help make technology adoption decisions
C)determine if ERP is economical
D)determine the breakeven quantity for infinite scalability
Q5) Bar codes are the modern successor to RFID tags.
A)True
B)False
Q6) Discuss the role of technology in productivity.
Page 7
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Chapter 6: Goods and Service Design
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Sample Questions
Q1) A kiosk at an airport that allows passengers to check their baggage would be an example of a lean servicescape environment.
A)True
B)False
Q2) A service encounter design focuses on the interaction, directly and indirectly, between the service provider(s) and the customer.
A)True
B)False
Q3) Which of the following is not a principal element in service encounter design?
A)Technology and information support systems
B)Customer contact behavior and skills
C)Service provider selection, development and empowerment
D)Service recovery and guarantees
Q4) In general, the designs of both goods and services follow a similar path. The critical differences lie in the detailed product and process design phases.
A)True
B)False
Q5) List the five elements of a service delivery system.
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Chapter 7: Process Selection, Design, and Analysis
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Sample Questions
Q1) What are some management strategies to improve process designs?
Q2) Because services cannot inventory their output, they must forecast demand more accurately and better manage the resources needed to provide the service.
A)True
B)False
Q3) Define reengineering. How does it differ from other approaches to process improvement?
Q4) A manufacturing firm that produces a standardized product, not made of discrete parts, with little-to-no customization, with high demand, is most likely to use this type of process.
A)project
B)job shop
C)flow shop
D)continuous flow
Q5) An order fulfillment process normally operates two shifts a day, six days per week. Under normal conditions, 380 orders can be processed per shift. What is the weekly capacity?
Q6) Define a value stream map. How does this differ from a regular process map?
Q7) Compare and contrast a product-process matrix with a service-positioning matrix.
Page 9
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Chapter 8: Facility and Work Design
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Sample Questions
Q1) In a perfectly balanced assembly line, no bottlenecks exist.
A)True
B)False
Q2) Explain assembly line balancing. Discuss the three types of information needed to balance an assembly line.
Q3) Which of the following is not a common reason for facility layout studies?
A)There is significant change in demand or throughput volume.
B)A new good or service is introduced to the customer benefit package.
C)A new material supplier is used.
D)Different process, equipment and/or technology are installed.
Q4) For a given cycle time in line balancing, assembly-line efficiency can be increased by
A)Speeding the line
B)Slowing the line
C)Decreasing the number of work stations
D)Increasing the number of work stations
Q5) Because of precedence relationships, assembly-line efficiencies will generally be very high.
A)True
B)False
10
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Chapter 9: Supply Chain Design
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Sample Questions
Q1) A push system
A)can adjust easily to poor forecasts
B)is more appropriate for make-to-order items
C)can reduce transportation costs by using full-truckload shipments
D)works best with variable sales patterns
Q2) A(n) ____ produces goods in advance of customer demand using a forecast of sales and moves them to points of sale where they are stored as finished goods inventory.
A)Responsive supply chain
B)Efficient supply chain
C)Push system
D)Pull system
Q3) For General Motors' supply chain, the ____ is the push-pull boundary.
A)Supplier
B)Factory
C)Dealer
D)Custom
Q4) A supply chain must be either a push or a pull system.
A)True
B)False
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Chapter 10: Capacity Management
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Sample
Questions
Q1) Jack's Ice Cream Parlor produces two types of ice cream on a contract basis for a major restaurant chain using a large blender. A batch of ice cream A requires a setup time of 45 minutes, a process mixing time of 1.2 minutes per gallon, and 50 gallons are made per day. Ice cream B requires the same machine to be cleaned and setup which takes 30 minutes, a process mixing time of 2 minutes per gallon, and 100 gallons produced per day.
a.Compute the capacity required.
b.What percentage of total capacity required is setup time?
Q2) Average safety capacity (%) is computed as
A)Average resource utilization (%) - 100%
B)100% - average resource utilization (%)
C)[maximum safety capacity (%) + minimum safety capacity (%)]/2
D)100% -maximum resource utilization (%)
Q3) Referring to a Revenue Management System (RMS), which of the following is not a component?
A)Marketing
B)Forecasting
C)Pricing
D)Allocating
Q4) What are complementary goods and services and why do firms have them?
Page 12
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Chapter 11: Forecasting and Demand Planning
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Sample Questions
Q1) As the value of k is increased in a moving average forecasting model, the forecast reacts more slowly to recent changes in the time series.
A)True
B)False
Q2) An R<sup>2</sup> of 0.80 means
A)80% of the variability in the independent variable is explained by the dependent variable
B)80% of the variability in the dependent variable is explained by the independent variable
C)80% of the variability in the dependent variable is not explained by the independent variable
D)Multiple regression was used
Q3) Explain judgmental forecasting, including grass roots forecasting and the Delphi Method.
Q4) A tracking signal provides a method for quantifying forecast
A)bias
B)error
C)accuracy
D)outliers
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Chapter 12: Managing Inventories
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Sample Questions
Q1) Costs associated with maintaining storage facilities such as gas and electricity, taxes, and insurance are associated with fixed ordering costs.
A)True
B)False
Q2) The Economic Order Quantity model (EOQ) allows for variable lead-time.
A)True
B)False
Q3) Marketing and operations generally prefer high inventory levels while finance would prefer small inventories.
A)True
B)False
Q4) A bookstore must decide on how many calendars to order for the next year. Each calendar costs $2 and is sold for $4.50. After January 1, any unsold calendars are returned to the publisher for a refund of $0.75 each. The distribution of demand is uniform between 100 and 300. How many calendars should the bookstore order?
Q5) Lead time is the time it takes to prepare an order for shipping to a customer.
A)True
B)False
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Chapter 13: Resource Management
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Sample
Questions
Q1) A company is interested in developing a quarterly aggregate production plan but they aren't sure if level capacity or matching demand would be better. They have the following information available regarding their production operation:
Number of working days per quarter = 65 days
Number of hours per day per person = 8 hours
Labor standard to produce one unit = 3 hours
Demand for four quarters respectively:
40,000, 42,000, 41,000, and 44,000 units
a.Using a level capacity plan, how many workers would be needed each quarter?
b.For a level capacity plan, what is the beginning inventory in quarter 2?
c.Using a level capacity plan, in how many quarters are the machine requirements over capacity?
d.Using a matching demand plan, how many workers are needed for quarter 1?
e.How many additional workers are needed in quarter 2 under a matching demand plan?
Q2) Resource management deals primarily with managing inventories in a value chain.
A)True
B)False
Q3) Define resource management and list its key objectives.
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Page 15
Chapter 14: Operations Scheduling and Sequencing
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Sample Questions
Q1) Compare and contrast the advantages and disadvantages of the Shortest Processing Time (SPT) and the Earliest Due Date (EDD) sequencing rules.
Q2) Triage by nurses in an emergency room would be an example of
A)Scheduling
B)Sequencing
C)Appointments
D)Shortest-processing-time rule
Q3) Staff scheduling needs all of the following except
A)Flow-time estimates
B)Accurate forecasting
C)Staffing levels required by time period
D)Determining available personnel
Q4) Which of the following is not a consideration when designing an appointment system?
A)Determining the appointment time interval
B)Determining the appropriate sequencing rule
C)Determining the length of each workday and the time off-duty
D)Deciding on an overbooking policy
Q5) Differentiate between scheduling and sequencing.
Q6) What four (4) decisions are considered in designing an appointment system?
Page 16
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Chapter 15: Quality Management
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Sample Questions
Q1) ISO 9000 definition of quality system standards is based on the premise that certain generic characteristics of management practice can be standardized and that a well-designed, well-implemented and carefully managed quality system provides confidence that the outputs will meet customer expectations and requirements.
A)True
B)False
Q2) In the SERVQUAL instrument for measuring service quality, the concept of assurance is associated with
A)The ability to convey trust and confidence
B)Caring and individualized attention
C)Always providing consistent service
D)Performing a service quickly and on time
Q3) An airline performed 4000 preflight inspections during one month. Each inspection checks 50 items. What is the maximum number of defects that could occur during a year if the process is operating at a six sigma level?
Q4) Discuss Kaizen and how it differs from a Kaizen Blitz.
Q5) Performance standards in services are analogous to manufacturing specifications.
A)True B)False
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Chapter 16: Quality Control and Spc
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Sample Questions
Q1) Larger sample sizes allow smaller changes in process characteristics to be detected with higher probability.
A)True
B)False
Q2) A system governed only by common causes is called a stable system.
A)True
B)False
Q3) In-process quality control is typically performed by the employees who run the processes.
A)True
B)False
Q4) Which of the following is not a component of a control system?
A)Statistical sampling
B)Measures of actual performance
C)Goals or standards
D)Comparison of actual performance with standards or goals for corrective action if necessary
Q5) Discuss the difference between a continuous metric and a discrete metric, give examples of each, and list the common control charts associated with each.
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Chapter 17: Lean Operating Systems
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Sample Questions
Q1) Single minute exchange of dies (SMED) frees up capacity for other productive uses.
A)True
B)False
Q2) The goal of total productive maintenance is to minimize the costs associated with routine maintenance activities.
A)True
B)False
Q3) A clean and organized work area is an important principle of lean thinking.
A)True
B)False
Q4) Production Kanbans trigger the movement of parts.
A)True
B)False
Q5) Total Production Maintenance (TPM)
A)Puts total responsibility on maintenance workers
B)Puts total responsibility on equipment operators
C)Eliminates all down time
D)Employees preserve and protect their equipment
Q6) Explain the purpose of visual controls and give examples.
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Chapter 18: Project Management
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Sample Questions
Q1) Explain the stages of the project life cycle.
Q2) Which of the following is not considered a project?
A)Writing and implementing a computer program
B)Introducing a new product
C)Production of soft drinks
D)Building a bridge
Q3) Which statement is true regarding activities not on the critical path?
A)Usually cannot be delayed
B)Have less slack than activities on the critical path
C)Can delay a project if they are highly variable
D)Are used to crash project completion times
Q4) In most organizations, projects cut across organizational boundaries, making it difficult to implement projects exclusively within functional departments.
A)True
B)False
Q5) Project management objectives revolved around on-time and budget performance.
A)True
B)False
Q6) Define a project. Give some non-manufacturing or non-construction examples.
Q7) Describe the four major steps in the project-planning process.
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