Manufacturing Management
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Course Introduction
Manufacturing Management explores the principles, practices, and strategies essential for effective management of manufacturing operations. The course covers topics such as production planning and control, quality management, supply chain logistics, inventory management, and lean manufacturing techniques. Students will learn to analyze and optimize manufacturing processes, integrate technology and automation, and address key challenges in cost, productivity, and sustainability. Through case studies and practical applications, the course prepares students to make informed decisions and implement best practices in contemporary manufacturing environments.
Recommended Textbook
Operations Management Processes and Supply Chains 12th Edition by Lee J. Krajewski
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Page 2
Chapter 1: Using Operations to Create Value
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Q1) At the process level, it is much easier to distinguish whether the process is providing a service or manufacturing a product.
A)True
B)False
Answer: True
Q2) The framework for carrying out all of an organization's functions is:
A) the competitive priority.
B) the corporate strategy.
C) the market analysis.
D) the organizational design.
Answer: B
Q3) A company's ability to quickly introduce a new service or product would be best described as:
A) volume flexibility.
B) variety.
C) consistent quality.
D) development speed.
Answer: D
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Chapter 2: Process Strategy and Analysis
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Q1) A(n) ________ is a bar chart on which the factors are plotted in decreasing order of frequency along the horizontal axis.
Answer: Pareto chart
Q2) Process improvement teams that focus on processes that cut across departmental boundaries have the silo mentality.
A)True
B)False
Answer: False
Q3) The ________ can be represented by a line called a learning curve.
Answer: learning effect
Q4) Customer involvement reflects the ways in which customers become part of the process and the extent of their participation.
A)True
B)False
Answer: True
Q5) ________ are performance measures that are established for a process and the steps within it.
Answer: Metrics
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Chapter 3: Quality and Performance
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Q1) Historically, the average time to service a customer complaint has been 3 days and the standard deviation has been 0.50 day. Management would like to specify the control limits for an \( \bar{x} \) chart with a sample size of 10- and 3- sigma limits. Suppose the average service time from the next 10 samples yielded the following result: 3.2, 2.1, 3.6, 2.8, 3.9, 3.5, 2.7, 4.1, 2.6, and 3.3 days. What conclusion can be drawn?
A) Assuming the process variability is in control, the process average is also in statistical control.
B) Assuming the process average is in control, the process average is out of statistical control.
C) The sample size should be increased.
D) No conclusion can be drawn because there is insufficient data.
Answer: A
Q2) The customer's assessment of quality with reference to the price paid for the good or service is known as ________.
Answer: value
Q3) ________ costs are associated with preventing defects before they happen.
Answer: Prevention
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Chapter 4: Capacity Planning
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Q1) The single milling machine at Fred's Manufacturing was severely overloaded last year. The plant operates 8 hours per day, 5 days per week, and 50 weeks per year. Management prefers a capacity cushion of 20 percent. Two major types of products are routed through the milling machine. The annual demand for product A is 4,000 units and 3,000 units for product B. The batch size for A is 20 units and 30 units for B. The standard processing time for A is 0.5 hours/unit and 0.8 for B. The standard setup time for product A is 2 hours and 8 hours for product B. How many new milling machines are required if Fred's does not resort to any short-term capacity options?
Q2) Give four principal reasons economies of scale can occur when output increases. Provide examples of each for a service firm.
Q3) Use the information in Table 4.1. The company works 250 days per year and operates two shifts, each covering 8 hours. If a 15 percent capacity cushion is maintained, how many hours of capacity can the company expect from each of its Mark I machines?
A) fewer than 3,000
B) between 3,000 and 3,500
C) between 3,501 and 4,000
D) more than 4,000
Q4) What are the four steps involved in making capacity decisions?
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Chapter 5: Constraint Management
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Sample Questions
Q1) Customers demand muffalettas at the rate of 20 sandwiches per hour. Use the information in Table 5.4 to determine the cycle time that will meet this level of demand.
A) 100 seconds
B) 120 seconds
C) 180 seconds
D) 240 seconds
Q2) Use the information in Table 5.1. Using the traditional method, in what sequence should products be scheduled for production?
A) D, C, B, A
B) D, B, A, C
C) C, D, A, B
D) C, D, B, A
Q3) Use the information in Figure 5.1. Where would you expect student wait times to occur?
A) D only
B) B, C and D
C) A only
D) E only
Q4) Explain why a bottleneck limits system output.
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Chapter 6: Lean Systems
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Sample Questions
Q1) A takt time of 90 seconds generates a process output of:
A) 40 units per hour.
B) 30 units per hour.
C) 4 units per hour.
D) 90 units per hour.
Q2) Use the data in Scenario 6.1 to calculate the per unit processing time for Process A if El Gran Raton decides to run a batch size of 360 units. The per unit time is:
A) 310 seconds.
B) 46.67 seconds.
C) 340 seconds.
D) 696.67 seconds.
Q3) Champion Cooling Company uses a kanban system at their location in the Oklahoma City Metroplex. The daily demand for fans is 2,000 and management insists on using an alpha level of 0.1. They use containers that hold 20 items and takes 0.04 of a day to process. It takes 0.07 of a day to get a container filled and for it to wait during its cycle. How many containers should they use? If they use the nearest integer value number of containers, what is the actual system alpha?
Q4) What is the output for a process that has a takt time of 1.25 minutes per unit?
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Chapter 7: Project Management
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Q1) Scope creep is one of the primary causes of project failure.
A)True
B)False
Q2) Which of these is not one of the four categories of project risk?
A) cost/benefit
B) operations
C) strategic fit
D) project team capability
Q3) Using Table 7.13, what is the expected time of completion of the project?
A) fewer than 60 weeks
B) between 60 and 65 weeks
C) between 65 and 70 weeks
D) greater than 70 weeks
Q4) If the sum of the variances on the critical path (and all other network paths) is equal to zero, what is the probability that the project will be completed by its earliest expected completion date?
A) 50 percent
B) 95 percent
C) 100 percent
D) It cannot be determined.
Page 9
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Chapter 8: Forecasting
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Q1) In the winter, Handyman Negri repaired snowblowers and in the summer he earned extra money by repairing lawnmowers, a classic example of:
A) promotional pricing.
B) complementary products.
C) mixed model service.
D) yield management.
Q2) Traditional data processing applications are capable of handling big data.
A)True
B)False
Q3) Use the information provided in Table 8.4. Adding $1,000 of Weekly Radio Advertising (X1) can be expected to increase Weekly Gross Revenues by what amount? (Assume all other variables are held constant.)
A) $20,500
B) $3,750
C) $6,500
D) $10,250
Q4) What are reasonable criteria for selecting one time-series method over another?
Q5) What are some of the principles organizations can observe to improve their forecasting process?
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Chapter 9: Inventory Management
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Questions
Q1) A(n) ________ system is a system designed to track the remaining inventory of an item each time a withdrawal is made to determine whether to replenish the item.
Q2) A store has collected the following information on one of its products:
Demand = 4,500 units/year
Standard deviation of weekly demand = 12 units
Ordering costs = $40/order
Holding costs = $3/unit/year
Cycle-service level = 90% (z for 90% = 1.28)
Lead-time = 2 weeks
Number of weeks per year = 52 weeks
a. If a firm uses the continuous review system to control the inventory, what would be the order quantity and reorder point?
b. The firm decided to change to the periodic review system to control the item's inventory. For the most recent review, an inventory clerk checked the inventory of this item and found 300 units. There were no scheduled receipts or backorders at the time. How many units should be ordered? (Hint: Use the EOQ model to derive P, the time between reviews.)
Q3) A ________ lever is one that must be activated if inventory is to be reduced.
Q4) The ________ determines the frequency and quantity to order.
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Chapter 10: Operations Planning and Scheduling
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Sample Questions
Q1) What is a product family?
Q2) Use the information in Table 10.10. Which job will be the first one completed if scheduling is done using the earliest due date (EDD) rule?
A) B
B) C
C) D
D) E
Q3) Use the information in Table 10.1. Which of these changes would result in the greatest improvement (in terms of total cost) for the production plan?
A) Increase anticipation inventory to 30 units at the start of the first month.
B) Reduce anticipation inventory to 18 units at the start of the first month.
C) Increase anticipation inventory to 40 units at the start of the first month.
D) Reduce anticipation inventory to 10 units at the start of the first month.
Q4) Advanced planning and scheduling systems (APS) seek to optimize resources across the supply chain and align daily operations with strategic goals.
A)True
B)False
Q5) What is a mixed-strategy approach to sales and operations planning?
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Chapter 11: Resource Planning
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Q1) The periodic order quantity (POQ) rule tends to keep more inventory on hand than the lot-for-lot rule, but less inventory on hand than the fixed order quantity rule.
A)True
B)False
Q2) Use Scenario 11.2 to answer this question. How many additional units of F are needed to produce twelve end items?
A) 174
B) 192
C) 182
D) 160
Q3) A front-office module for an ERP system includes:
A) manufacturing.
B) accounting and finance.
C) sales and marketing.
D) human resources.
Q4) Gross requirements are the total demand derived from all parent production plans. A)True
B)False
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Chapter 12: Supply Chain Design
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Sample Questions
Q1) Responsive supply chains work best when frequent product introduction exists.
A)True
B)False
Q2) What is mass customization and what advantages does a producer benefit from if they can realize it?
Q3) Use Scenario 12.2 to answer the question. At what volume of students does Wisconsin become preferred over an Oklahoma choice?
A) 1,000 students
B) 1,250 students
C) 1,500 students
D) 1,750 students
Q4) Which one of the following is True for supply chain management?
A) Supply chain applies to both manufacturing and service organizations.
B) Supply chain applies only to manufacturing because it deals with flow of materials.
C) Supply chain is about suppliers and does not include distributors or customers.
D) Supply chain includes any operation that deals with materials.
Q5) Compare and contrast efficient versus responsive supply chains.
Q6) ________ is essentially standardization in chunks.
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Chapter 13: Supply Chain Logistic Networks
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Sample Questions
Q1) Use the information in Table 13.6. Assume that two plants, rather than one, are to be located. Plant 1 serves distribution centers A, B, and C. Plant 2 serves distribution centers
D and E. What is the center of gravity for plant 1?
A) x 4, y 7
B) x 4, y 7
C) x 4, y 7
D) x 4, y 7
Q2) What are the components and capabilities of a geographical information system?
Q3) Service location decisions are driven primarily by the operating costs at the locations under consideration.
A)True
B)False
Q4) Use the information in Table 13.7. If the plant is located at the coordinates (5, 5), what is the total load-distance score, assuming rectilinear distance?
A) less than or equal to 600
B) more than 600 but less than or equal to 700
C) more than 700 but less than or equal to 800
D) more than 800
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Chapter 14: Supply Chain Integration
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Q1) Which of the following statements about cross-docking is not correct?
A) Cross-docking is packing products on incoming shipments so they can be easily sorted for outgoing shipments based on their final destination.
B) Cross-docking reduces inventory and storage space requirements, but handling costs and lead times tend to increase.
C) Items are moved from incoming vehicles to outgoing vehicles without being stored in warehouse inventory.
D) Inbound and outbound shipments must be tightly coordinated for cross-docking to work.
Q2) The bullwhip effect results in greater demand variability at the ________ end of the supply chain and lesser demand variability at the ________ end of the supply chain.
Q3) ________ is an extreme application of the forward placement tactic.
Q4) Define the term logistics and briefly discuss any three important logistics decisions.
Q5) Draw a graph illustrating the bullwhip effect and discuss its impact on the measures of supply chain performance.
Q6) What are five ways to minimize the bullwhip effect in supply chains?
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Chapter 15: Supply Chain Sustainability
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Q1) Some original equipment manufacturers (OEMs) that participate in remanufacturing attempt to limit the cannibalization of new product sales by:
A) charging more for remanufactured products than for new products.
B) requiring a new product to be purchased with every purchase of a remanufactured item.
C) establishing floors on the prices that are charged for remanufactured products.
D) refusing to provide a warranty on remanufactured products.
Q2) In some disaster relief efforts ________ is a problem because stocks of some supplies are excessive and for other supplies, stocks are non-existent.
Q3) What are some of the steps the authors suggest firms take to ensure that their supply chains are sustainable?
Q4) ________ as measured in pounds per cubic foot, is one means of determining how energy efficient a firm is behaving.
Q5) What pressures do organizational leaders feel in the area of sustainability?
Q6) In what ways is reverse logistics management more difficult than the management of more typical supply chain flows?
Q7) The life cycle of a disaster relief supply chain begins with the ________ step.
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Chapter 16: Supplement A Decision Making
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Q1) Commodore is debating whether to produce the printed circuit boards for a new line of video cameras or outsource their production to a company that specializes in this operation. Strictly from a cost standpoint, production of the circuit boards would definitely be outsourced if:
A) the variable cost of producing the circuit boards is lower than the buy option.
B) the production volumes are greater than Commodore's break-even quantity.
C) the production volumes are less than Commodore's break-even quantity.
D) the production volumes are the same for making and buying the circuit boards.
Q2) Using the information in Table A.2, which alternative is best in accordance with a pessimistic outlook?
A) A
B) B
C) C
D) D
Q3) Under what conditions can decision trees be useful?
Q4) Given a payoff table in a decision making under risk scenario, what value is derived from applying the following decision rule? Apply all four criteria presented in your book and choose the alternative that is selected more frequently than the others.
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Chapter 17: Supplement J Operations Scheduling
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Q1) Training workers on a variety of machines and tasks decreases flexibility of operations and leads to labor-limited environments.
A)True
B)False
Q2) Use the information in the table and sequence the jobs using the EDD rule. What is the average past due?
A) fewer than or equal to 32 hours
B) greater than 32 hours but fewer than or equal to 34 hours
C) greater than 34 hours but fewer than or equal to 36 hours
D) greater than 36 hours
Q3) Use the information in Table J.6. What is the average flow time at Workstation A for the critical ratio rule?
A) fewer than or equal to 8 hours
B) greater than 8 hours but fewer than or equal to 9 hours
C) greater than 9 hours but fewer than or equal to 10 hours
D) greater than 10 hours
Q4) What are multiple-dimension scheduling rules? Provide examples and discuss how each rule performs.
Q5) ________ is the total amount of time required to complete a group of jobs.
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Chapter 18: Supplement K Layout
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Q1) A layout is the physical arrangement of human and capital resources used by processes clustered together into operations.
A)True
B)False
Q2) Use the information in Figure K.3. What is the Euclidean distance between offices A and C?
A) less than or equal to 25 feet
B) greater than 25 but less than or equal to 45 feet
C) greater than 45 but less than or equal to 65 feet
D) greater than 65 feet
Q3) Using Figure K.6, what is the rectilinear distance between the dean's office and the opposite corner of this great space, area 8?
A) 60'
B) 42'
C) 30'
D) 15'
Q4) A(n) ________ gives the relative importance of each pair of operations or departments being located close together.
Q5) Describe what is depicted in the visual representation of the detailed layout.
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Chapter 19: Supplement B Waiting Lines
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Q1) With a single-server model, increasing the service rate while holding all other factors constant will:
A) increase the utilization of the server.
B) increase the time spent per customer.
C) decrease the probability that there are two customers in the system at any time.
D) decrease the arrival rate of customers.
Q2) The mean of the Poisson distribution is equal to its standard deviation.
A)True
B)False
Q3) The average lead time of a unit of product through a manufacturing station is 18 minutes. The average work-in-process inventory at this station has been 30 pieces. What is the production rate?
A) 0.33 piece per minute
B) 0.83 piece per minute
C) 1.66 pieces per minute
D) 3.0 pieces per minute
Q4) A ________ is a single step in the service process.
Q5) A(n) ________ is a single step in providing a service.
Q6) Explain how waiting lines can develop even when the service time is a constant.
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Chapter 20: Supplement C Special Inventory Models
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Q1) In a noninstantaneous replenishment model, as the daily demand approaches the daily production rate, the:
A) number of production runs per year decreases.
B) length in days of a production run increases.
C) economic lot size increases.
D) time between production runs decreases.
Q2) Walter White must satisfy an annual demand of 50,000 pounds per year. The setup cost for each batch is $6,500 and once the setup is complete, the product may be produced at the rate of 1800 pounds per day. There is a holding cost of $15 per unit per year and the plant operates on a 350-day production year. How big should the production batch be and how long (in days) will it take to produce the batch?
Q3) Use the information in Scenario C.3. What is the payoff when 40 units are ordered but a demand of 30 materializes?
A) $0
B) $100
C) $350
D) $450
Q4) The ________ is the optimal lot size in situations in which replenishment is not instantaneous.
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Chapter 21: Supplement D Linear Programming
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Q1) Use the information in Table D.3. Given the information in the optimal tableau, what is the demand forecast for quarter 2?
A) fewer than 30 units
B) greater than 30 units but fewer than or equal to 35 units
C) greater than 35 units but fewer than or equal to 40 units
D) greater than 40 units
Q2) Referring to Scenario D.1, which of the following statements is best?
A) Making the cat food out of only eggs is optimal
B) Making the cat food out of only eggs is less expensive than making it out of only tomatoes.
C) Making the cat food out of only eggs means that the Vitamin B constraint would not be satisfied.
D) Making the cat food out of only chicken means the Vitamin B constraint would not be satisfied.
Q3) The simplex method deals exclusively with corner points
A)True
B)False
Q4) ________ is useful for allocating scarce resources among competing demands.
Q5) What are the assumptions of linear programming? Provide examples of each.
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Chapter 22: Supplement E Simulation
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Q1) ________ occurs when the simulation is repeated over enough time that the average results for performance measures remain constant.
Q2) Simulation is the process of reproducing the behavior of a system using a model that describes the processes of the system.
A)True
B)False
Q3) ________ uses random numbers to generate simulation events.
Q4) Using a simulation model to gather a year of operating data in a few minutes is known as:
A) historical search data collection.
B) Monte Carlo optimization.
C) sub-optimization.
D) time compression.
Q5) Any random number has the same likelihood of being selected as any other, regardless of how recently it has been selected.
A)True
B)False
Q6) ________ are random events that the decision maker cannot control.
Q7) What is meant by time compression in a simulation model?
Page 24
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Chapter 23: Supplement F Financial Analysis
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Q1) Acapella University offers to lock-in a student's tuition for a four year period. If tuition is $30,000 per year (payable at the end of each year) and the interest rate is currently 8%, what amount of money now would enable you to withdraw the $30,000 figure at the end of each of the next four years?
Q2) The net present value (NPV) method evaluates an investment by calculating the present values of all after-tax total cash flows and then subtracting the original investment amount from their total.
A)True
B)False
Q3) The reduction of the value of money received in the future when the interest rate is known is called ________.
Q4) Conhugeco is eyeing a new Plotzer 3,000, which has a list price of $12,000,000. How much should they set aside today if they want to make their purchase one year from now and their interest-bearing checking account pays 3% annually?
A) about $11.6 million
B) about $11.2 million
C) about $12.3 million
D) about $12.8 million
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Chapter 24: Supplement G Acceptance Sampling Plans
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Q1) Increasing c while holding n constant decreases the ________ risk and increases the ________ risk.
Q2) If the sample size is increased and the acceptance level is unchanged, the OC curve will have a slope that is more negative.
A)True
B)False
Q3) Which one of the following will increase the consumer's risk?
A) Decrease sample size and hold constant the number of defective items in a sample.
B) Decrease the acceptable number of defective items in a sample and hold constant the sample size.
C) Increase the sample size and decrease the acceptable number of defective items in a sample.
D) Decrease the acceptable quality level and hold constant both sample size and the acceptable number of defective items in a sample.
Q4) Describe the process of a double-sampling plan.
Q5) A double-sampling plan requires two sample sizes and two acceptance numbers.
A)True B)False
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Chapter 25: Supplement H Measuring Output Rates
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Q1) A time study analyst has found the select time for a work element to be 14.0 minutes, with a sample standard deviation of 3.2 minutes. What is the minimum sample size needed if the estimate is to be within 4 percent of the average 95 percent of the time (z = 1.96)?
A) fewer than 100
B) greater than or equal to 100 but fewer than 140
C) greater than or equal to 140 but fewer than 180
D) greater than or equal to 180
Q2) Which one of the following statements about work measurement is True?
A) Work sampling is a technique to determine the proportion of time spent on different activities.
B) In determining the normal time for the cycle, using a rating factor less than one (1.0) will increase the total time allowed for a job to be performed, relative to the select time.
C) Machine standards are more difficult to develop than labor standards.
D) The time study method is most appropriate for non-repetitive jobs in which the nature of the task differs each time.
Q3) Name the four steps in a time study.
Q4) Why is a sampling schedule important in a work sampling study?
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Chapter 26: Supplement I Learning Curve Analysis
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Q1) The annual report for Luddite Corporation boasted of their ERP implementation and noted that, "while there were initially some growing pains, our learning rate for this system has been calculated at 100%." What are the implications of this statement?
A) Luddite Corporation is twice as fast processing transactions now.
B) Luddite Corporation is twice as slow processing transactions now.
C) Luddite Corporation processes transactions at the same rate now.
D) Luddite Corporation processes transactions instantaneously (takes zero time) now.
Q2) When production time standards are being developed for a brand new process for several of the hand assembly components of the production line, what are the implications of learning effects on the time standards and the line balance? What could be done to address this situation?
Q3) Using the information in Case I.1, what is the minimum number of employees needed in month 3?
A) fewer than 20 employees
B) greater than or equal to 20 employees but fewer than 30 employees
C) greater than or equal to 30 employees but fewer than 40 employees
D) greater than 40 employees
Q4) How are learning curves useful in financial planning?
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