Business Process Management Practice Exam
Course Introduction
Business Process Management (BPM) is a comprehensive course that explores the strategies, methodologies, and tools used to model, analyze, and optimize business processes within organizations. Students learn how to identify inefficiencies, measure performance, and implement process improvements to support organizational goals. The course covers process mapping, workflow automation, process redesign, change management, and the use of BPM software. Through case studies and practical applications, students develop the skills needed to enhance productivity, improve service delivery, and maintain quality control in dynamic business environments.
Recommended Textbook operations management 5th edition by r. dan reid
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Page 2
Chapter 1: Introduction to Operations
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Sample Questions
Q1) In what company were the Hawthorne Studies conducted?
A)Westinghouse
B)General Electric
C)Hawthorne Incorporated
D)General Motors
E)Western Electric
Answer: E
Q2) Sustainability was an early 1950's management function and focus.
A)True
B)False
Answer: False
Q3) All business functions need ______________from operations management while operations managers are highly dependent on______ from _____ _______ to perform their jobs.
Answer: Information,input,all others
Q4) Service providers may also transform inputs into
Answer: Goods that support their service,like restaurant food preparation,hair and skin care products,and final assembly of bicycles,tricycles,wagons,furniture,and other products.
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Chapter 2: Operations Strategy and Competitiveness
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Sample Questions
Q1) If Joe's Diner serves 150 meals in one day using 3 kitchen staff,what is the kitchen staff daily productivity?
A)40 meals/staff
B)45 meals/staff
C)50 meals/staff
D)55 meals/staff
E)60 meals/staff
Answer: C
Q2) Last week Jason painted 11 houses in 4 days.This week he painted 14 houses in 5 days.What was his percent productivity increase?
A)1.82%
B)1.79%
C)27.27%
D)25.00%
E)5.00%
Answer: A
Q3) Rapid technological change includes the risk of ________________________ . Answer: obsolescence.
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Chapter 3: Product Design and Process Selection
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Sample Questions
Q1) Buying a competitor's new product and studying its design features by disassembling it and analyzing its parts and features is reverse engineering.
A)True
B)False
Answer: True
Q2) Which of the following is correct sequence for relating product design,process selection,and arrangement of equipment in the factory?
A)product design determines arrangement of equipment which determines process selection
B)product design determines process selection which determines arrangement of equipment
C)process selection determines product design which determines arrangement of equipment
D)process selection determines arrangement of equipment which determines product design
E)arrangement of equipment determines process selection which determines product design
Answer: B
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Page 5
Chapter 4: E-Commerce and Supply Chain Management
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Sample Questions
Q1) Simuelson Industries can produce its own motors for a $60,000 fixed monthly cost and a $50 variable cost per unit.Alternatively,Simuelson Industries can purchase the motors from an outside supplier for $50,000 per month and $58 per unit.
a)What is the indifference point?
b)What option should be chosen if monthly demand is 1200 units?
Q2) What type of warehouse is used for long-term storage?
A)Customized
B)Strategic
C)General
D)Distribution
E)Tactical
Q3) Collection of point-of-sale (POS)information is most useful for which bullwhip effect remedy?
A)Allocate units based on past demand
B)Price stabilization
C)Fill orders based on a set percentage
D)Eliminate order batching
E)Information sharing
Q4) Logistics includes what two major management functions?
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Chapter 5: Total Quality Management
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Sample Questions
Q1) Philip Crosby believed that ________________________ because the cost of doing it right the first time is less than the cost of correcting mistakes later
Q2) Who developed quality control charts?
A)Walter Shewhart
B)W)Edwards Deming
C)Joseph Juran
D)Phillip Crosby
E)Genichi Taguchi
Q3) In TQM the role of the employee is very similar to earlier requirements.
A)True
B)False
Q4) A useful tool for translating customers' everyday language into specific technical requirements is Quality Function Deployment.
A)True
B)False
Q5) What are four dimensions of manufacturing quality?
Q6) Explain why external failure costs tend to be very expensive for service organizations.
Q7) Name six common definitions of quality in manufacturing.
Page 7
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Chapter 6: Statistical Quality Control
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Sample Questions
Q1) What are the three broad categories of statistical quality control?
Q2) What is a distribution called when the same numbers of observations are below the mean as are above the mean?
A)Equalized
B)Proportional
C)Wholly Uniform
D)Balanced
E)Symmetric
Q3) What does "OC" stand for?
Q4) Setting up control charts to monitor whether a process is in control
A)guarantees process capability
B)guarantees process specifications
C)does not guarantee process capability
D)does not guarantee product specification
E)guarantees meeting client needs
Q5) Describe the difference between black belts and green belts in a six-sigma implementation.
Q6) Define attribute (as a product characteristic).
Q7) If the average range is 4.0 inches and the sample size is 18,compute the upper and lower limits for an R chart.
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Chapter 7: Just-In-Time and Lean Systems
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Sample Questions
Q1) Uniform plant loading involves
A)Large lots produced over several days
B)Making the same mix of products every day in small quantities
C)Large amounts of inventory
D)Making large changes in production to respond to changes in demand
E)Spreading production uniformly over several plants
Q2) Undercapacity scheduling is the term that describes working with a schedule of seven hours of production and one hour of problem solving with teams.
A)True
B)False
Q3) JIT considers people to be a company's most precious resource.
A)True
B)False
Q4) JIT considers waste anything that
A)Fits in a waste basket
B)Reduces production capacity
C)Has been discarded
D)Cannot be recycled
E)Does not add value
Q5) JIT supply chains often involve firms that _____________________.
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Chapter 8: Forecasting
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Sample Questions
Q1) Suppose that you are using the exponential smoothing forecasting method,and this period's forecast (F<sub>t</sub>)was 100% accurate (i.e.,no error).If = .5,which of the following is definitely true?
A)Next period's forecast will also be 100% accurate.
B)Next period's forecast equals this period's actual.
C)This period's forecast must be thrown out,and next period's forecast equals F<sub>t-1</sub> + (A<sub>t-1</sub> F<sub>t-1</sub>).
D)Next period's forecast equals 50% of this period's forecast.
E)Next period's forecast equals 50% more than this period's forecast.
Q2) Suppose that you are using the three-period simple moving average method to forecast sales,and sales have been increasing by 10% every period.Then your forecasts will be increasing by 10% every period.
A)True
B)False
Q3) Forecasting only impacts the business functions.
A)True
B)False
Q4) The most frequently used forecasting model is the ____________.
Q5) Multiple regression is a(n)___________ of linear regression.
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Chapter 9: Capacity Planning and Facility Location
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Sample Questions
Q1) 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
Q2) Phil's consulting services has grown rapidly.Phil is now traveling extensively around the country.Phil has the liberty to live anywhere he wants but wants to decide,geographically,the ideal location to relocate to.Phil's primary clients and associated number of trips are:
Client A = 15 trips,coordinates (20,80)
Client B = 40 trips,coordinates (30,60)
Client C = 35 trips,coordinates (40,70)
Client D = 25 trips,coordinates (50,90)
Q3) Name three of the main factors that affect location decisions.________________________,________________________,and
Q4) Capacity cushions can be helpful if sales need to be buffered from production. A)True B)False
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Chapter 10: Facility Layout
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Sample Questions
Q1) A car wash is an example of which layout type?
A)inverted
B)hybrid
C)process
D)fixed position
E)product
Q2) How many different layout solutions are possible with 7 departments?
A)7
B)720
C)28
D)7000
E)5040
Q3) The step,when Designing a Product Layout,whose goal is to design a product layout that can produce the desired number of units with the least amount of work centers and a balance of workload.
A)Compute efficiency,idle time & balance delay
B)Determine cycle time
C)Determine output rate
D)Assign tasks to workstations
E)Identify tasks & immediate predecessors
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Chapter 11: Work System Design
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Sample Questions
Q1) An increase in the desired confidence level will decrease the number of observations necessary in a time study.
A)True
B)False
Q2) What are the characteristics of time-based compensation systems?
Q3) What is the approach that moves the work to the worker rather than the worker to the workplace?
A)teleworking
B)virtual office
C)office at home
D)office on the move
E)the alternative workplace
Q4) The allowance factor is computed by adding one to PFD (personal time,fatigue,and unavoidable delays)when the allowance is based on what?
A)normal time
B)the performance rating factor
C)job time
D)time worked
E)standard time
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Chapter 12: Independent Demand Inventory Management
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Sample Questions
Q1) What implies that about 20% of the inventory items will account for about 80% of the inventory value?
A)Little's law
B)Friedman's law
C)Pablo's proposition
D)Keyne's law
E)Pareto's law
Q2) What inventory function protects against supply shortages?
Q3) How much safety stock should an organization hold if it wants to provide a 95% order-cycle service level for an item whose annual demand is 12000 units with standard deviation of 300 units per year and 30 units during lead time.The organization uses 1.96 standard deviations for this purpose.
Q4) If inventory records fail to accurately reflect the quantity of materials available,all except which of the following may occur?
A)poor customer service
B)continuous operations
C)lower productivity
D)poor material planning
E)excessive expediting
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Chapter 13: Aggregate Planning
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Sample Questions
Q1) An important advantage of chase aggregate plans is that they ____________________.
Q2) The comparison of aggregate plans is difficult when they produce different quantities and have different ending inventories.
A)True
B)False
Q3) In a level production plan,if you do not allow backorders,you will need to ensure the _____ is sufficient to meet the average demand.
Q4) In proactive option demand-based aggregate planning,marketing tries to _____ the _____ pattern.
Q5) Which of the following best describes subcontracting?
A)provides additional output capacity during periods of high demand
B)it is a strategic decision
C)cost per unit is less for subcontracting
D)used when a company has no in-house capability
E)it defines the company's core business
Q6) What are the disadvantages for hiring permanent employees?
Q7) Briefly discuss a negative outcome of using a level production plan in a nontangible (service)organization.
Page 15
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Chapter 14: Resource Planning
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Sample Questions
Q1) Scheduled receipts are _________________________________________.
A)planned orders
B)planned orders offset by lead time
C)gross requirements offset by lead time
D)gross requirements minus inventory
E)replenishment orders that have been placed but not yet received
Q2) The current time period is referred to as __________________.
A)time zero
B)the point of departure
C)the start time
D)the action bucket
E)this year
Q3) If an order is not scheduled to arrive in time,the planner tries to ________________.
A)find a replacement order
B)cancel the order
C)split the order in two
D)expedite the order
E)talk marketing into changing the due date
Q4) List the major users of ERP systems.
Page 16
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Chapter 15: Scheduling
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Sample Questions
Q1) A measure of response time is:
A)makespan
B)job flow time
C)due date
D)job lateness
E)job schedule time
Q2) What does the term "floating employees" refer to?
Q3) Eli Goldratt's bottleneck scheduling system is called _____________.
Q4) Which of the following is mostly like to be an internal resource constraint?
A)increasing market demand
B)raw material shipping problems
C)decreasing market demand
D)no overtime
E)a regular bottleneck in the product process
Q5) A greater number of jobs in the system implies what?
A)a higher work-in-process inventory level and a longer response time
B)a lower work-in-process inventory level and a longer response time
C)a higher work-in-process inventory level and a shorter response time
D)a lower work-in-process inventory level and a shorter response time
E)more jobs will certainly be tardy.
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Chapter 16: Project Management
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Sample Questions
Q1) _____________________ structure the sequencing of activities.
A)Evaluation of costs
B)Crashings
C)Work breakdowns
D)Backschedules
E)Precedence relationships
Q2) 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 _________________.
A)5 days
B)7 days
C)8 days
D)10 days
E)15 days
Q3) You may be able to speed up completion of a project by
A)reducing the standard deviation of activities
B)recalculating the critical path
C)making additional resources available
D)adding slack to critical activities
E)redoing some of the activities
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Chapter 17: Spreadsheet Modeling: an Introduction
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Sample Questions
Q1) Which of the following is equivalent to "=SUMPRODUCT(A1:A4,B2:B6)"?
A)A1*A4 + B2*B6
B)A1*B2 + A2*B3 + A3*B4 + A4*B5
C)(A1+A4)*(B2+B6)
D)(A1+A2+A3+A4)*(B2+B3+B4+B5+B6)
E)This is an invalid function.
Q2) The most common form of models are mathematical models.
A)True
B)False
Q3) In Excel,Goal Seek is found under which menu option?
A)Insert
B)Edit
C)File
D)Tools
E)Data
Q4) Define and describe a model.
Q5) The benefits of including a particular factor in a model must be weighed against the decreased complexity of the model resulting from its inclusion.
A)True
B)False
Page 19
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Chapter 18: Introduction to Optimization
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Sample Questions
Q1) Excel Solver restricts the constraints to either >= or =.
A)True
B)False
Q2) Given a Linear Program with a minimization objective,the optimal objective function value may decrease if a constraint is added to the program.
A)True
B)False
Q3) There is no single way to set up a Linear Program in a spreadsheet.
A)True
B)False
Q4) What do you need to do before using Solver?
A)take an Excel class
B)enter solver settings into Excel
C)define all constraints
D)enter Solver options
E)have a working,flexible spreadsheet model
Q5) A specific combination of values of the decision variables such that at least one of the constraints is violated results in a(n)______________________.
Q6) Describe guidelines for spreadsheet model development.
Page 20
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Chapter 19: Waiting Line Models
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Sample Questions
Q1) Which of the following is least likely to be considered a finite customer population?
A)subassemblies in a just-in-time manufacturing environment
B)fast food restaurant employees waiting to use the restroom
C)planes waiting to take off at an airport
D)a class of 10 students who might visit their professor during office hours
E)cars taking Exit 76 off of a freeway during rush hour
Q2) List some system changes one can make to try to improve waiting line performance.
Q3) Which of the following waiting line systems best describes a bank with a single waiting line that feeds customers to multiple identical servers?
A)single-server,single-phase
B)single-server,multi-phase
C)multi-server,single-line,single-phase
D)multi-server,multi-line,single-phase
E)multi-server,multi-phase
Q4) _________ _________ are used to gain useful information about waiting line systems.
Q5) Waiting line models typically assume what distribution(s)?
Q6) Waiting line priority rules determines _________ customer is served _________.
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Chapter 20: Master Scheduling and Rough-Cut Capacity Planning
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Sample Questions
Q1) In MPS terminology,what is another name for the current period?
A)the hot seat
B)the live wire
C)the live basket
D)the empty buck
E)the action bucket
Q2) Describe what CPOPF is.
Q3) The MPS is said to be ________________________ between final assembly and cumulative manufacturing lead times.
Q4) Engines Corp.builds two different types of motors in three departments.Historically,department X uses 20%,department Y uses 50%,and department Z uses 30% of direct labor and machine time,respectively.In the next quarter,demand for Model A is expected to be 40,000 units,and demand for Model B is expected to be for 50,000 units.The CPOPF planning factors are: direct labor for Model A = 0.667 hrs./unit,machine time for Model A = 1.75 hrs./unit,direct labor for Model B = 1.087 hrs./unit,machine time for Model B = 0.261 hrs./unit.Calculate the amount of labor and machine time that will need to be allocated to each of the three departments next quarter.
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Q5) Discuss why a negative number in the available-to-promise row is always a problem.