NOTES TO REVIEW – SUMMARY

OPERATIONS MANAGEMENT

PART ONE

1. What term describes a vertical expansion of job duties in order to give the worker more responsibility?
a. Job enlargement b. Job rotation c. Job enrichment d. Job design

2. What are the two basic types of production systems?

a. Automated and manual c. Normal and continuous process
b. Intermittent and non-intermittent process d. Continuous process and batch

3. What type of process would a paper mill be most likely to use?

a. Continuous flow b. Project c. Job shop d. Flow shop

4. What technique deals with the problem of supplying sufficient facilities to production lines or individuals that
require uneven service?
a. Supply-demand theory b. PERT c. Inventory theory d. Queuing theory

5. A manufacturer has been receiving excessive numbers of defective standard machine parts from a vendor on a
regular basis. What is the most effective way to design a formal inspection system for incoming parts?
a. Queuing analysis c. Statistical quality control
b. Time series analysis d. Regression analysis

6. A set of simultaneous equations that has more variables than constraints has
a. no solution b. an infinite number of solutions c. a finite solution d. an infinite solution

7. In a PERT/CPM network, computing the critical path requires

a. determining the total project duration
b. assigning the earliest finish time for an activity as the earliest start time for the next
c. that the latest finishing time for an activity not delay the overall project beyond initial expectation
d. a sophisticated and complex computer program

8. At the completion of the forward and backward passes, the slack for an activity is given by the
a. difference between early start and early finish c. difference between latest start and early finish
b. difference between early start and latest finish d. amount of idle labor on the critical path

9. What type of control chart is used to monitor the number of defects per unit?
a. p-chart b. R-chart c. c-chart d. x-bar chart

10. A project has three paths: A—B—C has a length of 25 days. A—D—C has a length of 15 days. A—E—C has a
length of 20 days. Which of the following statements is correct?
a. A—D—C is the critical path. c. The expected duration of the project is 25 days.
b. A—B—C has the most slack. d. The expected duration of this project is 60 days.

11. The operating characteristic (OC) curve shows the probability of

a. rejection for every possible true percentage of c. making type I errors for various percentages of
defectives defectives
b. acceptance for every possible true percentage of d. none of the above
defectives
12. If an artificial variable remains in the solution with a positive value after the stopping criterion has been reached,
the problem
a. is infeasible b. is optimal c. needs a new basis d. has more than one solution

13. What are the two sources of costs in queuing analysis?

a. Arrivals and departures c. Waiting customers and capacity
b. Arrivals and idleness d. Equipment breakdowns and departures

14. The transportation model method that is used to evaluate location alternatives minimizes total
a. sources b. destinations c. capacity d. shipping costs

15. What is simulation?

a. A quick solution method to problem-solving c. A graphical method to problem-solving
b. A formalized deterministic approach to problem- d. A trial-and-error approach to problem-solving
solving

16. What priority rule is being used when jobs are processed according to the lowest ratio of due date to remaining
processing time?
a. CR (critical ratio) c. FCFS (first come, first served)
b. EDD (earliest due date first) d. S/O (least slack per operation first)

17. Moving from the aggregate plan to a master production schedule requires
a. rough cut capacity planning b. sub-optimization c. disaggregation d. strategy formulation

18. Which of the following statements is true of Lean-Six Sigma?

a. Lean principles focus on advanced statistical methods.
b. Lean principles and Six-Sigma are separate bodies of knowledge
c. Lean principles have been developed over a lengthy period of time.
d. Lean principles include the 5Ss framework and practices.

19. When the flow of materials is variable

a. layout by process is most suitable c. layout by fixed position is most suitable
b layout by product is most suitable d. line balancing is most suitable

20. A fixed interval system

a. adds the same predetermined amount to inventory each time replenishment occurs
b. is suitable for joint replenishment items
c. is triggered at the reorder level
d. requires perpetual monitoring of inventory records

PART TWO

1-Malcolm Baldrige national quality award is for (MBNQA)

a. Total Quality Management c. Total Productive Maintenance
b. International Standard Organization d. Total Quality Control

2-The process mapping is a ______ diagram.

a. Data flow c. Circular
b. Work flow d. Audit

3-Control chart is a
a. Process monitoring tool c. Both (a) and (b)
b. Process control tool d. None of the above

4-The objective of ISO-9000 family of Quality management is

a. Customer satisfaction
b. Employee satisfaction
c. Skill enhancement
d. Environmental issues
5-Total Quality Management (TQM) focuses on

a. Employee c. Both (a) and (b)

b. Customer d. None of the above

6-Which of the following is responsible for quality objective?

a. Top level management c. Frontline management
b. Middle level management d. All of the above

7-The following is (are) the machine down time.

a. Waste d. All of the above
b. No material
c. Breakdown
8-TQM & ISO both focuses on
a. Customer c. Supplier
b. Employee d. All of the above

9-According to Deming, Quality problems are

a. Due to management
b. Due to method
c. Due to machine
d. Due to material

10-While setting Quality objective, ________ to be considered.

a. Material quality
b. Customer need
c. Market demand
d. All of the above

12-_______ helps organization reduce employee turnover and absenteeism.

a. Job design
b. Training & development
c. Wage revision
d. All of the above

13-CMM stands for

a. Capability maturity model c. Capability measuring model
b. Capability monitoring model d. Capability matching model

14-While setting Quality objective, ________ to be considered.

a. Customer need c. Supplier need

b. Organizational need d. Worker need

15-Which of the following is for Environment management?

a. ISO-9000
b. ISO-14000
c. ISO-26000
d. ISO-31000
 PART THREE

1. The total quality approach has which of the following characteristics?

A. Teamwork C. Confusion and poor leadership
B. Obsession with quantity D. One employee in charge
2. Which of the following certifications is for managers who lead and champion continual process
improvement initiatives?
A. Calibration technician C. Manager of Quality/Organizational
B. Six Sigma Green Belt Excellence
D. Quality Process Analyst
3. Of the trends listed below, which one increases the level of globalization in business?
A. Growing irrelevance of distance. C. Quality of the product.
B. Shifts in the interest rates. D. Rise of small towns.
4. Which of the following statements apply when developing a mission statement?
A. The how-to statements. C. Be brief, but comprehensive.
B. Describe the “who, what, and where” of D. Choose wording that is simple.
the organization.
5. Which of the following statements best describe the acronym SWOT?
A. Specific, Witness, Opportunities, and Time. D. Strategic, Weaknesses, Objectives, and
B. Single, Weaknesses, Occasion, and Tactics. Tactics.
C. Strengths, Weaknesses, Opportunities, and
Threats.
6. Strategic management is
A. Creative thinkers who look at their business environment from a different perspective.
B. Expansive and wasteful.
C. Constantly seeking gaps in the marketplace that their companies can fill.
D. Management that bases decisions within an ethical framework.
7. Which of the following statements is true concerning strategies used to execute a strategic plan?
A. Organizations should communicate at all C. Adjust to administrative barriers.
times. D. Be flexible and improves
B. Consult with only managers.
8. Which of the following strategies is important when executing a strategic plan?
A. Review the plan with customers. C. Form an application task force.
B. Identify advocates and resisters. D. Activate the steering committee.
9. To promote successful execution of strategies, organizations should undertake which of the following
strategies?
A. Eliminate administrative barriers C. Hold a stakeholder’s gap analysis
B. Conduct a secondary SWOT analysis D. Contract with an execution specialist
10. The concepts of trust, integrity, and _______ are part of the value system of total quality.
A. Morality B. Responsibility C. Trust D. Legality
11. Which of the following is not a value that leads to peak performance and excellence?
A. Creativity B. Quality C. Dependability D. Opportunity
12. Managers have three main responsibilities in regard to ethics. Which of the following is NOT one of those?
A. They are responsible for creating an internal environment that promotes, expects, and rewards ethical
behavior.
B. They are responsible for helping employees make ethical choices.
C. They are responsible for setting an example of ethical behavior.
D. They are responsible for helping employees follow through and exhibit ethical behavior after the
appropriate choices have been made.
13. When handling an ethical dilemma, managers should select the option that will most likely:
A. Pass the various ethics tests C. Set the best example for employees
B. Build strength in the organization D. None of the above
14. When providing ethics training, it is important to:
A. Facilitate, don’t preach C. Highlight practical applications
B. Stimulate discussion D. All of the above are important
15. An organization’s responsibilities for ensuring ethical behavior include:
 A. Paying whistleblowers to speak up
B. Creating and ethical environment
C. Establishing in-house courts and juries
D. Refusing to talk to the media

PART FOUR

1. Operations management is part of a production system that can be described in the following manner:
Organization: inputs→processes→outputs.
Which one of the following correctly describes a production system?
A) airline: pilots→planes→transportation
B) bank: tellers→computer equipment→deposits
C) furniture manufacturer: wood→sanding→chair
D) telephone company: satellites→cables→communication

2. Table 1.1 You are the Production Manager for the toy manufacturing process at the ABC Company.

LUMBER ABC TOY TOY STORE AT

MANUFACTURING THE MALL
COMPANY COMPANY

Use the information provided in Table 1.1.

An example of an internal customer is:
A) The lumber company B) The Receiving Department at ABC
C) The Shipping Department at ABC D) The toy store at the mall

3. Use the information provided in Table 1.1. An example of an internal supplier is:
A) The lumber company B) The Receiving Department at ABC
C) The Shipping Department at ABC D) The toy store at the mall

4. Use the information provided in Table 1.1. An example of an external customer is:
A) The lumber company B) The Receiving Department at ABC
C) The Shipping Department at ABC D) The toy store at the mall

5. Use the information provided in Table 1.1. An example of an external supplier is:
A) The lumber company B) The Receiving Department at ABC
C) The Shipping Department at ABC D) The toy store at the mall

6. Which of the following statements is more of a general characteristic of a manufacturing organization,

as compared to a service organization?
A) Short-term demand tends to be highly variable. B) Operations are more capital intensive.
C) Outputs are more intangible. D) Quality is more difficult to measure.

7. Which one of the following statements is more of a general characteristic of a service organization, as
compared to a manufacturing organization?
A) Output can be inventoried. B) The response time is longer.
C) There is less customer contact. D) The facilities tend to be smaller

8. Manufacturing processes usually have:

A) physical, durable output. B) high levels of customer contact.
C) output that cannot be inventoried. D) low levels of capital intensity.

9. Service processes usually have:

A) physical, durable output. B) low levels of customer contact.
C) output that can be inventoried. D) low levels of capital intensity.

10. A set of activities that delivers value to external customers is a:

A) supply chain. B) core process. C) support process. D) system.

11. Budgeting, recruiting, and scheduling are examples of these types of processes.
A) Development B) core process C) support process D) system

12. The process that facilitates the placement of orders and identifies, attracts, and builds relationships
with external customers is called the:
A) customer relationship process. B) new service development process.
C) order fulfillment process. D) supplier relationship process.

13. The process that designs and develops new products and services is called the:
A) customer relationship process. B) new service development process.
C) order fulfilment process. D) supplier relationship process.

14. The process that includes the activities required to produce and deliver the service or product to the
customer is called the:
A) customer relationship process. B) new service development process.
C) order fulfilment process. D) supplier relationship process.

15. All of the following are core competencies except:

A) workforce. B) competitive priorities.
C) facilities. D) market and financial know-how.

16. Which of the following is an example of a core competency?

A) facilities B) top quality C) low-cost operations D) on-time delivery

17. The Gap, Inc. has targeted teenagers and young adults needing casual clothes and, for its GapKids
stores, the parents or guardians of infants through 12-year-olds. This is an example of:
A) market segmentation. B) a collaborative effort between the company and its customers.
C) a needs assessment. D) a mission statement

18. Competitive priorities define the dimensions on which companies should excel in producing their
products or services. Which one of the following statements is TRUE?
A) A firm that competes on the dimension of volume flexibility is more likely to manufacture products
that experience a seasonal demand variation.
B) It is impossible for a firm to improve cost and quality simultaneously.
C) A firm offering little customization cannot compete simultaneously on the dimension of consistent
quality.
D) A firm that competes on the dimension of customization tends to have operating systems that are
inflexible.

19. A company's ability to quickly introduce a new service or product would be best described as:
A) volume flexibility. B) variety. C) consistent quality. D) development speed.

20. A business focusing on increasing the efficiency of its operations is more directly addressing:
A) volume flexibility. B) variety. C) consistent quality. D) low-cost

PART FIVE

1. The total quality approach has which of the following characteristics?

A. Teamwork C. Confusion and poor leadership
B. Obsession with quantity D. One employee in charge

2. Customers want an excellent product or service from an organization that also provides:
A. The Deming Cycle C. Reliable delivery and after purchase support
B. Quick fixes D. Stamps

3. Which of the following functions is part of the Juran Trilogy?

A. Pareto Principle B. Quality planning C. Unity of purpose D. Six Sigma Program

4. Crosby's Quality Vaccine consists of three ingredients. Which of the following is not one of the three ingredients?
A. Teamwork B. Education C. Determination D. Implementation

5. Which of the following is a trend that will shape the future of quality management?
A. The Deming Cycle. B. The Juran Trilogy. C. Global economy. D. Increasing global competition.

6. Which of the following certifications is for managers who lead and champion continual process improvement
initiatives?
A. Calibration technician C. Manager of Quality/Organizational Excellence
B. Six Sigma Green Belt D. Quality Process Analyst

7. Of the trends listed below, which one increases the level of globalization in business?
A. Growing irrelevance of distance.
B. Shifts in the interest rates.
C. Quality of the product.
D. Rise of small towns.

8. Which of the following statements are considered true concerning the affects of global integration?
A. It has helped fuel economic growth throughout the industrialized world.
B. It can be the Achilles heel of economic growth.
C. Downturns in one country can now have a ripple effect that quickly spreads to other countries.
D. All of the above

9. Which of the following countries is the most competitive country in the world?
A. Germany B. United States C. Japan D. Switzerland
10. When making comparisons among internationally competing countries, the following indicators are used:
A. Standard of living and investment. C. Government infrastructure.
B. Quality is the key to success. D. Ability to compete.

11. The most important key in maximizing competitiveness is:

A. Education B. Human resources C. Teamwork D. Government

12. The most common college degree among American CEOs is the:
A. Quality management B. MBA C. CFO D. Management and Leadership

13. Which of the following statements apply when developing a mission statement?
A. The how-to statements.
B. Describe the “who, what, and where” of the organization.
C. Be brief, but comprehensive.
D. Choose wording that is simple.

14. Which of the following statements best describe the acronym SWOT?
A. Specific, Witness, Opportunities, and Time.
B. Single, Weaknesses, Occasion, and Tactics.
C. Strengths, Weaknesses, Opportunities, and Threats.
D. Strategic, Weaknesses, Objectives, and Tactics.

15. Strategic management is

A. Creative thinkers who look at their business environment from a different perspective.
B. Expansive and wasteful.
C. Constantly seeking gaps in the marketplace that their companies can fill.
D. Management that bases decisions within an ethical framework.

16. Which of the following statements is true concerning strategies used to execute a strategic plan?
A. Organizations should communicate at all times.
B. Consult with only managers.
C. Adjust to administrative barriers.
D. Be flexible and improvise.

17. Which of the following strategies is important when executing a strategic plan?
A. Review the plan with customers.
B. Identify advocates and resisters.
C. Form an application task force.
D. Activate the steering committee.

18. To promote successful execution of strategies, organizations should undertake which of the following strategies?
A. Eliminate administrative barriers
B. Conduct a secondary SWOT analysis
C. Hold a stakeholder’s gap analysis
D. Contract with an execution specialist

19. The concepts of trust, integrity, and _______ are part of the value system of total quality.
A. Morality B. Responsibility C. Trust D. Legality

20. Which of the following is not a value that leads to peak performance and excellence?
A. Creativity B. Quality C. Dependability D. Opportunity
21. Managers have three main responsibilities in regard to ethics. Which of the following is NOT one of those?
A. They are responsible for creating an internal environment that promotes, expects, and rewards ethical behavior.
B. They are responsible for helping employees make ethical choices.
C. They are responsible for setting an example of ethical behavior.
D. They are responsible for helping employees follow through and exhibit ethical behavior after the appropriate choices
have been made.

22. When handling an ethical dilemma, managers should select the option that will most likely:
A. Pass the various ethics tests D. None of the above
B. Build strength in the organization
C. Set the best example for employees

23. When providing ethics training, it is important to:

A. Facilitate, don’t preach C. Highlight practical applications
B. Stimulate discussion D. All of the above are important

24. An organization’s responsibilities for ensuring ethical behavior include:

A. Paying whistleblowers to speak up C. Establishing in-house courts and juries
B. Creating and ethical environment D. Refusing to talk to the media