The document contains a chapter from an operations management textbook covering key concepts in the field. It includes 20 true/false questions and 20 multiple choice questions testing comprehension of topics like productivity measurement, operations strategy, project management, product design, and process analysis. Some key ideas assessed include the definition of operations management; contributions of operations thinkers like Taylor, Deming and Juran; characteristics of services; techniques like JIT, TQC and value analysis; and metrics like cycle time and utilization.

1. Section One – Operations Strategy and Managing Change Page: 3
Ch 1
Introduction to the Field
True-False Questions
_____ 1. A business education is complete without an understanding of modern
approaches to managing operations.
F
_____ 2. The concepts and tools of OM are widely used in managing other
functions of a business.
T
_____ 3. Value is defined as quality divided by price.
T
_____ 4. Operational planning and control decisions are short-term and narrow.
T
_____ 5. In services, the shop floor may be called the front office, dining area,
operating room, or passenger cabin, depending on the industry.
T
_____ 6. Frederick W. Taylor developed scientific management.
T
_____ 7. The goal of just-in-time production is to achieve low-volume production
using minimal inventories of parts that arrive at the workstation just as they are
needed.
F
_____ 8. ISO 9000 certification standards play a major role in setting quality
standards for global manufacturers.
T
_____ 9. The quality gurus include W. Edwards Deming, Joseph M. Juran, and
Philip Crosby.

2. Chapter One
Page: 4
T
_____ 10. Optimizing global supplier, production, and distribution networks is not an
issue facing OM executives today.
F
Multiple-Choice Questions
_____ 11. Value added services include all of the following except:
A. Information
B. Problem solving
C. Sales support
D. Scientific management
D
_____ 12. Management decisions within the operations function are:
A. Long-term decisions
B. Intermediate-term decisions
C. Short-term decisions
D. All of the above
D
_____ 13. All of the following describe services, except:
A. They are tangible.
B. Direct customer involvement is essential.
C. Location of the facility is critical.
D. Customers are part of the production process.
A
_____ 14. Co-workers of Frederick W. Taylor in scientific management included all
of the following except:
A. Henry L. Gantt
B. Joseph M. Juran

3. Chapter One
Page: 5
C. Frank Gilbreth
D. Lillian Gilbreth
B
_____ 15. The acronym for the term that describes a program that aggressively
seeks to eliminate causes of production defects and a cornerstone of many
manufacturers' production practices is:
A. JIT
B. FMS
C. TQC
D. SAP
C
_____16. A systematic way of looking at organizational processes can include:
A. How to solve real world problems
B. How to expand globally
C. How many lines to provide at the bank teller’s window
D. How many windows are needed in the fast food drive-through
E. All of the above
E
_____ 17. Key trends in the future of operations management include:
A. Radio frequency identification (RFID)
B. Specialization
C. Outsourcing
D. Smart factories
E. All of the above
E
_____ 18. Wal-Mart, the giant U.S. retailer, is requiring its top 100 vendors to employ
the technology of:
A. Radio frequency identification
B. Personal computers

4. Chapter One
Page: 6
C. Pagers
D. Cell phones
A
_____ 19. Why do senior executives not understand operations?
A. They entered organizations through finance, strategy, or marketing
B. They relied on others to mind the details of the actual work
C. Both A and B
D. None of the above
C
_____ 20. The Internet has opened new ways for the customer to interact directly
with a firm. This information sharing can lead to a new trend of:
A. Optimizing global supplier, production, and distribution networks
B. Increased co-production of goods and services
C. Managing the customer’s experience during the service encounter
D. Raising the awareness of operations as a significant competitive
weapon
B
Chapter 1
1. F
2. T
3. T
4. T
5. T
6. T

5. Chapter One
Page: 7
7. F
8. T
9. T
10. F
11. D
12. D
13. A
14. B
15. C
16. E
17. E
18. A
19. C
20. B

6. Chapter One
Page: 8
Ch 2
Operations Strategy and Competitiveness
True/False Questions
_____ 1. Competing on cost and being the low-cost producer is a guarantee of
profitability and success.
F
_____ 2. There are two characteristics of a product/service that define quality:
design quality and process quality.
T
_____ 3. An order winner is the minimum requirement necessary to enter the
market with a product or service.
F
_____ 4. Choosing a target market to serve may lead to turning away business or
ruling out a market segment that would be unprofitable or too hard to serve given the
firm's capabilities.
T
_____ 5. Operations strategy in service firms is generally inseparable from the
overall corporate strategy.
T
_____ 6. Productivity is a measure of how well a country, industry, or
business unit is using its resources.

7. Chapter One
Page: 9
T
_____ 7. To increase productivity, we want to make the ratio of inputs to outputs as
large as practical.
F
_____ 8. The statement: productivity is a relative measure, means that the
productivity value in March is not meaningful by itself but is meaningful only if
compared to February’s productivity value.
T
_____ 9. The ratio of output to a single input is total factor measurement of
productivity.
F
_____ 10. Partial measures of productivity give managers information in familiar
units, allowing them to easily relate these measures to the actual operations.
T
Multiple-Choice Questions
_____ 11. Typical quality issues include which of the following:
A. Facility location
B. Extent of use of outside suppliers
C. Defect prevention
D. Organizational structure
C
_____ 12. A major dimension that forms the competitive position of the company
includes which of the following:

8. Chapter One
Page: 10
A. Organization
B. Planning
C. Controlling
D. Flexibility
D
_____ 13. All firms in the highly competitive soft drink industry must have a readily
available, good tasting product as judged by consumers. To differentiate
themselves from the other competitors, the manufacturers must use extensive
promotion and sponsorship of event. In this industry product availability and
quality taste is:
A. An order winner
B. A qualifier
C. A world-class manufacturer
D. A plant-within-a plant
B
_____ 14. Which of the following is the first step in developing priorities when crafting a
manufacturing strategy?
A. Determine the order winners and qualifiers for each group.
B. Segment the market according to the product group.
C. Identify the product requirements, demand patterns, and profit
margins of each group.
D. Convert order winners into specific performance requirements.
B
_____ 15. The Garden Café made and sold 238 veggie pizzas last Saturday night. They
employed two kitchen preparation employees and one cashier and two
waitresses who together worked a total of 30 hours during Saturday night. Total
labor productivity is:

9. Chapter One
Page: 11
A. 238
B. 7.93
C. 0.13
D. 71.40
B
_____16. Special services that are provided to augment the sale of manufactured products
can include which of the following:
A. Technical liaison and support
B. Meeting a launch date
C. Supplier after-sale support
D. Other factors like colors, size, weight, and product mix options
E. All of the above
C
_____17. Adherence to a product’s dimensional tolerances is essential to ensuring a
product’s ____________.
A. Reliability
B. Quality
C. Cost
D. Delivery speed
A
_____18. Which is considered a component of productivity strategy?
A. Improve cost structure
B. Improve asset utilization
C. Both A and B

10. Chapter One
Page: 12
D. Neither A nor B
C
_____19. A company may differentiate itself in the marketplace by:
A. Product leadership
B. Customer intimacy
C. Operational excellence
D. All of the above
D
_____20. The cultural shifts needed to motivate, empower, and align the workforce
behind the company strategy is:
A. Strategic competencies
B. Strategic technologies
C. Climate for action
D. Strategic motivation
C
Chapter 2
1. F
2. T
3. F
4. T
5. T
6. T
7. F

11. Chapter One
Page: 13
8. T
9. F
10. T
11. C
12. D
13. B
14. B
15. B (output/input or 238/30)
16. C
17. A
18. C
19. D
20. C

12. Chapter One
Page: 14
Ch 3
Project Management
True-False Questions
_____ 1. There is only one functional manager in the matrix project organizational
structure.
_____ 2. Duplication of resources is minimized with the matrix structure.
_____ 3. A task is a group of activities combined to be assigned to a single organizational
unit.
_____ 4. Milestones are subdivisions of a project.
_____ 5. The work package provides a description of what is to be done, when it is to be
started and completed, the budget, measures of performance, and specific
events to be reached.
_____ 6. Critical path techniques work best for well-defined jobs or tasks.
_____ 7. The critical path is the sequence of activities with the longest completion time or
the shortest processing time for a project.
_____ 8. The Gantt chart is most useful for large projects with 30 or more activities.
_____ 9. There is always slack time in the critical path.
_____ 10. Managers can use a late start schedule to postpone purchases of materials for
cost savings.
Multiple-Choice Questions
_____ 11. Project management includes:
A. Planning

13. Chapter One
Page: 15
B. Directing
C. Controlling
D. All of the above

14. Chapter One
Page: 16
_____ 12. A disadvantage of the matrix project is:
A. Communication between functional divisions
B. Duplication of resources is minimized.
C. Policies of the parent organization are followed.
D. It is doomed to failure unless the PM has strong negotiating skills.
______13. Which of the following represent the lowest level of a work breakdown structure?
A. Program
B. Task
C. Project
D. Work package
E. Subtask
_____14. Critical path scheduling techniques require:
A. Dependent jobs or tasks
B. Jobs that can be conducted concurrently (at the same time)
C. Variable job or task order
D. Well-defined jobs
_____15. Which of the following would be the first activity in developing a computer?
A. Design the computer
B. Construct the prototype
C. Evaluate automatic assembly equipment
D. Test the prototype

15. Chapter One
Page: 17
_____ 16. The critical path requires 38 weeks to complete, what is the slack time for a non-
critical path that takes 34 weeks to complete?
A. 8 weeks
B. 4 weeks
C. 10 weeks
D. Can't be determined from the information given
_____ 17. Which of the following is true about projects?
A. It is difficult to identify entities for projects.
B. Projects are static.
C. Projects are often simple to outline.
D. Projects are accurate throughout the completion schedule.
_____18. A chart that relates activities to time in a visually usable fashion for small projects
is:
A. PERT
B. CPM
C. Critical Path
D. Gantt Chart
_____ 19. The last date for projects to start without delaying the completion date is the:
A. Early Start Schedule
B. Late Start Schedule
C. Critical Path Schedule
D. Gantt Schedule

16. Chapter One
Page: 18
_____ 20. Motivation for using a late start schedule is:
A. To realize savings in postponing purchases of materials
B. To delay the use and cost of labor
C. Delay all costs until absolutely necessary
D. All of the above
Chapter 3
1. F
2. T
3. F
4. F
5. T
6. T
7. T
8. F
9. F
10. T
11. D
12. D
13. D
14. D
15. A
16. B
17. A
18. D
19. B

17. Chapter One
Page: 19
20. D
Ch 4
Product Design
True-False Questions
_____ 1. Developing new products and getting them to market quickly is the
challenge facing most manufacturers.
_____ 2. Contract manufacturers specialize in manufacturing products for other
companies.
_____ 3. The product design process does not differ based on the industry.
_____ 4. A company’s core competency is the one thing that it does better than its
competitors.
_____ 5. The goal is to have a core competency that yields a short term competitive
advantage to the company.
_____ 6. In a fully vertically integrated firm, all activities from the design to the fabrication
of the individual parts are outsourced.
_____ 7. Many of the tasks in the product development process involve intellectual rather
than physical activities.
_____ 8. The conclusion of the product development process is the product launch, at
which time the product becomes available for purchase in the marketplace.
_____ 9. The production ramp-up phase of product development involves the construction
and evaluation of multiple preproduction versions of the product.
_____ 10. A platform product is built around a preexisting technological subsystem.
Multiple-Choice Questions
_____ 11. In designing for manufacturability:
A. It is desirable to minimize the number of separate parts.

18. Chapter One
Page: 20
B. Designers must follow certain rules, depending on the
process selected.
C. We must remember to design for the consumer.
D. All of the above
_____ 12. The final phase of the product development process is:
A. Product Development
B. Concept Development
C. Marketing
D. Manufacturing
E. Production Ramp-up
_____ 13. A core competency:
A. Provides potential access to a wide variety of markets
B. Increases perceived customer benefits
C. Is hard for competitors to imitate
D. All of the above
_____ 14. Examples of process-intensive products include all of the following except:
A. Semiconductors
B. Food
C. Chemicals
D. Paper

19. Chapter One
Page: 21
E. Containers
_____ 15. Products such as software and many electronic products that can be rapidly built
and tested in the prototype models, repeating the design-build-test cycle many
times are referred to as:
A. High-risk products
B. Quick-build products
C. Customized products
D. Complex systems
E. None of the above
_____ 16. The first step in building the “house of quality” is to:
A. Ask the customer to compare the company’s product to those of
competitors.
B. Develop a set of technical characteristics.
C. Rank requirements in order of importance.
D. Develop a list of customer requirements for the product.
_____ 17. Which of the following is true regarding value analysis/value engineering?
A. Its purpose is to simplify products and processes.
B. It objective is to increase cost but improve performance.
C. It eliminates some of the functional requirements defined by the
customer.

20. Chapter One
Page: 22
D. It often adds costs to the product.
_____ 18. In a redesigned product following design for assembly analysis (DFA), which
often occurs?
A. The number of separate parts increases.
B. Additional parts are added.
C. The product is more complex to assembly.
D. Costs increase.
E. Costs decrease due to the reduced number of parts.
_____ 19. All of the following are measures of time to market except:
A. Frequency of new product introductions
B. Time from initial concept to market introduction
C. Engineering hours per project
D. Number started and number completed
E. Actual versus plan
______ 20. Which is an impact on competitiveness of quality?
A. Responsiveness to customers and competitors
B. Quality of design – close to market
C. Number of projects – freshness and breadth of line
D. Reputation – customer loyalty
Chapter 4
1. T
2. T

21. Chapter One
Page: 23
3. F
4. T
5. F
6. F
7. T
8. T
9. F
10. T
11. D
12. E
13. D
14. E
15. B
16. D
17. A
18. E
19. C
20. D
Ch 5
Process Analysis
True-False Questions
_____1. Understanding how processes work is essential to ensuring the competitiveness
of a company.

22. Chapter One
Page: 24
_____2. A process takes outputs and transforms them into inputs.
_____3. The outputs of many processes are services.
_____4. The cycle time of a repetitive process is the average time between completions
of successive units.
_____5. Utilization is the ratio of the time that a resource is actually activated relative to
the time the machine is down for repairs.
_____6. The speed of a process can have a major impact on a company’s revenue.
_____7. Single-stage processes must have buffers.
_____8. Blocking occurs when the activities in a stage must stop because there is no
work.
_____9. A bottleneck limits the capacity of a process.
_____10. A make-to-order process is activated only in response to an actual order.
Multiple-Choice Questions
_____ 11. A process consists of all the following except:
A. Inputs
B. Outputs
C. Transformations
D. All of the above
_____12. The ______________ is the ratio of the time that a resource is actually activated
relative to the time that it is available for use.
A. Efficiency
B. Throughput ratio
C. Utilization
D. Bottleneck
E. All of the above

23. Chapter One
Page: 25
_____13. An area between stages where output is stored prior to its use in a downstream
stage is called:
A. Buffer
B. Batch
C. Blocking
D. Bottleneck
_____14. A _______________ process ends when the inventory of finished goods has
been completed. Customer orders are then served from this inventory.
A. Make-to-design
B. Make-to-stock
C. Make-to-order
D. Hybrid
E. Flowchart
_____15. A machine is designed to produce units at a rate of 30 per minute or one unit
every two seconds. The setup time to configure the machine is 30 minutes.
What is the operation time to make a batch of 10,000 units?
A. 363.33 minutes
B. 300,000 minutes
C. 600 minutes
D. 21,800 minutes

24. Chapter One
Page: 26
E. None of the above
_____ 16. Which of the following is an example of a steady rate assembly line?
A. 120 units entering a system and 90 units exiting
B. 150 units entering a system and 120 units exiting
C. 120 units entering a system and 120 units exiting
D. None of the above
E. All of the above
_____ 17. A production process is often depicted as a funnel. If liquid is poured into the
funnel at a rate greater than it can exit:
A. The level in the funnel will continue to grow
B. The time it takes the liquid to flow through the funnel increases
C. The liquid could spill over the top and never flow through
D. All of the above are true
_____ 18. An advantage of a touch-screen self-order kiosk in a fast food restaurant is:
A. It requires company assistance to place customer orders
B. Flexibility improves
C. Speed decreases
D. Accuracy decreases
E. Convenience decreases

25. Chapter One
Page: 27
_____ 19. The time required to produce a batch of parts is called:
A. Set-up time
B. Operation time
C. Run time
D. Throughput time
_____ 20. If all activities included in a production process are value-added activities, which
of the following is true?
A. The value added time is the sum of the all the activity operation times in
the process.
B. Units are worked on less than 100 percent of the time as they move
through a process.
C. Buffers are needed in the process.
D. Process velocity is always greater than 1.
E. None of the above is true.
Chapter 5
1. T
2. F
3. T
4. T
5. F

26. Chapter One
Page: 28
6. T
7. F
8. F
9. T
10. T
11. D
12. C
13. A
14. B
15. A
16. C
17. D
18. B
19. C
20. A
Ch 6
Manufacturing Process Selection and Design
True-False Questions
_____ 1. Job shops are usually highly automated and in effect, constitute one integrated
machine that must be operated 24 hours a day to avoid expensive shut-downs
and start-ups.
_____ 2. When other processes are employed in a line fashion along with assembly, it is
commonly referred to as a production line.
_____ 3. An example of an assembly line would include manual assembly of toys and
appliances and automatic assembly of components on a printed circuit board.

27. Chapter One
Page: 29
_____ 4. The choice of which flow structure to select, with the exception of a continuous
flow structure, is generally a function of the volume requirements for each
product.
_____ 5. An assembly chart is simply an exploded view of the product showing its
component parts.
_____ 6. An assembly drawing specifies operations and process routing for a particular
part.
_____ 7. An operation and route sheet denotes what happens to the product as it
progresses through the productive facility.
_____ 8. The choice of specific equipment to select naturally follows the selection of the
general type of process structure.
_____ 9. Effective process planning requires clear understanding of what the factory can
and cannot do relative to its process structure.
_____ 10. Most plants use only one pure form of the structures identified.
Multiple-Choice Questions
_____ 11. Changing iron ore into steel sheets or making all the ingredients listed on the box
of toothpaste into toothpaste are examples of:
A. Assembly processes
B. Testing Processes
C. Fabrication Processes
D. Conversion Processes
E. All of the above
_____ 12. Commercial printing shops, machine tool shops, and plants that make custom-
designed printed circuit boards are examples of:
A. Batch shop
B. Job shop
C. Assembly Line
D. Continuous Flow
E. None of the above

28. Chapter One
Page: 30
_____ 13. Production of small batches of a large number of different products, most of
which require a different set or sequence of processing steps is best
accomplished by:
A. Job shops
B. Batch shops
C. Assembly Lines
D. Continuous Flows
_____ 14. Which of the following are not used in process flow design?
A. Assembly drawing
B. Operation and route sheet
C. Break-even analysis
D. Flow process chart
E. American Society of Mechanical Engineers symbols
_____ 15. A/An ________________ defines how parts go together, their order of assembly,
and the overall material flow pattern.
A. Assembly drawing
B. Assembly chart
C. Operation and Route Sheet
D. Process Flowchart
E. All of the above
_____ 16. Forming gold into a crown for a tooth is an example of a/an
A. Conversion process
B. Fabrication process

29. Chapter One
Page: 31
C. Assembly process
D. Testing process
_____ 17. Putting toothpaste tubes into a box is an example of a/an:
A. Conversion process
B. Fabrication process
C. Assembly process
D. Testing process
_____ 18. Heavy equipment, electronic devices, and specialty chemicals are typically
produced in a/an:
A. Job shop
B. Batch shop
C. Assembly line
D. Continuous flow
_____ 19. As volume increases on the product-process matrix, the product line:
A. Increases or broadens
B. Decreases or narrows
C. Stays the same
D. Cannot be determined

30. Chapter One
Page: 32
_____ 20. As volume increases, specialized equipment and standardized material flows
A. Become too expensive
B. Have the same costs
C. Become economically feasible
D. Cannot be determined
Chapter 6
1. F
2. T
3. T
4. T
5. F
6. F
7. F
8. T
9. T
10. F
11. D
12. B
13. A
14. E
15. B
16. B
17. C
18. B
19. B

31. Chapter One
Page: 33
20. C
Ch 7
Product Design and Process Selection-Services
True-False Questions
_____ 1. Achieving competitive advantage in services requires integration of
service marketing with service delivery to meet or exceed customer expectations.
_____ 2. Services are experienced whereas goods are consumed.
_____ 3. Facilities-based services are where production and consumption of the
service take place in the customer's environment.
_____ 4. 1-800 numbers are an example of customer support services.
_____ 5. The service delivery system should be the focal point of all decisions and
actions of the service organization.
_____ 6. A low degree of labor intensity and a low degree of customer interaction
and customization characterize Professional services.
_____ 7. One approach to measuring the economic value of customer satisfaction
is to survey your customers.
_____ 8. The buffered core is both penetrable and reactive to the customer's
requirements in the service-system design matrix.
_____ 9. Automatic teller machines and self-service gas stations are ways a
customer can take a greater participatory role in the production of the service.
_____ 10. Well-designed service systems are user-friendly and cost-effective.
_____ 11. Outsourcing of knowledge work is the next wave in the globalization of work.
_____ 12. Harrah’s improved customer service by encouraging employees to talk to guests
and by introducing a bonus program for employees.
_____ 13. In the new service development cycle, the development stage includes business
analysis and project authorization.

32. Chapter One
Page: 34
Multiple-Choice Questions
_____ 14. All of the following are examples of services except:
A. Restaurants
B. Assembly lines
C. Hotels
D. Health Maintenance Organizations
E. Health Clubs
F. Concerts
_____ 15. Services differ from manufacturing in all the following ways except:
A. Customers typically interact directly with the service delivery process.
B. Consumption and production take place simultaneously.
C. Services are intangible.
D. Services can be stored.
_____ 16. Internal services include:
A. Banks and home repair services
B. Cleaning services and auto repair
C. Telemarketing and repair services
D. Data processing and accounting
E. Hotels and dentists

33. Chapter One
Page: 35
_____ 17. Most services contain a mix of tangible and intangible attributes that
constitute a:
A. Service factory
B. Service shop
C. Service package
D. Mass service
E. Professional service
_____ 18. The ________ approach to services treated the delivery of fast food as a
manufacturing process rather than a service process.
A. Production Line
B. Customer Involvement
C. Personal Attention
D. Cost-Effective
_____ 19. Which of the following is/are true about a service blueprint?
A. It emphasizes the importance of process design.
B. It makes a distinction between the high customer contact
aspects of the service and those activities the customer does not see.
C. It provides guidance for how to make a process conform to a design.
D. Both A and B.
E. A, B, and C are all true.
_____ 20. The percent of time the customer is involved in the system relative to the
total time it takes to perform the customer service is:
A. Creation of the Service
B. Extent of Contact
C. Customer Contact
D. Service Shop
_____ 21. In high contact systems:
A. The customer does not affect the time of demand.
B. The exact nature of the service is not affected by the customer.
C. Quality is not affected by the customer.

34. Chapter One
Page: 36
D. Operations are more difficult to control.
E. Operations are less difficult to rationalize.
_____ 22. Effective management of services requires an understanding of:
A. Marketing
B. Personnel
C. Operations
D. All of the above
_____ 23. McDonald's Corporation primarily competes on which two of the following
services attributes:
A. Treatment and speed/convenience
B. Speed/convenience and price
C. Price and variety
D. Variety and unique skills/tangibles
Chapter 7
1. T
2. T
3. F
4. T
5. T
6. F
7. T
8. F
9. T
10. T
11. T
12. T

35. Chapter One
Page: 37
13. F
14. B
15. D
16. D
17. C
18. A
19. D
20. B
21. D
22. D
23. B