Operations Management Test Preparation
Course Introduction
Operations Management is a vital discipline within business studies that focuses on the design, administration, and improvement of the processes involved in the production of goods and services. This course covers key topics such as process analysis, capacity planning, inventory management, quality control, supply chain coordination, and Lean management techniques. Students will learn how to analyze operational challenges, optimize resource allocation, and implement strategies that enhance efficiency, reduce costs, and improve overall organizational performance. Practical case studies and real-world examples are used to illustrate the critical role of operations management in achieving business objectives and sustaining competitive advantage.
Recommended Textbook
OM 3rd Edition by
David Alan Collier
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18 Chapters
1344 Verified Questions
1344 Flashcards
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Chapter 1: Goods, Services, and Operations Management
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65 Verified Questions
65 Flashcards
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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) Value creation processes focus on primary goods and services.
A)True
B)False
Answer: True
Q3) Support processes would typically include all of the following except
A)inventory management
B)customer help desk operations
C)research and development
D)manufacturing and assembly
Answer: D
Q4) Moments of truth consist of one or more service encounters.
A)True
B)False
Answer: False
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Chapter 2: Value Chains
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68 Flashcards
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Sample Questions
Q1) A supply chain is more inclusive than a value chain.
A)True
B)False
Answer: False
Q2) Value chain integration requires consolidating information systems among suppliers, factories, distributors, and customers; managing the supply chain and scheduling factories; and studying new ways to use technology.
A)True
B)False
Answer: True
Q3) Which of the following is not true? To increase value, an organization must
A)decrease price or cost while holding perceived benefits constant.
B)hold perceived benefits constant while increasing price or cost.
C)increase perceived benefits while holding price or cost constant.
D)increase perceived benefits while reducing price or cost.
Answer: B
Q4) Forward integration might include acquiring a customer.
A)True
B)False
Answer: True
Page 4
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Chapter 3: Measuring Performance in Operations
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81 Flashcards
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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) Provide some examples of criteria that can be used to help select and delete performance measures from an organization's information system.
Answer: Does the measurement support our mission?
Will the measurement be used to manage change?
Is it important to our customers?
Is it effective in measuring performance?
Is it effective in forecasting results?
Is it easy to understand/simple?
Is the data easy/cost-efficient to collect?
Does the measurement have validity, integrity, and timeliness?
Does the measurement have an owner?
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Chapter 4: Operations Strategy
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65 Flashcards
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Sample Questions
Q1) In time sequence, which of the following needs to be accomplished first?
A)Understand customer wants and needs
B)Design and deliver customer benefit package
C)Build and leverage operational capabilities
D)Hire creative engineers
Q2) Which of the following would not constitute an element of operations infrastructure?
A)Market segmentation
B)Workforce
C)Quality control
D)Learning and innovation systems
Q3) Explain the difference between an order qualifier and an order winner. Provide some examples.
Q4) Being able to access the Internet in an automobile at any speed and in any location would be considered an order satisfier.
A)True
B)False
Q5) What do we mean by core competencies?
Q6) Explain the concept of search, experience, and credence attributes.
Q7) What is the difference between corporate, business and functional strategy?
Page 6
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Chapter 5: Technology and Operations Management
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72 Flashcards
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Sample Questions
Q1) Apple computer would best be described as what type of company?
A)B2B
B)B2C
C)C2C
D)All of these choices
Q2) 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
Q3) Flexible manufacturing systems integrate machines or robots with automated handling devices to route work, load tools, and control operations.
A)True
B)False
Q4) Breakeven analysis can be used to
A)evaluate quality levels
B)help make technology adoption decisions
C)determine if ERP is economical
D)determine the breakeven quantity for infinite scalability
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Chapter 6: Goods and Service Design
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91 Verified Questions
91 Flashcards
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Sample Questions
Q1) A quality characteristic has a manufacturing specification (in cm) of 0.200 \(\pm\) 0.05. Historical data indicate that if the quality characteristic takes on values larger than 0.25 cm or smaller than 0.15 cm, the product fails and a cost of $75 is incurred. Based on this data, answer the questions below.
a.Determine the Taguchi Loss Function
b.Estimate the loss for a quality characteristic of 0.135 cm.
Q2) A quality characteristic has a specification (in cm.) of 0.400 \(\pm\)0.03. If the value of the quality characteristic exceeds 0.400 by the tolerance of 0.030 on either side, the product will require a $180.00 repair. What is the appropriate Taguchi loss function?
Q3) Which of the following is not one of the six customer attributes that impact the design and configuration of a customer benefit package?
A)Time
B)Information
C)Exchange
D)Reliability
Q4) Explain the concept of Design Failure-Mode-and-Effect analysis.
Q5) Describe the Taguchi loss function. Contrast it to the "goal post" model.
Q6) Explain the concept of Design for Manufacturability (DFM).
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Chapter 7: Process Selection, Design, and Analysis
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89 Verified Questions
89 Flashcards
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Sample Questions
Q1) An automobile emissions testing center has six (6) inspectors and tests 50 autos per hour. Each inspector can inspect twelve (12) autos per hour. What is the center's utilization?
Q2) A company is able to process 100 customer statements (bills) per day per processing clerk. It has 250 customer statements to process per day. How many full-time processing clerks are needed if the company wants a processing-clerk utilization rate as close to .80 as possible?
Q3) Transferring material between two non-adjacent workstations, waiting for service and requiring multiple approvals are examples of
A)A value stream
B)A process map
C)Non-value-added activities
D)Little's Law
Q4) Explain how a product's life cycle has important implications in terms of process design and choice.
Q5) Compare and contrast a product-process matrix with a service-positioning matrix.
Q6) Explain each axis of the product-process matrix. Where is the most appropriate match? Also, discuss the importance of the matrix to a company's life cycle.
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Chapter 8: Facility and Work Design
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79 Verified Questions
79 Flashcards
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Sample Questions
Q1) Explain assembly line balancing. Discuss the three types of information needed to balance an assembly line.
Q2) The typical layout of facilities in a hospital would be an example of a ____ layout.
A)Product
B)Process
C)Cellular
D)Fixed position
Q3) The objective of assembly line balancing is to group tasks among workstations so that the amount of work assigned to each workstation is highly variable, thus maximizing flexibility.
A)True
B)False
Q4) Changes in goods and services for a firm's customer benefit package do not impact facility layouts.
A)True
B)False
Q5) Cycle time should be smaller than the largest operation time.
A)True
B)False
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Chapter 9: Supply Chain Design
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71 Verified Questions
71 Flashcards
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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) If a multisite organization has a stable customer benefit package and many identical and standardized facilities, then a responsive supply chain is the best design.
A)True
B)False
Q3) The bullwhip effect could be reduced if all members of the supply chain would use demand data from the point of the supply chain closest to the customer.
A)True
B)False
Q4) In designing an efficient supply chain, an organization would need high levels of inventory stored in many small distribution centers.
A)True
B)False
Q5) Summarize the Supply Chain Operations Reference (SCOR) model.
Q6) Describe some common supply chain metrics used to evaluate performance.
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Chapter 10: Capacity Management
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70 Verified Questions
70 Flashcards
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Sample Questions
Q1) Revenue Management Systems (RMS)
A)are batched daily
B)rely solely on overbooking
C)are cost minimization models
D)are time-dependent
Q2) Capacity costs depend primarily on annual operating and maintenance costs.
A)True
B)False
Q3) Revenue management systems are vital to most manufacturing organizations.
A)True
B)False
Q4) A doctor's office would charge no-show patients $30 if they did not cancel their appointment 24 hours ahead of the appointment because A)insurance will pay the no-show fee anyway.
B)the appointment time and associated revenue is perishable, and the doctor may lose revenue.
C)the doctor's office does a poor job of forecasting demand.
D)the no-show price of $30 can be added to medical fees for reimbursement.
Q5) What is safety capacity? Discuss reasons for using it.
Q6) What are complementary goods and services and why do firms have them?
Page 12
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Chapter 11: Forecasting and Demand Planning
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76 Verified Questions
76 Flashcards
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Sample Questions
Q1) Aggregate forecasts are generally much easier to develop whereas detailed forecasts require more time and resources.
A)True
B)False
Q2) A major difference between forecast accuracy measures MAD and MSE is that MAD is influenced much more by large forecast errors than by small errors.
A)True
B)False
Q3) As the value of k is increased in a moving average forecasting model, the forecast reacts more slowly to recent changes in the time series.
A)True
B)False
Q4) 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.
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Chapter 12: Managing Inventories
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Sample Questions
Q1) In a single-period inventory situation, the only inventory decision is when to trigger an order.
A)True
B)False
Q2) Which one of the following is not true regarding the Fixed Period System (FPS)?
A)The time between orders is constant, but the order quantity might vary.
B)An order is time-triggered, not inventory-triggered.
C)The optimal replenishment level includes the demand during the review period plus any desired safety stock.
D)When demand is not certain, the FPS requires more safety stock than the equivalent FQS.
Q3) Which of the following is not a component of holding cost?
A)Taxes
B)Insurance
C)Material handling
D)Order processing
Q4) An airline seat is an example of an asset held for future use or sale.
A)True
B)False
Q5) Provide some examples of when the single period inventory model is applicable.
Page 14
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Chapter 13: Resource Management
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82 Verified Questions
82 Flashcards
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Sample Questions
Q1) Which lot sizing rule might base the order quantity on a standard-size container or pallet load?
A)Lot-for-Lot (LFL)
B)Fixed order quantity (FOQ)
C)Periodic order quantity (POQ)
D)Gross Requirements (GR)
Q2) A company currently has no items in inventory. The demand for the next four months is 200, 400, 250 and 350 units. Determine the level production rate if a level strategy is selected with the goal of ending Period 4 with 100 units in inventory.
Q3) What are the components of an MRP record?
Q4) Lot sizing rules on a parent item do not affect the gross requirements of all lower level component items.
A)True
B)False
Q5) Define Material Requirements Planning (MRP) and how it can benefit an organization.
Q6) Differentiate between a level production strategy and a chase demand strategy.
Q7) Explain the three levels of resource planning.
Q8) What is capacity requirements planning (CRP)?
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Chapter 14: Operations Scheduling and Sequencing
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65 Flashcards
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Sample Questions
Q1) Differentiate between scheduling and sequencing.
Q2) The sequencing rule that minimizes the maximum number of jobs that are past due from a given set of jobs is
A)Shortest processing time
B)Earliest due date
C)First come, first served
D)Least work remaining
Q3) Appointments systems often overbook to maximize revenue.
A)True
B)False
Q4) In sequencing a set of jobs on a single processor, different sequences will have different makespans but the same average flow times.
A)True
B)False
Q5) The time needed to process a given set of jobs is called
A)Flow time
B)Ready time
C)Makespan
D)Due date
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Chapter 15: Quality Management
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73 Verified Questions
73 Flashcards
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Sample Questions
Q1) Which of the following emphasizes defects per million opportunities as a key measure of quality?
A)The 14 Points
B)ISO 9000:2000
C)The Gap model
D)Six Sigma
Q2) 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
Q3) The recognized benchmark for Six Sigma implementation is
A)Sears, Roebuck and Co.
B)DuPont
C)General Electric
D)American Express
Q4) Each day, a golf resort handles 700 golfers. Each guest encounters 22 "moments of truth" during a typical day. The resort is open seven days a week. If they receive 12 complaints per week, what is the epmo measure?
Q5) Explain the four components of the cost of quality.
Page 17
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Chapter 16: Quality Control and Spc
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85 Flashcards
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Sample Questions
Q1) The center line (p-bar) for a p-chart is 0.50 with an UCL = 0.70 and a LCL = 0.35. The results of the next eight sample means are 0.45, 0.60, 0.39, 0.44, 0.48, 0.53, 0.54, and 0.61.
What would you do?
A)Nothing; the process is in control.
B)increase the sample size to get a better measure.
C)investigate assignable causes because four observations are above the center line.
D)investigate assignable causes because there is a bad trend (run).
Q2) In general, discuss how to interpret control charts.
Q3) If process quality approaches six sigma levels, then standard types of control charts are not useful.
A)True
B)False
Q4) A system governed only by common causes is called a stable system.
A)True
B)False
Q5) Discuss the difference between a continuous metric and a discrete metric, give examples of each, and list the common control charts associated with each.
Q6) Explain and give the significance of the 1:10:100 Rule.
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Chapter 17: Lean Operating Systems
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Sample Questions
Q1) A company is using Kanban containers. There are two adjacent work centers, a downstream (using) and an upstream (producing) one. The using work center has a production rate of 200 parts per day and each container holds 20 parts. It takes .5 days for a container to make the entire cycle from the time it leaves the upstream center until it is returned, filled with production, and leaves again. The manager wants a safety factor (\(\alpha\)) of 20%. The company is interested in reducing the number of containers.
a.What is the number of containers currently in use?
b.If the number of parts a container holds is increased to 24 parts, how many containers are needed?
c.If the company wants the number of containers (holding 20 parts each) to be 5, what must the safety factor become?
Q2) Long lead-times and higher work-in-process is most closely related to which of Toyota's "Seven Major Waste Categories"?
A)Overproduction
B)Single-piece flow
C)Waiting time
D)Transportation
Q3) Explain the concept of Single Minute Exchange of Die (SMED).
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Chapter 18: Project Management
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60 Verified Questions
60 Flashcards
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Sample Questions
Q1) Which of the following is not considered a project?
A)Writing and implementing a computer program
B)Introducing a new product
C)Production of soft drinks
D)Building a bridge
Q2) We should not crash activities on the critical path.
A)True
B)False
Q3) A slack of (-2) means the project is ahead of schedule by two time periods.
A)True
B)False
Q4) Define critical path and explain how it is identified once a project schedule is calculated.
Q5) A type of organization that can result in inefficiencies because of duplication of resources across the organization is called
A)Pure project structure
B)Pure functional structure
C)Matrix structure
D)Product structure
Q6) Explain the role of the project managers and some principles for success.
Page 20
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