Service Operations Management
Final Exam Questions
Course Introduction
Service Operations Management explores the design, operation, and improvement of processes that deliver services in a variety of industries, including healthcare, hospitality, banking, and retail. The course examines service strategy, process analysis, capacity planning, quality management, demand forecasting, and the unique challenges of managing service encounters. Students learn to apply analytical tools and frameworks to improve efficiency, enhance customer satisfaction, and create value in service-based organizations, while also considering the impact of technology and globalization on service operations. Through case studies and practical examples, the course equips participants with the skills to effectively lead and innovate in service environments.
Recommended Textbook Operations and Supply Chain Management 15th Edition by F. Robert Jacobs
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Chapter 1: Introduction
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Q1) Raising senior management awareness of OSCM as a competitive weapon is not an important issue.
A)True
B)False
Answer: False
Q2) All other things remaining the same, if the sales revenue increases, asset turnover ratio will
A)Increase
B)Decrease
C)Stay the same
D)may increase or decrease
E)there is no way to tell for sure
Answer: A
Q3) "Business analytics" involves the analysis of data through a unique combination of linear programming, game theory, and queuing theory to better solve business problems.
A)True
B)False
Answer: False
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Chapter 2: Strategy
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Q1) In a firm, if the employees attend a training program, then the time to assemble one unit reduces by 10%.Training program will
A)increase the labor productivity only
B)increase the multifactor productivity only
C)increase both labor and multifactor productivity
D)decrease capital productivity
E)have no effect on productivity.
Answer: C
Q2) A firm's business practices toward its labor force pertain mainly to the economic aspect of the triple bottom line concept.
A)True
B)False
Answer: False
Q3) An operations and supply chain strategy must be integrated with the organization's corporate strategy.
A)True
B)False
Answer: True
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Chapter 4: Project Management
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Q1) Using the time-cost CPM model, the crash time is the shortest possible time allowed for each activity in the project.
A)True
B)False
Answer: True
Q2) A company must perform a maintenance project consisting of seven activities.The activities, their predecessors, and their respective time estimates are presented here: Using CPM, what is the latest finish time for the last activity in this project (i.e., the total time to complete the project)?
A)9 days
B)10 days
C)11 days
D)12 days
E)13 days
Answer: C
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5
Chapter 3: Design of Products and Services
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Q1) In the generic product development process, phase 2 (system-level design) begins with corporate strategy and incorporates market objectives.
A)True
B)False
Q2) In the generic product development process, collecting customer needs is accomplished during phase 0 (planning).
A)True
B)False
Q3) Which of the following is primarily used to help design products that will connect product attributes with customer desires?
A)Phase 0: Planning
B)House of quality matrix
C)Value analysis/value engineering
D)Concurrent engineering
E)System-level design
Q4) DFMA stands for design for manufacturing and assembly.
A)True
B)False
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Chapter 5: Strategic Capacity Management
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Sample Questions
Q1) A production facility develops virtuosity and works best when it focused on a widely varied set of production objectives.
A)True
B)False
Q2) The capacity focus concept can be put into practice through a mechanism called which of the following?
A)Best operating level (BOL)
B)Plant within a plant (PWP)
C)Total quality management (TQM)
D)Capacity utilization rate (CUR)
E)Zero changeover time (ZXT)
Q3) If the best operating level of a piece of equipment is at a rate of 400 units per hour and the actual output during an hour is 300 units, which of the following is the capacity cushion?
A)25 percent
B)100 units per hour
C)75 percent
D)125 percent
E)133 percent
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Page 7
Chapter 6: Learning Curves
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Q1) A company can produce a small lot of products the first time at a cost of $10,000.If their 75 percent learning curve allows them to reduce their costs on each lot, what is the total cost of producing 10 lots?
A)$100,000
B)$93,978
C)$65,432
D)$55,890
E)$49,310
Q2) If a person performing a task has been achieving an 85 percent learning curve and if it took 1 minute to produce the first unit, the total time to produce 1,000 units will be 437.5 minutes.
A)True
B)False
Q3) When plotted on a graph, the learning curve can't be expressed as logarithm.
A)True
B)False
Q4) Learning curves can be applied to individuals and to organizations.
A)True
B)False
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Chapter 7: Manufacturing Processes
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Q1) A continuous process indicates production of discrete parts moving from workstation to workstation at a controlled rate.
A)True
B)False
Q2) The closer the customer is to the customer order decoupling point, the more quickly the customer receives the product.
A)True
B)False
Q3) A project layout is characterized by a high degree of task ordering.
A)True
B)False
Q4) Which of the following is not a step in developing a manufacturing cell layout?
A)Grouping parts into families that follow a common sequence of steps
B)Identifying dominant flow patterns of parts families as a basis for location of processes
C)Physically grouping machines and processes into cells
D)Disposing of leftover machinery and outsourcing ungrouped processes
E)None of these
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Chapter 8: Facility Layout
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Sample Questions
Q1) A workcenter layout is similar to the basic production layout format of job-shop.
A)True
B)False
Q2) In the design of retail service layouts, the term "ambient conditions" could refer to which of the following?
A)Signs
B)Symbols
C)Artifacts
D)Lighting
E)Speed of service
Q3) In assembly-line balancing, the theoretical minimum number of workstations is found by a ratio of the sum of all task times divided by the cycle time.
A)True
B)False
Q4) In designing a production layout a flexible line layout might have the shape of a "U".
A)True
B)False
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10
Chapter 9: Service Processes
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Q1) Which of the following is considered a high-contact service operation?
A)On-line brokerage house
B)Internet sales for a department store
C)Physician practice
D)Telephone life insurance sales and service
E)Automobile repair
Q2) In the service-system design matrix, a face-to-face loose specs service encounter is expected to have which of the following?
A)Low sales opportunity
B)Low production efficiency
C)High production efficiency
D)Low degree of customer/server contact
E)None of these
Q3) Which of the following refers to the physical presence of the customer in a service system?
A)Creation of the service
B)Customer contact
C)Intermittent production
D)Continuous production
E)None of these
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Chapter 10: Waiting Line Analysis and Simulation
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Q1) A car wash is an example of a single-channel, multiphase queuing system.
A)True
B)False
Q2) In modeling a simulation, random numbers from 00 to 99 are assigned with the intervals determined from frequency distributions for each behavior occurrence.Assume there are two behaviors, X and Y, out of 50 tallies.On behavior X you record 20 tallies, and on behavior Y you record 30 tallies.Which of the following is a correct random-number interval for behavior X?
A)00 to 19
B)01 to 20
C)00 to 39
D)41 to 61
E)45 to 100
Q3) A roller coaster ride in an amusement park employs which type of queuing system line structure?
A)Single channel, single phase
B)Single channel, multiphase
C)Multichannel, single phase
D)Multichannel, multiphase
E)None of these
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Chapter 11: Process Design and Analysis
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Sample Questions
Q1) Make-to-stock production processes can easily handle requests for customized product features.
A)True
B)False
Q2) If you want to reduce process flow time, it has been suggested that you can perform activities in the process in parallel.
A)True
B)False
Q3) Make-to-order production processes are well suited for high-volume production of a standardized product.
A)True
B)False
Q4) Pacing in production processes refers to the fixed timing of the movement of items through the process.
A)True
B)False
Q5) McDonald's fast-food restaurants use a make-to-order production process. A)True B)False
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Chapter 12: Six Sigma Quality
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Sample Questions
Q1) While business organizations can seek to achieve the Baldrige National Quality Award, universities cannot.
A)True
B)False
Q2) A flowchart as part of a Six-Sigma quality improvement process might be found in which DMAIC category?
A)Define
B)Measure
C)Analyze
D)Improve
E)Control
Q3) Which of the following is a dimension of design quality?
A)Price
B)Features
C)Color
D)Weight
E)Quality at the source
Q4) ISO 9000 is primarily concerned with environmental management.
A)True
B)False
Page 14
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Chapter 13: Statistical Quality Control
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Q1) Consider a sampling plan with n=40 and c=1 and given Acceptable quality level (AQL), Lot tolerance percent defective (LTPD), producer's risk ( ) and consumer's risk ( ).Suppose that c is increased to 2, keeping AQL and LTPD unchanged, consumer's risk ( ) will
A)Always decrease
B)Always increase
C)Sometime decrease
D)Stay the same.
E)None of the above.
Q2) You are going to develop an X-bar chart based on range statistics, and you are using a sample size of 12 for your charting purposes.Which of the following is the A<sub>2</sub> factor for the X-bar chart?
A)0.37
B)0.31
C)0.27
D)0.22
E)0.18
Q3) AQL stands for accepting questionable lots in production quality management.
A)True
B)False
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Chapter 14: Lean Supply Chains
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Q1) JIT production means that we produce the product before it is required so the customer does not wait for the product.
A)True
B)False
Q2) Uniform plant loading is where you schedule production with different amounts of the same product each day of the week to permit variation to meet changing demand requirements.
A)True
B)False
Q3) Uniform plant loading is a process of smoothing the production activity flow to dampen the reaction waves that normally occur in response to schedule variations.
A)True
B)False
Q4) Applying lean concepts in manufacturing balances increases in cost with quality improvement.
A)True
B)False
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Chapter 15: Logistics Distribution, and Transportation
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Q1) Which of the following is a plant location methodology good for locating a single facility within a set of existing facilities based in distances and volumes of goods shipped?
A)Factor-rating systems
B)Centroid method
C)Decision trees
D)Linear programming
E)Regression analysis
Q2) Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of low wage costs and/or skill levels.
A)True
B)False
Q3) In facility location decision making, the factor-rating system is based on linear programming.
A)True
B)False
Q4) In a hub-and-spoke system, each warehouse in the system acts as a spoke.
A)True
B)False
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Chapter 16: Global Sourcing and Procurement
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Sample Questions
Q1) Inventory turnover and weeks of supply are mathematically the inverse of one another.
A)True
B)False
Q2) Ownership costs include which of the following costs?
A)Environmental costs
B)Warranty costs
C)Supply chain costs
D)Quality costs
E)Taxes
Q3) Which of the following is not an organizationally driven reason for outsourcing?
A)Improve effectiveness by focusing on what the firm does best.
B)Improve flexibility to meet changing demand for products and services.
C)Increase product and service value by improving response to customer needs.
D)Improve credibility and image by associating with superior providers.
E)All of these are organizationally driven reasons for outsourcing.
Q4) An organizationally driven reason for outsourcing is that it can transform the organization.
A)True
B)False
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Chapter 17: Enterprise Resource Planning Systems
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Q1) A SAP system can accommodate items that must be maintained in inventory while simultaneously supporting JIT efforts for other items.
A)True
B)False
Q2) Accounts receivable is the amount owed the firm by its suppliers.
A)True
B)False
Q3) In the cash-to-cash cycle calculation, if the cost of goods sold per day increases, but all other data such as average inventory and average payables and receivables remain the same, then the value of cash-to-cash cycle will
A)go down
B)go up
C)stay the same
D)May go up or down, but cannot tell without more information
Q4) Because the scope of ERP packages is very large, it is rarely necessary to add additional software.
A)True
B)False
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Chapter 18: Forecasting
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Q1) A company has actual unit demand for three consecutive years of 124, 126, and 135.The respective forecasts for the same three years are 120, 120, and 130.Which of the following is the resulting MAD value that can be computed from these data?
A)1
B)3
C)5
D)15
E)123
Q2) As a consultant, you have been thinking about choosing the "right" alpha (smoothing constant) for forecasting using exponential smoothing.Which of the following is most accurate about alpha?
A)If alpha is high, speed of reaction to changes in actually low.
B)If a firm produces standard product with relatively stable demand, alpha should be small.
C)Products experiencing growth should be assigned higher alpha value.
D)Alpha could be more than 1.0, and in this case (1-alpha) will become negative to make up for it.
E)B and C
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Chapter 19: Sales and Operations Planning
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Q1) One of the conditions that makes yield management effective is when inventory is easily stored and held for a time when demand is stronger.
A)True
B)False
Q2) Firms facing cyclical demand fluctuations would be wise to introduce complementary products whose cycles are the same as their current products.
A)True
B)False
Q3) The essence of yield management is the ability to manage supply.
A)True
B)False
Q4) In an overview of the major operations planning activities in a typical organization, which of the following activities precedes aggregate sales and operations planning?
A)Process planning
B)Workforce scheduling
C)Master production scheduling
D)Materials requirements planning
E)Order scheduling
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Chapter 20: Inventory Management
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Q1) Shortage costs are precise and easy to measure.
A)True
B)False
Q2) Fixed-time-period inventory models generate order quantities that vary from time period to time period, depending on the usage rate.
A)True
B)False
Q3) One of the drivers of the direct-to-store (direct distribution) approach is the decrease in trucking industry regulation.
A)True
B)False
Q4) The standard fixed-time-period model assumes that inventory is never counted but determined by EOQ measures.
A)True
B)False
Q5) Inventory is defined as the stock of any item or resource used in an organization.
A)True
B)False
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Chapter 21: Material Requirements Planning
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Q1) The time-phased plan specifying how many and when the firm plans to build each end item is called the master production schedule (MPS).
A)True
B)False
Q2) The MRP program performs its analysis from the bottom up of the product structure trees, imploding requirements level by level.
A)True
B)False
Q3) The least unit cost method of lot-sizing adds ordering, stockout, and inventory carrying costs for each trial lot size and divides by the number of units in each lot size, picking the lot size with the lowest unit cost.
A)True
B)False
Q4) A modular bill of materials is the term for an item that can be produced and stocked as a subassembly.
A)True B)False
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Chapter 22: Workcenter Scheduling
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Q1) Assume you are sequencing jobs using Johnson's rule.A particular job requires 3 hours to assemble and then is followed by 2 hours in the painting department.Which of the following is where you would schedule this job?
A)As early as possible in the unfilled job sequence.
B)As late as possible in the unfilled job sequence.
C)The schedule would depend on the due date.
D)Does not matter.
E)Johnson's rule does not apply.
Q2) In infinite loading, no consideration is given directly to whether there is sufficient capacity at the resources required to complete the work, nor is the actual sequence of the work as done by each resource in the work center considered.
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
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24
Chapter 23: Theory of Constraints
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Q1) JIT requires work-in-process when used with kanban so there is inventory to pull.When compared to synchronous manufacturing, this is viewed as a negative aspect of JIT.
A)True
B)False
Q2) According to the theory of constraints, a bottleneck is any resource whose capacity is greater than the demand placed on it.
A)True
B)False
Q3) Statistical fluctuation refers to the normal variation about a mean or average.
A)True
B)False
Q4) Larger transfer batches give shorter lead times and lower inventories, and there is more material handling than smaller transfer batches.
A)True
B)False
Q5) Buffer inventory in front of a bottleneck is called a time buffer. A)True
B)False
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Chapter 24: Health Care
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Q1) Which of the following is an essential resource that flows through a hospital supply chain?
A)Doctors and nurses
B)Information
C)Medicine
D)Patients
E)X-rays
Q2) Nursing stations designed today are only circular in shape.
A)True
B)False
Q3) The founders of the Mayo Clinic are credited with the innovation of integrated medical care in their rural medical practice in the late 1800s.
A)True
B)False
Q4) Health care operations management may be defined as the recruitment, organization, and scheduling of the professionals that deliver health care services.
A)True
B)False
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Chapter 25: Operations Consulting
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Q1) Which of the following is not considered an operations consulting tool kit category?
A)Problem definition
B)Data gathering
C)Cost impact and payoff analysis
D)Optimizing operations output
E)Implementation
Q2) Which of the following is the stage in the operations consulting process that immediately follows "sales and proposal development"?
A)Design, develop, and test alternative solutions
B)Develop systematic performance measures
C)Present final report
D)Assure client satisfaction
E)Analyze problem
Q3) Companies typically seek out operations consultants when they are faced with major investment decisions or when they believe that they are not getting maximum effectiveness from their productive capacity.
A)True
B)False
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