Operations Management Test
Bank
Course Introduction
Operations Management explores the principles and practices involved in the efficient production and delivery of goods and services. This course covers key topics such as process design, supply chain management, inventory control, quality assurance, and capacity planning. Students will learn how to analyze operational processes, identify areas for improvement, and implement strategies to increase productivity and reduce costs. Through case studies and practical exercises, learners will gain a comprehensive understanding of how operations management contributes to organizational effectiveness and customer satisfaction in various industries.
Recommended Textbook
Operations Management Creating Value Along the Supply Chain 7th Edition by Roberta S. Russell
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23 Chapters
1483 Verified Questions
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Page 2
Chapter 1: Operations Management
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Sample Questions
Q1) A retail operation is an example of an exchange transformation process.
A)True
B)False
Answer: True
Q2) Firms compete in the marketplace based on cost,speed,quality and flexibility.
A)True
B)False
Answer: True
Q3) The set of activities that create and deliver products to the customer is known as the supply chain.
A)True
B)False
Answer: True
Q4) The ratio of a firm's monthly output to the number of labor hours used in the same month would be a measure of
A)labor productivity
B)capital productivity
C)machine productivity
D)multifactor productivity
Answer: A
Page 3
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Chapter 2: Quality Management
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Sample Questions
Q1) One principle of total quality management TQM)is that middle management is solely responsible for providing the leadership for quality.
A)True
B)False
Answer: False
Q2) Companies that satisfy its customer quality requirements often require the commitment of their suppliers.
A)True
B)False
Answer: True
Q3) Companies that have adopted Six Sigma view it as a short-term strategy for quality improvement.
A)True
B)False
Answer: False
Q4) Six Sigma is a one of several well known quality management systems.
A)True
B)False
Answer: True
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Chapter 3: Statistical Quality Control
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Sample Questions
Q1) Which of the following control charts are often based on sample sizes larger than one hundred?
A)xbar
B)R
C)c
D)p
Answer: D
Q2) The smaller the historical proportion defective reported for a process,the larger the sample size required to detect special cause variation with a p-chart.
A)True
B)False
Answer: True
Q3) A control chart is in control when the plot of the sample points exhibits a pattern.
A)True
B)False
Answer: False
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Page 5
Chapter 4: Product Design
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Sample Questions
Q1) Fault tree analysis FTA)is
A)a software systems that uses computer graphics to assist in designing products
B)a systematic approach to analyzing the causes and effects of product failures
C)a visual method for analyzing the interrelationships among failures
D)a structured process that translates the voice of the customer into technical design requirements
Q2) If a product fails 10 times in 500 hours of operation,then its mean time between failures MTBF)is
A)0.02 hour
B)0.10 hour
C)20 hours
D)50 hours
Q3) Product design has a tremendous impact on the quality of a manufactured good or service.
A)True
B)False
Q4) An effective design process matches product characteristics with customer requirements.
A)True
B)False
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Chapter 5: Service Design
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Sample Questions
Q1) A small diner has one employee and a counter with seating for 8 customers.The diner does not package food for takeout.Customers arrive at the diner at the rate of 20 per hour Poisson distributed).Service times are exponentially distributed and average 24 per hour.Customers that arrive when all seats are taken do not enter the diner.What is the average time a customer spends waiting?
A)2.5 minutes
B)3.0 minutes
C)6.44 minutes
D)24 minutes
Q2) In general,as the number of servers in a waiting line system increases
A)service cost increases and waiting cost decreases.
B)service cost decreases and waiting cost increases.
C)both service cost and waiting cost increase.
D)both service cost and waiting cost decrease.
Q3) The mixture of physical items,sensual benefits,and psychological benefits provided to a customer with a service is known as the service package.
A)True
B)False
Q4) What is queue discipline and queue length?
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Chapter 6: Processes and Technology
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Sample Questions
Q1) Variable demand and small to moderate quantities produced to order are characteristics usually associated with
A)mass production
B)continuous production
C)projects
D)batch production
Q2) Supplier reliability is often an important consideration in outsourcing decisions.
A)True
B)False
Q3) Customers are rarely involved in a project that takes an extended period of time to complete
A)True
B)False
Q4) 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.
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) What makes scheduling so difficult in a job shop?
Q2) Who developed the theory of constraints (TOC)and what is its approach to scheduling?
Q3) Which of the following is not typically considered an objective of scheduling?
A)minimizing job lateness
B)maximizing time in the system
C)minimizing overtime
D)maximizing machine utilization
Q4) The process of prioritizing jobs that have been assigned to a resource is called sequencing.
A)True
B)False
Q5) The scheduling function for mass production and job shop production are basically the same.
A)True
B)False
Q6) The theory of constraints (TOC)approach to scheduling concentrates on scheduling the bottleneck resources.
A)True
B)False
Page 9
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Chapter 7: Capacity and Facilities
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Sample Questions
Q1) A schematic diagram that uses weighted lines to denote location preference is known as a
A)block grid
B)block diagram
C)a relationship grid
D)a relationship diagram
Q2) A schematic diagram using weighted lines to denote location preference is called a relationship diagram.
A)True
B)False
Q3) Similar activities are grouped together in departments or work centers according to the function with a __________ layout.
A)process
B)fixed-position
C)hybrid
Q4) Briefly compare the storage and movement of material in a process layout and in a product layout.
Q5) Briefly describe the two constraints under which assembly line balancing must operate.
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Chapter 8: Human Resources
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Sample Questions
Q1) List the three categories of the principles of motion study and give two rules for each category.
Q2) Empowerment involves giving employees the authority and responsibility to innovate and act on their own.
A)True
B)False
Q3) Learning curves are useful for measuring work improvement for repetitive,simple jobs requiring short times to complete.
A)True
B)False
Q4) Motion study,the study of the individual human motions used in a task,was developed by A)Henry Ford.
B)F.W.Taylor.
C)Frank and Lillian Gilbreth.
D)Frederick Herzberg.
Q5) Fitting the task to the person in a work environment is known as job analysis. A)True
B)False
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Chapter 9: Project Management
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Sample Questions
Q1) Using Table 9.1,the earliest finish (EF)time for activity D is
A)7 weeks.
B)13 weeks.
C)20 weeks.
D)30 weeks.
Q2) Indirect costs always increase as a project's duration decreases.
A)True
B)False
Q3) A unique,one-time operational activity or effort is referred to as a process.
A)True
B)False
Q4) Issues of cultural diversity in project management should only be addressed if and when they arise.
A)True
B)False
Q5) Managing quality is not an important part of project management.
A)True B)False
Q6) What is a scope statement?
Q7) Why have projects taken on a more crucial role in operations management?
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Chapter 10: Supply Chain Management: Strategy and Design
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Sample Questions
Q1) Use of radio frequency identification RFID)technology makes it possible for a customer to determine production schedules.
A)True
B)False
Q2) Information is the essential link for coordination among all supply chain members.
A)True
B)False
Q3) All of the following are performance metrics in the SCOR system,except
A)perfect order fulfillment.
B)production flexibility.
C)value-added productivity.
D)asset fulfillment.
Q4) _______________________ is not a perceived advantage of radio frequency identification RFID)technology.
A)Loss of personal privacy
B)Reduced stock-outs
C)Prevention of fraud or theft
D)Lower distribution costs
Page 13
Q5) What processes comprise the supply chain and how are the processes integrated?
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Chapter 11: Global Supply Chain Procurement and Distribution
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Sample Questions
Q1) The selection of suppliers is called
A)outsourcing.
B)procurement.
C)sourcing.
D)none of the above.
Q2) Warehouse management systems are often used to run the day-to-day operations of a distribution center.
A)True
B)False
Q3) List and discuss the seven different modes of transportation.
Q4) Which mode of transportation transports products in liquid form?
A)Pipeline
B)Ocean
C)Both a and b are correct
D)Airline
Q5) Purchasing can be classified according to two broad categories: direct (manufacturing inputs)and indirect (operating inputs).
A)True B)False
Q6) List and discuss some of the forces driving globalization. Page 14
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Chapter 12: Forecasting
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Sample Questions
Q1) An exponential smoothing forecasting technique requires all of the following except A)the forecast for the current period.
B)the actual demand for the current period.
C)a smoothing constant.
D)large amounts of historical demand data.
Q2) Discuss the importance of accurate forecasts in supply chain management.
Q3) Qualitative forecasts use mathematical techniques and statistical formulas.
A)True
B)False
Q4) Long-range qualitative forecasts are used to determine future demand for new products,markets and customers.
A)True
B)False
Q5) Regression is used for forecasting when there is a relationship between the dependent variable,demand,and one or more independent (explanatory)variables.
A)True
B)False
Q6) Explain how and why time series and regression forecasting methods differ.
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Chapter 13: Inventory Management
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Sample Questions
Q1) A quantity discount is a price discount available if a predetermined number of units is ordered.
A)True
B)False
Q2) Which of the following is not an assumption of the EOQ model?
A)demand is known and constant.
B)no shortages allowed.
C)lead time is determined by quantity ordered.
D)order quantity is received all at once.
Q3) The demand for an electronic component is normally distributed with an average daily demand of 500 units and a standard deviation of 50.The lead time for the component is 9 days.If a service level of 95% is desired,then the company's safety stock for this component is approximately
A)150 units.
B)247 units.
C)336 units.
D)740 units.
Q4) The order quantity for a periodic inventory system remains constant.
A)True
B)False
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Chapter 13: Operational Decision-Making Tools: Simulation
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Sample Questions
Q1) In what ways is simulation relevant to analyzing production problems?
Q2) The Monte Carlo technique selects numbers randomly from a probability distribution for use in a quantitative model.
A)True
B)False
Q3) The Monte Carlo technique is a mathematical model used within a simulation. A)True B)False
Q4) Simulation is often viewed as the technique of last resort because it can be applied to situations when there is no applicable quantitative model. A)True
B)False
Q5) Simulation analysis is useful for operational problems that A)are easy to solve analytically.
B)can't be solved analytically.
C)require an optimal solution.
D)meet specific analytical criteria.
Q6) What is simulation and why is it a popular decision-making tool?
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Chapter 14: Operational Decision-Making Tools: Linear Programming
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Sample Questions
Q1) Operations mangers find very few types of linear program models applicable today because finding an optimal solution is no longer a concern.
A)True
B)False
Q2) The optimal solution for a linear programming problem will always occur at an extreme point.
A)True
B)False
Q3) The formulation for a linear programming problem cannot include more than one decision variable.
A)True
B)False
Q4) The constraints in a linear programming formulation define the feasible solution space.
A)True
B)False
Q5) Most real-world linear programming problems are solved graphically.
A)True
B)False
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Chapter 14: The Sales and Operations Planning Process
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Sample Questions
Q1) Reconciliation of the sales plan and the operations plan may include adjusting capacity and/or managing demand.
A)True
B)False
Q2) What are the outputs of aggregate planning?
Q3) A company is developing a linear programming model for its aggregate production plan.If W<sub>t</sub> = workforce size for period t,H<sub>t</sub> = number of workers hired for period t,and F<sub>t</sub> = number of workers fired for period t,then the company's workforce constraint for period 4 is
A)W<sub>4</sub> = W<sub>3</sub> - H<sub>4</sub> + F<sub>4</sub>
B)W<sub>4</sub> = W<sub>3</sub> + H<sub>4</sub> - F<sub>4</sub>
C)W<sub>4</sub> = W<sub>3</sub> + H<sub>3</sub> - F<sub>3</sub>
D)W<sub>4</sub> = W<sub>3</sub> + H<sub>4</sub>
Q4) Implementing a companywide game plan for allocating resources addresses the long-standing battle between operations and marketing.
A)True
B)False
Q5) Briefly discuss the two primary objectives of aggregate planning.
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Chapter 15: Resource Planning
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Sample Questions
Q1) All of the following can be used for underloaded conditions except
A)acquiring additional work.
B)pushing work back.
C)pulling work ahead.
D)reducing normal capacity.
Q2) The total length of time to purchase an item from a supplier is called its cumulative lead time.
A)True
B)False
Q3) Which of the following is not a major input into capacity requirements planning (CRP)?
A)planned order releases
B)routing file
C)load profiles for each work center
D)open orders file
Q4) 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.
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Chapter 16: Lean Systems
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Sample Questions
Q1) ___________ is generally credited with the development of lean production.
A)Frederick Taylor
B)W.Edwards Deming
C)Taiichi Ohno
D)None of the above.
Q2) Mixed-model sequencing
A)facilitates total productive maintenance.
B)achieves uniform production levels.
C)increases product lead times.
D)reduces worker productivity.
Q3) Which of the following is not a basic element of lean production?
A)flexible resources
B)pull system
C)repetitive production
D)small lot production
Q4) Early adopters of lean production in the U.S.were unsuccessful because they tried to implement lean by slashing inventories and forcing their suppliers to make more frequent deliveries.
A)True
B)False
Page 22
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Chapter 18: Operational Decision-Making Tools: Decision Analysis
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Sample Questions
Q1) Decision analysis is a quantitative technique supporting decision making with uncertainty.
A)True
B)False
Q2) 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
Q3) A sequential decision tree is a graphical method for analyzing decision situations that require a sequence of decisions over time.
A)True
B)False
Q4) A decision criterion that results in the maximum of the minimum payoffs is called a maximin criterion.
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) The consumer's risk is the probability of rejecting a lot that meets the acceptable quality level (AQL).
A)True
B)False
Q2) An operating characteristics (OC)curve is a graph that measures the probability of accepting a lot with no defective items.
A)True
B)False
Q3) A(n)________________ curve is a graph showing the probability of accepting a lot for different quality levels with a specific sampling plan.
A)operating characteristic (OC)
B)average outgoing quality
C)lot tolerance percent defective
D)single-sample attribute
Q4) 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) Common location incentives include all of the following except A)tax credits.
B)job training.
C)fixed exchange rates.
D)improvements to infrastructure.
Q2) Service facilities are usually the largest and most expensive type of facility.
A)True
B)False
Q3) Facility location is often overlooked because it is not an important aspect of a firm's strategic plan.
A)True
B)False
Q4) The center of gravity technique outlines a method for identifying and weighing important location factors.
A)True
B)False
Q5) Service operations tend to make location decisions more frequently than manufacturing facilities.
A)True
B)False
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Chapter 21: Operational Decision-Making Tools: Work Measurement
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Sample Questions
Q1) For a particular time study a company would like to be 90% confident that the average job cycle time is within 5% of the true average job cycle time.Assume that the average job cycle time was 15.76 minutes and the standard deviation of the sample was 3.2 minutes.The number of cycles that should be used in this time study would be
A)45
B)93
C)127
D)236
Q2) Determining the length of time it takes to do a job is known as work measurement.
A)True
B)False
Q3) Advantages of using a predetermined motion time system include all of the following except
A)worker cooperation and compliance are not required
B)ignores job context within which a single motion takes place
C)workplace is not disrupted
D)eliminates the need for subjectively determining performance ratings
Q4) List the steps in work sampling.
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