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A service operation by its very nature is a make-to-stock type of production process.

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The ratio of output to input is called ____________.

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productivity
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Utilization of a production process is the ratio of time that a resource is actually being used relative to the time it is available for use.

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Buffering in a production process refers to a storage area between stages of production activity where output of a stage is placed prior to being used in a "downstream" stage.

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Blocking in production processes is when activities in a stage must continue because there is no place to deposit completed items.

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A rectangle is conventionally used in a process flowchart to represent a task or operation.

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A process flowchart uses which of the following symbols to represent tasks or operations in a flow diagram?


A) Rectangle
B) Arrow
C) Inverted triangle
D) Diamond
E) A dashed line

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According to Little's law, which of the following ratios is used to find flow time?


A) Cycle time/Process time
B) Throughput time/Process velocity
C) Process velocity/Throughput time
D) Inventory/Throughput rate
E) Value-added time/Process velocity

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Which of the following production process terms best describes the situation when activities in a stage of production must stop because there is no work?


A) Blocking
B) Buffering
C) Starving
D) Buffer
E) Setup time

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Process velocity is the ratio of the total throughput time to the value added time.

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A process flowchart uses which of the following symbols to represent storage areas or queues in a flow diagram?


A) Rectangle
B) Arrow
C) Inverted triangle
D) Diamond
E) A dashed line

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Benchmarking refers to the practice of comparing the production metrics of one firm with the production metrics of another.

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Which of the following best describes the term "cycle time"?


A) Average time between completions of successive units
B) Ratio of the time a resource is activated over its use
C) Can be no more that 60 minutes
D) The same as utilization
E) The labor content of the item being measured

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An advantage of a make-to-stock process is which of the following?


A) It features rapid delivery of a standard product.
B) All units of output are unique.
C) It responds directly to customer orders.
D) It allows the firm to avoid inventory costs.
E) It combines the best features of other processes.

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To reduce process throughput time, you might try which of the following actions?


A) Outsource activities.
B) Change the sequence of activities.
C) Improve teamwork.
D) Reduce management interference.
E) Introduce incentive pay

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According to Little's law, which of the following can be used to estimate inventory?


A) Process time/Cycle time
B) Throughput rate × Flow time
C) Process velocity/Flow time
D) Set up time/Throughput rate
E) Value-added time/Process velocity

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One way to categorize a process is to determine whether it is a multiple-stage or a single-stage process.

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