Production and Operations Management Exam Practice Tests
Course Introduction
Production and Operations Management focuses on the efficient and effective processes involved in the creation of goods and services. The course covers key concepts such as production planning, inventory control, quality management, supply chain strategies, and the use of quantitative methods to optimize operations. Students will learn how to analyze and improve production workflows, allocate resources, manage capacity, and implement continuous improvement techniques. Emphasis is placed on real-world applications and case studies, providing a comprehensive understanding of how operational decisions impact organizational performance and competitiveness in a global marketplace.
Recommended Textbook
Decision Sciences and Operations Management Coursemate 4th Edition by David
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Page 2
A. Collier
Chapter 1: Goods, Services, and Operations Management
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Sample Questions
Q1) Time-based competition means providing new and innovative products that surprise and delight customers.
A)True
B)False
Answer: False
Q2) Peripheral goods and services are not essential to a primary good or service.
A)True
B)False
Answer: True
Q3) Though there are similarities between goods and service, there are significant differences; discuss five.
Answer: *Goods are tangible while services are intangible.
*Customers participate in many service processes, activities and transactions.
*The demand for services is more difficult to predict than the demand for goods
*Services cannot be stored as physical inventory.
*Service management skills are paramount to a successful service encounter.
*Service facilities typically need to be in close proximity to the customer.
*Patents do not protect services.
Q4) What are the four key current challenges in OM that managers need to understand?
Answer: 11ea89ff_22e5_c2ff_8b44_5b96df0726be_TB2054_00
Page 3
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Chapter 2: Value Chains
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Sample Questions
Q1) A vertical integration strategy provides a firm more control and generally reduces the complexity of managing the value chain.
A)True
B)False
Answer: False
Q2) The focus of pre-production services is on gaining a customer while that of post-production services is on keeping the customer.
A)True
B)False
Answer: True
Q3) General Electrics would be considered a multinational enterprise because it sources, markets, and produces its goods in several countries.
A)True
B)False
Answer: True
Q4) A supply chain is more inclusive than a value chain.
A)True
B)False Answer: False
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Chapter 3: Measuring Performance in Operations
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Sample Questions
Q1) The service-profit chain model is based on understanding cause-and-effect linkages among performance measures.
A)True
B)False
Answer: True
Q2) The value chain model is probably the dominant model for operations managers.
A)True
B)False
Answer: True
Q3) Assurance is the willingness to help customers and provide prompt recovery to service upsets.
A)True
B)False Answer: False
Q4) Employee satisfaction might be considered as a lagging indicator of employee turnover.
A)True
B)False Answer: False
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Chapter 4: Operations Strategy
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Sample Questions
Q1) Using the Four Key Decision Loops in Professor Terry Hill's Generic Strategy Framework, which statement is true?
A)The four loops are highly integrated and require improvement cycles.
B)The first loop ties strategy to operations.
C)Operations has no input loop into corporate strategy or marketing strategy.
D)Infrastructure decisions must come before marketing strategy decisions.
Q2) What do we mean by core competencies?
Q3) Improving design quality usually allows a firm to charge higher prices and thus increase revenue and profit.
A)True
B)False
Q4) In an automobile, which of the following would not be considered an order winner?
A)Self-parking capability
B)Voice-activated music system
C)Front-seat airbags
D)Collision-avoidance system
Q5) What are competitive priorities? Provide some examples of how OM influences the five major types of competitive priorities.
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Chapter 5: Technology and Operations Management
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Sample Questions
Q1) Computer-Aided Manufacturing CAM) has advantages over conventional manufacturing approaches under many conditions. Which of the following is not such a condition?
A)when homogeneous parts are manufactured
B)when frequent design changes are made
C)when the manufacturing process is complex
D)when expert operator skills and close control are required
Q2) Return facilitators specialize to getting reusable packaging/shipping material containers, crates, and pallets) back to manufacturers.
A)True
B)False
Q3) Infinite scalability is most related to
A)high variable cost
B)high fixed cost
C)high scalability
D)low scalability
Q4) A sociotechnical system integrates technology, people, and processes.
A)True
B)False
Q5) Explain the concept of ERP -Enterprise Resource Planning Systems.
Page 7
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Chapter 6: Goods and Service Design
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Sample Questions
Q1) In a design specification 25 \(\pm\) 1.5, the value 25 is called the ____, while \(\pm\) 1.5 is called the ____.
A)nominal, reliability
B)average, tolerance
C)average, nominal
D)nominal, tolerance
Q2) The design of a customer benefit package CBP) focuses on the operational choices that the firm must make in order to provide the CBP.
A)True
B)False
Q3) Which of the following is not a principal element in service encounter design?
A)Technology and information support systems
B)Customer contact behavior and skills
C)Service provider selection, development and empowerment
D)Service recovery and guarantees
Q4) Explain the concept of Design Failure-Mode-and-Effect analysis.
Q5) Describe the Taguchi loss function. Contrast it to the "goal post" model.
Q6) List the five elements of a service delivery system.
Q7) Explain the concept of Design for Manufacturability DFM).
Page 8
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Chapter 7: Process Selection, Design, and Analysis
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Sample Questions
Q1) An) ____ is a group of ____ needed to create and deliver an intermediate or final output.
A)Process; value chains
B)Activity; tasks
C)Task; activities
D)Activity; processes
Q2) What type of process would a paper mill most likely use?
A)Project
B)Job shop
C)Flow shop process
D)Continuous flow process
Q3) Configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set are called "make to order" goods and services.
A)True
B)False
Q4) An automobile emissions testing center has six (6) inspectors and tests 50 autos per hour. Each inspector can inspect twelve (12) autos per hour. What is the center's utilization?
Q5) Explain why the product-process matrix does not transfer well to services.
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Chapter 8: Facility and Work Design
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Sample Questions
Q1) A fixed position layout is based on the sequence of operations that is performed during the manufacturing of a good or delivery of a service.
A)True
B)False
Q2) Discuss four reasons for conducting a facility-layout study.
Q3) Differentiate among product layout, process layout, cellular layout, and fixed-position layout. State the advantages and disadvantages of each.
Q4) Changes in goods and services for a firm's customer benefit package do not impact facility layouts.
A)True
B)False
Q5) Explain assembly line balancing. Discuss the three types of information needed to balance an assembly line.
Q6) Differentiate between a "flow blocking delay" and a "lack of work delay." How can each be reduced?
Q7) Describe approaches used for process layout design.
Q8) List the many questions that must be addressed in designing a workstation.
Page 10
Q9) Explain the role of ergonomics in job design.
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Chapter 9: Supply Chain Design
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Sample Questions
Q1) The basic purpose of a supply chain is to coordinate communication among employees and customers in order to maximize customer satisfaction.
A)True
B)False
Q2) The weights typically used in the center-of-gravity method are
A)Transportation costs
B)Distances
C)Volumes of goods
D)Times
Q3) Explain the difference between a supply chain and a value chain.
Q4) What are the key functions of a supply chain?
Q5) Managing the flow of goods and materials from the customer backward through the supply chain is called
A)Reverse Logistics
B)The Pull System
C)The Push System
D)Response Management
Q6) Explain the importance of the bullwhip effect. What can managers do to reduce it?
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Chapter 10: Capacity Management
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Sample Questions
Q1) All the following are means to adjust short-term capacity except
A)Add peripheral goods and/or services
B)Add or share equipment
C)Sell unused capacity
D)Change labor skill mix
Q2) An unsold broadcast advertising space is an example of a perishable asset.
A)True
B)False
Q3) Complementary goods and services are those that require different resources than the organization's other goods and services.
A)True
B)False
Q4) The capacity expansion approach that provides the most safety capacity is
A)One large capacity increase
B)Small capacity increases that match demand
C)Small capacity increases that lead demand
D)Small capacity increases that lag demand
Q5) An order fulfillment process normally operates two shifts a day, five days per week. Under normal conditions, 380 orders can be processed per shift. What is the daily capacity?
12
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Chapter 11: Forecasting and Demand Planning
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Sample Questions
Q1) Explain the difference between statistical forecasting and judgment forecasting.
Q2) A 7-month simple moving average would approximately equate with what alpha (\(\alpha\)) factor for simple exponential smoothing?
Q3) Statistical forecasting is based upon the assumption that the future will be an extrapolation of the past.
A)True
B)False
Q4) Regression models are often used in forecasting to incorporate causal variables that may influence a time series.
A)True
B)False
Q5) A moving average model works best when ____ in the time series.
A)Only irregular variation is present
B)Only a trend is present
C)There is no trend, seasonal, or cyclical pattern
D)Trend, seasonal, and cyclical patterns all exist
Q6) In practice, managers rely almost exclusively on statistical forecasts.
A)True
B)False
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Chapter 12: Managing Inventories
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Sample Questions
Q1) Demand that varies over time is called ____.
A)Static
B)Dynamic
C)Stochastic
D)Deterministic
Q2) Which one of the following statements concerning the economic order quantity (EOQ) model is not true when the unit holding cost increases?
A)the economic order quantity will decrease
B)the number of orders per year will decrease
C)total ordering cost will increase
D)average inventory will decrease
Q3) Backorders ____.
A)Result from lost sales
B)Have little financial impact
C)May occur as a result of a stockout
D)Force a customer to purchase elsewhere
Q4) Explain the difference between a fixed quantity system and a fixed period system.
Q5) Discuss the concept of safety stock in a fixed order quantity system with uncertain demand.
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Chapter 13: Resource Management
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Sample Questions
Q1) Explain the three lot-sizing methods, and under what circumstances each work best:
a.Lot-for-Lot (LFL)
b.Fixed Order Quantity (FOQ)
c.Periodic Order Quantity (POQ)
Q2) Which lot sizing rule might use the EOQ calculation?
A)Lot for Lot (LFL)
B)Fixed order quantity (FOQ)
C)Periodic order quantity (POQ)
D)FOQ and POQ
Q3) A company currently has no items in inventory. The demand for the next four months is 200, 400, 250 and 350 units. Assuming a level production rate of 250 units per month, determine the month in which a backorder will materialize.
Q4) The direct inputs to material requirements planning include all of the following except
A)Master Production Schedule
B)Inventory, SKU, and Transaction files
C)Bills of Material
D)Capacity Requirements Plan
Q5) What is capacity requirements planning (CRP)?
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Chapter 14: Operations Scheduling and Sequencing
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Sample Questions
Q1) High flow times reduce WIP inventory.
A)True
B)False
Q2) Like the SPT rule, the earliest due date EDD) rule minimizes the average flow time.
A)True
B)False
Q3) Short-term capacity fluctuations necessitate changes in schedules. List at least five factors affecting short-term capacity.
Q4) Since all jobs eventually get done, job sequencing has no effect on resource utilization.
A)True
B)False
Q5) Telling an umpire crew to work baseball games in Chicago, then Milwaukee, and then Cleveland is an example of a sequence.
A)True
B)False
Q6) Explain the three categories of criteria used to evaluate job sequencing performance. For each category, provide two example measures.
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Chapter 15: Quality Management
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Sample Questions
Q1) Costs of recalls and warranty claims are classified as internal failure costs.
A)True
B)False
Q2) Describe the rationale underlying ISO 9000:2000.
Q3) Define root cause and describe root cause analysis.
Q4) In the act stage of the Deming cycle, improvements become standardized and the plan is implemented as a "current best practice" and communicated throughout the organization.
A)True
B)False
Q5) Each day, a golf resort handles 700 golfers. Each guest encounters 22 "moments of truth" during a typical day. The resort is open seven days a week. If they receive 12 complaints per week, what is the epmo measure?
Q6) The Deming philosophy focuses on bringing about improvements in product and service quality by reducing uncertainty and variability in goods and services design and associated processes.
A)True
B)False
Q7) List the three principles of total quality and why they are important.
Page 17
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Chapter 16: Quality Control and Spc
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Sample Questions
Q1) The center line p-bar) for a p-chart is 0.50 with an UCL = 0.70 and a LCL = 0.35. The results of the next eight sample means are 0.45, 0.60, 0.39, 0.44, 0.48, 0.53, 0.54, and 0.61.
What would you do?
A)Nothing; the process is in control.
B)increase the sample size to get a better measure.
C)investigate assignable causes because four observations are above the center line.
D)investigate assignable causes because there is a bad trend run).
Q2) Quality at the source means that quality is controlled by
A)People responsible for the work
B)Quality control managers
C)Front line supervisors
D)Top management
Q3) With good management, all variability of output from any goods- or service-producing process can be eliminated.
A)True
B)False
Q4) Define and give an example of the three components of any control system.
Q5) Explain and give the significance of the 1:10:100 Rule.
Q6) In general, discuss how to interpret control charts.
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Chapter 17: Lean Operating Systems
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Q1) Discuss the differences between lean production and Six Sigma.
Q2) Define lean enterprise and the four principles of lean operating systems.
Q3) Which of the following is not one of the 5Ss?
A)Synchronize
B)Standardize
C)Shine
D)Sustain
Q4) A manufacturing company is using a two-container Kanban system between a downstream using) and an upstream producing) work center. Each container holds 25 parts. The using work center can handle 100 parts per day. The average elapsed time for the entire cycle is currently .40 days. The company is concerned about the efficiency of the operation.
a. What is the safety factor for the current operation?
b. What is the maximum authorized inventory for this part?
c. If the number of containers is reduced to one, how many parts must it hold?
d. If the efficiency is changed to .10 and the number of parts per container is increased to 44, how many containers will be needed?
Q5) Explain the concept of Single Minute Exchange of Die (SMED).
Q6) Contrast batching with single-piece flow.
Q7) Discuss the seven major categories of waste as defined by Toyota.
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Chapter 18: Project Management
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Q1) The county government has decided to redo the street you live on and plans to block the street off which causes you and your neighbor's considerable inconvenience. The project has three parallel paths defined as follows:( i) path A-B-C-H to install street lights and electrical wiring that takes 16 days, (ii) path A-D-E-H to install sidewalks with handicap capabilities that takes 22 days, and (iii) path A-F-G-H to repave the street including storm drains that takes 30 days. Which one of the following statements is true?
A)The expected duration of the project is 30 + 22 + 16 = 68 days.
B)Path A-B-C-H is the critical path.
C)Path A-D-E-H has the most slack time.
D)Path A-F-G-H is the critical path.
Q2) Because the preparation of annual reports is done on a repeating basis, project management techniques are not appropriate.
A)True
B)False
Q3) Explain the purpose of Gantt charts.
Q4) Describe the four major steps in the project-planning process.
Q5) Define critical path and explain how it is identified once a project schedule is calculated
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Chapter 19: Work Measurement, Learning Curves, and Standards
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Sample Questions
Q1) Consider the following time study data. \(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\text { Observation Cycles Actual Time in Minutes) }\)
\(\begin{array}{|c|c|c|c|c|c|c|c|}
\hline \begin{array}{c}
\text { Work } \\
\text { Task }
\end{array} & 1 & 2 & 3 & 4 & 5 & 6 & 7 \\
\hline \text { A } & 0.12 & 0.17 & 0.19 & 0.11 & 0.15 & 0.16 & 0.20 \\
\hline \text { B } & 0.91 & 0.95 & 0.97 & 0.88 & 0.86 & 0.80 & 0.94 \\
\hline \text { C } & 1.52 & 1.48 & 1.40 & 1.60 & 1.65 & 1.52 & 1.47\\
\hline \end{array}\)
a. If the performance rating factor for A = 1.15, B = 1.0 and C = 0.85, determine the normal time for the job.
b. If personal allowance is 7%, fatigue allowance is 12%, personal delay allowance is 9% and avoidable delay is 4 minutes, determine the standard time for the job.
Q2) Discuss the two different sides of the debate over work standards.
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Chapter 20: Queuing Analysis
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Sample Questions
Q1) A local hamburger chain is considering adding a drive-through window. They estimate that during the dinner hour, customer arrival rate will average 18 per hour and follow a Poisson distribution. Service times during this same period are estimated to follow an exponential distribution with a mean of 24 customers per hour.
a. Determine the probability that the service facility drive-through window) is idle.
b. Determine the probability of four vehicles in the system.
c. Determine the average number of vehicles waiting for service.
d. Determine the average number of vehicles in the system.
e. Determine the average time a vehicle spends waiting for service.
f. Determine the average time a vehicle spends in the system.
g. Determine the probability that an arriving vehicle has to wait for service.
Q2) Rules that determine the order in which arrivals are sequenced through the service system are called
A) queuing behavior
B) operating characteristics
C) queue discipline
D) psychology of waiting
Q3) Contrast wait cost with server cost. Which is harder to estimate?
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Chapter 21: Modeling Using Linear Programming
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Q1) The normal-time project cost does not depend on what crashing decisions are made. As a result, total crash costs can be minimized for a linear programming objective.
A)True
B)False
Q2) If R<sub>m</sub> = increase in the total production level during Month 'm' compared to Month m-1 and D<sub>m</sub> = decrease in the total production level during Month 'm' compared to Month m-1, which of the following statements can be correct?
A)R<sub>m</sub> = D<sub>m</sub> = 0
B)Both R<sub>m</sub> and D<sub>m</sub> positive
C)Both R<sub>m</sub> and D<sub>m </sub>negative
D)One variable can be positive and the other negative
Q3) A company has normal capacity for 2,500 units a month. If, for a given month, X = demand, which of the following correctly allows for either overtime or under-time in a given month?
A)X<sub>t</sub> + O<sub>t</sub> F1F1F1S1 F1F1F10 U<sub>t</sub> = 2,500
B)X<sub>t</sub> F1F1F1S1 F1F1F10 O<sub>t</sub> + U<sub>t</sub> = 2,500
C)X<sub>t</sub> F1F1F1S1 F1F1F10 O<sub>t</sub> + U<sub>t</sub> < 2,500
D)X<sub>t</sub> + O<sub>t</sub> F1F1F1S1 F1F1F10 U<sub>t</sub> > 2,500
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Chapter 22: Simulation
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Sample Questions
Q1) Face validity involves asking people familiar with the real system to evaluate the assumptions and logic of a model.
A)True
B)False
Q2) A disadvantage of simulation models is that the structuring is highly dependent on the expertise of the modeler.
A)True
B)False
Q3) Using two-digit random numbers, the interval 55 - 79 represents what probability?
A)0.55 to 0.79
B)0.25
C)0.24
D)0.67
Q4) All of the following are disadvantages of simulation except
A)Limited application
B)Difficulty of collecting the appropriate input data
C)Selecting the correct probability distribution
D)The accuracy of outputs
Q5) Define simulation and give some operations management examples.
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Chapter 23: Work Measurement, Learning Curves, and Standards
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Q1) For decisions repeated over-and-over again, managers can choose those based upon the expected payoff that might occur.
A)True
B)False
Q2) Which of the following is not a similarity between a decision matrix and a decision tree?
A)Time
B)States of nature
C)Alternatives
D)Probabilities
Q3) The minimax regret approach is neither aggressive nor conservative.
A)True
B)False
Q4) The expected value of a decision alternative cannot be negative.
A)True
B)False
Q5) Decision analysis situations often have multiple objectives.
A)True
B)False
Page 25
Q6) Differentiate between uncertainty and risk.
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