Service Operations Management
Exam Answer Key
Course Introduction
Service Operations Management explores the strategies, principles, and techniques involved in designing, delivering, and improving service processes in various industries. This course covers key topics such as service process design, capacity planning, demand management, quality control, and the use of technology in service operations. Students will learn how to manage the unique challenges of service environments, including customer participation, variability in demand, and the intangibility of service offerings. Through case studies and practical applications, the course aims to develop skills in optimizing service delivery, enhancing customer satisfaction, and achieving operational excellence in sectors such as hospitality, health care, finance, and retail.
Recommended Textbook Operations and Supply Management 12th Edition by F. Robert Jacobs
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Chapter 1: Introduction to the Field
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Q1) A visit to a hair salon produces a tangible result-a new appearance for the customer.Hence,the output of hair salons is a manufactured good,not a service.
A)True
B)False
Answer: True
Q2) Because the text states that "at the most fundamental level,operations and supply management is about getting work done quickly,efficiently,without error and at low cost" there is little in the field of operations management that relates to overall corporate strategy.
A)True
B)False
Answer: False
Q3) One of the current issues of operations and supply management is decreasing "commoditization" of suppliers.
A)True
B)False
Answer: False
Q4) What United States National Quality Award was started in 1987?
Answer: The Baldridge Award
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Chapter 2: Operations and Supply Strategy
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Q1) The total output from a production system in one day is 500 units and the total labor necessary to produce the 500 units is 350 hours.Using the appropriate productivity measure,which of the following numbers represents the resulting productivity ratio?
A)1.000
B)1.428
C)0.700
D)0.411
E)None of the above Answer: B
Q2) An effective operations and supply strategy must be integrated with the organization's corporate strategy.
A)True
B)False Answer: True
Q3) Productivity is a relative measure.
A)True
B)False Answer: True
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Chapter 3: Project Management
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Sample Questions
Q1) The second step in managing a project is writing the Statement of Work (SOW).
A)True
B)False
Answer: False
Q2) Which of the following is a graphic project report used in project management?
A)Project proposal
B)Approved project plan
C)Humphrey chart
D)Equipment and supplies chart
E)Cost and performance tracking schedule
Answer: E
Q3) You have just performed a Single Time Estimate CPM analysis and have found that more than one path through the project network has zero slack values.What can you conclude?
A)You have incorrectly performed the analysis
B)You have multiple critical paths
C)Only one path is optimal
D)More than one path is optimal
E)The project will not be completed by the desired time
Answer: B
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Chapter 4: Product and Service Design
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Sample Questions
Q1) Sensitivity analysis of the Base-Case Financial Model is a useful tool for which of the following reasons?
A)To determine how long the development process can profitably last
B)To understand how many technical people are needed to make the project a success
C)To help understand the basic trade-offs of resources committed and cash received
D)To identify the necessary product launch date
E)To set marketing and sales budgets
Q2) Economic analysis of product development projects must evaluate which of the following:
A)Planned profitability of the product
B)Expected market share to be attained
C)Net present value of profits
D)Timing and amount of net cash flow
E)Demand elasticity of the product
Q3) Specialized design firms tend to have highly developed processes that support the needs of particular industries.
A)True
B)False
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Chapter 5: Strategic Capacity Management
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Sample Questions
Q1) When plotted on a graph,the experience curve can't be expressed as logarithm.
A)True
B)False
Q2) The capacity utilization rate is found by dividing best operating level by capacity used.
A)True
B)False
Q3) In solving a decision tree problem,calculations start at the ends of the "branches" of the tree and work backwards to the base "trunk" of the tree.
A)True
B)False
Q4) Low rates of capacity utilization in service organizations are never appropriate. A)True B)False
Q5) The frequency of additions to productive capacity should balance the costs of upgrading too frequently and the costs of upgrading too infrequently.
A)True B)False
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Chapter 6: Process Analysis
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Sample Questions
Q1) Pacing in production processes refers to the fixed timing of the movement of items through the process.
A)True
B)False
Q2) A diamond is conventionally used in a process flowchart to represent a storage area or queue.
A)True
B)False
Q3) Setup time is the time required to prepare a process to produce a particular item.
A)True
B)False
Q4) Benchmarking refers to the practice of comparing the production metrics of one firm with the production metrics of another.
A)True
B)False
Q5) What might you do in designing a two-stage process where each process had equal average process time but with high process time variability in the first stage and low variability in the second stage? Why?
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Chapter 7: Manufacturing Processes
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Sample Questions
Q1) The product-process matrix shows the relationship between process structures and product volume and product standardization characteristics.
A)True
B)False
Q2) One trade-off illustrated by the product-process matrix is between flexibility and cost.
A)True
B)False
Q3) The difference between an assembly line process flow and a continuous process flow is that the assembly line the flow is discrete rather than continuous.
A)True
B)False
Q4) The choice of which process structure to select is generally a function of the volume requirements for the product.
A)True
B)False
Q5) Give an example of a project layout?
Q6) Differentiate between a workcenter and a manufacturing cell?
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Chapter 8: Service Processes
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Sample Questions
Q1) Which of the following are alternative possible service encounters included in the Service-System Design Matrix?
A)Mail contact
B)Warranty
C)Sales call
D)Field service
E)None of the above
Q2) Which of the following is not a strategic use of the service-system design matrix?
A)Enabling systematic integration of operations and marketing strategy
B)Design of the service package
C)Comparing how other firms deliver specific services
D)Indicating evolutionary or life cycle changes that might be in order as the firm grows
E)Clarifying exactly which combination of service delivery the firm is in fact providing
Q3) Customer contact refers to creation of the service.
A)True
B)False
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Chapter 9: Six Sigma Quality
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Sample Questions
Q1) The term "conformance quality" refers to the relative level of performance of a product as compared to competing products.For instance,certain luxury sedans are said to be of "higher quality" than some low-priced sub-compact automobiles.
A)True
B)False
Q2) The Malcolm Baldrige award selection process helps improve quality and productivity by which of the following means?
A)Stimulating foreign based suppliers of American companies to improve quality
B)Reporting quality levels among American firms
C)Identifying American firms with the most difficult quality problems
D)Providing feedback to applicants by the examiners
E)Helping Baldrige award winners increase their sales
Q3) When a qualified national or international standards body or similar certifying agency audits and certifies that a company is ISO-9000 compliant,the form of certification is called what?
Q4) Why were ISO-9000 standards developed?
Q5) A DMPO is essentially the same thing as a DMAIC.
A)True
B)False
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Chapter 10: Supply-Chain Strategy
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Sample Questions
Q1) Which of the following of Fisher's product categories includes fashionable clothing,personal computers and other products that typically have a very brief life cycle?
A)Functional products
B)Dysfunctional products
C)Innovative products
D)Bullwhip products
E)Low value-density products
Q2) What is the effect of the lack of synchronization among supply-chain members called?
Q3) If the weeks of supply is 10 and the average aggregate inventory value is $1,000,000,what is the cost of goods sold?
Q4) Value density is an important measure when deciding where items should be stocked geographically and how they should be shipped.
A)True B)False
Q5) The value of an item per pound of weight is called value density. A)True B)False
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Chapter 11: Logistics and Facility Location
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Sample Questions
Q1) Facility location decisions are made using analytical techniques that are able to weigh a large number of different variables equally.
A)True
B)False
Q2) Facility location analysis considers the competitive imperative of locating near the appropriate labor pool to take advantage of high technical skills.
A)True
B)False
Q3) Facility location analysis considers the competitive imperative of lowest total cost.
A)True
B)False
Q4) Which of the following is not an infrastructure criteria used in facility location analysis?
A)Adequate school system
B)Adequate health care
C)Adequate transportation
D)Adequate low cost labor
E)Adequate public utility systems
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Chapter 12: Lean Manufacturing
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Sample Questions
Q1) Value stream mapping is a technique that aims to eliminate waste in a process.
A)True
B)False
Q2) In Japanese manufacturing automation and robotics are used extensively to perform dull or routine jobs so employees are free to focus on important improvement tasks.
A)True
B)False
Q3) As lean production methods reduce change-over times and thus enable smaller economic lot sizes and less work-in-process inventory is the importance of quality increased or decreased? Why?
Q4) In the textbook Toyota's Fujio Cho identified which of the following types of waste to be eliminated?
A)Excess quality
B)Overproduction
C)Underproduction
D)Environmental
E)Over-thinking
Q5) Explain why lean manufacturing requires a stable demand environment.
Q6) Name Fujio Cho's seven prominent types of waste to be eliminated.
Page 14
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Chapter 13: Operations Consulting Reengineering
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Q1) Issue trees are used as problem definition tools to structure or map the key problems to be investigated and provide a working initial hypothesis as to the likely solution to the problem.
A)True
B)False
Q2) Consulting has become one of the major areas of employment for business graduates.
A)True
B)False
Q3) Fredrick W.Taylor is credited with being which of the following?
A)Being the father of management consulting
B)Being the father of statistical quality control
C)Being the father of Elizabeth Taylor
D)Being the father of the American Production and Inventory Control Society
E)Being the father of business process engineering
Q4) The main operational goal of consulting firms is to satisfy the client's needs.
A)True
B)False
Q5) Identify the five forces which help evaluate a firm's competitive position in light of the structure of its industry.
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Chapter 14: Enterprise Resource Planning Systems
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Sample Questions
Q1) SAP modules are updated twice each year.
A)True
B)False
Q2) Just-in-time or kanban practices can not be supported by SAP.
A)True
B)False
Q3) Name the four major modules in SAP AG's R/3 software?
Q4) Name the six components of the SAP AG's R/3 operations module?
Q5) What are the four major "procurement and logistics" functions handled by the operations segment of SAP AG's R/3 ERP software?
Q6) If SAP users wanted to build their own Internet applications on top of those provided by SAP they could use a product known as what?
Q7) Orders taken over the internet pose a threat to data integrity in an ERP system.
A)True
B)False
Q8) One of SAP's ERP modules is the global alliance module
A)True
B)False
Q9) What are the three tiers in the SAP Client/Server configuration?
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Chapter 15: Demand Management and Forecasting
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Sample Questions
Q1) In general,which forecasting time frame compensates most effectively for random variation and short term changes?
A)Short-term forecasts
B)Quick-time forecasts
C)Long range forecasts
D)Medium term forecasts
E)Rapid change forecasts
Q2) Focus forecasting is an approach to forecasting that tries several rules that seem logical and easy to understand to project past data into the future.
A)True
B)False
Q3) For every forecasting problem there is one best forecasting technique.
A)True
B)False
Q4) Focus forecasting is the most accurate of all forecasting models.
A)True
B)False
Q5) Distinguish between "dependent" and "independent" demand?
Q6) Name the four basic types of forecasting?
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Chapter 16: Aggregate Sales and Operations Planning
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Q1) An advantage of the Level strategy for aggregate operations planning is which of the following?
A)Total costs through the entire system are minimized
B)There is a smooth flow throughout the production system
C)There is variety for the workers through the mixing of models produced
D)The risk of backorders is minimized
E)Customer service is improved
Q2) The International Aggregate Planning Society (IAPS)has developed aggregate operations planning guidelines which are followed by a majority of manufacturing firms.
A)True
B)False
Q3) From an operational perspective yield management is least effective under which of the following circumstances?
A)Demand can be segmented by customer
B)The product can be sold in advance
C)Demand is highly variable
D)Fixed costs are high and variable costs are low
E)Demand is stable and close to capacity
Q4) What are the four costs relevant to the aggregate operations plan?
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Chapter 17: Inventory Control
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Q1) The fixed-order quantity inventory model favors less expensive items because average inventory is lower.
A)True
B)False
Q2) Fixed-time period inventory models generate order quantities that vary from time period to time period,depending on the usage rate.
A)True
B)False
Q3) Which of the following inventory systems forces a review of the inventory Level at a fixed frequency (such as weekly)and orders replacement supply if the Level has dropped below some amount?
A)ABC analysis
B)Optional replenishment system
C)Fixed-order quantity
D)Two-bin system
E)Fixed time period
Q4) In inventory models,high holding costs tend to favor high inventory Levels.
A)True B)False
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Chapter 18: Material Requirements Planning
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Q1) To implement a MRP system successfully,a high degree of inventory and bill-of-material accuracy is required.This may involve significant change in how a firm operates.
A)True
B)False
Q2) What is the name given to the manufacturing software that combines MRP and JIT logic?
Q3) Which of the following is an input to the master production schedule (MPS)?
A)Inventory records file
B)The aggregate plan
C)The bill of materials
D)The exception report
E)Planned order schedules
Q4) MRP is based on dependent demand.
A)True
B)False
Q5) Time fences increase productivity by reducing the time spent waiting for each product to be produced.
A)True
B)False
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Chapter 19: Scheduling
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Q1) Which of the following is a principle of work center scheduling?
A)Once started a job can and should be finished even if unavoidably interrupted
B)Reschedule every day
C)Achieve certainty in standards and routings
D)Give work centers less to do then their maximum
E)Assign the first worker to all of the days that require staffing
Q2) A work center has five jobs assigned to it.They are labeled,in the order of their arrival in the shop,as jobs A,B,C,D and E.The work center may work on only one job at a time and must complete any job it starts before starting another job.Job A has a processing time of 6 days and is due to the customer in 9 days.Job B has a processing time of 2 days and is due in 16 days.Job C has a processing time of 4 days and is due in 10 days.Job D has a processing time of 3 days and is due in 7 days.Job E has a processing time of 5 days and is due in 12 days.Using the slack time remaining priority rule,in what order should these jobs be undertaken?
Q3) Initiating performance of scheduled work is commonly termed "dispatching" of orders.
A)True
B)False
Q4) What is sub-optimization in scheduling?
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Chapter 20: Constraint Management
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Q1) According to the theory of constraints a bottleneck is any resource whose capacity is greater than the demand placed on it.
A)True
B)False
Q2) JIT requires work-in-process when used with kanban so there is inventory to pull.When compared to synchronous manufacturing this is viewed as a negative aspect of JIT.
A)True
B)False
Q3) You have run a capacity resource profile on your shop.Products have been routed sequentially through resources A,B,C & D.The capacity resource profile tells you that recourse A is scheduled at 95 percent of capacity,recourse B at 80% of capacity,recourse C at 130% of capacity and recourse D at 100% of capacity.Assuming that the data we used to calculate the capacity resource profile was reasonably accurate,what would we expect to find when we go out to the shop?
Q4) Name the five kinds of time that make up production cycle time according to Dr.Eli Goldratt's theory of constraints.
Q5) Where should an in-process quality inspection be placed? Why there?
Q6) How many rules of make up Goldratt's Rules of Production Scheduling?
Page 22
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Chapter 21: Linear Programming Using the Excel Solver
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Q1) There are other related mathematical programming techniques that can be used instead of linear programming if the problem has a unique characteristic.If the problem is best solved in stages or time frames we should use which of the following methodologies?
A)Goal programming
B)Temporal programming
C)Integer programming
D)Genetic programming
E)Dynamic programming
Q2) Finding the optimal product mix where several products have different costs and resource requirements cannot be solved using linear programming.
A)True
B)False
Q3) Two of the five essential conditions for linear programming to pertain to a real world problem are linearity and homogeneity.Discuss why these are difficult to achieve in the real world and how they might limit your confidence in the solution?
Q4) What is a "shadow price"?
Q5) What is the shadow price of a non-binding constraint? Why is this so?
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Chapter 22: Learning Curves
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Sample Questions
Q1) An assumption of learning curves is that the time required to complete a unit will increase at an increasing rate as the cumulative number of units completed increases.
A)True
B)False
Q2) What are some of the possible factors that stimulate learning?
Q3) A company can produce a small lot of products the first time at a cost of $3,000.If their 65 percent Learning Curve allows them to reduce their costs on each lot,what is the cost of producing the 20<sup>th</sup> lot?
A)$60,000
B)$18,585
C)$1,950
D)$466.20
E)$155.40
Q4) Why are learning curves useful in business?
Q5) On a learning curve plot,the time per unit is usually displayed on the vertical axis. A)True
B)False
Q6) What is a learning curve?
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Chapter 23: Job Design Work Measurement
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Q1) In work sampling,which one of the following main issues must be decided before undertaking the study?
A)How much money will be saved
B)How many observations are necessary
C)What is the ratio of time to money savings
D)Whether a stop watch or video camera should be used
E)What data shall be collected
Q2) If the normal time for a job is 30 minutes and the allowances for the job include 10 percent for personal needs,5 percent for unavoidable work delays and 3 percent for work fatigue,which one of the following comes closest to the standard time for this job?
A)14 minutes
B)24 minutes
C)32 minutes
D)35 minutes
E)38 minutes
Q3) Leading organizations use job enrichment and sociotechnical systems to improve the quality of jobs.
A)True
B)False
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Chapter 24: Waiting Line Analysis
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Q1) Buying a ticket for a college football game where there are multiple windows to buy the ticket at features which type of queuing system line structure?
A)Single channel,single phase
B)Single channel,multiphase
C)Multichannel,single phase
D)Multichannel,multiphase
E)None of the above
Q2) Assume the service rate for a queue in a truck-loading operation is 2 trucks per hour.Using the infinite queuing notion for the models presented in the textbook which of the following is the average service time?
A)2 hours
B)1 hour
C)0.5 hours
D)0.25 hours
E)None of the above
Q3) A tellers' window in a bank is an example of a single channel,multiphase queuing system.
A)True
B)False
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Chapter 25: Process Capability and Spc
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Q1) An example of assignable variation in a production system may be that workers are not identically trained.
A)True
B)False
Q2) Variation that is inherent in a production process itself is called assignable variation.
A)True
B)False
Q3) If you are going to develop an "X-bar" chart based on range statistics and you are using a sample size of 12 for your charting purposes.Which of the following is the A2 factor for the "X-bar" chart?
A)0.37
B)0.31
C)0.27
D)0.22
E)0.18
Q4) One-hundred percent inspection is justified when the cost of inspection is low.
A)True
B)False
Q5) You have 75 total defects from 100 different samples of 15.What is p?
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Chapter 26: Simulation
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Q1) Which of the following is an example of General Purpose Simulation Software?
A)Link Trainer Programs
B)SIMSCRIPT II.5
C)SIM-Central
D)Fortran
E)Visual Basic
Q2) In modeling a simulation random numbers from 00 to 99 are assigned with the intervals determined from frequency distributions for each behavior occurrence.If there are two behaviors,X and Y,out of 50 tallies,on behavior X you record 20 tallies and on behavior Y you record 30 tallies.Which of the following is a correct random number interval for behavior X?
A)00 to 19
B)01 to 20
C)00 to 39
D)41 to 61
E)45 to 100
Q3) Run length and run time are the same thing.
A)True
B)False
Q4) What are the major phases of a simulation study?
Page 28
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