Production and Operations Management Solved
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Course Introduction
Production and Operations Management is a course that explores the principles, techniques, and strategies involved in the efficient production of goods and services. Students will learn about process design, capacity planning, supply chain management, quality control, inventory systems, and lean manufacturing. The course emphasizes the integration of resources, technology, labor, and information to optimize productivity and meet organizational goals. Through case studies and problem-solving exercises, learners will gain practical insights into decision-making processes that enhance operational effectiveness and competitiveness in various industries.
Recommended Textbook operations management an integrated approach 6th edition by r. dan reid
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Page 2
Chapter 1: Introduction to Operations Management
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Sample Questions
Q1) Management science focuses on developing quantitative techniques for solving operations problems.
A)True
B)False
Answer: True
Q2) Service providers' "back room" activities, like ________________________, often have manufacturing characteristics like .
Answer: Check and credit card transaction processing, credit analysis, cleaning and repairing clothing and other products; physical products that can be inventoried, low customer contact, capital intense, and long response times.
Q3) What is the Hawthorne effect?
A) workers responding to the attention they are given
B) stopwatch time studies leading to time standards
C) the use of quantitative methods for solving management problems
D) the use of interchangeable parts
E) more lighting increases productivity
Answer: A
Q4) The history of Operations Management reflects.
Answer: The accumulation of experience and ideas over time.
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Chapter 2: Operations Strategy and Competitiveness
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Q1) If inputs increase by 30% and outputs increase by 15%, what is the percentage change in productivity?
A) 50.00% decrease
B) 88.46% increase
C) 88.46% decrease
D) 11.54% increase
E) 11.54% decrease
Answer: E
Q2) If inputs increase by 6% and outputs increase by 24%, what is the percentage productivity increase?
A) 400.00%
B) 16.98%
C) 0.25%
D) 4.00%
E) 18.00%
Answer: B
Q3) __________ ________ is used to improve the process of creating goods and services.
Answer: Process technology
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Page 4
Chapter 3: Product Design and Process Selection
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Sample Questions
Q1) Evaluating a product idea to determine its likelihood of success is
A) product screening
B) estimating
C) technological forecasting
D) product windowing
E) product evolution
Answer: A
Q2) If a firm's facility layout is not correct it will create:
A) project processes
B) optimum outputs
C) equal number of products
D) inefficiency
E) job satisfaction
Answer: D
Q3) Process velocity is computed as a ratio of throughput time to output.
A)True
B)False
Answer: False
Q4) Name a company that hurt its business success by changing its Operations Type.
Answer: Babcock & Wilcox is one example.
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Chapter 4: Supply Chain Management
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Sample Questions
Q1) Which type of technology provides "point-of-sale information?"
A) Automatic guided vehicles (AGV)
B) Automatic storage and retrieval systems (ASRS)
C) Barcode scanners
D) Flexible manufacturing systems (FMS)
E) Computer aided design/computer aided manufacturing (CAD/CAM)
Q2) Global competition forces organizations to decrease their amount of product proliferation.
A)True
B)False
Q3) The time between order placement and the receipt of goods is called lead time.
A)True
B)False
Q4) What is a network internal to an organization called?
A) supernet
B) internet
C) intranet
D) supranet
E) internalnet
Q5) What is the formula for the indifference point Q* in the make-or-buy decision.
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Chapter 5: Total Quality Management
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Sample Questions
Q1) For a cause-and-effect diagram, causes could be related to all of the following except
A) Analysis
B) Materials
C) Measurements
D) Machines
E) Workers
Q2) What are four dimensions of manufacturing quality?
Q3) During World War II, quality
A) Meant inspecting products to ensure that they met specifications
B) Encompassed the entire organization
C) Was defined as it had been for more than 100 years
D) Became customer driven
E) Became more statistical in nature
Q4) As a design engineer you need to obtain 99.9% reliability. The first part has a reliability factor of 99.99%. What level of reliability does the series part require to achieve 99.9% overall reliability?
Q5) TQM stresses the balanced use of non-quantitative (qualitative) and ________________________ tools in quality improvement.
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Chapter 6: Statistical Quality Control
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Sample Questions
Q1) According to the text, what percent of defects are consumers generally willing to accept?
A) 1-2%
B) 2-3%
C) 3-4%
D) 4-5%
E) 5-6%
Q2) What process capability index (C<sub>p</sub>) value implies that the process "exceeds minimal capability?"
A) 0
B) < 1
C) = 1
D) > 1
E) 6 \(\sigma\)
Q3) The range of a data set is always non-negative.
A)True
B)False
Q4) What is the formula for an R chart's center line?
Q5) The computed AOQ provides a sense of the ______________ of the product
Q6) Define acceptance sampling.
Page 8
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Chapter 7: Just-In-Time and Lean Systems
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Q1) By focusing on value-added processes, JIT is able to achieve high-volume production of high-quality, low-cost products.
A)True
B)False
Q2) Consider a workstation that can process 4 units per minute. It takes 2 hours to receive an order from the previous station. The container size is 10 units. The factory sets safety stock at 20 percent of demand during lead time. How many kanbans are needed for the workstation?
Q3) There are two types of Kanban cards, production Kanban and withdrawal Kanban.
A)True
B)False
Q4) JIT supply chains often involve firms that _____________________.
Q5) The challenge for service operations is that they have to synchronize their __________ with demand.
A) accounting
B) finance
C) marketing
D) production
E) information systems
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Chapter 8: Forecasting
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Q1) Executive opinion is a forecasting method designed to preserve anonymity among the forecasters.
A)True
B)False
Q2) Studies have shown that combining forecasts can lead to forecast accuracy that is better than that of the individual forecasts.
A)True
B)False
Q3) Suppose that you are using the four-period simple moving average method to forecast sales, and sales have been increasing by 20% every period. How will your forecasts perform?
A) Forecasts will be lower than actual.
B) Forecasts will be higher than actual.
C) Forecasts will equal actual.
D) Forecasts will be decreasing.
E) Forecasts will be increasing by 5.0% every period.
Q4) What is the exponential smoothing formula?
Q5) What is a correlation coefficient?
Q6) Describe the naïve forecasting method.
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Q7) The number of future periods forecast is called the ____________________.
Chapter 9: Capacity Planning and Facility Location
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Sample Questions
Q1) According to the textbook, one of the fastest-growing trends today is
A) Leveraging technology
B) PWP
C) focused plants
D) developing a large network of subcontractors
E) developing a large focused distribution chain
Q2) The best operating level is the volume of output that results in the lowest average unit cost.
A)True
B)False
Q3) Expected values are
A) forecasted sales prices
B) forecasted revenues
C) average value of chance events
D) weighted value of the chance events
E) exponential value of the chance events
Q4) Name three of the main factors that affect location decisions. ________________________, ________________________, and ________________________.
Q5) An area that has further encouraged globalization is the growth of __________.
Q6) What is the load-distance score formula?
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Chapter 10: Facility Layout
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Sample Questions
Q1) What term tells us how frequently a product is completed?
A) output rate
B) task time
C) station time
D) cycle time
E) output time
Q2) In general, scheduling resources is less challenging under a process layout than it would be under a product layout.
A)True
B)False
Q3) Describe what group technology is.
Q4) Which layout design tool is primarily based on managers' opinions?
A) x-bar chart
B) REL chart
C) MRP chart
D) from-to matrix
E) Gantt chart
Q5) Compare the minimum versus maximum cycle time of a process.
Q6) What are the three steps in designing process layouts?
Q7) Discuss why facility layout is important to a supply chain
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Chapter 11: Work System Design
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Sample Questions
Q1) The first unit of a product took 400 hours to complete. The firm plans to produce 8 units in the first month and 10 units in the second month. If an 80% learning curve is expected, how many hours will the firm use to work on the product during the second month?
A) 4000.0 hours
B) 2526.0 hours
C) 3886.4 hours
D) 2138.4 hours
E) 1748.0 hours
Q2) The approach that details the tasks of a job and how to do them is
A) work measurement
B) job evaluation
C) methods analysis
D) job design
E) work sampling
Q3) An advantage of using predetermined time data is that you can calculate standard times before the job begins.
A)True
B)False
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Chapter 12: Inventory Management
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Sample Questions
Q1) Which of the following is an assumption of the basic EOQ model?
A) Lead time is unknown.
B) Demand may be seasonal.
C) Orders arrive at once (in one lot).
D) Quantity discounts are considered.
E) Lost sales are allowed, but not back orders.
Q2) When a company experiences a stockout, what are the two possibilities?
Q3) 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?
Q4) Which of the following allow you to calculate the average amount of inventory in transit?
A) ATI - (365*d)/t
B) ATI - (t/365)*d
C) ATI = 365*t*d
D) ATI = (tD)/365
E) ATI - (365*t)/d
Q5) What is ABC Widget Company's inventory turns if it sells goods whose cost is $7,350,000 and its average inventory is $1,225,000?
Q6) Define periodic review system.
Page 14
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Chapter 13: Aggregate Planning
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Sample Questions
Q1) The master production schedule is a(n) ______ production schedule and is typically stated as _______ finished goods.
Q2) Subcontracting provides _____ output capacity during periods of ______.
Q3) ___________________ is an important advantage of level production plans.
Q4) In evaluating the current situation, the point of departure is the size of the change that is needed.
A)True
B)False
Q5) Evaluating an aggregate plan in terms of number of back orders is using what perspective?
A) cost
B) customer service
C) quality
D) operations
E) human resources
Q6) The aggregate plan is usually updated and reevaluated monthly by the operations group.
A)True
B)False
Q7) What are the inputs to the aggregate planning process?
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Chapter 14: Resource Planning
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Sample Questions
Q1) The explosion process calculates the demand for the parent of the children.
A)True
B)False
Q2) The lead time can be less than the cumulative lead time when the company has inventory on hand.
A)True
B)False
Q3) Computer programs that are designed to improve supply chain decision making are called __________________ software.
Q4) _________________ uses planned order releases from the MRP, which considers beginning inventory.
Q5) Under what conditions are action notices generated?
Q6) _______________ assumes that we make enough of everything to build the required quantity, ignoring beginning inventory.
Q7) What are some technological motivations for implementing ERP systems?
Q8) Supply chain intelligence enables ______________ along the supply chain.
Q9) List the major users of ERP systems.
Q10) A ____________________ is the primary output of an MRP system.
Q11) What transactions can cause information in the inventory records file to change? Page 16
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Chapter 15: Scheduling
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Sample Questions
Q1) What does "negative lateness" mean?
A) The job is finished after its due date.
B) The job is finished on its due date.
C) The job is finished before its due date.
D) The job is not finished.
E) The job has not started.
Q2) Which of the following sequencing rules is used for minimizing makespan in a two-stage, unidirectional process?
A) FCFS
B) S/RO
C) SPT
D) CR
E) Johnson's rule
Q3) A progress chart shows the relationship between:
A) a Gantt chart and PERT chart
B) vacation schedule and work schedule
C) forecast and historical performance
D) planned and actual performance
E) planned and actual efficiency
Q4) Under OPT, lead times are _____________ rather than ________________.
Page 18
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Chapter 16: Project Management
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Sample Questions
Q1) Two type of network diagramming notation include:
A) AON and AOA
B) AON and Node
C) AON and NOA
D) Node and AOA
E) Node and Arrow
Q2) The longest connected route through the path network is the ______________________.
A) planning matrix
B) final deliverable
C) crash path
D) connector
E) critical path
Q3) The TOC focuses on correct placement of buffers.
A)True
B)False
Q4) Name and describe the three ways to waste safety time in the critical chain approach.
Q5) Deterministic time estimate makes a _______________ time estimate for each project ___________.
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Chapter 17: Spreadsheet Modeling: An Introduction
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Sample Questions
Q1) What are the five guidelines for good spreadsheet documentation?
Q2) In the custom footer box, the command to insert the worksheet name is "&[Tab]".
A)True
B)False
Q3) ___________________ perform repetitive what-if analysis quickly and easily in Excel.
A) What-If Tables
B) Repetitive Tables
C) Sensitivity Tables
D) Scenario Tables
E) Data Tables
Q4) In Excel, ___________________ references are indicated by the lack of a dollar sign character preceding either the column or the row reference.
A) absolute
B) comparative
C) analogous
D) relative
E) correlative
Q5) Define and describe a model.
Q6) How do you know that you have a relative reference in Excel?
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Chapter 18: Introduction to Optimization
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Sample Questions
Q1) Consider the Linear Program below. Which of the choices represents the best (tightest) lower bound?
Max 2X + Y
Subject to
X + Y 10
X, Y 0
A) ( , - )
B) (- , - )
C) (0, 0)
D) (5, 0)
E) (25, 16)
Q2) The Answer Report Target Cell, Adjustable Cell, and Constraint sections all include:
A) base value, original value
B) original value, final value
C) base value, final value
D) original value, test value
E) bounded value, un-bounded value
Q3) When is a Linear Program unbounded?
Q4) What are the four steps to setting up an optimization problem with Excel Solver?
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Chapter 19: Waiting Line Models
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Q1) For a single-server, single-line, single-phase waiting line system, where \(\lambda\) represents the mean arrival rate of customers and \(\mu\) represents the mean service rate, what is the formula for the average utilization of the system?
A) \(\lambda\) / \(\mu\)
B) \(\lambda\) / (\(\mu\) - \(\lambda\))
C) \(\lambda\)<sup>2</sup> / \(\mu\) (\(\mu\)- \(\lambda\))
D) 1 / (\(\mu\)- \(\lambda\))
E) \(\lambda\) / \(\mu\) (\(\mu\) - \(\lambda\))
Q2) For a single-server, single-line, single-phase waiting line system, where \(\lambda\) represents the mean arrival rate of customers and \(\mu\) represents the mean service rate, what is the formula for the average time spent waiting in line?
A) \(\lambda\) / \(\mu\)
B) \(\lambda\) / (\(\mu\) - \(\lambda\))
C) \(\lambda\)<sup>2</sup> / \(\mu\) (\(\mu\) - \(\lambda\))
D) 1 / (\(\mu\) - \(\lambda\))
E) pW
Q3) Describe the relative benefits of using a single-line system vs. a multi-line system.
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Chapter 20: Master Scheduling and Rough-Cut Capacity Planning
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Q1) In an MPS record, the forecast row shows the forecasted supply for the product.
A)True
B)False
Q2) Discuss the Master scheduler responsibility.
Q3) Discuss why a negative number in the available-to-promise row is always a problem.
Q4) What establishes that point of time in the future inside of which changes to the MPS must be approved by a higher authority?
A) demand time fence
B) supply time fence
C) authorized time fence
D) frozen time fence
E) planning time fence
Q5) What term refers to proven capacity calculated from actual performance data?
A) manifested capacity
B) established capacity
C) demonstrated capacity
D) confirmed capacity
E) affirmed capacity
Page 23
Q6) Discuss the master scheduler's objectives when developing the MPS.
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