Operations Management Review Questions - 2273 Verified Questions

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Operations Management Review

Questions

Course Introduction

Operations Management focuses on the design, operation, and improvement of the systems that create and deliver a firms primary products and services. This course explores key concepts such as process analysis, capacity planning, inventory management, quality control, supply chain management, and lean operations. Through both quantitative and qualitative approaches, students learn how to make strategic and tactical decisions that enhance productivity, reduce costs, and ensure customer satisfaction across diverse industries. The course emphasizes the integration of technology and sustainability principles in operations, preparing students to effectively manage and optimize business processes in a dynamic global environment.

Recommended Textbook Operations Management 5th Canadian Edition by William

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Page 2

Chapter 1: Introduction to Operations Management

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Sample Questions

Q1) Measuring process outputs at various points in order to compare outputs to previously established standards to determine if corrective action is needed is called:

A) planning and directing.

B) directing and conversion.

C) feedback and control.

D) controlling and leading.

E) leading and transformation.

Answer: C

Q2) Operations managers are responsible for managing activities and resources that produce goods and/or provide services.

A)True

B)False

Answer: True

Q3) An example of an operations control decision is the choice of location.

A)True

B)False

Answer: False

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Chapter 2: Competitiveness, Strategic Planning, and Productivity

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Sample Questions

Q1) The variety of models and options available to customers is an example of key purchasing criteria that establishes the basis of competition.

A)True

B)False

Answer: True

Q2) Which of the following are major decision-making categories for operations policies and action plans?

I.Facility

II.Capacity

III.Process types and technology

IV.Human Resources

A) I and II only

B) I, II, and III only

C) III and IV only

D) II, III, and IV only

E) I, II, III, and IV

Answer: E

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Chapter 3: Demand Forecasting

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Sample Questions

Q1) A seasonal relative (or seasonal indexes)is expressed as a percentage of the average or trend in a time series.

A)True

B)False

Answer: True

Q2) A control chart involves setting control limits to monitor cumulative forecast error.

A)True

B)False

Answer: False

Q3) The primary difference between seasonality and cycles is:

A) the duration of the repeating patterns.

B) the magnitude of the variation.

C) the ability to attribute the pattern to a cause.

D) all of the choices are differences.

E) none of the choices are differences.

Answer: A

Q4) What is this year's seasonally adjusted forecast for each season?

Answer: Spring 44.421; Summer 32.192; Fall 56.159; Winter 84.981

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Page 5

Chapter 4: A: Product Design

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Sample Questions

Q1) Service design generally differs from product design in which of the following ways?

A) Service design tends to focus on tangible factors more so than products.

B) There is less latitude in detecting and correcting errors prior to delivery for services.

C) Choice of location is less important for services.

D) Services typically have higher barriers to entry than products.

E) None of the choices are correct.

Q2) Quality function deployment (QFD)is based on a set of matrices which relate customer requirements (what)to corresponding technical requirements (how).

A)True

B)False

Q3) Which one of the following is not a common design for environment (DFE)practice?

A) Design for disassembly

B) Design to minimize use of hazardous materials

C) Design for re-use

D) Design for mass customization

E) design for energy efficiency

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Chapter 4: B: Product Design

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Sample Questions

Q1) A system is composed of two parts which must both operate in order for the system to perform as intended.The parts have reliabilities of .6 and .5.There is an identical backup system connected to the main system by a switch which has a reliability of .9.The probability that the overall system will operate is closest to:

A) .30

B) .40

C) .50

D) .60

E) .70

Q2) A life monitoring system can operate an average of 15 months between failures.Determine these probabilities:

(i)a failure within 12 months of the previous failure

(ii)a failure between 12 and 18 months after the previous failure

Q3) An important dimension of reliability relates to "prescribed set of conditions".

A)True

B)False

Q4) Redundancy in product design refers to backup parts or systems.

A)True B)False

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Chapter 5: A: Strategic Capacity Planning

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Sample Questions

Q1) How many blood analyses would he have to perform in order to break even?

A) 3,000

B) 2,400

C) 2,000

D) 1,200

E) 750

Q2) The break-even quantity can be determined by dividing the fixed costs by the difference between the revenue per unit and the variable cost per unit.

A)True

B)False

Q3) What would the potential profit be if he were to split 4,000 cords of wood with this machine?

A) $100,000

B) $150,000

C) $200,000

D) $600,000

E) $800,000

Q4) What is the anticipated efficiency?

Q5) What is the anticipated utilization?

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Chapter 5: B: Strategic Capacity Planning

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Sample Questions

Q1) 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 #1?

A) $15,000,000

B) $9,060,000

C) $8,400,000

D) $7,200,000

E) $6,000,000

Q2) Decision trees are analyzed from left to right.

A)True

B)False

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Chapter 6: A: Process Design and Facility Layout

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Sample Questions

Q1) Which of the following is not a benefit of cellular layouts?

A) Faster processing time

B) Less material handling

C) More work-in-process inventory

D) Reduced setup time

E) All of the choices are benefits

Q2) If a line is balanced with 90 percent efficiency,the "balance delay" would be:

A) 10 percent.

B) 90 percent.

C) 100 percent.

D) unknown, because balance delay isn't related to efficiency.

E) none of the choices are correct.

Q3) A common goal in designing process layouts is:

A) minimizing the number of workers.

B) minimizing idle time.

C) minimizing transportation costs.

D) maximizing work-station productive time.

E) maximizing transportation distances.

Q4) If transportation costs are $.25 per load per foot moved,what are total monthly costs for an optimum layout?

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Chapter 6: B: Process Design and Facility Layout

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Sample Questions

Q1) In the graphical method of linear programming,when the objective function is parallel to one of the constraints,then:

A) the solution is suboptimal.

B) multiple optimal solutions exist.

C) a single corner point solution exists.

D) no feasible solution exists.

E) none of the choices are correct.

Q2) A maximization problem may be characterized by all greater than or equal to constraints.

A)True

B)False

Q3) Every constraint in a maximization problem has a slack variable.

A)True

B)False

Q4) An objective function represents a family of parallel lines.

A)True

B)False

Q5) LP problems must have a single goal or objective specified.

A)True

B)False

11

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Chapter 7: A: Design of Work Systems

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Sample Questions

Q1) What is the standard time (ST)for this task if the employee worked at a 20% faster pace than is average and an allowance of 25% of the workday is used?

A) 40 seconds

B) 50 seconds

C) 53.3 seconds

D) 60 seconds

E) 64 seconds

Q2) A worker-machine chart can be used to determine how many machines an operator can manage.

A)True

B)False

Q3) How many observations would be needed to be 95.44% confident that the maximum error in the observed time is 1 second?

Assume that the standard deviation of the task time is 2 seconds.

Q4) The normal time in stopwatch time study is obtained by multiplying the observed time by the performance rating.

A)True

B)False

Q5) What is the observed time for this task?

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Chapter 7: B: Design of Work Systems

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Sample Questions

Q1) A learning percentage of 98% implies 2% learning.

A)True

B)False

Q2) The 3<sup>rd</sup> unit of a ten-unit job required 7.3 hours to complete.The 4<sup>th</sup> unit has been worked on for two hours,but it is not yet finished.Estimate the remaining amount of time that will be needed to finish this ten-unit job if the work has an 80% learning curve.

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.

Q4) If the task is short and somewhat routine; a modest amount of improvement occurs during the first few repetitions.

A)True

B)False

Q5) Assembly of a radar unit has a learning curve of 80 percent.Estimated time to assemble the second unit is 40 hours.Determine approximately how much time will be required for:

(i)the eighth unit

(ii)the first ten units

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Chapter 8: A: Location Planning and Analysis

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Sample Questions

Q1) For what range of output would you prefer site A?

Q2) Which of the following is not an accurate statement concerning the Voronoi polygon approach to location analysis for companies with multiple facilities?

A) Each polygon contains one facility.

B) Any point within a polygon is closer to the centre of its polygon than any other polygon.

C) Lawson's algorithm is a technique for determining Volonoi polygons.

D) A city or town being analyzed is broken up into multiple overlapping polygons.

E) Analysis is based on the Euclidian distance between two points.

Q3) The factor rating method of location planning uses a coordinate overlay to determine relative locations.

A)True

B)False

Q4) The centre of gravity method is useful in location planning for the location of a distribution centre.

A)True

B)False

Q5) What are total costs for site C for a quantity of 5,000 units per year?

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Chapter 8: B: Location Planning and Analysis

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Sample Questions

Q1) The transportation model method for evaluating location alternatives minimizes:

A) the number of sources.

B) the number of destinations.

C) the number of alternatives.

D) the total demand.

E) the total shipping cost.

Q2) To formulate a transshipment problem as a linear program similar to the transportation problem,transshipment points must:

A) equate the total input into each of them to the total output from them.

B) equate (balance) total cost of shipping to each of them to the total cost of shipping output from them.

C) ensure total input to all of them is less than the total supply available.

D) ensure total input to all of them is sufficient for the total demand of destinations.

E) balance shipments so that each transshipment point receives and ships an equal quantity.

Q3) The transportation model is a special type of linear programming model.

A)True

B)False

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15

Chapter 9: Management of Quality

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Sample Questions

Q1) Cost of inspectors,testing,test equipment,and labs are examples of prevention costs.

A)True

B)False

Q2) Performance and price are both considered to be dimensions of product quality.

A)True

B)False

Q3) A chart showing the number of occurrences by category would be used in:

A) a Pareto analysis.

B) interviewing.

C) cause-and-effect diagrams.

D) benchmarking.

E) none of the choices.

Q4) Three key philosophies of TQM are continuous improvement,involvement of everyone in the organization,and customer satisfaction.

A)True

B)False

Q5) ISO 9001 is the international standard for a quality management system. A)True

B)False

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Chapter 10: A: Statistical Quality Control

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Sample Questions

Q1) Attributes are process characteristics that must be measured rather than counted.

A)True

B)False

Q2) Using .95 control limits,(5% alpha risk),which instructor(s),if any,should he conclude is (are)out of control?

A)None of the choices are correct.

B)Prof.B only

C)Prof.D only

D)Both Prof.B and Prof.D.

E)All of the choices are correct.

Q3) Which of the following quality control sample statistics measures a quality characteristic which is an attribute?

A) Mean

B) Variance

C) Standard deviation

D) Range

E) Proportion

Q4) If the process proportion of defectives is unknown,what is the estimate of it?

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Chapter 10: B: Statistical Quality Control

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Sample Questions

Q1) The purpose of acceptance sampling is to decide whether a batch of items satisfies predetermined standards.

A)True

B)False

Q2) The terms "consumer's risk" and "alpha risk" both refer to a Type I error.

A)True

B)False

Q3) In a double-sampling plan,a second sample may not be taken if the results of the first sample are conclusive.

A)True

B)False

Q4) If a lot,or batch,is "rejected" during acceptance sampling,the lot will usually be thrown away.

A)True

B)False

Q5) The AQL is associated with a producer's risk.

A)True

B)False

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Chapter 11: Supply Chain Management

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Sample Questions

Q1) Typically,Japanese companies rely on short-term contracts with many suppliers in order to be consistent with the frequent deliveries and large lot sizes of JIT systems.

A)True

B)False

Q2) An item with a holding cost of $500 per year can be shipped by air in 1 day,costing $100,or by ground in 4 days,costing $25.Assuming the holding costs of $500 per year are based on an operational year of 365 days,which is cheaper and by how much?

A) Ground is cheaper by $75.00

B) Ground is cheaper by $70.89

C) Ground is cheaper by $72.26

D) Ground and air have the same total cost

E) None of the choices are correct

Q3) Which of the following is not true about JIT deliveries?

A) Also referred to as "quick response" (QR) in wholesale sectors

B) Small lot sizes

C) Frequent deliveries

D) Decreased transportation cost per unit

E) All of the choices are true

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19

Chapter 12: Inventory Management

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Sample Questions

Q1) In the basic EOQ model,at the optimal order quantity annual holding cost is equal to the annual ordering cost.

A)True

B)False

Q2) In the A-B-C classification of inventory,items classified under the "A" category typically have high unit costs,but low levels for annual dollar value (ADV).

A)True

B)False

Q3) In the basic EOQ model,the annual ordering cost is equal to:

A) the EOQ multiplied by ordering cost.

B) the EOQ divided by ordering cost.

C) ordering cost multiplied by the ratio of total annual demand to the EOQ.

D) ordering cost multiplied by the ratio of the EOQ to total annual demand.

E) ordering cost multiplied by annual demand.

Q4) The fixed order interval model requires a larger amount of safety stock than the reorder point (ROP)model for the same risk of a stock-out.

A)True

B)False

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Page 20

Chapter 13: Aggregate Operations Planning

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Sample Questions

Q1) Linear programming models used to produce an aggregate operations plan: I.are based on a total cost formula as a linear objective function. II.is the most widely used technique for aggregate operations planning. III.establishes an optimal (least cost)solution (if it exists).

A) I only

B) II only

C) III only

D) I and III only

E) I, II, and III

Q2) Master production schedules are often divided into three zones: the emergency,trading,and planning zones.

A)True

B)False

Q3) One option for altering the period when manufacturing capacity is available is: A) pricing.

B) promotion.

C) use of slack time for training.

D) stockpiling inventories.

E) All of the choices are options.

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Page 21

Chapter 14: Material Requirements Planning and Enterprise

Resource Planning

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Sample Questions

Q1) Which action can managers take if capacity requirements planning (CRP)indicate one or more work stations are projected to be under loaded or over loaded?

A) Shifting some orders to adjacent periods.

B) Transferring employees from other areas.

C) Scheduling overtime.

D) Revise the MPS and MRP.

E) All of the choices are options.

Q2) The MRP requires a list of the individual parts that will be converted to finished goods.

A)True

B)False

Q3) A report that compares known and expected future capacity requirements with projected available capacity is a:

A) master production schedule.

B) bill of material report.

C) inventory status report.

D) MRP schedule.

E) load report.

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Page 22

Chapter 15: A: Just-In-Time and Lean Production

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Sample Questions

Q1) JIT was developed at the Ford Motor Company by Henry Ford.

A)True

B)False

Q2) When contrast with MRP systems,JIT systems:

A) solely focus on the flow of end products.

B) focus on long term production planning.

C) rely on visual or audible signals to trigger production.

D) relies on "pushing" items through stages of production planning.

E) all of the choices are true.

Q3) Which of the following is a benefit of small lot sizes in JIT systems?

A) Quicker response to changing customer demands.

B) No safety stock is required.

C) Work-in-process inventory is eliminated.

D) Inventory planning models are not required.

E) All of the choices are benefits.

Q4) An advantage of JIT cross-trained workers is they can help other workers when bottlenecks occur.

A)True

B)False

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Chapter 15: B: Just-In-Time and Lean Production

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Sample Questions

Q1) The degree of technology involved is a factor affecting the decision of how much preventive maintenance is desirable.

A)True

B)False

Q2) Cost of equipment breakdown can include:

I.loss of output.

II.cost of idle workers.

III.damage to other equipment.

A) I only

B) II only

C) III only

D) I and III only

E) I, II, and III

Q3) The goal of maintenance is to maintain the productive system in good working order while minimizing:

A) total preventive maintenance costs.

B) total breakdown maintenance costs.

C) total maintenance costs.

D) the difference between preventive and breakdown costs.

E) the ratio of breakdown to preventive maintenance costs.

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Chapter 16: Job and Staff Scheduling

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Sample Questions

Q1) In job scheduling,most loading of work centres is based on infinite loading.

A)True

B)False

Q2) The elimination of idle time on both bottleneck and non-bottleneck operations is equally important.

A)True

B)False

Q3) For service systems with customers directly involved in the process,FCFS is the dominant priority rule.

A)True

B)False

Q4) The output of the system is limited by the output of the bottleneck operation(s).

A)True

B)False

Q5) In the production planning hierarchy,scheduling is the final step before the actual output is produced.

A)True

B)False

Q6) What is the schedule sequence using the earliest due date (EDD)priority rule?

Page 25

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Chapter 17: Project Management

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Sample Questions

Q1) What are the estimated standard deviations (in weeks)of the durations for activities A-H?

Q2) A hierarchical listing of what must be done during the project is called:

A) work breakdown structure (WBS).

B) program evaluation and review technique (PERT).

C) planning matrix.

D) crashing.

E) critical path method (CPM).

Q3) What is the estimated standard deviation of the duration for activity D?

A) 0 days

B) 2 days

C) 3 days

D) 4 days

E) 12 days

Q4) In "crashing",a project manager will generally focus on activities which:

A) are not on the critical path.

B) are the least costly to crash.

C) are costly to crash and are on the critical path.

D) are on the critical path and are the least costly to crash.

E) none of the choices are correct.

26

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Chapter 18: A: Waiting-Line Analysis

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Sample Questions

Q1) The multiple server queuing table cannot be applied to single server systems.

A)True

B)False

Q2) The goal of queuing analysis is to minimize:

A) the sum of customer waiting costs and costs of providing capacity.

B) the sum of customer waiting time and service time.

C) costs of providing capacity.

D) customer waiting time.

E) none of the choices.

Q3) What is server utilization?

Q4) How many spaces should be provided to have a 96% probability of accommodating all of the waiting cars?

A) 10

B) 12

C) 14

D) 16

E) 18

Q5) What is the overall average arrival rate?

Q6) What is the average number of high priority items waiting in line for service?

Q7) What is average time in the system for a low priority item?

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Chapter 18: B: Waiting-Line Analysis

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Sample Questions

Q1) Simulation enables a decision maker to experiment with a system and observe its behaviour.

A)True

B)False

Q2) When simulating numbers for an Exponential distribution,a table of random numbers can be used.

A)True

B)False

Q3) A Normal distribution has a mean of 500 and a standard deviation of 50.A manager wants to simulate two values from this distribution,and has drawn these random numbers: -0.60 and +1.40.Respectively,the two values are:

A) 640 and 440.

B) 470 and 570.

C) 570 and 470.

D) 440 and 640.

E) none of the choices are correct.

Q4) Monte Carlo simulations are deterministic.

A)True

B)False

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