

Industrial Engineering Test Preparation
Course Introduction
Industrial Engineering is a multidisciplinary field focusing on the optimization of complex processes, systems, or organizations by integrating people, materials, information, equipment, and energy. This course provides students with foundational knowledge in the design, improvement, and installation of integrated systems for increased efficiency, productivity, and quality in both manufacturing and service industries. Core topics include operations research, production planning, quality management, ergonomics, supply chain management, and systems engineering, preparing students to analyze and solve problems using a holistic, data-driven approach to improve organizational performance.
Recommended Textbook
Operations Management 5th Canadian Edition by William J. Stevenson
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26 Chapters
2273 Verified Questions
2273 Flashcards
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Page 2

Chapter 1: Introduction to Operations Management
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63 Verified Questions
63 Flashcards
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Sample Questions
Q1) Which of the following is not true about the systems approach?
A) It recognizes the importance of taking into account the impact on all parts of the system.
B) It emphasizes interrelationships among subsystems.
C) It concentrates on efficiency within subsystems.
D) It becomes essential whenever something is being redesigned or improved.
E) The objectives of the whole take precedence over those of any one part.
Answer: C
Q2) The three primary functions that exist in most business organizations are:
A) manufacturing, production, and operations.
B) operations, marketing, and finance.
C) operations, accounting, and marketing.
D) operations, production, and finance.
E) none of the choices are correct.
Answer: B
Q3) Effectiveness refers to achieving intended goals whereas efficiency refers to minimizing cost and time.
A)True
B)False
Answer: True
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Chapter 2: Competitiveness, Strategic Planning, and Productivity
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Sample Questions
Q1) Which of the following is not one of the competitive priorities organizations emphasize as the basis of competing with one-another?
A) Cost
B) Quality
C) Product duplication
D) Flexibility
E) Delivery reliability Answer: C
Q2) Labour costs are included as one of the inputs in all productivity measures.
A)True
B)False Answer: False
Q3) Workers are the main determinant of productivity.
A)True
B)False
Answer: False
Q4) Labour productivity is one example of a multifactor productivity measurement. A)True
B)False Answer: False
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Chapter 3: Demand Forecasting
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Sample Questions
Q1) Centred moving averages (CMA)is a better way to compute seasonal relatives than using a simple moving average if there is a linear trend in a time series.
A)True
B)False
Answer: True
Q2) Forecasts for groups of items tend to be less accurate than forecasts for individual items because forecasts for individual items are not subject to as many influencing factors.
A)True
B)False Answer: False
Q3) Increasing the number of data points included in a moving average will result in a forecast that is smoother but less responsive to changes.
A)True
B)False
Answer: True
Q4) What is the centred moving average for each season?
Answer: Spring 26; Summer 18; Fall 34; Winter 50
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Page 5

Chapter 4: A: Product Design
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Sample Questions
Q1) Manufacturability,i.e.ease of fabrication or assembly,is a key concern in product design because of its impact on cost,productivity,and quality.
A)True
B)False
Q2) The stage in the product life cycle where companies attempt to prolong a product's useful life by improving its reliability or reducing costs is:
A) incubation.
B) growth.
C) maturity.
D) saturation.
E) decline.
Q3) Apple created the iPod and thus developed a personal portable stereo market for digitally recorded music.This was an example of which approach to finding new product ideas?
A) Listening to market complaints
B) Gaps in the market
C) Exploring niche markets
D) Using new technology
E) Creating new market space
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Page 6

Chapter 4: B: Product Design
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Sample Questions
Q1) A component in a product can be considered an "independent" component if it has no relation to whether any other component in the product functions or not.
A)True
B)False
Q2) A certain product is comprised of two components:
X and Y.Component X has a random failure rate of one in every ten years,while component Y's random failure rate is one in every five years.This product has a mean time to wear-out of eight years with a standard deviation of one year.What is the probability that this product will perform reliably for a year?
Q3) A certain product is comprised of two components:
X and Y.Component X has a random failure rate of one in every ten years,while component Y's random failure rate is one in every five years.This product has a mean time to wear-out of eight years with a standard deviation of one year.What would be the reliability of this product if component Y were backed up with an identical component?
Q4) An important dimension of reliability relates to "prescribed set of conditions".
A)True
B)False
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Chapter 5: A: Strategic Capacity Planning
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Sample Questions
Q1) Seasonal variations are typically easier to deal with in capacity planning than random variations because seasonal variations tend to be:
A) smaller.
B) larger.
C) predictable.
D) controllable.
E) less frequent.
Q2) What is the anticipated utilization?
Q3) An investment proposal will have annual fixed costs of $60,000,variable costs of $35 per unit of output,and revenue of $55 per unit of output.
(i)Determine the break-even quantity.
(ii)What volume of output will be necessary for an annual profit of $60,000?
Q4) How many rose bushes would she have to produce and sell in order to make a profit of $6,000?
A) 6,000
B) 4,000
C) 3,000
D) 2,400
E) 1,500
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Chapter 5: B: Strategic Capacity Planning
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Sample Questions
Q1) Decision trees are useful when there is more than one decision variable.
A)True
B)False
Q2) The head of operations for a movie studio wants to determine which of two new scripts they should select for their next major production.(Due to budgeting constraints,only one new picture can be undertaken at this time.)She feels that script #1 has a 70 percent chance of earning about $10,000,000 over the long run,but a 30 percent chance of losing $2,000,000.If this movie is successful,then a sequel could also be produced,with an 80 percent chance of earning $5,000,000,but a 20 percent chance of losing $1,000,000.On the other hand,she feels that script #2 has a 60 percent chance of earning $12,000,000,but a 40 percent chance of losing $3,000,000.If successful,its sequel would have a 50 percent chance of earning $8,000,000,but a 50 percent chance of losing $4,000,000.Of course,in either case,if the original movie were a "flop",then no sequel would be produced.What is the expected value of selecting script #2?
A) $15,000,000
B) $9,060,000
C) $8,400,000
D) $7,200,000
E) $6,000,000
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9

Chapter 6: A: Process Design and Facility Layout
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Sample Questions
Q1) Which one of the following is a type of product layout?
A) Assembly line
B) Job shop
C) Batch process
D) Functional layout
E) Retail layout
Q2) The cycle time (CT)necessary in a product layout is determined by:
A) number of workstations/sum of task times.
B) operating time per day/desired output per day.
C) number of workstations multiplied by the sum of task times.
D) operating time per day multiplied by desired output per day.
E) sum of task times/number of workstations.
Q3) For eight hours of operating time per day and a desired output rate of 960 units per day,what is the percentage of idle time for the balance which uses the minimum number of stations?
Q4) Layouts involving combinations of product (line)layouts and cellular layouts are not possible.
A)True
B)False
Q5) What is the maximum sensible cycle time?
Page 10
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Chapter 6: B: Process Design and Facility Layout
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Sample Questions
Q1) For the constraints given below,which point is in the feasible solution space of this maximization problem?
(1)14x + 6y 42
(2)x - y 3
A) x = 1, y = 5
B) x = -1, y = 1
C) x = 4, y = 4
D) x = 2, y = 1
E) x = 2, y = 8
Q2) A company produces two products (A and B)using three resources (I,II,and III).Each product A requires 1 unit of resource I and 3 units of resource II; and has a profit of $1.Each product B requires 2 units of resource I,3 units of resource II,and 4 units of resource III; and has a profit of $3.Resource I is constrained to 40 units maximum per day; resource II,90 units; and resource III,60 units.What is the constraint for resource I?
Q3) The graphical Solution Method can handle problems that involve any number of decision variables.
A)True
B)False
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Chapter 7: A: Design of Work Systems
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Sample Questions
Q1) What is the normal time (NT)for this task if the employee worked at a twenty percent faster pace than is average?
A) 4 seconds
B) 16.7 seconds
C) 20 seconds
D) 24 seconds
E) 100 seconds
Q2) A job had an observed time of 5 minutes,a performance rating of 0.80,and an allowance proportion of 10 percent of job time.Twenty-five cycles were timed.Normal time for the job in minutes is:
A) 3.6
B) 4.0
C) 4.4
D) 4.5
E) none of these.
Q3) Time-based pay compensates employees according to the combination of the time the employee has worked and the amount of output they produce.
A)True
B)False
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Page 12
Chapter 7: B: Design of Work Systems
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Sample Questions
Q1) Sally suspects strongly that there is a learning curve associated with solving problems assigned for operations management.She notes that it took her approximately 33 minutes to solve the first problem and 17 minutes to solve the fifth problem.
(i)Estimate Sally's learning percentage.
(ii)Using your answer from part a,estimate how long it will take Sally to finish the three problems which remain.
Q2) A job has an 80% learning curve.If the first unit took 40 hours to complete,the fourth unit should take roughly how many hours?
A) 20
B) 26
C) 31
D) 35
E) 40
Q3) It takes a worker with a 90 percent learning curve 72.9 minutes to complete the fourth unit of a seven-unit job.Estimate the amount of time the worker spent on the first two units.
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13

Chapter 8: A: Location Planning and Analysis
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Sample Questions
Q1) Since they can almost always be secured,government subsidies is not a significant factor in location decisions.
A)True
B)False
Q2) As a result of the factor rating analysis,a manager may sometimes reject all of the alternatives under consideration when the composite scores of all the alternatives are below the minimum threshold value.
A)True
B)False
Q3) Relative to manufacturing firms,location decisions for service businesses tend to be focused on revenue potential rather than being cost focused.
A)True
B)False
Q4) What are total costs for site B for a quantity of 5,000 units per year?
Q5) The centre of gravity method of location planning can only be used when the quantities to be shipped to each location are equal.
A)True
B)False
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Page 14

Chapter 8: B: Location Planning and Analysis
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16 Flashcards
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Sample Questions
Q1) Which of the following are assumptions or requirements of the transportation method?
I.Goods are the same,regardless of the source.
II.There must be multiple sources.
III.Minimum quantities must be shipped.
IV.Shipping costs per unit do not vary with the quantity shipped.
A) I and IV only
B) II and III only
C) I, II, and IV only
D) I and III only
E) I, II, III, and IV
Q2) The transportation model assumes transportation cost per unit is the same regardless of the number of units shipped.
A)True
B)False
Q3) The transportation model can be used for capacity planning.
A)True
B)False
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15
Chapter 9: Management of Quality
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Sample Questions
Q1) ISO 9001 certification requires an ongoing series of audits and the need to be re-registered every three years.
A)True
B)False
Q2) Asking questions about the current process in the hope that it will lead to important insights about why the current process isn't working as well as it could is called:
A) the 5W2H approach.
B) using quality circles.
C) benchmarking.
D) a PDSA cycle.
E) none of the choices.
Q3) The three primary determinants of quality are:
A) product design, product performance, and service after sale.
B) product design, product reliability, and service after sale.
C) product design, process design, and conformance to design during production.
D) product design, product performance, and conformance to design after sale.
E) product design, product reliability, and conformance to design during production.
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16

Chapter 10: A: Statistical Quality Control
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Sample Questions
Q1) For which of the following would a p-chart be used?
A) Monitor the process means for samples.
B) Monitor dispersion in sample data.
C) Monitor the proportion of defectives in a sample.
D) Monitor the number of defects per unit.
E) Monitor the range of values in samples.
Q2) A process is "capable" if the process output falls within the design specification. A)True
B)False
Q3) If the process is known to produce 11 percent defectives on average,using three sigma control limits,do any of the sample proportions indicate an out-of-control process proportion of defectives?
Q4) Control limits distinguish between non-random and assignable variability. A)True
B)False
Q5) Variation in a sample statistic collected from a process may be either random variation or assignable variation. A)True B)False
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Chapter 10: B: Statistical Quality Control
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Sample Questions
Q1) The ability of a sampling plan to discriminate between lots of high quality and lots of low quality is described by:
A) a Gantt chart.
B) an operating characteristic curve.
C) an average outgoing quality curve.
D) a process control chart.
E) a range chart.
Q2) Acceptance sampling plans might call for selection of:
A) a single sample.
B) two samples.
C) several samples.
D) all of the choices.
E) none of the choices.
Q3) Sampling plans typically specify:
A) lot size.
B) sample size.
C) number of samples to be taken.
D) acceptance/rejection criteria.
E) sample size, number of samples to be taken, and acceptance/rejection criteria.
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Page 18
Chapter 11: Supply Chain Management
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Sample Questions
Q1) The risks of outsourcing include having less control over supplies and lower expertise internally.
A)True
B)False
Q2) Decentralized purchasing can usually offer quicker response than centralized purchasing.
A)True B)False
Q3) Which of the following is not true about value analysis?
A) It involves an examination of the function of purchased parts or products.
B) Its purpose is to reduce costs and/or improve performance of purchased goods or services.
C) It is usually performed only periodically.
D) Representatives from design and operations may work with purchasing.
E) If improvements are identified, purchasing usually has the authority to implement them.
Q4) The role of ERP systems in supply chain management is limited to inventory planning.
A)True
B)False

Page 19
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Chapter 12: Inventory Management
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Sample Questions
Q1) The reorder point (ROP)models determine the point at which the inventory,in terms of quantity must be reordered.
A)True
B)False
Q2) With an A-B-C system,an item that had a high demand quantity but a low annual dollar volume would probably be classified as:
A) A
B) B
C) C
D) A or B
E) none of the above
Q3) In the A-B-C classification of inventory,C items typically range from 50 to 60 percent of the number of items,but only 5 to 10 percent of the annual dollar value (ADV).
A)True
B)False
Q4) If unsold copies must be destroyed and copies sell for $4.00 each,what is the optimum stocking level and its effective service level?
Q5) For the economic order quantity,what are average weekly ordering costs?
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Chapter 13: Aggregate Operations Planning
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Sample Questions
Q1) Which of the following is not a basic option for altering the availability of capacity in service?
A) Overtime
B) Hiring/layoff
C) Part time
D) Inventory
E) All of these are basic options
Q2) Which of the following is an input of the master production schedule?
I.Beginning inventory
II.Demand forecasts for each period of the schedule
III.Orders already committed to customers
A) I only
B) II only
C) III only
D) II and III only
E) I, II, and III
Q3) A major factor in choosing a strategy in aggregate operations planning is overall cost.
A)True
B)False
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Chapter 14: Material Requirements Planning and Enterprise
Resource Planning
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Sample Questions
Q1) Which of the following most closely describes dependent demand?
A) Demand generated by suppliers.
B) Sales forecasts.
C) Derived demand.
D) Demands placed on suppliers by their customers.
E) Net material requirements.
Q2) What is the net requirement for Whatzats to fill this order?
A) 100
B) 140
C) 150
D) 180
E) 200
Q3) What is the economic part-period (EPP)for ordering this item?
A) 2
B) 50
C) 100
D) 150
E) 200
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Chapter 15: A: Just-In-Time and Lean Production
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Sample Questions
Q1) Which of the following is not associated with converting to cellular layouts?
A) Determining a family of products to group together
B) Designing the process for the product family
C) Balancing the cell
D) Reducing the variety of end products produced
E) Determining the capacity of the cell
Q2) A production system uses kanban cards to control production and movement of parts.One work centre uses an average of 40 pieces per hour of a certain part.Standard containers hold 10 parts.The waiting time for parts containers is about 36 minutes.Management has assigned a safety factor of .20 to this work centre.How many containers should be used to support this operation?
Q3) The ultimate goal of lean systems is to have:
A) minimal in-process inventories.
B) empowered cross-trained workers.
C) a balanced, rapid flow of materials and products through the system.
D) reduced setup times.
E) small production lot sizes.
Q4) Manufacturing cells in JIT systems process similar parts for a product.
A)True
B)False

Page 23
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Chapter
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Sample Questions
Q1) Reliability-centered maintenance is based on historical data and ongoing monitoring of equipment condition.
A)True
B)False
Q2) When breakdowns become frequent and/or costly,managers are faced with a trade-off decision between the cost of continued maintenance and the cost of ________________.
A) passage of time
B) preventive maintenance
C) breakdowns
D) replacement
E) reliability
Q3) The average time before breakdown of a machine is normally distributed and has a mean of 7 weeks and a standard deviation of 1.5 weeks.If breakdown cost averages $2,500 and preventive maintenance costs $500,what is the optimal preventive maintenance interval?
Q4) The average time before breakdown of a machine is normally distributed and has a mean of 7 weeks and a standard deviation of 1.5 weeks.If breakdown cost averages
$2,500 and preventive maintenance costs $500,what is the optimal preventive maintenance interval?
Page 24
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Chapter 16: Job and Staff Scheduling
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Sample Questions
Q1) In the drum-buffer-rope conceptualization used in the theory of constraints,the "drum" that sets the pace for production refers to:
A) work-in-process inventory before the bottleneck.
B) the bottleneck of the process.
C) total capacity of the process.
D) first stage in the process.
E) the master schedule.
Q2) Which sequencing rule is designed specifically to minimize job lateness?
A) Critical ratio (CR)
B) Earliest due date (EDD)
C) First come, first serve (FCFS)
D) Minimum slack time (MST)
E) Shortest processing time (SPT)
Q3) Using Johnson's rule what is the optimum sequence (first car to last)?
A) A; B; C; D; E
B) E; D; C; B; A
C) E; B; D; C; A
D) E; D; B; C; A
E) E; B; D; A; C
Q4) When does idle time occur at machine B for the optimum schedule?
Page 25
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Chapter 17: Project Management
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Sample Questions
Q1) Which of the following is a part of project scheduling?
A) Identify resource requirements for activities
B) Estimate the duration of activities
C) Identify activities in the work breakdown structure
D) Identify sequential dependencies among activities
E) All of the choices are a part of project scheduling.
Q2) What is the estimated slack time for Activity E?
A) 0 weeks
B) 3 weeks
C) 9 weeks
D) 11 weeks
E) 12 weeks
Q3) In crashing this project to 18 weeks,which activities (in order of selection)will be reduced?
Q4) What is the estimated expected (mean)duration for project completion?
A) 160 days
B) 170 days
C) 200 days
D) 210 days
E) 300 days
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Chapter 18: A: Waiting-Line Analysis
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Sample Questions
Q1) What is the probability that a machine will have to wait for service with two operators?
A) .654
B) .090
C) .346
D) .910
E) .016
Q2) What is the average time that a customer would have to wait in line before being served?
A) 4.3 minutes
B) 8.3 minutes
C) 2.7 minutes
D) 6.7 minutes
E) None, the customer would be served immediately.
Q3) Typically customers will perceive waiting times to be less if the line continues to move.
A)True
B)False
Q4) What is the average number of low priority items waiting in line for service?
Q5) What is the average number of all items waiting in line for service?
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Chapter 18: B: Waiting-Line Analysis
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Sample Questions
Q1) Simulation models are fairly easy to use and understand; therefore they can be used for a wide range of decisions.
A)True
B)False
Q2) The random numbers used in Monte Carlo simulations come from: I)any source II)computer generated numbers III)a table of random numbers
A) I only
B) II only
C) III only
D) II or III
E) I, II, or III
Q3) Monte Carlo simulations yield approximate rather than exact answers.
A)True
B)False
Q4) A random variate is an integer value chosen from a specific range such as between 00 and 999.
A)True
B)False
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