Industrial Management
Pre-Test Questions
Course Introduction
Industrial Management explores the principles and practices involved in effectively managing industrial operations, focusing on the efficient use of resources, optimization of production processes, and improvement of organizational performance. Topics include production planning and control, quality management, supply chain logistics, inventory management, labor relations, and the implementation of modern management techniques such as lean manufacturing and Six Sigma. Emphasis is placed on decision-making, leadership, and the integration of technology to meet the demands of a competitive industrial environment. This course prepares students to tackle real-world challenges by applying analytical and strategic approaches within various industry sectors.
Recommended Textbook
OM 6th Edition by David Alan Collier
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Page 2
Chapter 1: Operations Management and Value Chains
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Sample Questions
Q1) Predictive analytics is used by organizations to:
A) analyze business policies through visual representations.
B) identify the best decisions for a particular situation.
C) understand past and current performance.
D) envisage the future by detecting patterns and relationships in data.
Answer: D
Q2) A _____ is a sequence of activities that is intended to create a certain result, such as a physical good, a service, or information.
A) process
B) matrix
C) variant
D) task
Answer: A
Q3) Which of the following statements is true of service facilities
A) They need to be in close proximity to customers.
B) They store their services as physical inventory.
C) They require employees with stronger technical skills than behavioral skills.
D) They rely more on hard technology than soft technology to perform work.
Answer: A
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Page 3
Chapter 2: Measuring Performance in Operations and Value Chains
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Sample Questions
Q1) Which of the following is a financial performance measure at an organizational level
A) Cost of quality
B) Revenue and profit
C) Budget variance
D) Labor and material costs
Answer: B
Q2) The quantitative modeling of cause-and-effect relationships between external and internal performance criteria is called__________.
A) productivity
B) operational efficiency
C) interlinking
D) sustainability
Answer: C
Q3) In the context of the analytics in operations management, it costs three to five times more to keep an existing customer than acquire a new customer.
A)True
B)False
Answer: False
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Chapter 3: Operations Strategy
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Q1) According to Professor Terry Hill's generic strategy framework, which of the following statements is true of the first loop
A) It ties together an organization's corporate strategy and marketing strategy.
B) It describes how operations evaluate the implications of competitive priorities in terms of process choice.
C) It determines if process choice decisions are consistent with infrastructure decisions.
D) It represents operations' input into the corporate and marketing strategy.
Answer: A
Q2) Which of the following is one of the key areas that is addressed by operations design choices
A) Functional plans and control systems
B) Learning and innovation systems
C) Value chain integration and outsourcing
D) Quality control and mass customization
Answer: C
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Chapter 4: Technology and Operations Management
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Sample Questions
Q1) __________machine tools enable the machinist's skills to be duplicated by a programmable device that controls the movements of a tool used to make complex shapes.
A) Virtual control (VC)
B) Numerical control (NC)
C) Revision control (RC)
D) Movement control (MC)
Q2) _____ allows all parts of the value chain to immediately recognize and react to changes in demand and supply.
A) Super-precision manufacturing
B) Rapid prototyping
C) Descriptive analytics
D) Electronic transaction capability
Q3) __________refers to the application of the Internet, computer programs, and information systems to provide data, information, and analysis to facilitate the creation and delivery of goods and services.
A) Hard technology
B) Soft technology
C) Assistive technology
D) Adaptive technology
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Chapter 5: Goods and Service Design
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Q1) __________focuses on the interaction, directly or indirectly, between the service provider(s) and the customer.
A) Service process design
B) Service-encounter design
C) Lean servicescape design
D) Customer benefit package design
Q2) In the context of service-encounter design, free trips and extra vacation days is not considered a form of recognition.
A)True
B)False
Q3) In the context of quality function deployment, building a House of Quality begins by identifying the:
A) competitive priorities.
B) voice of the customer.
C) marketplace dynamics.
D) service provider requirements.
Q4) Location is an important competitive priority in a service business.
A)True
B)False
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Chapter 6: Supply Chain Design
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Q1) __________is a noneconomic factor in location decisions.
A) Construction
B) Availability of labor
C) Depreciation and maintenance
D) Insurance
Q2) In the context of supply chain design trade-offs, which of the following is true of a push system
A) It works best when there are a large number of distribution centers.
B) It is more appropriate for make-to-order items.
C) It has an advantage of immediate availability of goods to consumers.
D) It works best with variable sales patterns.
Q3) __________refers to acquiring capabilities toward distribution, or even customers.
A) Contract manufacturing
B) Outsourcing
C) Backward integration
D) Forward integration
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Chapter 7: Process Selection, Design, and Analysis
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Q1) __________are large-scale, customized initiatives that consist of many smaller tasks and activities that must be coordinated and completed to finish on time and within budget.
A) Projects
B) Flow shops
C) Continuous flow processes
D) Assembly line processes
Q2) Which of the following is true of custom goods
A) They are usually available as they are stocked in inventory.
B) They are produced on demand.
C) They are made in anticipation of customer demand.
D) They are made according to a fixed design.
Q3) An automobile emissions testing center has three inspectors and tests 35 vehicles per hour. What should the service rate be in order to achieve a target utilization of 95 percent
A) More than 1 but less than or equal to 5 vehicles per hour
B) More than 5 but less than or equal to 10 vehicles per hour
C) More than 10 but less than or equal to 15 vehicles per hour
D) More than 15 but less than or equal to 20 vehicles per hour
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Page 9
Chapter 8: Facility and Work Design
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Sample Questions
Q1) A Gallup study showed that there is no significant difference found in the productivities among workers who are allowed to personalize their workplaces and those who are not.
A)True
B)False
Q2) Which of the following is an objective of ergonomics
A) To increase the cost of doing a job while reducing fatigue
B) To reduce energy requirements while increasing accuracy
C) To increase the possibility of human errors while decreasing the cost of training
D) To reduce the flexibility in an operation while increasing speed
Q3) Which of the following types of facility layouts is best suited for a heavy machine tools factory
A) A product layout
B) A process layout
C) A cellular layout
D) A fixed-position layout
Q4) Process layouts require simple planning and control systems.
A)True
B)False
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Chapter 9: Forecasting and Demand Planning
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Q1) In the Delphi method of judgmental forecasting, _____.
A) predictions are based on the assumption that the future will be an extrapolation of the past
B) predictions are based on one or more independent variables, all of which are numerical
C) people from outside an organization are not eligible to make predictions
D) experts are not consulted as a group to make predictions
Q2) __________is a method for building a statistical model that defines a relationship between a single dependent variable and one or more independent variables, all of which are numerical.
A) The Delphi method
B) Regression analysis
C) Judgmental forecasting
D) The Cooke method
Q3) Forecasting is a key component in customer relationship management.
A)True B)False
Q4) Judgmental forecasting relies upon historical data in developing forecasts. A)True
B)False
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Chapter 10: Capacity Management
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Q1) A _____ is a strategy for expanding capacity that waits until demand has increased to a point where additional capacity is necessary.
A) capacity lag strategy
B) capacity lead strategy
C) capacity reduction strategy
D) capacity match strategy
Q2) Greyon Spinning Mills Inc. owns 600 spinning machines. Out of these, only 500 are used in a given year. Given this information, the utilization of spinning machines at Greyon Spinning Mills Inc. is _____.
A) 0.75
B) 0.83
C) 1
D) 1.2
Q3) A__________matches capacity additions with demand as closely as possible.
A) capacity lag strategy
B) capacity straddle strategy
C) capacity lead strategy
D) capacity reduction strategy
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12
Chapter 11: Managing Inventories in Supply Chains
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Q1) In the context of ABC inventory analysis, which of the following statements is true of class A items
A) They require close control by operations managers.
B) They comprise less than 30 percent of the total dollar usage.
C) They can be managed using automated computer systems.
D) They account for more than 50 percent of inventory items.
Q2) Marketing and operations prefer high inventory levels, whereas finance would prefer small inventories.
A)True
B)False
Q3) In the context of inventory costs,__________can reflect lost sales for external customers or costs associated with interruptions to assembly lines for internal customers.
A) holding costs
B) stockout costs
C) ordering costs
D) setup costs
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Chapter 12: Supply Chain Management and Logistics
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Q1) Which of the following is a disadvantage of vendor-managed inventory (VMI)
A) It often results in higher customer inventories than necessary.
B) It does not allow vendors to view inventory needs from the customer's perspective.
C) It prohibits the use of customer information, which leads to poor control of inventory and capacity.
D) It prevents vendors from making production decisions using downstream customer demand data.
Q2) Electronic data interchange and Internet links decrease the velocity of supply chains.
A)True
B)False
Q3) __________is inventory that has been ordered but is in transit.
A) Pipeline inventory
B) Decoupling inventory
C) Buffer inventory
D) Anticipation inventory
Q4) A high average inventory value reduces the chances of inventory obsolescence.
A)True
B)False
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Chapter 13: Resource Management
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Q1) __________is the process of translating aggregate plans into short-term operational plans that provide the basis for weekly and daily schedules and detailed resource requirements.
A) Aggregation
B) Execution
C) Disaggregation
D) Enterprise resource planning
Q2) For goods-producing firms, at which of the following levels of resource planning does scheduling for individual subassemblies and resources by week and day take place
A) Aggregate planning
B) Disaggregation
C) Execution
D) Demand forecasting
Q3) Capacity requirements are computed by multiplying the number of units scheduled for production at a work center by the:
A) the unit resource requirements and then adding in the setup time.
B) the setup time and then subtracting the unit resource requirements.
C) the setup time and then adding in the unit resource requirements.
D) the unit resource requirements and then subtracting the setup time.
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Chapter 14: Operations Scheduling and Sequencing
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Q1) A movie theater requires the following minimum number of employees, each of whom is required to have two consecutive days off.
\(\begin{array} { | l | l | l | l | l | l | l | l | }
\hline \text { Day: } & \text { Mon. } & \text { Tue. } & \text { Wed. } & \text { Thur. } &
\text { Fri. } & \text { Sat. } & \text { Sun. } \\
\hline \begin{array} { l }
\text { Minimum Number } \\
\text { of Employees Required }
\end{array} & 1 & 1 & 3 & 2&5 &4 &3 \\
\hline
\end{array}\)
Using the staff scheduling method, it is determined that the number of employees required as per the final employee schedule is _____.
A) 3
B) 4
C) 5
D) 6
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Chapter 15: Quality Management
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Sample Questions
Q1) Identify a true statement about International Organization for Standardization (ISO) 9000:2000.
A) It states that generic management practices can never be standardized.
B) Its standards do not apply to services such as health care, banking, and transportation.
C) It is the first version of the ISO family of standards.
D) Its standards apply to all types of businesses, including electronics and chemicals.
Q2) The managers at Blyrie Corp. think that their company's products are of higher quality than the products of other companies in the market. However, contrary to their perception, the customers rate the company's products as below average. This is due to the inferior process design specifications in the company. This is an example of _____ in the GAP model.
A) Gap 2
B) Gap 3
C) Gap 4
D) Gap 5
Q3) Six Sigma cannot be applied to service processes.
A)True
B)False
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Page 17
Chapter 16: Quality Control and SPC
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Q1) The lower and upper specification limits for a mustard filling machine are 10.50 and 12.00 ounces, respectively. The standard deviation is 0.05. The process capability index of the machine will be:
A) less than or equal to 3.
B) more than 3 but less than or equal to 5.
C) more than 4 but less than or equal to 5.
D) more than 5.
Q2) Which of the following is true of special cause variation
A) It cannot be explained or understood.
B) It occurs sporadically and can be prevented.
C) It cannot be detected using statistical methods.
D) It accounts for about 80 to 95 percent of the observed variation in a process.
Q3) In the context of the net promoter score (NPS), scores of 7 or 8 are associated with__________, customers who are satisfied but may switch to competitors.
A) detractors
B) passives
C) promoters
D) proponents
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Chapter 17: Lean Operating Systems
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Q1) __________is focused on ensuring that operating systems will perform their intended function reliably.
A) Total productive maintenance
B) A just-in-time system
C) An intermittent production system
D) Total quality management
Q2) Lean Six Sigma focuses on real dollar savings and has the ability to make significant financial impacts on an organization.
A)True
B)False
Q3) Kanban is a Japanese word that means elimination of waste.
A)True
B)False
Q4) The equation used to calculate the number of Kanban cards required in a system is ,where \(\alpha\) denotes _____.
A) the demand during lead time
B) a form of safety stock
C) capacity utilization
D) the reorder point
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Chapter 18: Project Management
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Q1) In the project management life cycle, the__________involves collecting and assessing status reports, managing changes to baselines, and responding to circumstances that can negatively impact the project participants.
A) closing stage
B) planning stage
C) organizing stage
D) controlling stage
Q2) In the context of the Critical Path Method (CPM), the slack time (ST) for an activity is computed as:
A) the latest start (LS) time minus the earliest finish (EF) time.
B) the latest finish (LF) time minus the earliest start (ES) time.
C) the latest start (LS) time minus the earliest start (ES) time.
D) the earliest finish (EF) time minus the latest start (LS) time.
Q3) Implementing a new computer-aided design system is an example of a project in the functional area of _____.
A) engineering
B) operations
C) logistics
D) marketing
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