Introduction to Operations Management Exam Preparation Guide
Course Introduction
Introduction to Operations Management explores the fundamental concepts, strategies, and tools used to manage the production of goods and the delivery of services in organizations. This course covers topics such as process analysis, capacity planning, quality management, lean systems, supply chain management, and inventory control. Students learn to analyze and improve operational processes, align operations with organizational goals, and apply quantitative and qualitative techniques to real-world problems. Emphasis is placed on decision-making in both manufacturing and service environments to enhance efficiency, productivity, and competitiveness.
Recommended Textbook operations management 5th edition by r. dan reid
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Page 2
Chapter 1: Introduction to Operations
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Q1) When did operations management emerge as a formal field of study?
A)during the late 1950s and early 1960s
B)during the late 1970s and early 1980s
C)during World War II
D)during the nineteenth century
E)during the early 1900s
Answer: A
Q2) When was the just-in-time philosophy developed?
A)1980s
B)1930s
C)1800s
D)1700s
E)1990s
Answer: A
Q3) Operations management is a result of a single event,the industrial revolution.
A)True
B)False
Answer: False
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Chapter 2: Operations Strategy and Competitiveness
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Q1) Rapid technological change includes the risk of ________________________ . Answer: obsolescence.
Q2) A mission statement answers what three overriding questions?
Answer: (1)What business is the organization in?,(2)Who are the customers?,(3)How will the company's core beliefs shape its business?
Q3) Worker pay decisions are part of the production process structure.
A)True
B)False
Answer: False
Q4) Which of the following is not described in the chapter as one of the major environmental trends that firms should monitor?
A)marketplace trends
B)global climate trends
C)economic trends
D)political trends
E)social trends
Answer: B
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Chapter 3: Product Design and Process Selection
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Q1) Name a company that hurt its business success by changing its Operations Type.
Answer: Babcock & Wilcox is one example.
Q2) Which type of operation is used to produce many different products with varying process requirements in lower volumes?
A)intermittent
B)repetitive
C)continuous
D)downstream
E)gateway
Answer: A
Q3) Describe what process flow analysis is.
Answer: A technique used for evaluating a process in terms of the sequence of steps from inputs to outputs with the goal of improving its design.
Q4) If a firm has fixed costs of $200,000,variable costs of $100 per unit,and it hopes to sell 1000 units,what selling price must it charge in order to break even?
Answer: $300 (SP = F/ Q<sub>BE </sub>+ VC = $200,000/1000 + $100 = $300)
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Chapter 4: E-Commerce and Supply Chain Management
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Q1) What is the common term for a process of developing a long-term relationship with a supplier based on mutual trust,shared vision,shared information,and shared risks?
A)Marrying
B)Cohabitating
C)Sharing
D)Partnering
E)Diversifying
Q2) The time between order placement and the receipt of goods is called lead time.
A)True
B)False
Q3) What is a virtual organization?
A)A company that provides core functions and outsources everything else
B)An e-commerce company
C)A web server developer
D)A computer manufacturer
E)A company with no vertical levels of management
Q4) What are the four causes of the bullwhip effect?
Q5) What is the formula for the indifference point Q* in the make-or-buy decision.
Q6) What are the two major advantages or crossdocking?
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Chapter 5: Total Quality Management
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Q1) TQM stresses the balanced use of non-quantitative (qualitative)and ________________________ tools in quality improvement.
Q2) TQM is __________,designed to build quality into the product and process design.
A)Reactive
B)Proactive
C)Strategic
D)Competitive
E)Standardized
Q3) A control chart is a schematic diagram of the sequence of steps involved in an operation or process.
A)True
B)False
Q4) Who is best known for the development of cause-and-effect diagrams?
A)Walter Shewhart
B)W.Edwards Deming
C)Joseph Juran
D)Kaoru Ishikawa
E)Genichi Taguchi
Q5) Reliability is described as a _____,______,or a _____
Q6) What are the common causes of TQM failure?
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Chapter 6: Statistical Quality Control
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Q1) A p-chart is an example of what?
A)Traditional statistical tools
B)Fishbone diagramming
C)Acceptance sampling
D)Experimental design
E)Statistical process control
Q2) A graph that shows the probability or chance of accepting a lot given various proportions of defects in the lot is called an ____________________.
Q3) All processes will have what type of variation?
A)Random
B)Assignable
C)Identifiable
D)Stochastic
E)Common
Q4) An OC curve is an example of what?
A)Traditional statistical tools
B)Fishbone diagramming
C)Acceptance sampling
D)Experimental design
E)Statistical process control
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Chapter 7: Just-In-Time and Lean Systems
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Q1) With regard to suppliers,JIT typically requires
A)Delivery of large lots at regular intervals
B)Buyer inspection of incoming goods and materials
C)Multiple sources from which to purchase
D)Information sharing
E)Buying parts from the cheapest supplier
Q2) Just-In-Time relies on cross-functional worker skills.
A)True
B)False
Q3) Quality in just-in-time is centered on building quality into the A)Product
B)Maintenance of equipment
C)Process
D)Distribution system
E)Workforce
Q4) Services organizations cannot use the JIT philosophy to reduce cycle time. A)True
B)False
Q5) What JIT concepts are applicable to service organizations?
Q6) Under the JIT belief of visibility,describe JIT facilities.
Page 9
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Chapter 8: Forecasting
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Q1) One quantitative forecasting models limitation is
A)it is objective
B)they are consistent
C)they are based on mathematical formulas
D)they are limited on the quality of available data
E)they can work around bad data
Q2) Forecasting only impacts the business functions.
A)True
B)False
Q3) The naïve forecasting method assumes that next period's actual value will be equal to this period's forecast.
A)True
B)False
Q4) An observation's residual error is the ________________________ distance between itself and the linear regression line.
Q5) The Delphi method of forecasting is preferred to the executive opinion method if an important consideration is eliminating any one person's dominant opinion.
A)True
B)False
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Chapter 9: Capacity Planning and Facility Location
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Q1) Input measures of capacity work better when a company produces
A)discrete items
B)a single product
C)liquids
D)many different products
E)off-the-shelf items
Q2) The maximum output rate that can be achieved by a facility under ideal conditions is design capacity.
A)True
B)False
Q3) Local wage rates,presence of local unions,and attitudes of local workers would be major factors for location decisions for businesses that
A)are labor intensive
B)have perishable products
C)have high transportation costs
D)have need for specific raw materials
E)provide in-home services
Q4) What are the disadvantages of globalization?
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Chapter 10: Facility Layout
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Q1) What are two of the most popular facility layout software packages?
A)CONWIP and CRAFT
B)ALDEP and CRAFT
C)CONWIP and MRP
D)ALDEP and MRP
E)ALDEP and CONWIP
Q2) Which of the following is least like a process layout?
A)job shop
B)automobile plant
C)hospital
D)university
E)grocery store
Q3) Which of the following is not one of the four basic layout types?
A)product
B)hybrid
C)process
D)fixed position
E)inverted
Q4) Describe what group technology is.
Q5) Bottlenecks determines determine maximum output because it
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Chapter 11: Work System Design
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Q1) Which of the following is not a step in work sampling?
A)Estimate the proportion of time spent on the given activity.
B)Estimate the sample size based on the desired level of accuracy and confidence.
C)Define the activities to be observed.
D)Identify the worker or machine to be sampled.
E)Divide the job into basic elements.
Q2) The fact that human activities typically improve when they are done on a repetitive basis is described by a(an)_________________ curve.
A)normal distribution
B)learning
C)binomial distribution
D)lognormal distribution
E)S-shaped
Q3) FCC is the governmental agency that has inspectors who check for safety conditions.
A)True
B)False
Q4) The average observed time for each work element is its __________________.
Q5) Discuss how job design is related to the supply chain.
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Chapter 12: Independent Demand Inventory Management
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Q1) Consider a firm with an annual demand of 6000 units,a setup cost of $20 per order,and an annual holding cost per unit of $2.If the company purchases 1200 units every time that they order,what are the total annual setup and holding costs?
Q2) What is the formula for calculating the average transportation inventory (ATI)?
A)ATI = tD / 365/2
B)ATI = tU / 365
C)ATI = tD / 180x2
D)ATI = txD + 365
E)ATI = tD / 365
Q3) Anticipation inventory is also called cycle stock.
A)True
B)False
Q4) How can both the JIT and EOQ inventory theories effectively be reconciled?
A)They can't.A firm must choose either one or the other.
B)by using MRP
C)by considering the setup cost as a variable instead of a parameter
D)by applying Kanban cards to the EOQ system
E)by assuming a finite production rate
Q5) What inventory function protects against supply shortages?
Q6) What are the three major categories of holding costs?
Page 14
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Chapter 13: Aggregate Planning
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Q1) Using a chase strategy with the following 4 month demand and starting employee count,how many employees will be fired and how many will be hired if each employee can fix 20 engines per period? November = 1920 Starting Employee Count = 90
December = 2160
January = 1440
February = 1200
A)12,12
B)12,14
C)13,16
D)18,48
E)14,14
Q2) The goal of developing an aggregate plan using composite product information is:
A)group like things together
B)reduce the number of calculations
C)keep it simple for senior management
D)help marketing plan
E)provide detail reports
Q3) What are the capacity-based options in aggregate planning?
Q4) Subcontracting has unattractive ________________________ effects.
Q5) What are the steps involved in developing the aggregate plan?
Page 15
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Chapter 14: Resource Planning
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Sample Questions
Q1) The company forecasts dependent demand based on independent demand input.
A)True
B)False
Q2) Given the following data:
The beginning inventory is 0 and there are no scheduled receipts.The order cost is $90 and the holding cost is $1 per part per period.
(a)What are the order costs,carrying costs,and totals cost over the 9 periods using the lot-for-lot size rule?
(b)What are the order costs,carrying costs,and totals cost over the 9 periods using the fixed order quantity rule with FOQ = 100?
(c)What are the order costs,carrying costs,and totals cost over the 9 periods using the period order quantity rule with POQ = 3?
Q3) The current time period is referred to as __________________.
A)time zero
B)the point of departure
C)the start time
D)the action bucket
E)this year
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Chapter 15: Scheduling
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Q1) What is the mean job flow time for Bob's body and fender shop for the following repair jobs? Fender job finishes day 8; hood replacement finishes day 7,front end repair finished day 4,trunk fix finishes on day 12,and the door repair finishes on day 6.
Q2) Define what slack is.
Q3) Marketing uses flow time metrics to determine if deliveries are made on time.
A)True
B)False
Q4) If using slack per remaining operations (S/RO)as the scheduling rule,the job with the least slack per remaining operations has the highest priority.
A)True
B)False
Q5) Which of the following techniques determines when the job must begin in order to be completed by the due date?
A)infinite loading
B)finite loading
C)forward scheduling
D)backward scheduling
E)input/output control
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Chapter 16: Project Management
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Q1) There are four activities on the critical path,and they have variances of 1,2,4,and 2.The variance of the critical path is _______.
A)3
B)5
C)9
D)16
E)25
Q2) What does AON stand for?
A)action-oriented-network
B)activity-on-network
C)activity-on-node
D)activity-oriented-network
E)activity-overrun-network
Q3) In crashing a project you first consider _______________ activities on the _______.
Q4) The two kinds of network diagrams are activity-on-arrow and activity-on-node.
A)True
B)False
Q5) Name and describe the three ways to add safety time in the critical chain approach.
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Chapter 17: Spreadsheet Modeling: an Introduction
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Q1) What are the six steps to developing an effective spreadsheet model?
Q2) Define and describe a model.
Q3) Which Excel function takes as inputs two separate ranges,then multiplies each pair of numbers in the ranges,and then adds up all these individual products?
A)RANGE
B)RANGEPRODUCT
C)PRODUCTSUM
D)SUMPRODUCT
E)DOTPRODUCT
Q4) The MATCH function returns the ________________ position in the array that matches the lookup value.
Q5) In Excel,absolute references do not change when you copy them.
A)True
B)False
Q6) In Excel,relative references are indicated by the lack of a dollar sign character preceding either the column or the row reference.
A)True
B)False
Q7) The sample standard deviation is found by using the Excel ___________ function.
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Chapter 18: Introduction to Optimization
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Q1) Describe guidelines for spreadsheet model development.
Q2) One use of the Answer report is:
A)to develop the final answer.
B)to duplicate the output results in a new form.
C)as a debugging tool.
D)as a duplication tool.
E)as a results summary printout.
Q3) What are the steps involved in solving optimization problems?
Q4) A diagram of the situation can help _______ the problem as well as be a(n)______ _______ tool.
A)structure,valuable communication
B)define,algebraic development
C)bound,formulation development
D)unbound,formulation development
E)structure,unbounded formulation
Q5) In Excel Solver,the Decision Cells correspond to the decision variables in the algebraic model.
A)True
B)False
Q6) A constraint in Excel Solver consists of what three pieces of information?
Page 20
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Chapter 19: Waiting Line Models
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Q1) Which of the following waiting line systems best describes a bank with a single waiting line that feeds customers to multiple identical servers?
A)single-server,single-phase
B)single-server,multi-phase
C)multi-server,single-line,single-phase
D)multi-server,multi-line,single-phase
E)multi-server,multi-phase
Q2) What are some variations of the mathematical waiting line models that are not described in Supplement C?
Q3) Which of the following waiting line systems best describes a men's clothing store,where one of the sales clerks first assists the customer in selecting the material and style and then one of the tailors measures the customer to ensure a custom-fitted suit?
A)single-server,single-phase
B)multi-server,multi-phase
C)multi-server,single-line,single-phase
D)multi-server,multi-line,single-phase
E)single-server,multi-phase
Q4) In a single-line,multi-server,single phase model,customers form a ________ line.
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Chapter 20: Master Scheduling and Rough-Cut Capacity Planning
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Q1) Discuss the master scheduler's objectives when developing the MPS.
Q2) What is the portion of the MPS called that lies between the current time and the demand time fence?
A)gaseous
B)frozen
C)slushy
D)mucky
E)liquid
Q3) A negative number in the available-to-promise row is ___________ a problem.
A)sometimes B)always C)usually D)never
E)25%
Q4) Discuss how the MPS is evaluated in terms of cost.
Q5) The MPS is said to be ________________________ between final assembly and cumulative manufacturing lead times.
B)False Page 22
Q6) The master production schedule is a statement of upcoming demand. A)True
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