Business Process Management
Chapter Exam Questions
Course Introduction
Business Process Management (BPM) is an interdisciplinary course that explores the principles, methodologies, and tools used to design, analyze, optimize, and automate business processes within organizations. The course covers the entire BPM lifecycle, including process modeling, process analysis, process improvement, and process implementation. Students will gain practical skills in process mapping, workflow analysis, and the use of BPM software, with a focus on aligning business processes with organizational strategy and improving efficiency, effectiveness, and adaptability in dynamic market environments. Case studies and real-world examples illustrate the impact of BPM on organizational success and highlight the challenges of managing change.
Recommended Textbook
Operations Management Processes and Supply Chains 12th Edition by Lee
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Page 2
J. Krajewski
Chapter 1: Using Operations to Create Value
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Q1) Support functions in an organization include Accounting, Human Resources and Engineering.
A)True
B)False
Answer: True
Q2) Core competencies are:
A) product or service attributes that represent the needs of a particular market segment.
B) another name for competitive priorities.
C) various flow strategies.
D) the unique resources and strengths that management considers when formulating strategy.
Answer: D
Q3) Operations management refers to the direction and control of inputs that transform processes into products and services.
A)True
B)False
Answer: True
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Chapter 2: Process Strategy and Analysis
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Q1) A politician conducting a town hall meeting, face-to-face with her constituents, is an example of:
A) back office.
B) passive contact.
C) active contact.
D) hybrid office.
Answer: C
Q2) ________ reflects the ways in which customers become part of the process and the extent of their participation.
Answer: Customer involvement
Q3) Use the information in Scenario 2.1. What is the normal time for this job element if the rating factor is 80%?
A) 15 seconds
B) 20 seconds
C) 25 seconds
D) 30 seconds
Answer: B
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Chapter 3: Quality and Performance
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Q1) The Baldrige Performance Excellence Program considers a company's business results but ISO 9001:2008 registration does not.
A)True
B)False
Answer: True
Q2) In Statistical Process Control, ________ are used to detect defects and determine if the process has deviated from design specifications.
A) flowcharts
B) cause-and-effect diagrams
C) process capability charts
D) control charts
Answer: D
Q3) The ________ section of the Baldrige Performance Excellence Program has the greatest emphasis.
Answer: business results
Q4) Defects are caught and corrected where they were created under a(n) ________ philosophy.
Answer: quality at the source
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Chapter 4: Capacity Planning
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Q1) A firm may preempt the expansion of competitive firms by using an expansionist capacity strategy and announcing a large capacity expansion.
A)True
B)False
Q2) The single milling machine at Stout Manufacturing was severely overloaded last year. The plant operates eight hours per day, five days per week, and 50 weeks per year. Management prefers a capacity cushion of 15 percent. Two major types of products are routed through the milling machine. The annual demand for product A is 3,000 units and 2,000 units for product B. The batch size for A is 20 units and 40 units for B. The standard processing time for A is 0.5 hours/unit and 0.8 hours/unit for B. The standard setup time for product A is 2 hours and 8 hours for product B. How many new milling machines are required if Stout does not resort to any short-term capacity options?
A) no new machines
B) 1 or 2 new machines
C) 3 or 4 new machines
D) more than 4 new machines
Q3) ________ is the degree to which equipment, space, or labor is currently being used.
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Chapter 5: Constraint Management
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Q1) Use the information in Table 5.2. Using the traditional method, what is the profit if the company manufactures the optimal product mix (consider variable costs only-overhead is not included in this profit calculation)?
A) less than or equal to $6,500
B) greater than $6,500 but less than or equal to $6,700
C) greater than $6,700 but less than or equal to $6,900
D) greater than $6,900
Q2) What is the definition of "theoretical maximum efficiency"?
A) It is the amount by which efficiency falls short of 100 percent.
B) It is the efficiency that could be obtained by a solution that achieves the theoretical minimum number of stations.
C) It is the maximum time allowed for work on a unit at each station.
D) It is alternatively called the desired output rate.
Q3) Use the information in Figure 5.1. What is the throughput time for the A-B-C-E process route?
A) 17 minutes
B) 27 minutes
C) 21 minutes
D) 19 minutes
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Chapter 6: Lean Systems
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Q1) An item sells at a rate of 600 units per day. If a plant works two shifts per day (480 minutes each shift), what takt time is required for the plant to meet this demand?
Q2) An operator standing idly by his workstation because a previous process with quality issues was delayed is an example of ________.
Q3) The value stream mapping tool often requires completion of the future state drawing before the current state drawing, to help managers see the future state goals and more easily identify problems with the current state of the process.
A)True
B)False
Q4) Group technology collects similar parts into families and organizes machine tools into separate cells.
A)True
B)False
Q5) Some Kanban systems are set up without Kanban cards, and use the material containers or open spaces in a work area to withdraw materials.
A)True
B)False
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Chapter 7: Project Management
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Q1) The normal cost is the amount of money it normally takes to complete an activity faster than its normal time.
A)True
B)False
Q2) In a network diagram, an activity:
A) is the largest unit of work effort consuming both time and resources that a project manager can schedule and control.
B) is the smallest unit of work effort consuming both time and resources that a project manager can schedule and control.
C) should always be something the company has had experience with.
D) must always have a single, precise estimate for the time duration.
Q3) A project tracking system should collect information on three topics for the project manager. What are these topics, why are they important, and what actions can the manager take to address any concerns that surface?
Q4) A(n) ________ identifies the key threats to a project and prescribes ways to work around them.
Q5) The ________ is a statement of all work that has to be completed.
Q6) Explain the importance of the critical path in project management.
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Chapter 8: Forecasting
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Q1) ________ analysis is a statistical approach that relies heavily on historical demand data to project the future size of demand, and it recognizes trends and seasonal patterns.
Q2) ________ methods of forecasting translate the opinions of management, experts, consumers, or salesforce into quantitative estimates.
Q3) A(n) ________ forecast is a time-series method whereby the forecast for the next period equals the demand for the current period.
Q4) Better forecasting processes yield better forecasts.
A)True
B)False
Q5) Forecasts almost always contain errors.
A)True
B)False
Q6) What is the difference between mean absolute deviation (MAD) and mean squared error (MSE)?
Q7) The ________ variable is the variable that one wants to forecast.
Q8) ________ methods use historical data on independent variables to predict demand.
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Q9) Describe the combination forecast techniques and discuss how they have been shown to perform in recent studies.
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Chapter 9: Inventory Management
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Q1) The ________ is the predetermined minimum level that an inventory position must reach before a fixed quantity (Q) is ordered.
Q2) As the service level increases, the probability of not running out of stock during a cycle decreases.
A)True
B)False
Q3) An experienced operations manager can tell at a glance whether an item should be classified as safety stock, anticipation inventory, or cycle stock.
A)True
B)False
Q4) What is generally True about class B SKUs in ABC analysis? They represent about:
A) 20 percent of all SKUs and about 80 percent of the dollar usage.
B) 80 percent of all SKUs and about 20 percent of the dollar usage.
C) 30 percent of all SKUs and about 15 percent of the dollar usage.
D) 50 percent of all SKUs and about 95 percent of the dollar usage.
Q5) A company governed by an EOQ system decides to move in a more lean direction and hopes to reduce their Q as much as possible. What specific steps might be taken to help them in their journey towards a Q = 1?
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Chapter 10: Operations Planning and Scheduling
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Q1) Use the information in Table 10.4. How much total slack will be generated from the schedule?
A) fewer than six days
B) six days
C) seven days
D) greater than seven days
Q2) A company is attempting to cope with seasonal demand patterns by managing its demand. Which one of the following will not help achieve this aim?
A) complementary products or services
B) adjusting workforce levels
C) promotional campaigns
D) creative pricing
Q3) What is a mixed-strategy approach to sales and operations planning?
Q4) Use the information in Table 10.5. How much total slack is generated from the schedule?
A) fewer than 9 days
B) 10 days
C) 11 days
D) greater than 11 days
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Chapter 11: Resource Planning
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Q1) The L4L rule is a special case of the ________.
Q2) A front-office module for an ERP system includes:
A) manufacturing.
B) accounting and finance.
C) sales and marketing.
D) human resources.
Q3) Which of the following is not an example of dependent demand items?
A) shoelaces, shoes
B) wheels, car
C) carafes, coffeemakers
D) ice skates, roller skates
Q4) Explain why, in a dependent demand environment, MRP does a better job of estimating the need to replenish inventory items than does the reorder point system.
Q5) Use Scenario 11.3 to answer this question. How many additional units of F are required to produce 17 end items?
A) 332
B) 329
C) 340
D) 314
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Chapter 12: Supply Chain Design
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Q1) Padco averages $15 million worth of inventory in all of its worldwide locations. They operate 51 weeks a year and each week average $3 million in sales (at cost). Their inventory turnover is:
A) 1.13 turns.
B) 5 turns.
C) 10.2 turns.
D) 17 turns.
Q2) When a customer orders an item that is a completely new and different product, the company's supply chain must be able to deliver an item that is ________-to-order.
Q3) One way to gain control over suppliers in a chain is to buy a controlling interest in them, known as ________.
Q4) Responsive supply chains work best when firms offer a low variety of services or products and demand predictability is high.
A)True
B)False
Q5) ________ is the synchronization of a firm's process with those of its suppliers and customers to match flow of materials, services and information with demand.
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Chapter 13: Supply Chain Logistic Networks
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Q1) Use the information in Table 13.6. What is the total load-distance score for the two plants if Plant 1 is located at the center of gravity serving distribution centers A, B, and C, and Plant 2 is located at the center of gravity serving D and E? (Assume rectilinear distance.)
A) less than or equal to 300
B) more than 300 but less than or equal to 350
C) more than 350 but less than or equal to 400
D) more than 400
Q2) Use the information in Table 13.8 to address this question. For what range of output is each location superior?
Q3) Use the information in Table 13.5. If a facility were to be located at (15,15), what would be the load-distance score? (Assume rectilinear distance.)
A) less than or equal to 5,000
B) more than 5,000 but less than or equal to 5,200
C) more than 5,200 but less than or equal to 5,400
D) more than 5,400
Q4) ________ is a reduction in inventory and safety stock because of the merging of variable demands from customers.
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Chapter 14: Supply Chain Integration
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Q1) The practice whereby a manufacturer has inventories of materials on consignment from its suppliers falls under the scope of:
A) inventory pooling control.
B) virtual distribution.
C) electronic inventory control.
D) vendor-managed inventories.
Q2) Examples of radio frequency identification (RFID) could include all of the following except:
A) tracking the status of engineering changes during development of a new product line.
B) tracking cases and pallets of products into and out of warehouse inventories.
C) air travel use for baggage tracking.
D) tracking the flow of parts through a manufacturing process.
Q3) A common disruption of the external supply chain is engineering changes.
A)True
B)False
Q4) Describe some of the benefits for companies to integrate additive manufacturing technology into its supply chain.
Q5) The standard for supply chain security management is ________.
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Chapter 15: Supply Chain Sustainability
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Q1) Which of these statements is in accordance with the ethical standards on workplace management?
A) Workers should typically be 15 years of age or older.
B) Require no more than 80 hours per work week.
C) Use no corporal punishment, only verbal abuse.
D) Provide a safe work environment except where time is crucial.
Q2) In what ways is reverse logistics management more difficult than the management of more typical supply chain flows?
Q3) Which of the following is not one of the seven principles of social responsibility or standards included in ISO 26000?
A) Transparency
B) Respect for human rights
C) Ethical Behavior
D) Certification process requirements
Q4) Reverse logistics addresses the movement of physical goods from consumer to producer and product information is an important by-product of the reverse-logistics process.
A)True
B)False
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Chapter 16: Supplement A Decision Making
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Q1) In decision theory, the different courses of action that a decision maker can choose are called ________.
Q2) A preference matrix is a table that allows the manager to rate an alternative according to one performance criterion.
A)True
B)False
Q3) The decision rule in decision making under uncertainty that is most appropriate for the pessimistic manager would be:
A) maximin.
B) maximax.
C) Laplace.
D) minimax regret.
Q4) A(n) ________ is a schematic model of alternatives available to the decision maker, along with their possible consequences.
Q5) What is the total cost if the beekeeper keeps 8 hives?
A) $0
B) $40
C) $5
D) cannot be determined
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Chapter 17: Supplement J Operations Scheduling
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Q1) Using the information in Table J.8 and the EDD rule, what is the average days past due?
A) fewer than or equal to 8.0 days
B) greater than 8.0 days but fewer than or equal to 9.5 days
C) greater than 9.5 but fewer than or equal to 11.0 days
D) greater than 11.0 days
Q2) A manufacturer's flow shop utilizes line or continuous flow processes. A)True
B)False
Q3) Use the information in Table J.16. What is the makespan through both machines if the SPT rule is used to determine the sequence at Machine 1 and the same sequence is also used at Machine 2?
A) fewer than or equal to 27 hours
B) greater than 27 hours but fewer than or equal to 28 hours
C) greater than 28 hours but fewer than or equal to 29 hours
D) greater than 29 hours
Q4) ________ is a priority sequencing rule that determines priority by dividing the difference between the due date and today's date less the processing time remaining by the number of processing steps left to complete the job.
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Chapter 18: Supplement K Layout
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Q1) A block plan is a table that gives a measure of the relative importance of each pair of centers being located close together.
A)True
B)False
Q2) A(n) ________ allocates space and indicates placement of each department.
Q3) Detailed layouts can be two-dimensional drawings, three-dimensional models, or computer-aided graphics.
A)True
B)False
Q4) Use the information in Figure K.2. What is the total weighted-distance (wd) score between Office Supplies and Hardware?
A) less than or equal to 50
B) greater than 50 but less than or equal to 150
C) greater than 150 but less than or equal to 250
D) greater than 250
Q5) A block plan allocates space and indicates the placement of each department within the framework of a new or existing facility.
A)True
B)False
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Chapter 19: Supplement B Waiting Lines
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Q1) You drive your car into the parking lot of your favorite fast food establishment and get in the line for drive through service. After placing your order into the speaker, you proceed to the first window to pay, and then to the second window to pick up your meal. Since you just studied waiting lines that day in your Operations Management class, you quickly realize as you drive away that this was an example of a ________ channel ________ phase queuing system.
Q2) A Laundromat where there are washing machines and dryers is an example of a:
A) single-channel, single-phase arrangement.
B) single-channel, multiple-phase arrangement.
C) multiple-channel, single-phase arrangement.
D) multiple-channel, multiple-phase arrangement.
Q3) In a waiting-line problem, increasing advertising expenditures, increasing the number of promotions, or changing the price of a service is most likely to affect:
A) customer arrival rates.
B) service rates.
C) the priority rule.
D) the line arrangement.
Q4) A ________ is one or more facilities required to perform a given service.
Q5) What is a finite-source model? Give an example of its appropriate use.
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Chapter 20: Supplement C Special Inventory Models
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Q1) Walter White must satisfy an annual demand of 50,000 pounds per year. The setup cost for each batch is $6,500 and once the setup is complete, the product may be produced at the rate of 1,800 pounds per day. There is a holding cost of $15 per unit per year and the plant operates on a 350-day production year. Determine the relevant parameters and sketch the inventory cycle through two complete cycles, labeling all lines and vertices.
Q2) Use the information in Scenario C.1. What is the maximum inventory if Jerry chooses to produce at the economic production lot size (ELS)?
A) fewer than or equal to 300 units
B) greater than 300 units but fewer than or equal to 320 units
C) greater than 320 units but fewer than or equal to 340 units
D) greater than 340 units
Q3) Sketch the economic production lot size (ELS) graph of inventory level as a function of time and label all elements of the graph.
Q4) In a one-period inventory model, the more profitable the item during the sales season, the manager should place a higher order at the start of the season.
A)True
B)False
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Chapter 21: Supplement D Linear Programming
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Q1) Consider a corner point to a linear programming problem, which lies at the intersection of the following two constraints:
6X + 15X 390
2X + X 50
Which of the following statements about the corner point is True?
A) X 21
B) X 25
C) X 10
D) X 17
Q2) What are the limitations of the graphical method of linear programming?
Q3) The assumption of ________ allows a decision maker to combine the profit from one product with the profit from another to realize the total profit from a feasible solution.
Q4) A modeler is limited to two or fewer decision variables when using the ________.
Q5) In a linear program, ________ represent choices the decision maker can control.
Q6) Degeneracy occurs when the linear program model consists of only an infeasible region.
A)True
B)False
Q7) For an "equal" constraint, only points ________ are feasible solutions.
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Chapter 22: Supplement E Simulation
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Q1) A variable that is controlled by the decision-maker and will change from one run to the next as different events are simulated is a(n) ________.
Q2) Use the information in Scenario E.1. Approximately how much time did the average customer who entered the system spend waiting in line?
A) 9.75 minutes
B) 3.08 minutes
C) 5.85 minutes
D) 3.98 minutes
Q3) ________ are random events that the decision maker cannot control.
Q4) How can random numbers be generated?
Q5) One hundred monkeys are typing in Excel spreadsheets when one of them enters =NORM.S.INV(RAND()) What is the result of this monkey's function?
A) the number zero
B) random numbers evenly distributed from 0 to 1 inclusive
C) probabilities of the normal distribution function
D) z-scores from the standard normal distribution
Q6) What is steady state in a simulation model? Why is it important to achieve steady state?
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Chapter 23: Supplement F Financial Analysis
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Q1) The ________ is the interest rate that is the lowest desired return on an investment.
Q2) Describe the basic techniques of financial analysis.
Q3) Conhugeco's CEO is ready to step down and wants to sock away enough money in his offshore Caribbean accounts to generate $150,000 per year for the next ten years. If he can secure a 4% interest rate from the bank, how much does he need to earmark today?
A) about $1.1 million
B) about $1.2 million
C) about $1.5 million
D) about $1.4 million
Q4) Since 1986, the only acceptable accelerated depreciation method is the ________.
Q5) What are the different types of depreciation? What are the advantages and disadvantages of each?
Q6) What is the future value of an investment of $10,000 at 8% interest after 10 years?
Q7) The term ________ is often used to describe the common U.S. business practice of focusing on short-term results from low-risk projects via analysis by NPV or IRR calculations.
Q8) Explain the time-value-of-money concept.
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Chapter 24: Supplement G Acceptance Sampling Plans
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Q1) A manufacturer wants a sampling plan in which AQL = 0.02, LPTD = 0.12, = 0.05, and = 0.10. Which of the following values for n and c best satisfy these specifications? Table G.1 is appended to this exam.
A) n = 54, c = 3
B) n = 100, c = 2
C) n = 200, c = 1
D) n = 162, c = 0
Q2) ________ is the quality level desired by the consumer.
Q3) Which of the following statements is True?
A) Sequential-sampling plans are preferred to single-sampling plans because the average number of items inspected is generally lower.
B) With a sequential-sampling plan, each time an item is inspected, a decision is made to accept or reject a lot.
C) With a sequential-sampling plan, sampling continues until the lot is rejected.
D) Sequential-sampling plans are defined by four parameters: n , n , c , c .
Q4) Replacing all defective items in a rejected lot and all defective items in a sample with good items is called ________ inspection.
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Chapter 25: Supplement H Measuring Output Rates
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Q1) When using a time study approach, the standard time is the:
A) normal time per cycle multiplied by 1.0 plus the allowance.
B) select time multiplied by the rating factor, summed over all work elements.
C) select time plus z times the standard deviation.
D) normal time plus z times the standard deviation.
Q2) The key to creating a work standard is defining ________.
Q3) An industrial engineer is conducting a time study for a work element. The select time is 7.5 minutes, and the sample standard deviation of the observed time is one minute. What is the appropriate sample size if the estimate is to be 3 percent of the True average time 95 percent of the time (z = 1.96)?
A) fewer than or equal to 70
B) greater than 70 but fewer than or equal to 80
C) greater than 80 but fewer than or equal to 90
D) greater than 90
Q4) The more frequently the activity occurs, the longer the time period should be when conducting a work sampling study.
A)True
B)False
Q5) Why is a sampling schedule important in a work sampling study?
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Chapter 26: Supplement I Learning Curve Analysis
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Q1) The first unit took fifteen days to finish and the second unit was finished a mere 13.5 days later. How long will it take to finish the eighth unit?
A) 10.7 days
B) 10.9 days
C) 10.5 days
D) 11.1 days
Q2) Tim usually exhibits a 90% learning rate for the mechanical tasks he undertakes. His next big project, the fence along the street, will require 24 iterations of the fencepost task. If he has 40 hours available to work on the project, how fast must he perform the first iteration in order to finish all 24 within his allotted time?
Q3) Which one of the following is an assumption of learning curves?
A) The cumulative time of production decreases as production increases.
B) Time reduction per unit increases as cumulative production increases.
C) The same learning curve should be used when a company increases its level of automation.
D) The reduction in time per unit follows an exponential curve.
Q4) What are some managerial considerations when using learning curves?
Q5) The mathematical model that is used to generate a learning curve is ________.
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