Operations Management
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Course Introduction
Operations Management explores the core principles and techniques involved in designing, managing, and improving business processes in manufacturing and service organizations. The course covers topics such as process analysis, capacity planning, inventory control, quality management, supply chain coordination, and project management. Students will learn how effective operations strategies contribute to organizational efficiency, competitiveness, and value creation. Through case studies, analytical tools, and real-world examples, the course emphasizes the integration of operations with other business functions and the application of quantitative and qualitative methods to solve practical operational challenges.
Recommended Textbook
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) Productivity is the most common measure of competitiveness.
A)True
B)False
Answer: True
Q2) All of the following are responsibilities of operations managers except
A)acquiring financial resources
B)managing inventories
C)planning production
D)scheduling production
Answer: A
Q3) Operations management is concerned only with the day-to-day operations of a firm's productive systems.
A)True
B)False
Answer: False
Q4) The set of activities that create and deliver products to the customer is known as the supply chain.
A)True
B)False
Answer: True
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Chapter 2: Quality Management
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Sample Questions
Q1) Quality of performance relates to the basic operating characteristics of a product.
A)True
B)False
Answer: True
Q2) Toyota achieved high product quality by adapting many of the quality management principles that had first been developed in the United States.
A)True
B)False
Answer: True
Q3) All of the following are part of DMAIC except:
A)Improve
B)Control
C)Measure
D)Implement
Answer: D
Q4) The Deming Wheel is also known as the plan-do-check-act PDCA)cycle.
A)True
B)False Answer: True
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Chapter 3: Statistical Quality Control
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Sample Questions
Q1) A control chart is in control when the plot of the sample points exhibits a pattern.
A)True
B)False Answer: False
Q2) Two types of variation associated with the output of a process are common random)cause and special cause.
A)True
B)False Answer: True
Q3) Variable quantitative)control charts are used to monitor measurable characteristics of a process's outputs.
A)True
B)False Answer: True
Q4) Variable control charts are used for quantitative measures such as weight or time.
A)True
B)False
Answer: True
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Chapter 4: Product Design
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Sample Questions
Q1) Computer-aided design CAD)produces better products but always increases the time to design them.
A)True
B)False
Q2) Which of the following is not a characteristic of an effective product design process?
A)matches product characteristics with customer requirements
B)maximizes the revisions necessary to make a design workable
C)ensures that customer requirements are met in the least costly and simplest manner
D)reduces the time required to design a new product or service
Q3) Concurrent design may involve simultaneously designing products and their production processes.
A)True
B)False
Q4) Establishing multifunctional design teams can help reduce the time-to-market.
A)True
B)False
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Chapter 5: Service Design
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Sample Questions
Q1) Queue discipline specifies the order in which waiting customers are served.
A)True
B)False
Q2) Which of the following is not a characteristic of a service?
A)Intangible
B)Variable output
C)Difficult to emulate
D)Perishable
Q3) Aas the level of service improves in a waiting line system the cost of service usually increases.
A)True
B)False
Q4) Consider an espresso stand with a single barista.Customers arrive to the stand at the rate of 28 per hour according to a Poisson distribution.Service times are exponentially distributed with a service rate of 35 customers per hour.The probability that the server is busy is
A)0.20
B)0.60
C)0.80
D)1.00
Page 7
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Chapter 6: Processes and Technology
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Sample Questions
Q1) As process selection moves up the diagonal from project to continuous production
A)demand volume increases.
B)product variety increases.
C)capital intensity decreases.
D)flexibility increases.
Q2) Which of the following is not an advantage of batch production?
A)frequent changes in product mix
B)flexibility
C)customization of output
D)quality reputation
Q3) A company is considering producing a product for a new market.The fixed costs required for manufacturing and delivering the product is $50,000.Labor and material costs are estimated to be approximately $25.00 per product.If the product is sold for $35.00 each,the firm's break-even volume would be
A)50,000 units
B)5,000 units
C)2500 units
D)500 units
Q4) List some non-economic factors that can influence a firm's outsourcing decision.
Q5) 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) Johnson's rule gives an optimal sequence for jobs processed serially through a two step system.
A)True
B)False
Q2) The process of assigning work to limited resources is known as A)loading.
B)sequencing.
C)monitoring.
D)dispatching
Q3) A ________ chart is used to show both planned and completed activities against a time scale.
A)Gantt
B)Dispatch
C)Sequencing
D)None of the above.
Q4) Scheduling is considered the last stage of the planning process.
A)True
B)False
Q5) List some of the objectives in scheduling.
Q6) 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) Most service facilities utilize fixed-position layouts.
A)True
B)False
Q2) Which of the following is not an "area" of disadvantage of cellular layouts?
A)cell balance
B)work-in-process inventory
C)capital investment
D)training and scheduling
Q3) The line-balancing procedure uses heuristics to specify which work elements are allocated to each workstation.
A)True
B)False
Q4) ___________ is a group technology technique that reorders part routing matrices to identify families of parts with similar processing requirements.
A)Process flow analysis
B)Production flow analysis
C)Cycle analysis
D)Group analysis
Q5) What are the advantages of a cellular layout?
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Chapter 8: Human Resources
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Sample Questions
Q1) The formal study of the individual human motions used to perform a task was developed by Frank and Lillian Gilbreth.
A)True
B)False
Q2) Learning curves have limited application for assembly-lines with short,repetitive jobs.
A)True B)False
Q3) Because services are labor intensive,human resources is becoming a more important strategic factor for service companies.
A)True
B)False
Q4) Advantages of telecommuting include all of the following except A)reduced turnover.
B)decreased absenteeism and leave usage.
C)flexible work schedules.
D)direct visual surveillance of employees.
Q5) In what ways have advances in information technologies changed the working environment?
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Chapter 9: Project Management
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Sample Questions
Q1) A standard procedure for numerically measuring a project's progress is referred to as a(n)
A)program evaluation and review technique (PERT).
B)critical path method (CPM).
C)Gantt chart.
D)earned value analysis.
Q2) A Gantt chart provides a visual display of the project schedule that includes scheduled start times,finish times and available slack.
A)True
B)False
Q3) Using Table 9.2,the earliest finish time for activity C is A)5.00 weeks.
B)8.17 weeks.
C)9.50 weeks.
D)12.67 weeks.
Q4) Using Table 9.2,the variance for activity E is A)1.291.
B)1.667.
C)2.582.
D)2.778.
Page 12
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Chapter 10: Supply Chain Management: Strategy and Design
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Sample Questions
Q1) Supply chain processes include
A)procurement.
B)production.
C)distribution
D)all of the above.
Q2) The bullwhip effect can
A)increase inventories.
B)increase demand.
C)increase customer service levels.
D)increase capacity.
Q3) Because value chain and supply chain have similar meanings they are often used interchangeably.
A)True
B)False
Q4) One way to reduce the bullwhip effect is for supply chain members to A)make ordering decisions independently of each other.
B)create demand forecasts independently of other supply chain members.
C)share demand forecasts with other supply chain members.
D)restrict information flows between supply chain members.
Q5) Who are the upstream and downstream supply chain members?
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Chapter 11: Global Supply Chain Procurement and Distribution
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Sample Questions
Q1) Outsourcing is a relatively new phenomenon used strictly by multinationals.
A)True
B)False
Q2) List and explain the major components of a warehouse management system.
Q3) Long life,high capital cost and low operating costs are associated with which mode of transportation?
A)pipeline
B)canal
C)barges
D)water
Q4) Distribution includes all of the following activities except A)packaging.
B)storing.
C)shipping.
D)sourcing.
Q5) Explain the concept of landed cost and discuss how it is used to make global sourcing decisions.
B)False Page 14
Q6) Information technology is an enabler of globalization for middle-tier companies. A)True
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Chapter 12: Forecasting
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Sample Questions
Q1) A ___________ is an up-and-down movement in demand that repeats itself over a lengthy time period of more than a year.
A)trend
B)seasonal pattern
C)random variation
D)cycle
Q2) A seasonal pattern is an oscillating movement in demand that occurs periodically over the short-run and is repetitive.
A)True
B)False
Q3) Which of the following can be used to monitor a forecast to see if it is biased high or low?
A)a tracking signal
B)the mean absolute deviation (MAD)
C)the mean absolute percentage deviation (MAPD)
D)a linear trend line model
Q4) Explain the difference between qualitative and quantitative forecasting methods.
Q5) Explain how and why time series and regression forecasting methods differ.
Q6) Compare and contrast short-mid-range forecasts and long-range forecasts.
Page 16
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Chapter 13: Inventory Management
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Sample Questions
Q1) Continuous inventory systems often incorporate information technology to improve the speed and accuracy of data entry and retrieval.
A)True
B)False
Q2) The production quantity model,a variation of the basic EOQ model,assumes non-instantaneous replenishment.
A)True
B)False
Q3) ___________ demand items are used in the process of producing a final product.
A)Dependent
B)Independent
C)Seasonal
D)Cyclical
Q4) The order cycle is the time between receipts of orders in an inventory cycle..
A)True
B)False
Q5) Briefly compare and contrast a continuous inventory system to a periodic inventory system listing the advantages and disadvantages of each.
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Chapter 13: Operational Decision-Making Tools: Simulation
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Sample Questions
Q1) A random number's likelihood of being selected is based on a normal distribution.
A)True
B)False
Q2) After a sufficient number of simulation runs a steady state results when the variable being investigated reaches an _________ value that remains constant.
A)optimal
B)average
C)expected
D)estimated
Q3) Simulation is the preferred technique for problems with random variables represented by probability distributions.
A)True
B)False
Q4) Because simulation is used to analyze probabilistic problems it provides information that is used to make a decision versus an optimal solution.
A)True
B)False
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Chapter 14: Operational Decision-Making Tools: Linear Programming
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Sample Questions
Q1) The constraint 3x<sub>1</sub> + 6x<sub>2</sub> > 48 is converted to an equality by A)adding a slack variable.
B)subtracting a surplus variable.
C)adding both a slack variable and a surplus variable.
D)subtracting both a slack variable and a surplus variable.
Q2) In general,the objective function for linear programming problems in operations is one of minimizing costs.
A)True
B)False
Q3) The optimal solution for a linear programming problem will always occur
A)when the slack price equals the surplus price.
B)when the surplus price equals the slack price.
C)at an extreme point.
D)at a non-extreme point.
Q4) A formulation for a linear programming model consists of a decision variable,a constraint and several objective functions.
A)True
B)False
Q5) How is linear programming useful to an operations manager?
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Chapter 14: The Sales and Operations Planning Process
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Sample Questions
Q1) Subcontracting is a feasible alternative for adjusting capacity provided the supplier can reliably meet quality and time requirements.
A)True
B)False
Q2) Reconciliation of the sales plan and the operations plan may include adjusting capacity and/or managing demand.
A)True
B)False
Q3) Which of the following is not a characteristic of aggregate planning for services?
A)labor is usually the most constraining resource for services
B)service capacity must be provided at the appropriate place and time
C)demand for services is easy to predict
D)capacity for services is difficult to predict
Q4) The level strategy for adjusting capacity is only appropriate when there is no variation in demand.
A)True
B)False
Q5) What are the outputs of aggregate planning?
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Chapter 15: Resource Planning
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Sample Questions
Q1) A load profile compares
A)requirements for all lower-level items to higher-level items.
B)cumulative lead times to projected lead times.
C)the quantities in which items should be produced to actual demand.
D)released and planned orders with work center capacity.
Q2) Enterprise resource planning integrates business processes at the expense of customer interaction.
A)True
B)False
Q3) The application modules that comprise the ERP system are designed to support only customer relationship management processes.
A)True
B)False
Q4) Customer relationship management systems change the focus from managing products to managing customers.
A)True
B)False
Q5) What is the difference between independent and dependent demand?
Q6) What is a bill-of-material?
21
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Chapter 16: Lean Systems
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Sample Questions
Q1) Total productive maintenance combines preventive maintenance with kaizen.
A)True
B)False
Q2) How does the pull system differ from the push system?
Q3) Lean production is difficult to implement when
A)demand is highly variable.
B)product variety is high..
C)there are many unique products.
D)all of the above are true.
Q4) Which of the following is not a benefit of lean production?
A)Greater flexibility
B)Increased capacity
C)More customers
D)More product variety
Q5) Kanbans are used to maintain the discipline required of a push production system.
A)True
B)False
Q6) What role does the elimination of waste play in lean production?
Q7) What are the benefits of small-lot production?
Page 22
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Chapter 18: Operational Decision-Making Tools: Decision Analysis
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Sample Questions
Q1) The maximum value of perfect information to the decision maker is known as
A)the expected value of perfect information
B)the expected value of imperfect information
C)the minimum of the minimax regret
D)none of the above
Q2) 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
Q3) A decision criterion that results in the maximum of the minimum payoffs is called a maximin criterion.
A)True
B)False
Q4) A payoff table is a quantitative technique supporting decision making under uncertainty.
A)True
B)False
Q5) What is decision analysis?
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Chapter 19: Operational Decision-Making Tools: Acceptance Sampling
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Sample Questions
Q1) A multiple-sampling plan uses the smallest sample size of any sampling plan. A)True
B)False
Q2) .Is acceptance sampling consistent with TQM?
Q3) Acceptance sampling is based on the premise that a lot contains some acceptable number of defective items.
A)True
B)False
Q4) The simplest form of a sampling plan is a single-sample attribute plan.
A)True
B)False
Q5) With acceptance sampling,a lot is either rejected or accepted depending on the number of defects found in a sample.
A)True
B)False
Q6) 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
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Chapter 20: Decision-Making Tools: Facility Location Models
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Sample Questions
Q1) A technique based on transport weight and distance used for locating a facility at the center of movement in a geographic area is known as the
A)load-distance technique.
B)center of gravity technique.
C)location factor rating.
D)location factor technique.
Q2) Which of the following is a type of facility addressed by the facility location decision?
A)heavy manufacturing
B)light manufacturing
C)retail facilities
D)all the above
Q3) Transportation costs are generally a function of distance,weight,and time.
A)True
B)False
Q4) Which type of facility is large and expensive?
A)light-industry facilities
B)retail and service facilities
C)heavy-manufacturing facilities
D)medium-site facilities
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Chapter 21: Operational Decision-Making Tools: Work Measurement
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Sample Questions
Q1) How many cycles should be used in a time study in order to be 98% confident that the time-study average job cycle time is within 4% of the true average job cycle time.Assume that the average job cycle time was 4.25 minutes and the standard deviation of the sample was 0.65 minutes.
A)55 cycles
B)70 cycles
C)80 cycles
D)95 cycles
Q2) Briefly discuss the advantages and disadvantages of a predetermined motion time system.
Q3) Workers often do not like to be the subject of a time study and are sometimes unwilling to cooperate.
A)True
B)False
Q4) List the steps in work sampling.
Q5) What is work sampling and what is its primary use?
Q6) Determining the length of time it takes to do a job is known as work measurement.
A)True B)False
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