Service Operations Management
Final Test Solutions
Course Introduction
Service Operations Management explores the principles, strategies, and techniques essential for effectively designing, delivering, and improving services across various industries. The course covers key topics such as service process design, capacity planning, service quality management, demand forecasting, and the integration of technology in service delivery. Students will learn how to analyze and enhance service systems, manage customer interactions, and apply quantitative and qualitative tools to optimize operational efficiency. By combining theoretical frameworks with real-world case studies, the course prepares students to address operational challenges in services and drive organizational performance in todays competitive environment.
Recommended Textbook
Operations Management in the Supply Chain Decisions and Cases 7th Edition by Roger Schroeder
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Chapter 1: The Operations Function
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Sample Questions
Q1) Why is operations management a more encompassing term than production management?
A) Operations management is concerned with multiple products and services.
B) Operations management refers to service as well as manufacturing organizations.
C) Operations management is broader including the financing and marketing functions.
D) Operations management makes use of the tools of quantitative analysis and computer systems.
Answer: B
Q2) Decision making using analytics is viewed as
A) prescriptive (use of mathematical models to optimize decisions).
B) predictive (use of data to predict what is likely to happen).
C) descriptive (use of data to summarize the present situation).
D) all of the above.
Answer: D
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Chapter 2: Operations and Supply Chain Strategy
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Q1) Operations strategy is a
A) functional strategy.
B) business strategy.
C) divisional strategy.
D) corporate strategy.
Answer: A
Q2) How do operations strategic decisions differ for a product imitator strategy versus a product innovator strategy?
Answer:
Superior processes versus superior products. Dedicated automation versus flexible automation. Slow reaction to changes versus fast reaction to changes.
Economies of scale versus economies of scope.
Workforce involvement versus use of new product development teams.
Q3) McDonald's distinctive competence has changed over time from continuous improvement of the transformation system and brand to the unique service and supply chain transformation system.
A)True
B)False
Answer: False
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Chapter 3: Product Design
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Sample Questions
Q1) The third common phase of product development focuses on pilot production and testing.Which of the following is NOT an activity of the pilot production and testing?
A) Prototype testing to ensure performance specifications are met.
B) Finalization of process design.
C) Introduction of full-scale production and market introduction.
D) Information package finalization.
Answer: C
Q2) When marketing,engineering,and operations simultaneously develop a product,this approach is known as
A) sequential process.
B) traditional approach.
C) concurrent engineering.
D) none of the above.
Answer: C
Q3) Product design supports the business strategy.
A)True
B)False
Answer: True
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Chapter 4: Process Selection
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Sample Questions
Q1) Referring to the product-process matrix,if a company has a few major products with high demand and a jumbled flow (job shop)process,we know the company
A) has a company strategy.
B) is on the diagonal of the matrix.
C) is further in its product life cycle than its process life cycle.
D) is further in its process life cycle than its product life cycle.
Q2) Job shop operations typically use special-purpose equipment.
A)True
B)False
Q3) A machine shop is able to produce a bracket with a wide variety of hole sizes using a computer-controlled drill that quickly rotates the proper drill bit into place to meet the customer order.This is which form of mass customization?
A) Modular production
B) Fast changeover
C) Postponement
D) None of the above
Q4) What are the major cross-functional issues related to process selection decisions?
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Chapter 5: Service Delivery System Design
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Q1) The most important factor for improving employee satisfaction in the service-profit chain is
A) employee retention.
B) revenue growth.
C) internal service quality.
D) customer satisfaction.
Q2) According to the service profit chain,employees are more likely to be satisfied when management works to improve internal service quality.
A)True
B)False
Q3) The major difference between the service delivery system matrix and the product-process matrix is that service process design generally does not vary with customer volume.
A)True
B)False
Q4) High-contact services are more likely to be front-office operations,and low-contact services are more likely to be back-office operations.
A)True
B)False
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Chapter 6: Process-Flow Analysis
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Q1) A machine center can produce 175 units per day at 100% utilization.Demand is 75 units per day,and suppliers are capable of delivering raw materials to support production of 125 units per day.If demand doubles,the flow rate will be
A) 100 units.
B) 125 units.
C) 150 units.
D) 175 units.
Q2) Flow rate is
A) the same as process capacity.
B) measured in units per day.
C) useful for manufacturing but not service delivery processes.
D) the least of either supply, demand, or capacity.
Q3) Which of the following is NOT a prerequisite to process flowcharting?
A) Identifying system boundaries .
B) Identifying the relevant industry best practice
C) Identifying sequential flows
D) Identifying suppliers
Q4) A process will generally have at least one bottleneck.
A)True
B)False
Page 8
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Chapter 7: Lean Thinking and Lean Systems
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Q1) What are the five tenets of lean thinking?
In your own words,provide a road map for implementing lean thinking in a manufacturing or service operations.
Q2) Which of the following is true for takt time in a lean system?
A) Takt time should be set at greater than the average demand of the market.
B) Takt time is the period of time available for production.
C) Takt time is used to match supply and demand.
D) Takt is the Japanese word for time.
Q3) Which of the following is NOT a change associated with a lean production system?
A) Reduced inventory storage space is needed.
B) Reduced automation as lot size approaches one unit.
C) Workers take responsibility for most maintenance of the equipment they use.
D) Routine preventive maintenance time is provided between shifts.
Q4) One-touch setups could require as long as nine minutes to perform.
A)True
B)False
Q5) The Japanese term for waste is "gemba."
A)True
B)False
Q6) What are the seven forms of waste that a lean system is intended to prevent?
Page 9
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Chapter 8: Managing Quality
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Q1) Which of the following statements concerning ISO 9000 is FALSE?
A) ISO 9000 standards are meant to describe how a company should go about ensuring quality.
B) ISO 9000 standards specify that a company must have a quality system in place that documents procedures, policies, and training.
C) A quality manual and careful record keeping are integral elements of ISO 9000 documentation.
D) An ISO 9000 registered company signifies the company produces products of the highest quality.
Q2) A product's conformance to specifications
A) is in response to customers' needs.
B) determines sales price to the customer.
C) is defined as continuity of service to the customer.
D) is independent of the quality of design.
Q3) Describe the relationship between control costs,failure costs,and overall levels of quality.
Q4) ISO 9000 standards guarantee that a product or service has no defects.
A)True
B)False
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Chapter 9: Quality Control and Improvement
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Sample Questions
Q1) Lean projects are usually simpler than six sigma projects.
A)True
B)False
Q2) Suppose that a process is in a state of control and we have the following information for a human weights measurement study: Average weight of males in the study = 150 lbs.
Average range of the male weights = 100 lbs.
A<sub>2</sub> = .577
D<sub>3</sub> = 0
D<sub>4</sub> = 2.115
What is the upper control limit for the average (mean)chart?
A) 207.7 lbs
B) 92.3 lbs
C) 361.5 lbs
D) 175 lbs
Q3) Surveys indicate that p charts are used more frequently than average (mean)and range charts are used.
A)True
B)False
Q4) List and explain the five steps of the DMAIC process.
Page 11
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Chapter 10: Forecasting
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Sample Questions
Q1) A qualitative forecast would most likely be used for A) aggregate planning.
B) scheduling.
C) process design.
D) inventory management.
Q2) Which of the following regarding linear regression is correct?
A) Linear regression is a form of exponential smoothing.
B) Linear regression is the most commonly used qualitative method.
C) Linear regression requires use of an independent variable to make estimates.
D) None of the above are correct.
Q3) A qualitative forecast would be most likely used for A) aggregate planning.
B) production scheduling.
C) inventory management.
D) facilities expansion.
Q4) Describe each of the five demand components in a time series (of past demand data).
Q5) The Box-Jenkins method requires 12 past data points. A)True B)False
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Chapter 11: Capacity Planning
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Sample Questions
Q1) Aggregate planning costs do NOT include
A) hiring and layoff costs.
B) part-time labor costs.
C) subcontracting costs.
D) inventory ordering costs.
Q2) The type of strategy used with respect to the amount of capacity cushion when "the cost or consequence of running out is approximately in balance with the cost of excess capacity" is called:
A) small cushion.
B) large cushion.
C) moderate cushion.
D) none of the above.
Q3) A small cushion strategy is appropriate when capacity is inexpensive.
A)True
B)False
Q4) Effective capacity is
A) also called theoretical capacity.
B) base capacity plus time for maintenance, breaks, and absenteeism.
C) the amount of capacity that can be used in planning for actual output.
D) all of the above.
Page 13
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Chapter 12: Scheduling Operations
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Sample Questions
Q1) Which of the following statements is NOT true about the theory of constraints (TOC)?
A) It was developed by Goldratt in his book "The Goal."
B) Operations should help to increase sales, as long as capacity is available.
C) Identifying the bottleneck in a process is critical for improving the overall flow through the process.
D) Increased utilization of a non-bottleneck would improve the operating performance in a factory.
Q2) According to Goldratt,
A) an hour lost at the bottleneck is an hour lost for the entire system.
B) a product coming out of a non-bottleneck is precious and should not be wasted.
C) maximizing the efficiency of all resources would generate money for the company.
D) utilization, productivity, and operating expenses are the three vital metrics of a process.
Q3) If the critical ratio of a job is greater than 1,the job is late.
A)True
B)False
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Chapter 13: Project Planning and Scheduling
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Sample Questions
Q1) The longest series of connections in the project network from the start to the end of the activities is also referred to as
A) the action path.
B) the critical path.
C) the master schedule.
D) float or slack.
Q2) Project managers can accept some (minimal)slack on the project critical path.
A)True
B)False
Q3) Project managers' work includes
A) planning, scheduling, control, and closing.
B) planning, scheduling, starting, and ending.
C) scheduling, control, starting, and ending.
D) none of the above.
Q4) The information calculated from the forward and backward pass can be used for A) identifying the critical path.
B) calculating slack.
C) determining the final completion date of the project.
D) all of the above.
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Chapter 14: Independent Demand Inventory
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Q1) A decrease in an item's lead time will increase the amount of safety stock required to maintain a constant service level.
A)True
B)False
Q2) Demand for an item is 10 units per week,and delivery lead time is 3 weeks.The safety stock is known to be 11 units.Using a Q system,what is the reorder point (R)?
A) Less than 20.
B) 30.
C) 41.
D) None of the above.
Q3) Dependent demand items are subject to market forces and often have predictable demand patterns.
A)True
B)False
Q4) Which of the following is NOT a purpose of inventory?
A) To protect against uncertainties.
B) To allow economic production of batches.
C) To provide for transit.
D) To decrease obsolescence.
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Chapter 15: Materials Requirements Planning and ERP
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Sample Questions
Q1) The master schedule is prepared for product families.
A)True
B)False
Q2) A requirements-based system derives orders from
A) customer requests.
B) forecast.
C) bill of materials.
D) master schedule.
Q3) The parts explosion results in the following outputs:
A) purchase orders and S&OP (aggregate planning).
B) purchase orders and bill of materials.
C) purchase orders and shop orders.
D) shop orders and inventory orders.
Q4) When a company uses an ERP system,the different functional areas of the business will share a common database.
A)True
B)False
Q5) The master schedule should be frozen inside the production lead time. A)True
B)False
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Chapter 16: Supply Chain Management
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Sample Questions
Q1) When an automobile manufacturer purchases a firm that produces wiring harnesses,this is an example of
A) major process redesign.
B) forward integration.
C) backward integration.
D) supply chain system change.
Q2) Which of the following is NOT a form of structural change of the supply chain?
A) Forward and backward integration.
B) Creating cross-functional teams.
C) Major process simplification.
D) Outsourcing logistics to a third party.
Q3) How can a firm design and develop a more resilient supply chain?
Q4) Backward or upstream supply chain flows include
A) information.
B) monetary payments.
C) materials. .
D) all of the above.
Q5) List and define the three ways to change supply chain systems.
Q6) List and define the four ways to change supply chain structure.
Q7) Describe causes of the bullwhip effect.
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Chapter 17: Sourcing
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Sample Questions
Q1) The first step in the purchasing cycle is to
A) conduct spend analysis.
B) create specifications or descriptions of item or service needed.
C) create a list of potential suppliers of the product or service.
D) send out or post requests for quotations or requests for proposals.
Q2) Which of the following statements is NOT correct?
A) A strong purchasing function requires a bidding process for all purchases made.
B) A request for quotation (RFQ) asks for product, procurement terms, and price information.
C) A reverse auction is a type of RFQ process.
D) A request for proposal asks suppliers how they would solve a problem.
Q3) Which of the following indicates an item to be a good candidate for outsourcing?
A) The item is important to the company's competitive advantage.
B) The item is a standard product also sold to many other companies.
C) The item technologically advanced and will require close control.
D) All of the above.
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Chapter 18: Global Logistics
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Q1) Which of the following does NOT represent one of the critical logistics decisions?
A) The trade-offs between transporting product by rail or waterway (e.g., barge).
B) Transitioning from traditional warehouses to distribution centers.
C) Insourcing logistics through company-owned aircraft.
D) Using market surveys to estimate future demand.
Q2) Complete the following definition of logistics according to the Council of Supply Chain Management Professionals: Logistics plans,implements,and controls the forward and reverse flows and storage of goods and related information between the point of origin and consumption
A) in order to meet the firm's requirements.
B) in order to meet customer requirements.
C) in order to meet regulatory requirements.
D) in order to provide the lowest-cost solution.
Q3) The chief advantage of shipping by truck is
A) lower cost.
B) the ability to consolidate shipments.
C) location flexibility.
D) the ability to ship less-than-truckload amounts.
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