Industrial Engineering
Textbook Exam Questions
Course Introduction
Industrial Engineering is a multidisciplinary field focused on the optimization of complex systems, processes, and organizations. This course introduces students to the principles of designing, improving, and managing efficient production and operational systems in manufacturing and service industries. Topics include systems analysis, process engineering, quality control, operations research, project management, ergonomics, and logistics. Emphasis is placed on problem-solving techniques, decision-making processes, and the effective use of resources such as people, materials, information, and technology to increase productivity, reduce costs, and ensure quality and safety in the workplace.
Recommended Textbook
Operations Management 5th Canadian Edition by William J. Stevenson
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Chapter 1: Introduction to Operations Management
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Sample Questions
Q1) The responsibilities of operations managers classified as planning activities include:
A) inventory, production pace, quality, and costs.
B) organizing departments, subcontracting, supplier contracts, and staffing.
C) forecasting, planning, organizing, and directing.
D) scheduling, job assignments, purchasing, and logistics.
E) capacity, location, layout, and mix of products.
Answer: E
Q2) Which of the following is a reason for studying operations management?
A) A large percentage of a company's expenses occur in the operations management activities that are at the core of all business organizations.
B) Activities in all of the other areas of business organizations, such as accounting and marketing are interrelated with operations management activities.
C) Many management jobs are in operations management-related areas, such as production planning, inventory management, and more.
D) All of the choices are reasons.
E) None of the choices are correct.
Answer: D
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Chapter 2: Competitiveness, Strategic Planning, and Productivity
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Q1) The purchasing criteria of quality and timeliness of delivery are order winners for all companies.
A)True
B)False
Answer: False
Q2) Which of the following are major decision-making categories for operations policies and action plans?
I.Facility
II.Capacity
III.Process types and technology
IV.Human Resources
A) I and II only
B) I, II, and III only
C) III and IV only
D) II, III, and IV only
E) I, II, III, and IV
Answer: E
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Chapter 3: Demand Forecasting
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Sample Questions
Q1) Which of the following would be an advantage of using opinions of a sales force to develop a demand forecast?
A) The sales staff is least affected by changing customer needs.
B) The sales force can easily distinguish between customer desires and probable actions.
C) The sales staff is often aware of customers' future plans.
D) Salespeople are least likely to be influenced by recent events.
E) Salespeople are least likely to be biased by sales quotas.
Answer: C
Q2) A simple moving average assigns equal weight to each data point that is represented by the average.
A)True
B)False
Answer: True
Q3) Removing the seasonal component from a data series (deseasonalizing)can be accomplished by dividing each data point by its appropriate seasonal relative.
A)True
B)False
Answer: True
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Chapter 4: A: Product Design
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Q1) Phased reviews for new product projects are intended to delay changes until close to the launch of new products so all changes needed can be dealt with at the same time.
A)True
B)False
Q2) Basic research focuses on near-term commercial applications and is primarily carried out by business organizations.
A)True
B)False
Q3) A major benefit of CAD is increased productivity of designers.
A)True
B)False
Q4) Of the following,which is not strictly a legal or ethical consideration of product design?
A) Legislated automobile pollution standards and safety features
B) The range of conditions a product can operate within
C) Bans or regulations on the use of certain materials
D) Patents, trademarks and copyrights of competitors
E) Standards for building materials
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Chapter 4: B: Product Design
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Q1) The useful life of a certain valve at a pumping station is normally distributed with a mean of 48 months and a standard deviation of five months.Determine these probabilities: (i)The valve will fail within 44 months of its installation.(ii)The valve will last at least 40 months,before failing.
Q2) A certain product is comprised of two components:
X and Y.Component X has a random failure rate of one in every ten years,while component Y's random failure rate is one in every five years.This product has a mean time to wear-out of eight years with a standard deviation of one year.What is the probability that component Y will perform reliably for a year?
Q3) Redundancy in product design refers to backup parts or systems.
A)True
B)False
Q4) A certain product is comprised of two components:
X and Y.Component X has a random failure rate of one in every ten years,while component Y's random failure rate is one in every five years.This product has a mean time to wear-out of eight years with a standard deviation of one year.What is the probability that this product will perform reliably for a year?
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Chapter 5: A: Strategic Capacity Planning
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Sample Questions
Q1) Utilization is defined as the ratio of:
A) actual output to effective capacity.
B) used time to available time.
C) available time to effective capacity.
D) effective capacity to actual output.
E) design capacity to actual output.
Q2) The term capacity is the upper limit on the workload an operating unit can handle.
A)True
B)False
Q3) If a company produces a variety of outputs,capacity has to be expressed as several partial measures; no overall measure of capacity is possible.
A)True
B)False
Q4) What would be his profit if he were to perform 5,000 blood analyses?
A) $100,000
B) $150,000
C) $190,000
D) $300,000
E) $400,000
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Chapter 5: B: Strategic Capacity Planning
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Q1) In a decision tree,square nodes represent chance events,and circular nodes denote decision points.
A)True
B)False
Q2) In order to use the expected value approach,one needs to determine the probabilities of future payoffs.
A)True
B)False
Q3) Graphical sensitivity analysis is used when the payoffs and probabilities of decision alternatives are uncertain.
A)True
B)False
Q4) A tabular presentation that shows the outcome for each decision alternative under the various possible states of nature is called:
A) a payoff table.
B) a feasible region.
C) an isoquant table.
D) a decision tree.
E) a payback period matrix.
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Chapter 6: A: Process Design and Facility Layout
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Sample Questions
Q1) Process layouts tend to have low in-process inventories.
A)True
B)False
Q2) If department C must be located in area 1,what layout will minimize the total distance loads will be moved each month?
Q3) Which one of the following is not one of the steps used in manufacturing layout design?
A) Location of receiving and shipping
B) Presence of customers
C) Special requirements of equipment
D) Allowing space for machines and material handling (e.g. forklifts)
E) All are important factors
Q4) In process layouts production resources are arranged according to similarity of function.
A)True
B)False
Q5) Cellular layouts consist of a large number of computer-controlled machines that produce dissimilar parts.
A)True
B)False
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Chapter 6: B: Process Design and Facility Layout
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Sample Questions
Q1) Which of the choices below constitutes a simultaneous solution to these equations?
(1)3x + 4y = 10 and (2)5x + 4y = 14
A) x = 2, y = .5
B) x = 4, y = -.5
C) x = 2, y = 1
D) x = y
E) y = 2x
Q2) Consider the linear programming problem below:
Minimize Z = $2x + $8y
Subject to:
(i)8x + 4y³ 64
(ii)2x + 4y³ 32
(iii)y³ 2
Determine the optimum amounts of x and y in terms of cost minimization.What is the minimum cost?
Q3) The removal of a redundant constraint does not affect the feasible solution space.
A)True
B)False
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Chapter 7: A: Design of Work Systems
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Sample Questions
Q1) Standard times are determined by taking the average time one worker takes to complete the same task many times.
A)True
B)False
Q2) How many observations should be made if she wants to be 0.8664 confident that the maximum error in the observed time is 0.5 second? Assume that the standard deviation of the task time is 4 seconds.
A) 10
B) 12
C) 120
D) 144
E) 169
Q3) An increase in the desired confidence level has what effect on the number of observations necessary in a time study?
A) Increases
B) Decreases
C) Unaffected
D) May increase or decrease, depending on the sample standard deviation
E) Impossible to say without additional information
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Page 12
Chapter 7: B: Design of Work Systems
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Q1) A company is preparing a bid on a government contract for 40 units of a certain product.The operations manager estimates the assembly time required for the first two units to be 10.4 hours and 8.8 hours,respectively.What is the expected time required to produce the 40<sup>th</sup> unit?
A) 3.2 hours
B) 4.4 hours
C) 5.9 hours
D) 3.7 hours
E) 2.2 hours
Q2) How long would a job with a 70 percent learning curve and a time of 20 hours for the first unit require (approximately,in hours)for the third unit?
A) 14
B) 11.4
C) 10
D) 7
E) 4
Q3) It takes a worker with a 90 percent learning curve 72.9 minutes to complete the fourth unit of a seven-unit job.Estimate the amount of time the worker spent on the first two units.
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Chapter 8: A: Location Planning and Analysis
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Sample Questions
Q1) Which of the following statements concerning location analysis best typifies the situation for most location decisions?
A) Regional and country level factors are more important than local community factors.
B) Local community factors are more important than regional and country level factors.
C) Availability of raw materials tends to be the dominant factor.
D) Labour costs tend to emerge as the dominant factor.
E) One or more factors stated dominate the decision.
Q2) A factor that has caused problems for Canadian companies operating in foreign countries is:
A) tax laws.
B) raw materials.
C) corruption.
D) labour cost.
E) lack of markets.
Q3) For what quantity would you be indifferent between selecting site B or site C?
Q4) For what range of output would you prefer site A?
Q5) For what range of output would you prefer site B?
Q6) What are total costs for site B for a quantity of 5,000 units per year?
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Chapter 8: B: Location Planning and Analysis
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Q1) Which of the following is not an assumption of the transportation model?
A) Actual supply and demand must be equal.
B) Shipping costs per unit are constant.
C) Items to be shipped are homogeneous.
D) There is one transportation route between each source and destination.
E) There is one transportation mode between each source and destination.
Q2) The transportation model method for evaluating location alternatives minimizes:
A) the number of sources.
B) the number of destinations.
C) the number of alternatives.
D) the total demand.
E) the total shipping cost.
Q3) The decision variables for a transportation model are the quantities to be shipped. A)True B)False
Q4) The transportation model can be used for capacity planning. A)True
B)False
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Chapter 9: Management of Quality
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Sample Questions
Q1) One of the primary determinants of product quality includes the translation of product characteristics into process design.
A)True
B)False
Q2) In Canada,the Hazard Analysis Critical Control Point (HACCP)certification system is administered by the Canadian Standards Association to limit the hazards in all industrial plants in the country.
A)True
B)False
Q3) The primary difference between internal failures and external failures is the time and place of discovery of the failure.
A)True
B)False
Q4) ISO 9001 certification requires an ongoing series of audits and the need to be re-registered every three years.
A)True
B)False
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Page 16
Chapter 10: A: Statistical Quality Control
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Sample Questions
Q1) Design specifications are equivalent to control limits.
A)True
B)False
Q2) What is the sample mean service life for sample 2?
A) 470 hours
B) 495 hours
C) 500 hours
D) 515 hours
E) 525 hours
Q3) The main task in process control is to distinguish assignable from random variation.
A)True
B)False
Q4) Using .95 control limits,(5% alpha risk),which instructor(s),if any,should he conclude is (are)out of control?
A)None of the choices are correct.
B)Prof.B only
C)Prof.D only
D)Both Prof.B and Prof.D.
E)All of the choices are correct.
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Chapter 10: B: Statistical Quality Control
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Q1) The Quality Manager for Microelectronics,Inc.is concerned about the quality of the batch of several thousand IC's (integrated circuits)which his company is about to ship.If,based on his acceptance sample,he decides to ship this batch without inspection,which type error would be possible?
A) None would be possible
B) Producer's error
C) Type I error
D) Type II error
E) Both Type I and Type II error
Q2) A Quality Inspector for Alpha-Beta Co.is concerned about the quality of the batch of several thousand Gizmos which his company produced this week and is preparing to ship.If the cost of replacing a defective Gizmo once it has been shipped is $2.00,while the cost of 100% inspection prior to shipment is $.40 each,at what point is he indifferent between 100% inspection or shipment without inspection?
A) 0% defectives
B) 2% defectives
C) 5% defectives
D) 20% defectives
E) 30% defectives
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Page 18
Chapter 11: Supply Chain Management
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Sample Questions
Q1) Japanese firms tend to use fewer vendors than many of their American counterparts.
A)True
B)False
Q2) Efficient consumer response (ECR)is an extension of quick response,initially developed in the retail clothing industry.
A)True
B)False
Q3) The benefits of establishing partnerships with suppliers include:
I higher quality.
II increased delivery speed.
III lower inventories.
A) I and II only
B) II only
C) II and III only
D) I and III only
E) I, II, and III
Q4) Long-term contracts imply stronger relationships with fewer suppliers.
A)True
B)False
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Chapter 12: Inventory Management
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Q1) Using the EOQ model,the higher an item's holding costs,the more frequently it will be ordered.
A)True
B)False
Q2) Which of the following would not generally be considered as one of the functions for holding inventories?
A) Smoothing seasonal production
B) Decoupling successive operations
C) Hedging against price increases
D) Minimizing holding costs
E) Protecting against stock-outs
Q3) In the basic EOQ model,if annual demand is 50,holding cost is $2,and ordering cost is $15,the EOQ (rounded to the next whole number)is:
A) 11
B) 20
C) 24
D) 28
E) 375
Q4) For the economic order quantity,what is the reorder point?
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Chapter 13: Aggregate Operations Planning
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Q1) After the first period of the planning horizon,available-to-promise (ATP)inventory is computed only for those periods in which there is a planned production quantity.
A)True
B)False
Q2) An example of a capacity option in aggregate operations planning is stockpiling inventories.
A)True B)False
Q3) Backorders can be thought of as negative inventory.
A)True
B)False
Q4) Disaggregating an aggregate production plan leads to a master production schedule.
A)True
B)False
Q5) The master production schedule indicates the quantity and timing for planned production of an item.
A)True B)False
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Chapter 14: Material Requirements Planning and Enterprise
Resource Planning
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Sample Questions
Q1) The part-period method for lot sizing breaks the time periods into smaller units of time to create daily or hourly production schedules.
A)True
B)False
Q2) In MRP,under lot-for-lot ordering,the size of "planned-order receipts" are equal to:
A) "scheduled receipts."
B) "planned-order releases."
C) open orders already scheduled to be delivered.
D) "gross requirements."
E) None of the choices.
Q3) ERP involves software that is used to manage and coordinate all the resources,information,and functions of an organization from a shared database.
A)True
B)False
Q4) The part-period method for lot sizing attempts to balance setup and holding costs.
A)True
B)False
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Chapter 15: A: Just-In-Time and Lean Production
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Q1) The ideal scheduling for JIT/lean operations follows a push system of planning.
A)True
B)False
Q2) An advantage of JIT cross-trained workers is they can help other workers when bottlenecks occur.
A)True
B)False
Q3) In the JIT philosophy,the smaller the lot size,the better.
A)True
B)False
Q4) Which of the following is not an important element of personnel and organization for JIT?
A) Cross-trained workers
B) Authoritative command and control style leadership
C) Support from non-manufacturing personnel such as marketing and finance
D) Participation in kaizen (continuous improvement)
E) All of the choices are elements
Q5) In a broad sense,JIT is identical to lean production.
A)True
B)False
23
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Chapter 15: B: Just-In-Time and Lean Production
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Q1) Breakdown maintenance takes the form of scheduled periodic maintenance.
A)True
B)False
Q2) Maintenance activities are often organized into the two groups: buildings and grounds,and equipment maintenance.
A)True
B)False
Q3) When breakdowns become frequent and/or costly,managers are faced with a trade-off decision between the cost of continued maintenance and the cost of ________________.
A) passage of time
B) preventive maintenance
C) breakdowns
D) replacement
E) reliability
Q4) One basis for scheduling preventive maintenance is the passage of time.
A)True
B)False
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Chapter 16: Job and Staff Scheduling
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Q1) In developing the sequence which will minimize throughput time,where should the job X be placed?
Q2) For the Theory of Constraints,the transfer batch denotes a portion of the production lot that could be moved to the bottleneck operation.
A)True
B)False
Q3) Sequencing is concerned with the order in which jobs are processed,while loading is concerned with assigning jobs to work centres or workstations.
A)True
B)False
Q4) If Jack uses the first come,first served (FCFS)priority rule to schedule these jobs,what will be the average flow time?
A) 3 hours
B) 5 hours
C) 7 hours
D) 7.2 hours
E) 8 hours
Q5) What is the sequence which will minimize make-span?
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Chapter 17: Project Management
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Q1) The project management technique that is repeated until activities are decomposed into work packages that can be performed by a designated worker,team or subcontract is called:
A) work breakdown structure (WBS).
B) program evaluation and review technique (PERT).
C) planning matrix.
D) crashing.
E) none of the choices.
Q2) What are the estimated expected (mean)durations (in weeks)for activities A-H?
Q3) What are the estimated standard deviations (in weeks)of the durations for activities A-H?
Q4) In the probabilistic approach to precedence network analysis,the duration estimate annotated "tm" for any activity is the:
A) mean duration.
B) median duration.
C) most likely duration.
D) optimistic duration.
E) pessimistic duration.
Q5) What are the estimated slack times (in weeks)for activities A-H?
Q6) In crashing this project,which activity is the first to be reduced?
Page 26
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Chapter 18: A: Waiting-Line Analysis
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Q1) A single bay car wash with a Poisson arrival rate and an exponential service time has cars arriving an average of 10 minutes apart,and an average service time of four minutes.The server utilization is:
A) .24
B) .40
C) .67
D) 2.50
E) none of these
Q2) A department has 5 semiautomatic pieces of equipment which operate for an average of 79 minutes before they must be reloaded.The reloading operation takes an average of 21 minutes per machine.Assume exponential distributions.
(i)What is the minimum number of servers needed to keep the average downtime per cycle to less than 25 minutes?
(ii)If 1 server is used,what percentage of time will the machine be down?
Q3) The finite-source queuing model is appropriate when the potential calling population is relatively small.
A)True
B)False
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Chapter 18: B: Waiting-Line Analysis
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Q1) Which statement does not accurately describe simulation?
A) Enables decision makers to conduct experiments
B) Involves developing models of processes
C) Alternatives are considered based on the what-if approach
D) Determines optimal solutions
E) Is a descriptive technique that does not produce a solution per se
Q2) A simulation model is validated if it adequately depicts real system performance.
A)True
B)False
Q3) Random numbers used in Monte Carlo simulation are generated by computer or from random number tables.
A)True
B)False
Q4) Simulation is basically a technique which is used for:
A) optimizing.
B) testing solutions.
C) cost minimizing.
D) using random numbers.
E) heuristic problem solving.
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