Exam 7: Process Modeling, Process Improvement, and ERP Implementation

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Question 21

Multiple Choice

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In value analysis,which of the following activities is defined as a value for which the customer is willing to pay?

A) Real value
B) Business value
C) No value
D) Value add

E) B) and C)
F) A) and D)

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Question 22

Essay

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The order arriving in the Manufacturing Department triggers the creation of a preliminary work order.To create this preliminary work order,the department gets data from (a)the sales order,(b)their current production plan file (a window on the plant manager's PC),(c)their current capacity requirement plan (another paper document),and (d)their history of prior work file which is on the plant manager's PC's hard drive and read off the computer screen.An estimate of time,labor,and overhead is manually prepared and entered into a preliminary work order form,which is a multi-part paper form.One copy of the form is sent to the Procurement Department,one copy sent to the Sales Department which is filed by sales order number in a file cabinet,and the Manufacturing department files one copy of the report by order date in the cabinet.The prior work file is not yet updated since the bars have yet to be manufactured.