Production and Operations Management
Final Test Solutions
Course Introduction
Production and Operations Management examines the processes involved in the creation of goods and services, with a focus on efficient resource utilization, quality management, and process optimization. The course covers key topics such as production planning, inventory control, supply chain management, facility layout, scheduling, and just-in-time systems. Students learn analytical tools and strategies to improve productivity, reduce costs, and enhance organizational competitiveness. Emphasizing real-world applications, the course prepares students to make informed decisions in designing, operating, and improving production and service operations across various industries.
Recommended Textbook operations management 5th edition by r. dan reid
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Page 2
Chapter 1: Introduction to Operations
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Sample Questions
Q1) Increasing the level of responsibility of a job by adding planning and coordination tasks is called job enrichment.
A)True
B)False
Answer: True
Q2) Today's business must think in terms of:
A)regional trade zones
B)the EPA
C)the U.S.Defense Department
D)the global market place
E)the curved world
Answer: D
Q3) Tactical decisions can be distinguished from strategic decisions by what set of characteristics?
Answer: Focus on specific day-to-day issues,tactical decisions are made after strategic decisions,tactical decisions must be aligned with strategic decisions,tactical decisions provide feedback to strategic decision.
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Chapter 2: Operations Strategy and Competitiveness
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Sample Questions
Q1) Technology should be acquired because:
A)the new technology is fun
B)the new technology keeps the employees happy
C)the new technology doesn't cost very much
D)the new technology always improves productivity
E)the new technology supports the company's chosen competitive priorities
Answer: E
Q2) A firm produces handbags using three workers.On Tuesday,Jane completed 60 bags in 6 hours,Ron completed 50 bags in 7 hours,and Mary completed 80 bags in 5 hours.What was the overall productivity of the firm?
A)7.92 bags/hour
B)11.05 bags/hour
C)10.00 bags/hour
D)10.56 bags/hour
E)61.67 bags/hour
Answer: D
Q3) Firms measure productivity to learn how ________________________ they are.
Answer: competitive
Page 4
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Chapter 3: Product Design and Process Selection
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Sample Questions
Q1) Which one of these refers to reducing the number of parts and features of the product whenever possible?
A)design automation
B)design specification
C)design reduction
D)design standardization
E)design simplification
Answer: E
Q2) Which of the following is not a step in product design?
A)final design
B)preliminary design and testing
C)idea development
D)conceptual design
E)product screening
Answer: D
Q3) Name some sources for ideas for new products.
Answer: customers,competitors,R&D departments,suppliers,employees,and new technological developments
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Chapter 4: E-Commerce and Supply Chain Management
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Sample Questions
Q1) Order batching replaces lumpy demand with constant product demand.
A)True
B)False
Q2) What does TL stand for?
A)Transportation lead time
B)Transportation logistics
C)Trucking line
D)Trucking life
E)Truckload (quantity)
Q3) What do studies suggest are the three sources of impact?
A)Reduce waste,leverage core competence,and create new opportunities
B)Provide quantity discounts,reduce waste,and create new opportunities
C)Create detailed contracts,reduce waste,and create new opportunities
D)Create detailed contracts,leverage core competence,and reduce waste
E)Create detailed contracts,leverage core competence,and create new opportunities
Q4) One of the Institute for Supply Management's principles of ethical supply chain management conduct is "loyalty to your organization."
A)True
B)False
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Chapter 5: Total Quality Management
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Sample Questions
Q1) __________ analysis is a technique used to identify quality problems based on their degree of importance.
A)Deming
B)Pareto
C)Davis
D)Crosby
E)Juran
Q2) The purpose of the International Organization for Standardization is to
A)Certify all suppliers worldwide
B)Establish international quality standards
C)Spread European standards worldwide
D)Certify products
E)Streamline documentation
Q3) Increases in international trade during the 1980s created a need for the development of ____________ standards of quality.
A)universal
B)country-specific
C)lower
D)metric
E)bilingual
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Chapter 6: Statistical Quality Control
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Sample Questions
Q1) What measures the central tendency of a set of data?
A)Coefficient of variation
B)Variance
C)Standard deviation
D)Mean
E)Range
Q2) The standard deviation is an example of what?
A)Traditional statistical tools
B)Fishbone diagramming
C)Acceptance sampling
D)Experimental design
E)Statistical process control
Q3) What technique answers the question of whether the process is functioning properly or not?
A)Fishbone diagramming
B)Acceptance sampling
C)Statistical process control
D)Scatter plotting
E)Experimental design
Q4) Define control limits.
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Chapter 7: Just-In-Time and Lean Systems
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Sample Questions
Q1) Uniform plant loading involves
A)Large lots produced over several days
B)Making the same mix of products every day in small quantities
C)Large amounts of inventory
D)Making large changes in production to respond to changes in demand
E)Spreading production uniformly over several plants
Q2) Consider a workstation that can process 4000 units per hour.It takes 15 minutes to receive an order from the previous station.The container size is 20 units.The factory sets safety stock at 20 percent of demand during lead time.How many kanbans are needed for the workstation?
A)16
B)3600
C)50
D)10
E)60
Q3) Often the best quality problem resolution solution involves a complex answer as the organization is a complex organization.
A)True
B)False
Q4) Name three ways that quality at the source includes more than manufacturing.
Page 9
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Chapter 8: Forecasting
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Sample Questions
Q1) Hoops,Inc.has the following actual demand and forecasted demand data.
Month Actual Demand Forecast
Jan.1000 800
Feb.200 880
Mar.2000 600
Apr.3000 1100
Calculate the mean squared error of those forecasts.
Q2) Which of the following forecasting methods would be most accurate if demand were rapidly decreasing?
A)3-month moving average
B)6-month moving average
C)12-month moving average
D)Simple mean
E)Exponential smoothing with \(\alpha\)= 0.001
Q3) A cycle is any data pattern that regularly repeats itself and is constant in length.
A)True
B)False
Q4) Discuss why the degree of accuracy is important in selecting the right forecasting model.
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Chapter 9: Capacity Planning and Facility Location
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Sample Questions
Q1) A firm that wishes to use break-even analysis to evaluate potential locations must know _______________ for each site.
Q2) _____________________ can perform a number of tasks to help a company focus on its core capabilities.
A)A plant within a plant
B)Agile manufacturing
C)Total Quality Management
D)Just-In-Time
E)Subcontractor networks
Q3) Input measures of capacity work better when a company produces
A)discrete items
B)a single product
C)liquids
D)many different products
E)off-the-shelf items
Q4) Factor rating can be used to evaluate multiple _____ based on a number of
Q5) Subcontractor networks reduce reliance on acceptance sampling by
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Chapter 10: Facility Layout
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Sample Questions
Q1) What are the two broad categories of operating systems?
Q2) Maxine's cookie factory bottleneck is the oven.It takes 45 seconds to cook a batch of 144 cookies.What is the maximum number of cookies that Maxine can produce every hour?
Q3) A process layout is seen in companies with continuous processing systems.
A)True
B)False
Q4) What are the four basic layout types?
Q5) Explain the difference between paced and un-paced lines.
Q6) What is the formula efficiency?
Q7) How many different layout solutions are possible with 7 departments? A)7!
B)6!
C)7! - 1
D)(1!)(2!)(3!)(4!)(5!)(6!)(7!)
E)8!
Q8) What is the formula for the theoretical minimum number of work stations?
Page 12
Q9) Suppose that assembly of a product involves four different tasks taking 40 seconds,20 seconds,30 seconds,and 80 seconds,respectively.What is the theoretical minimum number of stations?
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Chapter 11: Work System Design
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Sample Questions
Q1) _____________ is the world's largest privately held software manufacturer.
A)Microsoft
B)Corel
C)GAMS
D)SAS
E)IBM
Q2) Which of the following is not a step in work sampling?
A)Estimate the proportion of time spent on the given activity.
B)Estimate the sample size based on the desired level of accuracy and confidence.
C)Define the activities to be observed.
D)Identify the worker or machine to be sampled.
E)Divide the job into basic elements.
Q3) Establishing a performance factor is an attempt to:
A)fudge the actual times.
B)punish the worker who does not perform fast enough.
C)counterbalance any unusual patterns noted.
D)allow management to 'encourage' greater productivity.
E)use the ISO 9000 approval process.
Q4) What does OSHA stand for and when was it enacted?
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Chapter 12: Independent Demand Inventory Management
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Sample Questions
Q1) In the basic EOQ model,the maximum inventory level equals the economic order quantity.
A)True
B)False
Q2) Consider a firm with an annual demand of 6000 units,a setup cost of $20 per order,and an annual holding cost per unit of $2.If the company purchases 1200 units every time that they order,what are the total annual setup and holding costs?
Q3) How can both the JIT and EOQ inventory theories effectively be reconciled?
A)They can't.A firm must choose either one or the other.
B)by using MRP
C)by considering the setup cost as a variable instead of a parameter
D)by applying Kanban cards to the EOQ system
E)by assuming a finite production rate
Q4) List some advantages of small order quantities.
Q5) What is the maximum inventory of a product that is produce in batches of 1000 when 500 units are produced per day and 250 units are sold per day?
Q6) Discuss some of the factors on how much safety stock will be kept on hand.
Q7) What inventory function protects against supply shortages?
Q8) What is the formula for inventory turnover?
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Chapter 13: Aggregate Planning
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Sample Questions
Q1) An advantage of the chase aggregate plan is that it minimizes finished good holding costs.
A)True
B)False
Q2) Which of the following is not an input to the aggregate planning process?
A)beginning workforce
B)demand forecast
C)beginning inventory
D)master production schedule
E)overtime available per period
Q3) A demand-based option in which the operations department uses inventories and back orders to react to demand fluctuations is called
A)hyperactive
B)inactive
C)proactive
D)reactive
E)retroactive
Q4) In the level production plan you do not add ______,_____ or ______ to meet peak demand.
Q5) Explain the Reactive vs.Proactive Demand-based options.
Page 16
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Chapter 14: Resource Planning
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Sample Questions
Q1) Which of the following is not true concerning indented bills of materials?
A)Subsequent levels are indented further to the right.
B)Children are indented toward the right.
C)The highest level parents are closest to the left margin.
D)Quantity required is shown for each part number.
E)Lead times determine how far children are indented.
Q2) Scheduled receipts are _________________________________________.
A)planned orders
B)planned orders offset by lead time
C)gross requirements offset by lead time
D)gross requirements minus inventory
E)replenishment orders that have been placed but not yet received
Q3) Which ERP module handles billing?
A)finance and accounting
B)information systems
C)sales and marketing
D)production and materials management
E)human resources
Q4) Describe how workload is computed for a work center for capacity requirements planning.
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Chapter 15: Scheduling
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Sample Questions
Q1) Negative lateness means the job is finished before the due date.
A)True
B)False
Q2) Which of the following is a measure of whether the job is done ahead of,on,or behind schedule?
A)average number of jobs in system
B)mean flow time
C)makespan
D)job tardiness
E)job lateness
Q3) Makespan is a measure of WIP.
A)True
B)False
Q4) The process batch should be variable.
A)True
B)False
Q5) If customer service is important to the company,average job lateness is probably a more relevant measurement than average job tardiness.
A)True
B)False
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Chapter 16: Project Management
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Sample Questions
Q1) In network diagramming,arrows represent precedence relationships.
A)True
B)False
Q2) The two kinds of network diagrams are activity-on-arrow and activity-on-node.
A)True
B)False
Q3) An activity in a network diagram has an optimistic time estimate of five days,a most likely time estimate of seven days,and a pessimistic time estimate of 15 days.Its expected time is _________________.
A)5 days
B)7 days
C)8 days
D)10 days
E)15 days
Q4) In making a forward pass through a network,three activities are immediate predecessors for activity T.The early start time for activity T is the largest EF for the three activities that are immediate predecessors for activity T.
A)True
B)False
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Chapter 17: Spreadsheet Modeling: an Introduction
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Q1) What are the three types of charts available in Excel to illustrate model results?
Q2) In the Excel MATCH function,which "Match_type" forces the MATCH function to look for an exact match of Lookup_value in Lookup_array?
A)10
B)0
C)-1
D)1
E)E
Q3) Which of the following models involves objects that represent other objects?
A)physical model
B)mathematical model
C)mental model
D)spreadsheet model
E)visual model
Q4) Excel's COUNT function returns the ______ of cells containing numerical values.
Q5) Excel's INDEX function requires the user to use all three arguments for a valid response.
A)True
B)False
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Chapter 18: Introduction to Optimization
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Sample Questions
Q1) What in Excel Solver corresponds to the objective function in the algebraic model?
A)Optimization Cell
B)Target Cell
C)Changing Cell
D)Constraint Cell
E)Parameter Cell
Q2) What are the three reports available when Solver has successfully found an optimal solution?
Q3) What are the four steps to setting up an optimization problem with Excel Solver?
Q4) Describe guidelines for spreadsheet model development.
Q5) Once you've written the algebraic formulation of the problem,the next setup involved in Solving Optimization Problems is:
A)develop test cases
B)examine the results and make corrections
C)analyze and interpret the results
D)set up the Solver settings
E)write the problem formulation
Q6) Discuss how the Solver Sensitivity Report is fundamentally different than the other reports.
21
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Chapter 19: Waiting Line Models
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Sample Questions
Q1) Consider a single-line,single-server waiting line system.Suppose that customers arrive according to a Poisson distribution at an average rate of 50 per hour,and the average (exponentially distributed)service time is 45 seconds per customer.What is the average time spent in the system (in minutes)?
Q2) 4! = _________?
A)0
B)1
C)undefined
D)4
E)24
Q3) What are the two elements that define a waiting line system?
Q4) In waiting line terminology,what is another name for server?
A)clerk
B)channel
C)host
D)concierge
E)provider
Q5) List some system changes one can make to try to improve waiting line performance.
Q6) List examples of dedicating specific servers for specific transactions.
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Chapter 20: Master Scheduling and Rough-Cut Capacity Planning
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Sample Questions
Q1) What establishes a point of time in the future inside of which changes must be made by the master scheduler,and changes outside of which can be changed by system logic?
A)demand time fence
B)supply time fence
C)system time fence
D)frozen time fence
E)planning time fence
Q2) Describe what CPOPF is.
Q3) CPOPF is the acronym for Capacity Planning (using)Overall Promising Factors. A)True B)False
Q4) Discuss how the MPS is evaluated in terms of cost.
Q5) Beginning Inventory + MPS Shipment - maximum of (forecast and customer orders)is called ________________________.
Q6) The MPS is said to be ________________________ between final assembly and cumulative manufacturing lead times.
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Q7) In the current period,Available-to-Promise adds ________________________ to the formula used for future periods.