Operations Management Practice
Questions
Course Introduction
Operations Management is a foundational course that explores the principles, strategies, and practices involved in transforming resources into goods and services efficiently. The course examines key concepts such as process analysis, quality management, inventory control, supply chain management, and project planning. Students learn to analyze operations systems, identify bottlenecks, and apply quantitative and qualitative tools to optimize productivity, reduce costs, and enhance organizational performance. Through case studies and real-world examples, the course equips learners with the skills necessary to manage operations in diverse industries, fostering decision-making capabilities to address operational challenges and drive continuous improvement.
Recommended Textbook Operations and Supply Chain Management 14th Edition by F. Robert Jacobs
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Chapter 1: Introduction
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Q1) The supply network as can be thought of as a pipeline through which cash, material and information flows.
A)True
B)False
Answer: False
Q2) "Supply chain" refers to processes that move information and material to and from the manufacturing and service processes of the firm.
A)True
B)False
Answer: True
Q3) What is a major industry and university program aiming to apply the latest concepts in information technology to continue to improve service productivity of technology-based organizations called?
Answer: service science management and engineering (SSME
Explanation: A direct response to the growth of services is the development of a major industry and university program called service science management and engineering (SSME).SSME aims to apply the latest concepts in information technology to continue to improve service productivity of technology-based organizations.
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Chapter 2: Strategy
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Q1) Infrastructure decisions within operations strategy include the selection of the appropriate technology, the role of inventory, and the location of facilities.
A)True
B)False
Answer: False
Q2) Activity-system maps are useful in understanding how well a system of activities fits the overall company's strategy.
A)True
B)False
Answer: True
Q3) Which of the following is a total measure of productivity?
A)Output/Materials
B)Output/(Labor + Capital + Energy)
C)Output/Labor
D)Output/Inputs
E)All of these
Answer: D
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Chapter 3: Design of Products and Services
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Q1) Ecodesign replaces one or more of the other requirements considered in the design process.
A)True
B)False
Answer: False
Q2) Design for manufacturing and assembly delivers product improvements by emphasizing which of the following?
A)Reducing product quality during the assembly process
B)Simplification of the product by reducing the number of separate parts
C)Reducing equipment in the production process
D)Designing products so they can be manufactured by a virtual factory
E)Designing products that customers will want
Answer: B
Q3) What is the name for a matrix that helps a product design team translate customer requirements into operating and engineering goals?
Answer: house of quality
Explanation: By building a house of quality matrix, the cross-functional QFD team can use customer feedback to make engineering, marketing, and design decisions.
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Chapter 4: Project Management
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Q1) The critical path in a CPM analysis is always the shortest path through the network.
A)True
B)False
Q2) The critical path of activities in a project is the sequence of activities that form the shortest chain in a project network of activities.
A)True
B)False
Q3) Calculating the early start and early finish times for each activity in a CPM analysis does not provide any useful information.
A)True
B)False
Q4) Complex projects are often subdivided into a series of tasks that are typically configured to be not longer than several months in duration.
A)True
B)False
Q5) What is the criterion for determining whether a project activity is on the "critical path" or not?
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Chapter 5: Strategic Capacity Management
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Q1) The larger the capacity cushion, the better.
A)True
B)False
Q2) The objective of strategic capacity planning is to determine the overall capacity level of capital intensive resources (including facilities, equipment, and overall labor force size) that best supports the company's short-range competitive strategy.
A)True
B)False
Q3) What is an important difference between capacity planning in services and capacity planning in manufacturing operations?
A)Time
B)Location
C)Demand volatility
D)Utilization affects service
E)All of these
Q4) If demand for product A were forecast at 1,000,000 units for the coming year and your factory has trained labor and equipment sufficient to produce 150,000 units per month, is the capacity cushion positive or negative? ____________________
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Chapter 6: Learning Curves
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Q1) The unit improvement factor is not as useful as arithmetic tabulation of learning curve statistics in adjusting time estimates for learning.
A)True
B)False
Q2) The 50<sup>th</sup> repetition of a job is timed at 100 minutes.If the learning curve for this job is 90 percent, what is the estimated time for the 200<sup>th</sup> repetition of this job?
A)44.69 minutes
B)81 minutes
C)90 minutes
D)100 minutes
E)110 minutes
Q3) You time someone completing a single task the first time at 10 minutes, and the second time they do the task it takes 9 minutes.You should use an 80 percent learning curve to estimate the length of time this worker will take to complete this task in the future.
A)True
B)False
Q4) What are some of the factors that stimulate learning?
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Chapter 7: Manufacturing Processes
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Q1) One methodology used to evaluate equipment investment decisions where the investment entails an initial investment, fixed costs, and variable costs is break-even analysis.
A)True
B)False
Q2) An example of an assemble-to-order firm is Dell Computer.
A)True
B)False
Q3) Describe the implications of the product-process matrix for process design in a competitive situation.
Q4) Assemble-to-order means moving the customer order decoupling point from finished goods to components.
A)True
B)False
Q5) Break-even analysis can only be used in production equipment decision making when dealing solely with fixed costs, not variable costs.
A)True
B)False
Q6) Give an example of a project layout.______________________
Page 9
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Chapter 8: Facility Layout
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Q1) Using the assembly-line balancing procedure, which of the following is the required cycle time if the production time in minutes per day is 1,440 and the required output per day in units is 2000?
A)0.72
B)1.388
C)250
D)500
E)Cannot be determined from the information given
Q2) Some of the suggestions for a good layout for face-to-face services include which of the following?
A)Workstations close together
B)Lack of clutter
C)Orderly handling and storage of materials
D)No unnecessary rehandling of materials
E)None of these
Q3) The term "assembly line" refers to progressive assembly linked by some material handling device.
A)True
B)False
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Chapter 9: Service Processes
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Q1) Which one of the following is not a major factor distinguishing service design and development from manufacturing design and development?
A)The process and product must be developed at the same time.
B)Many service organizations can change their service offerings virtually overnight.
C)Many parts of the service package are often defined by the training that individuals receive before they become part of the service organization.
D)The service package, rather than a definable good, is the output of the development process.
E)Service operations can be protected by patents; manufacturing operations cannot.
Q2) One characteristic of a well-designed service system is that it is cost-effective.
A)True
B)False
Q3) Describe the role of service guarantees from the marketing and the operations perspective.
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Chapter 10: Waiting Line Analysis and Simulation
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Q1) The demand on a hospital's emergency medical services is considered a controllable arrival pattern of the calling population.
A)True
B)False
Q2) The Poisson probability distribution is used in waiting line management when one is interested in the number of arrivals to a queue during some fixed time period.
A)True
B)False
Q3) Buying food at a large food store with multiple checkout counters features which type of queuing system line structure?
A)Single channel, single phase
B)Single channel, multiphase
C)Multichannel, single phase
D)Multichannel, multiphase
E)None of these
Q4) In what ways can management influence the arrival patterns of waiting lines?
Q5) A single toll booth on a one-lane bridge is which type of queuing system line structure?
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Chapter 11: Process Design and Analysis
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Q1) When we use a make-to-stock production process, we control our production based on a desired amount of finished goods inventory.
A)True
B)False
Q2) Which of the following production process terms best describes the situation when activities in a stage of production must stop because there is no work?
A)Blocking
B)Buffering
C)Starving
D)Buffer
E)Setup time
Q3) Job design is defined as the function of specifying the work activities of an individual or group in an organizational setting.
A)True
B)False
Q4) When you compare the metrics of your company to another you are ___________.
Q5) What are the advantages and disadvantages of using a make-to-order process compared to the advantages and disadvantages of a make-to-stock process?
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Chapter 12: Six Sigma Quality
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Q1) Failure mode and effect analysis is used in Six-Sigma projects.It involves which of the following?
A)Closely examining each rejected part to determine the cause
B)A careful sampling plan
C)Calculating a risk priority number for each possible failure
D)Reporting the effect each failure has had on a customer
E)Multivariate testing
Q2) What does the acronym "CTQ" stand for?
Q3) An opportunity flow diagram is a time-sequenced chart showing plotted values measuring the flow of end product or components.
A)True
B)False
Q4) Six Sigma refers to the philosophy and methods that some companies use to eliminate defects in their products and processes.
A)True
B)False
Q5) A quality guru named Philip Crosby defined quality as fitness for use.
A)True
B)False
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Chapter 13: Statistical Quality Control
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Q1) The capability index is used to gauge economic changes in service systems.
A)True
B)False
Q2) An example of assignable variation in a production system may be that a machine is not adjusted properly.
A)True
B)False
Q3) You have just used the capability index (Cpk) formulas to compute the two values "min [1, 1]." Which of the following is the proper interpretation of these numbers?
A)The true capability index value is exactly 1.
B)The mean of the production process has shifted to the left of the design limits.
C)The mean of the production process has shifted to the right of the design limits.
D)The mean has not shifted at all.
E)None of these
Q4) What does it mean when we say that a process is capable?
Q5) What is the symbol designating the capability index?
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Chapter 14: Lean Supply Chains
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Q1) Applying lean concepts in manufacturing balances increases in cost with quality improvement.
A)True
B)False
Q2) Imagine comparing a manufacturing operation using regular lot-sizing and the same operation with a kanban/lean production approach.What would be your expectations of the difference between the total cost (i.e., inventory holding costs + setup/ordering costs) of each?
A)Inventory holding cost will increase nonlinearly with inventory.
B)Total costs will be lower for the regular lot-size operation.
C)Total costs will be lower for the kanban/lean production operation.
D)The order quantity will be larger for the kanban/lean production approach.
E)As long as the total quantity is the same, total costs will be the same.
Q3) One of the many lean techniques that have been successfully applied in service firms is the upgrading of quality.
A)True B)False
Q4) The goal of JIT production is to drive all inventory queues lower.
A)True B)False
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Chapter 15: Logistics Distribution, and Transportation
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Q1) In facility location decision making, the factor-rating system is one of the least used general location techniques.
A)True
B)False
Q2) A third-party logistics company is a firm that manages all or part of another company's product delivery operations.
A)True
B)False
Q3) One of the objectives in facility location analysis is to select a site with the lowest total cost.Which of the following costs are hidden costs that should be included in the analysis?
A)Infrastructure costs
B)Movement of preproduction material between locations
C)Taxes
D)Construction costs
E)Bribery costs
Q4) What is a closed area or compound into which foreign goods can be brought without being subject to the normal customs requirements?
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Chapter 16: Global Sourcing and Procurement
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Q1) In Hau Lee's uncertainty framework to classify supply chains, which supply chain process should be used for functional products with low supply uncertainty?
Q2) Retailer behavior when stocking up during promotion periods (where the prices of goods are reduced) is called backward buying.
A)True
B)False
Q3) An organizationally driven reason for outsourcing is that it can improve effectiveness by focusing on what the firm does best.
A)True
B)False
Q4) Inventory turnover and weeks of supply are mathematically the inverse of one another.
A)True
B)False
Q5) Inventory turn values that are considered good differ by industry and the type of products being handled.
A)True
B)False
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Chapter 17: Enterprise Resource Planning Systems
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Q1) What three functional areas make up the manufacturing operating cycle?
A)Manufacturing, sales, and distribution
B)Purchasing, manufacturing, and logistics
C)Procurement, engineering, and sales
D)Purchasing, manufacturing, and sales and distribution
Q2) ____________________________ is a term that refers to delivering hosted ERP services over the Internet.This can significantly reduce the cost of ERP.
Q3) What is transaction processing?
A)The decision support system used to efficiently handle multiple transactions
B)The posting and tracking of the detailed activities of a business
C)The movement of paperwork through a system using a decision tree
D)The scheduling of machinery to minimize time and scrap
Q4) When selecting an ERP system, it is possible to take a multivendor approach.
A)True
B)False
Q5) ERP systems can be inefficient at handling the numerous transactions that document the activities of a company.
A)True
B)False
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Chapter 18: Forecasting
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Q1) Given a prior forecast demand value of 1,100, a related actual demand value of 1,000, and a smoothing constant alpha of 0.3, what is the exponential smoothing forecast value?
A)1,000
B)1,030
C)1,070
D)1,130
E)970
Q2) If a firm produced a standard item with relatively stable demand, the smoothing constant alpha (reaction rate to differences) used in an exponential smoothing forecasting model would tend to be in which of the following ranges?
A)5 to 10 percent
B)20 to 50 percent
C)20 to 80 percent
D)60 to 120 percent
E)90 to 100 percent
Q3) A company has calculated its running sum of forecast errors to be 400, and its mean absolute deviation is exactly 25.What is the company's tracking signal?
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Chapter 19: Sales and Operations Planning
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Q1) Yield management is the process of allocating the right type of capacity to the right type of customer at the right prices at the right time to maximize revenue or yield.
A)True
B)False
Q2) Which of the following is not one of the "number of interesting issues that arise in yield management?"
A)Pricing structures that must appear logical to the customer and justify different prices
B)Designing yield management programs that cannot be imitated by a competitor
C)How to handle variability in customer arrivals, duration, and interval
D)Managing the service process
E)Training workers and managers to work in a yield management environment
Q3) Using the cut-and-try method for aggregate operations planning, we can determine the production requirement in units of product.If the beginning inventory is 400 units, the demand forecast is 900 units, and the required safety stock is 10 percent of the demand forecast, what is the production requirement?
Q4) Describe the aggregate sales and operations planning process.
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Chapter 20: Inventory Management
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Q1) In order to determine the standard deviation of usage during lead time in the reorder point formula for a fixed-order-quantity inventory model, which of the following must be computed first?
A)Standard deviation of daily demand
B)Number of standard deviations for a specific service probability
C)Stock-out cost
D)Economic order quantity
E)Safety stock level
Q2) Price-break models deal with discrete or step changes in price as order size changes rather than a per-unit change.
A)True
B)False
Q3) Cycle counting is a physical inventory-taking technique in which inventory is counted on a frequent basis rather than once or twice a year.
A)True
B)False
Q4) What is the term for there being no relationship between demands for various items? _____________________________________.
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Chapter 21: Material Requirements Planning
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Q1) Which of the following is one of the main purposes of an MRP system?
A)Educate personnel in basic work rules.
B)Determine the amount of materials needed to produce each end item.
C)Stimulate the work force.
D)Decrease labor requirements.
E)Increase inventory accuracy.
Q2) The deeper one looks into the product creation sequence, the more the requirements of dependent demand items tend to become "lumpy."
A)True
B)False
Q3) Projected available balance is the amount of inventory that is expected as of the beginning of a period.
A)True
B)False
Q4) A product tree can do which of the following?
A)Help to compute component usage.
B)Reduce product scrap.
C)Reduce labor overtime.
D)Reduce regular time labor.
E)Locate raw material supplies.
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Chapter 22: Workcenter Scheduling
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Q1) Which of the following is a tool of shop-floor control?
A)The hours worked per employee report
B)The anticipated delay report
C)The permanent work-in-process report
D)Time and motion studies
E)Product and process control report
Q2) Which of the following is a priority rule used to schedule the sequence of jobs in a production operation?
A)Last-come, first-served
B)Last complaint first
C)First on hand first
D)Longest slack time first
E)Parts on hand first
Q3) In finite loading, no consideration is given directly to whether there is sufficient capacity at the resources required to complete the work, nor is the actual sequence of the work as done by each resource in the work center considered.
A)True
B)False
Q4) Distinguish between forward scheduling and backward scheduling.
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Chapter 23: Theory of Constraints
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Q1) Which of the following is a negative aspect of JIT compared to synchronous manufacturing?
A)JIT cannot deal with outside vendors.
B)JIT needs broadly fluctuating production levels.
C)JIT does not allow very much flexibility in the products produced.
D)JIT requires a great deal of workforce computational skills.
E)JIT does not deal well with bottlenecks.
Q2) The term "dependent events" refers to a process sequence.
A)True
B)False
Q3) A useful measure of inventory performance is called "dollar days." In which of the following areas are dollar days measurements not useful?
A)Marketing
B)Research and development
C)Manufacturing
D)Project management
E)Purchasing
Q4) Statistical fluctuation refers to the normal variation about a mean or average.
A)True
B)False
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Chapter 24: Health Care
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Q1) Developing strategies to close capacity gaps (where utilization of a resource exceeds capacity available) is most often accomplished by acquisition of more resources through expansion and new facility construction.
A)True
B)False
Q2) Medicine error severity would be reported on the key process performance dashboard.
A)True
B)False
Q3) Gap errors occur when a too-small hospital gown is given to an obese patient.
A)True
B)False
Q4) Edward Deming and Philip Crosby were pioneers in the quality improvement movement in health care.
A)True
B)False
Q5) Health care is the most intensive of service industries.
A)True
B)False
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Chapter 25: Operations Consulting
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Q1) In the five forces model, which of the following is one of the five forces?
A)Industry rivalry
B)Quality control
C)Manufacturing processes
D)Quality at the source
E)Opportunities for the customer
Q2) One of the cost impact and payoff analysis tools from the operations consulting tool kit is bottleneck analysis.
A)True
B)False
Q3) There are two types of loops in causal loop analysis: reinforcing loops and feedback loops.
A)True
B)False
Q4) Business process reengineering emphasizes continuous and incremental change of processes that are essentially in control.
A)True
B)False
Q5) What is the goal of consulting firms?
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