Chapter 5 · Process Analysis

Chapter

5 / Process Analysis

TRUE/FALSE

1.  Process analysis is the documentation and detailed understanding of how work is performed and how it can be redesigned.

Answer: True

Reference: A Systematic Approach

Difficulty: Easy

Keywords: process, analysis

2.  The four core processes that merit thorough analysis are supplier relationship, new service/product development, order fulfillment, and service/product recovery.

Answer: False

Reference: A Systematic Approach

Difficulty: Moderate

Keywords: core, process, analysis

3.  An employee suggestion system can be an effective method for identifying processes that need improvement.

Answer: True

Reference: A Systematic Approach

Difficulty: Easy

Keywords: employee, suggestion, process

4.  The boundaries of the process to be analyzed are defined as the scale.

Answer: False

Reference: A Systematic Approach

Difficulty: Easy

Keywords: boundary, scope, process

5.  Performance measures that are established for a process are known as metrics.

Answer: True

Reference: A Systematic Approach

Difficulty: Easy

Keywords: metrics, measure

6.  Process improvement teams that focus on processes that cut across departmental boundaries have the silo mentality.

Answer: False

Reference: A Systematic Approach

Difficulty: Easy

Keywords: silo, team, process

7.  Once a process is identified, defined, evaluated, and redesigned, the benefits of the process analysis cycle are realized.

Answer: False

Reference: A Systematic Approach

Difficulty: moderate

Keywords: process, cycle

8.  Flow charts are effective for documenting and evaluating processes.

Answer: True

Reference: Documenting the Process

Difficulty: Easy

Keywords: flow, chart, document, process

9.  A diamond represents a yes/no decision in a flow chart.

Answer: True

Reference: Documenting the Process

Difficulty: Moderate

Keywords: diamond, flow, chart, decision

10.  A service blueprint is a flow chart of a service process that shows which of its steps has high customer contact.

Answer: True

Reference: Documenting the Process

Difficulty: Moderate

Keywords: service, blueprint, process

11.  Process charts trace the flow of information, customers, employees, equipment, or materials through a process.

Answer: False

Reference: Documenting the Process

Difficulty: Moderate

Keywords: process, chart, flow

12.  The best data analysis tool for recording which gas pump most customers use would be a checklist.

Answer: True

Reference: Evaluating Performance

Difficulty: Moderate

Keywords: data, analysis, checklist

13.  A histogram is a summarization of data measured on a yes-or-no basis.

Answer: False

Reference: Evaluating Performance

Difficulty: Moderate

Keywords: histogram, data

14.  The general principle that 80% of a company’s revenue is generated by 20% of its customers is known as the Pareto concept.

Answer: True

Reference: Evaluating Performance

Difficulty: Moderate

Keywords: Pareto, chart

15.  A scatter diagram is a graphical technique that shows whether two variables may be related.

Answer: True

Reference: Evaluating Performance

Difficulty: Moderate

Keywords: scatter, diagram, variables

16.  A fishbone diagram identifies which category is most frequently observed out of all the categories for which you have data.

Answer: False

Reference: Evaluating Performance

Difficulty: Moderate

Keywords: fishbone, diagram

17.  Data snooping is the acquisition of external benchmarking data even when the external organization has not authorized a formal benchmarking agreement.

Answer: False

Reference: Evaluating Performance

Difficulty: Moderate

Keywords: data, snooping

18.  Simulation is an act of reproducing the behavior of a process using a model that describes each step of the process.

Answer: True

Reference: Evaluating Performance

Difficulty: Moderate

Keywords: simulation, process, model

19.  A group of people who are knowledgeable about the process and its disconnects meets to propose ideas for change in a rapid-fire manner. Such a session is called a brainstorming session.

Answer: True

Reference: Redesigning the Process

Difficulty: Easy

Keywords: brainstorming, process, ideas

20.  The only people who can provide input to a brainstorming session are members of the design team.

Answer: False

Reference: Redesigning the Process

Difficulty: Easy

Keywords: brainstorming, design, team

21.  Brainstorming sessions can be effectively conducted on the Internet using software that allows one person to see another’s ideas and build on them.

Answer: True

Reference: Redesigning the Process

Difficulty: Easy

Keywords: brainstorming, Internet, software

22.  The bursar’s office at a large state school sends a team to the bookstore on campus to see how they handle customers and process payments. This is an example of functional benchmarking.

Answer: False

Reference: Redesigning the Process

Difficulty: Hard

Keywords: benchmarking, functional, internal

23.  Benchmarking by tracking the performance of a process over time is always available.

Answer: True

Reference: Redesigning the Process

Difficulty: Moderate

Keywords: benchmarking, process, time

24.  Benchmarking is a continuous, systematic procedure that measures a firm’s products, services, and processes against those of industry leaders.

Answer: True

Reference: Redesigning the Process

Difficulty: Moderate

Keywords: benchmarking, measure, leader

25.  Implementing a beautifully redesigned process completes the continuous monitoring and improvement process.

Answer: False

Reference: Managing Processes

Difficulty: Moderate

Keywords: process, implementation, managing

26.  A great job of flowcharting and benchmarking a process is of only academic interest if the proposed changes are not implemented.

Answer: True

Reference: Managing Processes

Difficulty: Moderate

Keywords: process, implementation

MULTIPLE CHOICE

27.  Process analysis focuses on:

a.  how work is actually done.

b.  who is responsible for the customer.

c.  the customer’s needs.

d.  the number of steps in between supplier and customer.

Answer: a

Reference: Process Analysis Across the Organization

Difficulty: Easy

Keywords: process, analysis, work

28.  Which of these is NOT a core process that managers would focus on for improvement opportunities?

a.  Supplier relationships

b.  New product/service development

c.  Order fulfillment

d.  Employee training

Answer: d

Reference: A Systematic Approach

Difficulty: Easy

Keywords: core, process, identify, opportunities

29.  A voluntary system by which employees submit their ideas on process improvements is used in the:

a.  scope definition phase of process analysis.

b.  process redesign phase of process analysis.

c.  performance evaluation phase of process analysis.

d.  opportunity identification phase of process analysis.

Answer: d

Reference: A Systematic Approach

Difficulty: Moderate

Keywords: system, suggestion, opportunity, identification

30.  A voluntary system by which employees submit their ideas on process improvements is called:

a.  process contribution.

b.  a suggestion system.

c.  a brainstorming session.

d.  a Pareto system.

Answer: b

Reference: A Systematic Approach

Difficulty: Easy

Keywords: system, suggestion, employee

31.  The step in process analysis that immediately follows the scope definition phase is the:

a.  document process phase.

b.  evaluate performance phase.

c.  redesign process phase.

d.  implement changes phase.

Answer: a

Reference: A Systematic Approach

Difficulty: Moderate

Keywords: scope, definition, process, document

32.  The step in process analysis that immediately follows the process documentation phase is the:

a.  define scope phase.

b.  evaluate performance phase.

c.  redesign process phase.

d.  implement changes phase.

Answer: b

Reference: A Systematic Approach

Difficulty: Moderate

Keywords: process, documentation, phase, performance

33.  The step in process analysis that immediately follows the performance evaluation phase is the:

a.  document process phase.

b.  define scope phase.

c.  redesign process phase.

d.  implement changes phase.

Answer: c

Reference: A Systematic Approach

Difficulty: Moderate

Keywords: performance, evaluation, redesign, process

34.  A systematic approach to process analysis includes the step:

a.  reengineering.

b.  integration.

c.  order fulfillment.

d.  define scope.

Answer: d

Reference: A Systematic Approach

Difficulty: Easy

Keywords: define, scope, process, analysis, systematic

35.  An examination of strategic issues such as possible gaps between a process’s competitive priorities and current competitive capabilities falls in the:

a.  document process phase of process analysis.

b.  evaluate performance phase of process analysis.

c.  redesign process phase of process analysis.

d.  identify opportunities phase of process analysis.

Answer: d

Reference: A Systematic Approach

Difficulty: Moderate

Keywords: identify, opportunities, strategic

36.  The resources that management assigns to improving or reengineering the process should:

a.  outweigh the consequences.

b.  match the process’s scope.

c.  be at risk for less time than the redesign takes.

d.  be less costly than the total downtime during redesign.

Answer: b

Reference: A Systematic Approach

Difficulty: Moderate

Keywords: resources, scope, process

37.  If a process under analysis is extensive and cuts across several departmental lines, it may benefit from forming a(n):

a.  brainstorming team.

b.  benchmarking team.

c.  steering team.

d.  implementation team.

Answer: c

Reference: A Systematic Approach

Difficulty: Moderate

Keywords: steering, team, process

38.  Performance measures such as average response times, repair times, and percent defective are referred to as:

a.  benchmarks.

b.  metrics.

c.  targets.

d.  tactics.

Answer: b

Reference: A Systematic Approach

Difficulty: Moderate

Keywords: metrics, measures, performance

39.  Gaps between actual and desired performance are termed:

a.  faults.

b.  metrics.

c.  opportunities.

d.  disconnects.

Answer: d

Reference: A Systematic Approach

Difficulty: Moderate

Keywords: gap, disconnect

40.  Once the root causes of performance gaps have been discovered, it is necessary to:

a.  shift from analytical thinking to creative thinking.

b.  shift from creative thinking to analytical thinking.

c.  form a benchmarking team.

d.  form a steering team.

Answer: a

Reference: Redesigning the Process

Difficulty: Moderate

Keywords: root, cause, analytical, creative

41.  Widespread participation in process analysis is essential not only because of the work involved but also because:

a.  employees tend to neglect their regular work duties, thus no one falls too far behind.

b.  it builds commitment.

c.  no one can analyze a process by himself.

d.  a silo mentality should prevail and this requires large numbers of workers.

Answer: b

Reference: A Systematic Approach

Difficulty: Moderate

Keywords: participation, commitment

42.  A flowchart traces the flow of:

a.  information through a process.

b.  customers through a process.

c.  equipment through a process.

d.  All of these can be traced through a process using a flow chart.

Answer: d

Reference: Documenting the Process

Difficulty: Moderate

Keywords: flow, chart, flowchart

43.  A flowchart created at the strategic level of an organization should show:

a.  core processes and their linkages.

b.  details of a process as bracketed by its scope.

c.  individual steps that may have been aggregated at a higher level of analysis.

d.  areas that are seen and unseen by the customer.

Answer: a

Reference: Documenting the Process

Difficulty: Moderate

Keywords: flow, chart, flowchart

44.  When a process is high in divergence, it is likely to have:

a.  few rectangle-shaped symbols.

b.  many rectangle-shaped symbols.

c.  few diamond-shaped symbols.

d.  many diamond-shaped symbols.

Answer: d

Reference: Documenting the Process

Difficulty: Moderate

Keywords: flow, chart, flowchart, divergence

45.  Cross-functional coordination is at particular risk where:

a.  there is low process divergence.

b.  there are handoffs in the process.

c.  functional silos exist.

d.  it is not possible to create a flow chart.

Answer: b

Reference: Documenting the Process

Difficulty: Moderate

Keywords: handoff, coordination, cross, functional

46.  An effective tool for showing steps of a service process with a high level of customer contact is a:

a.  Pareto chart.

b.  flow chart.

c.  service blueprint.

d.  check sheet.

Answer: c

Reference: Documenting the Process

Difficulty: Moderate

Keywords: service, blueprint, customer, tool

47.  The feature that service blueprints use to distinguish steps that are seen by the customer from those that are not seen by the customer is:

a.  separation using different pages.

b.  a line of visibility.

c.  the Mendoza line.

d.  a “C” and a “P.”

Answer: b

Reference: Documenting the Process

Difficulty: Moderate

Keywords: service, blueprint, customer, visibility

48.  A process chart activity that changes, creates, or adds something is a(n):

a.  operation.

b.  transportation.

c.  inspection.

d.  delay.

Answer: a

Reference: Documenting the Process

Difficulty: Easy

Keywords: process, chart, symbol

49.  A process chart activity that checks or verifies something but does not change it is a(n):

a.  operation.

b.  transportation.

c.  inspection.

d.  delay.

Answer: c

Reference: Documenting the Process

Difficulty: Easy

Keywords: process, chart, symbol

50.  Which one of the following statements concerning flow diagrams is NOT true?

a.  Flow diagrams can take many forms.

b.  It is helpful on flow diagrams to label each step with process measurements such as cost, capacity, or total elapsed time.

c.  Flow diagrams trace the flow of information, customers, equipment, employees, or materials through a process.

d.  The dotted line of visibility separates activities subcontracted from those done in-house.

Answer: d

Reference: Documenting the Process

Difficulty: Moderate

Keywords: flow, diagram

51.  Which one of the following groups of activities is likely to be shown on a process chart?

a.  Operation, inspection, delay

b.  Operation, capital intensity, flow strategy

c.  Transportation, material flow, physical layout

d.  Storage, delay, personnel involved

Answer: a

Reference: Documenting the Process

Difficulty: Moderate

Keywords: process, chart, operation, inspection, delay

52.  The five categories of activities (operation, transportation, inspection, delay, and storage) are used in which of the following methods of process analysis?

a.  Multiple-activity chart

b.  Process chart

c.  Capital budgeting

d.  Flow diagram

Answer: b

Reference: Documenting the Process

Difficulty: Moderate

Keywords: process, chart

53.  A process chart activity that occurs when something is put away until a later time is a(n):

a.  storage.

b.  transportation.

c.  inspection.

d.  delay.

Answer: a

Reference: Documenting the Process

Difficulty: Easy

Keywords: process, chart, symbol

54.  A professor can grade a quiz in 30 seconds. Over the course of an academic year he has 6 sections of a course with an average of 30 students with 10 quizzes in each section. If he is paid $40 an hour, how much is his annual quiz-grading labor cost to the university?

a.  $60

b.  $100

c.  $600