Service Operations Management
Final Exam
Course Introduction
Service Operations Management explores the strategic and tactical aspects of delivering quality services to customers across various industries. The course covers key concepts such as service design, process analysis, capacity planning, demand management, quality control, and customer experience. Students learn to apply tools and frameworks for efficient service delivery, analyze operational challenges unique to service-based organizations, and develop leadership skills necessary to drive continuous improvement in customer-focused environments. Emphasis is placed on real-world case studies, best practices, and the integration of technology to enhance service operations.
Recommended Textbook
Operations Management Creating Value Along the Supply Chain 7th Edition by
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Page 2
Roberta S. Russell
Chapter 1: Operations Management
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Sample Questions
Q1) Order qualifiers are the characteristics of a product that have to be satisfied just to be considered for purchase by a customer.
A)True
B)False
Answer: True
Q2) Linear programming,simulation,and waiting line theory are most closely associated with which era in the historical development of operations management?
A)human relations
B)operations research
C)globalization
D)Internet revolution
Answer: B
Q3) Many companies now find it necessary to have some global presence to remain competitive.
A)True
B)False
Answer: True
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Chapter 2: Quality Management
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Sample Questions
Q1) All of the following are dimensions of quality for manufactured products,except:
A)Conformance
B)Reliability
C)Durability
D)Feasibility
Answer: D
Q2) Toyota achieved high product quality by adapting many of the quality management principles that had first been developed in the United States.
A)True
B)False Answer: True
Q3) The degree to which quality characteristics are designed into the product is known as quality of design.
A)True
B)False
Answer: True
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Chapter 3: Statistical Quality Control
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Q1) Process control is achieved by taking periodic samples from a process and plotting the sample points on a chart to determine if the process is within control limits.
A)True
B)False
Answer: True
Q2) The process centerline for both xbar and R charts are both the same value because they are based on the same raw data.
A)True
B)False
Answer: False
Q3) Control charts are never implemented until special cause variation has been detected in a process.
A)True
B)False
Answer: False
Q4) The R-chart is used for monitoring and controlling variation within samples.
A)True
B)False
Answer: True
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Chapter 4: Product Design
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Sample Questions
Q1) Comparing a product or process against the best-in-class is known as reverse engineering.
A)True
B)False
Q2) Tolerances are allowable ranges of customer requirements.
A)True
B)False
Q3) Reliability is the probability that a given part or product will perform its intended function for a specified length of time under adverse operating conditions.
A)True
B)False
Q4) Creating preliminary design models that are quickly tested and either discarded or further refined is known as rapid prototyping.
A)True
B)False
Q5) Product design has a tremendous impact on the quality of a manufactured good or service.
A)True
B)False
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Chapter 5: Service Design
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Sample Questions
Q1) A small diner has one employee and a counter with seating for 8 customers.The diner does not package food for takeout.Customers arrive at the diner at the rate of 20 per hour Poisson distributed).Service times are exponentially distributed and average 24 per hour.Customers that arrive when all seats are taken do not enter the diner.What is the average number of customers waiting average queue length)?
A)2.0432
B)2.8364
C)3.9785
D)5.9782
Q2) A small diner has one employee and a counter with seating for 8 customers.The diner does not package food for takeout.Customers arrive at the diner at the rate of 20 per hour Poisson distributed).Service times are exponentially distributed and average 24 per hour.Customers that arrive when all seats are taken do not enter the diner.What is the probability that there are no customers in the diner?
A)0.2067
B)0.7933
C)0.8333
D)0.1667
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Chapter 6: Processes and Technology
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Sample Questions
Q1) One characteristic of batch production is variable demand.
A)True
B)False
Q2) All the following are factors influencing the outsourcing decision except A)capacity.
B)expertise.
C)quality.
D)product variety.
Q3) Supplier reliability is often an important consideration in outsourcing decisions.
A)True
B)False
Q4) Process strategy defines what tasks need to be done and how they are to be coordinated among functions,people,and organizations.
A)True
B)False
Q5) Process innovation reflects the total redesign of a process for a breakthrough improvement.
A)True
B)False
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Chapter 17: Scheduling
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Sample Questions
Q1) The longest processing time (LPT)rule tends to complete larger jobs in-house when subcontracting is anticipated.
A)True
B)False
Q2) Typically,there are more options available when scheduling employees because labor is a very flexible resource.
A)True
B)False
Q3) Johnson's rule gives an optimal sequence for jobs processed serially through a two step system.
A)True
B)False
Q4) The theory of constraints (TOC)approach to scheduling concentrates on scheduling the bottleneck resources.
A)True
B)False
Q5) Managers typically use multiple objective when constructing a schedule.
A)True B)False
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Chapter 7: Capacity and Facilities
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Sample Questions
Q1) To maximize an assembly line's efficiency
A)the line's balance delay must be minimized.
B)the line's balance delay must be maximized.
C)the cycle time must be less than the flow time.
D)the flow time must be less than the cycle time.
Q2) ___________ is a group technology technique that reorders part routing matrices to identify families of parts with similar processing requirements.
A)Process flow analysis
B)Production flow analysis
C)Cycle analysis
D)Group analysis
Q3) A mixed-model assembly line processes each model in large batch sizes.
A)True
B)False
Q4) Which of the following describes a process layout?
A)equipment is general purpose and the workers are unskilled
B)equipment is specialized and the workers are highly skilled
C)equipment is general purpose and the workers are highly skilled
D)equipment is specialized and the workers are unskilled
Q5) Briefly describe a cellular layout and its objectives.
Page 10
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Chapter 8: Human Resources
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Sample Questions
Q1) An incentive plan that encourages employees to achieve a company's goals and objectives is referred to as
A)a piece-rate wage plan.
B)gainsharing.
C)profit sharing.
D)overtime.
Q2) Flexibility has traditionally been used as a measure of job efficiency.
A)True
B)False
Q3) Studies have shown that the success of Japanese companies is due to cultural factors.
A)True
B)False
Q4) By managing diversity a company can gain a competitive edge because all employees are given an opportunity to do their best.
A)True
B)False
Q5) How has the trend toward quality management changed the way companies view their employees?
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Chapter 9: Project Management
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Sample Questions
Q1) The principles of total quality management (TQM)cannot be applied to project management.
A)True
B)False
Q2) Using Table 9.2,the earliest start (ES)time for activity D is
A)8.17 weeks.
B)12.67 weeks.
C)18.33 weeks.
D)21.67 weeks.
Q3) In general,the earliest finish time for an activity is equal to
A)earliest start time + activity time estimate.
B)earliest start time - activity time estimate.
C)earliest start time - slack time.
D)earliest start time + slack time.
Q4) The three major components of project management include planning,scheduling,and costing.
A)True
B)False
Q5) Briefly describe the makeup of the project management team.
Q6) What is a scope statement?
Page 12
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Chapter 10: Supply Chain Management: Strategy and Design
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Sample Questions
Q1) Distributors,warehouses,and retailers are referred to as _____________ supply chain members.
A)downstream
B)upstream
C)procurement
D)none of the above.
Q2) List and define four information technology supply chain enablers.
Q3) Which of the following is not one of the three key performance indicators KPI)used to measure supply chain performance?
A)inventory turnover
B)postponement rate
C)inventory days of supply
D)fill rate
Q4) What is the bullwhip effect and how does it occur?
Q5) One way to cope with the bullwhip effect is for supply chain members to share demand information.
A)True
B)False
Q7) Who are the upstream and downstream supply chain members? Page 13
Q6) What processes comprise the supply chain and how are the processes integrated?
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Chapter 11: Global Supply Chain Procurement and Distribution
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Sample Questions
Q1) E-procurement is most often used for
A)domestic goods.
B)indirect goods.
C)finished goods.
D)international goods.
Q2) With vendor-managed inventory
A)distributors generate orders.
B)retailers place orders.
C)customers place orders.
D)manufacturers place orders.
Q3) Long life,high capital cost and low operating costs are associated with which mode of transportation?
A)pipeline
B)canal
C)barges
D)water
Q4) Procurement involves the selection of a supplier.
A)True
B)False
Q5) List and discuss the seven different modes of transportation.
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Chapter 12: Forecasting
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Sample Questions
Q1) A company wants to product a weighted moving average forecast for April with the weights 0.40,0.35,and 0.25 assigned to March,February,and January,respectively.If the company had demands of 5,000 in January,4,750 in February,and 5,200 in March,then April's forecast is
A)4983.33.
B)4992.50.
C)4962.50.
D)5000.00.
Q2) A seasonal pattern is an oscillating movement in demand that occurs periodically over the short-run and is repetitive.
A)True B)False
Q3) The smoothing constant, ,in the exponential smoothing forecast
A)must always be a value greater than 1.0. B)must always be a value less than 0.10. C)must be a value between 0.0 and 1.0. D)should be equal to the time frame for the forecast.
Q4) Compare and contrast short-mid-range forecasts and long-range forecasts.
Q5) Explain the difference between qualitative and quantitative forecasting methods.
Page 16
Q6) Discuss the importance of accurate forecasts in supply chain management.
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Chapter 13: Inventory Management
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Q1) With the economic order quantity (EOQ)model,increasing the order quantity reduces inventory carrying cost.
A)True
B)False
Q2) Which of the following is not considered a form of inventory?
A)items being transported
B)tools and equipment
C)supplies
D)backorders
Q3) Finished product is an example of a dependent demand item.
A)True
B)False
Q4) The number of orders can be calculated by dividing the daily demand rate,d,by the order quantity,Q.
A)True
B)False
Q5) The average inventory can be calculated by dividing the annual demand,D,by 2. A)True
B)False
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Chapter 13: Operational Decision-Making Tools: Simulation
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Q1) As a simulation model becomes more complex,using a computer application is virtually impossible.
A)True
B)False
Q2) What is simulation and why is it a popular decision-making tool?
Q3) The Monte Carlo technique is a mathematical model used within a simulation.
A)True
B)False
Q4) A steady state results when a simulation is repeated enough times that the random variable being investigated reaches an average result that remains constant.
A)True
B)False
Q5) Simulation is the preferred technique for problems with random variables represented by probability distributions.
A)True
B)False
Q6) In what ways is simulation relevant to analyzing production problems?
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Chapter 14: Operational Decision-Making Tools: Linear Programming
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Sample Questions
Q1) The constraint 3x<sub>1</sub> + 6x<sub>2</sub> > 48 is converted to an equality by A)adding a slack variable.
B)subtracting a surplus variable.
C)adding both a slack variable and a surplus variable.
D)subtracting both a slack variable and a surplus variable.
Q2) Operations mangers find very few types of linear program models applicable today because finding an optimal solution is no longer a concern.
A)True
B)False
Q3) While all linear programming problems have a single objective function,very few,if any,have constraints.
A)True
B)False
Q4) Linear programming is a mathematical modeling technique based on linear relationships
A)True
B)False
Q5) How is linear programming useful to an operations manager?
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Chapter 14: The Sales and Operations Planning Process
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Sample Questions
Q1) Most companies use mixed strategies for managing demand.
A)True
B)False
Q2) An operations plan is an input into the sales and operations planning process.
A)True
B)False
Q3) What is aggregate planning and what alternatives are generally feasible when developing the aggregate production plans?
Q4) Inventory holding costs are an important consideration for the level production strategy.
A)True
B)False
Q5) Adjusting available capacity by hiring and firing workers to match demand is an example of a(n)________ strategy.
A)level production
B)chase demand
C)mixed production.
D)optimal production.
Q6) What are the outputs of aggregate planning?
Page 20
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Chapter 15: Resource Planning
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Sample Questions
Q1) A phantom bill of material is used
A)to group small,loose parts together.
B)when the product is manufactured in major subassemblies.
C)for subassemblies that are immediately consumed in the next stage of production.
D)when due dates have not been calculated.
Q2) What is the difference between independent and dependent demand?
Q3) Modular bills of material are used to group small,lose parts together into a kit.
A)True
B)False
Q4) The product structure file lists all of the following except A)the product's demand.
B)the items that go into the product.
C)a brief description of each item.
D)when and in what quantity each item is needed in the assembly process.
Q5) What is the master production schedule (MPS)and what role does in play in the material requirements planning (MRP)process?
Q6) 8What steps are necessary to effectively implement Enterprise Resource Planning (ERP)?
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Chapter 16: Lean Systems
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Q1) Combining the practice of preventive maintenance with the concepts of total quality is known as
A)total preventive quality.
B)total productive maintenance.
C)quality breakdown maintenance.
D)reliability assurance.
Q2) In lean production,waste is defined as
A)overproduction.
B)high levels of inventory.
C)unnecessary movement.
D)All the above are waste.
Q3) Which of the following is not a benefit of lean production?
A)Greater flexibility
B)Increased capacity
C)More customers
D)More product variety
Q4) How does the pull system differ from the push system?
Q5) What are the benefits of small-lot production?
Q6) What is a kanban and how is it used in a pull system?
Q7) What role does the elimination of waste play in lean production?
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Chapter 18: Operational Decision-Making Tools: Decision Analysis
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Sample Questions
Q1) The maximum value of perfect information to the decision maker is known as
A)the expected value of perfect information
B)the expected value of imperfect information
C)the minimum of the minimax regret
D)none of the above
Q2) Which of the following techniques is the most widely used decision-making criterion under risk?
A)maximax criterion
B)minimax regret criterion
C)expected value criterion
D)Hurwicz criterion
Q3) A decision criterion in which the decision payoffs are weighted by a coefficient of optimism is known as the Hurwicz criterion.
A)True
B)False
Q4) A decision criterion that results in the maximum of the minimum payoffs is called a maximin criterion.
A)True
B)False
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Chapter 19: Operational Decision-Making Tools: Acceptance Sampling
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Sample Questions
Q1) Six Sigma companies report
A)defective parts per million.
B)defective parts per thousand.
C)defective parts per hundred.
D)no defective parts.
Q2) The simplest form of a sampling plan is a single-sample attribute plan.
A)True
B)False
Q3) The expected number of defective items that will pass on to the customer with a sampling plan is known as the
A)lot tolerance percent defective.
B)acceptable quality level.
C)average outgoing quality.
D)sampling plan.
Q4) An operating characteristics (OC)curve is a graph that measures the probability of accepting a lot with no defective items.
A)True
B)False
Page 24
Q5) .Is acceptance sampling consistent with TQM?
Q6) What is the advantage of a multiple-sampling plan?
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Chapter 20: Decision-Making Tools: Facility Location Models
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Q1) A location's collection of physical support systems is known as its infrastructure.
A)True
B)False
Q2) The load-distance technique evaluated different locations based on load and transport distance.
A)True
B)False
Q3) Service facilities are usually the largest and most expensive type of facility.
A)True
B)False
Q4) Facility location is often overlooked because it is not an important aspect of a firm's strategic plan.
A)True
B)False
Q5) The factors used to evaluate location of a manufacturing plant are usually different from the factors used in locating a service facility.
A)True
B)False
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Chapter 21: Operational Decision-Making Tools: Work Measurement
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Sample Questions
Q1) Workers often do not like to be the subject of a time study and are sometimes unwilling to cooperate.
A)True
B)False
Q2) The normal time to perform a job is calculated by dividing the elemental average by the standard time.
A)True
B)False
Q3) Briefly discuss the advantages and disadvantages of a predetermined motion time system.
Q4) For a particular time study a company would like to be 95% confident that the average job cycle time is within 2% of the true average job cycle time.Assume that the average job cycle time was 6.53 minutes and the standard deviation of the sample was 1.26 minutes.The number of cycles that should be used in this time study would be
A)174
B)358
C)463
D)864
Q5) What is work sampling and what is its primary use?
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