Service Operations Management
Exam Questions
Course Introduction
Service Operations Management focuses on the principles and practices involved in designing, delivering, and improving services in various sectors such as hospitality, healthcare, finance, and retail. The course explores key concepts including service process design, capacity planning, demand and supply management, service quality, customer experience, and the use of technology in service operations. Students will analyze real-world case studies to understand service challenges, evaluate performance metrics, and apply strategic approaches for optimizing service delivery. By the end of the course, learners will be equipped to enhance operational efficiency, manage service teams, and drive customer satisfaction in dynamic service environments.
Recommended Textbook
Operations and Supply Management 12th Edition by F.
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Robert Jacobs
Page 2
Chapter 1: Introduction to the Field
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Sample Questions
Q1) In the late 1950's scholars began to deal specifically with operations management rather than with industrial engineering and operations research.
A)True
B)False
Answer: True
Q2) Effectiveness means doing the right things to create the most value for the company.
A)True
B)False
Answer: True
Q3) Because the text states that "at the most fundamental level,operations and supply management is about getting work done quickly,efficiently,without error and at low cost" there is little in the field of operations management that relates to overall corporate strategy.
A)True
B)False
Answer: False
Q4) What United States National Quality Award was started in 1987?
Answer: The Baldridge Award
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Chapter 2: Operations and Supply Strategy
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Q1) Which of the following is a total measure of productivity?
A)Output/Materials
B)Output/(Labor + Capital + Energy)
C)Output/Labor
D)Output/Inputs
E)All of the above
Answer: D
Q2) Wall Street analysts are not particularly concerned with how efficient companies are from an operations and supply management view.
A)True
B)False
Answer: False
Q3) Which of the following is a multifactor measure of productivity?
A)Output/(Materials + Labor)
B)Output/(Labor + Capital + Energy)
C)Output/All resources used
D)Output/Inputs
E)All of the above
Answer: B
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Page 4
Chapter 3: Project Management
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Sample Questions
Q1) You know when you have arrived at the optimal solution in using the Time-Cost CPM Scheduling model analysis when what happens?
A)You have found the critical path
B)You have run out of crash time
C)You no longer have a linear relationship with costs
D)You have reached the minimum total cost
E)You have run out of crash costs
Answer: D
Q2) Complex projects are often subdivided into a series of tasks that are typically configured to be not longer than several months in duration.
A)True
B)False
Answer: True
Q3) In a CPM analysis if you subtract the early finish from the late finish the result is the activity's slack time.
A)True
B)False
Answer: True
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Chapter 4: Product and Service Design
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Sample Questions
Q1) Most purchasers of electronic products can not fully operate them and use only a small number of the available features.
A)True
B)False
Q2) Which of the following are not typical phases of product development?
A)Concept development
B)Value engineering
C)System-level design
D)Testing and refinement
E)Production/Ramp-Up
Q3) DFMA stands for design for manufacturing and assembly.
A)True
B)False
Q4) What dimension of competitiveness does time-to-market performance in product design and process selection impact?
A)Engineering hours per project
B)The cost of ongoing service
C)Responsiveness to customer needs
D)Aesthetics of design
E)None of the above
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Chapter 5: Strategic Capacity Management
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Sample Questions
Q1) Capacity planning involving consideration of production scheduling and inventory position is characterized by which one of the following time durations?
A)Intermediate-range
B)Long-range
C)Short-range
D)Current
E)Upcoming
Q2) Maximum practical capacity is defined by the federal Bureau of Economic Analysis as "That output attained within the normal operating schedule of shifts per day and days per week including the use of high-cost inefficient facilities".
A)True
B)False
Q3) If demand for product "A" were forecast at 1,000,000 units for the coming year and your factory has one machine capable of producing 75,000 units per month,how much of product "A" might you plan to acquire through outsourcing?
Q4) When plotted on a graph,the experience curve can't be expressed as logarithm.
A)True
B)False
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Chapter 6: Process Analysis
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Sample Questions
Q1) One way to categorize a process is to determine whether it is a multiple-stage or a single-stage process.
A)True
B)False
Q2) When we use a make-to-stock production process we base our production on forecast values.
A)True
B)False
Q3) An advantage of a make-to-stock process is which of the following?
A)Rapid delivery of a standard product
B)All units of output are unique
C)It responds directly to customer orders
D)It allows the firm to avoid inventory costs
E)It combines the best features of other processes
Q4) McDonald's fast food restaurants have traditionally used a Make-To-Order production process.
A)True
B)False
Q5) The formula (Throughput time = Work-in-process/Throughput Rate)is known as what?
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Q6) What are you doing when you compare the metrics of your company to another?
Chapter 7: Manufacturing Processes
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Sample Questions
Q1) The choice of which process structure to select is generally a function of the volume requirements for the product.
A)True
B)False
Q2) Which of the following is not a basic type of process structure?
A)Product-process matrix
B)Workcenter
C)Manufacturing cell
D)Assembly line
E)Continuous process
Q3) One methodology used to evaluate equipment investment decisions where the investment entails a large initial investment,fixed costs and variable costs is break-even analysis.
A)True
B)False
Q4) A general purpose machine is less capable than a special purpose machine in certain tasks but can perform a broader variety of tasks.
A)True
B)False
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Chapter 8: Service Processes
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Sample Questions
Q1) Because little or no inventory is carried in a service operation,it is easy to separate the operations management functions from marketing in services.
A)True
B)False
Q2) Which of the following is not part of the service strategy's operating focus (set of performance priorities)that help the service organization compete?
A)Service culture
B)Speed & Convenience
C)Price
D)Unique skills
E)Treatment of customer
Q3) A service system with a high degree of customer contact is less difficult to control than a low degree of customer contact service system.
A)True
B)False
Q4) Poka-Yoke is roughly translated from Japanese as "Avoid Mistakes".
A)True
B)False
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Chapter 9: Six Sigma Quality
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Sample Questions
Q1) Which of the following are eligible companies to be considered for the Baldrige award?
A)Auditing firms
B)Offshore suppliers to U.S.companies
C)Firms operating only outside the U.S.
D)State Government agencies
E)None of the above
Q2) Conformance quality is a strategic decision for a firm.
A)True
B)False
Q3) One of the most important aspects of any quality improvement program is clearly signaling to everyone in the organization that quality is important.How was that emphasized in the text?
Q4) The Grading Criteria of the Baldrige Award for total quality management includes which of the following?
A)Future plans
B)Information and analysis
C)Standardization
D)Control
E)None of the above
Page 11
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Chapter 10: Supply-Chain Strategy
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Sample Questions
Q1) What is the effect of the lack of synchronization among supply-chain members called?
Q2) Which of the following is one of the strategic characteristics to consider when deciding how supplier relationships should be structured on the continuum between vertical integration (do not outsource)to arm's length relationships (outsource)?
A)Cost
B)Location
C)Investment
D)Coordination
E)Investment.
Q3) Studies show that there is no clear correlation between supply chain performance and change in stock market capitalization.
A)True
B)False
Q4) Inventory turn values that are considered "good" differ by industry and the type of products being handled.
A)True
B)False
Q5) What is "design for logistics"?
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Chapter 11: Logistics and Facility Location
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Sample Questions
Q1) What transportation mode has very high initial investment costs but gives a very low cost per mile for products that are highly specialized and require no packaging?
A)Highway
B)Rail
C)Water
D)Pipeline
E)Air
Q2) A favorable business climate in facility location decision-making might include local government providing basic skill training for prospective members of the workforce.
A)True
B)False
Q3) The text describes 14 "Issues in facility location".Name as many of these as you can.
Q4) Services typically have multiple site locations close to customer markets.
A)True
B)False
Q5) What are the two "hidden costs" that are often overlooked in determining the total cost of a facility location decision?
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Chapter 12: Lean Manufacturing
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Sample Questions
Q1) JIT manufacturing forces a firm to work with a lower water level despite safety hazards.
A)True
B)False
Q2) Which of the following is a lean production technique that is not reported in the textbook to have been successfully applied in service firms?
A)Organize problem-solving groups
B)Upgrade housekeeping
C)Upgrade quality
D)Freeze windows
E)Eliminate unnecessary activities
Q3) JIT is typically applied to non-repetitive manufacturing.
A)True
B)False
Q4) Firms in Japan tend to have short-term partnerships with their suppliers and customers.
A)True
B)False
Q5) Explain why lean manufacturing requires a stable demand environment.
Q6) Name Fujio Cho's seven prominent types of waste to be eliminated.
Page 14
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Chapter 13: Operations Consulting Reengineering
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Sample Questions
Q1) What is the goal of consulting firms?
Q2) Name the five P's of production
Q3) Identify the seven principles of reengineering.
Q4) Which of the following is a cost impact and payoff analysis tool from the operations consulting tool kit?
A)Decision trees
B)Gap analysis
C)Work sampling
D)Statistical tools
E)Customer surveys
Q5) What is the distinction between detailed complexity and dynamic complexity?
Q6) Which of the following represents the greatest percentage of consulting activity for major consulting firms?
A)Strategy
B)Information technology
C)Operations management
D)Human resources
E)Statistical quality control
Q7) Describe how the success-to-the-successful system archetype works.What should be done about it?
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Chapter 14: Enterprise Resource Planning Systems
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Sample Questions
Q1) Enterprise resource planning is a once-per-year activity usually involving a management retreat.
A)True
B)False
Q2) The SAP sales and distribution modules do not include which of the following?
A)Export controls
B)Rebate processing
C)Transportation management
D)Advertising placement
E)Billing
Q3) SAP Business One is a special version of SAP software designed for small and medium-sized firms.According to the text,SAP Business One modules do not include which of the following?
A)Procurement monitoring
B)Inventory and warehouse management
C)Financial reporting
D)Manufacturing reporting
E)Order fulfillment analysis
Q4) Name the six components of the SAP AG's R/3 operations module?
Q5) What are the three tiers in the SAP Client/Server configuration?
Page 16
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Chapter 15: Demand Management and Forecasting
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Sample Questions
Q1) Name the four basic types of forecasting?
Q2) In a forecasting model using simple moving average the shorter the time span used for calculating the moving average,the closer the average follows volatile trends.
A)True
B)False
Q3) Cyclical influences on demand may come from occurrences such as political elections,war or economic conditions.
A)True
B)False
Q4) A company wants to forecast demand using the weighted moving average.If the company uses two prior yearly sales values and we want to weight year 2007 at 35% and year 2008 at 65%,what is the weighted moving average forecast for Year 2009?
Q5) The simple moving average model permits non-linear forecast values.
A)True
B)False
Q6) A company has calculated its running sum of forecast errors to be 1,000 and its tracking signal is 50.What is the company's mean absolute deviation?
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Chapter 16: Aggregate Sales and Operations Planning
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Q1) Which of the following is a production planning strategy presented in the textbook?
A)Level
B)Strategic
C)Balanced
D)Synchronous
E)Optimal
Q2) Aggregate sales and operations planning occurs in a company about every 3 to 18 months.
A)True
B)False
Q3) Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product.If the beginning inventory is 400 units,the demand forecast is 900 units and the required safety stock is 10% of the demand forecast,what is the production requirement?
Q4) Describe the aggregate sales and operations planning process?
Q5) What are the five conditions named in the text that support yield management from an operational perspective?
Q6) What are the four costs relevant to the aggregate operations plan?
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Chapter 17: Inventory Control
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Q1) Cycle counting is a physical inventory-taking technique in which inventory is counted on a frequent basis rather than once or twice a year.
A)True
B)False
Q2) What is the name of a physical inventory-taking technique that focuses only on certain items and counts more often than once or twice a year?
Q3) Explain the difference between inventory control for finished goods in manufacturing and in services?
Q4) Which of the following is the set of all cost components that make up the fixed-order quantity total cost (TC)function?
A)Annual purchasing cost,annual ordering cost,fixed cost
B)Annual holding cost,annual ordering cost,unit cost
C)Annual holding cost,annual ordering cost,annual purchasing cost
D)Annual lead time cost,annual holding cost,annual purchasing cost
E)Annual unit cost,annual set up cost,annual purchasing cost
Q5) What is "inventory accuracy",why is it important and how does inaccuracy occur?
Q6) What are some of the possible benefits of decreasing inventory order cycle time?
Q7) What are the five purposes of inventory?
Page 19
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Chapter 18: Material Requirements Planning
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Q1) The deeper one looks into the product creation sequence,the more the requirements of dependent demand items tend to smooth out and become even over time.
A)True
B)False
Q2) Developing the master production schedule is done by disaggregating the aggregate production plan.
A)True
B)False
Q3) A necessary input to the material requirements planning (MRP)system is an inventory records file.
A)True
B)False
Q4) MRP stands for Manufacturing Requirements Planning.
A)True
B)False
Q5) Demand in for an item located in Level 3 of a product structure tree depends on demand for an item in the next higher Level.What is that Level called?
Q6) What is the main difference between MRP and closed loop MRP?
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Chapter 19: Scheduling
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Q1) Scheduling employees to have two consecutive days off is required by the Fair Labor Standards Act.
A)True
B)False
Q2) A shop-floor control system is a system that uses data from the shop floor as well as data processing files to maintain and communicate status information on shop orders and work centers.
A)True
B)False
Q3) A backward schedule tells when an order must be started in order to be done by a specific date.
A)True
B)False
Q4) One of the principles of work center scheduling is that the effectiveness of any shop should be measured by speed of flow through the shop.
A)True
B)False
Q5) In the context of work assignment,what is infinite loading?
Q6) What is sub-optimization in scheduling?
Page 21
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Chapter 20: Constraint Management
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Sample Questions
Q1) Smaller transfer batches give lower work-in-process inventory and faster product flow.
A)True
B)False
Q2) On an assembly line a transfer batch can be one unit.
A)True
B)False
Q3) According to the theory of constraints which of the following is a financial measurement that can be used to measure the firm's ability to make money?
A)Net profit
B)Throughput
C)Inventory
D)Sales
E)Retained earnings
Q4) How many rules of make up Goldratt's Rules of Production Scheduling?
Q5) According to Dr.Goldratt,what is the goal of the firm?
Q6) On an assembly line a process batch can be infinite.
A)True
B)False
Q7) Describe how cost accounting is sometimes antithetical to TOC?
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Chapter 21: Linear Programming Using the Excel Solver
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Q1) If products and resources can not be subdivided into fractions,the condition of divisibility is violated.In these cases,a modification of linear programming called integer programming can be used.
A)True
B)False
Q2) In the conventional formulation of a linear programming model we will see all of the decision variables on the right-hand-side of a constraint and a constant value on the left-hand-side.
A)True
B)False
Q3) Linear programming is useless when resources are plentiful relative to demand.
A)True
B)False
Q4) Linear programming is useful when resources are unlimited.
A)True
B)False
Q5) What is a "shadow price"?
Q6) The decision variables in a linear programming model must be non-negative.
A)True
B)False
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Chapter 22: Learning Curves
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Q1) You time someone completing a single task the first time at 100 minutes and the fourth time they do the task it takes 81 minutes.You should use a 90 percent learning curve to estimate the length of time this worker will take to complete this task in the future.
A)True
B)False
Q2) You are a consultant called in to estimate the costs after the employees learn how to do a job more efficiently by repetition.You find a company can produce a product the first time at a cost of $2,500.If their 65 percent Learning Curve allows them to reduce their costs on each product,what is the total cost of producing 400 units of the new product?
A)$100,000
B)$78,900
C)$58,600
D)$45,765
E)$37,850
Q3) A learning curve shows the decrease in time required for each successive unit completed.
A)True B)False
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Chapter 23: Job Design Work Measurement
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Q1) Which of the following is not a reason that work measurement is used to set time standards?
A)To schedule work
B)To provide an objective basis for motivating the workforce
C)To bid for new contracts
D)To identify and eliminate lower performing employees
E)To provide benchmarks for improvement
Q2) Describe the distinction between horizontal and vertical form of job enlargement.Under what conditions would you use either?
Q3) The sociotechnical systems approach to job design attempts to develop jobs that adjust the needs of the production process technology to the needs of the worker and work group.
A)True B)False
Q4) The fundamental purpose of work measurement is to set time standards. A)True B)False
Q5) One of the behavioral considerations in job design includes job enrichment. A)True B)False
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Chapter 24: Waiting Line Analysis
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Q1) Which of the following is not a suggestion for managing queues presented in the textbook?
A)Try to divert your customer's attention when waiting
B)Segment the customers
C)Encourage customers to come during the slack periods
D)Train your people to be friendly
E)Periodically close the service channel to temporarily disperse the line
Q2) Gas stations,loading docks and parking lots have infinite potential length of lines for their respective queuing systems.
A)True
B)False
Q3) Which of the following is not a queue discipline discussed in the textbook?
A)First come,first served
B)Last in,first out
C)Limited needs
D)Shortest processing time
E)Best customer first
Q4) Getting a flu shot from the one campus nurse that is on duty might involve standing in which type of queuing line structure?
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Chapter 25: Process Capability and Spc
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Q1) Statistical process control involves testing random samples of output from a process to determine whether the process is producing items within a pre-selected range.
A)True
B)False
Q2) An example of assignable variation in a production system may be that workers are not identically trained.
A)True
B)False
Q3) You are developing an "X-bar" chart based on sample means.You know the standard deviation of the sample means is 4,the desired confidence level is 99.7 percent and the average of the sample means is 24.Which of the following is your UCL?
A)36
B)24
C)12
D)4
E)None of the above
Q4) What is the symbol designating the capability index?
Q5) What does it mean when we say that a process is capable?
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Chapter 26: Simulation
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Q1) Having animation capabilities to graphically display product flows through a production system is not considered a desirable feature of simulation software systems.
A)True
B)False
Q2) Which of the following are viewed as advantages of simulation in operations management decision making?
A)A simulation can be used in training courses as though it were a game
B)A significant amount of computer time can be utilized running simulations
C)The technique of simulation requires innovation as it lacks a standardized approach
D)Simulation may be equally precise but less accurate than a mathematical analysis
E)Simulations are inexpensive and easy to set up and run
Q3) Simulation models are classified as discrete if they are based on mathematical equations.
A)True
B)False
Q4) What is the role of judgment in simulation?
Q5) What are two ways that time is incremented in simulation models?
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