Service Operations Management
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Course Introduction
Service Operations Management focuses on the design, implementation, and optimization of processes that deliver services to customers in various industries such as healthcare, hospitality, finance, and retail. This course examines the unique characteristics of services, strategies for managing capacity and demand, quality management, service process design, and the role of technology in enhancing service delivery. Students learn to apply analytical tools and frameworks to improve efficiency, service quality, customer satisfaction, and operational performance, while also addressing challenges such as service recovery, workforce management, and customization.
Recommended Textbook
Introduction to Operations and Supply Chain Management 3rd Edition by Cecil
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Page 2
B. Bozarth
Chapter 1: Introduction to Operations and Supply Chain Management
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Sample Questions
Q1) Efforts to improve cooperation among firms in the supply chain can be characterized as:
A)globalization.
B)domestic focus.
C)relationship management.
D)electronic commerce.
Answer: C
Q2) Which of the following is NOT a flow typically found in a supply chain?
A)physical
B)information
C)monetary
D)risk
Answer: D
Q3) ________ is the term that describes efforts to improve operations by increasing supply chain members' willingness to cooperate.
Answer: Relationship management
Q4) Operations can be considered a transformation process that takes things like materials,labor,and capital,called ________ and transforms them into goods or services,called ________.
Answer: inputs,outputs
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Chapter 2: Operations and Supply Chain Strategies
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Sample Questions
Q1) If a logistics firm consistently makes deliveries within the agreed upon delivery window,they are exhibiting delivery reliability.
A)True
B)False
Answer: True
Q2) Performance dimensions on which customers expect a minimum level of performance are called:
A)order winners.
B)minimum performers.
C)recommended daily allowances.
D)order qualifiers.
Answer: D
Q3) Which of the following is NOT a generic performance dimension of operations and supply chain activities?
A)quality
B)time
C)flexibility
D)social responsibility
Answer: D
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Page 4
Chapter 3: Process Choice and Layout Decisions in Manufacturing and Services
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Sample Questions
Q1) A manager deciding where 6 departments could be located in a six room office building has over 500 possible arrangements.
A)True
B)False
Answer: True
Q2) The shorter the required takt time,the more workstations that will be required to balance a production line.
A)True
B)False
Answer: True
Q3) An advantage of a production line process is:
A)the volume of output needed to justify the investment.
B)the degree of flexibility of the process.
C)the per unit cost of items produced on the line.
D)the range of output typically produced on such a process.
Answer: C
Q4) Cycle time is the sum of all of the task times.
A)True
B)False
Answer: False
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Chapter 4: Business Processes
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Sample Questions
Q1) A set of tasks or activities that addresses the main value-added activities of an organization is a:
A)process.
B)primary process.
C)support process.
D)development process.
Q2) Your university sends a contingent of top-ranking officials to Las Vegas hotels to study ways to improve dormitory living conditions.This is an example of process benchmarking.
A)True
B)False
Q3) A Six Sigma Champion is a full-time Six Sigma expert that is responsible for training,mentoring,deployment,and results.
A)True
B)False
Q4) A process that seeks to improve the performance of main value-added and necessary,non value-added activities is a(n)________ process.
Q5) What is the general procedure for developing a swim lane process map?
Q6) What is benchmarking and how do the two types differ?
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Chapter 5: Managing Quality
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Sample Questions
Q1) In the Zero Defects view of the total cost of quality,the minimum value of the total cost curve is closer to the y axis (the cost axis)than it is in the traditional view.
A)True B)False
Q2) With everything else held constant,a sampling plan with c=1 will have a lower producer's risk than a sampling plan with c=2.
A)True B)False
Q3) Taguchi defines quality in terms of:
A)parts per million. B)losses.
C)lot tolerance percent defective.
D)acceptable quality levels.
Q4) Based on W.Edwards Deming's Fourteen Points for Management,we can safely conclude he would have been a strong advocate for a Zero Defects promotion. A)True B)False
Q5) A(n)________ cost is incurred by a company to assess its quality levels
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Chapter 6: Managing Capacity
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Sample Questions
Q1) Jimbo plans to charge the same amount for tuition regardless of where he decides to establish his school.If he believes that 700 students will matriculate each year,which location will result in the lowest total cost?
A)Location A
B)Location B
C)Location C
D)Location D
Q2) A bottling machine has a theoretical capacity of 100 bottles per minute.During every ten hour shift it operates continuously but is shut down once for 30 minutes for cleaning,inspection,and lubrication.What is its rated capacity?
A)100 bottles/minute
B)95 bottles/minute
C)90 bottles/minute
D)85 bottles/minute
Q3) Capacity is the capability of a worker,machine,work center,plant,or organization to produce output per time period.
A)True
B)False
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Chapter 7: S Advanced Waiting Line Theory and Simulation
Modeling
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Sample Questions
Q1) The only way to enter Jellystone Park is past Ranger Smith,who checks your camping gear and warns you about the bears in the park.The next step of the entrance process is to pay your site fee to Ranger Dwayne.This is a single ________ system.
Q2) The department chair is out of town at a conference and you,as the assistant department chair,find yourself besieged by dozens of students needing permission to get into a very popular (but closed)class.Student arrivals are governed by the Poisson distribution with a mean of 10 minutes.Telling the students that they can't get into the closed class takes about 3 minutes,and this average is exponentially distributed.About how many students are waiting outside your office door?
A)0.13 students
B)0.43 students
C)1.25 students
D)2.25 students
Q3) A waiting line cannot be both multiple-channel and multiple-phase.
A)True
B)False
Q4) A process is ________ if the outcome of one trial does not have any impact on the next trial.
Page 9
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Chapter 8: Supply Management
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Sample Questions
Q1) The bulk of insourcing costs are usually ________ costs.
Q2) Identify the major trends in supply management and their impact from a strategic perspective.
Q3) Top executives name ________ as a significant threat to their companies' revenue streams.
Q4) Which of these is a direct cost associated with outsourcing?
A)direct material
B)direct labor
C)variable overhead
D)price from invoice
Q5) Firms do not compete only against global competitors,but against:
A)their suppliers.
B)themselves.
C)the customers of their competitors.
D)their competitors' supply chains.
Q6) Cross sourcing is a strategy in which two suppliers are used for the same purchased product or service.
A)True
B)False
Q7) Define outsourcing and discuss its advantages and disadvantages.
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Chapter 9: Logistics
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Sample Questions
Q1) A firm that is interested in consistent on-time delivery would probably design their transportation and warehousing system to include:
A)air transportation with a spot stock warehouse.
B)rail transportation with a consolidation warehouse.
C)water transportation with a hub and spoke warehouse.
D)pipeline transportation with a postponement warehouse.
Q2) What are the three main categories of logistics information systems? What function does each serve?
Q3) A(n)________ uses more than one transportation mode through physical,information,and monetary flows that are as seamless as possible.
Q4) What percent of North American gross domestic product is accounted for by logistics?
A)almost 8 percent
B)almost 12 percent
C)almost 16 percent
D)almost 20 percent
Q5) ________ is a form of warehousing in which smaller outgoing shipments are created from large incoming shipments.
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Chapter 10: Forecasting
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Sample Questions
Q1) Use a three period weighted moving average with W<sub>t</sub> = 0.7,W<sub>t-1</sub> = 0.2,and W<sub>t</sub><sub>-2</sub> = 0.1 to forecast demand for July.
A)235.2
B)195.6
C)158.8
D)180.4
Q2) Multiple regression is used when the forecaster believes that more than one independent variable should be used to predict the variable of interest.
A)True
B)False
Q3) What is a collaborative planning,forecasting,and replenishment system and might it benefit those who choose to use it?
Q4) A seasonal index less than 1.0 means that the model is overforecasted.
A)True B)False
Q5) Dividing actual demand by the model's forecast yields an index that can be used to adjust for ________ in the data.
Q6) ________ is unpredictable movement from one time period to the next
Page 12
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Chapter 11: Sales and Operations Planning Aggregate Planning
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Sample Questions
Q1) An organization that meets seasonal swings in demand by hiring and then laying off temporary workers while maintaining a few full-time permanent workers is employing a(n)________ strategy.
Q2) The standard equation used by Gigi Enterprises for production planning is Production = Demand.The sales and operations planner is probably using: A)a mixed production approach.
B)a level production approach.
C)a chase production approach.
D)a bottom-up planning approach.
Q3) What is the purpose of S&OP and what takes place at the strategic,tactical,and detailed planning and control levels?
Q4) Last month,the sales and operations plan showed projections from January through April.This month,the sales and operations plan shows projections from February through May.This is an example of a rolling planning horizon.
A)True
B)False
Q5) A hotel using yield management would ________ prices if demand is higher than expected only if the expected result is ________.
Page 13
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Chapter 12: Managing Inventory Throughout the Supply Chain
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Sample Questions
Q1) The excess cost of an item is the profit you would have made on it.
A)True
B)False
Q2) In order to find the lowest cost ordering policy in a quantity discount model,you must compare the holding cost,ordering cost,and the cost of goods for various order quantities.
A)True
B)False
Q3) A hospital's biomedical repair shop uses a 4-week periodic system to maintain the inventory on the blood pressure cuff repair parts.They use an average 40 adult arm cuffs with a standard deviation of 6 cuffs every four weeks.Cuffs aren't the most critical item they carry,but the manager would like to avoid the embarrassment of a stockout at least 95% of the time.What should their restocking level be?
A)40 cuffs
B)46 cuffs
C)50 cuffs
D)52 cuffs
Q4) Describe any four types of inventory and the drivers that spur their need.
Page 14
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Chapter 13: Managing Production Across the Supply Chain
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Sample Questions
Q1) ________ translates the master schedule for final products into detailed requirements.
Q2) The estimated level of an end item at the end of each planning period,whether the period is a week or a month is the ________.
Q3) For a given job,the amount of processing time remaining divided by the amount of time until the job is due is its ________.
Q4) Since the booked orders figure represents actual customer demand in a master schedule,that value is always less than or equal to forecasted demand.
A)True
B)False
Q5) MRP nervousness refers to the notion that a small change at the top of a bill of material can have drastic effects on items farther down the bill of material.
A)True
B)False
Q6) MRP uses backward scheduling.
A)True
B)False
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Chapter 14: S Supply Chain Information Systems
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Sample Questions
Q1) Logistics information systems that support tactical planning efforts by allocating fixed logistics capacity in the best possible way given business requirements are known as:
A)decision support systems.
B)network design applications.
C)warehouse management and transportation execution systems.
D)warehouse and transportation planning systems.
Q2) At one time,if an organization wanted to automate using a computer system,they had to develop the program on their own.Today,there is software available to perform virtually every business function although most of them will not conform exactly to what a company needs.Describe two software tools that can be used for business process analysis and design.
Q3) APICS defines a(n)________ as a set of interrelated components that collect,process,store,and distribute information to support decision making,coordination,and control in an organization.
Q4) All information systems are computer-based.
A)True
B)False
Q5) Warehouse and transportation planning systems support ________ planning efforts.
Page 16
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Chapter 15: Jitlean Production
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Sample Questions
Q1) Companies that use MRP and kanban together use the ________ of MRP and the ________ of kanban.
Q2) In a single-card kanban system:
A)the single card is the production card.
B)the empty container serves as the production card.
C)the single card is the move signal.
D)None of the above is correct in a single-card system.
Q3) Just-in-time production is also referred to as ________.
Q4) Just-in-time production is the same thing as Lean production.
A)True
B)False
Q5) Since a JIT manufacturer has very little inventory,it is vital that all incoming parts receive a thorough inspection.
A)True
B)False
Q6) What is the Lean perspective on inventory?
Q7) Any activity that does not add value to the good or service in the eyes of the consumer is ________.
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Q8) The number of kanbans in a production system is inversely related to the
Chapter 16: Managing Projects
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Sample Questions
Q1) A project is a one-time undertaking designed to achieve a particular organization goal.
A)True
B)False
Q2) PERT is an acronym meaning:
A)Project Evaluation and Review Technique.
B)Project Execution and Review Technique.
C)Program Evaluation and Review Technique.
D)Plan Estimation and Review Technique.
Q3) Key points in a project,such as when a major activity or phase is completed,are referred to as lodestones.
A)True
B)False
Q4) An expectation that a new building's foundation would be poured and cured by the end of the year is an example of a(n):
A)activity.
B)scope.
C)milestone.
D)precedence.
Q5) An activity's length added to its early start time yields the ________.
Page 18
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Chapter 17: Developing Products and Services
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Sample Questions
Q1) What are the four reasons that a company might develop new products and services?
Q2) What is the Six Sigma approach to new product and process development? What takes place in each step?
Q3) Quality function deployment can be used to show linkages between customer requirements and product characteristics.
A)True
B)False
Q4) The oil could be changed at the push of a button without dirtying your hands or peering underneath the new Chrysler Crepitus,an important achievement in their Design for Six Sigma program.
A)True
B)False
Q5) The relationship between product functionality and product cost is quantified as ________.
Q6) What are the advantages for a manufacturer of parts standardization and modular architecture and how are they related?
Q7) What are robust design,testability,and serviceability and how are they related?
Q8) What is value analysis and how is it typically conducted?
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