Business Process Management
Midterm Exam
Course Introduction
Business Process Management (BPM) examines the systematic approach to designing, analyzing, implementing, monitoring, and optimizing organizational processes. This course explores how effective process management strategies can lead to improved efficiency, agility, and competitiveness for enterprises. Students will learn BPM methodologies and tools, such as process modeling, workflow automation, and continuous process improvement techniques like Lean and Six Sigma. The curriculum emphasizes real-world applications through case studies and practical exercises, equipping learners to identify, analyze, and reengineer business processes to add value and achieve organizational goals.
Recommended Textbook Operations Management Creating Value Along the Supply Chain 7th Edition by Roberta S. Russell
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Chapter 1: Operations Management
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Sample Questions
Q1) China is reshaping the way firms compete globally
A)True
B)False Answer: True
Q2) Globalization requires that firms compete on cost and not quality,speed or flexibility.
A)True
B)False Answer: False
Q3) Positioning is a step in strategy formualtion that compares core competencies and order winners.
A)True
B)False Answer: True
Q4) All of the following are responsibilities of operations managers except
A)acquiring financial resources
B)managing inventories
C)planning production
D)scheduling production
Answer: A
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Chapter 2: Quality Management
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Sample Questions
Q1) Service quality is more directly related to the interaction between customer and employee than is manufacturing quality.
A)True
B)False
Answer: True
Q2) The training and education of all employees on quality improvement is a basic principle of total quality management.
A)True
B)False
Answer: True
Q3) Employees' role in quality management is becoming less important because of the implementation of strong quality management systems.
A)True
B)False
Answer: False
Q4) With Six Sigma a teacher and mentor is known as a Green Belt
A)True
B)False
Answer: False
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Chapter 3: Statistical Quality Control
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Sample Questions
Q1) One reason some companies fail in their attempt to apply statistical process control is lack of training.
A)True
B)False
Answer: True
Q2) In some cases,the xbar-chart is used without an R-chart because there is no variation between the samples.
A)True
B)False
Answer: False
Q3) The process centerline for both xbar and R charts are both the same value because they are based on the same raw data.
A)True
B)False
Answer: False
Q4) Statistical process control is a tool used to monitor and improve quality.
A)True
B)False
Answer: True
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Chapter 4: Product Design
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Sample Questions
Q1) All of the following are characteristics of an effective design process except A)increasing the design time for new products and services
B)meeting customer requirements in the least costly manner
C)matching product or service characteristics with customer requirements
D)minimizing the number of revisions needed to make the design workable
Q2) The house of quality,the most popular quality function deployment
QFD)matrix,converts customer requirements into product design specifications.
A)True
B)False
Q3) Which of the following is not a characteristic of an effective product design process?
A)matches product characteristics with customer requirements
B)maximizes the revisions necessary to make a design workable
C)ensures that customer requirements are met in the least costly and simplest manner
D)reduces the time required to design a new product or service
Q4) Comparing a product or process against the best-in-class is known as benchmarking.
A)True
B)False
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Chapter 5: Service Design
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Sample Questions
Q1) Consider an espresso stand with a single barista.Customers arrive to the stand at the rate of 28 per hour according to a Poisson distribution.Service times are exponentially distributed with a service rate of 35 customers per hour.The probability that there are more than 2 customers in the system is
A)0.128
B)0.488
C)0.512
D)0.640
Q2) The number of parallel servers in waiting line analysis is referred to as the number of phases.
A)True
B)False
Q3) It is widely accepted that the effective design and the efficient operation of services are paramount to the health of the U.S.economy.
A)True
B)False
Q4) A single waiting line model can be applied to every type of waiting line system.
A)True
B)False
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Chapter 6: Processes and Technology
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Sample Questions
Q1) Which of the following is NOT associated with the sourcing continuum?
A)Joint venture
B)In-house production
C)Strategic alliance
D)Single contract
Q2) Variable demand and small to moderate quantities produced to order are characteristics usually associated with A)mass production
B)continuous production
C)projects
D)batch production
Q3) Vertical integration is the degree to which a firm produces the parts that go into its products.
A)True
B)False
Q4) List some non-economic factors that can influence a firm's outsourcing decision.
Q5) Process planning determines how a manufactured good is produced or a service is provided.
A)True
B)False
Page 8
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Chapter 17: Scheduling
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Sample Questions
Q1) The first-come,first-served (FCFS)sequencing rule should be only used when operating at high levels of capacity.
A)True
B)False
Q2) Johnson's rule gives an optimal sequence for jobs processed serially through a two step system.
A)True
B)False
Q3) Input/output control provides the information necessary to regulate work flow in a job shop environment.
A)True
B)False
Q4) The time required for a job to move through the system is referred to as flow time.
A)True
B)False
Q5) Managers typically use multiple objective when constructing a schedule.
A)True
B)False
Q6) What is the difference between infinite scheduling and finite scheduling?
Page 9
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Chapter 7: Capacity and Facilities
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Sample Questions
Q1) Line balancing strives to minimize bottlenecks in a process layout.
A)True
B)False
Q2) Which of the following statements is most true?
A)product layouts are flexible;process layouts are efficient
B)product layouts are efficient;process layouts are flexible
C)product and process layouts are equally flexible;neither are efficient
D)product and process layout are equally efficient;neither are flexible
Q3) What type of layout is commonly used in services? What are some of the objectives associated with service layouts?
Q4) Which one of the following is NOT an example of a hybrid facility layout?
A)Fixed-position
B)Mixed-model
C)Cellular
D)Flexible manufacturing
Q5) Most service organizations use
A)product layouts.
B)fixed-position layouts.
C)process layouts.
D)cellular layouts.
10
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Chapter 8: Human Resources
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Sample Questions
Q1) Fitting the task to the person in a work environment is known as job analysis.
A)True
B)False
Q2) In a piece-rate wage system pay a worker's pay is based on A)total output.
B)job rating.
C)job classification.
D)total time.
Q3) Determining how tasks fit together to form a job is referred to as A)worker analysis.
B)task analysis.
C)environmental analysis.
D)ergonomics.
Q4) While still an important issue,diversity issues in U.S.companies is on the decline.
A)True B)False
Q5) Scientific Management involves breaking down jobs into elemental activities. A)True
B)False
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Chapter 9: Project Management
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Sample Questions
Q1) Microsoft Project is a software package that supports PERT but not CPM.
A)True
B)False
Q2) Which of the following is NOT a basic element in a project plan?
A)Objectives
B)Personnel
C)Contract requirements
D)All the above are basic elements
Q3) A ______________ breaks down a project into components,subcomponents,activities,and tasks.
A)work breakdown structure (WBS)
B)scope statement
C)responsibility assignment matrix (RAM)
D)organizational breakdown structure (OBS)
Q4) Which of the following is not a general characteristic of a project?
A)a project has a unique purpose
B)a project has more certainty
C)a project has more uncertainty
D)a project often draws resources from various areas in the organization
Q5) Briefly discuss project management and what it involves.
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Chapter 10: Supply Chain Management: Strategy and Design
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Sample Questions
Q1) Collaborative planning,forecasting,and replenishment CPFR)is a useful tool supporting supply chain integration.
A)True
B)False
Q2) Companies resist establishing green supply chains for all the following reasons except that
A)the market is soft for products with green attributes.
B)green manufacturing requires costly new equipment and practice.
C)green initiatives lower costs because fewer resources are consumed.
D)green practices face additional government,societal and social pressures.
Q3) Suppliers and customers rarely participate in the design of a supply chain.
A)True
B)False
Q4) Who are the upstream and downstream supply chain members?
Q5) Supply chain management focuses on integrating and managing the flow of A)services. B)information.
C)goods.
D)all the above.
Q6) What is a supply chain?
Page 13
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Page 14
Chapter 11: Global Supply Chain Procurement and Distribution
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Sample Questions
Q1) Many companies are outsourcing in countries where higher prices for supply are offset by higher quality.
A)True
B)False
Q2) Outsourcing and sourcing have the same meaning and are often used interchangeably.
A)True
B)False
Q3) Outsourcing is a relatively new phenomenon used strictly by multinationals.
A)True
B)False
Q4) Companies often outsource to
A)focus on core competencies.
B)achieve greater flexibility.
C)reduce costs.
D)All of the above.
Q5) Purchasing can be classified according to two broad categories: direct (manufacturing inputs)and indirect (operating inputs).
A)True
B)False
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Chapter 12: Forecasting
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Sample Questions
Q1) The smoothing constant, ,in the exponential smoothing forecast
A)must always be a value greater than 1.0.
B)must always be a value less than 0.10.
C)must be a value between 0.0 and 1.0.
D)should be equal to the time frame for the forecast.
Q2) The exponential smoothing model produces a naïve forecast when the smoothing constant, ,is equal to
A)0.00.
B)1.00.
C)0.50.
D)2.00
Q3) A ___________ is an up-and-down movement in demand that repeats itself over a lengthy time period of more than a year.
A)trend
B)seasonal pattern
C)random variation
D)cycle
Q4) Time series methods use historical data to predict future demand.
A)True
B)False
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Chapter 13: Inventory Management
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Sample Questions
Q1) The order quantity for a periodic inventory system remains constant.
A)True
B)False
Q2) Annual demand for a product is 40,000 units.The product is used at a constant rate over the 365 days the company is open every year.The annual holding cost for the product is estimated to be $2.50 per unit and the cost of placing each order is $125.00.If the company orders according to the economic order quantity (EOQ)formula then the time between orders (order cycle time)is
A)18.25 days.
B)24.33 days.
C)36.5 days.
D)73 days.
Q3) With the economic order quantity (EOQ)model ,the number of orders increases as the order size decreases.
A)True
B)False
Q4) Inventory management is concerned with how much to order and when to order.
A)True
B)False
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Chapter 13: Operational Decision-Making Tools: Simulation
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Sample Questions
Q1) Simulation analysis is useful for operational problems that A)are easy to solve analytically.
B)can't be solved analytically.
C)require an optimal solution.
D)meet specific analytical criteria.
Q2) Simulation analysis is the preferred method used at hospitals to determine the type of treatment a patient requires.
A)True
B)False
Q3) The Monte Carlo technique is a mathematical model used within a simulation.
A)True
B)False
Q4) After a sufficient number of simulation runs a steady state results when the variable being investigated reaches an _________ value that remains constant.
A)optimal
B)average
C)expected
D)estimated
Q5) In what ways is simulation relevant to analyzing production problems?
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Chapter 14: Operational Decision-Making Tools: Linear Programming
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Sample Questions
Q1) What is meant by the term "shadow price" in linear programming?
Q2) The simplex method is a solution method used for linear programming problems that have
A)no constraints.
B)at least one constraint.
C)at least two constraints.
D)at least three constraints.
Q3) The optimal solution for a linear programming problem will always occur
A)when the slack price equals the surplus price.
B)when the surplus price equals the slack price.
C)at an extreme point.
D)at a non-extreme point.
Q4) Because linear programming provides an optimal solution,sensitivity analysis is never an important consideration.
A)True
B)False
Q5) While all linear programming problems have a single objective function,very few,if any,have constraints.
A)True
B)False
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Chapter 14: The Sales and Operations Planning Process
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Sample Questions
Q1) In capacity planning,the feasibility of the sales and operations production plan is verified by a
A)resource requirements plan.
B)rough-cut capacity plan.
C)capacity requirements plan.
D)master production schedule.
Q2) The process of breaking an aggregate plan into more detailed plans is referred to as
A)collaborative planning.
B)hierarchical planning.
C)disaggregation.
D)rough-cut planning.
Q3) Inventory holding costs are an important consideration for the level production strategy.
A)True
B)False
Q4) An operations plan is an input into the sales and operations planning process.
A)True
B)False
Q5) Briefly discuss the two primary objectives of aggregate planning.
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Chapter 15: Resource Planning
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Sample Questions
Q1) The MRP process of subtracting on-hand quantities and scheduled receipts from gross requirements to produce net requirements is referred to as
A)cycle counting.
B)lot sizing.
C)exploding.
D)netting.
Q2) The optimal time required to manufacture a product is called its cumulative lead time.
A)True
B)False
Q3) When is it appropriate to use material requirements planning (MRP)?
Q4) An enterprise resource planning (ERP)system shares information across functional areas.
A)True
B)False
Q5) Customer relationship management (CRM)software plans and executes business processes that involve customer interactions.
A)True
B)False
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Chapter 16: Lean Systems
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Sample Questions
Q1) Which of the following is not a typical component of lead time?
A)processing time
B)maintenance time
C)waiting time
D)setup time
Q2) Small-lot production reduces lead time but increases quality problems.
A)True
B)False
Q3) Value stream mapping (VSM)is a tool for
A)reducing setup times.
B)improving quality at the source.
C)analyzing process flow.
D)designing manufacturing cells.
Q4) The output of a manufacturing cell is changed by adding or removing workers.
A)True
B)False
Q5) General purpose machines are an example of flexible resources.
A)True
B)False
Q6) What are the benefits of small-lot production?
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Chapter 18: Operational Decision-Making Tools: Decision Analysis
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Sample Questions
Q1) The maximum value of perfect information to the decision maker is known as
A)the expected value of perfect information
B)the expected value of imperfect information
C)the minimum of the minimax regret
D)none of the above
Q2) Quantitative methods are tools available to operations managers to help make a decision but not a recommendation.
A)True
B)False
Q3) When probabilities are assigned to states of nature the situation is referred to as decision making under uncertainty.
A)True
B)False
Q4) A decision criterion that results in the maximum of the minimum payoffs is called a maximin criterion.
A)True
B)False
Q5) What is decision analysis?
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Chapter 19: Operational Decision-Making Tools: Acceptance Sampling
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Sample Questions
Q1) A multiple-sampling plan uses the smallest sample size of any sampling plan. A)True
B)False
Q2) .Is acceptance sampling consistent with TQM?
Q3) Double-sampling plans are often less costly than single-sampling plans.
A)True
B)False
Q4) What is the advantage of a multiple-sampling plan?
Q5) A(n)________________ curve is a graph showing the probability of accepting a lot for different quality levels with a specific sampling plan.
A)operating characteristic (OC)
B)average outgoing quality
C)lot tolerance percent defective
D)single-sample attribute
Q6) Acceptance sampling is still used today for all the following reasons except A)government regulations.
B)contractual requirements.
C)industry standards.
D)total quality management principles.
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Chapter 20: Decision-Making Tools: Facility Location Models
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Sample Questions
Q1) Common location incentives include all of the following except A)tax credits.
B)job training.
C)fixed exchange rates.
D)improvements to infrastructure.
Q2) The region experiencing the most growth in manufacturing facilities is currently the A)Northeast.
B)West.
C)South.
D)Midwest.
Q3) Inadequate infrastructure at a given location increases supply chain costs and decreases customer service.
A)True
B)False
Q4) For a service operation being in the right place usually means being in a location that is convenient and easily accessible.
A)True
B)False
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Chapter 21: Operational Decision-Making Tools: Work Measurement
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Sample Questions
Q1) How many cycles should be used in a time study in order to be 95% confident that the time-study average job cycle time is within 5% of the true average job cycle time.Assume that the average job cycle time was 2.67 minutes and the standard deviation of the sample was 0.72 minutes.
A)36 cycles
B)72 cycles
C)98 cycles
D)112 cycles
Q2) In a time study,the normal time is computed as
A)the elemental average time multiplied by the rating factor
B)the elemental average time divided by the rating factor
C)the elemental average time minus the rating factor
D)the elemental average time plus the rating factor
Q3) The normal time to perform a job is calculated by dividing the elemental average by the standard time.
A)True
B)False
Q4) List the steps in work sampling.
Q5) What is work sampling and what is its primary use?
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