Engineering Management
Pre-Test Questions
Course Introduction
Engineering Management is a multidisciplinary field that bridges the gap between engineering and business, equipping students with the skills necessary to effectively lead technical teams and manage engineering projects. The course covers topics such as project management, organizational behavior, decision-making processes, financial management, innovation, quality assurance, and strategic planning within an engineering context. Emphasis is placed on applying management principles to solve complex engineering problems, optimize processes, and successfully bring technical solutions to market while considering ethical, legal, and sustainability issues. Through case studies, collaborative projects, and real-world examples, students develop the analytical, leadership, and communication skills essential for successful careers in engineering management.
Recommended Textbook
OM 4th Edition by David Alan Collier
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23 Chapters
1572 Verified Questions
1572 Flashcards
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Page 2
Chapter 1: Goods, Services, and Operations Management
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Sample Questions
Q1) Service management skills would include all of the following except
A)accounting and finance
B)knowledge and technical expertise about operations
C)marketing and cross-selling
D)human interaction
Answer: A
Q2) Operations management is the only function by which managers can directly affect the value provided to all stakeholders - customers, employees, investors, and society.
A)True
B)False
Answer: True
Q3) Which of the following is not true regarding the differences between goods and services?
A)Demand for services is easier to forecast.
B)Customers participate in many services.
C)Services cannot be stored as physical inventory.
D)Patents do not protect services.
Answer: A
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3
Chapter 2: Value Chains
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Sample Questions
Q1) Global value chains face higher levels of risk and uncertainty, requiring more inventory and day-to-day monitoring to prevent product shortages.
A)True
B)False
Answer: True
Q2) Value chain integration requires consolidating information systems among suppliers, factories, distributors, and customers; managing the supply chain and scheduling factories; and studying new ways to use technology.
A)True
B)False
Answer: True
Q3) Explain a value proposition.Relate this to a customer benefits package of goods and services
Answer: A competitively dominant customer experience is often called a value proposition.A winning value proposition is one that meets the full set of customer needs, including price.The focus on value has forced many traditional goods-producing companies to add services to their customer benefit packages.
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Chapter 3: Measuring Performance in Operations
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Sample Questions
Q1) The balanced scorecard is designed to be linked to an organization's strategy.
A)True
B)False
Answer: True
Q2) Measuring and reporting performance results can be a motivator for many workers.
A)True
B)False
Answer: True
Q3) Any measure a firm chooses to use should provide the basis for making executive-level strategic decisions.
A)True
B)False
Answer: False
Q4) In choosing performance measures, an organization might consider all of the following criteria except
A)Is the measure actionable?
B)Is the measure based on behavioral performance?
C)Is the measure important to customers?
D)Does the measurement support the firm's mission?
Answer: B
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Chapter 4: Operations Strategy
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Sample Questions
Q1) Explain the concept of search, experience, and credence attributes.
Q2) Which one of the following statements in the Lawn Care Company (LCC) case study is true?
A)The LCC already had experience and capabilities in the residential lawn application service and market segment, and was considering using this expertise to enter the golf and park market segment.
B)The gross margin on grass seed and fertilizer were higher than on the lawn application service.
C)Service management skills play a major role in the LCC current strategy and vision of the business.
D)The order winner for the current strategy at LCC is high physical goods quality.
Q3) Families of goods or services having similar characteristics or methods of creation are called
A)Core competencies
B)Corporate strategy
C)Strategic business units
D)Functional strategy
Q4) What do we mean by core competencies?
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Chapter 5: Technology and Operations Management
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Sample Questions
Q1) Which of the following would not be an activity a return facilitator handles?
A)recommending a new supplier
B)repairing the manufactured good
C)requesting money back for a customer
D)invoking the service guarantee
Q2) Information technology has been equally important to business-to-business, business-to-customer, and customer-to-customer interactions.
A)True
B)False
Q3) CAD/CAE systems are broader in scope than CIM systems.
A)True
B)False
Q4) From the perspective of operations management, all manufacturing organizations, regardless of their size or type of product, face similar issues regarding technology.
A)True
B)False
Q5) Explain the concept of ERP - Enterprise Resource Planning Systems.
Q6) Discuss the role of technology on productivity.
Q7) Differentiate between hard technology and soft technology.
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Chapter 6: Goods and Service Design
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Sample Questions
Q1) Reliability does not apply to services processes.
A)True
B)False
Q2) In the Taguchi loss function, as one deviates further from the target value, the loss increases in a linear fashion.
A)True
B)False
Q3) Which of the following is not a principal element in service encounter design?
A)Technology and information support systems
B)Customer contact behavior and skills
C)Service provider selection, development and empowerment
D)Service recovery and guarantees
Q4) Explain the concept of Design for Manufacturability (DFM).
Q5) If a redundant component is added to a system, the overall system reliability
A)will decrease
B)will increase
C)will stay the same
D)will double
Q6) Explain the basic principles of Quality Function Deployment (QFD).Also, discuss the advantages of using this methodology.
Page 8
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Chapter 7: Process Selection, Design, and Analysis
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Sample Questions
Q1) What is the implied service rate at a bank teller's window if demand is 26 customers per hour and the bank staffs 3 tellers with an average utilization of 80%?
Q2) A(n) ____ is a group of ____ needed to create and deliver an intermediate or final output.
A)Process; value chains
B)Activity; tasks
C)Task; activities
D)Activity; processes
Q3) Using the Service Positioning Matrix, a limited number of customer pathways and highly repeatable service encounter activity sequences would best relate to
A)Being below the diagonal
B)Continuous flow
C)Customer routed
D)Provider routed
Q4) As one moves up the hierarchy of work, the total number of tasks that must be coordinated becomes larger.
A)True
B)False
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Chapter 8: Facility and Work Design
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Sample Questions
Q1) All of the following are true regarding assembly lines except A)Lower cost
B)Only one model can be assembled on a line
C)Makes good affordable to mass markets
D)Used in services,e.g., insurance policies and sorting mail
Q2) Describe approaches used for process layout design.
Q3) A ____ layout is an arrangement based on the sequence of operations that are performed during the manufacturing of a good or the delivery of a service.
A)Product
B)Process
C)Cellular
D)Fixed position
Q4) The facility layout in a library would most likely be a process layout.
A)True
B)False
Q5) Discuss the advantages and disadvantages of utilizing virtual teams.
Q6) Cycle time is related to the output rate and the available time to produce output.
A)True
B)False
Page 10
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Chapter 9: Supply Chain Design
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Sample Questions
Q1) Which is true regarding a responsive supply chain?
A)Demand is stable and predictable.
B)Product life cycles are short and change often because of innovation.
C)Customers require standardization.
D)Contribution margins are low.
Q2) The center-of-gravity method takes all the following into account except
A)Location of facilities and markets
B)Demand
C)Transportation costs
D)Service objectives
Q3) A pull system
A)requires high levels of finished goods inventory
B)relies heavily on accurate sales forecasts
C)waits for customer orders
D)necessitates standardized products
Q4) The center-of-gravity model minimizes the weighted distance between the facility to be located and its supply and demand points.
A)True
B)False
Q5) Explain the difference between a supply chain and a value chain.
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Chapter 10: Capacity Management
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Sample Questions
Q1) The Theory of Constraints is focused on eliminating all bottlenecks in a process.
A)True
B)False
Q2) An order fulfillment process normally operates two shifts a day, five days per week.Under normal conditions, 380 orders can be processed per shift.What is the daily capacity?
Q3) An organization that would typically use a revenue management system is
A)Computer manufacturer
B)Fast food restaurant
C)Car rental company
D)Package delivery service
Q4) Long setup times increase capacity and improve flexibility.
A)True
B)False
Q5) An assembly line normally operates two shifts a day, five days per week.Each shift can produce 475 assemblies.What is the weekly capacity?
Q6) Constraints determine the throughput of a facility.
A)True
B)False
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Chapter 11: Forecasting and Demand Planning
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Sample Questions
Q1) An R<sup>2</sup> of 0.80 means
A)80% of the variability in the independent variable is explained by the dependent variable
B)80% of the variability in the dependent variable is explained by the independent variable
C)80% of the variability in the dependent variable is not explained by the independent variable
D)Multiple regression was used
Q2) Repeatable periods of ups and downs over short periods of time are called ____.
A)Trends
B)Seasonal patterns
C)Cyclical patterns
D)Irregular variation
Q3) What is a time series, and what types of characteristics typically make up time series?
Q4) Seasonal patterns can occur over the weeks during a month, over days during a week, or hours during a day.
A)True
B)False
Q5) Define forecast error and describe ways that it is measured.
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Chapter 12: Managing Inventories
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Sample Questions
Q1) Discuss two types of stockouts.
Q2) Safety stock inventory is an additional amount of inventory kept over and above the average amount required to meet demand during the lead time.
A)True
B)False
Q3) Demand that is stable over time is called ____.
A)Static
B)Dynamic
C)Stochastic
D)Deterministic
Q4) Maintaining large stocks of inventory is a requirement in today's supply chains in order to improve profitability.
A)True
B)False
Q5) Inventory holding costs can be accurately measured by accounting departments.
A)True
B)False
Q6) Provide some examples of when the single period inventory model is applicable.
Q7) What are the four categories of inventory costs?
Page 14
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Chapter 13: Resource Management
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Sample Questions
Q1) Lot sizing is the process of using dependent demand logic to calculate the quantity and timing of orders for all subassemblies and components that support the production of end items.
A)True
B)False
Q2) Which of the following is not correct regarding aggregate planning?
A)Large number of alternatives
B)Good solutions by trial-and-error method
C)Seasonal fluctuations in demand
D)Costs are sunk and irrelevant
Q3) A bill of materials characterizes the structure of dependent demand among all items that comprise a finished good.
A)True
B)False
Q4) Which of the following is not an aggregate planning decision option?
A)Pricing and promotions
B)Subcontracting
C)Layoffs
D)Building a new plant
Q5) What are the components of an MRP record?
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Chapter 14: Operations Scheduling and Sequencing
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Sample Questions
Q1) Triage by nurses in an emergency room would be an example of A)Scheduling
B)Sequencing
C)Appointments
D)Shortest-processing-time rule
Q2) The numerical difference between the completion time and the due date is called
A)Flow time
B)Lateness
C)Makespan
D)Tardiness
Q3) Scheduling refers to determining the order in which jobs or tasks are processed.
A)True
B)False
Q4) Differentiate between scheduling and sequencing.
Q5) Sequencing is not as much of a concern when several activities use a common resource.
A)True
B)False
Q6) Explain why any sequence chosen in the single-machine scheduling problem will not change makespan time.
Page 16
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Chapter 15: Quality Management
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Sample Questions
Q1) ISO 9000 is best used by firms with mature quality systems as a means of refining their quality practices.
A)True
B)False
Q2) The GAP model recognizes five ways to mis-specify and mismanage the creation and delivery of high levels of quality.Describe each of the five problem areas (GAPS).
Q3) Which of the following describes the quality definition of fitness for use?
A)Perfection and consistency in goods and service quality
B)Doing it right the first time
C)Conforming to design specifications
D)The ability of a good or service to meet customer needs
Q4) Cause-and-effect diagrams would help most in which phase of the DMAIC problem-solving approach?
A)Define
B)Measure
C)Analyze
D)Control
Q5) Define poka-yoke and provide some examples.
Q6) Discuss Kaizen and how it differs from a Kaizen Blitz.
Page 17
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Chapter 16: Quality Control and Spc
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Sample Questions
Q1) A production process is sampled 24 times with a sample size of 6 yields an overall mean of 25.2 and an average range of 0.8.Determine the control limits for the x-bar and R charts.
Q2) Both the p-chart and the c-chart use variable data.
A)True
B)False
Q3) Which of the following is not related to a continuous metric?
A)Measured as the degree of conformance to a specification
B)x-bar and R charts
C)p-chart
D)Time
Q4) The goal of statistical process control (SPC) is to help identify and eliminate unwanted causes of variation.
A)True
B)False
Q5) A manufacturer inspected 40 circuit boards and found a total of 640 defects.If the company wants to use SPC to control the manufacturing process by monitoring the number of defects per circuit board, what type of chart should they use and what should the control limits be?
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Chapter 17: Lean Operating Systems
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Sample Questions
Q1) A company is using Kanban containers.There are two adjacent work centers, a downstream (using) and an upstream (producing) one.The using work center has a production rate of 200 parts per day and each container holds 20 parts.It takes .5 days for a container to make the entire cycle from the time it leaves the upstream center until it is returned, filled with production, and leaves again.The manager wants a safety factor (\(\alpha\)) of 20%.The company is interested in reducing the number of containers.
a.What is the number of containers currently in use?
b.If the number of parts a container holds is increased to 24 parts, how many containers are needed?
c.If the company wants the number of containers (holding 20 parts each) to be 5, what must the safety factor become?
Q2) Lean operating systems seek to apply the principles of continuous flow to the production of discrete parts by reducing batch size, ideally to a size of one.
A)True
B)False
Q3) Define lean enterprise and the four principles of lean operating systems.
Q4) Discuss the differences between lean production and Six Sigma.
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Chapter 18: Project Management
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Sample Questions
Q1) List at least six principal factors (contributors) to project success.
Q2) Because the preparation of annual reports is done on a repeating basis, project management techniques are not appropriate.
A)True
B)False
Q3) Which of the following is incorrect regarding time/cost trade-offs?
A)The relationship between time and cost is proportional
B)Some activities cannot be crashed
C)The minimum cost can be found by crashing all activities as much as possible
D)Crashing priority is based on the amount of uncertainty in activity times
Q4) All activities on the critical path have a zero slack time.
A)True
B)False
Q5) Explain the three time estimates used to characterize uncertainty of activity times in the Program Evaluation and Review Technique (PERT) procedure.
Q6) Strong leadership is an impediment to project management success because of the team-based nature of most projects.
A)True
B)False
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Chapter 19: Work Measurement, Learning Curves, and Standards
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Q1) The manager at a sewing factory uses a piece rate pay system.She has just received an order for 600 dresses from the discount house downtown.She is trying to figure out what her costs are for the project.She has conducted a time study and found operations take this long:
2 minutes to sew one sleeve
3 minutes to sew body of the dress
3.5 minutes to hem all unfinished edges
1 minute to attach the collar
3 minutes to attach all buttons
The workers must sit idle while they wait for supplies on the conveyor belt for an average of 30 seconds.Their performance rating is equal to one.She pays the workers $6.00 per hour.
a.What is the allowance factor for the operation?
b.What is the labor standard (in minutes) per dress?
c.What is the labor cost per dress?
d.What is the labor cost for the entire order of 600 dresses?
Q2) For a work sampling study, there is a 95% probability that the processing time of an activity has an error of less than 0.06 minutes.The best estimate we have for "p" is 0.30.Determine the size sample that should be used for this work sampling study.
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Chapter 20: Queuing Analysis
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Sample Questions
Q1) For the multiple-server queuing model to apply, k\(\mu\) > \(\lambda\).
A)True
B)False
Q2) A local hamburger chain is considering adding a drive-through window.They estimate that during the dinner hour, customer arrival rate will average 18 per hour and follow a Poisson distribution.Service times during this same period are estimated to follow an exponential distribution with a mean of 24 customers per hour.
a.Determine the probability that the service facility (drive-through window) is idle.b.Determine the probability of four vehicles in the system.
c.Determine the average number of vehicles waiting for service.
d.Determine the average number of vehicles in the system.
e.Determine the average time a vehicle spends waiting for service.
f.Determine the average time a vehicle spends in the system.
g.Determine the probability that an arriving vehicle has to wait for service
Q3) Discuss three categories of information necessary to analyze a waiting line.
Q4) With a restaurant as an example, discuss the psychological methods used to affect customers' perceptions of waiting (to be seated, to be served, etc.).
Q5) Describe at least four queue disciplines.
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Chapter 21: Modeling Using Linear Programming
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Sample Questions
Q1) A Singapore company manufactures 50-inch and 75-inch rear projection television sets.Each 50-inch set contributes $200 to profits and each 75-inch set contributes $475 to profits.The company has purchase commitments for 500 50-inch sets and 200 75-inch sets for the next month so they want to make at least that many.Although they think they can sell all the 50-inch sets that they could currently make, they do not think they can sell more than 375 75-inch sets.Their factory capacity allows them to make only 975 sets of both sizes total.They want to know how many of each type to make so as to maximize profits.
a.What is the objective function for this LP problem?
b.What are the constraints involving X1, assuming that X1 corresponds to 50-inch TV sets?
c.What is the optimal solution point for this problem?
d.What is the optimal value of the objective function?
Q2) Explain the essence of a blending problem.
Q3) Solutions to a linear programming model that satisfy all constraints are referred to as optimal.
A)True
B)False
Q4) Explain the essence of a transportation problem.
Q5) What characterizes a linear function?
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Chapter 22: Simulation
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Q1) The queuing model operating characteristics formula only characterizes short-term average results and, in many practical situations, managers are interested in understanding long-term dynamic behaviors of queuing systems
A)True
B)False
Q2) Which is correct regarding a simulation model for inventory management?
A)Only demand can vary
B)The goal is to minimize waiting time
C)Looks at a combination of order quantity and reorder point
D)Does not allow backorders of stockouts
Q3) Under what situation would an analytical queuing model be used? When would a simulation model be used?
Q4) Face validity involves asking people familiar with the real system to evaluate the assumptions and logic of a model.
A)True
B)False
Q5) Differentiate and explain the importance of verification and validation.
Q6) Discuss a simulator.How does it differ from simulation software such as ProcessModel?
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Chapter 23: Decision Analysis
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Q1) Considering decision trees, which of the following statements is not correct?
A)A decision tree is a graphical schematic of the logical order with which decisions are made when events occur
B)Decision trees are useful for more complex business decisions
C)Working forward through the decision tree, the expected monetary value of each event node is computed by first weighting possible payoffs by their changes of occurrence
D)Expected value calculations can be made directly on the tree to arrive at the best decision
Q2) Which of the following is not a similarity between a decision matrix and a decision tree?
A)Time
B)States of nature
C)Alternatives
D)Probabilities
Q3) The expected value concept weighs each payoff for an alternative in proportion to the likelihood that the payoff will occur.
A)True
B)False
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