Production and Operations Management Practice Exam
Course Introduction
Production and Operations Management explores the strategies, tools, and techniques used to efficiently produce goods and deliver services. The course covers topics such as process design, capacity planning, inventory management, scheduling, quality control, supply chain management, and lean operations. Through case studies and real-world examples, students learn how organizations optimize resources, minimize costs, and enhance productivity while maintaining high standards of quality and customer satisfaction. The course also addresses the impact of technology and sustainability in modern production and operations environments.
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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Sample Questions
Q1) Briefly describe the four primary functional areas of a firm.How is operations related to them?
Answer: The four primary functional areas of a firm are marketing,finance,operations,and human resources.For most firms,operations is the technical core or "hub" of the organization,interacting with the other functional areas and suppliers to produce goods and services for customers.For example,marketing provides sales forecasts to operations and operations provides marketing with product availability information,lead time estimates and delivery schedules.Operations provides finance with inventory and production data,capital budgeting and equipment requests,and technology plans.Finance provides the capital resources for financing inventory and securing more capital equipment.Operations relies on human resources to meet its personnel needs-hiring,training,and evaluating workers.
Q2) To be competitive firms must create and sustain core competencies that are in tune with their customer's order winners.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Quality Management
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Sample Questions
Q1) Deming advocated continuous process improvement to reduce variability and achieve conformance to design specifications.
A)True
B)False
Answer: True
Q2) Which of the following is not a dimension of quality for a manufactured good?
A)performance
B)reliability
C)courtesy
D)durability
Answer: C
Q3) Deming believed that only employees are responsible for improving quality.
A)True
B)False
Answer: False
Q4) The dimension of quality related to the life-span of a product before replacement is known as durability.
A)True
B)False
Answer: True
Page 4
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Chapter 3: Statistical Quality Control
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Sample Questions
Q1) The smaller the historical proportion defective reported for a process,the larger the sample size required to detect special cause variation with a p-chart.
A)True
B)False
Answer: True
Q2) Which of the following statements concerning control chart limits is true?
A)the smaller the value of z,the more narrow the control limits are and the more sensitive the chart is to changes in the production process
B)the larger the value of z,the more narrow the control limits are and the more sensitive the chart is to changes in the production process
C)the smaller the value of z,the wider the control limits are and the less sensitive the chart is to changes in the production process
D)the larger the value of z,the more narrow the control limits are and the less sensitive the chart is to changes in the production process
Answer: A
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5
Chapter 4: Product Design
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Sample Questions
Q1) Design review involves identifying possible defects and the value added by each part or component,
A)True
B)False
Q2) Extended producer responsibility EPR)is a concept that holds companies responsible for their products following the products' useful lives.
A)True
B)False
Q3) Modular design combines standardized building blocks,or modules,to create unique finished products.
A)True
B)False
Q4) Modular design is one way to gain the benefits of standardization without losing the advantage of variety and uniqueness.
A)True
B)False
Q5) Concurrent design is often aided by the use of technology.
A)True
B)False
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Chapter 5: Service Design
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Sample Questions
Q1) If service times are exponentially distributed then service rates are normally distributed.
A)True
B)False
Q2) What are the basic elements of a waiting line? Define each.
Q3) If the average service rate is smaller than the average arrival rate an infinitely large waiting line queue)will form.
A)True
B)False
Q4) A dentist office is an example of a
A)Service factory
B)Mass service
C)Service shop
D)Professional services
Q5) Service companies are centralized and geographically concentrated.
A)True
B)False
Q6) In general,a service and its delivery system are inseparable.
A)True
B)False
Page 7
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Chapter 6: Processes and Technology
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Sample Questions
Q1) Most of the operations in batch production involve
A)fabrication
B)assembly
C)continuous processing
D)outsourcing
Q2) A process flowcharts is a useful tool for analyzing a process because it often highlights nonproductive activities.
A)True
B)False
Q3) A process is a group of unrelated tasks with specific inputs and outputs.
A)True
B)False
Q4) Which of the following is not a potential risk associated with a project?
A)huge swings in resource requirements
B)extensive learning curve benefits
C)limited learning curve benefits
D)small swings in resource requirements
Q5) What is a process strategy and how does it affect the firm?
Q6) List some non-economic factors that can influence a firm's outsourcing decision.
Page 8
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Chapter 17: Scheduling
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Sample Questions
Q1) The longest processing time (LPT)rule tends to complete larger jobs in-house when subcontracting is anticipated.
A)True
B)False
Q2) The process of assigning work to limited resources is known as scheduling.
A)True
B)False
Q3) Scheduling is considered the last stage of the planning process.
A)True
B)False
Q4) Job shop scheduling is also known as shop floor control.
A)True
B)False
Q5) Increasing the capacity of a work center that is a bottleneck increases output.
A)True
B)False
Q6) Typically,there are more options available when scheduling employees because labor is a very flexible resource.
A)True
B)False
Page 9
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Chapter 7: Capacity and Facilities
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Sample Questions
Q1) The process of equalizing the amount of work at each workstation in a product layout is known as
A)block diagramming.
B)precedence requirements.
C)line balancing.
D)cycle time analysis.
Q2) Briefly describe facility layout and the different objectives involved with facility layout decision.
Q3) The best operating level is the percent of capital cushion that minimizes unit cost. A)True
B)False
Q4) Fixed-position layouts are used for projects when the product cannot be moved. A)True B)False
Q5) Single model and mixed model assembly lines are similar in layout and operation. A)True B)False
Q6) What type of layout is commonly used in services? What are some of the objectives associated with service layouts?
Page 10
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Chapter 8: Human Resources
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Sample Questions
Q1) Companies with a quality focus generally give their employees the power to make decisions that will improve quality.
A)True
B)False
Q2) Among the disadvantages of task specialization are high output,high costs,and extensive training.
A)True
B)False
Q3) Globalization has resulted in an overall reduction in diversity related issues in the workplace.
A)True
B)False
Q4) The interface of workers with machines is probably the least important aspect of job design.
A)True
B)False
Q5) Briefly discuss the advantages and disadvantages of using learning curves.
Q6) List the three categories of the principles of motion study and give two rules for each category.
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Chapter 9: Project Management
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Sample Questions
Q1) The longest path through a project network is referred to as the A)activity-on-node path.
B)path of greatest slack.
C)critical path.
D)noncritical path.
Q2) The _______________ is a document that provides a common understanding,justification,and expected result for a project.
A)statement of work
B)work breakdown structure
C)scope statement.
D)responsibility assignment matrix
Q3) In general,crashing costs decrease as a project's duration is shortened.
A)True
B)False
Q4) Two key elements of project control are time management and cost management. A)True
B)False
Q5) The earliest start time for an activity is at time zero. A)True
B)False
12
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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 a key performance indicator used in supply chain management?
A)Fill rate
B)Days of supply
C)Cost of goods
D)Inventory turns.
Q2) Supply chain integration does not involve __________________ among supply chain members.
A)providing information
B)collaborating on replenishment
C)reducing competition
D)coordinating work flows
Q3) The bullwhip effect can
A)increase inventories.
B)increase demand.
C)increase customer service levels.
D)increase capacity.
Q4) What is the bullwhip effect and how does it occur?
Q5) What is a supply chain?
Q6) What processes comprise the supply chain and how are the processes integrated? Page 13
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Page 14
Chapter 11: Global Supply Chain Procurement and Distribution
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Sample Questions
Q1) One of the advantages of outsourcing is that firms can focus on what they do best.
A)True
B)False
Q2) Outsourcing supports vertical integration of a firm's supply chain.
A)True
B)False
Q3) Quality has been a problem in Mexico where it can vary dramatically between companies.
A)True
B)False
Q4) List and discuss the seven different modes of transportation.
Q5) Factors driving globalization of the supply chain include all of the following except A)international trade agreements.
B)advances in information technology.
C)lower cost transportation.
D)government intervention .
Q6) Identify some of the obstacles to global supply chain management.
Q7) List and explain the major components of a warehouse management system.
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Chapter 12: Forecasting
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Sample Questions
Q1) A long-range forecast would normally not be used to A)design the supply chain.
B)implement strategic programs.
C)determine production schedules.
D)plan new products for changing markets
Q2) A mathematical technique for forecasting that relates the dependent variable to an independent variable is
A)correlation analysis.
B)exponential smoothing.
C)linear regression.
D)weighted moving average.
Q3) Forecast bias is measured by the per-period average of the sum of the forecast errors.
A)True
B)False
Q4) Short-midrange forecasts tend to use quantitative models that forecast demand based on historical demand.
A)True
B)False
Q5) Compare and contrast short-mid-range forecasts and long-range forecasts.
Page 16
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Chapter 13: Inventory Management
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Sample Questions
Q1) The production quantity model,a variation of the basic EOQ model,assumes non-instantaneous replenishment.
A)True B)False
Q2) The three basic costs associated with inventory are holding costs,ordering costs and shortage costs.
A)True B)False
Q3) A product's usage is normally distributed with a weekly average demand of 2,000 units and a weekly standard deviation of 125.The product's lead time is 4 weeks.Currently,the reorder point for this product is 8,200.If the company would like to have a service level of 95% for this product then
A)it must decrease its safety stock by approximately 412 units.
B)it must decrease its safety stock by approximately 212 units.
C)it must increase its safety stock by approximately 412 units.
D)it must increase its safety stock by approximately 212 units.
Q4) Explain the relationship between ordering costs and carrying costs in the economic order quantity (EOQ)model.
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Chapter 13: Operational Decision-Making Tools: Simulation
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Sample Questions
Q1) Simulation is a popular decision-making tool that provides a solution to any type of problem
A)True
B)False
Q2) The Monte Carlo technique is a mathematical model used within a simulation.
A)True
B)False
Q3) Simulation is the preferred technique for problems with random variables represented by probability distributions.
A)True
B)False
Q4) Simulation is often viewed as the technique of last resort because it can be applied to situations when there is no applicable quantitative model.
A)True
B)False
Q5) In what ways is simulation relevant to analyzing production problems?
Q6) What is simulation and why is it a popular decision-making tool?
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Chapter 14: Operational Decision-Making Tools: Linear Programming
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Sample Questions
Q1) The optimal solution for a linear programming problem will always occur at an extreme point.
A)True B)False
Q2) A company produces product A and product B.Each product must go through two processes.Each A produced requires two hours in process 1 and five hours in process 2.Each B produced requires six hours in process 1 and three hours in process 2.There are 80 hours of capacity available each week in each process.Each A produced generates $6.00 in profit for the company.Each B produced generates $9.00 in profit for the company.If the company produces 6 units of A and 9 units of B the value of the objective function is equal to A)$36.
B)$81.
C)$108.
D)$117
Q3) What is meant by the term "shadow price" in linear programming?
Q4) The formulation for a linear programming problem cannot include more than one decision variable.
A)True B)False
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Chapter 14: The Sales and Operations Planning Process
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Sample Questions
Q1) The level strategy for adjusting capacity is only appropriate when there is no variation in demand.
A)True
B)False
Q2) One objective of sales and operations planning is to develop a companywide game plan to satisfy production.
A)True
B)False
Q3) The difference between planned production and customer orders is known as
A)the master production schedule.
B)available-to-promise.
C)capable-to-promise.
D)the disaggregate plan.
Q4) Sharing information and synchronizing production across the supply chain is known as disaggregation.
A)True
B)False
Q5) Briefly discuss the two primary objectives of aggregate planning.
Q6) What are the outputs of aggregate planning?
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Chapter 15: Resource Planning
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Sample Questions
Q1) The product structure file lists all of the following except
A)the product's demand.
B)the items that go into the product.
C)a brief description of each item.
D)when and in what quantity each item is needed in the assembly process.
Q2) Material requirements planning (MRP)is useful for managing and scheduling discrete demand items.
A)True
B)False
Q3) Which of the following is not a major input into capacity requirements planning (CRP)?
A)planned order releases
B)routing file
C)load profiles for each work center
D)open orders file
Q4) What is a bill-of-material?
Q5) One objective of material requirements planning (MRP)is to utilize all available capacity.
A)True
B)False
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Chapter 16: Lean Systems
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Sample Questions
Q1) Which of the following is not a typical component of lead time?
A)processing time
B)maintenance time
C)waiting time
D)setup time
Q2) ______________ setups that can be performed in advance while the machine is running.
A)Internal
B)External
C)Parallel
D)Unnecessary
Q3) Lean production is difficult to implement when
A)demand is highly variable.
B)product variety is high..
C)there are many unique products.
D)all of the above are true.
Q4) What is a kanban and how is it used in a pull system?
Q5) Mixed-modeling sequencing is used at Toyota to reduce setup times.
A)True
B)False
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Chapter 18: Operational Decision-Making Tools: Decision Analysis
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Sample Questions
Q1) The outcome of a decision in referred to as a payoff.
A)True
B)False
Q2) A decision criterion that results in the maximum of the minimum payoffs is called a maximin criterion.
A)True
B)False
Q3) A decision criterion in which the decision payoffs are weighted by a coefficient of optimism is known as the Hurwicz criterion.
A)True
B)False
Q4) The most widely used decision-making criterion for situations with risk is expected value.
A)True B)False
Q5) The LaPlace criterion is a decision criterion in which each state of nature is weighted equally.
A)True B)False
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Chapter 19: Operational Decision-Making Tools: Acceptance Sampling
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Sample Questions
Q1) The _________________ is the maximum number of defective items a customer will accept in a lot.
A)producer's risk
B)consumer's risk
C)average outgoing quality
D)lot tolerance percent defective
Q2) The consumer's risk is the probability of rejecting a lot that meets the acceptable quality level (AQL).
A)True
B)False
Q3) A multiple-sampling plan uses the smallest sample size of any sampling plan.
A)True
B)False
Q4) The average outgoing quality (AOQ)is a measure of the expected number of defective items that will pass on to the customer with the sampling plan selected.
A)True
B)False
Q5) What is the advantage of a multiple-sampling plan?
Q6) .Is acceptance sampling consistent with TQM?
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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) Which of the following is not a primary factor in location decisions for manufacturing plants?
A)proximity to raw materials
B)proximity to customers
C)proximity to different modes of transportation
D)proximity to significant labor pools
Q3) Service operations tend to make location decisions more frequently than manufacturing facilities.
A)True
B)False
Q4) Inadequate infrastructure at a given location increases supply chain costs and decreases customer service.
A)True
B)False
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Chapter 21: Operational Decision-Making Tools: Work Measurement
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Sample Questions
Q1) The allowance factor is a percentage increase in the normal cycle time. A)True
B)False
Q2) Determining the length of time it takes to do a job is known as work measurement.
A)True
B)False
Q3) Work sampling tends to be more disruptive on the workplace than time studies.
A)True
B)False
Q4) How many cycles should be used in a time study in order to be 98% confident that the time-study average job cycle time is within 4% of the true average job cycle time.Assume that the average job cycle time was 4.25 minutes and the standard deviation of the sample was 0.65 minutes.
A)55 cycles
B)70 cycles
C)80 cycles
D)95 cycles
Q5) What is work sampling and what is its primary use?
Q6) List the steps in work sampling.
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