True or false

Question 1

The utilisation factor for a system represents the probability that the service facilityis being used.
T orF?

Answer 1

True

Question 2

The late finish of an activity is the earliest late start of all preceding activities.
T or F?

Answer 2

Fase
(preceding means before)

Question 3

The pace of a non-bottleneck production operation is controlled by the pace of the previous (upstream) operation.
T or F

Answer 3

False

Question 4

Shortening the project by assigning more resources to one or more of the critical tasks is called “project crashing”.
T or F?

Answer 4

True

Question 5

In statistical process control, attributes and variables data are best described as measured and counted values, respectively.
T or F?

Answer 5

False

Question 6

Which of the following techniques does NOT contribute to increasing throughput at a bottleneck?

(a) Increase capacity of constraint.
(b) Have cross-trained employees available to operate the constraint.
(c) Develop alternate routings.
(d) Move inspections and tests to a position immediately after the bottleneck.
(e) Schedule throughput to match capacity of the bottleneck.

Answer 6

(d) Move inspections and tests to a position immediately after the bottleneck.

Question 7

Which of the following statements regarding critical paths is true?

(a) The shortest of all paths through the network is the critical path.
(b) Some activities on the critical path may have slack
(c) Every network has exactly one critical path.
(d) On a specific project, there can be multiple critical paths, all with exactly the same duration.
(e) The duration of the critical path is the average duration of all paths in the project network.

Answer 7

(d) On a specific project, there can be multiple critical paths, all with exactly the same duration.

Question 8

Which is NOT true about long-term capacity?
(a) Excess capacity can serve as a barrier to entry.
(b) Capacity may be difficult and costly to modify.
(c) Capacity has no effect on operating cost.
(d) Capacity affects the ability to satisfy customer’s demand.
(e) Capacity is usually a major determinant of initial capital costs.

Answer 8

(c) Capacity has no effect on operating cost.

Question 9

The most appropriate sequencing rule to use if the goal is to dynamically track the progress of jobs and establish relative priority on a common basis is:

(a) Shortest processing time.
(b) Earliest due date.
(c) Longest processing time.
(d) Critical ratio.
(e) Johnson’s rule.

Answer 9

(d) Critical ratio.

Question 10

At the start of football season, the ticket office gets very busy the day before the first game. Customers arrive at the rate of four every ten minutes. The customer would be better off if the stadium employed:

(a) A single ticket seller who could service a customer in two minutes.
(b) Two ticket sellers each of whom could service a customer in three minutes.
(c) The two situations produce the same wait times.

Answer 10

(b) Two ticket sellers each of whom could service a customer in three minutes.

Question 11

The goal of most waiting line problems is to identify the service level that minimizes service cost.
T or F?

Answer 11

F

Question 12

On a practical note – if we were to study the waiting lines in a hair salon that had only five chairs for people waiting, we should use an infinite queue waiting line model.
T or F?

Answer 12

F

Question 13

In a single-channel, single-phase system, reducing the service time only reduces the total amount of time spent in the system, not the time spent in the queue.
T or F?

Answer 13

F

Question 14

1.1 - The study of Operations Management is crucial for understanding how businesses create and deliver products and services. For example, learning about Operations Management can help understand how a hospital manages its operations to improve patient care. Why is studying Operations Management important?

A) To improve personal financial management;
B) To understand how to create products and services that customers want;
C) To specialize exclusively in marketing;
D) To learn about art history;

Answer 14

B) To understand how to create products and services that customers want;

Question 15

In the field of Operations Management, Process Design plays a key role in ensuring that products and services meet customer expectations. A classic example is how a restaurant designs its kitchen and service processes to deliver meals efficiently. What does Process Design involve in Operations Management?

A) Development of digital marketing strategies;
B) Design and management of the processes needed to produce the final products or services;
C) Exclusive management of human resources and finances;
D) Focus only on the graphic design of products;

Answer 15

B) Design and management of the processes needed to produce the final products or services;

Question 16

Concurrent Engineering is a methodology used to speed up the product development process by allowing different stages to overlap, thus reducing time to market. An example is when automotive companies develop new models while simultaneously engineering the manufacturing processes. What is the benefit of Concurrent Engineering in product/service design?

A) Reduction in the time needed to launch new products;
B) Significant increase in development costs;
C) Decrease in the need for customer feedback;
D) Limitation of different departments’ participation in product development;

Answer 16

A) Reduction in the time needed to launch new products;

Question 17

Little’s Law is a fundamental principle in Operations Management that relates to the efficiency of processes. For example, in a bank, Little’s Law can help determine the relationship between the number of customers in the queue, the rate at which customersare served, and the average time customers spend in the queue. What is the purpose of Little’s Law in Operations Management?

A) To determine the marketing budget;
B) To measure the relationship between work in process, arrival rate, and completion time;
C) To calculate a company’s net profit;
D) To evaluate the effectiveness of advertising campaigns;

Answer 17

B) To measure the relationship between work in process, arrival rate, and completion time;

Question 18

• In the context of a service operation, like a call center, efficiency might involve handling as many calls as possible within a shift, whereas effectiveness would focus on resolving customer issues satisfactorily. How do efficiency and effectiveness differ in operations management?

A) Efficiency relates to the cost of inputs used, while effectiveness is about the quality of output.
B) Efficiency is about maximizing output, while effectiveness is about meeting strategic goals.
C) They are interchangeable terms in operations management.
D) Effectiveness is solely about speed, whereas efficiency is about quality

Answer 18

B) Efficiency is about maximizing output, while effectiveness is about meeting strategic goals.

Question 19

Why is flexibility in multi-product flow operations important?

A) It limits the variety of products a company can offer.
B) It allows companies to quickly adapt to changes in consumer demand and market trends.
C) It encourages companies to focus solely on cost reduction.
D) It prevents companies from diversifying their product offerings.

Answer 19

B) It allows companies to quickly adapt to changes in consumer demand and market trends.

Question 20

What characterizes a professional service in the context of service process types?

A) High customer transactions with limited contact time and customization.
B) Medium levels of volume and customization with a mix of front- and back-office activities.
C) Knowledge-based services usually involving high customer contact and high customization.
D) Services provided through automated systems with minimal human intervention.

Answer 20

C) Knowledge-based services usually involving high customer contact and high customization.

Question 21

Forecasting plays a crucial role in the strategic planning of businesses across various domains. such as finance, marketing, and operations. Given the descriptions of forecasting methods below, which option correctly matches the forecasting method to its primary use case?

A) Tactical forecasting: Used for making day-to-day decisions about purchasing, production planning, scheduling, and
inventory, relying on short-term forecasts (weeks or months).
B) Strategic forecasting: Primarily utilized for budgetary planning and cost control in finance and accounting, based on longterm forecasts (years).
C) Exponential smoothing: A method favored for its ease of use and minimal requirement for historical data, ideal for making
strategic decisions and aggregate demand planning in production and operations.
D) Moving average and weighted moving average: Best suited for market research to plan new products, compensate sales
personnel, and make key strategic decisions.

Answer 21

A) Tactical forecasting: Used for making day-to-day decisions about purchasing, production planning, scheduling, and
inventory, relying on short-term forecasts (weeks or months).

Question 22

Tactical forecasting involves short-term forecasts that are used for operational decisions in the near future, such as purchasing, production planning, scheduling, and inventory management.
T or F?

Answer 22

True

Question 23

Strategic forecasting focuses on long-term planning for budgeting, cost control, and overall strategic direction.
T or F?

Answer 23

True

Question 24

Moving average and weighted moving average: Best suited for market research to plan new products, compensate sales personnel, and make key strategic decisions.
T or F?

Answer 24

False
Moving average and weighted moving average methods are also used for short to medium-term forecasting and are commonly used in smoothing out fluctuations in data. They are not specifically tailored for strategic decision-making or market research planning for new products.

Question 25

In littles law T= Lead time refers to the average time a call spends in the system, including both the time spent waiting in the queue and the time spent being handled by an agent.
T or F?

Answer 25

True