Service Operations Management
Final Exam Questions
Course Introduction
Service Operations Management explores the strategic and tactical aspects of managing service-based organizations, focusing on the design, delivery, improvement, and innovation of service processes. The course examines key concepts such as service quality, customer experience, capacity planning, supply chain management, and technology integration. Through case studies and real-world examples, students learn how to optimize service performance, enhance customer satisfaction, and achieve operational excellence in diverse sectors including hospitality, healthcare, finance, and retail. Emphasis is placed on understanding the unique challenges of intangibility, variability, and customer participation inherent in service operations.
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) One of the precursors of operations management was the development of principles of scientific management which happened during the 1930's.
A)True
B)False
Answer: False
Q2) In the history of operations management the development of economic lot sizing models,including the EOQ model occurred in what decade?
A)1910's
B)1930's
C)1940's
D)1950-60's
E)1970's
Answer: A
Q3) Trying to maximize effectiveness and efficiency at the same time can create conflict.
A)True
B)False
Answer: True
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Chapter 2: Operations and Supply Strategy
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Q1) An operations and supply strategy involves decisions that relate to the design of a process and the infrastructure needed to support the process.
A)True
B)False
Answer: True
Q2) Operations and supply management is significant since it relates to some of the components of strategy.
A)True
B)False
Answer: False
Q3) Infrastructure decisions within operations and supply strategy include the selection of the appropriate technology,the role of inventory and the location of facilities.
A)True
B)False
Answer: False
Q4) The skills that differentiate a manufacturing or service firm from its rivals are called what?
Answer: Core capabilities or core competencies
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Page 4
Chapter 3: Project Management
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Q1) In a CPM analysis if you subtract the late finish from the early finish the result is the activity's slack time.
A)True
B)False
Answer: False
Q2) Describe how CPM handles the trade-offs between time and cost in the scheduling of a project?
Answer: This question can elicit a variety of responses.The "most correct" answers will deal with the issues set forth beginning on pages 73 and should include,as a minimum,the idea that each activity has a normal cost,normal time,crash cost and crash time specified;that the critical path is computed,that only activities on the critical path should be considered as candidates to "crash",that the critical path should be shortened at the least cost and that the new solution should be checked to determine whether the critical path has changed.
Q3) Upper level management must decide between pure,functional and matrix structures as ways to organize projects.
A)True
B)False
Answer: True
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Page 5
Chapter 4: Product and Service Design
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Sample Questions
Q1) A key tool of a quality function deployment team is the house of quality matrix.
A)True
B)False
Q2) Describe what rapid prototyping is and where it is particularly useful in the development process?
Q3) 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
Q4) Quality function deployment ?involves listening to customers to determine the characteristics of a superior product.
A)True
B)False
Q5) DFMA stands for design for manufacturing and assembly.
A)True
B)False
Q6) Describe what concurrent engineering teams are and what problems they address?
Page 6
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Chapter 5: Strategic Capacity Management
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Q1) Firms that make multiple products can produce the same number of each product with a given level of resource inputs and equal amounts of time.
A)True
B)False
Q2) The objective of strategic capacity planning is to determine the overall capacity level of capital intensive resources (including facilities,equipment and overall labor force size)that best supports the company's long-range competitive strategy.
A)True
B)False
Q3) A decision tree problem does not need probabilities or payoffs to generate a solution.
A)True
B)False
Q4) Maximum practical capacity is defined by the federal Bureau of Economic Analysis as "That output attained within the normal operating schedule of shifts per day and days per week including the use of high-cost inefficient facilities".
A)True
B)False
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Chapter 6: Process Analysis
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Q1) A triangle is conventionally used in a process flowchart to represent a storage area or queue.
A)True
B)False
Q2) Process analysis can help answer many important questions such as why change in a process is necessary.
A)True
B)False
Q3) A process flowchart uses which of the following symbols to represent a decision point in a flow diagram?
A)Rectangle
B)Arrow
C)Inverted triangle
D)Diamond
E)A dashed line
Q4) A service operation by its very nature is a make-to-stock type of production process.
A)True
B)False
Q5) The formula (Throughput time = Work-in-process/Throughput Rate)is known as what?
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Chapter 7: Manufacturing Processes
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Q1) The product-process matrix shows the relationship between process structures and product volume and product standardization characteristics.
A)True
B)False
Q2) A manufacturer has identified the options for acquiring a machined part.It can make the part on a numerically controlled lathe for $150 per unit (including materials. )It can make the part on a standard lathe for $250 per unit (also including materials. )It can make the part on a machining center for $50 per unit (also including materials. )The manufacturer can acquire a standard lathe for $10,000.It could acquire a numerically controlled lathe for $100,000.A machining center would cost $350,000.It has also found that it can purchase the part for $350 per unit?
Q3) Process selection refers to the strategic decision of choosing the volume of output to produce in a manufacturing facility depending upon the way that facility produces.
A)True
B)False
Q4) Give an example of a project layout?
Q5) Differentiate between a workcenter and a manufacturing cell?
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Page 9
Chapter 8: Service Processes
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Q1) The "service blueprint" is a classification of services.
A)True
B)False
Q2) Service guarantees can be used at the service design stage to focus the firm's delivery system on the things it must do well to satisfy the customer.
A)True
B)False
Q3) Which of the following is not part of the service strategy's operating focus (set of performance priorities)that help the service organization compete?
A)Service culture
B)Speed & Convenience
C)Price
D)Unique skills
E)Treatment of customer
Q4) Most services contain a mix of tangible and intangible attributes known as the service package which is the major output of the development process.
A)True
B)False
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Page 10
Chapter 9: Six Sigma Quality
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Q1) Why were ISO-9000 standards developed?
Q2) A Pareto chart as part of a six-sigma quality improvement process might be found in which DMAIC category?
A)Define
B)Measure
C)Analyze
D)Improve
E)Control
Q3) A flow chart as part of a six-sigma quality improvement process might be found in which DMAIC category?
A)Define
B)Measure
C)Analyze
D)Improve
E)Control
Q4) A typical manufacturing QC department has a variety of functions to perform including planning and budgeting for the QC program in a plant.
A)True
B)False
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Chapter 10: Supply-Chain Strategy
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Sample Questions
Q1) Which of the following functional areas in an organization do not directly support an effective mass customization program?
A)Human resources
B)Marketing
C)Finance
D)Manufacturing
E)Distribution
Q2) Outsourcing allows a firm to achieve an improved focus on its core competencies.
A)True
B)False
Q3) In Hau Lee's uncertainty framework to classify supply chains,a supply chain that has functional products and an evolving supply process is called which of the following?
A)Efficient
B)Forward looking
C)Agile
D)Risk hedging
E)Responsive
Q4) Name the transportation modes discussed in the textbook.
Q5) What is "design for logistics"?
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Chapter 11: Logistics and Facility Location
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Q1) Name the transportation modes discussed in the textbook.
Q2) A third-party logistics company is a firm that manages all or part of another company's product delivery operations.
A)True
B)False
Q3) Three distribution centers,A,B and C,are located at the following (X,Y)coordinates: A, (20,130);B, (180,0);and C, (200,200).A factory is to be constructed to distribute a new product through these warehouses.The expected annual volumes expected to be shipped through the three warehouses is forecast to be 20 million units through A,100 million through B and 50 million through C.Using the centroid method,approximately what should the coordinates of the new factory be?
X = 167,Y = 74
Q4) Which of the following is not a criterion that influences manufacturing plant or warehouse facility location decisions?
A)Proximity to customers
B)Historical cost
C)Infrastructure of a country
D)Quality of labor
E)Business climate
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Chapter 12: Lean Manufacturing
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Sample Questions
Q1) Which of the following are related to lean production?
A)A philosophy of waste elimination
B)Lean consumption
C)Never running out of inventory
D)The Waehi-Subaru method
E)Full use of capacity
Q2) 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?
Q3) One of the few JIT techniques that do not work well in service firms is demand-pull scheduling.
A)True
B)False
Q4) A Kanban control system uses a signaling device to regulate JIT flows.
A)True
B)False
Q5) Respect for people is a key to the Japanese improvement ideas in manufacturing.
A)True
B)False
Q6) What seven design principles guide the design of lean supply chains?
Page 14
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Chapter 13: Operations Consulting Reengineering
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Q1) SWOT stands for Strengths,Weaknesses,Opportunities and Threats.
A)True
B)False
Q2) Complex consulting engagements that require a great deal of innovation and creativity are sometimes called "gray hair" projects because they require a great deal of experience on the part of the consultants.
A)True
B)False
Q3) In causal loop analysis,reinforcing loops generate exponential growth or collapse,in which the growth or collapse continues at an ever-increasing rate.
A)True
B)False
Q4) Reengineering is about achieving a significant improvement in processes so that contemporary customer requirements of quality,speed,innovation,customization and service are met.
A)True
B)False
Q5) List three managerial guidelines for implementation of reengineering.
Q6) What is the goal of consulting firms?
Page 15
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Chapter 14: Enterprise Resource Planning Systems
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Q1) The mySAP Supply Chain Management (SCM)product organizes its software into three planning scenarios that represent the basic planning needs of the organization.What are these three planning scenarios?
Q2) Implementing ERP may require major changes in the way a company is run. A)True B)False
Q3) Name the four major modules in SAP AG's R/3 software?
Q4) 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?
Q5) The technical aspects of SAP software are a closely guarded secret.
A)True B)False
Q6) Why does one have to thoroughly understand conventional approaches to problems when they can be solved by ERP computer programs?
Q7) An enterprise resource planning system,when implemented correctly,links most of the areas of a business together.
A)True B)False
16
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Chapter 15: Demand Management and Forecasting
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Q1) A company has calculated its running sum of forecast errors to be 400 and its mean absolute deviation is exactly 25.What is the company's tracking signal?
Q2) If the intercept value of a linear regression model is 40,the slope value is 40 and the value of X is 40,which of the following is the resulting forecast value using this model?
A)120
B)1,600
C)1,640
D)2,200
E)64,000
Q3) In the simple exponential smoothing forecasting model you need at least 100 observations to set the weight.
A)True
B)False
Q4) Cyclical influences on demand are often expressed graphically as a linear function that is either upward or downward sloping.
A)True
B)False
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Chapter 16: Aggregate Sales and Operations Planning
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Q1) The aggregate operations planning variable "inventory on hand" refers to the balance of unused inventory carried over from the previous time period.
A)True
B)False
Q2) The widespread adoption of computing technology has led to the virtual abandonment of simple cut-and-try charting and graphical methods to develop aggregate operations plans.
A)True
B)False
Q3) Which of the following aggregate operations planning methods can handle any number of variables,gives an optimal solution,but is difficult to formulate?
A)Linear decision rules
B)Linear programming
C)Graphing and charting
D)Simulation
E)Cut and try
Q4) The sales and operations planning process consists of a series of meetings.
A)True
B)False
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Chapter 17: Inventory Control
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Q1) If it takes a supplier four days to deliver an order once it has been placed and the standard deviation of daily demand is 10,which of the following is the standard deviation of usage during lead time?
A)10
B)20
C)40
D)100
E)400
Q2) Which of the following is not one of the categories of manufacturing inventory?
A)Raw materials
B)Finished products
C)Component parts
D)Just-in-time
E)Supplies
Q3) Using the probability approach we assume that the demand for inventory over a period of time is normally distributed.
A)True
B)False
Q4) What is "inventory accuracy",why is it important and how does inaccuracy occur?
Q5) What are some of the possible benefits of decreasing inventory order cycle time?
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Chapter 18: Material Requirements Planning
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Q1) Which of the following is an input to the master production schedule?
A)Prototype products from product development
B)Aggregate component schedule
C)Peg records
D)Exception reports
E)Forecasts of demand from random customers
Q2) How does flow manufacturing differ from using MRP alone?
Q3) Which of the following is the planned-order release using an MRP program if the gross requirement is 670 and the inventory on hand is 600?
A)670
B)600
C)530
D)70
E)None of the above
Q4) 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
Page 20
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Chapter 19: Scheduling
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Q1) Theoretically,all schedules are feasible when finite loading is used.
A)True
B)False
Q2) A material requirements planning system is an example of which of the following scheduling systems?
A)Infinite loading,backward scheduling
B)Finite loading,backward scheduling
C)Infinite loading,forward scheduling
D)Finite loading,forward scheduling
E)None of the above
Q3) Which of the following is a priority rule used to schedule the sequence of jobs in a production operation?
A)Last come first served
B)Last complaint first
C)First on hand first
D)Longest slack time first
E)Parts on hand first
Q4) What is dispatching?
Q5) What is the difference between finite and infinite loading?
Q6) 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 which of the following is an operational measurement that can be used to measure the firm's ability to make money?
A)Net profit
B)Throughput
C)Return on investment
D)Sales
E)Direct labor hours
Q2) In discussing batch size on an assembly line the text makes the point that "one" and "infinity" are equally correct Answers.How can this be?
Q3) According to Dr.Goldratt,what is the goal of the firm?
Q4) Looking at the loads that are placed on each resource by the products that are scheduled through them is called process flow profiling.
A)True
B)False
Q5) A synchronous manufacturing system does not have excess capacity throughout the system,except for a bottleneck.
A)True
B)False
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Chapter 21: Linear Programming Using the Excel Solver
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Q1) What is a "shadow price"?
Q2) Linear programming is a single-objective model,meaning that it has a single objective function to be maximized or minimized.
A)True
B)False
Q3) Finding the optimal way to use aircraft and their operating crews to provide transportation services to customers to be moved between different locations is one kind of problem that can be solved by linear programming.
A)True
B)False
Q4) The number of decision variables allowed in a linear program is which of the following?
A)Less than 5
B)Less than 72
C)Less than 512
D)Less than 1,024
E)Unlimited
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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Q1) Which of the following is a reason that there are disparities between a firm's learning curve rate and that of its industry?
A)Companies don't always report sensitive data to outside agencies accurately
B)Learning curves don't reflect organizational learning
C)Procedural differences in the manner that data were aggregated
D)The starting points for different firms were different
E)The cumulative number of units produced is different
Q2) If a person performing a task has been achieving a 95 percent learning curve and you know that the task will end after the 100<sup>th</sup> unit,the last unit produced will take 71.12 percent as much time as the first unit.
A)True
B)False
Q3) You time someone completing a single task the first time at 100 minutes and the fourth time they do the task it takes 81 minutes.You should use a 90 percent learning curve to estimate the length of time this worker will take to complete this task in the future.
A)True
B)False
Q4) What are some of the possible factors that stimulate learning?
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Chapter 23: Job Design Work Measurement
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Q1) You need a standard time to determine normal time in a time study analysis.
A)True
B)False
Q2) Which of the following is not a disadvantage of specialization?
A)Low wages due to ease of substitutability of labor
B)Difficulty in controlling quality because no one has responsibility for entire product
C)Boredom stemming from repetitive nature of work
D)Worker dissatisfaction leading to hidden costs
E)Little gratification from work itself because of small contribution to each item
Q3) When the textbook presented the topic of job design decisions,the "what" of these decisions concerned the tasks to be performed.
A)True
B)False
Q4) Employees should be able to exercise some discretion and decision making in doing their work.
A)True
B)False
Q5) What are the four basic methods for measuring work and setting standards?
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Chapter 24: Waiting Line Analysis
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Q1) Buying items at a department store where there are a large number of checkout counters features which type of queuing system line structure?
Q2) In getting your first driver's license,several steps had to be taken.First,you took the written test.Then you took the driving test.Then your photograph was taken and the license made.What was the queuing system line structure in the Department of Motor Vehicles?
Q3) A single toll booth on a one-lane bridge is which type of queuing system line structure?
Q4) 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
Q5) Are customer arrivals drawn from finite and infinite populations analyzed differently? Why or why not?
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Chapter 25: Process Capability and Spc
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Q1) In acceptance sampling,the value for the acceptance number (c)is determined by the interaction of the acceptable quality level (AQL),the lot tolerance percent defective (LTPD),the probability of rejecting a high quality lot (alpha)and the probability of accepting a low quality lot (beta).
A)True
B)False
Q2) All else being equal,how large is the effect of lot size on sample size?
Q3) The capability index (C<sub>pk</sub>)calculates the percentage of items being produced within specifications.
A)True
B)False
Q4) For which of the following should we use a "p" chart to monitor process quality?
A)Defective electrical switches
B)Errors in the length of a pencil
C)Weight errors in cans of soup
D)Temperature of entrees in a restaurant
E)Letter grades on a final examination
Q5) The Greek letter alpha is associated with consumer's risk.
A)True
B)False
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Chapter 26: Simulation
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Q1) Run length and run time are the same thing.
A)True
B)False
Q2) When we have performed a simulation run of a model another simulation experiment might be called for that requires a change in parameters or variables.
A)True
B)False
Q3) Simulation is used in manufacturing management to determine production schedules,inventory Levels and to do capacity planning.
A)True
B)False
Q4) The more time,money and effort you spend developing a simulation model the more likely you are to achieve useful results.
A)True
B)False
Q5) What is the most common approach to determining the appropriate run length of a simulation?
Q6) What two kinds of probability distributions can be used in a simulation?
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