100% (11 out of 11 correct)

Chapter 1

1. Frederick W. Taylor is generally credited with inventing and establishing standards

for the moving assembly line.
A. True
B. False

2. Human effort, technology, raw materials, information and dollars are all examples
of the necessary inputs to operations.
A. True
B. False

3. The outputs of operations may be classified as goods, raw materials and profits.
A. True
B. False

4. It is easier to measure productivity for an operation that provides services than for
one that produces goods since there is no material used in services.
A. True
B. False

5. The only disadvantage to using the Pareto principle is that we need to concentrate
problem-solving efforts on a large number of factors.
A. True
B. False
6. Two major trends in operations management are management of supply chains and
management of technology.
A. True
B. False

7. Operations Management includes all of these activities except:

A. Schedule work
B. Secure financial resources
C. Maintain quality
D. Oversee the transformation process
E. Manage inventories

8. Which one of these was not mentioned in the list of recent trends in operations
management?
A. Total quality management
B. Worker involvement
C. Global competition.
D. Automation.
E. Environmental issues.

9. The major difference between goods and services is:

A. it is difficult to inventory services
B. services lack the profitability that goods enjoy
C. goods production usually requires more labor than services
D. goods are always customized, services are always standardized
E. an organization offering goods cannot also offer services
 10. Which of the following is not a type of operations?
A. goods production
B. storage/transportation
C. entertainment
D. communication
E. market analysis

11. Which of the following is not true about a lean production system?
A. It puts emphasis on quality, flexibility, and time reduction.
B. It puts emphasis on reducing a company's labor force.
C. It is involved in maintaining and improving the system with lower amounts
of inventory.
D. It uses small production batch sizes.
E. It uses safety stock to protect against uncertainty.

Retake Test

Chapter 2

1. The mission of a firm should be designed to support each of the firm's functional strategies.
A. True
B. False

2. Productivity is the ratio of input to output, with input limited to material and labor.
A. True
B. False
3. A company can compete with other companies manufacturing a similar product
only by selling at a lower price.
A. True
B. False

4. Management has a great deal of responsibility for improving productivity.

A. True
B. False

5. Productivity less than 100% generally results in operations that lose money.
A. True
B. False

6. Many factors impact productivity, one factor not generally stated as having a
negative impact on productivity is:
A. Government regulations
B. Liability claims
C. Increased emphasis on services
D. Emphasis on short-term performance
E. All are reasons.

7. Which is the correct hierarchy of operations management decisions (highest first)?

A. Operating, tactical, strategic
B. Operating, strategic, tactical
C. Goals, missions, productivity
D. Strategic, operating, tactical
E. Strategic, tactical, operating
8. An operations strategy is developed using many sources of input - which is the least
likely to have input?
A. Quality
B. Planning
C. Suppliers
D. Top Management
E. Production

9. A measure of productivity which reflects a combination of some or all of the

resources used to obtain a certain output is:
A. labor productivity
B. machine productivity
C. multi-factor productivity
D. materials productivity
E. overhead productivity

10. Distinctive competencies in organizations seldom relate to:

A. price (cost)
B. quality
C. time
D. flexibility
E. facilities layout

11. Productivity is calculated by:

A. Dividing inputs by outputs
B. Multiplying inputs by outputs
C. Adding inputs to outputs
 D. Dividing outputs by inputs
E. Using benchmarking to yield results

Chapter 3

1. Accurate forecasting can be done with inaccurate historical data. If the forecasting
model is a good one, it will improve the input used.
A. True
B. False

2. Aggregated (grouped) data frequently generate better forecasts than non-aggregated

data used to forecast individual items.
A. True
B. False

3. If quantitative data is available on which to base a forecast, it is unnecessary to

consider qualitative information.
A. True
B. False

4. The Delphi technique is a forecasting model, developed in India, which

incorporates the use of multiple regression.
A. True
B. False

5. In a good forecast, about half of the forecast misses should be randomly scattered
above the actual results and half below the actual results.
A. True
 B. False

6. Double exponential smoothing can only be used if there is no observable trend in

the data.
A. True
B. False

7. Seasonality refers to data patterns that recur every year (or every week, or every
month, etc.) at about the same time.
A. True
B. False

8. Which of the following forecasting techniques generates trend forecasts?

A. Delphi method
B. Sales force composites
C. Moving averages
D. Single exponential smoothing
E. None of the above

9. For this set of errors: -1, -4, 0, +2, +3, MAD is:
A. 1.0
B. 1.6
C. 2.0
D. 2.5
E. 10.0
10. Which probability distribution is used most extensively in dealing with forecasting
errors?
A. Normal
B. Poisson
C. Exponential
D. Beta
E. Pareto

11. The cumulative forecast error is important for determining the:

A. Mean squared error.
B. Bias in forecast error.
C. Mean absolute deviation.
D. Control limits
E. Correlation coefficient

12. When we use exponential smoothing for forecasting, the alpha value (smoothing
constant) that would give the greatest weight to the current actuals would be:
A. 0
B. .01
C. .10
D. .20
E. .30

13. Which of the following smoothing constants would make an exponential

smoothing forecast equivalent to a naive forecast?
A. 0
B. .01
C. .1
D. .5
E. 1.0
 14. Simple exponential smoothing is being used to forecast demand. The previous
forecast of 66 turned out to be six units less than actual demand. The next forecast
is 66.9, implying a smoothing constant, alpha, equal to:
A. .01
B. .10
C. .15
D. .20
E. .60

15. The temperature on Tuesday was 80 degrees, on Wednesday it was 82 degrees, on

Thursday it was 78 degrees. A naive forecast for the temperature on Friday would
be:
A. 78
B. 80
C. 82
D. 84
E. Can't tell from the data given

Chapter 4

1. A major consideration in product design in addition to quality is manufacturability.

A. True
B. False

2. Environmental scanning refers to checking environmental regulations before

proceeding with product design.
A. True
B. False
3. The term “concurrent engineering” refers to having both engineering and
manufacturing personnel working independently early in the design phase.
A. True
B. False

4. Delayed differentiation and modular design are two tactics useful for mass
customization.
A. True
B. False

5. Quality function deployment is a structured method of integrating the "voice of the

customer" into the design process.
A. True
B. False

6. Product design that uses computers is referred to as:

A. QFD
B. CAM
C. RFD
D. CAD
E. TQM

7. Which of the following could be a dimension of quality?

A. Performance.
B. Conformance.
C. Reliability.
 D. Durability.
E. All may be dimensions of quality.

8. Which of the following most accurately describes remanufacturing?

A. Processing a component twice to assure conformance to specification
B. Redesigning the layout of the factory.
C. Replacing worn out components in products and reselling the products.
D. Redesigning the product.
E. Retraining the workers.

9. Which of the following is most typical of modular design?

A. A single module includes all product functionality.
B. Standard modules can be combined in a variety of ways.
C. Inventories of completed products will be significantly higher.
D. Defective modules are usually repaired rather than replaced.
E. All of the above are true.

10. As part of a strategy for improving competitiveness, a manager may have to

initially sacrifice:
A. research and development
B. short-term performance
C. employee pay raises
D. product or service quality
E. management incentive payments (bonuses)

11. Service design generally differs from product design in which of the following
ways?
A. Service design tends to focus on tangible factors.
 B. There is less latitude in detecting and correcting errors prior to delivery.
C. There is a lesser requirement to be aware of competitors' offerings.
D. There is less visibility to customers.
E. Once designed, service tends to remain constant while product design will
change often.

Retake Test