Manufacturing Management
Final Test Solutions
Course Introduction
Manufacturing Management explores the principles, techniques, and practices involved in planning, organizing, directing, and controlling manufacturing operations. This course covers topics such as production planning and control, quality management, lean manufacturing, supply chain management, and continuous improvement. Students will learn how to optimize resources, improve process efficiency, implement quality initiatives, and address challenges associated with modern manufacturing environments. Emphasis is placed on integrating managerial concepts with technological innovations to sustain competitive advantage and achieve operational excellence in manufacturing settings.
Recommended Textbook
OM 4th Edition by
David Alan Collier
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23 Chapters
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Chapter 1: Goods, Services, and Operations Management
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Sample Questions
Q1) Computer software would be an example of A)an intangible good
B)a nondurable good
C)a service
D)a value creation process
Answer: B
Q2) Many business-to-business manufacturers think of the physical good they produce as peripheral to their service offerings.
A)True
B)False
Answer: True
Q3) Ensuring that a credit card has accurate customer information and is delivered quickly to the customer is an example of inventory management in OM.
A)True
B)False Answer: False
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Page 3
Chapter 2: Value Chains
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Sample Questions
Q1) ____ integration refers to acquiring capabilities at the front of the supply chain, whereas ____ integration refers to acquiring capabilities toward the back end of the supply chain.
A)Vertical, horizontal
B)Upward, downward
C)Forward, backward
D)Backward, forward
Answer: C
Q2) A supply chain is more inclusive than a value chain.
A)True
B)False
Answer: False
Q3) Define value and discuss three (3) ways for organizations to increase value.
Answer: Value is the perception of the benefits associated with a good, service or bundle of goods and services in relation to what buyers are willing to pay for them.A simple way of expressing value is: Perceived benefits/price (cost) to the customer.To increase value, an organization must...
a) increase perceived benefits while holding price or cost constant
b) increase perceived benefits while reducing price or cost, or
c) decrease price or cost while holding perceived benefits constant
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Chapter 3: Measuring Performance in Operations
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Sample Questions
Q1) In choosing performance measures, an organization might consider all of the following criteria except
A)Is the measure actionable?
B)Is the measure based on behavioral performance?
C)Is the measure important to customers?
D)Does the measurement support the firm's mission?
Answer: B
Q2) The service-profit chain model
A)is based on a set of cause-and-effect linkages
B)is only focused on internal performance
C)was designed first for manufacturing organizations
D)is focused on equipment utilization
Answer: A
Q3) Measures and indicators of product and service performance that have a strong correlation with customer satisfaction are appropriate to monitor.
A)True
B)False
Answer: True
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Chapter 4: Operations Strategy
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Q1) Which one of the following statements is true with respect to McDonald's operations and strategy?
A)The #1 competitive priority is demand flexibility.
B)Prof.Terry Hill's strategy framework cannot be applied to services such as McDonald's.
C)There is only one standardized way (process) to make French fries in over 30,000 stores worldwide.
D)McDonald's vision is to produce the world's best hamburger.
Q2) Which of the following does not describe how customers evaluate services in a manner that differs from the way they evaluate goods?
A)Customers rely on more information from personal sources.
B)Customers perceive greater risks.
C)Customers cannot form a priori expectations of expected service quality.
D)Dissatisfaction often results from a customer's inability to properly co-produce the service.
Q3) With regard to the Lawn Care Company case study, explain how the (a) physical product (i.e., grass seed and fertilizer) and (b) lawn application service life cycles are related? What are the implications? You might also want to use a graph.
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Page 6
Chapter 5: Technology and Operations Management
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Sample Questions
Q1) The acronym ICT stands for Information and Communication Technology.
A)True
B)False
Q2) A company such as eBay relies more on soft technology than hard technology.
A)True
B)False
Q3) Differentiate between hard technology and soft technology.
Q4) E-Service refers to using the Internet and technology to provide services that create and deliver time, place, information, entertainment and exchange value to customers and/or support the sale of goods.
A)True
B)False
Q5) Which of the following is not a stage in technology development and adoption?
A)Birth
B)Turbulence
C)Build-out
D)Decline
Q6) How does customer relationship management (CRM) help a firm gain competitive advantage?
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Q7) Describe the three stages of the technology development and adoption process.
Chapter 6: Goods and Service Design
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Sample Questions
Q1) A check processing operation would be an example of a low-contact system.
A)True
B)False
Q2) In design specification terminology, the target dimension is called A)nominal
B)exceptional
C)bull's-eye
D)goal
Q3) Taguchi's loss function is most closely associated with A)design failure-mode-and-effects analysis
B)reliability calculation
C)tolerance design
D)prototype testing
Q4) The process by which the service is created and delivered is, in essence, the service itself..
A)True
B)False
Q5) Explain the concept of Design for Manufacturability (DFM).
Q6) Differentiate between high customer contact systems and low customer contact systems.Include examples of each.
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Chapter 7: Process Selection, Design, and Analysis
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Sample Questions
Q1) Appliances and iPods are examples of ____ goods.
A)Custom
B)Option
C)Standard
D)Assemble to order
Q2) In service operations, significant volume increases can and frequently are made without changes in the service process, as would be expected in manufacturing.
A)True
B)False
Q3) Differentiate among custom, option and standard goods and services.Also give a goods and a service example of each.
Q4) A Department of Motor Vehicle (DMV) testing center currently has six (6) testers who test 68 drivers per day.Each tester can test twelve (12) drivers per day.Testers are complaining about being too busy and the center being understaffed.In order for there to be 80% utilization of the testers, how many testers should be added at the center?
Q5) Compare and contrast a product-process matrix with a service positioning matrix.
Q6) Explain Little's Law and how it can be used.
Q7) Explain why the product-process matrix does not transfer well to services.
Page 9
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Chapter 8: Facility and Work Design
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Sample Questions
Q1) Which of the following is not a common approach for designing process layouts?
A)CRAFT
B)ALDEP
C)NIOSH
D)CORELAP
Q2) The production of large goods such as airplanes is best accomplished using a ____ layout.
A)Product
B)Process
C)Cellular
D)Fixed position
Q3) ____ is vertical expansion of job duties to give the worker more responsibility.
A)Job enlargement
B)Job rotation
C)Job enrichment
D)Job design
Q4) Cycle time should be smaller than the largest operation time.
A)True
B)False
Q5) Discuss the advantages and disadvantages of utilizing virtual teams.
Page 10
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Chapter 9: Supply Chain Design
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Sample Questions
Q1) Large order sizes and frequent price changes will reduce the bullwhip effect in a supply chain.
A)True
B)False
Q2) Accurate forecasts are more critical to a pull system.
A)True
B)False
Q3) Explain the difference between a supply chain and a value chain.
Q4) Which is true regarding a responsive supply chain?
A)Demand is stable and predictable.
B)Product life cycles are short and change often because of innovation.
C)Customers require standardization.
D)Contribution margins are low.
Q5) Explain the typical structure of a supply chain.
Q6) Describe how supply chains should be designed for multisite management situations.
Q7) Both economic and noneconomic factors should play an important role in location decisions in supply and value chains.
A)True
B)False
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Chapter 10: Capacity Management
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Sample Questions
Q1) For a non-bottleneck activity,
A)Utilization must be near 100%
B)An hour lost has no effect on total process or factory output
C)Use large order sizes to minimize setups
D)Work-in-process buffer inventory should be placed in front of non-bottlenecks
Q2) Safety capacity or a capacity cushion is
A)Needed for processes with little demand variability
B)Generally higher in a job shop
C)Not appropriate for service organizations
D)Provided for anticipated events
Q3) Safety capacity or a capacity cushion is
A)needed for processes with little demand variability
B)provided for anticipated events
C)generally higher in a job shop
D)not appropriate for service organizations
Q4) Define Economies of Scale and Diseconomies of Scale.Explain how they relate to capacity decisions.
Q5) Revenue management systems are vital to most manufacturing organizations.
A)True
B)False
12
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Chapter 11: Forecasting and Demand Planning
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Sample Questions
Q1) Define forecast error and describe ways that it is measured.
Q2) Define regression analysis and explain how it is an approach to forecasting.
Q3) A group of international experts published a set of principles of forecasting that includes all of the following except
A)Use quantitative rather than qualitative methods.
B)Combine forecasts from approaches that are similar.
C)Ask experts to justify their forecasts in writing.
D)Use multiple measures of forecast accuracy.
Q4) What is a time series, and what types of characteristics typically make up time series?
Q5) An R<sup>2</sup> of 0.80 means
A)80% of the variability in the independent variable is explained by the dependent variable
B)80% of the variability in the dependent variable is explained by the independent variable
C)80% of the variability in the dependent variable is not explained by the independent variable
D)Multiple regression was used
Q6) Explain how forecasting is used at different levels of an organization.
Page 13
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Chapter 12: Managing Inventories
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Sample Questions
Q1) In general, total ordering costs are equal to total inventory holding cost for the optimal solution to the EOQ model.
A)True
B)False
Q2) Work in process inventory is completed products ready for distribution or sale to customers.
A)True
B)False
Q3) Which of the following is not a component of holding cost?
A)Taxes
B)Insurance
C)Material handling
D)Order processing
Q4) Which is not an advantage of the periodic review system?
A)Helps to control "A" items
B)Inventory need not be monitored continually
C)Useful when a large number of items is ordered from the same supplier
D)Consolidated shipments lower freight costs
Q5) Explain the difference between independent demand and dependent demand.
Q6) Explain the ABC inventory classification.
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Chapter 13: Resource Management
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Sample Questions
Q1) Promotion of weekly discount airfares by an airline would be an example of ____.
A)Demand management
B)Production rate changes
C)Inventory changes
D)Facility, equipment, and transportation changes
Q2) A(n) ____ is a statement of how many finished items are to be produced and when they are to be produced.
A)Aggregate Plan
B)Master Production Schedule
C)Material Requirements Plan
D)Capacity Requirements Plan
Q3) Resource management deals primarily with managing inventories in a value chain.
A)True
B)False
Q4) The purpose of the master schedule is to translate the aggregate plan into a separate plan for individual finished goods.
A)True
B)False
Q5) Define Material Requirements Planning (MRP) and how it can benefit an organization.
15
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Chapter 14: Operations Scheduling and Sequencing
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Sample Questions
Q1) For a single processor, a first-come, first-served (FCFS) rule minimizes the average flow time because customer waiting time will be minimized.
A)True
B)False
Q2) The SPT sequencing rule will maximize the average flow time.
A)True
B)False
Q3) Explain why any sequence chosen in the single-machine scheduling problem will not change makespan time.
Q4) UPS, the world's largest package delivery company, is highly dependent on scheduling but not sequencing.
A)True
B)False
Q5) Scheduling refers to specifying
A)The sequence that jobs must be completed
B)The due date for each job
C)The start and completion times of jobs
D)The makespan of each job
Q6) Describe Johnson's sequencing rule for the two-resource sequencing problem.
Page 16
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Chapter 15: Quality Management
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Sample Questions
Q1) Performance standards in services are analogous to manufacturing specifications.
A)True
B)False
Q2) Joseph Juran preached the "14 Points" for management in his quality philosophy.
A)True
B)False
Q3) Which of the following describes the quality definition of fitness for use?
A)Perfection and consistency in goods and service quality
B)Doing it right the first time
C)Conforming to design specifications
D)The ability of a good or service to meet customer needs
Q4) A Pareto diagram helps to understand the relationships between two variables and to verify possible cause and effect hypotheses.
A)True
B)False
Q5) Define root cause and describe root cause analysis.
Q6) The most relevant definition of quality for an operations manager is "conformance to specifications."
A)True
B)False
Page 17
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Chapter 16: Quality Control and Spc
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Sample Questions
Q1) Define Statistical Process Control (SPC) and differentiate between common cause and special (or assignable) cause variation.
Q2) Historically, the average proportion of defective bars has been 0.015.Samples of 100 bars each are taken.Construct a p-chart using z = 3.Suppose a sample had 0.044 defectives.What would you do?
A)Nothing; it appears to be random variation.
B)Look for assignable causes.
C)Delete the sample with 0.044 defects and take another sample that is better.
D)None of these choices
Q3) A system governed only by common causes is called a stable system.
A)True
B)False
Q4) Which is not related to a discrete metric?
A)Counting
B)Visual inspection
C)Good or bad
D)Time
Q5) Discuss the three basic quality control practices used in manufacturing.
Q6) Explain and give the significance of the 1:10:100 Rule.
Q7) Define "quality at the source."
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Chapter 17: Lean Operating Systems
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Q1) JIT systems are based on the concept associated with pull systems rather than push systems.
A)True
B)False
Q2) Which of the following "lean" ideas is false?
A)Activities not adding value are a waste.
B)Accidents are a form of waste.
C)A pull system produces waste.
D)Overproduction is a form of waste.
Q3) Explain the 5Ss.
Q4) Six Sigma addresses visible problems in processes; lean production is more concerned with less visible problems.
A)True
B)False
Q5) Quality at the source requires
A)Starting with a plan
B)Having reliable suppliers
C)Doing it right the first time
D)Having a good design
Q6) Define lean enterprise and the four principles of lean operating systems.
Page 19
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Chapter 18: Project Management
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Q1) Which step in the project management process would involve developing alternative plans in anticipation of problems that might arise?
A)Project definition
B)Resource planning
C)Project scheduling
D)Project control
Q2) When the beta probability distribution is used to characterize uncertain activity times, the distribution of the project completion time will also have a beta probability distribution.
A)True
B)False
Q3) Project managers need to be specialists, not generalists.
A)True
B)False
Q4) Because the preparation of annual reports is done on a repeating basis, project management techniques are not appropriate.
A)True
B)False
Q5) List at least six principal factors (contributors) to project success.
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Chapter 19: Work Measurement, Learning Curves, and Standards
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Q1) A company manufactures computer parts.They have received an order for 100 custom disc drives.It is estimated that the first drive will take 20 hours of shop time and an 80% learning curve is expected.The labor rate is $15.00 and the pricing policy is to charge 3 times the labor cost.
a.How many hours will the 100th disc drive take?
b.How many hours will the entire order take?
c.What is the price of the entire order?
d.What is the price per unit?
Q2) For a time study, it is assumed the distribution of task times follow a Poisson distribution.
A)True
B)False
Q3) The groups best suited to set work standards are managers with input from industrial engineers.
A)True
B)False
Q4) Unavoidable delays should not be included in time studies.
A)True
B)False
Q5) How do predetermined standards differ from time studies?
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Chapter 20: Queuing Analysis
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Sample Questions
Q1) For a single-server queuing model, the utilization factor \(\lambda\) / \(\mu\) has to be
A)less than one
B)equal to one
C)greater than one
D)less than or equal to one
Q2) By using two-servers for airport check-ins instead of one, the imputed cost of waiting goes up.
A)True
B)False
Q3) In queuing models, what are "channels"?
A)the walking paths through service systems
B)service phases
C)the number of waiting lines in a system
D)external sources from which customers originate
Q4) Describe seven operating characteristics of a waiting line (no formulas).
Q5) Describe at least four queue disciplines.
Q6) Discuss the seven key assumptions for the multiple-server waiting line model.
Q7) Discuss the five key assumptions for the basic, single-channel waiting line model.
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Chapter 21: Modeling Using Linear Programming
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Q1) For linear programming to work for project crashing decisions, a dummy activity is needed at the beginning of the project, with a duration of zero (0) time.
A)True
B)False
Q2) A company has normal capacity for 2,500 units a month.If, for a given month, X = demand, which of the following correctly allows for either overtime or under-time in a given month?
A)X<sub>t</sub> + O<sub>t</sub> - U<sub>t</sub> = 2,500
B)X<sub>t</sub> - O<sub>t</sub> + U<sub>t</sub> = 2,500
C)X<sub>t</sub>- O<sub>t</sub> + U<sub>t</sub> < 2,500
D)X<sub>t</sub> + O<sub>t</sub> - U<sub>t</sub> > 2,500
Q3) (a month's production) + (beginning inventory) - (ending inventory) - (number of lost sales for the month) =
A)Overtime limits
B)Demand in the month
C)Increase in product
D)Decrease in production
Q4) Discuss the concept of constrained optimization.Include some examples.
Q5) Explain the essence of a blending problem.
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Chapter 22: Simulation
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Q1) Explain the major differences between a fixed-time and a next-event simulation model.Include advantages and disadvantages of each.
Q2) Define simulation and give some operations management examples.
Q3) A computer implementation free from logical errors and bugs refers to
A)Verification
B)Validation
C)Simulation
D)ProcessModel
Q4) Face validity involves asking people familiar with the real system to evaluate the assumptions and logic of a model.
A)True
B)False
Q5) Needing the actual time of arrival and actual time of serving relates best with
A)Fixed-time-incremental simulation
B)Next-event simulation
C)Random numbers
D)Queuing formula
Q6) Discuss three advantages and three disadvantages of simulation models.
Q7) Differentiate and explain the importance of verification and validation.
Page 24
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Chapter 23: Decision Analysis
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Q1) The decision criterion, for a one-time decision without event probabilities, that is neither aggressive nor conservative is
A)maximax
B)maximin
C)minimax regret
D)expected value
Q2) All of the following are characteristics of management decisions for which decision analysis techniques apply except
A)They must be important
B)They are probably unique
C)They are usually deterministic
D)They are complex
Q3) Uncertainty refers to not knowing what will happen in the future.Which of the following least applies to uncertainty?
A)Usually does not involve a sequence of decisions
B)Little or no data available
C)Some data is very expensive
D)Some data is time-consuming to obtain
Q4) Explain the structure and purpose of a decision tree.
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