Principles of Operations Management
Exam Materials
Course Introduction
Principles of Operations Management introduces students to the fundamental concepts and strategies used to efficiently manage the production of goods and services. The course explores topics such as process design, capacity planning, inventory management, quality control, supply chain management, and project management. Students learn how to analyze and improve operational processes, make data-driven decisions, and align operations with overall business objectives. Emphasis is placed on understanding the role of operations in creating value, minimizing costs, and achieving competitive advantage in various organizational settings.
Recommended Textbook
OM 5 5th Edition by David Alan Collier
Available Study Resources on Quizplus
23 Chapters
1926 Verified Questions
1926 Flashcards
Source URL: https://quizplus.com/study-set/3569
Page 2
Chapter 1: Goods, Services, and Operations Management
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/70869
Sample Questions
Q1) Which of the following statements is TRUE of service facilities?
A) They are in close proximity to customers.
B) They rely on physical inventory.
C) They take advantage of patents.
D) They are located close to raw materials, suppliers, and labor.
Answer: A
Q2) Which of the following jobs requires the most service management skills and knowledge?
A) Airplane mechanic
B) Usher at sports stadium
C) Restaurant cook
D) Airline Flight attendant
Answer: D
Q3) A network of processes that creates value for customers is known as a _____.
A) process network
B) value network
C) customer value
D) value chain
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Value Chains
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/70871
Sample Questions
Q1) Value chain integration for goods-producing firms 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
Q2) _____ is the process of managing information, physical goods, and services to ensure their availability at the right place, at the right time, at the right cost, at the right quantity, and with the highest attention to quality.
A) Offshoring
B) Value proposition
C) Operational structure
D) Value chain integration
Answer: D
Q3) Sustainable practices can lead to increased revenues.
A)True
B)False
Answer: True
To view all questions and flashcards with answers, click on the resource link above.
4
Chapter 3: Measuring Performance in Operations
Available Study Resources on Quizplus for this Chatper
98 Verified Questions
98 Flashcards
Source URL: https://quizplus.com/quiz/70873
Sample Questions
Q1) Explain the difference between goods and service quality, and how they are measured.
Answer: Goods quality relates to the physical performance and characteristics of a good. Goods quality is generally measured using instruments, technology, and data collection processes.Service quality is consistently meeting or exceeding customer expectations (external focus) and service delivery system performance (internal focus) for all service encounters. Service-quality measures are based primarily on human perceptions of service collected from customer surveys, focus groups, and interviews.
Q2) Airline revenue per passenger mile and hotel revenue per full-time employee are examples of _____.
A) reliability
B) value of a loyal customer
C) sustainability
D) productivity
Answer: D
Q3) The customer defection rate is expressed as 1/customer retention rate.
A)True
B)False
Answer: False
To view all questions and flashcards with answers, click on the resource link above.
Page 5
Chapter 4: Operations Strategy
Available Study Resources on Quizplus for this Chatper
82 Verified Questions
82 Flashcards
Source URL: https://quizplus.com/quiz/70875
Sample Questions
Q1) Improving design quality usually allows a firm to charge higher prices and thus increase revenue and profit.
A)True
B)False
Q2) Which of the following statements best represents McDonald's vision?
A) To be the world's best quick-service restaurant experience
B) To be the most innovate organization in the world
C) To develop and maintain a diverse workforce
D) To be the most efficient process-oriented organization in the world
Q3) Order winners are goods and service features and performance characteristics that differentiate one customer benefit package from another and win a customer's business.
A)True
B)False
Q4) The _____ of a firm are the strengths that are unique to that organization.
A) strategy developments
B) strategic missions
C) vision statements
D) core competencies
Q5) Explain how sustainability is related to operations strategy.
Page 6
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Technology and Operations Management
Available Study Resources on Quizplus for this Chatper
77 Verified Questions
77 Flashcards
Source URL: https://quizplus.com/quiz/70876
Sample Questions
Q1) Explain the concept of industrial robots.
Q2) How does customer relationship management (CRM) help a firm gain competitive advantage?
Q3) Offshoring is a phenomenon by which the same or an increased quality and quantity of goods and/or services are created using fewer natural resources.
A)True
B)False
Q4) A firm must make a choice between a manual and a semi-automatic production process for a new product line. The following are the costs for each process: \(\begin{array}{|l|c|c|}
\hline \text { Alternative } & \text { Fixed Cost } & \text { Variable Cost } \\
\hline \text { Manual } & \$ 100,000 & \$ 75.00 \\
\hline \text { Semi-Automatic } & \$ 300,000 & \$ 50.00 \\
\hline
\end{array}\) The breakeven volume is _____.
A) less than or equal to 2000 units
B) more than 2000 but less than or equal to 4000 units
C) more than 4000 but less than or equal to 6000 units
D) more than 6000 but less than or equal to 8000 units
To view all questions and flashcards with answers, click on the resource link above. Page 7
Chapter 6: Goods and Service Design
Available Study Resources on Quizplus for this Chatper
118 Verified Questions
118 Flashcards
Source URL: https://quizplus.com/quiz/70868
Sample Questions
Q1) 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.
Q2) Identify a TRUE statement about the integrative case study of LensCrafters.
A) LensCrafters primary product is physical goods (i.e., eyewear).
B) Each store has a unique servicescape and layout.
C) The manufacturing process is integrated into the service facility.
D) Low cost makes a long drive to LensCrafters worthwhile.
Q3) The simpler the product design, the better the chance of high process efficiency.
A)True
B)False
Q4) The design of a service cannot be done independently from the "process" by which the service is delivered.
A)True
B)False
Q5) Describe the Taguchi loss function. Contrast it to the goal-post model.
Q6) Explain the importance of service recovery.
Page 8
To view all questions and flashcards with answers, click on the resource link above.
Chapter 7: Process Selection, Design, and Analysis
Available Study Resources on Quizplus for this Chatper
116 Verified Questions
116 Flashcards
Source URL: https://quizplus.com/quiz/70870
Sample Questions
Q1) A custom machine shop is able to process 25 orders per day. The average processing time is 4 days. What is the average number of orders that are in process at any time?
A) Less than 50
B) More than 50 but less than or equal to 100
C) More than 100 but less than or equal to 150
D) More than 150 but less than or equal to 200
Q2) 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.
Q3) A company can differentiate itself from its competitors by positioning itself along the diagonal of the product-process matrix.
A)True
B)False
Q4) To improve process designs, one must focus on increasing costs through better technology.
A)True
B)False
Q5) Explain the concept of hierarchy of work. Why is it useful in process design activities?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Facility and Work Designs
Available Study Resources on Quizplus for this Chatper
92 Verified Questions
92 Flashcards
Source URL: https://quizplus.com/quiz/70877
Sample Questions
Q1) The total idle time is _____ seconds.
A) less than or equal to 20
B) more than 20 but less than or equal to 30
C) more than 30 but less than or equal to 40
D) more than 40 but less than or equal to 50
Q2) Differentiate between a flow-blocking delay and lack-of-work delay. How can each be reduced?
Q3) All of the following are common objectives of layout studies EXCEPT to:
A) minimize delays in materials handling and customer movement.
B) minimize the number of workstations.
C) provide for good housekeeping and maintenance.
D) maintain flexibility.
Q4) _____ is vertical expansion of job duties to give a worker more responsibility.
A) Job enlargement
B) Job rotation
C) Job enrichment
D) Job design
Q5) Product layouts are less flexible than process layouts.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Supply Chain Design
Available Study Resources on Quizplus for this Chatper
87 Verified Questions
87 Flashcards
Source URL: https://quizplus.com/quiz/70878
Sample Questions
Q1) The point in the supply chain that separates the push system from the pull system is called the _____.
A) point of separation
B) push-pull boundary
C) postponement site
D) center of push-pull system
Q2) _____ is the process of delaying product customization until the product is closer to the customer at the end of a supply chain.
A) Postponement
B) Sourcing
C) Deferral
D) Multisite management
Q3) In designing an efficient supply chain, an organization would need high levels of inventory stored in many small distribution centers.
A)True
B)False
Q4) Explain how the center of gravity is determined.
Q5) Explain about a supply chain.
Q6) Summarize the supply chain operations reference (SCOR) model.
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Capacity Management
Available Study Resources on Quizplus for this Chatper
89 Verified Questions
89 Flashcards
Source URL: https://quizplus.com/quiz/70879
Sample Questions
Q1) A firm will encounter short periods of over- and underutilization of resources with the _____ strategy.
A) capacity lag
B) capacity straddle
C) capacity lead
D) capacity reduction
Q2) The total process (throughput) capacity in units per hour for the five stage process, A to D, assuming 3 administrative clerks, 2 coding specialist, and 4 assistant managers on duty is:
A) less than 10 units per hour.
B) more than 10 units but less than or equal to 20 units.
C) more than 20 units but less than or equal to 30 units.
D) more than 30 units but less than or equal to 40 units.
Q3) The process (throughput) capacity in units per hour for the four stage process, A to D, assuming 2 administrative clerks, 3 coding specialists, and 3 assistant managers on duty is _____.
A) less than 10 units per hour
B) more than 10 units but less than or equal to 20 units
C) more than 20 units but less than or equal to 30 units
D) more than 30 units but less than or equal to 40 units
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Forecasting and Demand Planning
Available Study Resources on Quizplus for this Chatper
95 Verified Questions
95 Flashcards
Source URL: https://quizplus.com/quiz/70880
Sample Questions
Q1) The mean squared error (MSE) is:
A) less than or equal to 300.
B) more than 300 but less than or equal to 350.
C) more than 350 but less than or equal to 400.
D) more than 400 but less than or equal to 450.
Q2) The three-period moving average for the next week (week 5) is:
A) less than or equal to 100.
B) more than 100 but less than or equal to 110.
C) more than 110 but less than or equal to 120.
D) more than 120 but less than or equal to 130.
Q3) Regression analysis:
A) is limited to one dependent and one independent variable.
B) is best with nonlinear relationships.
C) maximizes the sum of the squared deviations between the actual time-series value and the estimated values of the dependent variable.
D) can be used with time as the independent variable.
Q4) Describe some of the issues that managers must consider in applying forecasting methods in practice.
Q5) Define time series and its characteristics.
Q6) Explain the difference between statistical forecasting and judgment forecasting.
Page 13
To view all questions and flashcards with answers, click on the resource link above.
Chapter 12: Managing Inventories
Available Study Resources on Quizplus for this Chatper
117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/70881
Sample Questions
Q1) Work-in-process inventory is completed products ready for distribution or sale to customers.
A)True
B)False
Q2) Average inventory in the economic order quantity (EOQ) model is defined as:
A) the order quantity divided by the number of inventory cycles per year.
B) the annual usage divided by the number of inventory cycles per year.
C) one-half of the order quantity.
D) one-half of the annual usage.
Q3) In ABC inventory analysis, which of the following is TRUE of class A items?
A) Class A items need not be closely controlled.
B) Class A items account for 5 to 15 percent of the total dollar value.
C) Class A items account for a relatively small percentage of total items.
D) Class A items have a relatively low volume and low unit costs compared to Class C items.
Q4) Inventory management does not involve supplies and replacement parts.
A)True
B)False
Q5) Illustrate the single-period inventory model with an example.
Q6) Explain the different types of inventories maintained throughout a value chain.
Page 14
To view all questions and flashcards with answers, click on the resource link above.
Chapter 13: Resource Management
Available Study Resources on Quizplus for this Chatper
106 Verified Questions
106 Flashcards
Source URL: https://quizplus.com/quiz/70882
Sample
Questions
Q1) A firm produces two models of pagers, products A and B, on a produce-to-stock basis and is trying to develop a master production schedule for its operation. Safety stock is 30 for product A and 20 for product B. Fixed lot sizes are 70 for product A and 40 for product B. The beginning inventories are 30 for A and 30 for B. The demand for these products comes from many different sources, but the total weekly demand for each of the next six weeks is given as follows: \(\begin{array}{|l|l|l|l|l|l|l|}
\hline & \text { Week } & & & & & \\
\hline \text { Product } & 1 & 2 & 3 & 4 & 5 & 6 \\
\hline \text { A } & 60 & 30 & 50 & 60 & 70 & 60 \\
\hline \text { B } & 50 & 20 & 40 & 30 & 30 & 40 \\
\hline \end{array}\)
a.What is the production quantity for Product A for Week 3?
b.What is the ending inventory for Product A for Week 3?
c.What is the production quantity for Product B for Week 5?
d.What is the beginning inventory for Product B for Week 5?
Q2) Explain how a bill of materials (BOM), bill of labor (BOL), and bill of resources (BOR) relate.
To view all questions and flashcards with answers, click on the resource link above. Page 15
Chapter 14: Operations Scheduling and Sequencing
Available Study Resources on Quizplus for this Chatper
79 Verified Questions
79 Flashcards
Source URL: https://quizplus.com/quiz/70883
Sample Questions
Q1) The time needed to process a given set of jobs is called:
A) flow time.
B) ready time.
C) makespan.
D) due date.
Q2) Appointments can be viewed as a reservation of service time and capacity.
A)True
B)False
Q3) If the highest priority is to minimize the average job lateness, then the job sequence should begin with those jobs requiring:
A) the shortest processing time.
B) the smallest critical ratio.
C) the least remaining operations.
D) the longest processing time.
Q4) Using the earliest due date (EDD) rule, the average flow time for the five jobs is _____.
A) less than or equal to 5 days
B) more than 5 but less than or equal to 10 days
C) more than 10 but less than or equal to 15 days
D) more than 15 but less than or equal to 20 days
Page 16
To view all questions and flashcards with answers, click on the resource link above.
Chapter 15: Appendix: Quality Management
Available Study Resources on Quizplus for this Chatper
56 Verified Questions
56 Flashcards
Source URL: https://quizplus.com/quiz/70867
Sample Questions
Q1) A job had a normal time of 2.43 minutes, an allowance of 20 percent, and a forecast demand of 120 units per day. How long should it take to produce one day's output?
Q2) The Chester Table Company mass produces quality end tables for motels. They produce 5,000 end tables per week. The owner is trying to determine how many workers he needs. The workers work 40 hours per week but are idle about three percent of the time because of the cleaning of their area. Their performance rating is equal to one. The owner has developed these time standards for operations per table: Transporting the table through the plant = 2 minutes
Table top = 10 minutes
One leg = 4 minutes
Finishing = 5 minutes
a. How long does it take (in minutes) to produce one table?
b. What is the labor standard (in minutes) for this operation?
c. What is the minimum number of workers needed to produce 5000 tables in one week?
Q3) Determine the sample size for the following time study given a standard deviation of three ounces and a 92 percent probability that the value of the sample mean is within two ounces?
To view all questions and flashcards with answers, click on the resource link above. Page 17
Chapter 15: Quality Management
Available Study Resources on Quizplus for this Chatper
81 Verified Questions
81 Flashcards
Source URL: https://quizplus.com/quiz/70884
Sample Questions
Q1) A tool used to show the frequency or number of observations of a particular value or within a specific group is a _____.
A) histogram
B) cause-and-effect diagram
C) scatter diagram
D) flowchart
Q2) Using a cause-and-effect diagram helps identify the most likely causes of a problem so that further data collection can be carried out.
A)True
B)False
Q3) Cause-and-effect diagrams would help most in which phase of the DMAIC problem-solving approach?
A) Define
B) Measure
C) Analyze
D) Control
Q4) Define root cause and describe root cause analysis.
Q5) Discuss different ways of defining quality and how these differ for goods and services.
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 16: Quality Control and Spc
Available Study Resources on Quizplus for this Chatper
110 Verified Questions
110 Flashcards
Source URL: https://quizplus.com/quiz/70872
Sample Questions
Q1) Which of the following suggests a process that is NOT in control?
A) Points follow a smooth pattern from the lower control limit to the upper control limit.
B) The number of points above and below the center line is about the same.
C) Points fall randomly above and below the center line.
D) No points are outside the control limits.
Q2) It is not necessary to have a process in control when establishing control limits.
A)True
B)False
Q3) The lower the rate of defects, the higher the sample size should be in p-charts.
A)True
B)False
Q4) Quality control ensures that a good or service conforms to specifications and meets customer requirements.
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.
To view all questions and flashcards with answers, click on the resource link above.
19
Chapter 16: Appendix: Queuing Analysis
Available Study Resources on Quizplus for this Chatper
38 Verified Questions
38 Flashcards
Source URL: https://quizplus.com/quiz/70866
Sample Questions
Q1) If the probability of a number of people waiting is 0.10, the probability of one person waiting is 0.09, and the probability of two people waiting is 0.08, what is the probability of three or more people waiting?
A) 0.27
B) 0.73
C) 0.90
D) Cannot be determined
Q2) For a single-server queuing model, which of the following is NOT a key assumption?
A) The pattern of arrivals follows a Poisson probability distribution.
B) Service times follow an exponential probability distribution.
C) The queue discipline is random.
D) No balking or reneging happens.
Q3) Generally for queuing models, the slower the rate of arrivals, the shorter is the time period chosen.
A)True
B)False
Q4) What are the seven key assumptions for the multiple-server waiting line model?
Q5) Describe at least four queue disciplines.
Q6) What are five key assumptions for the basic, single-channel waiting line model?
Page 20
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Appendix: Modeling Using Linear Programming
Available Study Resources on Quizplus for this Chatper
41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/70865
Sample Questions
Q1) The precedence relationships in a network limit the activity _____.
A) nonnegativity time
B) overtime
C) crash time
D) inventory time
Q2) If Activity C directly precedes both D and E on a project network, and C can be crashed three (3) times using linear programming, then:
A) crash time affects only C.
B) crash time affects only C and D.
C) crash time affects only C and E.
D) crash time affects both D and E.
Q3) The term 'programming' is used in linear programming because these models find the best 'program' or course of action to follow.
A)True
B)False
Q4) Explain the steps necessary to solve a linear programming problem using Microsoft Excel's Solver.
Q5) Discuss the concept of optimization models with examples.
Q6) What characterizes a linear function?
21
To view all questions and flashcards with answers, click on the resource link above.
Chapter 17: Lean Operating Systems
Available Study Resources on Quizplus for this Chatper
84 Verified Questions
84 Flashcards
Source URL: https://quizplus.com/quiz/70874
Sample Questions
Q1) The Timken Company used a Lean Six Sigma approach that was highly successful.
A)True
B)False
Q2) Six Sigma addresses visible problems in processes; lean production is more concerned with less visible problems.
A)True
B)False
Q3) Which one of the following is a best practice of just-in-time systems?
A) Use of disposable containers
B) Increased setup/changeover times to maximize productivity
C) Minimal distance traveled for materials and parts handling systems
D) Highly specialized jobs with little or no cross-training
Q4) A manufacturer of automobile engines is designing a new Kanban system for engine #321. The demand for #321 is 75/day, and they are built in groups of 8. The total process and wait time is 3 days. The manager wants an alpha ( ) of 2 or 200 percent. How many Kanbans are required?
Q5) The 5Ss focus on improving waste generated by inefficient transportation.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 22
Chapter 18: Appendix: Simulation
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/70864
Sample Questions
Q1) A local legal aid office provides basic legal assistance to walk?in clients. The historical arrival frequency is as shown below:
Clients Arriving Relative Per Hour Frequency
1 20%
2 30%
3 40%
4 10%
Service times are characterized by a normal distribution with a mean of 10 minutes and a standard deviation of 4 minutes. They are interested in using simulation to find the total amount of service time for each hour of a six-hour working day. They generated the following random numbers for hours 1-6 respectively: 63, 13, 67, 50, 71, and 25.
a. On a scale of 00?99, what random number range corresponds to 3 clients arriving per hour?
b. What is the number of clients arriving in hour 4?
c. What is the total service time in minutes for hour 1?
Q2) Discuss a simulator. Provide appropriate examples.
Q3) Discuss two advantages and three disadvantages of simulation models.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 18: Project Management
Available Study Resources on Quizplus for this Chatper
108 Verified Questions
108 Flashcards
Source URL: https://quizplus.com/quiz/70885
Sample Questions
Q1) Which of the following activities has the largest amount of slack?
A) Activity A
B) Activity B
C) Activity C
D) Activity D
Q2) What is the total project (normal plus crash) cost?
A) Less than or equal to $60,000
B) Greater than $60,000 but less than or equal to $65,000
C) Greater than $65,000 but less than or equal to $70,000
D) Greater than $70,000
Q3) The critical path method (CPM) work breakdown structure consists of all of the following EXCEPT:
A) the number and definition of each project activity.
B) the normal time to complete each activity.
C) the immediate predecessors (i.e., the precedent relationships).
D) the probabilities of completing each activity.
Q4) The early start time for an activity is computed by finding the largest early finish time of all immediate predecessors.
A)True
B)False
Page 24
To view all questions and flashcards with answers, click on the resource link above.
Chapter 19: Appendix: Decision Analysis
Available Study Resources on Quizplus for this Chatper
44 Verified Questions
44 Flashcards
Source URL: https://quizplus.com/quiz/70863
Sample Questions
Q1) Opportunity loss or ill-feeling that people often have after making a nonoptimal decision is best related to _____.
A) maximax
B) maximin
C) minimax regret
D) expected value
Q2) _____ represent a future outcome that can occur after a decision is made that are not under the control of the decision maker.
A) Decision alternatives
B) Events
C) Payoffs
D) Probabilities
Q3) Making decisions in an emergency room of a hospital is an example of a decision analysis situation.
A)True
B)False
Q4) In what type of situation would the expected value criterion be useful? In what type of situation would it not be useful?
Q5) List the four elements of a decision problem.
To view all questions and flashcards with answers, click on the resource link above. Page 25