Industrial Engineering
Midterm Exam
Course Introduction
Industrial Engineering is a multidisciplinary field that focuses on optimizing complex systems, processes, and organizations by integrating people, materials, information, equipment, and energy. The course introduces key concepts such as systems thinking, process analysis, operations research, quality control, supply chain management, and human factors engineering. Students learn how to design, improve, and implement efficient and productive methods to streamline operations in manufacturing and service industries. Emphasis is placed on the use of mathematical models, statistical tools, and computer-based approaches to solve real-world industrial problems, aiming to enhance productivity, reduce costs, and improve overall organizational performance.
Recommended Textbook
Managing Operations Across the Supply Chain 2nd Edition by Morgan Swink
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527 Verified Questions
527 Flashcards
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Chapter 1: Introduction to Managing Operations Across the Supply Chain
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Sample Questions
Q1) Johnson Company makes widgets, which it then sends to Smith Company. Smith Company puts the widgets in packages. Smith Company is considered by Johnson to be a:
A)Critical customer.
B)Upstream product supplier.
C)Aftermarket supplier.
D)Downstream product supplier.
Answer: D
Q2) Operations managers answer questions of what, how, when, where, and who by defining both the ___________ and _____________ aspects of the operations management system.
A)Financing and capacity
B)Marketing and delivery
C)Structural and infrastructural
D)Production and accounting
Answer: C
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Page 3
Chapter 2: Operations and Supply Chain Strategy
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Sample Questions
Q1) You are an upper-level manager in a firm. You believe that corporate objectives are not effectively disseminated throughout the organization and that line-level managers do not take them into account in their decision making. Which of the following would best help you to try to correct this problem?
A)Strategic profit model.
B)Balanced scorecard model.
C)Maslow's needs model.
D)SCOR model.
Answer: B
Q2) Which of the following is the most appropriate definition of a core capability?
A)A set of products unique to a firm.
B)Technical capabilities of a firm.
C)Reputation.
D)Production/design processes unique to the firm.
Answer: D
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Chapter 3: Managing Processes and Capacity
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Sample Questions
Q1) Make/buy/subcontract is typically considered at what time horizon when doing capacity planning?
A)Short-term
B)Medium-term
C)Long-term
D)It is not part of the capacity planning process.
Answer: B
Q2) If a company can eliminate all sources of variance in a process:
A)It will be able to operate at maximum capacity at all times.
B)There will be no constraints in the process.
C)Continuous improvement will not be necessary.
D)None of these are true.
Answer: D
Q3) Little's Law suggests that the key to increased throughput is:
A)Shorter flow times.
B)Fewer defects.
C)Eliminating waste.
D)Increased inspection.
Answer: A
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Page 5
Chapter 3: Extension: Process Mapping and Analysis
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Sample Questions
Q1) The principles of process improvement suggest that an effective, efficient process:
A)Maximizes the number of sequential activities and minimizes the number of parallel ones.
B)Eliminates all non-value-added steps.
C)Minimizes the number of entry points of a workpiece into the process.
D)Minimizes reliance on departments outside of manufacturing.
Q2) You, as a supply chain analyst, have been approached by the vice president of supply chain operations to come up with a recommendation for improving the throughput time for the manufacture of WidgetA. You quickly realize that you need a process map before you proceed. What is the first step you should undertake to map the process?
A)Draw a detailed schematic of the inputs and outputs of the process in question.
B)Identify the desired outcomes of the process.
C)Analyze the process and prioritize opportunities for improvement.
D)Document the existing process (the "current state" map).
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Chapter 4: Productprocess Innovation
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Sample Questions
Q1) Overall, it is clear that well-managed innovation projects:
A)Apply only to manufacturing firms.
B)Increasingly involve input from multiple functions in a company.
C)Should always be executed sequentially.
D)All of these.
Q2) In conducting a failure modes effects analysis, the following data were developed for three modes Mode 1: Severity = 5, Occurrence = 2, and Undetectability = 7
Mode 2: Severity = 3, Occurrence = 6, and Undetectability = 5
Mode 3: Severity = 7, Occurrence = 2, and Undetectability = 4
Which has the highest risk?
A)Mode 1
B)Mode 2
C)Mode 3
D)Mode 1 and Mode 2 are equal in having highest risk
Q3) An advantage of "early supplier involvement" is that it:
A) Generally leads to higher-quality products.
B) Decreases time to launch new products.
C) Avoids the financial risks of development.
D) A and B.
E) All of these.
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Chapter 5: Manufacturing and Service Process Structures
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Sample Questions
Q1) Which of the following is NOT considered in the service process matrix?
A)Customization
B)Volume
C)Customer interaction
D)Labor intensity
Q2) A common goal when designing a functional layout is to:
A)Ensure materials arrive on schedule.
B)Reduce the time and cost of moving people and materials between departments.
C)Avoid downtime at any workstation.
D)Balance the flow of materials through the process.
Q3) If you were developing a service blueprint, how would you classify "delivery of gasoline to a service station"?
A)Support processes
B)Physical evidence
C)Back-office/invisible contact employee actions
D)Front-office/visible contact employee actions
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8
Chapter 6: Managing Quality
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Sample Questions
Q1) An application of the DMAIC process to product design is known as:
A)Design for Six Sigma.
B)Design for Quality.
C)Quality Function Deployment.
D)None of these answers are correct.
Q2) The Plan-Do-Check-Act cycle is best defined as:
A)A rigorous procedure for strategic planning.
B)A method used to guide problem identification and solution.
C)A method first proposed by Joseph Juran.
D)All of these statements apply to the definition.
Q3) At the heart of the Six Sigma program is a five-step process called D-M-A-I-C. These letters denote a major activity that must be completed to achieve the objectives of Six Sigma. These activities are:
A)Define, Measure, Analyze, Improve, Control.
B)Define, Measure, Analyze, Inquire, and Compare.
C)Define, Measure, Analyze, Involve, and Cost.
D)Define, Measure Analyze, Improve, and Compare.
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Chapter 6: Extension: Quality Improvement Tools
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Sample Questions
Q1) The objective of statistical process control (SPC) is to:
A)Determine whether a batch of raw materials should be accepted or rejected.
B)Determine whether a batch of finished goods should be accepted or rejected.
C)Detect assignable cause variations versus normal random variations in the process.
D)Identify variable versus attribute measures.
Q2) Forty samples of 100 are taken, with the total number of defective units being 150. What is the lower control limit for the three sigma (z = 3) p-chart?"
A)0.000
B)0.0190
C)0.0375
D)0.0570
Q3) We are experiencing a problem where a process keeps shifting over time. If we were to use a histogram to collect and display the resulting data, what type of shape would it most likely display?
A)Bell (normal) distribution
B)Plateau-shaped distribution
C)Bimodal distribution
D)Skewed distribution
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Chapter 7: Managing Inventories
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Sample Questions
Q1) Jones Manufacturing Inc. purchases a component from a Chilean supplier. The demand for that component is exactly 70 units each day. The company is open for business 250 days each year. When the company reorders the product, the lead time from the supplier is exactly 10 days. The product costs $14.00. The company determined that its inventory carrying cost is 20 percent. The company's order cost is $30.00. If the company decides to order 1,750 units each time it places an order, what will be the total annual cost of this policy? (Do not include the product cost in your answer.)
A)$1,500
B)$2,400
C)$2,750
D)$3,400
Q2) Alpha Company places 10 orders per year with its supplier. Each order is for an amount exactly equal to the EOQ. Alpha's order cost has been determined to be $50 per order. Alpha carries no safety stock at all. What is Alpha's annual inventory carrying cost?
A)Cannot be determined without further information
B)$50
C)$250
D)$500
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Chapter 8: Lean Systems
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Sample Questions
Q1) In which operational setting has lean/just-in-time experienced the lowest levels of acceptance/implementation?
A)Manufacturing
B)Services
C)Across the supply chain
D)Turbulent business settings
Q2) Lean systems applications have found the most acceptance and adoption in:
A)Service firms.
B)Entire supply chains.
C)Design activities.
D)Manufacturing firms.
Q3) Which of the following would you NOT expect to find in a company attempting to implement lean/just-in-time production?
A)Emphasis on flexible, cross-trained workers
B)Inspections after each piece is produced
C)Frequent changeovers from one product to another
D)Emphasis on preventive maintenance for equipment
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12
Chapter 9: Customer Service Management
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Sample Questions
Q1) With respect to lead-time performance, most customers would prefer which of the following from a supplier?
A)A consistent three-day lead time
B)A lead time that averages three days with a range of one to four days
C)A lead time that averages two days with a range of one to four days
D)All of these are equally preferable.
Q2) Anthony Company has analyzed its customer base and realizes that it has a few customers who provide both high revenue and high profitability. This suggests that the appropriate commitment to those customers would be:
A)Customer success.
B)Review reason for doing business.
C)Good basic customer service.
D)Customer satisfaction.
Q3) Commitment to "customer success" is likely the best approach for a firm to use with:
A)All of its customers.
B)Customers who represent a small source of revenue for the firm.
C)Customers who have high expectations.
D)None of these.
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13
Chapter 10: Sourcing and Supply Management
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Sample Questions
Q1) The process of understanding how a firm is spending its money and with which suppliers is called:
A)Strategic sourcing.
B)Make or buy analysis.
C)Market analysis.
D)Spend analysis.
Q2) Advanced Manufacturing Company is evaluating two suppliers for a component sourcing. After much internal discussion, AMC's management has determined that the critical factors in choosing suppliers are: quality, delivery, price, and service. Further, management has rated the importance of these factors as 0.4, 0.3, 0.2, and 0.1, respectively. On a scale of 1 to 5, Supplier A is rated at 5, 3, 3, and 3, respectively. Supplier B's ratings are 4, 4, 3, and 4. Which supplier has the better weighted score?
A)Supplier A
B)Supplier B
C)Neither, they both have the same weighted score.
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14
Chapter 11: Logistics Management
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Sample Questions
Q1) With respect to transportation regulation today in the United States:
A)There is no economic regulation of transportation.
B)There is more economic regulation than ever before.
C)There is very little safety/social regulation.
D)There is more safety/social regulation than ever before.
Q2) Zanda Corp. had established a production plant in Thailand. Recently it decided to close the plant and move production to Mexico. This decision was likely made after Zanda:
A)Conducted a spend analysis.
B)Conducted a make-or-buy analysis.
C)Examined total landed cost.
D)Evaluated consolidation strategies.
Q3) In determining the number of facility locations, the lowest total cost is typically:
A)Not the lowest cost of either transportation or inventory.
B)Typically the lowest cost of either transportation or inventory.
C)Not related to transportation or inventory.
D)Difficult to generalize.
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Page 15
Chapter 12: Demand Planning: Forecasting and Demand Management
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Sample Questions
Q1) Assume that the forecast for the last period is FIT<sub>t</sub> = 200 units, and recent experience suggests a likely sales increase of 10 units each period. Actual sales for the last period reached 230 units. Assume a smoothing coefficient of a = 0.20 and a trend smoothing coefficient of = 0.10. Demand in period t + 1 turned out to be 220. What is the adjusted forecast for period t + 2 (choose the closest answer)?
A)227.3
B)215.9
C)217.3
D)221.3
Q2) Assume that the forecast for the last period is FIT<sub>t</sub> = 200 units, and recent experience suggests a likely sales increase of 10 units each period. Actual sales for the last period reached 230 units. Assuming a smoothing coefficient of a = 0.20 and a trend smoothing coefficient of = 0.10, what is the BASE forecast for the next period?
A)210
B)206
C)236
D)226
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Page 16
Chapter 13: Sales and Operations Planning
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Sample Questions
Q1) The focus of an aggregate production plan, in general, is on all of the following EXCEPT:
A)The intermediate-term future rather than the very short-term future.
B)Product lines rather than specific items.
C)Facilities and capital equipment rather than labor and inventory.
D)Inventory levels rather than new plants.
E)All of these are the focus of an aggregate production plan.
Q2) Zanda Corp. and Jones Corp. are identical in every way (products produced, costs, demand, etc.) except for one. Zanda uses a level production plan while Jones prefers a chase production plan. Which of the following is most likely to be true?
A)Jones will have higher investment in plant and equipment.
B)Jones will have higher hiring and firing costs.
C)Jones will have lower inventory carrying costs.
D)All of the options are true.
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Chapter 14: Materials and Resource Requirements Planning
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Sample Questions
Q1) Zanda Company is looking for a requirements planning system to help plan replenishment of its finished goods throughout its network of distribution centers. The type of system Zanda should consider is known as: A)CRP.
B)DRP.
C)MRP.
D)ERP.
Q2) Software that consolidates all of the business planning systems and data throughout an organization is:
A)MPS.
B)MRP.
C)DRP.
D)ERP.
Q3) The positioning and replenishment of finished goods inventories at the retail level can be determined using: A)MRP. B)CRP.
C)DRP.
D)RFID.
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Page 18
Chapter 15: Project Management
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Sample Questions
Q1) Why does project management often involve the management of conflict?
A)Projects often compete with routine operations and other projects for resources and personnel.
B)Project managers are under greater pressures than other managers in a firm.
C)Projects are often staffed with personnel who may have greater allegiance to their functional managers than to the project managers.
D)A and C are both correct.
Q2) Which of the following statements about projects and project management is NOT true?
A) A project is typically a one-time event.
B) Completing a project within budget is the most critical criterion for project success.
C) Projects are typically staffed with people from several different functional areas who may have more loyalty to their function than to the project.
D) B and C.
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Chapter 15: Extension: Advanced Methods for Project Scheduling
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Sample Questions
Q1) If a project path has an expected duration of 10 days and a standard deviation of 3 days, what is the probability that the path will be completed in 13 days or less?
A)50 percent
B)33 percent
C)75 percent
D)84 percent
Q2) In evaluating time-cost trade-offs, we start by crashing the task on the critical path that:
A)Has the lowest cost to reduce by one unit of time.
B)Has the lowest total crash cost.
C)Can be reduced the most.
D)Is the longest.
E)None of the these.
Q3) Which of the following statements best describes "crash cost"?
A)Estimated cost to reduce a project task duration by one time unit.
B)Estimated cost to reduce a project duration by one time unit.
C)Estimated cost to reduce the project schedule by one time unit.
D)Actual cost to reduce a project duration by one time unit.
E)Actual cost to change a project schedule.
Page 20
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Chapter 16: Sustainable Operations Managementpreparing for the Future
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Sample Questions
Q1) Zanda Corp. has always operated within one country. It is contemplating opening production facilities in another country. Zanda should realize:
A)Production processes used domestically should work well in a different country.
B)The means of motivating the workforce domestically may not work well in a different country.
C)The technology used domestically is often the best to use in a different country.
D)The same business model that is used domestically should apply to the foreign country.
Q2) Which of the following terms best describes the impact of sustainability initiatives on the business model?
A)Sustainability affects primarily the capabilities offered by the supply chain.
B)Sustainability helps the firm to change its value proposition.
C)Sustainability impacts primarily the customers that we serve.
D)Sustainability affects the entire business model.
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