Production and Operations Management Test Questions
Course Introduction
Production and Operations Management explores the fundamental principles and techniques used to efficiently design, operate, and improve the processes by which goods and services are produced. This course examines topics such as process analysis, capacity planning, inventory control, quality management, supply chain coordination, and project scheduling. Through analytical tools, case studies, and real-world applications, students gain a practical understanding of how to optimize resources, improve productivity, and deliver value to customers while balancing cost, quality, and time constraints.
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Principles of Operations Management Sustainability and Supply Chain Management 10th Edition
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Page 2
Chapter 1: Operations and Productivity
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Sample Questions
Q1) The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. Due to higher demand, they have decided to operate three 8-hour shifts instead. They are now able to produce 600 boxes per day. What has happened to productivity?
A) It has not changed.
B) It has increased by 37.5 boxes/hr.
C) It has increased by 20%.
D) It has decreased by 8.3%.
E) It has decreased by 9.1%.
Answer: A
Q2) Which of the following tasks within an Airline Company are related to Operations?
A) Crew Scheduling
B) International Monetary Exchange
C) Sales
D) Advertising
E) Accounts Payable
Answer: A
Q3) Identify the three productivity variables used in the text.
Answer: The three common variables are labor, capital, and management.
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3
Chapter 2: Operations Strategy in a Global Environment
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Sample Questions
Q1) Which of the following is <b>true</b>?
A) Corporate mission is shaped by functional strategies.
B) Corporate strategy is shaped by functional strategies.
C) Functional strategies are shaped by corporate strategy.
D) External conditions are shaped by corporate mission.
E) Functional area missions are merged to become the organizational mission.
Answer: C
Q2) Which of the following is not part of value-chain analysis?
A) product research
B) quality management
C) supply-chain management
D) marketing
E) human resources
Answer: D
Q3) NAFTA seeks to phase out all trade and tariff barriers between the United States and Asia.
A)True
B)False
Answer: False
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Page 4
Chapter 3: Project Management
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Sample Questions
Q1) Briefly discuss what is meant by critical path analysis. What are critical path activities and why are they important?
Answer: The critical path consists of those tasks that determine the overall project completion time (or that will delay the completion of the project if they are delayed); these must be managed most closely to ensure timely completion of the project. Critical path analysis is the determination of which task elements are on, or likely to be on, the critical path (the longest path through the network).
Q2) PERT, but not CPM, has the ability to consider the precedence relationships in a project.
A)True
B)False
Answer: False
Q3) The main difference between PERT and CPM is that
A) PERT is more accurate than CPM
B) PERT assumes that activity durations are known
C) PERT ignores activity costs
D) CPM assumes that activity durations can vary
E) None of the above are true
Answer: E
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Page 5
Chapter 4: Forecasting
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Sample Questions
Q1) Give an example-other than a restaurant or other food-service firm-of an organization that experiences an hourly seasonal pattern. (That is, each hour of the day has a pattern that tends to repeat day after day.) Explain.
Q2) __________ forecasts are concerned with rates of technological progress, which can result in the birth of exciting new products, requiring new plants and equipment.
Q3) The quarterly "make meeting" of Lexus dealers is an example of a sales force composite forecast.
A)True
B)False
Q4) Explain the role of regression models (time series and otherwise) in forecasting. That is, how is trend projection able to forecast? How is regression used for causal forecasting?
Q5) The larger the number of periods in the simple moving average forecasting method, the greater the method's responsiveness to changes in demand.
A)True
B)False
Q6) Identify four quantitative forecasting methods.
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Page 6
Chapter 5: Design of Goods and Services
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Sample Questions
Q1) __________ is a process for determining customer requirements and translating them into attributes that each functional area can understand and act upon.
Q2) In the maturity stage of the product life cycle, operations managers will be concerned with adding capacity or enhancing existing capacity to accommodate the increase in product demand.
A)True
B)False
Q3) An assembly chart
A) shows graphically how the product is assembled
B) shows an exploded view of the product
C) lists the operations, including assembly and inspection, necessary to produce the component with the material specified in the bill of material
D) provides detailed instructions on how to perform a given task
E) describes the dimensions and finish of each component
Q4) An assembly drawing lists the operations necessary to produce the component. A)True B)False
Q5) Briefly explain how Product Lifecycle Management (PLM) impacts product design.
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Chapter 6: Managing Quality
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Sample Questions
Q1) Three broad categories of definitions of quality are
A) product quality, service quality, and organizational quality
B) user-based, manufacturing-based, and product-based
C) internal, external, and prevention
D) low-cost, response, and differentiation
E) Pareto, Shewhart, and Deming
Q2) A manager tells her production employees, "It's no longer good enough that your work fall anywhere within the specification limits. I need your work to be as close to the target value as possible." Her thinking is reflective of
A) internal benchmarking
B) Six Sigma
C) ISO 9000
D) Taguchi concepts
E) process control charts
Q3) A fishbone diagram is also known as a
A) cause-and-effect diagram
B) poka-yoke diagram
C) Kaizen diagram
D) Kanban diagram
E) Taguchi diagram
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Chapter 7: Statistical Process Control
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Sample
Questions
Q1) The usual purpose of an R-chart is to signal whether there has been a
A) gain or loss in dispersion
B) change in the percent defective in a sample
C) change in the central tendency of the process output
D) change in the number of defects in a sample
E) none of the above
Q2) A local manufacturer supplies you with parts, and you would like to install a quality monitoring system at his factory for these parts. Historically, the defect rate for these parts has been 1.25 percent (You've observed this from your acceptance sampling procedures, which you would like to discontinue). Develop ± 3 control limits for this process. Assume the sample size will be 200 items.
Q3) The Central Limit Theorem
A) is the theoretical foundation of the c-chart
B) states that the average of assignable variations is zero
C) allows managers to use the normal distribution as the basis for building some control charts
D) states that the average range can be used as a proxy for the standard deviation E) controls the steepness of an operating characteristic curve
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Chapter 8: Process Strategy
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Sample Questions
Q1) The four R's of sustainability do not include
A) recycling
B) resources
C) regulations
D) reputation
E) responsibility
Q2) Advances in technology
A) have impacted the manufacturing sector only
B) have had only limited impact on services
C) have failed to change the level of customer interaction with an organization
D) have had dramatic impact on customer interaction with services and with products
E) have dramatically changed health care, but have not changed retailing
Q3) A product is currently made in a process-focused shop, where fixed costs are $9,000 per year and variable cost is $50 per unit. The firm is considering a fundamental shift in process, to repetitive manufacture. The new process would have fixed costs of $90,000, and variable costs of $5. What is the crossover point for these processes? For what range of outputs is each process appropriate?
Q4) __________ is the use of information technology to control a physical process.
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Page 10
Chapter9: Capacity and Constraint Management
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Sample Questions
Q1) A firm produces three products in a repetitive process facility. Product A sells for $60; its variable costs are $20. Product B sells for $200; its variable costs are $80. Product C sells for $25; its variable costs are $15. The firm has annual fixed costs of $320,000. Last year, the firm sold 1000 units of A, 2000 units of B, and 10,000 units of C. Calculate the break-even point of the firm. The firm has some idle capacity at these volumes, and chooses to cut the selling price of A from $60 to $45, believing that its sales volume will rise from 1000 units to 2500 units. What is the revised break-even point?
Q2) What is the fundamental distinction between design capacity and effective capacity?
Provide a brief example.
Q3) A new machine tool is expected to generate receipts as follows: $5,000 in year one; $3,000 in year two, nothing in the next year, and $2,000 in the fourth year. At an interest rate of 6%, what is the present value of these receipts? Is this a better present value than $2,500 each year over four years? Explain.
Q4) __________ is actual output as a percent of effective capacity.
Q5) Identify, in proper sequence, the steps in the process of recognizing and managing constraints.
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Chapter 10: Location Strategies
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Sample Questions
Q1) An example of an intangible cost, as it relates to location decisions, is the quality of education.
A)True
B)False
Q2) FedEx schedules its aircraft using a __________ system, which it credits with reducing package mishandling and delay in transit.
Q3) On the crossover chart where the costs of two or more location alternatives have been plotted, the quantity at which two cost curves cross is the quantity at which
A) fixed costs are equal for two alternative locations
B) variable costs are equal for two alternative locations
C) total costs are equal for all alternative locations
D) fixed costs equal variable costs for one location
E) total costs are equal for two alternative locations
Q4) The location decisions of goods-producing firms will generally pay more attention to parking, access, and traffic counts than will service location decisions.
A)True
B)False
Q5) What is the impact of exchange rates on location decisions?
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Chapter 11: Layout Strategies
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Sample Questions
Q1) A work cell is scheduled to build 120 digital light processor (DLP) assemblies each week. These assemblies are later installed into home theater projection systems. The work cell has 7.5 hours of productive work each day, six days per week. What is takt time for this cell?
Q2) Solving a load-distance problem for a process-oriented layout requires that
A) the difficulty of movement be the same for all possible paths
B) pickup and setdown costs vary from department to department
C) the cost to move a load be the same for all possible paths
D) takt time be less than 1
E) CRAFT software examine all possible department configurations
Q3) The biggest advantage of a product layout is its flexibility to handle a varied product mix.
A)True
B)False
Q4) Why do work cells increase the use of equipment and machinery?
Q5) McDonald's "Made for You" kitchen system represents a __________ use of layout decisions.
Q6) What is cross-docking?
Why is it appropriate for some forms of warehouse layout?
Q7) What are the advantages of focused factories?
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Chapter 12: Human Resources, Job Design, and Work Measurement
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Sample Questions
Q1) A time study of a certain service task found an average time of 15 minutes, with a standard sample large enough that we are 95% confident that standard time is within 5% of its true value?
Q2) What are the advantages and the disadvantages of the employment-stability policy "holding employment constant?
"
Q3) What impact did the Hawthorne studies have on human resource strategy?
Q4) Work sampling estimates the percent of time that a worker spends on various tasks.
A)True
B)False
Q5) When a worker obtains clear and timely information about his/her performance, his/her job is characterized by
A) feedback
B) skill variety
C) job identity
D) job significance
E) autonomy
Q6) The study of work, often called human factors, is called __________.
Page 14
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Chapter 13: Supply-Chain Management
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Sample Questions
Q1) Identify the reasons for making in the make-or-buy decision.
Q2) Channel assembly, which sends components and modules to be assembled by a distributor, treats these distributors as manufacturing partners.
A)True
B)False
Q3) What term is used to describe the outsourcing of logistics?
A) E-Logistics
B) Shipper Managed Inventory (SMI)
C) Hollow Logistics
D) Sub-Logistics
E) Third-Party Logistics
Q4) A furniture maker has delivered a dining set directly to the end consumer rather than to the furniture store. The furniture maker is practicing
A) postponement
B) drop shipping
C) channel assembly
D) passing the buck
E) float reduction
Q5) Why is channel assembly popular in the personal computer industry?
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Chapter 14: Outsourcing as a Supply-Chain Strategy
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Sample Questions
Q1) A firm is considering two countries to outsource its call center. Currently the weighted factor method has given a score of 120 to the first country and 110 to the second country. If the second country wants to improve its score in the labor rating (weight=1.5), how much must it increases its labor rating by to have a score greater than or equal to country 1?
Q2) The decline in customer satisfaction for outsourced call centers highlights which aspect of outsourcing risk?
A) cost
B) quality
C) core competency
D) erratic utility functionality
E) technological
Q3) Some business activities, such as human resources and legal processes, cannot be outsourced.
A)True
B)False
Q4) Describe the difference between outsourcing and offshoring.
Q5) __________ is the number-one reason driving outsourcing for many firms.
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Chapter 15: Inventory Management
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Sample Questions
Q1) Which of the following items is mostly likely managed using a single-period order model?
A) Christmas trees
B) canned food at the grocery store
C) automobiles at a dealership
D) metal for a manufacturing process
E) gas sold to a gas station
Q2) Inventory that separates various parts of the production process performs a __________ function.
Q3) In the simple EOQ model, if the carrying cost were to double, the EOQ would also double.
A)True
B)False
Q4) A firm that makes electronic circuits has been ordering a certain raw material 250 ounces at a time. The firm estimates that carrying cost is 30% per year, and that ordering cost is about $20 per order. The current price of the ingredient is $200 per ounce. The assumptions of the basic EOQ model are thought to apply. For what value of annual demand is their action optimal?
Q5) List the four types of inventory.
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Chapter 16: Aggregate Planning
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Q1) If a service firm were to attempt a pure level strategy for aggregate planning, should its level of output be at average demand, peak demand, or minimum demand?
Q2) The objective of aggregate planning is to meet demand while __________ over the planning period.
A) minimizing cost
B) maximizing service level
C) minimizing stock out D) minimizing fixed cost
E) all of the above
Q3) One of the demand options of aggregate planning is to vary the workforce by hiring or layoffs.
A)True
B)False
Q4) Aggregate planning occurs over the medium or intermediate future of 3 to 18 months.
A)True
B)False
Q5) What is the primary management challenge when implementing yield management?
Page 18
Q6) Identify some firms that provide yield management software.
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Chapter 17: Material Requirements Planning MRP and ERP
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Q1) Wheeled Coach uses __________ as the catalyst for low inventory, high quality, tight schedules, and accurate records.
Q2) Which of the following statements regarding the gross material requirements plan is true?
A) It shows total demand for an item.
B) It shows when an item must be ordered from a supplier or when production must be started.
C) It combines a master production schedule with the time-phased schedule.
D) It requires several inputs, including an accurate bill of material.
E) All of the above are true.
Q3) __________ is a dependent demand technique that uses a bill of material, inventory, expected receipts, and a master production schedule to determine material requirements.
Q4) The supply-chain systems that result from using ERP in the grocery industry are called efficient consumer response (ECR) systems.
A)True
B)False
Q5) Describe how MRP II differs from MRP.
Q6) What are the advantages of enterprise resource planning (ERP)?
Page 19
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Chapter 18: Short-Term Scheduling
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Q1) If job 5 takes 3, 4, or 5 hours to be completed by workers A, B, and C, respectively, what would the row values for job 5 be after performing Step 1A of the assignment method?
A) 3, 4, 5
B) 8, 9, 10
C) 0, 1, 2
D) 6, 7, 8
E) 1, 4/3, 5/3
Q2) Explain, in your own words, what is meant by "level material use." In what types of facilities is it appropriate? Explain.
Q3) Which of the following dispatching rules is typically the best technique for taking first those jobs with the most urgent needs?
A) shortest processing time
B) critical ratio
C) earliest due date
D) longest processing time
E) none of the above
Q4) What is the assignment method?
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Chapter 19: Just-In-Time and Lean Options
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Sample Questions
Q1) __________ involves scheduling products so that each day's production meets the demand for that day.
Q2) Which one of the following is an example of JIT being used for competitive advantage?
A) Jones Company has decreased the number of job classifications to just a few.
B) Lafourche Metals increases the number of its suppliers to be less dependent on just a few.
C) Houma Fabricators is proud to announce that incoming goods are inspected.
D) Acme Company tells its maintenance department to intervene only if a machine breaks down.
E) Caro Specialty Metals, Inc. has built a new, huge warehouse to store inventory.
Q3) A bakery uses 6 containers that each hold 4 cakes. If safety stock is 2 cakes and lead time is 11 days, determine daily demand.
Q4) The main focus of JIT efforts to reduce investment in inventory requires
Q5) Identify some of the signals that kanban systems use.
Q6) __________ gets suppliers to accept responsibility for satisfying end customer needs.
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Chapter 20: Maintenance and Reliability
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Q1) A job consists of a series of three tasks. Task 1 is performed correctly 98% of the time, task 2 is performed correctly 99% of the time, and task 3 is performed correctly 97% of the time. The reliability of this job is
A) 91.27%
B) 94.11%
C) 97.00%
D) 98.00%
E) 99.00%
Q2) Suppose that a three stage process in a nuclear reactor had reliability ratings of .98 at each station and that only one stage needed to be successful for the process to work. If the plant wants to establish 6-sigma standards, what % reliable redundant controls need to be added to each station.
Q3) Is there an optimal amount of preventive maintenance? What caution should be exercised before calculating this optimal amount?
Q4) What is the impact on system reliability of adding parts or components in parallel?
Q5) A system consists of four components in series. The reliability of each component is 0.96. What is the reliability of the system?
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Chapter 21: Decision-Making Tools
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Q1) A poker player is considering three different options after his opponent bet 200 before him. If the player folds, he will lose instantly. If the player calls, he figures he will win half the time. If he raises he figures that the opposing player will not re-raise him, but rather will either call or fold. He figures the opposing player will call only ¼ of the time, folding the other ¾ of the time. If the opposing player calls his raise, he figures he will never win. The pot size is 1,000 (including the opposing player's bet).
a. Draw a decision tree for this scenario including the information provided in part b.
b. Suppose that the player is thinking of raising to $400 (he will put in 200 to match the opponent's bet and another 200 as a raise, his opponent would then have to put in 200 more to call the raise). Is this the best option or should he instead call or fold?
c. At what raise size is the player's EMV of a raise equivalent to simply calling?
Q2) __________ is the difference between the payoff under perfect information and the payoff under risk.
Q3) What limitation(s) do decision trees overcome compared to decision tables?
Q4) The square symbol used in drawing a decision trees represents a __________ node.
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Chapter 22: Linear Programming
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Q1) In linear programming, a statement such as "maximize contribution" becomes an objective function when the problem is formulated.
A)True
B)False
Q2) Which of the following sets of constraints results in an unbounded maximizing problem?
A) X + Y > 100 and X + Y < 50
B) X + Y > 15 and X - Y < 10
C) X + Y < 10 and X > 5
D) X < 10 and Y < 20
E) All of the above have a bounded maximum.
Q3) Suppose that a constraint is given by X+Y 10. If another constraint is given to be 3X+2Y 15 determine the corners of the feasible solution. If the profit from X is 5 and the profit from Y is 10, determine the maximum profit.
Q4) The graphical method of solving linear programming can handle only maximizing problems.
A)True
B)False
Q5) What are the requirements of all linear programming problems?
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Chapter 23: Transportation Models
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Q1) A transportation problem has a feasible solution when
A) all of the improvement indices are greater than or equal to zero
B) all demand and supply constraints are satisfied
C) the number of filled cells is one less than the number of rows plus the number of columns
D) all the squares are used
E) the solution yields the lowest possible cost
Q2) Find the minimum cost solution for the transportation problem detailed in the table below. Explain carefully the meaning of any quantity in a "dummy" row or column.
\[\begin{array} { | l | r | r | r | r | }
\hline \text { COSTS } & \text { Dest 1 } & \text { Dest 2 } & \text { Dest 3 } & \text { Supply } \\
\hline \text { Source 1 } & 30 & 12 & 5 & 20 \\
\hline\text { Source 2 } & 10 & 14 & 12 & 30 \\
\hline \text { Source 3 } & 20 & 11 & 25 & 75 \\
\hline\text { Dummy } & 0 & 0 & 0 & 30 \\
\hline \text { Demand } & 40 & 60 & 55 & 155 \backslash 155 \\
\hline
\end{array}\]
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Chapter 24: Waiting-Line Models
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Q1) There is only one bay and one type of service at an automatic car wash. Provide the most likely characteristics of this system.
a. name of model
b. number of channels
c. number of phases
d. arrival rate distribution
e. service time distribution
f. population size
g. queue discipline
Q2) Which of the following is a measure of queue performance?
A) utilization factor
B) average queue length
C) probability of a specific number of customers in the system
D) average waiting time in the line
E) all of the above
Q3) A manufacturing plant is trying to determine how long the average line for a repair process will be. If 10 machines arrive each hour and must wait 6 minutes in the line, how long will the line be, on average?
Q4) Describe the difference between FIFO and LIFO queue disciplines.
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Chapter 25: Learning Curves
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Q1) The second unit of production took 9 hours. If the learning curve is 90% how long did the first unit take?
A) 9 hours
B) 10 hours
C) 8.1 hours
D) 8.5 hours
E) none of the above
Q2) It took 18 hours to complete the first two products with an 80% learning curve. How long did the second product take?
A) 8 hours
B) 10 hours
C) 18 hours
D) 8.1 hours
E) none of the above
Q3) When learning curves are plotted on __________ scales, the "curves" become straight lines.
Q4) The fourth unit of production took 80 minutes while the ninth unit of production took 50 minutes. How long did the first unit take?
Q5) The __________ is the simplest approach to learning curve problems.
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Chapter 26: Simulation
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Q1) One of the disadvantages of simulation is that it A) does not allow for very complex problem solutions B) is not very flexible C) may be very expensive and time-consuming to develop D) is very limited in the type of probability distribution that can be used E) interferes with the production systems while the program is being run
Q2) A distribution of service times at a waiting line indicates that service takes 12 minutes 30 percent of the time and 14 minutes 70 percent of the time. Prepare the probability distribution, the cumulative probability distribution, and the random number intervals for this problem. The first six random numbers were 99, 29, 27, 75, 89, and 78. What is the average service time for this simulation run?
Q3) A simulation is "Monte Carlo" when the elements of a system being simulated exhibit chance in their behavior.
A)True
B)False
Q4) Simulation provides optimal solutions to problems.
A)True
B)False
Q5) Define simulation.
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