Operations Planning and Control
Exam Bank
Course Introduction
Operations Planning and Control focuses on the strategies, tools, and techniques used to manage and optimize the production and delivery of goods and services within an organization. This course examines key concepts such as demand forecasting, capacity planning, inventory management, production scheduling, quality control, and supply chain coordination. Students will learn how to analyze operational processes, design efficient workflows, and implement control systems that align operations with broader business objectives. Emphasis is placed on both theoretical frameworks and practical applications, enabling learners to solve real-world challenges in manufacturing and service operations environments.
Recommended Textbook Operations and Supply Management 12th Edition by F.
Robert Jacobs
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Chapter 1: Introduction to the Field
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Q1) Why is operations not perceived as important?
A)Operations is less crucial to the success of modern businesses than other functions
B)Many senior executives began their careers in other functions and learned to take operations for granted
C)Successful mergers or "deals" is where the action is these days and operations plays only a minor role in their success
D)Operations and supply improvement projects are typically small,short-term and not strategic
E)Operational coordination is best achieved by general management or the sales function
Answer: B
Q2) Widespread use of computers in business led to development of methods like material requirements planning (MRP)to rationalize manufacturing in the 1970s.
A)True
B)False
Answer: True
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Chapter 2: Operations and Supply Strategy
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Q1) The operations and supply activities of the firm need to strategically support the competitive priorities of the firm.
A)True
B)False
Answer: True
Q2) An order winner is a set of screening criteria that permits a firm's products to be considered as possible candidates for purchase.
A)True
B)False
Answer: False
Q3) The process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features,services and technologies into its current portfolio is called innovation.
A)True
B)False
Answer: False
Q4) Strategy typically breaks down into what three major components?
Answer: operations effectiveness,customer management and product innovation
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Page 4
Chapter 3: Project Management
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Q1) You are managing a project and need to cut the cost of the project.You decide to transfer workers to another job to cut the project's costs.Costs associated with transferring the workers are an example of project indirect costs.
A)True
B)False
Answer: False
Q2) You have just been assigned to oversee a series of projects.Functional areas will loan you personnel for each project and separate project managers will be responsible for separate projects.These project managers will report to you.Which project management structure is being used?
A)Pure Project
B)Task force
C)Matrix Project
D)Functional Project
E)PERT
Answer: C
Q3) What is that sequence of activities that consume the longest amount of time in a project network of activities called?
Answer: The critical path.
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Page 5
Chapter 4: Product and Service Design
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Q1) Manufacturing defines target customers during "Phase 0: Planning" of the generic product development process.
A)True
B)False
Q2) A reason that firms must develop more new products than ever is which of the following?
A)Product life cycles are shorter
B)Commitments to joint venture partners
C)They are replacing old customers with new ones
D)To amortize heavy investments in development labs
E)The increased difficulty of defending patents and trade names
Q3) The generic development process outlined in the textbook is followed by many,if not most,of the firms in the Fortune 500.
A)True
B)False
Q4) The main purpose of concurrent engineering is to improve product quality.
A)True
B)False
Q5) What are the six phases of the generic product development process?
Q6) Describe what concurrent engineering teams are and what problems they address?
Page 6
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Chapter 5: Strategic Capacity Management
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Q1) The frequency of additions to productive capacity should balance the costs of upgrading too frequently and the costs of upgrading too infrequently.
A)True
B)False
Q2) Firms that make multiple products can produce the same number of each product with a given level of resource inputs and equal amounts of time.
A)True
B)False
Q3) Capacity flexibility means having the ability to rapidly increase or decrease production levels or to shift production capacity quickly from one product or service to another.
A)True
B)False
Q4) The smaller the capacity cushion the better.
A)True B)False
Q5) Why does volatility of demand have a higher effect on a service delivery system than on a manufacturing system?
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Chapter 6: Process Analysis
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Q1) Process analysis can help answer many important questions such as why change in a process is necessary.
A)True
B)False
Q2) Utilization of a production process is the ratio of time that a resource is actually being used relative to the time it is available for use.
A)True
B)False
Q3) To reduce process throughput time you might try which of the following actions?
A)Perform activities in parallel
B)Change the sequence of activities
C)Reduce interruptions
D)Acquire additional equipment
E)All of the above
Q4) A service operation by its very nature is a make-to-stock type of production process.
A)True
B)False
Q5) What is the ratio of output to input called?
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Chapter 7: Manufacturing Processes
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Q1) Assume a fixed cost for a process of $120,000.The variable cost to produce each unit of product is $35 and the selling price for the finished product is $50.Which of the following is the number of units that has to be produced and sold to break-even?
A)5,000 units
B)6,000 units
C)8,000 units
D)11,000 units
E)12,000 units
Q2) A general purpose machine is less capable than a special purpose machine in certain tasks but can perform a broader variety of tasks.
A)True
B)False
Q3) Break-Even Analysis can be used to help decide whether to perform a task with a special purpose machine or with a general purpose machine.
A)True
B)False
Q4) Differentiate between a workcenter and a manufacturing cell?
Q5) Give an example of a project layout?
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Chapter 8: Service Processes
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Q1) In the service-system design matrix,a face-to-face loose specs service encounter is expected to have which of the following?
A)Low sales opportunity
B)Low production efficiency
C)High production efficiency
D)Low degree of customer/server contact
E)None of the above
Q2) Poka-Yoke is roughly translated from Japanese as "Avoid Mistakes".
A)True
B)False
Q3) In the service-system design matrix,a face-to-face total customization service encounter is expected to have which of the following?
A)Low sales opportunity
B)Low production efficiency
C)High production efficiency
D)Low degree of customer/server contact
E)None of the above
Q4) How does the degree of customer contact relate to the kinds of skills needed by service workers and the degree of training they require?
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Chapter 9: Six Sigma Quality
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Q1) Which of the following is an analytical tool used in six-sigma quality improvement programs?
A)Leadership
B)Pareto Charts
C)Management by fact
D)Continuous improvement
E)Kaizen
Q2) One of the definitions for the cost of quality is that it represents the costs attributable to the production of quality that is not 100 percent perfect.
A)True
B)False
Q3) The primary purpose of the Malcolm Baldrige National Quality Award is which of the following?
A)To encourage the spread of statistical quality control
B)To improve human resource development and management in manufacturing
C)To improve competitiveness of American firms
D)To prove that American firms were competitive in quality
E)To emphasize the use of quantitative methods in process management
Q4) Kaizen is another term for what activity?
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Chapter 10: Supply-Chain Strategy
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Sample Questions
Q1) Name the transportation modes discussed in the textbook.
Q2) Which of the following of Fisher's product categories includes fashionable clothing,personal computers and other products that typically have a very brief life cycle?
A)Functional products
B)Dysfunctional products
C)Innovative products
D)Bullwhip products
E)Low value-density products
Q3) In Hau Lee's uncertainty framework to classify supply chains,a supply chain that combines the strengths of a "risk-hedging" and a "responsive" supply chain is called what?
Q4) Which of the following is not an improvement-driven reason for outsourcing?
A)Improve management and control
B)Enhance effectiveness by focusing on what you do best
C)Improve risk management
D)Obtain expertise,skills and technologies not otherwise available
E)Acquire innovative ideas
Q5) What is the effect of the lack of synchronization among supply-chain members called?
12
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Chapter 11: Logistics and Facility Location
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Q1) Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills.
A)True
B)False
Q2) One of the objectives of facility location analysis is to select a site with the lowest total cost.Which of the following are hidden costs that should be included in the analysis?
A)Becoming less responsive to the customer
B)Supplier costs
C)Taxes
D)Construction costs
E)Product life cycle costs
Q3) A third-party logistics company is a firm that manages all or part of another company's product delivery operations.
A)True
B)False
Q4) Name the transportation modes discussed in the textbook.
Q5) Name four methods of quantitative analysis that are useful in making the facility location decision.
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Chapter 12: Lean Manufacturing
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Q1) "Kanban Squares" is an educational game played in Kanban training sessions.
A)True
B)False
Q2) Heijunka is a Japanese word that means to smooth the production flow.
A)True
B)False
Q3) In Japanese manufacturing automation and robotics are used extensively to perform dull or routine jobs so employees are free to focus on important improvement tasks.
A)True
B)False
Q4) Group technology includes the set of psychological tests and training exercises given to group workers to insure a high level of teamwork.
A)True
B)False
Q5) The goal of JIT production is to drive all inventory queues lower.
A)True
B)False
Q6) What seven design principles guide the design of lean supply chains?
Q7) Explain why lean manufacturing requires a stable demand environment.
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Chapter 13: Operations Consulting Reengineering
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Q1) Which of the following is a data analysis and solution development tool from the operations consulting tool kit?
A)Bottleneck analysis
B)Employee surveys
C)Gap analysis
D)Balanced scorecard
E)Responsibility charts
Q2) One of the implementation tools from the operations consulting tool kit is the issue tree.
A)True
B)False
Q3) Which of the following is not a data gathering tool from the operations consulting tool kit?
A)Plant tours/Audits
B)Work sampling
C)Flowcharts
D)Factory blueprints
E)Organization charts
Q4) What is the most common method for improving efficiency in consulting firms?
Q5) Name the five P's of production
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Chapter 14: Enterprise Resource Planning Systems
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Q1) According to a survey done by the Harvard Business School,most executives had very positive feelings about ERP software.
A)True
B)False
Q2) SAP modules are updated twice each year.
A)True
B)False
Q3) The mySAP Supply Chain Management (SCM)product organizes its software into three planning scenarios that represent the basic planning needs of the organization.What are these three planning scenarios?
Q4) The SAP financial accounting modules do not include which of the following?
A)Accounts payable
B)General ledger
C)Capital investments
D)Accounts receivable
E)Payroll
Q5) SAP AG sells an ERP product called R/2D-2. A)True
B)False
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Chapter 15: Demand Management and Forecasting
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Q1) A good forecaster is one who develops special skills and experience at one forecasting technique and is capable of applying it to widely diverse situations.
A)True
B)False
Q2) What are the five steps of CPFR (collaborative planning,forecasting and replenishment?)
Q3) A company has calculated its running sum of forecast errors to be 1,000 and its tracking signal is 50.What is the company's mean absolute deviation?
Q4) The equation for exponential smoothing states that the new forecast is equal to the old forecast plus the error of the old forecast.
A)True
B)False
Q5) Independent demand is the demand for a product or service caused by the demand for other products or services.
A)True
B)False
Q6) Name the four basic types of forecasting?
Q7) Distinguish between "dependent" and "independent" demand?
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Chapter 16: Aggregate Sales and Operations Planning
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Q1) Yield management is an effective tool that can be used to shape demand patterns.
A)True
B)False
Q2) The increasing complexity of modern operations management has made simple cut-and-try charting and graphical methods formerly used to develop aggregate operations plans impractical and obsolete.
A)True
B)False
Q3) In an overview of the major operations planning activities in a typical organization,which of the following activities precedes aggregate sales and operations planning?
A)Process planning
B)Workforce scheduling
C)Master production scheduling
D)Materials requirements planning
E)Order scheduling
Q4) Explain how yield management works and why some companies are able to use it to manage demand patterns?
Q5) What are four advantages of Level production that make it the backbone of JIT production?
18
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Chapter 17: Inventory Control
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Q1) 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
Q2) Safety stock can be computed when using the fixed-order quantity inventory model by multiplying a "z" value representing the number of standard deviations to achieve a service Level or probability by the standard deviation of daily demand.
A)True
B)False
Q3) Fixed-order quantity inventory systems determine the order point,R and the order quantity,Q values.
A)True
B)False
Q4) The fixed-order quantity inventory model is more appropriate for important items such as critical repair parts because there is closer monitoring and therefore quicker response to a potential stockout.
A)True
B)False
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Chapter 18: Material Requirements Planning
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Q1) Time fences increase productivity by reducing the time spent waiting for each product to be produced.
A)True
B)False
Q2) Management defines time fences as periods of time having some specific Level of opportunity for the customer to make changes.
A)True
B)False
Q3) In MRP,how is demand information for a Level 0 (zero)item derived?
Q4) MRP stands for Manufacturing Requirements Planning.
A)True
B)False
Q5) Net change MRP reflects the exact status of each item managed by the system in "real time".
Goal: 3
A)True
B)False
Q6) A modular bill of materials includes items with fractional options.
A)True
B)False
Page 20
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Chapter 19: Scheduling
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Q1) 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
Q2) A job has 10 days of processing time left to do before completion and today is the 5<sup>th</sup> day of the month.If the job is due on the 15<sup>th</sup> day of the month,what is its critical ratio?
A)3
B)2
C)1
D)0.8
E)- 0.8
Q3) Under the STR/OP sequencing priority rule,orders with the jobs with the longest STR/OP are run first.
A)True
B)False
Q4) Distinguish between forward scheduling and backward scheduling?
Q5) What is dispatching?
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Chapter 20: Constraint Management
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Q1) From an operations standpoint,one of the goals of the firm under the theory of constraints is to increase throughput while simultaneously reducing inventory and reducing operating expense.
A)True
B)False
Q2) You have run a capacity resource profile on your shop.Products have been routed sequentially through resources A,B,C &C.A rope (communication)should be directed back to the start of the process,resource A to prevent inventory from building up.Depending upon the situation,a second rope can extend from the finished goods inventory location (another buffer)to resource C as described in the text.C.A small buffer inventory should be held between resource B and resource D.The capacity resource profile tells you that recourse A is scheduled at 95 percent of capacity,recourse B at 80% of capacity,recourse C at 130% of capacity and recourse D at 100% of capacity.Assuming that the data we used to calculate the capacity resource profile was reasonably accurate,how would you employ the "drum,buffer,rope" thinking?
This concept is discussed in the text on pages 690-693.The drum or control of the process is at the bottleneck,resource
Q3) Where should an in-process quality inspection be placed? Why there?
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Chapter 21: Linear Programming Using the Excel Solver
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Q1) The number of constraints allowed in a linear program is which of the following?
A)Less than 5
B)Less than 72
C)Less than 512
D)Less than 1,024
E)Unlimited
Q2) In the conventional formulation of a linear programming model we will see all of the decision variables on the right-hand-side of a constraint and a constant value on the left-hand-side.
A)True
B)False
Q3) Linear programming is gaining wide acceptance in many industries due to the availability of detailed operating information and the interest in optimizing processes to reduce cost.
A)True
B)False
Q4) Finding the optimal combination of products to stock in a retail store cannot be solved using linear programming.
A)True
B)False
Page 23
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Chapter 22: Learning Curves
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Q1) You have determined that a 60 percent learning curve is appropriate for a task.If your initial timing of person performing that task was 35 minutes and if you need the task performed 1,000 times,how many minutes of work will be required?
A)3,500.0 minutes
B)1,062.5 minutes
C)705.25 minutes
D)450.5 minutes
E)220.3 minutes
Q2) The unit improvement factor for a 60% learning curve at 25 units is 0.0933.The first and second timings of a person doing a job are 5 minutes and 3 minutes respectively.Which of the below is the learning-adjusted time estimate for unit number 25?
A)0.4665 minutes
B)0.0933 minutes
C)4.665 minutes
D)9.33 minutes
E)3 minutes
Q3) Why are learning curves useful in business?
Q4) What is a learning curve?
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Chapter 23: Job Design Work Measurement
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Q1) If the normal time for a job is 15 minutes and the allowances for the job include 10 percent for personal needs,5 percent for unavoidable work delays and 3 percent for work fatigue,which one of the following comes closest to the standard time for this job?
A)10 minutes
B)15 minutes
C)18 minutes
D)24 minutes
E)35 minutes
Q2) In work sampling,which one of the following main issues must be decided before undertaking the study?
A)How much money will be saved
B)How many observations are necessary
C)What is the ratio of time to money savings
D)Whether a stop watch or video camera should be used
E)What data shall be collected
Q3) Employees should be able to exercise some discretion and decision making in doing their work.
A)True
B)False
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Chapter 24: Waiting Line Analysis
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Q1) Standing in line to buy a ticket for a movie where there are multiple windows to buy tickets is 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 the above
Q2) There are different queuing models to fit different queuing situations.
A)True
B)False
Q3) A variable arrival rate is more common in waiting line management than a constant arrival rate.
A)True
B)False
Q4) Ideally in waiting line or queuing analysis we want to balance the cost of service capacity with the cost of waiting.
A)True
B)False
Q5) In what ways can management influence the arrival patterns of waiting lines?
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Chapter 25: Process Capability and Spc
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Q1) You have 75 total defects from 100 different samples of 15.What is p?
Q2) The capability index (C<sub>pk</sub>)calculates the percentage of items being produced within specifications.
A)True
B)False
Q3) Which of the following should we use an "R" chart to monitor process quality?
A)Weighing trucks at a highway inspection station to determine if they are overloaded
B)Deciding whether an airliner has sufficient fuel for its trip
C)Student grades measured from 1 to 100
D)Determining whether vehicles from a motor pool will run
E)Determining the accuracy of a forecast of "snow"
Q4) You want to develop a three-sigma "R" chart.You know the average range is 12 based on several samples of size 6.Which of the following is the resulting LCL?
Q5) If the fraction defective is 0.12 based on a sample size of 16,the standard deviation used in the "p" chart is about 0.08.
A)True
B)False
Q6) What is the symbol designating the capability index?
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Chapter 26: Simulation
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Q1) A desirable feature of simulation software is which of the following?
A)Have micro capability,such as the ability to zoom in on minute details
B)Output standard statistics such as cycle times,utilizations and wait times
C)Limiting the variety of data reported to help focus the analysis of alternatives
D)The ability to manipulate the frequency distribution pattern to achieve desired results
E)The ability to exactly mimic the actual situation being simulated
Q2) The leading general and special purpose simulation models follow a well-documented and standardized approach.
A)True
B)False
Q3) The first step in the major phase "constructing the simulation model" is to determine which properties of the system should be fixed (called parameters)and which should be allowed to assume different values (called variables)throughout the simulation run.
A)True
B)False
Q4) What are the major phases of a simulation study?
Q5) What are two ways that time is incremented in simulation models?
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