Business Process Management
Study Guide Questions
Course Introduction
Business Process Management (BPM) is an interdisciplinary course that introduces students to the concepts, methodologies, and tools used to design, analyze, implement, monitor, and optimize business processes within organizations. The course covers the fundamental principles of process thinking, process modeling techniques such as BPMN, and the role of information technology in automating and supporting business workflows. Students learn how to evaluate and improve organizational efficiency and effectiveness by aligning processes with strategic objectives, identifying bottlenecks, and leveraging process analytics. Real-world case studies and hands-on exercises illuminate the impact of BPM on organizational agility, innovation, and competitive advantage.
Recommended Textbook
Introduction to Operations and Supply Chain Management 4th Edition by
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Page 2
Cecil B. Bozarth
Chapter 1: Introduction to Operations and Supply Chain Management
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Sample Questions
Q1) There is no need for an organizational interface between the finance function and the operations and supply chain management function.
A)True
B)False
Answer: False
Q2) Of the three flows linking organizations in a supply chain,information and monetary flows always move upstream and physical flows always move downstream.
A)True
B)False
Answer: False
Q3) The ________ function of an organization manages the movement of physical goods throughout the supply chain.
Answer: logistics
Q4) Which of the following is primarily a supply chain management decision?
A) from whom to purchase materials
B) how many of each item should be produced
C) the mix of labor skill and automation
D) the location of the plant
Answer: A
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Chapter 2: Operations and Supply Chain Strategies
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Sample Questions
Q1) A business's core competencies can shift over time.
A)True
B)False
Answer: True
Q2) Which of the following statements about functional strategies is best?
A) Functional strategies are not impacted by the mission statement; instead they are impacted by the overall business strategy.
B) Functional strategies determine the overall business strategy.
C) Many functional level strategies could readily be described as cross-functional.
D) A firm's operations and supply chain strategy is more important than their marketing, finance and engineering strategies.
Answer: C
Q3) At the ________ stage of alignment,the business strategy seeks to exploit core competencies found within the operations and supply areas.
Answer: externally supportive
Q4) ________ are tangible resources such as buildings,equipment,and computer systems.
Answer: Structural elements
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Chapter 3: Process Choice and Layout Decisions in Manufacturing and Services
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Sample Questions
Q1) Highly automated batch processes that can reduce the cost of making similar groups of products are:
A) functional layouts.
B) flexible manufacturing systems.
C) make-to-stock.
D) adjacent processes.
Answer: B
Q2) A product-based layout arranges resources sequentially according to the steps required to make a product.
A)True
B)False
Answer: True
Q3) As the degree of customer contact decreases,more of the service package is provided by the ________.
Answer: back room
Q4) Cycle time is the sum of all of the task times.
A)True
B)False
Answer: False
Page 5
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Chapter 4: Business Processes
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Sample Questions
Q1) Cycle time is the total time needed to complete a business process.
A)True
B)False
Q2) Green Belts have:
A) more Six Sigma training than Black Belts but less Six Sigma training than Champions.
B) more Six Sigma training than Champions but less Six Sigma training than Team Members.
C) more Six Sigma training than Black Belts but less Six Sigma training than Master Black Belts.
D) more Six Sigma training than Team Members but less Six Sigma training than Black Belts.
Q3) Describe the three types of processes and the relationships between them.
Q4) The Five Whys can be used during all three phases of construction of a Pareto chart. A)True
B)False
Q5) A process that seeks to improve the performance of main value-added and necessary,non-value-added activities is a(n)________ process.
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Chapter 5: Managing Quality
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Sample Questions
Q1) Garvin's dimension of durability is satisfied if the product fails infrequently.
A)True
B)False
Q2) Joseph Juran's definition of quality as "fitness for use" is an example of the value perspective of quality.
A)True
B)False
Q3) ISO 9001:2008 can be used by both manufacturing and service companies.
A)True
B)False
Q4) A customer that concentrates on the ease of repair or support for the product or service is concerned primarily with the ________ dimension of quality.
Q5) A quality perspective that focuses on whether or not a product was made or a service was performed as intended is the:
A) performance perspective.
B) value perspective.
C) conformance perspective.
D) intention perspective.
Q6) Describe the four quality-related costs and tell how they are related.
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Chapter 6: Managing Capacity
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Sample Questions
Q1) If a firm cannot make a profit regardless of output volume,then:
A) FC > VC.
B) VC > FC.
C) VC > R.
D) BEP > VC.
Q2) Saul Goodman represents several clients and bills at $400 per hour.He forgot to record the time it took to complete each activity,but he knows his eight hour day was spent representing three clients involved in one high profile case.He also remembers that Walt told him once that his learning curve percentage was 85%.How much more should Saul bill each of his three clients?
Q3) A collection of companies decides to work together for a while to provide service for what they see as a short term window of opportunity.These firms plan to coordinate their activities by deploying sophisticated information systems to share critical data.Each of these companies is skilled at one or two core activitiesdesign,manufacturing,distribution,marketing,and so on.This association of companies can be described as a(n)________.
Q4) The ________ capacity strategy attempts to adjust the current capacity to a level equivalent to the current demand.
Q5) In waiting line theory,a customer service attendant is a(n)________.
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Chapter 6: A: Advanced Waiting Line Theory and Simulation
Modeling
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Q1) Customers pass by any one of forty ticket takers on their way in the arena for a WWE event.This is a single ________ system.
Q2) Anxious cruise vacationers besiege Tatiana,their excursion coordinator,and her fourteen assistants at the Port of Cozumel when they realize that all water excursions have been cancelled for no reason in particular.It takes them 4 minutes to find the customers an alternative excursion activity and customers cluster around them at the rate of 200 per hour.Calculate system performance characteristics if service times are exponentially distributed and the arrivals follow a Poisson distribution.
Q3) One approach to mathematical simulation where statistical sampling is used to generate outcomes for a large number of trials is ________.
Q4) In most cases,simulation models provide optimal solutions to problems just like most of the equations presented in your textbook.
A)True
B)False
Q5) If 5 minutes passes between customer arrivals then the ________ is 12/hour.
Q6) A process is ________ if the outcome of one trial does not have any impact on the next trial.
Page 9
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Chapter 7: Supply Management
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Sample Questions
Q1) Perhaps the best way for standard items is ________ which is a description method that is applicable when the requirements are well understood.
Q2) A description method used when a product or service is proprietary or when there is a perceived advantage to using a particular supplier's product or services is:
A) description by market grade.
B) description by brand.
C) description by specification.
D) description by performance characteristics.
Q3) Dusty is evaluating three bids to supply fence hardware for the 5 acres of pasture that need to be fenced.Breezy submits a bid of $40 per unit with a defect rate of 2%; Lady's bid is $50 per unit with a defect rate of 0.5%; and Spike's bid is $30 per unit with a defect rate of 5%.If a section of fence fails,it costs an average of $500 in losses and herding costs to round up all of the capybaras.Dusty believes it will take 1000 units to fence in this pasture configuration; what is the BEST choice for supplier?
Q4) The first step of the purchasing process is to select the supplier.
A)True B)False
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Chapter 8: Logistics
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Sample Questions
Q1) Which of these statements about inventory management is BEST?
A) Spot stock warehouses are more useful with less inventory in the system.
B) A system using air transportation experiences higher costs due to higher levels of inventory.
C) Cross-docking facilities don't need to match incoming and outgoing demand since they typically retain much of their inventory for a week or longer.
D) A system using water and rail transportation tends to have higher levels of inventory.
Q2) ________ is a form of warehousing in which smaller outgoing shipments are created from large incoming shipments.
Q3) Which of the following is a type of material handling equipment?
A) 3PL
B) ASRS
C) LTL
D) RFID
Q4) A(n)________ uses more than one transportation mode through physical,information,and monetary flows that are as seamless as possible.
Q5) Refer to the scenario above.What is the objective function?
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Chapter 9: Forecasting
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Sample Questions
Q1) When there is a significant upward or downward trend in the data,the two best forecasting models are adjusted exponential smoothing and linear regression.
A)True
B)False
Q2) What are the laws of forecasting and what are their implications for operations and supply chain managers?
Q3) The independent variable is the quantity the forecaster is interested in estimating with a linear regression model.
A)True
B)False
Q4) What distinguishes collaborative planning,forecasting,and replenishment (CPFR)systems from traditional planning approaches is the emphasis on forecasting.
A)True
B)False
Q5) A collaborative planning,forecasting and replenishment system eliminates the need for forecasting.
A)True B)False
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Chapter 10: Sales and Operations Planning Aggregate Planning
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Sample
Questions
Q1) A sales and operations plan that varies both production and inventory levels is called a(n)________ production plan.
Q2) Net cash flow is the difference between the value added and the cash on hand at the end of the period.
A)True
B)False
Q3) A hotel using yield management would ________ prices if demand is higher than expected only if the expected result is ________.
Q4) Sales and operations planning is a necessary task for all companies,but is never a source of competitive advantage.
A)True
B)False
Q5) How can and why should a firm link S&OP throughout the supply chain?
Q6) Planning numbers are somewhat aggregated (month by month)in what planning level?
A) strategic planning
B) operational planning
C) tactical planning
D) detailed planning and control
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Chapter 11: Managing Inventory Throughout the Supply Chain
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Sample Questions
Q1) The cashier waved the can of golden hominy across the holographic bar code reader and it emitted a piercing beep.At the same time the customer's bill was rising,the grocery store's inventory was automatically being reduced by 1 can of golden hominy down to 3 cans.This was the bare minimum amount of hominy the store manager dared carry in inventory,so the computer system automatically sent a message to the hominy man,who loaded a few cases onto his delivery truck for tomorrow morning's trip to replenish the store.This is a classic example of:
A) a periodic review system.
B) safety stock.
C) a continuous review system.
D) cycle stock.
Q2) A target service level is the point where the expected cost of a shortage equals the expected cost of having excess units.
A)True
B)False
Q3) The order quantity in a periodic review system rises as the on-hand inventory falls.
A)True
B)False
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Chapter 12: Managing Production Across the Supply Chain
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Q1) What are three advantages of using an MRP system?
Q2) Material requirements planning is performed at greater level of detail than master scheduling.
A)True
B)False
Q3) A(n)________ is a record or graphical rendering that shows how all the subassemblies,intermediates,parts,and raw materials are put together to make the Level 0 item.
Q4) ________ is a tool that can be used to synchronize supply chain partners at the master production schedule level.
Q5) MRP uses backward scheduling.
A)True
B)False
Q6) Throughout every MRP record,ending inventory is equal to the ending inventory from the previous period,plus the master production schedule quantity,minus the orders booked for that period.
A)True B)False
Q7) Explain all of the information that is provided by a master schedule.
Page 15
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Chapter 12: A: Supply Chain Information Systems
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Sample Questions
Q1) Provide an example of a business transaction you recently conducted that took place with the help of the cloud.Describe the front and back office activities that would have been required to conduct the same business transaction in a pre-cloud business world.
Q2) The purpose of the execution and transaction processing supply chain activities are to record and retrieve data and execute and control physical and monetary flows.
A)True
B)False
Q3) An organization can use ________ as a repository to access documents or other files from anywhere in the world whenever they are needed.
Q4) Logistics information systems that support tactical planning efforts by allocating fixed logistics capacity in the best possible way given business requirements are known as:
A) decision support systems.
B) network design applications.
C) warehouse management and transportation execution systems.
D) warehouse and transportation planning systems.
Q5) What are the salient features of cloud computing?
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Chapter 13: Jitlean Production
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Sample Questions
Q1) A kanban can be:
A) a container.
B) a card.
C) a visual cue.
D) All of these can be kanbans.
Q2) In a two-card kanban system:
A) each box of finished goods has a move card so it can be sent to the next step.
B) each box of raw material has a production card so it can be made into finished goods.
C) a downstream station pulls finished material out of a production area.
D) demand for more raw materials pushes finished goods to the finished goods area.
Q3) An increase in the safety factor results in an increase in the amount of inventory in a kanban system.
A)True
B)False
Q4) The greater the demand,the more kanbans are needed.
A)True
B)False
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Chapter 14: Managing Projects
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Sample Questions
Q1) Refer to the scenario above.Which of these statements is BEST?
A) Only four of these activities have zero slack.
B) The late finish of D minus the late finish of C is less than the slack of B.
C) B's latest start plus its slack equals F's late finish.
D) The sum of the latest start times for activities A through E is less than the sum of the latest start times for F and G.
Q2) Crashing a project refers to the technique that minimizes completion time of the project.
A)True
B)False
Q3) Which of these needs does the Guide to the Project Management Body of Knowledge NOT serve?
A) It provides a common language for discussing project management issues.
B) It provides a blueprint for ISO certification of the project management process.
C) It identifies and disseminates generally accepted project management knowledge and practices.
D) It serves as a basic reference source for project management.
Q4) The actual work gets done during the ________ phase of a project.
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Chapter 15: Developing Products and Services
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Sample Questions
Q1) Safety and health issues over the product's projected life cycle are addressed by
Q2) Quality function deployment can be used to show linkages between customer requirements and product characteristics.
A)True
B)False
Q3) Customers are often brought in to lend their thoughts during the:
A) concept development phase.
B) planning phase.
C) design and development phase.
D) commercial preparation phase.
Q4) A revision to a drawing or design released by designers to correct a part is called a(n):
A) engineering change.
B) part mod.
C) tweak.
D) lock-in.
Q5) In ________,the supplier works with the customer to jointly design the product.
Q6) What is value analysis and how is it typically conducted?
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Q7) What are robust design,testability,and serviceability and how are they related?