Production and Operations Management Study Guide Questions
Course Introduction
Production and Operations Management is a comprehensive course that explores the strategies, techniques, and tools used to efficiently produce goods and deliver services. Students will learn about the design, operation, and improvement of productive systems, with topics covering process analysis, capacity planning, inventory management, quality control, supply chain coordination, and lean production principles. Emphasizing both manufacturing and service environments, the course aims to develop analytical and decision-making skills necessary for optimizing productivity, reducing costs, and enhancing overall organizational performance. Through case studies and practical applications, students will gain insights into the challenges and best practices of modern operations management.
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Introduction to Operations and Supply Chain Management 3rd Edition by Cecil
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B. Bozarth
Chapter 1: Introduction to Operations and Supply Chain Management
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Q1) Every organization has an operations function.
A)True
B)False
Answer: True
Q2) A second-tier supplier is located ________ from a first-tier supplier.
Answer: upstream
Q3) Distinguish between upstream and downstream firms in a supply chain and provide an example.
Answer: Upstream and downstream are relative terms that describe the position of a supply chain member from one point of reference.A supply chain member that is upstream from a firm is sending their output to the firm for use as an input.A supply chain member that is downstream from a firm is taking the firm's output and using it as an input to their own processes.It is possible for a single member of a supply chain to be both upstream and downstream from one or more members of their supply chain.
Q4) Most of the participants in a supply chain are both suppliers and customers.
A)True
B)False
Answer: True
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Chapter 2: Operations and Supply Chain Strategies
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Q1) Which of the following statements about functional strategy is BEST?
A)Functional strategies are not impacted by the mission statement;instead they are impacted by the overall business strategy.
B)Functional strategies determine the overall business strategy.
C)Many functional-level strategies could readily be described as cross-functional.
D)A firm's operations and supply chain strategy is more important than their marketing,finance and engineering strategies.
Answer: C
Q2) A major retailer wants to sell items as cheaply as possible while maintaining an attractive and enjoyable shopping atmosphere.Spending too much on ambience will raise prices and drive away shoppers but spending too little will drive shoppers away also.Clearly,the retailer is faced with a(n)________.
Answer: trade-off
Q3) ________ are tangible resources such as buildings,equipment,and computer systems.
Answer: Structural elements
Q4) The ________ explains why an organization exists.
Answer: mission statement
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Chapter 3: Process Choice and Layout Decisions in Manufacturing and Services
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Q1) A manufacturing process decision affects:
A)the type of workforce needed.
B)the type of equipment needed.
C)the type of products that can be made.
D)All of the above are correct.
Answer: D
Q2) No manufacturing process can be best at everything.
A)True
B)False
Answer: True
Q3) The product process matrix uses a scale of ________ and ________.
Answer: volume;standardization
Q4) Capability variety is the difference in how customers view an identical service outcome.What some customers might view as economical and thrifty others might view as cheap and poor value.
A)True
B)False
Answer: False
Q5) The maximum allowable cycle time for a production line is the ________. Answer: takt time
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Chapter 4: Business Processes
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Q1) The procedure of rethinking and radical redesign of business processes to achieve dramatic organizational improvements is called:
A)competitive benchmarking.
B)continuous improvement.
C)process benchmarking.
D)business process reengineering.
Q2) Which of these continuous improvement tools would be best suited for showing all of the steps required to change your major to operations management?
A)process map
B)cause-and-effect diagram
C)Pareto chart
D)scatter plot
Q3) A(n)________ is used to record how frequently a certain event occurs.
Q4) A set of tasks or activities that addresses the main value-added activities of an organization is a:
A)process.
B)primary process.
C)support process.
D)development process.
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Chapter 5: Managing Quality
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Q1) Which of these statements about the zero defects view of the total cost of quality is BEST?
A)Failure costs dictate the shape of the total cost curve.
B)In general,appraisal costs exceed prevention costs.
C)As the defect rate increases,appraisal costs increase.
D)As the defect rate increases,prevention costs increase.
Q2) ________ is a managerial approach in which an entire organization is managed so that it excels in all quality dimensions that are important to customers.
Q3) W.Edwards Deming's Fourteen Points for Management include:
A)use statistical methods to determine the workers responsible for poor quality.
B)break down barriers between departments.
C)the customer is always right,so design your system to please them.
D)plan your work and work your plan.
Q4) What are the seven core ideas of total quality management?
Q5) Joseph Juran's definition of quality as "fitness for use" is an example of the value perspective of quality.
A)True
B)False
Q6) A(n)________ cost is incurred by a company to assess its quality levels
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Chapter 6: Managing Capacity
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Q1) How many customers are in the Piggly Wiggly at any given time?
Q2) In general,higher conformance quality reduces capacity since the extra care taken during production slows the output rate.
A)True
B)False
Q3) The ________ capacity strategy attempts to adjust the current capacity to a level equivalent to the current demand.
Q4) Students arrive at a professor's office every 20 minutes during final exam week according to a Poisson distribution.What is the probability that the professor's one hour afternoon nap will not be disrupted by any student arrivals?
A)0.00
B)0.05
C)0.15
D)0.45
Q5) The maximum output capability of a system,allowing for no adjustments for scheduled or unscheduled maintenance is the ________.
Q6) In waiting line theory,a customer service attendant is a(n)________.
Q7) The ________ is the output volume level where the firm realizes a $0 net profit.
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Chapter 7: S Advanced Waiting Line Theory and Simulation
Modeling
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Q1) Customers enter the stadium and purchase refreshments before they are shown to their seats by experienced ushers.The customers are considered objects in the simulation model.
A)True
B)False
Q2) A single channel single server system requires that the ________ rate be larger than the ________ rate.
Q3) The effect of the Excel formula =20 RAND()is that:
A)twenty entries of a random variable with a mean of zero will be created.
B)twenty entries of a random variable with a mean of one will be created.
C)one entry of a random variable with a mean of twenty will be created.
D)one entry of a random variable with a mean of ten will be created.
Q4) A waiting line cannot be both multiple-channel and multiple-phase.
A)True B)False
Q5) Customers pass by any one of forty ticket takers on their way in the arena for a WWE event.This is a single ________ system.
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Q6) A process is ________ if the outcome of one trial does not have any impact on the next trial.
Chapter 8: Supply Management
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Q1) The purchasing team occasionally examined their spending patterns to identify irregularities as part of a(n)________.
Q2) A manufacturer that wants to make sure that suppliers do not become complacent should use multiple sourcing.
A)True
B)False
Q3) When compared with single sourcing,multiple sourcing has the advantage of:
A)spreading risk.
B)volume leveraging.
C)lower transportation costs.
D)reduced quality variability.
Q4) The phenomenon that a dollar in cost savings increases pretax profits by a dollar,while a dollar increase in sales increases pretax profits only by the dollar multiplied by the pretax profit margin is known as the:
A)profit margin.
B)return on assets.
C)saving to spending ratio.
D)profit leverage effect.
Q5) Define outsourcing and discuss its advantages and disadvantages.
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Chapter 9: Logistics
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Q1) In the United States,the value of goods transported via highway is greater than the value of goods transported by all other transportation modes.
A)True
B)False
Q2) Roadrailers are considered a multimodal solution when all of their capabilities are utilized.
A)True
B)False
Q3) The solution obtained from an assignment problem is an optimal answer to the problem of shipping goods from multiple sources to multiple destinations.
A)True
B)False
Q4) The goods entered doors on one side of the massive building and crossed the floor to the other side,where they were loaded on delivery trucks headed out on their delivery routes.The screams of the workers were drowned out by the constant traffic from the nearby airport and rail yard,making this an ideal ________ for the retail giant.
Q5) Define logistics and explain why it is critical.
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Chapter 10: Forecasting
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Q1) A collaborative planning,forecasting and replenishment system eliminates the need for forecasting.
A)True
B)False
Q2) Which of the following statements regarding collaborative planning,forecasting,and replenishment (CPFR)systems is BEST?
A)In CPFR,each business develops a sales and operations plan and the mainframe system reconciles these plans to find a middle ground that all businesses work towards. B)CPFR is a set of business processes.
C)CPFR has the Project Management Body of Knowledge (PMBOK©)as its basis.
D)Recent studies have demonstrated that manual,paper-based CPFR systems are more responsive and more accurate than computer-based CPFR systems.
Q3) In order to indicate ________ in a forecast model,you should use the mean forecast error approach rather than the mean absolute deviation approach.
Q4) Forecasts are almost always wrong.
A)True
B)False
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Chapter 11: Sales and Operations Planning Aggregate Planning
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Q1) Sales and operations plans must be updated as time progresses,so most firms establish a(n)________.
Q2) Detailed planning and control offers the greatest ability to adjust capacity.
A)True
B)False
Q3) Your book describes three phases in the implementation of sales and operations planning in an organization.What are the three phases and what takes place in each?
Q4) Detailed planning and control is riskier than strategic planning.
A)True
B)False
Q5) Sales and operations planning must consider:
A)customer demand.
B)capabilities of suppliers.
C)capabilities of logistics service providers.
D)All of these must be considered when performing S&OP.
Q6) Sales and operations planning across a supply chain is similar in nature to collaborative planning,forecasting,and replenishment.
A)True
B)False
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Chapter 12: Managing Inventory Throughout the Supply Chain
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Q1) Individual links in the supply chain can stabilize their production at the most efficient level by using:
A)safety stock.
B)anticipation inventory.
C)linkage inventory
D)smoothing inventory.
Q2) The ________ is an extreme change in the supply position upstream generated by a small change in demand downstream.
Q3) The inventory that companies hold to protect themselves against uncertainties in either demand or replenishment time is called:
A)safety stock.
B)anticipation inventory.
C)hedge inventory.
D)smoothing inventory.
Q4) Cavalier Enterprises elects to hold no safety stock.Their service level is therefore ________.
Q5) Derive the economic order quantity model,beginning with a definition of terms and graph of cost curves.
Q6) Describe any four types of inventory and the drivers that spur their need.
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Chapter 13: Managing Production Across the Supply Chain
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Q1) MRP uses backward scheduling.
A)True
B)False
Q2) Component J is ordered on February 1,is received,and is ready to use on February 8.Its planning lead time is seven days.
A)True
B)False
Q3) Distribution requirements planning is used to synchronize supply chain partners at the production activity control level.
A)True
B)False
Q4) Distribution requirements planning is identical to material requirements planning except instead of gross requirements,a DRP record shows forecasted demand.
A)True
B)False
Q5) Cow Company used the master schedule to determine how many workers and the number of machine hours would be needed for each production period.This approach is known as ________.
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Chapter 14: S Supply Chain Information Systems
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Q1) A typical CRM application is:
A)design collaboration.
B)sell process.
C)sourcing decisions.
D)supply collaboration.
Q2) Customer relationship management refers to planning and control activities and information systems that link a firm with its downstream customers.
A)True
B)False
Q3) A supply chain information system that links a company with an entity upstream is called a(n):
A)customer relationship management system.
B)supplier relationship management system.
C)internal supply chain management system.
D)business process modeling tool.
Q4) Computer-based information systems that allow users to analyze,manipulate,and present data in a manner that aids higher-level analysis and conclusions are called
Q5) Warehouse and transportation planning systems support ________ planning efforts.
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Chapter 15: Jitlean Production
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Q1) Some companies have found it beneficial to combine the planning capabilities of kanban with the control capabilities of MRP.
A)True
B)False
Q2) JIT can be used in:
A)repetitive production.
B)job shop production.
C)many service industries.
D)All of these settings are appropriate for JIT.
Q3) Which of the following is NOT an element of Lean production?
A)to have only the required inventory when needed
B)to increase queue lengths
C)to improve quality to zero defects
D)to reduce setup times
Q4) For a kanban system to work properly,demand rates must be relatively stable,and interruptions must be minimized.
A)True
B)False
Q5) The number of kanbans in a production system is inversely related to the
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Chapter 16: Managing Projects
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Q1) A forward pass through a network is used to determine the earliest start and finish times for each project activity.
A)True
B)False
Q2) In what way are projects and typical business activities similar?
A)For most companies,projects and typical business activities can be described as routine.
B)Both projects and typical business activities have a defined ending point at which time they are complete.
C)Projects and routine business activities require significant levels of cross-functional and inter-organizational coordination.
D)The successful completion of projects and business activities is essential to a firm's competitive position.
Q3) Develop a Gantt chart for this project and indicate the finish times for each activity.
Q4) ________ is a technique to shorten the overall length of the project that usually involves a trade-off between time and cost.
Q5) The actual work gets done during the ________ phase of a project.
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Chapter 17: Developing Products and Services
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Q1) Value may be increased by simultaneously increasing cost and decreasing functionality.
A)True
B)False
Q2) The initial generation of DeLorean boasted of its stainless steel skin,gull-wing doors,and 273 sizes of fasteners.The engineers lowered the product's overall inventory level and product complexity by settling on only 12 different sizes of fasteners thanks to their ________ program.
Q3) What are the four reasons that a company might develop new products and services?
Q4) Which of the following functions is NOT typically involved in a cross-functional product development effort?
A)marketing
B)operations
C)finance
D)All of these functions are involved.
Q5) ________ allows activities in different development stages to overlap with one another.
Q6) What are robust design,testability,and serviceability and how are they related?
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