Introduction to Operations Management Exam Review
Course Introduction
Introduction to Operations Management provides students with a foundational understanding of how organizations produce goods and services efficiently. The course explores key concepts such as process analysis, capacity planning, supply chain management, quality control, and inventory management. Students learn to analyze and improve operational processes to enhance productivity and competitiveness within various industries. Through case studies, real-world examples, and quantitative tools, this course equips students with practical skills to identify operational challenges and implement effective solutions in both manufacturing and service environments.
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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Sample Questions
Q1) The history of Operations Management reflects.
Answer: The accumulation of experience and ideas over time.
Q2) Increasing the level of responsibility of a job by adding planning and coordination tasks is called job enrichment.
A)True
B)False
Answer: True
Q3) When was the just-in-time philosophy developed?
A)1980s
B)1930s
C)1800s
D)1700s
E)1990s
Answer: A
Q4) What is the basic approach for business process reengineering and what are its major impacts?
Answer: It involves asking why things are done in a certain way,questioning assumptions,and then redesigning the processes.It can increase efficiency,improve quality,and reduce costs.
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Chapter 2: Operations Strategy and Competitiveness
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Sample Questions
Q1) Operations management is only concerned with information technology applications within the firm.
A)True
B)False
Answer: False
Q2) Facilities decisions are part of the production process infrastructure.
A)True
B)False
Answer: False
Q3) Suppose that in week 1 a company produced 1000 units using 60 labor hours.For which of the following values in week 2 would labor productivity decrease?
A)units = 2000,hours = 120
B)units = 1500,hours = 95
C)units = 1000,hours = 58
D)units = 500,hours = 30
E)units = 2000,hours = 100
Answer: B
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Chapter 3: Product Design and Process Selection
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Sample Questions
Q1) Which product and service strategy has the longest delivery lead time?
A)assemble-to-deliver
B)make-to-stock
C)assemble-to-order
D)make-to-order
E)make-to-package
Answer: D
Q2) Which type of process would be least likely to produce goods for inventory rather than for a specific customer request?
A)project
B)batch
C)line
D)continuous
E)remanufacturing
Answer: A
Q3) Substituting technology for people has been argued to reduce what in the service delivery?
Answer: uncertainty of service delivery
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Chapter 4: E-Commerce and Supply Chain Management
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Sample Questions
Q1) List some benefits derived from E-commerce.
Q2) Yannis Corporation is trying to decide whether to produce its own subassemblies or outsource them.In-house production costs would include an annual fixed cost of $250,000,materials costs per unit of $7,and labor costs per unit of $5.Teshtown,Inc.has agreed to provide the subassemblies for an annual cost of $400,000 and a unit cost of $8 per subassembly.Over what ranges of demand is each option best?
Q3) Insourcing incurs a fixed cost of $1000 and a $5 variable cost.Outsourcing incurs a fixed cost of $2000 and a $2 variable cost.What is the indifference point?
Q4) Which of the following is not a positive attribute of Multiple Suppliers?
A)provides a greater flexibility of volume
B)eliminates a supplier's dependence on the purchaser
C)probability of assured supply is better
D)deliveries can be schedule more easily
E)allows for testing of new suppliers without jeopardizing the flow of materials
Q5) The time between order placement and the receipt of goods is called lead time.
A)True
B)False
Q6) What are the three "components" of a supply chain?
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Chapter 5: Total Quality Management
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Sample Questions
Q1) The most important factor in the success or failure of TQM efforts is
A)Getting started quickly
B)The use of statistical process control
C)The genuineness of the organization's commitment
D)The use of cause-and-effect diagrams
E)Employee training
Q2) What are the most widely used ISO standards?
A)ISO 9000,ISO 9001,and ISO 9004
B)ISO 9000,ISO 9001,and ISO 9002
C)ISO 9000,ISO 9010,and ISO 9100
D)ISO 9001,ISO 9002,and ISO 9003
E)ISO 9000,ISO 9002,and ISO 9004
Q3) Checklists can also be used to focus on?
A)replacement costs
B)design documentation
C)time dimension
D)upper control limits
E)histogram
Q4) Describe the foundation of Deming's "14 Points."
Q5) What are four dimensions of service quality?
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Chapter 6: Statistical Quality Control
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Sample Questions
Q1) What measures symmetry of a distribution?
A)Range
B)Skewness
C)Standard deviation
D)Mean
E)Variance
Q2) What does "OC" stand for?
Q3) On a control chart,what separates common from assignable causes of variation?
A)x-bar lines
B)Control limits
C)Specification limits
D)Production limits
E)Mean divided by standard deviation
Q4) Descriptive statistics are used to describe quality characteristics and relationships.
A)True
B)False
Q5) Given a sample size of 2,the lower limit for the R-chart is 0.
A)True
B)False
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Chapter 7: Just-In-Time and Lean Systems
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Sample Questions
Q1) Matt Dillon works for a production facility that makes ball point pens.His job is to place the spring on the central ink insert.He is expected to process 200 inserts per hour.The factory uses a Kanban production system with containers that hold 50 inserts.It takes 30 minutes for Frank to receive the inserts from the previous work station.The factory sets safety stock at 40 percent of demand during lead time.How many Kanbans are needed?
Q2) What are the benefits of JIT?
Q3) Which of the following is not a good approach for suppliers who are providing JIT services to manufacturers?
A)Use the "push system" for deliveries
B)Locate near their customers
C)Have small warehouses near the manufacturing plant
D)Use standardized containers
E)Join together with other suppliers to help each other make small deliveries
Q4) What is the difference between traditional and cell manufacturing?
Q5) JIT changes happen in sequence because ________________________.
Q6) Successfully implementing JIT requires that it be done as quickly as possible.
A)True
B)False
Q7) What are the three major elements of JIT?
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Chapter 8: Forecasting
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Sample Questions
Q1) CPFR is an iterative process.
A)True
B)False
Q2) The first step in forecasting is:
A)determine what data is available
B)decide what to forecast
C)evaluate and analyze appropriate data
D)select and test the forecast model
E)establish the forecast accuracy requirements
Q3) 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
Q4) Executive opinion is a forecasting method designed to preserve anonymity among the forecasters.
A)True
B)False
Q5) The most frequently used forecasting model is the ____________.
Page 10
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Chapter 9: Capacity Planning and Facility Location
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Sample Questions
Q1) In choosing a location,the transportation method provides an easy way to calculate X and Y coordinates for a good starting point.
A)True
B)False
Q2) Which of the following is not part of decision trees?
A)decision points
B)decision alternatives
C)decision events
D)chance events
E)outcomes
Q3) Finance and Customer Support are the two primary functions interested in capacity planning and location analysis.
A)True
B)False
Q4) The cost of space in Silicon Valley is higher now than it was in the late 1990s.
A)True
B)False
Q5) Capacity planning problems are notorious in ER and other organizations that experience ______________.
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Chapter 10: Facility Layout
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Sample Questions
Q1) A high-volume paper mill is an example of which layout type?
A)inverted
B)circular
C)process
D)fixed position
E)product
Q2) Which popular facility layout software package uses a from-to matrix?
A)CONWIP
B)MRP
C)ALDEP
D)LAYOUT
E)CRAFT
Q3) 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
Q4) Discuss why facility layout is important to a supply chain
Q5) Bottlenecks determines determine maximum output because it
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Chapter 11: Work System Design
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Sample Questions
Q1) If OT = the mean observed time,PRF = the performance rating factor,F = the frequency of occurrence,and PFD = the percentage allowance adjustment based on job time,what is the formula to compute the standard time?
A)(OT)(PRF)(F)
B)(OT)(PRF)(F)(1 + PFD)
C)(OT)(PRF)(F)/ (1 - PFD)
D)(OT)(PRF)/ (F)
E)(OT)(PRF)(F)/ (1 + PFD)
Q2) Typical work elements that occur in many jobs include all except which of the following?
A)insert something
B)tighten something
C)position an item
D)figure out the instructions
E)reach for materials
Q3) What are the steps in methods analysis?
Q4) With respect to costing,what uses does a company have for standard times?
Q5) What are the steps involved in work sampling?
Q6) What are the steps involved in doing a time study?
Page 13
Q7) Jobs that are physically and mentally doable are said to be __________________.
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Chapter 12: Independent Demand Inventory Management
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Sample Questions
Q1) What inventory function protects against supply shortages?
Q2) What are purchased items or extracted materials that will be transformed into components or products called?
A)raw materials inventory
B)finished goods inventory
C)work-in-process inventory
D)distribution inventory
E)MRO inventory
Q3) In a periodic review system,the time between orders should never be based on the EOQ calculation.
A)True
B)False
Q4) World-class companies are known for having zero WIP inventory in their facilities.
A)True
B)False
Q5) What are the two methods for checking record accuracy and what do they do?
Q6) Inventory turnover is the reciprocal of weeks of supply.
A)True
B)False
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Chapter 13: Aggregate Planning
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Sample Questions
Q1) For the level aggregate plan,fluctuations in demand are absorbed by ________________.
A)inventory and subcontracting
B)back orders and price changes
C)inventory and back orders
D)price changes and subcontracting
E)subcontracting and back orders
Q2) Subcontracting has unattractive ________________________ effects.
Q3) The master production schedule is typically stated as:
A)resource requirements
B)sales quotas
C)work-in-process
D)specific finished goods
E)composite products
Q4) An advantage of the chase aggregate plan is that it minimizes finished good holding costs.
A)True
B)False
Q5) In proactive option demand-based aggregate planning,marketing tries to _____ the _____ pattern.
15
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Chapter 14: Resource Planning
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Sample Questions
Q1) Second generation ERP systems addressed the first generation deficiency of:
A)inadequate statistics
B)interdepartmental communications
C)integrated modules
D)continuous planning capabilities
E)forecasting capabilities
Q2) MRP systems require ______________________,______________________,and ______________________ as inputs.
Q3) What are the characteristics of indented bills of materials?
Q4) Discuss the difference between the production and inventory control planners' release order to external suppliers versus the shop floor.
Q5) Which ERP module handles billing?
A)finance and accounting
B)information systems
C)sales and marketing
D)production and materials management
E)human resources
Q6) What transactions can cause information in the inventory records file to change?
Q8) A(n)__________ sets up and runs ERP systems. Page 16
Q7) What are the objectives of second-generation ERP systems?
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Chapter 15: Scheduling
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Sample Questions
Q1) Which of the following is mostly like to be a policy constraint?
A)strike at the supplier's plant
B)raw material shipping problems
C)decreasing market demand
D)no overtime
E)a regular bottleneck in the product process
Q2) If using critical ratio (CR)as the scheduling rule,the job with the smallest ratio of time remaining until due date to the processing time remaining has the lowest priority.
A)True
B)False
Q3) What is throughput?
A)the quantity of finished goods that can be sold
B)the quantity of items moved at the same time from one resource to the next
C)the quantity of work-in-process inventory
D)the quantity produced at a resource before the resource is switched over to produce another product
E)the average flow time of the system
Q4) Define job lateness.
Q5) Eli Goldratt's approach to continuous improvement is called ____________.
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Chapter 16: Project Management
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Sample Questions
Q1) Critical path shows the _______________ completion time for the project.
Q2) The project management approach indicates the timing and the quantity of resources needed.For manufacturing,this input is needed to develop a valid
Q3) With probabilistic time estimates for activities,(o)denotes the
A)median time
B)original time
C)optimistic time
D)pessimistic time
E)most likely time
Q4) Project managers use network planning techniques to ________________________.
A)evaluate costs
B)assign resources to activities
C)estimate how long it will take to assign activities
D)calculate the expected completion time of the project
E)invert activities
Q5) List and briefly describe the phases in the project life cycle.
Q6) What are valid reasons for reducing the time spent finishing a particular project?
Page 19
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Chapter 17: Spreadsheet Modeling: an Introduction
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Sample Questions
Q1) Research has shown that most spreadsheet model developers believe their products to be error-free,but this assessment is usually wrong.
A)True
B)False
Q2) In Excel,what are the three arguments that an INDEX function takes?
A)Lookup_value,Match_type,and Lookup_array
B)Lookup_value,Match_type,and Array
C)Lookup_value,Column_num,and Lookup_array
D)Array,Row_num,and Column_num
E)Lookup_array,Row_num,and Column_num
Q3) Sometimes the things you learn about the real situation during the modeling process are even more important than the numerical results of the model.
A)True
B)False
Q4) One reason for intermediate spreadsheet calculations is management is often interested in more detail than the final results.
A)True
B)False
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Chapter 18: Introduction to Optimization
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Sample Questions
Q1) In Linear Programming models,over what quantities do you have control?
A)decision variables
B)parameters
C)constraints
D)objective variables
E)coefficients
Q2) Not-equals-to constraints ( )are allowable in optimization problems.
A)True
B)False
Q3) Sensitivity reports show what will happen if certain problem parameters are changed from their current values.
A)True
B)False
Q4) Strict inequalities (<,>)are not used in optimization problems.
A)True
B)False
Q5) Discuss how the Solver Sensitivity Report is fundamentally different than the other reports.
Q6) Excel's Solver Add-In solves _____________ problems.
Q7) Describe guidelines for spreadsheet model development.
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Chapter 19: Waiting Line Models
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Sample Questions
Q1) When calculating waiting line metrics you must ensure that the arrival rate and service rate are:
A)for the same day.
B)for the same probability.
C)for the same site.
D)for the same time period.
E)for the same utilization factor.
Q2) Customers generally consider which of the following priority rules to be the fairest?
A)quickest service requirements first
B)longest service requirements first
C)first-come,first-served
D)best customers first
E)highest profit customer first
Q3) A customer population is called finite when the number of potential new customers is affected by the number of customers already in the system.
A)True
B)False
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) In future periods,MPS Shipments - Customer orders between current and next scheduled MPS shipment is called ________________________.
Q2) The MPS available-to-promise row shows:
A)how many committed units the company has
B)how many units manufacturing will produce
C)inventory levels
D)how many uncommitted units the company has available
E)how many uncommitted units sales will promise to sell
Q3) In the "slushy" portion of the MPS,changes in the product mix are possible,but changes needing additional resources are not.
A)True B)False
Q4) Discuss how the MPS is evaluated in terms of cost.
Q5) The master production schedule is a statement of upcoming demand. A)True B)False
Q6) In an MPS record,MPS shipments arrive at the beginning of the time period. A)True B)False
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