Business Process Management
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Course Introduction
Business Process Management examines the systematic approach organizations use to analyze, design, implement, monitor, and optimize their business processes. This course explores the principles and methodologies for improving efficiency, effectiveness, and agility in business operations. Students will learn about process modeling, performance measurement, process reengineering, and the use of technology in automating workflows. Through case studies and practical applications, the course equips learners with the skills to enhance organizational productivity, ensure consistent quality, and drive continuous improvement in a dynamic business environment.
Recommended Textbook Operations and Supply Management 12th Edition by F. Robert Jacobs
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Chapter 1: Introduction to the Field
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Q1) A current issue facing operations and supply managers is coordinating the relationships between mutually supportive but separate organizations.
A)True
B)False
Answer: True
Q2) JIT is an integrated set of activities designed to achieve high-volume production using minimal inventories of parts that arrive at the workstation exactly when they are needed.
A)True
B)False Answer: True
Q3) One of the current issues of operations and supply management is optimizing global supplier,production and distribution networks.
A)True
B)False Answer: True
Q4) What did the International Organization for Standardization create that is relevant to operations?
Answer: The ISO 9000 Certification Standards
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Chapter 2: Operations and Supply Strategy
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Sample Questions
Q1) Larry's Auto Body Repair Shop had revenues that averaged $60,000 per week in April and $50,000 per week in May.During both months,the shop employed six full-time (40 hours/week)workers.In April the firm also had four part-time workers working 25 hours per week but in May there were only 2 part-time workers and they only worked 10 hours per week.What is the percentage change in labor productivity from April to May for Larry's Auto Body Repair?
A)17.65
B)15.84
C)8.97
D)1.76
E)19.23
Answer: C
Q2) An order winner is a set of criteria that differentiates the products or services of one firm from another.
A)True
B)False
Answer: True
Q3) Strategy typically breaks down into what three major components?
Answer: operations effectiveness,customer management and product innovation
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Page 4
Chapter 3: Project Management
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Sample Questions
Q1) Some of the advantages of a functional project where the project is housed in a functional division include which of the following?
A)The project manager has full authority over the project
B)Team pride,motivation and commitment are high
C)A team member can work on several projects
D)Needs of the client are secondary
E)None of the above
Answer: C
Q2) When reducing the planned duration of a project using the Time-Cost CPM model we select the activity to crash by determining the cost of each alternative and selecting the one whose cost is the greatest.
A)True
B)False
Answer: False
Q3) One of the disadvantages of a pure project organizational structure is that the project manager has full authority over the project.
A)True
B)False
Answer: False
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Page 5
Chapter 4: Product and Service Design
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Q1) Quality function deployment is an engineering analysis whose purpose is to simplify products and processes.
A)True
B)False
Q2) The main purpose of concurrent engineering is to improve product quality.
A)True
B)False
Q3) One goal of having a core competency is to do something better than anyone else.
A)True
B)False
Q4) Design for manufacturing and assembly delivers product improvements by emphasizing which of the following?
A)Reducing product quality during the assembly process
B)Simplification of the product by reducing the number of separate parts
C)Reducing equipment in the production process
D)Design products so they can be manufactured by a virtual factory
E)Designing products that customers will want
Q5) Describe what rapid prototyping is and where it is particularly useful in the development process?
Page 6
Q6) Describe what concurrent engineering teams are and what problems they address?
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Chapter 5: Strategic Capacity Management
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Sample Questions
Q1) The experience curve is states that the more experience you have in a particular activity,the less surprised you will be when something goes wrong.
A)True
B)False
Q2) A chance node on a decision tree has four possible outcomes each worth $100,000.The probabilities of the outcomes occurring are assessed as 10%,27%,43% and 20%.What is the expected value of this chance node?
Q3) In solving a decision tree problem,calculations start at the ends of the "branches" of the tree and work backwards to the base "trunk" of the tree.
A)True B)False
Q4) The ultimate in plant flexibility is a one-hour-changeover time plant. A)True B)False
Q5) Capacity can be defined as the amount of available resource inputs relative to requirements for output over a particular period of time.
A)True
B)False
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Chapter 6: Process Analysis
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Sample Questions
Q1) Efficiency of a production process is the ratio of the actual output of a process to some standard.
A)True
B)False
Q2) Utilization of a production process is the ratio of output to input.
A)True
B)False
Q3) Process analysis can help answer many important questions such as how many customers can a process handle per hour.
A)True
B)False
Q4) McDonald's fast food restaurants have traditionally used a Make-To-Order production process.
A)True
B)False
Q5) Setup time is the time required to prepare a process to produce a particular item.
A)True
B)False
Q6) What is the ratio of output to input called?
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Chapter 7: Manufacturing Processes
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Sample Questions
Q1) Items produced in a project layout are typically managed using project management techniques.
A)True
B)False
Q2) Break-even analysis can only be used in production equipment decision making and deals solely with fixed costs,not variable costs.
A)True B)False
Q3) A project layout is characterized by a relatively low number of production units.
A)True B)False
Q4) Differentiate between a workcenter and a manufacturing cell?
Q5) A process flowchart uses the information presented in the assembly drawing and defines how parts go together and their order of assembly.
A)True B)False
Q6) Describe the implications of the product-process matrix for process design in a competitive situation?
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Chapter 8: Service Processes
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Sample Questions
Q1) The "back end" of the service encounter is more important than the "front end" because the "back end" is where most service providers are paid.
A)True
B)False
Q2) Poka-Yoke is roughly translated from Japanese as "Avoid Mistakes".
A)True
B)False
Q3) It is not necessary that a well-designed service system be robust.
A)True
B)False
Q4) Which company pioneered the production line approach to delivering on-site service?
A)Ritz-Carlton Hotel Company
B)McDonald's Corporation
C)Prudential Insurance Company
D)Southwest Airlines
E)Citibank
Q5) Describe the role of service guarantees from the marketing and the operations perspective?
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Chapter 9: Six Sigma Quality
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Sample Questions
Q1) An operational goal of total quality management is ensuring that the organization's systems will never produce a defective product or service.
A)True
B)False
Q2) While small business organizations can seek to achieve the Baldrige National Quality Award health care organizations,like hospitals,can't.
A)True
B)False
Q3) TQM was defined in the textbook as managing the entire organization so that it excels on all dimensions of products and services that are important to the customer.
A)True
B)False
Q4) The National Quality Award in the United States is named what?
Q5) A typical manufacturing QC department has a variety of functions to perform including preparing the firm's annual application for the Malcolm Baldrige National Quality Award.
A)True B)False
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Page 11
Chapter 10: Supply-Chain Strategy
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Sample Questions
Q1) If the average aggregate inventory value is $1,200,000 and the cost of goods sold is $600,000,which of the following is inventory turnover?
A)60
B)10.4
C)2
D)0.5
E)None of the above
Q2) Which is the most challenging kind of supply chain to manage according to Hau Lee?
A)Agile supply chain
B)Efficient supply chain
C)Risk-hedging supply chain
D)Erratic supply chain
E)Responsive supply chain
Q3) Functional products include staples that people buy in a wide range of retail outlets,such as grocery stores and gas stations.
A)True
B)False
Q4) Name the transportation modes discussed in the textbook.
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Chapter 11: Logistics and Facility Location
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Sample Questions
Q1) In facility location decision-making matching the educational and skill levels of the labor pool to a company's needs is even more important than the labor pool's willingness and ability to learn.
A)True
B)False
Q2) The text describes 14 "Issues in facility location".Name as many of these as you can.
Q3) One of the objectives in facility location analysis is to select a site with the lowest total cost.Which of the following costs are hidden costs that should be included in the analysis?
A)Infrastructure costs
B)Movement of preproduction material between locations
C)Taxes
D)Construction costs
E)Bribery costs
Q4) Issues of product mix and capacity are strongly interconnected to the facility location decision.
A)True
B)False
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Chapter 12: Lean Manufacturing
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Sample Questions
Q1) Subcontractor networks are not very important in Japanese manufacturing.
A)True
B)False
Q2) In setting up a kanban control system and you need to determine the number of kanban card sets needed.If the expected demand during lead time is 50 per hour,the safety stock is 20% of the demand during lead time,the container size is 4.If the lead time to replenish an order is 2 hours,what number of kanban card sets is needed?
Q3) An activity involving periodic exploding of an end item's bill of materials to calculate how many of each part that go into the final product is called which of the following?
A)Frozen window
B)Backflushing
C)Level schedule
D)Group Technology
E)Kanban
Q4) Company unions in Japan exist to foster a cooperative relationship with management.
A)True
B)False
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Chapter 13: Operations Consulting Reengineering
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Sample Questions
Q1) What are the three systems archetypes discussed in the text?
Q2) Which of the following is the stage in the operations consulting process that immediately follows problem analysis?
A)Design,develop and test alternative solutions
B)Develop systematic performance measures
C)Present final report
D)Assure client satisfaction
E)Implement changes
Q3) Consulting firms are frequently characterized according to whether their primary skill is strategic planning or tactical analysis and implementation.
A)True
B)False
Q4) List three managerial guidelines for implementation of reengineering.
Q5) Complex consulting engagements that require a great deal of innovation and creativity are sometimes called "gray hair" projects because they require a great deal of experience on the part of the consultants.
A)True
B)False
Q6) What is the distinction between detailed complexity and dynamic complexity?
Page 15
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Chapter 14: Enterprise Resource Planning Systems
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Sample Questions
Q1) What are the three tiers in the SAP Client/Server configuration?
Q2) HYPERLINK "http://mysap.com/" is an internet interface that allows users to have the full functionality of the SAP software without requiring the deployment of any special software.
A)True
B)False
Q3) Just-in-time or kanban practices can not be supported by SAP.
A)True
B)False
Q4) Because of the high Level of control that ERP software brings to business processes,cost over-runs are rare when implementing ERP.
A)True
B)False
Q5) The SAP financial accounting modules do not include which of the following?
A)Accounts payable
B)General ledger
C)Capital investments
D)Accounts receivable
E)Payroll
Q6) Name the four major modules in SAP AG's R/3 software?
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Chapter 15: Demand Management and Forecasting
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Sample Questions
Q1) The exponential smoothing method requires which of the following data to forecast the future?
A)The most recent forecast,the most recent demand and the smoothing constant
B)Precise actual demand for the past 10-15 years
C)The slope of the trendline and the seasonality peak-to-trough ratio
D)Overall industry demand data
E)Tracking values alpha,beta and gamma
Q2) Random errors can be defined as those that cannot be explained by the forecast model being used.
A)True
B)False
Q3) In the weighted moving average forecasting model the weights must add up to one times the number of data points.
A)True
B)False
Q4) Trend lines are usually the last things considered when developing a forecast.
A)True
B)False
Q5) What are the five steps of CPFR (collaborative planning,forecasting and replenishment?)
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Chapter 16: Aggregate Sales and Operations Planning
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Q1) A common strategy for firms producing seasonally cyclical products is to develop and produce complimentary products with the opposite seasonality.
A)True
B)False
Q2) The aggregate operations planning variable "workforce Level" refers to the number of workers needed to accomplish the planned production.
A)True
B)False
Q3) The International Aggregate Planning Society (IAPS)has developed aggregate operations planning guidelines which are followed by a majority of manufacturing firms.
A)True
B)False
Q4) The widespread adoption of computing technology has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans.
A)True
B)False
Q5) Describe the aggregate sales and operations planning process?
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Chapter 17: Inventory Control
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Q1) Which of the following inventory systems forces a review of the inventory Level at a fixed frequency (such as weekly)and orders replacement supply if the Level has dropped below some amount?
A)ABC analysis
B)Optional replenishment system
C)Fixed-order quantity
D)Two-bin system
E)Fixed time period
Q2) If it takes a supplier 25 days to deliver an order once it has been placed and the standard deviation of daily demand is 20,which of the following is the standard deviation of usage during lead time?
A)50
B)100
C)400
D)1,000
E)1,600
Q3) What is the term for there being no relationship between demands for various items?
Q4) What are the five purposes of inventory?
Q5) What are some of the possible benefits of decreasing inventory order cycle time?
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Chapter 18: Material Requirements Planning
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Q1) Which of the following is a dynamic lot-sizing technique that calculates the order quantity by comparing the carrying cost and the setup (or ordering)costs for various lot sizes and then selects the lot size in which these are most nearly equal?
A)Kanban
B)Two-bin system
C)MRP II
D)Least unit cost
E)Least total cost
Q2) A lot-for-lot (L4L)lot sizing technique does not take into account setup costs or capacity limitations.
A)True
B)False
Q3) The three main inputs to an MRP system are the bill of materials,the master schedule and the inventory records file.
A)True
B)False
Q4) Discuss the importance of inventory record accuracy to an MRP system?
Q5) What is the name for demand caused by the demand for a higher Level item?
Q6) In MRP,how is demand information for a Level 0 (zero)item derived?
Page 20
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Chapter 19: Scheduling
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Q1) A material requirements planning system is an example of which of the following scheduling systems?
A)Infinite loading,backward scheduling
B)Finite loading,backward scheduling
C)Infinite loading,forward scheduling
D)Finite loading,forward scheduling
E)None of the above
Q2) For a mid-volume type of manufacturing which of the following is the typical production scheduling approach?
A)Finite forward scheduling
B)Finite backward scheduling
C)Infinite forward scheduling
D)Infinite backward scheduling
E)Precision forward scheduling
Q3) One of the principles of work center scheduling is that the effectiveness of any shop should be measured by speed of flow through the shop.
A)True
B)False
Q4) What is dispatching?
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Chapter 20: Constraint Management
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Sample Questions
Q1) A process batch can be no larger than the transfer batch.
A)True
B)False
Q2) A synchronous manufacturing system does not have excess capacity throughout the system,except for a bottleneck.
A)True
B)False
Q3) Larger transfer batches give shorter lead times and lower inventories and there is more material handling than smaller transfer batches.
A)True
B)False
Q4) Dr.Eli Goldratt feels that the goal of a firm is to make useful products efficiently.
A)True
B)False
Q5) The "dollar days" inventory measurement can be used in purchasing to discourage large work-in-process and producing earlier than is needed.
A)True
B)False
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Chapter 21: Linear Programming Using the Excel Solver
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Q1) If products and resources can not be subdivided into fractions,the condition of divisibility is violated.In these cases,a modification of linear programming called integer programming can be used.
A)True
B)False
Q2) An objective function in a linear program can be which of the following?
A)A maximization function
B)A nonlinear maximization function
C)A quadratic maximization function
D)An uncertain quantity
E)A divisible additive function
Q3) Finding the optimal routing for a product that must be processed sequentially through several machine centers,with each machine in a center having its own cost and output characteristics cannot be solved using linear programming.
A)True
B)False
Q4) A common application of linear programming is in materials handling.
A)True
B)False
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Chapter 22: Learning Curves
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Q1) A company can produce a small lot of products the first time at a cost of $3,000.If their 65 percent Learning Curve allows them to reduce their costs on each lot,what is the cost of producing the 20<sup>th</sup> lot?
A)$60,000
B)$18,585
C)$1,950
D)$466.20
E)$155.40
Q2) A company can produce a small lot of products the first time at a cost of $2,000.If their 85 percent learning curve allows them to reduce their costs on each lot,what is the total cost of producing 5 lots?
A)$10,000.00
B)$9,376.50
C)$8,062.00
D)$4,031.00
E)$1,191.20
Q3) A company can produce a product the first time at a cost of $2,500.If their 85 percent Learning Curve allows them to reduce their costs on each product,what is the total cost of producing 400 units of the new product?
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Page 24
Chapter 23: Job Design Work Measurement
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Sample Questions
Q1) Empowerment refers to workers being given authority to call a supervisor to stop a production line if there is a quality problem.
A)True
B)False
Q2) An objective of job design could be to develop a logically integrated pattern of work activities for individuals or work groups.Which of the following is not a job design principle relevant to this objective?
A)Task variety
B)Skill variety
C)Feedback
D)Partnership with management
E)Task autonomy
Q3) Job design decisions are not being affected by which of the following trends?
A)Cross-training workers to perform multi-skilled jobs
B)Geographic dispersion of industry
C)Employee involvement and team approaches to designing and organizing work
D)Extensive use of temporary workers
E)Quality control becoming part of the job
Q4) What are the four basic methods for measuring work and setting standards?
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Chapter 24: Waiting Line Analysis
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Q1) The demand on a hospital's emergency medical services is considered a controllable arrival pattern of the calling population.
A)True
B)False
Q2) Buying items at a department store where there are a large number of checkout counters features which type of queuing system line structure?
Q3) Which of the following is not a suggestion for managing queues presented in the textbook?
A)Try to divert your customer's attention when waiting
B)Segment the customers
C)Encourage customers to come during the slack periods
D)Train your people to be friendly
E)Periodically close the service channel to temporarily disperse the line
Q4) In finite queuing theory,the average waiting time in line is denoted by what symbol?
Q5) A tellers' window in a bank is an example of a single channel,multiphase queuing system.
A)True B)False
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Chapter 25: Process Capability and Spc
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Q1) One-hundred percent inspection is justified when the cost of inspection is low.
A)True
B)False
Q2) Variation that is inherent in a production process itself is called common variation.
A)True
B)False
Q3) If there are 120 total defects from 10 samples,each sample consisting of 10 individual items in a production process,which of the following is the fraction defective that can be used in a "p" chart for quality control purposes?
A)120
B)10
C)8
D)1.2
E)0.8
Q4) Standard practice in statistical process control for variables is to set control limits so that 95 percent of the sample means will fall within the UCL and the LCL.
A)True
B)False
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Chapter 26: Simulation
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Q1) One of the features of simulation is that it allows judgment to enter into the design and analysis of the problem.
A)True
B)False
Q2) In constructing a simulation model you decide that a particular property of the real system should be represented by a fixed number.What is that property called?
Q3) Operations and supply management simulations are most usually the continuous type.
A)True
B)False
Q4) The leading general and special purpose simulation models follow a well-documented and standardized approach.
A)True
B)False
Q5) What are the major phases of a simulation study?
Q6) In a simulation model time can be advanced by fixed or variable time increments. A)True
B)False
Q7) What are two ways that time is incremented in simulation models?
Page 28
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