BUS 3500 MIDTERM EXAM

Production and Operations BUS 3500 Midterm Examination
Total: 120 points Your Score: ______________
Student: __________________________________________________________________________________
I. True or False (20 points). Please mark “A” for true and “B” for false on your scantrons. Questions 11-20 have been taken from Test 1.
1. In a process map, a circle represents a step or activity in the process.
Answer: FALSE
Diff: 1 Page Ref: 77
Reference: Mapping Business Processes
Keywords: map, process, symbol, circle

2. The primary focus of a swim lane process map is to depict flows of objects, information, and money.
Answer: FALSE
Diff: 1 Page Ref: 80
Reference: Mapping Business Processes
Keywords: swim lane map, process map, flow

3. Your university sends a contingent of top-ranking officials to Las Vegas hotels to study ways to improve dormitory living conditions. This is an example of process benchmarking.
Answer: TRUE
Diff: 2 Page Ref: 85
Reference: Managing and Improving Business Processes
Skill: AACSB: Reflective Thinking
Keywords: process, benchmarking

4. An R chart is used to track how much the individual observations within a sample vary.
Answer: TRUE
Diff: 1 Page Ref: 121
Reference: Statistical Quality Control
Keywords: R chart, sample, vary

5. Appraisal costs can occur when a company has NOT produced any defective items.
Answer: TRUE
Diff: 1 Page Ref: 111
Reference: Total Cost of Quality
Keywords: appraisal, cost, quality

6. Money spent training an employee how to do the job mistake-free is an example of an appraisal cost.
Answer: FALSE
Diff: 2 Page Ref: 111
Reference: Total Cost of Quality
Skill: AACSB: Reflective Thinking
Keywords: prevention, cost, quality

7. Company A spends $250 million purchasing materials and subassemblies that it processes and sells for a total