Operations Management
Pre-Test Questions
Course Introduction
Operations Management focuses on the design, operation, and improvement of the processes that produce and deliver goods and services. This course examines key concepts such as process analysis, capacity planning, supply chain management, quality control, and inventory systems. Students will learn how organizations create value through efficient resource utilization, strategic decision-making, and continuous process improvement. Emphasis is placed on quantitative and qualitative tools to solve real-world operational challenges, making the course essential for understanding how businesses achieve productivity, competitiveness, and customer satisfaction.
Recommended Textbook
Operations Management Creating Value Along the Supply Chain 7th Edition by Roberta S. Russell
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Page 2
Chapter 1: Operations Management
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Q1) Positioning is a step in strategy formualtion that compares core competencies and order winners.
A)True
B)False
Answer: True
Q2) Human resources management provides demand estimates that are used in production decisions.
A)True
B)False Answer: False
Q3) Core competencies tend to be processes and not products or technologies.
A)True
B)False Answer: True
Q4) Order qualifiers are the characteristics of a product that have to be satisfied just to be considered for purchase by a customer.
A)True
B)False Answer: True
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Chapter 2: Quality Management
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Sample Questions
Q1) With Six Sigma a teacher and mentor is known as a Green Belt
A)True
B)False
Answer: False
Q2) ______ failure costs include scrap,rework,and downtime.
A)External
B)Internal
C)Process
D)System
Answer: B
Q3) All of the following are part of DMAIC except:
A)Improve
B)Control
C)Measure
D)Implement
Answer: D
Q4) With Six Sigma the project team leader is known as a Black Belt
A)True
B)False Answer: True
Page 4
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Chapter 3: Statistical Quality Control
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Sample Questions
Q1) Which of the following statements is TRUE?
A)With wider control limits larger Z),the process is more likely to be in control.
B)With narrower control limits,smaller Z),the process is more likely to be in control.
C)With wider control limits larger Z),the process is less likely to be in control.
D)none of the above are true.
Answer: A
Q2) Statistical process control is based on a philosophy of inspection as opposed to prevention.
A)True
B)False
Answer: False
Q3) In some cases,the xbar-chart is used without an R-chart because there is no variation between the samples.
A)True
B)False
Answer: False
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Page 5
Chapter 4: Product Design
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Sample Questions
Q1) A structured process that translates the voice of the customer into technical design requirements is known as
A)quality function deployment QFD)
B)failure mode and effects analysis FMEA)
C)concurrent design
D)robust product design
Q2) Design for the environment DFE)is an important factor influencing product design for all U.S.products.
A)True
B)False
Q3) Extended producer responsibility EPR)is a concept that holds companies responsible for their products following the products' useful lives.
A)True
B)False
Q4) Product design technology has decreased the time to market for many new products whereby decreasing overall competition in the market.
A)True
B)False
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Chapter 5: Service Design
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Sample Questions
Q1) A service package defines the target market and the desired customer experience.
A)True
B)False
Q2) In general,as the level of service improves the cost of service increases.
A)True
B)False
Q3) Queue discipline specifies the order in which waiting customers are served.
A)True
B)False
Q4) Which of the following in not a basic element of a waiting line?
A)arrivals
B)servers
C)cost of waiting
D)waiting line structure
Q5) Balking occurs when a customer waiting in a line moves from one line to another because he believes it is moving faster.
A)True
B)False
Q6) What is queue discipline and queue length?
Q7) What are the basic elements of a waiting line? Define each.
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Chapter 6: Processes and Technology
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Sample Questions
Q1) Which of the following is not an advantage of batch production?
A)frequent changes in product mix
B)flexibility
C)customization of output
D)quality reputation
Q2) List some non-economic factors that can influence a firm's outsourcing decision.
Q3) Process design specifies what tasks need to be done and how they are to be coordinated among functions,people,and organizations.
A)True
B)False
Q4) Batch production is also known as a job shop because it creates more jobs than any of the other process choices
A)True
B)False
Q5) Supplier reliability is often an important consideration in outsourcing decisions.
A)True
B)False
Q6) What is a process strategy and how does it affect the firm?
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Chapter 17: Scheduling
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Sample Questions
Q1) Typically,there are more options available when scheduling employees because labor is a very flexible resource.
A)True
B)False
Q2) Which of the following is not typically considered an objective of scheduling?
A)minimizing job lateness
B)maximizing time in the system
C)minimizing overtime
D)maximizing machine utilization
Q3) The sequencing rule that will minimize average job completion time for a set number of jobs to be processed on one machine is
A)first-come-first served (FCFS).
B)longest processing time (LPT).
C)shortest process time (SPT).
D)due date (DDATE).
Q4) The time required for a job to move through the system is referred to as flow time.
A)True
B)False
Q5) What makes scheduling so difficult in a job shop?
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Chapter 7: Capacity and Facilities
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Sample Questions
Q1) Similar activities are grouped together in departments or work centers according to the function with a __________ layout.
A)process
B)fixed-position
C)hybrid
Q2) Product layouts are sometimes referred to as functional layouts.
A)True
B)False
Q3) Which of the following is not an "area" of advantage of cellular layouts?
A)material handling
B)setup time
C)capital investment
D)control
Q4) The material storage space required for in-process inventory is typically larger in A)a cellular manufacturing layout.
B)a product layout.
C)a fixed-position layout.
D)a process layout.
Q5) What are the advantages of a cellular layout?
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Chapter 8: Human Resources
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Sample Questions
Q1) Globalization has resulted in an overall reduction in diversity related issues in the workplace.
A)True
B)False
Q2) A graph that illustrates the improvement rate of workers as a job is repeated is known as a
A)learning curve.
B)process flowchart.
C)worker-machine chart.
D)task analysis chart.
Q3) _________________ refers to the physical location of a job and the requisite surroundings.
A)Task analysis
B)Worker analysis
C)Methods analysis
D)Environmental analysis
Q4) Briefly discuss the advantages and disadvantages of scientific management.
Q5) Briefly describe the principles of scientific management.
Q6) What is empowerment and why is it important to total quality management (TQM)?
Q7) Define the three categories of the elements of job design.
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Chapter 9: Project Management
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Sample Questions
Q1) A project team is typically cross-functional consisting of members throughout an organization.
A)True
B)False
Q2) The estimated variance for an activity with a most likely time (m)equal to 11 days,the optimistic time (a)equal to 6 days ,and the pessimistic time (b)equal to 18 days is A)2 days.
B)4 days.
C)6 days.
D)11 days.
Q3) Using Table 9.1,the earliest start time for activity F is A)30 weeks.
B)20 weeks.
C)14 weeks.
D)13 weeks.
Q4) A work breakdown structure provides a common understanding of and justification for a project.
A)True
B)False
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Chapter 10: Supply Chain Management: Strategy and Design
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Sample Questions
Q1) Which of the following is not one of the three key performance indicators KPI)used to measure supply chain performance?
A)inventory turnover
B)postponement rate
C)inventory days of supply
D)fill rate
Q2) E-business replaces physical exchange processes with electronic ones.
A)True
B)False
Q3) Increasing supply chain transparency only magnifies the bullwhip effect.
A)True
B)False
Q4) The suppliers in a supply chain are referred to as ______________ supply chain members.
A)downstream
B)midstream
C)upstream
D)none of the above.
Page 13
Q5) List and explain the three key supply chain performance indicators.
Q6) What is a supply chain?
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Page 14
Chapter 11: Global Supply Chain Procurement and Distribution
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Sample Questions
Q1) In an attempt to minimize inventory levels companies frequently require their suppliers to use a(n)___________ inventory management system.
A)periodic delivery
B)continuous
C)on-demand
D)All of the above.
Q2) International trade specialists include all of the following except
A)export packers.
B)finance brokers.
C)purchasing agents.
D)duty specialists.
Q3) E-procurement is mostly used to purchase indirect products that support production.
A)True
B)False
Q4) Postponement involves moving some of the manufacturing into the distribution center.
A)True
B)False
Q5) List and discuss the seven different modes of transportation.
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Chapter 12: Forecasting
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Sample Questions
Q1) Which of the following can be used to monitor a forecast to see if it is biased high or low?
A)a tracking signal
B)the mean absolute deviation (MAD)
C)the mean absolute percentage deviation (MAPD)
D)a linear trend line model
Q2) Because of the development of advanced forecasting models managers no longer track forecast error.
A)True
B)False
Q3) The demand behavior for skis is considered cyclical.
A)True
B)False
Q4) The sum of the weights in a weighted moving average forecast
A)must equal the number of periods being averaged.
B)must equal 1.00.
C)must be less than 1.00.
D)must be greater than 1.00.
Q5) Discuss the importance of accurate forecasts in supply chain management.
Page 16
Q6) Compare and contrast short-mid-range forecasts and long-range forecasts.
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Chapter 13: Inventory Management
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Sample Questions
Q1) Make a list of the basic steps involved in using the quantity discount model and discuss each.
Q2) The EOQ model determines the optimal order size that minimizes the sum of carrying cost and shortage costs.
A)True
B)False
Q3) A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate over the 365 days that it is open.The cost to order napkins is $200.00 per order and the annual carrying cost for one box of napkins is $1.00.If the restaurant orders the economic order quantity then the time between orders (order cycle)is
A)125 days.
B)75.3 days.
C)32.8 days.
D)29.2 days.
Q4) Dependent demand items consist of component parts or materials used in the production process to produce a final product..
A)True
B)False
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17
Chapter 13: Operational Decision-Making Tools: Simulation
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Sample Questions
Q1) A steady state results when a simulation is repeated enough times that the random variable being investigated reaches an average result that remains constant.
A)True
B)False
Q2) The Monte Carlo technique is a mathematical model used within a simulation.
A)True
B)False
Q3) At a Wal-Mart store,simulation can be used to analyze waiting lines at check-out stands to determine the required staffing levels.
A)True
B)False
Q4) After a sufficient number of simulation runs a steady state results when the variable being investigated reaches an _________ value that remains constant.
A)optimal
B)average
C)expected
D)estimated
Q5) In what ways is simulation relevant to analyzing production problems?
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Chapter 14: Operational Decision-Making Tools: Linear Programming
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Sample Questions
Q1) Briefly define the components that comprise a linear programming model.
Q2) A formulation for a linear programming model consists of a decision variable,a constraint and several objective functions.
A)True
B)False
Q3) Linear programming problems with two decision variables can be solved graphically.
A)True
B)False
Q4) How is linear programming useful to an operations manager?
Q5) While all linear programming problems have a single objective function,very few,if any,have constraints.
A)True
B)False
Q6) The feasible solution space contains the values for the decision variables that satisfy the majority of the linear programming model's constraints.
A)True
B)False
Q7) What is meant by the term "shadow price" in linear programming?
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Chapter 14: The Sales and Operations Planning Process
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Sample Questions
Q1) An optimizing technique originally developed for aggregate planning in the paint factory is the
A)linear decision rule.
B)search decision rule.
C)management coefficients model.
D)transportation technique.
Q2) One of several strategies for managing demand is to shift it into other time periods using incentives,sales promotions,and advertising.
A)True
B)False
Q3) An economic strategy for adjusting demand can include adjusting capacity or managing demand.
A)True
B)False
Q4) Implementing a companywide game plan for allocating resources addresses the long-standing battle between operations and marketing.
A)True
B)False
Q5) What are the outputs of aggregate planning?
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Chapter 15: Resource Planning
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Sample Questions
Q1) Load leveling is used to resolve underloaded and overloaded capacity conditions.
A)True
B)False
Q2) The periodic order quantity (POQ)lot sizing technique that places orders every demand period.
A)True
B)False
Q3) The last stage in ERP implementation involves analyzing business processes.
A)True
B)False
Q4) Information concerning on-hand quantities,lot sizes and,lead time,figures can be found in the master production schedule (MPS).
A)True
B)False
Q5) A phantom bill of material is appropriate when a product consists of assemblies that are later combined to form a variety of final products.
A)True
B)False
Q6) What is Enterprise Resource Planning (ERP)?
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Chapter 16: Lean Systems
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Sample Questions
Q1) Flexible resources is a basic element of lean production.
A)True
B)False
Q2) Small-lot production reduces lead time but increases quality problems.
A)True
B)False
Q3) One benefit of small lot production is that workers show fewer tendencies to let poor quality pass.
A)True
B)False
Q4) The concept of allocating extra time to a schedule for planning,problem solving,and maintenance is known as
A)preventative scheduling.
B)preventive maintenance.
C)over capacity maintenance.
D)under capacity scheduling.
Q5) The concept of cellular layouts was developed by a U.S.engineer in the 1920s.
A)True
B)False
Q6) What are the benefits of small-lot production?
Page 22
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Chapter 18: Operational Decision-Making Tools: Decision Analysis
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Sample Questions
Q1) Which of the following techniques is the most widely used decision-making criterion under risk?
A)maximax criterion
B)minimax regret criterion
C)expected value criterion
D)Hurwicz criterion
Q2) The maximum value of perfect information to the decision maker is known as
A)the expected value of perfect information
B)the expected value of imperfect information
C)the minimum of the minimax regret
D)none of the above
Q3) A sequential decision tree is a graphical method for analyzing decision situations that require a sequence of decisions over time.
A)True
B)False
Q4) When probabilities are assigned to states of nature the situation is referred to as decision making under uncertainty.
A)True
B)False
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Chapter 19: Operational Decision-Making Tools: Acceptance Sampling
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Sample Questions
Q1) With acceptance sampling,a lot is either rejected or accepted depending on the number of defects found in a sample.
A)True
B)False
Q2) Acceptance sampling is consistent with TQM's philosophy of zero defects.
A)True
B)False
Q3) An operating characteristics (OC)curve is a graph that measures the probability of accepting a lot with no defective items.
A)True
B)False
Q4) A sampling plan provides a set of guidelines for accepting a lot.
A)True
B)False
Q5) Six Sigma companies report
A)defective parts per million.
B)defective parts per thousand.
C)defective parts per hundred.
D)no defective parts.
Q6) What is the advantage of a multiple-sampling plan? Page 24
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Chapter 20: Decision-Making Tools: Facility Location Models
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Sample Questions
Q1) Which of the following is a type of facility addressed by the facility location decision?
A)heavy manufacturing
B)light manufacturing
C)retail facilities
D)all the above
Q2) For a service operation being in the right place usually means being in a location that is convenient and easily accessible.
A)True
B)False
Q3) Inadequate infrastructure at a given location increases supply chain costs and decreases customer service.
A)True
B)False
Q4) The center of gravity technique outlines a method for identifying and weighing important location factors.
A)True
B)False
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26
Chapter 21: Operational Decision-Making Tools: Work Measurement
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Sample Questions
Q1) The normal times for basic,generic micro motions developed by an outside organization in a laboratory-type environment are referred to as
A)standard times
B)normal times
C)predetermined motion times
D)elemental times
Q2) For a particular time study a company would like to be 95% confident that the average job cycle time is within 2% of the true average job cycle time.Assume that the average job cycle time was 6.53 minutes and the standard deviation of the sample was 1.26 minutes.The number of cycles that should be used in this time study would be
A)174
B)358
C)463
D)864
Q3) Work sampling is an easier,cheaper,and quicker approach to work measurement than time study.
A)True
B)False
Q4) List the steps in work sampling.
27
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