Operations Management
Final Exam Questions
Course Introduction
Operations Management is a course designed to introduce students to the fundamental concepts and techniques used to plan, organize, and control the processes that produce goods and services. The course covers topics such as process analysis, capacity planning, inventory management, quality assurance, supply chain coordination, and project management. Emphasizing both strategic and operational decision-making, students learn how to optimize resource use, improve efficiency, and enhance quality within organizations. Through case studies, simulations, and real-world examples, the course equips students with the tools to analyze operational challenges and implement effective solutions in a variety of industries.
Recommended Textbook
Operations Management in the Supply Chain Decisions and Cases 6th Edition by Roger G Schroeder
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508 Flashcards
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Chapter 1: The Operations Function
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Sample Questions
Q1) Why are supply chain management and globalization contemporary operations issues?
Answer: Managing the supply chain requires managers to consider the entire flow of materials,information,and money throughout the supply chain,from raw materials through production and distribution to the final customers.Strategies for operations should be formulated with global effects in mind.Even many small businesses compete globally,sourcing or selling goods and services in markets with global competitors. Both issues are increasingly complex and are requiring additional operations manager or supply chain manager attention.
Q2) The four decision areas in operations management are:
A)Planning,technology,inventory,and control
B)Process,quality,capacity,and inventory
C)Process,quality,technology,and capacity
D)None of these
Answer: B
Q3) "Lean Operations" refers to the task of reducing the defect rates in a firm's products or services.
A)True
B)False
Answer: False
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Chapter 2: Operations and Supply Chain Strategy
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Sample Questions
Q1) 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
Q2) The operation objectives of quality,cost,delivery,and flexibility are:
A)Mutually exclusive
B)Independent of each other
C)Connected
D)Unique
Answer: C
Q3) How do the operations strategic decisions differ for a product imitator strategy versus a product innovator strategy?
Answer: Superior processes vs.superior products. Dedicated automation vs.flexible automation. Slow reaction to changes vs.fast reaction to changes. Economies of scale vs.economies of scope.0 Workforce involvement vs.use of new product development teams.
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4
Chapter 3: Product Design
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Sample Questions
Q1) ISO 9000 requires that a new-product development process be defined and followed by a company.
A)True
B)False
Answer: True
Q2) Value analysis:
A)Improves the usefulness of the product without increasing the cost
B)Reduces the cost of a product without reducing its usefulness
C)Both a and b
D)None of the above
Answer: C
Q3) Quality Function Deployment:
A)Links customer requirements to technical specifications
B)Eliminates customer attributes
C)Depends only on engineering characteristics
D)Assumes that interactions between engineering characteristics are unimportant
Answer: A
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Chapter 4: Process Selection
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Sample Questions
Q1) Mass customization uses a make-to-stock process.
A)True
B)False
Q2) Which of the following is/are among the factors that appear to influence process selection?
A)Capital requirements
B)Labor
C)Technology
D)a,b,and c
Q3) The key performance measure of a make-to-order process is the lead-time.
A)True
B)False
Q4) The type of processing system that is used for complex jobs with a unique or creative set of activities and where automation is virtually impossible is:
A)Mass production
B)Continuous production
C)Project
D)Batch
Q5) What are the six types of focus?
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Chapter 5: Service Delivery System Design
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Sample Questions
Q1) Which of the following are characteristics of a low-contact service delivery system?
A)Lower costs and more standardization
B)Greater flexibility,need for people who are highly skilled in interpersonal relations,and a customer orientation
C)Need for people with a high level of technical skills oriented toward efficient processing,well-defined procedures,and smooth flow
D)Both a and c
E)All of the above
Q2) Which of the following is NOT a general characteristic of a service?
A)Production and consumption are simultaneous
B)The service can be transported
C)No resale is possible
D)The service cannot be stored
Q3) 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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Sample Questions
Q1) Which of the following is NOT one of the four principles of process redesign?
A)Organize around outcomes,not tasks
B)Have the people who do the work process their own information
C)Eliminate unnecessary steps in the process
D)Automate the remaining steps in the process
Q2) A numerically controlled machining center has an average processing capacity of 5000 units per day.It receives an average of 3000 units of inventory from another machining center and it has to supply an average of 1000 units of finished goods to the packaging section.Assuming that the company incurs a significant cost for carrying finished goods supplied to the packaging section,the flow rate of the machining process is:
A)3000 units per day
B)5000 units per day
C)1000 units per day
D)None of the above
Q3) A store open 24 hours per day is interested in determining store traffic.They found that customers arrive uniformly at the rate of 10 customers per hour.The store has a single worker to process customers.The worker takes an average of 5 minutes to process a customer.If we assume that every customer must be processed,what is the average number of customers in the store?
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Chapter 7: Lean Thinking and Lean Systems
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Sample Questions
Q1) "Gemba" refers to data collection using the company's information system.
A)True
B)False
Q2) A kanban system cannot be used in service industries.
A)True
B)False
Q3) One-touch setups could require as long as 9 minutes to perform.
A)True
B)False
Q4) External setups refer to actions that require stoppage of the production process.
A)True
B)False
Q5) Which of the following is not an element of lean?
A)Small-lot sizes
B)Modularized master schedule
C)Multifunction workers
D)Kanban pull system
E)Perfect or nearly perfect quality
Q6) Explain the concept of value stream mapping.
Page 9
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Chapter 8: Managing Quality
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Sample Questions
Q1) Which of the following is the most important criterion (highest number of points)of the Malcolm Baldrige National Quality Award?
A)Process management
B)Results
C)Customer focus
D)Leadership
Q2) Which of the following is NOT part of the quality trilogy that Juran advocates?
A)Planning
B)Operations
C)Control
D)Improvement
Q3) Which of the quality gurus advocated organizations driving out employee fear?
A)Deming
B)Juran
C)Crosby
D)Ishikawa
E)Taguchi
Q4) The Japanese term for mistake-proofing is "poka-yoke."
A)True
B)False
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Chapter 9: Quality Control and Improvement
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Sample Questions
Q1) The quality tool that shows the relationship between two variables is a histogram.
A)True
B)False
Q2) Lean is another term for Six Sigma process improvement.
A)True
B)False
Q3) In process capability analysis,the standard deviation (\(\sigma\))refers to the standard deviation of sample measures.
A)True
B)False
Q4) There are two indicators of a process shift-points outside the control limits and an upward or downward trend in the process average.
A)True
B)False
Q5) Attribute control occurs when the product characteristic is measured on a continuous scale.
A)True
B)False
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Chapter 10: Supply Chain Management
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Sample Questions
Q1) 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
Q2) What are the two fundamental processes in all supply chains that are most affected by the Internet?
A)Electronic interchange and order placement
B)Order fulfillment and order placement
C)B2B exchanges and order fulfillment
D)None of the above
Q3) Major product redesign is often needed to make infrastructure improvements in the supply chain.
A)True
B)False
Q4) Order placement via the Internet does NOT include:
A)Increasing the accuracy of the order
B)Faster order entry
C)Manufacturing and shipment status
D)Use of an ERP system to schedule production
Page 12
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Chapter 11: Forecasting
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Sample Questions
Q1) If a sales representative tells his or her manager,"I hope to sell 20% more than last year," this should be considered:
A)A forecast
B)A performance measure
C)A goal
D)A production plan
Q2) Using a three-week moving average,what is your forecast for week 6?
A)30
B)35
C)32.5
D)25
Q3) Quantitative forecasting methods should be used for predicting the demand patterns of new products introduced in the market.
A)True
B)False
Q4) Forecasting of demand is always equivalent to forecasting of sales.
A)True
B)False
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Page 13
Chapter 12: Capacity Planning
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Sample Questions
Q1) Which of the following statements regarding capacity is NOT true?
A)Capacity can be measured in several units such as hours of output,number of units produced,number of customers served,etc.
B)Effective capacity is generally less than the theoretical capacity.
C)Capacity is the maximum output that could be produced over a period of time.
D)The 'maximum output' of a process is not a meaningful measure.
Q2) The aggregate planning problem:
A)Should only consider supply management options
B)Only affects marketing and production,but human resources is not involved in decisions
C)Should only consider demand management options
D)Needs to consider multiple tradeoffs such as customer service level,inventory levels,labor force stability,and costs
Q3) One way of leveling a seasonal demand pattern is by developing complementary products or services.
A)True
B)False
Q4) Describe the types of short-range,the medium-range,and the long-range capacity decisions.
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Chapter 13: Scheduling Operations
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Sample Questions
Q1) The reason(s)for batch scheduling being a complex management problem is/are:
A)Irregular flow of units with many starts and stops
B)Layout of the batch process by machine group or skills into work centers
C)Batches result in inventory or people waiting in queues
D)All of the above
Q2) A bottleneck is:
A)A resource that has the maximum capacity in the facility
B)A resource whose capacity is less than the capacity of all other resources and whose capacity is less than the demand placed on it
C)A resource that blocks labor productivity
D)A resource that has the fastest processing time
Q3) The theory of constraints (TOC)is:
A)A strategic technique primarily used to reduce waste
B)A strategic technique used to help firms effectively improve the rate at which raw materials are converted to finished goods and then money through sales
C)A strategic technique used to balance capacity across all resources
D)All of the above
Q4) What are the steps that could be taken at a bottleneck resource to increase its capacity?
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Chapter 14: Project Planning and Scheduling
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Sample Questions
Q1) A forward pass of the above network indicates that the early start time of activity 4-5 is:
A)4
B)5
C)3
D)None of the above
Q2) 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
Q3) Project managers' objectives include:
A)Cost
B)Quality
C)Flexibility
D)All of the above
Q4) The early start and late start times are equal for an activity on the critical path of a network.
A)True
B)False
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Chapter 15: Independent Demand Inventory
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Sample Questions
Q1) Capacity,as opposed to inventory:
A)Is the rate at which a stock can be depleted
B)Covers anticipated changes in demand or supply
C)Is resources that provide the potential to produce items
D)Is a stock of raw materials,work in process,or finished goods used to facilitate production or satisfy customer demands
Q2) Which of the following statements is true about a Q system?
A)It does not have a reorder point but rather a target inventory.
B)The system is completely determined by the two parameters,Q and R.
C)It does not have an EOQ because the quantity varies according to demand.
D)The order interval is fixed-not the order quantity.
Q3) Service levels is:
A)The percentage of time the system has an item on hand
B)The percentage of demand filled from stock
C)The probability that all orders are filled from stock
D)All of the above
Q4) The average inventory level is defined as the difference between the cycle stock and the safety stock.
A)True
B)False
Page 17
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Chapter 16: Materials Requirements Planning and ERP
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Sample Questions
Q1) A requirements-based system derives orders from:
A)Customer requests
B)Forecast
C)Bill of materials
D)Master schedule
Q2) A replenishment-based system derives orders from:
A)Capacity available
B)Forecast or customer request
C)Bill of materials
D)Master schedule
Q3) The master schedule should be frozen inside the production lead-time.
A)True
B)False
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 is prepared for product families.
A)True
B)False
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