Choose all statements that are true about process.

a. Bottleneck is always the resource with the smallest capacity

b. The utilization of a bottleneck is always 100%
c. An increase in process capacity always leads to an increase in flow rate
d. For a capacity-constrained process, the flow rate is always equal to the process
capacity
e. Average inventory of a process always increases with its flow rate

Solution:
a. Bottleneck is always the resource with the highest utilization
b. While it is often high, it may not always be 100% if there are variations in
demand or if the process has idle time due to other factors.
c. The relationship between process capacity and flow rate can be influenced
by various factors such as demand, process constraints, and system design.
d. In a capacity-constrained process, the flow rate is indeed limited by the
process capacity. The flow rate cannot exceed the capacity of the bottleneck
or the overall process capacity.
e. it is also possible to improve the flow rate while simultaneously reducing
the average inventory through process optimization and lean principles.

Choose all statements that are true about process.

a. Bottleneck is always the resource with the highest utilization
b. The utilization of a bottleneck is always 100%
c. An increase in process capacity always leads to an increase in flow rate
d. For a demand-constrained process, the flow rate is always equal to the
process capacity
e. Average inventory of a process always increases with its flow rate

Solution:
a. Bottleneck is always the resource with the highest utilization
b. While it is often high, it may not always be 100% if there are variations in demand
or if the process has idle time due to other factors.
c. The relationship between process capacity and flow rate can be influenced by
various factors such as demand, process constraints, and system design.
d. In a demand-constrained process, the flow rate is limited by the demand for the
product or service, rather than the process capacity. The process capacity
represents the maximum output the process can achieve, but the actual flow rate
will be dictated by the demand from customers or downstream processes.

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e. it is also possible to improve the flow rate while simultaneously reducing the
average inventory through process optimization and lean principles.

2
At Burger King, the manager purchases 5,000 kg of meat every week. In their cold
storage, there is 2,500 kg of meat on average. How long is the meat stored in the cold
storage before it is served to customers?
a. Less than 2 days
b. Between 2 days and 3 days
c. Between 3 days and 4 days
d. Between 4 days and 5 days
e. More than 5 days

Solution:

Little's Law : Average Inventory (I)= Flow Rate (R )* Average Flow Time (T )

2,500=5,000*T
T=0.5 week=3.5 days

At Burger King, the manager purchases 5,000 kg of meat every week. In their cold
storage, there is 1,000 kg of meat on average. How long is the meat stored in the cold
storage before it is served to customers?
a. Less than 2 days
b. Between 2 days and 3 days
c. Between 3 days and 4 days
d. Between 4 days and 5 days
e. More than 5 days

Solution:

Little's Law : Average Inventory (I)= Flow Rate (R )* Average Flow Time (T )

1,000=5,000*T
T=0.2 week=1.4 days

3
Choose all the statements that are true.

a. If the process is in statistical control, the process does not show any variation
in outcomes.
b. If the process is out of control, there exist assignable variations in the process
with high probability.
c. X-bar chart is useful when testing whether the dispersion of distribution
changes over time.
d. P-chart is useful in detecting assignable variation in the weight of B.L.T.
Sandwich in Subway (the fast food restaurant).
e. Assignable variation results from factors that are external to normal operation
of a process.

Solution:
a. Variation can occur in an in-control process but does not exceed the any of
the limits of the control chart.
b. The limits of the control chart are created based on a normal process, which
means that the common-cause variations are usually included already. An out-
of-control is usually due to assignable variations.
c. X-bar chart is used to measure the mean instead of dispersion.
d. P-chart is used to measure proportion instead of value alone (e.g., weight).
e. Assignable variation arises from external factors, whereas common-cause
variation is inherent in the process

Choose all the statements that are true.

a. If the process is in statistical control, the process does not show any
variation in outcomes.
b. If the process is out of control, there exist assignable variations in the
process with high probability.
c. X-bar chart is useful when testing whether the mean of distribution
changes over time.
d. P-chart is useful in detecting assignable variation in the weight of B.L.T.
Sandwich in Subway (the fast food restaurant).
e. Common-cause variation results from external factors that are external to
normal operation of a process.

Solution:
a. Variation can occur in an in-control process but does not exceed the any of
the limits of the control chart.

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 b. The limits of the control chart are created based on a normal process, which
means that the common-cause variations are usually included already. An out-
of-control is usually due to assignable variations.
c. X-bar chart is used to measure the change in the mean (rather than dispersion).
d. P-chart is used to measure proportion instead of value alone (e.g., weight).
e. Assignable variation arises from external factors, whereas common-cause
variation is inherent in the process

The weight of a box of cereal is variable, but the firm would like to ensure that the
weight is between 98g and 104g. Currently, the average weight is 100g and the standard
deviation is 2g. Under what situation does the process capability index increase?
a. The average weight is increased by 2g, while the standard deviation
remains the same
b. The average weight is decreased by 1g, while the standard deviation
remains the same
c. The average weight is increased by 1g, and the standard deviation is
increased by 1g
d. The average weight is increased by 2g, while the standard deviation is
decreased by 1g
e. None of these increase the process capability index

Solution:
100−98 104−100 1
The process capability index of the original process: 𝐶𝑝 = min ( 2×3 , 2×3 ) = 3
102−98 104−102 1
a. 𝐶𝑝 = min ( , )=3
2×3 2×3
99−98 104−99 1
b. 𝐶𝑝 = min ( , )=6
2×3 2×3
101−98 104−101 1
c. 𝐶𝑝 = min ( , )=3
3×3 3×3
102−98 104−102 2
d. 𝐶𝑝 = min ( , )=3
1×3 1×3
Thus, the answer is d.

The weight of a box of cereal is variable, but the firm would like to ensure that the
weight is between 98g and 104g. Currently, the average weight is 102g and the standard
deviation is 2g. Under what situation does the process capability index increase?
a. The average weight is decreased by 2g, while the standard deviation
remains the same
b. The average weight is increased by 1g, while the standard deviation
remains the same

5
 c. The average weight is decreased by 1g, while the standard deviation is
increased by 1g
d. The average weight is decreased by 2g, while the standard deviation is
decreased by 1g
e. None of these increase the process capability index

Solution:
102−98 104−102 1
The process capability index of the original process: 𝐶𝑝 = min ( , )=3
2×3 2×3
100−98 104−100 1
a. 𝐶𝑝 = min ( , )=3
2×3 2×3
103−98 104−103 1
b. 𝐶𝑝 = min ( , )=6
2×3 2×3
101−98 104−101 1
c. 𝐶𝑝 = min ( , )=
3×3 3×3 3
100−98 104−100 2
d. 𝐶𝑝 = min ( , )=3
1×3 1×3
Thus, the answer is d.