Production and Operations Management
Final Exam Questions
Course Introduction
Production and Operations Management focuses on the efficient transformation of inputs into goods and services to maximize organizational productivity and customer satisfaction. This course introduces students to key concepts, strategies, and techniques essential for managing manufacturing and service operations, including process analysis, quality control, inventory management, capacity planning, supply chain coordination, and project management. Emphasis is placed on decision-making tools for optimizing resource allocation, streamlining processes, and achieving operational excellence in a competitive business environment.
Recommended Textbook
Decision Sciences and Operations Management Coursemate 4th Edition by David
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Page 2
A. Collier
Chapter 1: Goods, Services, and Operations Management
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Sample Questions
Q1) Moments of truth consist of one or more service encounters.
A)True
B)False
Answer: False
Q2) As manufacturers sought to customize products for global markets and increase goods and service variety, they were able to leverage the mass production methods that are very efficient and cost-effective.
A)True
B)False
Answer: False
Q3) Many products that appear to be only physical goods often include bundled services.
A)True
B)False
Answer: True
Q4) Taking a customer order at a quick service restaurant would generally be viewed as a support process.
A)True
B)False
Answer: False
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Chapter 2: Value Chains
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Sample Questions
Q1) "The perception of the benefits associated with a good, service, or bundle of goods and services in relation to what buyers are willing to pay for them" is the definition of A)proportionality
B)competitiveness
C)value
D)equity
Answer: C
Q2) ____ integration refers to acquiring capabilities at the front of the supply chain, whereas ____ integration refers to acquiring capabilities toward the back end of the supply chain.
A)Vertical, horizontal
B)Upward, downward
C)Forward, backward
D)Backward, forward
Answer: C
Q3) Forward integration might include acquiring a customer.
A)True
B)False
Answer: True
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Chapter 3: Measuring Performance in Operations
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Sample Questions
Q1) The quote "Happy employees create happy customers" best characterizes the Service-Profit Chain SPC) model.
A)True
B)False
Answer: True
Q2) Briefly discuss the seven categories of the Malcolm Baldrige National Quality Award.
Answer: 11ea89ff_22ee_4e89_8b44_2961b1fd8f46_TB2054_00
Q3) When Bill Gates stated that "Microsoft is always two years away from failure," he was emphasizing the importance of
A)innovation and learning
B)productivity
C)design flexibility
D)speed
Answer: A
Q4) The only important measurement category in business is financial.
A)True
B)False
Answer: False
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Chapter 4: Operations Strategy
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Sample Questions
Q1) Improving design quality usually allows a firm to charge higher prices and thus increase revenue and profit.
A)True
B)False
Q2) A clean bed in a hotel would be considered as an order satisfier.
A)True
B)False
Q3) Which one of the following statements in the Lawn Care Company LCC) case study is true?
A)The LCC already had experience and capabilities in the residential lawn application service and market segment, and was considering using this expertise to enter the golf and park market segment.
B)The gross margin on grass seed and fertilizer were higher than on the lawn application service.
C)Service management skills play a major role in the LCC current strategy and vision of the business.
D)The order winner for the current strategy at LCC is high physical goods quality.
Q4) Explain the concept of search, experience, and credence attributes.
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Chapter 5: Technology and Operations Management
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Q1) Bar code scanners are examples of soft-technology.
A)True
B)False
Q2) Which of the following would not be an activity a return facilitator handles?
A)recommending a new supplier
B)repairing the manufactured good
C)requesting money back for a customer
D)invoking the service guarantee
Q3) Differentiate between hard technology and soft technology.
Q4) Amazon.com would be an example of a customer-to-customer value chain.
A)True
B)False
Q5) CAD/CAE systems are broader in scope than CIM systems.
A)True
B)False
Q6) A sociotechnical system integrates technology, people, and processes.
A)True
B)False
Q7) Discuss the role of technology on productivity.
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Q8) Describe the three stages of the technology development and adoption process.
Chapter 6: Goods and Service Design
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Sample Questions
Q1) To improve system reliability, one option is to
A)use better components
B)use more components in series
C)use quality function deployment
D)eliminate redundancy
Q2) Customer requirements that are expressed in the customer's own language is called the "voice of the customer."
A)True
B)False
Q3) Design for Environment DfE) is the explicit consideration of environmental concerns during the design of goods and services and processes, and include such practices as designing for recycling and disassembly.
A)True
B)False
Q4) Define reliability. Include the four major elements.
Q5) A service encounter design focuses on the interaction, directly and indirectly, between the service providers) and the customer.
A)True
B)False
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Chapter 7: Process Selection, Design, and Analysis
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Sample Questions
Q1) In service operations, significant volume increases can and frequently are made without changes in the service process, as would be expected in manufacturing.
A)True
B)False
Q2) Explain and differentiate the characteristics of a project, job shop, flow shop and continuous flow process.
Q3) Job shop processes use flexible, general purpose equipment that is capable of customizing work for individual customers.
A)True
B)False
Q4) Service facilities have a greater range of resource utilization than manufacturing.
A)True
B)False
Q5) In the introduction phase of the product life cycle, operations managers need to quickly standardize their processes.
A)True
B)False
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Chapter 8: Facility and Work Design
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Sample Questions
Q1) The twelve tasks necessary to assemble a food blender are listed below. The time to perform each task and the tasks that must immediately precede are also listed. 200 blenders are needed per hour and 50 minutes per hour are productive:
\[\begin{array} { c c c | c c c }
\text { Task } & \text { Time in minutes) } & \text { Predecessors } & \text { Task } & \text { Time in minutes) } & \text { Predecessors } \\
\hline \text { A } & .20 & \text { none } & \text { G } & .08 & \text { E,F } \\
\text { B } & .05 & \text { none } & \text { H } & .12 & \text { none } \\
\text { C } & .15 & \text { none } & \text { I } & .05 & \text { none } \\
\text { D } & .06 & \text { none } & \text { J } & .12 & \text { H,I,G } \\
\text { E } & .03 & \text { A,B } & \text { K } & .15 & \text { J } \\
\text { F } & .16 & \text { C,D } & \text { L } & .08 & \text { K } \\
\hline
\end{array}\]
a. Compute the cycle time per unit in minutes.
b. Compute the minimum number of workstations required.
c. Use the longest-task-time heuristic to balance the assembly line.
d. Compute the efficiency of your assembly line.
Q2) Discuss the advantages and disadvantages of utilizing virtual teams.
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Chapter 9: Supply Chain Design
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Sample Questions
Q1) Orders are passed upstream in a supply chain, while materials and finished goods are sent downstream in a supply chain.
A)True
B)False
Q2) Distribution centers are warehouses that act as intermediaries between suppliers and factories.
A)True
B)False
Q3) Describe some common supply chain metrics used to evaluate performance.
Q4) Summarize the Supply Chain Operations Reference SCOR) model.
Q5) The bullwhip effect results from order amplification in the supply chain.
A)True
B)False
Q6) In designing an efficient supply chain, an organization would need high levels of inventory stored in many small distribution centers.
A)True
B)False
Q7) Explain the importance of the bullwhip effect. What can managers do to reduce it?
Page 11
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Chapter 10: Capacity Management
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Sample Questions
Q1) The earliest revenue management systems focused solely on overbooking.
A)True
B)False
Q2) Constraints determine the throughput of a facility.
A)True
B)False
Q3) For a non-bottleneck activity,
A)Utilization must be near 100%
B)An hour lost has no effect on total process or factory output
C)Use large order sizes to minimize setups
D)Work-in-process buffer inventory should be placed in front of non-bottlenecks
Q4) A food packaging plant has planned shipments over the next six weeks of 9500, 8500, 10000, 8800, 8200, and 9000. The plant normally operates 2 shifts per day, five days per week. During each shift, 1000 food products can be packaged and ready to ship. What is the plant's weekly capacity? At what percentage of capacity is the plant actually operating?
Q5) Reservations reduce risks for customers but provide little benefit for service providers.
A)True
B)False
Page 12
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Chapter 11: Forecasting and Demand Planning
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Sample Questions
Q1) Describe some of the issues that managers must consider in applying forecasting methods in practice.
Q2) Repeatable periods of ups and downs over short periods of time are called ____.
A)Trends
B)Seasonal patterns
C)Cyclical patterns
D)Irregular variation
Q3) An) ____ is a one-time variation that is explainable.
A)Cyclical pattern
B)Random Variation
C)Irregular variation
D)Seasonal pattern
Q4) In forecasting, irregular variation that is explainable can normally be discarded.
A)True
B)False
Q5) What is a time series, and what types of characteristics typically make up time series?
Q6) A 7-month simple moving average would approximately equate with what alpha (\(\alpha\)) factor for simple exponential smoothing?
Page 13
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Chapter 12: Managing Inventories
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Sample Questions
Q1) Given the information below, conduct an ABC analysis and suggest which items should be classified as A, B and C.
\[\begin{array} { c c c }
\text { SKU } & \text { Annual Usage } & \text { Item Value \$) } \\
\hline1& 9,000 & 80.00 \\
2 & 12,000 & 58.80 \\
3 & 24,000 & 76.20 \\
4 & 42,000 & 48.00 \\
5 & 55,000 & 30.00 \\
6 & 140,000 & 2.20 \\
7 & 33,000 & 48.00 \\ 8 & 3,000 & 110.00
\end{array}\]
Q2) You manage a candy store in a high traffic shopping mall where you have collected the following information.
Q3) Explain the different types of inventories maintained throughout a value chain.
Q4) Provide some examples of when the single period inventory model is applicable.
Q5) Larger orders result in higher total holding cost but lower total ordering cost.
A)True B)False
Page 14
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Chapter 13: Resource Management
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Sample Questions
Q1) A company produces two end-items: products A and B. They are concerned about the loading on their Finish Shop and are trying to develop a rough?cut capacity plan. To finish product A two hours are required and for product B one hour. Total hours available in the Finish Shop are 100. They have the following weekly production information: \(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\quad \)\(\text { Week }\)\(\begin{array}{|c|r|r|r|r|r|r|}
\hline \text { End Item } & 1 & 2 & 3 & 4 & 5 & 6 \\
\hline \mathrm{A} & 40 & 0 & 40 & 0 & 40 & 0 \\
\hline \mathrm{B} & 0 & 30 & 0 & 0 & 30 & 30 \\
\hline
\end{array}\)
a. What is the total hourly load on the Finish Shop in week 3?
b. In what week is the Finish Shop overloaded?
Q2) Dependent demand does not occur in the service business.
A)True
B)False
Q3) Work center load reports are used in capacity requirements planning.
A)True
B)False
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Chapter 14: Operations Scheduling and Sequencing
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Sample Questions
Q1) The following five jobs, along with their processing time and due dates, are given below.
\[\begin{array} { c c c } & \text { Processing } & \text { Days Due } \\
\text { Jab } & \text { Time days) } & \text { Fram Today } \\
\hline\text { A } & 8 & 12 \\
\text { B } & 4 & 9 \\
\text { C } & 3 & 6 \\
\text { D } & 7 & 7 \\
\text { E } & 5 & 20
\end{array}\]
a.Use the Shortest Processing Time Rule (SPT) and determine the average flow-time for the five jobs
b.Use the Earliest Due Date Rule (EDD) and determine the average lateness and tardiness.
Q2) Like the SPT rule, the earliest due date EDD) rule minimizes the average flow time.
A)True
B)False
Q3) What four 4) decisions are considered in designing an appointment system?
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Chapter 15: Quality Management
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Sample Questions
Q1) In the act stage of the Deming cycle, improvements become standardized and the plan is implemented as a "current best practice" and communicated throughout the organization.
A)True
B)False
Q2) A tool to help determine how a process works and what it is supposed to do is a
A)Run chart
B)Cause-and-effect diagram
C)Scatter diagram
D)Flowchart
Q3) Define root cause and describe root cause analysis.
Q4) ISO 9000 is best used by firms with mature quality systems as a means of refining their quality practices.
A)True
B)False
Q5) The costs associated with maintaining measurement instruments would be an example of appraisal costs.
A)True
B)False
Q6) Define poka-yoke and provide some examples.
Page 17
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Chapter 16: Quality Control and Spc
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Q1) Indications in a control chart of an out-of-control situation include all of the following except
A)Six or seven consecutive points that increase or decrease in value
B)About the same number of points above and below the center line
C)There are points outside control limits
D)There are no more points near the center line than there are close to the control limits
Q2) An \(\bar { x }\) -chart is always analyzed first because the control limits in the R-chart depend on the mean \(\bar{ x }\) ) of the data.
A)True
B)False
Q3) Quality control of front-office operations in services can effectively use many of the same techniques that are applied in manufacturing.
A)True
B)False
Q4) A production process is sampled 24 times with a sample size of 6 yields an overall mean of 25.2 and an average range of 0.8. Determine the control limits for the x-bar and R charts.
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Chapter 17: Lean Operating Systems
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Sample Questions
Q1) Contrast batching with single-piece flow.
Q2) Hinge Manufacturing Company employs a Kanban system for a component part. The daily demand is 900 hinges. Each container has a wait time of 0.05/day, and a processing time of 0.37 days. The Container size is 60 hinges and the safety factor (\(\alpha\)) is 10%.
a.How many Kanban card sets should be authorized?
b.What is the maximum inventory of this hinge in the system?
Q3) Define lean enterprise and the four principles of lean operating systems.
Q4) The 5Ss focus on improving waste generated by inefficient transportation.
A)True
B)False
Q5) Which one of the following statements is true?
A)Postponement is the process of delaying orders from suppliers because it is very difficult to order from geographically dispersed businesses.
B)General Motors supply chain is a good example of a push system.
C)Dell Computers supply chain is a good example of push system.
D)Flexibility and responsive service are top priorities compared to low cost in an efficient supply chain.
Q6) Explain the concept of Single Minute Exchange of Die (SMED).
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Chapter 18: Project Management
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Sample Questions
Q1) A type of organization which "loans" resources to projects while still maintaining control over them is called
A)Pure project structure
B)Pure functional structure
C)Matrix structure
D)Product structure
Q2) A type of organization that can result in inefficiencies because of duplication of resources across the organization is called
A)Pure project structure
B)Pure functional structure
C)Matrix structure
D)Product structure
Q3) Which statement is true regarding activities not on the critical path?
A)Usually cannot be delayed
B)Have less slack than activities on the critical path
C)Can delay a project if they are highly variable
D)Are used to crash project completion times
Q4) List at least (six principal factors contributors) to project success.
Q5) Explain the purpose of Gantt charts.
Q6) Explain the stages of the project life cycle.
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Chapter 19: Work Measurement, Learning Curves, and Standards
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Q1) For work sampling, p will never be known exactly since it is the population parameter that is being estimated.
A)True
B)False
Q2) Locksmith Inc. has an order from a bank for 50 specially designed safes, one for each bank branch. It is estimated that the first safe will require 75 hours of shop time and a 90% learning curve is expected. The labor rate is $15.00 per hour and the pricing policy of the company is to triple the labor cost of the order.
a. How many labor hours should the 50th unit require?
b. How many labor hours will the whole order require?
c. What is the customer's price for each safe?
Q3) The performance rating factor and allowances are based upon human judgment.
A)True
B)False
Q4) For a work sampling study, there is a 95% probability that the processing time of an activity has an error of less than 0.06 minutes. The best estimate we have for "p" is 0.30.
Determine the size sample that should be used for this work sampling study.
Q5) How do predetermined standards differ from time studies?
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Chapter 20: Queuing Analysis
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Sample Questions
Q1) ____ is the use of a criterion that allows new arrivals to displace members of the current queue and become the first to receive service.
A)Shortest Processing Time SPT)
B)A random queue discipline
C)Preemption
D)A reservation
Q2) Discuss three categories of information necessary to analyze a waiting line.
Q3) A flower shop has one employee in the front of the store to sell flowers out of the cooler. On Saturdays customers arrive every six minutes, on average. The employee can serve a customer every five minutes, on average. The owner of the store feels that if there are more than four customers in the store at one time, additional customers may not come in because the wait appears too long.
a. What is the chance of four or more customers being in the store at one time?
b. What is the total time in minutes) a customer spends in the store?
c. What is the average number of customers in the store?
Q4) Discuss the five key assumptions for the basic, single-channel waiting line model.
Q5) Describe at least four queue disciplines.
Q6) Contrast wait cost with server cost. Which is harder to estimate?
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Chapter 21: Modeling Using Linear Programming
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Q1) Discuss the concept of constrained optimization. Include some examples.
Q2) Explain the essence of a transportation problem.
Q3) If for a given (month overtime units O<sub>t</sub>) = under-(time units U<sub>t</sub>),
A)Non-negativity would not allow this
B)Only possible with subcontracting
C)There was no over- or under-time
D)Will work if one is positive and the other is negative in the same magnitude
Q4) If Activity C directly precedes both D and E on a project network and C can be crashed three( 3) times in using linear programming,
A)Crash time affects only C
B)Crash time affects only C and D
C)Crash time affects only C and E
D)Crash time affects both D and E
Q5) Constant terms in the objective function are called object function ____.
A)Variables
B)Decision solutions
C)Coefficients
D)Constraints
Q6) What characterizes a linear function?
Page 23
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Chapter 22: Simulation
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Q1) In regard to a simulation model for inventory management, all of the following are correct except
A)Results in an optimal solution with a large simulation
B)Many days of simulation run are needed to obtain meaningful results
C)Lead-time can vary
D)Assumes that a specific reorder point and order quantity have been selected
Q2) Which of the following is not an advantage of simulation?
A)Convenient experimental laboratory
B)Can perform 'what-if' studies
C)Don't have to disturb current process
D)Yields optimal solution
Q3) Under what situation would an analytical queuing model be used? When would a simulation model be used?
Q4) A simulator is a general purpose simulation model.
A)True
B)False
Q5) Discuss three advantages and three disadvantages of simulation models.
Q6) Define simulation and give some operations management examples.
Q7) Differentiate and explain the importance of verification and validation.
Page 24
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Chapter 23: Work Measurement, Learning Curves, and Standards
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Q1) The expected value concept weighs each payoff for an alternative in proportion to the likelihood that the payoff will occur.
A)True
B)False
Q2) With some modification, the decision rules for one-time decisions without event probabilities can be applied to situations where the payoff is cost.
A)True
B)False
Q3) Elements common to decision-making in all models do not include
A)Criteria
B)Knowledge about states of nature
C)Measures of benefit profit or loss) to the decision-maker
D)Expected Value EV)
Q4) Discuss the five characteristics of management decisions when decision analysis techniques should be utilized.
Q5) Define the four major elements of a decision problem.
Q6) In what type of situation would the expected monetary value criterion be useful? In what type situation would it not be useful?
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