Service Operations Management Practice Exam
Course Introduction
Service Operations Management examines the design, delivery, and improvement of services across various industries, focusing on the unique challenges of managing operations where the core product is intangible and customer participation is high. The course covers topics such as service process design, capacity planning, demand forecasting, quality management, service innovation, and the role of technology in service delivery. Through case studies and real-world examples, students learn strategies to optimize resources, enhance customer experience, and drive operational efficiency, preparing them to effectively manage and innovate in dynamic service environments.
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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) U.S.companies can become globally competitive by emphasizing the strategic importance of operations.
A)True
B)False
Answer: True
Q2) Productivity increases enable a nation to raise its standard of living.
A)True
B)False Answer: True
Q3) A major challenge and opportunity for many firms is the globalization of the supply chain.
A)True
B)False Answer: True
Q4) Positioning is a step in strategy formualtion that compares core competencies and order winners.
A)True
B)False Answer: True
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Chapter 2: Quality Management
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Sample Questions
Q1) Which of the following quality tools display major causes of poor quality on a graph?
A)Process flow chart
B)Fishbone diagram
C)Histogram
D)Scatter diagram
Answer: B
Q2) Two team approaches to improvement are quality circles and process improvement teams.
A)True
B)False Answer: True
Q3) Deming believed that only employees are responsible for improving quality.
A)True
B)False
Answer: False
Q4) Today total quality management has been displaced by quality management systems.
A)True
B)False Answer: True
Page 4
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Chapter 3: Statistical Quality Control
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Sample Questions
Q1) A c-chart monitors the number of defects in small samples.
A)True
B)False
Answer: True
Q2) In general,a process is considered to be in control for all the following conditions except
A)no points are outside the control limits
B)all points are above the centerline
C)the points are randomly distributed following a normal population
D)no pattern exists in the plotted points no evidence of a run)
Answer: B
Q3) All processes contain a certain amount of variation in their output.
A)True
B)False
Answer: True
Q4) One reason some companies fail in their attempt to apply statistical process control is lack of training.
A)True
B)False
Answer: True
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Chapter 4: Product Design
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Sample Questions
Q1) Products assembled in modules can be easier to repair and maintain.
A)True
B)False
Q2) Creating a preliminary design that can be quickly tested and then either discarded or further refined is referred to as
A)benchmarking
B)rapid prototyping
C)concurrent design
D)perceptual mapping
Q3) The quality loss function measures the cost of designing robust products.
A)True
B)False
Q4) Using a cross-functional team to design new products is known as concurrent design.
A)True
B)False
Q5) Value analysis is often utilized by a multifunctional product design team as part of design review.
A)True
B)False
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Chapter 5: Service Design
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Sample Questions
Q1) Channels refers to the number of parallel servers in a waiting line system.
A)True
B)False
Q2) Do waiting lines only form when the service operation is understaffed? Explain?
Q3) A grocery store is an example of a
A)Service factory
B)Mass service
C)Service shop
D)Professional services
Q4) 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
Q5) How are waiting line costs and service quality related?
Q6) Briefly describe the traditional cost relationship in waiting line analysis.
Page 7
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Chapter 6: Processes and Technology
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Sample Questions
Q1) A process is a group of unrelated tasks with specific inputs and outputs.
A)True
B)False
Q2) The ease of adjusting resources in response to changes in demand defines firm's
A)vertical integration
B)process flexibility
C)customer involvement
D)capital intensity
Q3) All the following are factors influencing the outsourcing decision except A)capacity.
B)expertise.
C)quality.
D)product variety.
Q4) A print shop is an example of which of the following process choices?
A)project
B)batch production
C)continuous production
D)mass production
Q5) List some non-economic factors that can influence a firm's outsourcing decision.
Page 8
Q6) What is a process strategy and how does it affect the firm?
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Chapter 17: Scheduling
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Sample Questions
Q1) The sequencing rule that will minimize average job completion time for a set number of jobs to be processed on one machine is
A)first-come-first served (FCFS).
B)longest processing time (LPT).
C)shortest process time (SPT).
D)due date (DDATE).
Q2) What is the difference between infinite scheduling and finite scheduling?
Q3) The time required for a job to move through the system is referred to as flow time.
A)True
B)False
Q4) Why is monitoring an important component of job shop scheduling?
Q5) The scheduling function for mass production and job shop production are basically the same.
A)True
B)False
Q6) Job shop scheduling is usually performed by skilled machine operators.
A)True
B)False
Q7) What makes scheduling so difficult in a job shop?
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Chapter 7: Capacity and Facilities
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Sample Questions
Q1) The balance delay is calculated by subtracting efficiency in percent from one hundred.
A)True
B)False
Q2) A company has a target output rate of 40 units every five 5)hours when its line is fully operational.To achieve this target the firm must have a cycle time of
A)more than 12.50 minutes
B)more than 10.00 minutes
C)7.5 minutes or less
D)8 minutes or less
Q3) Line balancing is constrained by precedence requirements and cycle time restrictions.
A)True
B)False
Q4) Which of the following is not an "area" of advantage of cellular layouts?
A)material handling
B)setup time
C)capital investment
D)control
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Chapter 8: Human Resources
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Sample Questions
Q1) Determining worker capabilities and responsibilities for a job is known as worker analysis.
A)True
B)False
Q2) A graph that reflects the fact that repetition of tasks improves worker performance is referred to as a learning curve.
A)True
B)False
Q3) Which of the following is not a true statement regarding learning curves?
A)learning curves can help managers project labor requirements
B)learning curves are not affected by product modifications
C)learning curves are useful in developing production scheduling plans
D)learning curves can help make overall product cost estimates
Q4) A 90% learning curve indicates
A)a 90% increase in processing time per unit as output doubles.
B)a 90% decrease in processing time per unit as output doubles.
C)a 10% increase in processing time per unit as output doubles.
D)a 10% decrease in processing time per unit as output doubles.
Q5) Briefly describe the principles of scientific management.
Q6) List 5 of the attributes of good job design identified by Frederick Herzberg.
Page 11
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Chapter 9: Project Management
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Sample Questions
Q1) Earned value analysis reports a project's performance by tracking its forecasted completion date and anticipated budget variations.
A)True
B)False
Q2) The earliest start time for an activity is at time zero.
A)True
B)False
Q3) Using Table 9.3,the earliest finish (EF)time for activity C is
A)4 days.
B)6 days.
C)10 days.
D)11 days.
Q4) A ______________ breaks down a project into components,subcomponents,activities,and tasks.
A)work breakdown structure (WBS)
B)scope statement
C)responsibility assignment matrix (RAM)
D)organizational breakdown structure (OBS)
Q5) Briefly describe the makeup of the project management team.
Q6) Briefly discuss project management and what it involves.
Page 12
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Chapter 10: Supply Chain Management: Strategy and Design
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Sample Questions
Q1) The fraction of orders filled by a distribution center or warehouse within a specific time period is referred to as the
A)inventory turnover.
B)inventory supply time.
C)fill rate.
D)aggregate orders processed.
Q2) What is the bullwhip effect and how does it occur?
Q3) _______________________ is not a perceived advantage of radio frequency identification RFID)technology.
A)Loss of personal privacy
B)Reduced stock-outs
C)Prevention of fraud or theft
D)Lower distribution costs
Q4) Because value chain and supply chain have similar meanings they are often used interchangeably.
A)True
B)False
Q5) Suppliers and customers rarely participate in the design of a supply chain. A)True
B)False
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Chapter 11: Global Supply Chain Procurement and Distribution
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Sample Questions
Q1) List several of the advantages associated with outsourcing.
Q2) Package delivery is best suited to fast and reliable shipments of large,bulky items.
A)True
B)False
Q3) Warehouse management systems are often used to run the day-to-day operations of a distribution center.
A)True
B)False
Q4) Most favored-nation (MFN)status is an agreement where members of the WTO extend to other members the most favorable treatment given to any trade partner. A)True
B)False
Q5) Postponement involves delaying shipments from suppliers until demand is more certain.
A)True B)False
Q6) Identify some of the obstacles to global supply chain management.
Q7) List and discuss some of the forces driving globalization.
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Chapter 12: Forecasting
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Sample Questions
Q1) Explain how and why time series and regression forecasting methods differ.
Q2) Because of advances in technology,many service industries no longer require accurate forecasts to provide high quality service.
A)True
B)False
Q3) A gradual,long-term up or down movement of demand is called a trend.
A)True
B)False
Q4) If the forecast for July was 3300 and the actual demand for July was 3250,then the exponential smoothing forecast for August using = 0.20 is A)3300.
B)3290.
C)3275. D)3250.
Q5) Qualitative forecasts use mathematical techniques and statistical formulas. A)True
B)False
Q6) Explain the difference between qualitative and quantitative forecasting methods.
Q7) Discuss the importance of accurate forecasts in supply chain management.
Page 15
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Chapter 13: Inventory Management
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Q1) Explain the relationship between ordering costs and carrying costs in the economic order quantity (EOQ)model.
Q2) The ABC classification system is a method for classifying inventory based on the percentage of total value and the percentage of total quantity.
A)True
B)False
Q3) Annual demand for a product is 40,000 units.The product is used at a constant rate over the 365 days the company is open every year.The annual holding cost for the product is estimated to be $2.50 per unit and the cost of placing each order is $125.00.If the company orders according to the economic order quantity (EOQ)formula then its average inventory level for this product would be
A)20,000 units.
B)10,000 units.
C)2,500 units.
D)1,000 units.
Q4) Make a list of the basic steps involved in using the quantity discount model and discuss each.
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Chapter 13: Operational Decision-Making Tools: Simulation
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Sample Questions
Q1) In what ways is simulation relevant to analyzing production problems?
Q2) As a simulation model becomes more complex,using a computer application is virtually impossible.
A)True
B)False
Q3) An advantage of using a computer versus a manual approach when performing a simulation is that it often takes only seconds versus hours to reach a steady-state result.
A)True
B)False
Q4) The ______________ technique selects numbers randomly from a probability distribution for use in a trial run of a simulation.
A)Computer World
B)Monaco
C)steady-state
D)None of the above.
Q5) Simulation is a popular decision-making tool that provides a solution to any type of problem
A)True
B)False
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Chapter 14: Operational Decision-Making Tools: Linear Programming
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Sample Questions
Q1) In general,the objective function for linear programming problems in operations is one of minimizing costs.
A)True
B)False
Q2) Linear programming problems with two decision variables can be solved graphically.
A)True
B)False
Q3) The feasible solution space contains the values for the decision variables that satisfy the majority of the linear programming model's constraints.
A)True
B)False
Q4) The objective function is a linear relationship that either minimizes or maximizes some value.
A)True
B)False
Q5) How is linear programming useful to an operations manager?
Q6) Briefly define the components that comprise a linear programming model.
Q7) What is meant by the term "shadow price" in linear programming?
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Chapter 14: The Sales and Operations Planning Process
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Q1) One objective of sales and operations planning is to develop a companywide game plan to satisfy production.
A)True
B)False
Q2) Financial constraints are one of the major inputs of the sales and operations planning process.
A)True
B)False
Q3) Briefly discuss the two primary objectives of aggregate planning.
Q4) An economic strategy for adjusting demand can include adjusting capacity or managing demand.
A)True
B)False
Q5) A chase demand strategy is one of several alternatives available for managing demand.
A)True B)False
Q6) Overtime and undertime are common strategies for adjusting demand.
A)True B)False
Page 19
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Chapter 15: Resource Planning
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Q1) The application modules that comprise the ERP system are designed to support only customer relationship management processes.
A)True
B)False
Q2) When is it appropriate to use material requirements planning (MRP)?
Q3) What is the master production schedule (MPS)and what role does in play in the material requirements planning (MRP)process?
Q4) What is a bill-of-material?
Q5) Capacity requirements planning (CRP)projects the load from a given material plan onto the capacity of a system.
A)True
B)False
Q6) Single-source ERP systems are often easier to integrate than systems built using the best-in-breed approach.
A)True
B)False
Q7) Lot sizing rules are used in MRP to determine work or purchase order quantities.
A)True
B)False
20
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Chapter 16: Lean Systems
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Sample Questions
Q1) Which of the following is not a basic element of lean production?
A)flexible resources
B)pull system
C)repetitive production
D)small lot production
Q2) Which of the following is not a typical component of lead time?
A)processing time
B)maintenance time
C)waiting time
D)setup time
Q3) Poka-yolk is a Japanese term used to describe the removal of waste in a lean production system.
A)True
B)False
Q4) Manufacturing cells are comprised of similar machines to process a family of parts.
A)True
B)False
Q5) What is a kanban and how is it used in a pull system?
Q6) What are the benefits of small-lot production?
21
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Chapter 18: Operational Decision-Making Tools: Decision Analysis
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Sample Questions
Q1) 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
Q2) Quantitative methods are tools available to operations managers to help make a decision or recommendation.
A)True
B)False
Q3) Quantitative methods are tools available to operations managers to help make a decision but not a recommendation.
A)True
B)False
Q4) 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
Q5) What is decision analysis?
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Chapter 19: Operational Decision-Making Tools: Acceptance Sampling
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Sample Questions
Q1) The average outgoing quality (AOQ)is a measure of the expected number of defective items that will pass on to the customer with the sampling plan selected.
A)True
B)False
Q2) With acceptance sampling,a lot is either rejected or accepted depending on the number of defects found in a sample.
A)True
B)False
Q3) An operating characteristics (OC)curve is a graph that measures the probability of accepting a lot with no defective items.
A)True
B)False
Q4) 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.
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Chapter 20: Decision-Making Tools: Facility Location Models
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Sample Questions
Q1) Railroad access is frequently a factor in locating a manufacturing plant.
A)True
B)False
Q2) Inadequate infrastructure at a given location increases supply chain costs and decreases customer service.
A)True
B)False
Q3) The load-distance technique evaluated different locations based on load and transport distance.
A)True
B)False
Q4) The cost and availability of labor is an important factor in a location decision.
A)True
B)False
Q5) Transportation costs are generally a function of distance,weight,and time.
A)True
B)False
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Chapter 21: Operational Decision-Making Tools: Work Measurement
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Sample Questions
Q1) Work sampling is a technique for determining the proportion of time a worker or machine is idle.
A)True
B)False
Q2) Workers often do not like to be the subject of a time study and are sometimes unwilling to cooperate.
A)True
B)False
Q3) In a time study the standard time is calculated as
A)the normal cycle time plus the allowance factor
B)the normal cycle time minus the allowance factor
C)the normal cycle time divided by (1 + allowance factor)
D)the normal cycle time multiplied by (1 + allowance factor)
Q4) The normal time to perform a job is calculated by dividing the elemental average by the standard time.
A)True B)False
Q5) Work sampling tends to be more disruptive on the workplace than time studies. A)True B)False
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