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business
operations management

Questions and Answers of Operations Management

Sarah’s Organic Soap Company makes four kinds of organic liquid soap: “regular,” “lavender,” “citrus,” and “tea tree.” Demands for the four scents are 150, 120, 75, and 50 kgs per
The batch size is tripled on a resource that has a setup time. What is the likely impact on the resource’s capacity? a. Decrease by 1/3b. Decrease by less than 1/3 c. Increase by less
Keuka Studies does custom metal sculptures of horses and other animals. A horse sculpture is composed of numerous parts. They use a lathe to construct two types of parts. The “Body” part is used
Increasing the batch size on a resource with setups always increases the capacity of the process. True or false? a. True b. False
Increasing the batch size on a resource with setups always increases the capacity of the resource. True or false? a. True b. False
The Yum and Yee food truck near the business school serves customers during lunch hour by taking orders and making fresh batches of stir-fry. Customers have only one choice during the lunch hour so
A product requires four parts that are made on the same lathe. Call the parts A, B, C, and D. The product requires 1 unit of A, 2 of B, 4 of C, and 8 of D. Which of the following production cycles is
A machine makes two components; call them types A and B. It takes 250 seconds to switch production between the component types. During that time, no production occurs. When in production, each unit
A machine makes three different components used in a gyroscope. Call these components A, B, and C. The following repeating schedule is used to make components: make 100 units of A, make 50 units of
The batch size is cut in half on a resource that has a setup time. What is the likely impact on the resource’s capacity?a. Decrease by more than 50 percent. b. Decrease by 50 percent. c.
A chemical process involves adding various agents to a vat and then waiting for the agents to react to make a final compound. The vat holds up to 1000 gallons. Chemical agents are added to the vat at
Which of the following activities is not part of the Deming cycle? a. Plan b. Do c. Check d. Improve e. Act
A high signal-to-noise ratio makes learning harder. True or false? a. True b. False
John has been fixing bicycles for three years now. He notices that he is getting better with an increase in experience, though he does not necessarily know why. John’s learning is most likely a
Which of the following is not part of the standard work sheet? a. The processing time for an activity b. The name of the person in charge of the activity c. The work sequence of all
In an environment with high employee turnover, standards are less important than in environments with low turnover. True or false? a. True b. False
If the employee turnover increases, the average tenure of an employee in the company 386 a. Increases. b. Decreases.c. Stays the same. d. Cannot be determined from the given
The employee turnover can be computed as a. Number of new employees recruited per year/Average number of employees b. Average number of employees/Number of new employees recruited per
How does the average tenure of an employee relate to the average time an employee spends with the company? a. They are one and the same thing. b. The average tenure is twice the average
Assume a learning curve following the power law. If you double the initial cost c(1) of a product, the costs of producing an order of 20 units: a. Stay the same. b. Are reduced by 50
The cumulative learning curve coefficient CLCC(20, 0.8) is defined as follows: a. The cost to produce 20 units in a process with c(1) = 1 and a learning rate of 0.8. b. The cost to produce
The cumulative learning curve coefficient CLCC(x, LR) is always bigger than the learning curve coefficient LCC(x, LR) for all x > 1. True or false? a. True b. False
Instead of using the learning curve coefficient method, it is possible to compute the costs of the Nth unit as c(N) = c(1) × N b , where b is the slope of the learning curve in the log-log graph.
What is the difference between the PDCA cycle and the Deming cycle? a. The PDCA cycle includes four steps (plan, do, check, act), while the Deming cycle includes six steps. b. The Deming
A higher value of the learning rate (LR) leads to a lower value of the learning curve coefficient LCC(x, LR). True or false? a. True b. False
Consider the navigation skills of two cab drivers (without a GPS). Driver 1 is driving her routes as demanded by the customer and improves her understanding of the region that way. Driver 2 is
The learning curve coefficient LCC(10, 0.8) captures: a. The cost to produce one unit in a process with c(1) = 1, a cumulative output of 10, and a learning rate of 0.8. b. The cost to
What are the three elements of a standard work sheet? a. They are the processing time for an activity, the work sequence of all steps making up the activity, and the standard amount of inventory
A firm has a learning rate almost equal to 1 (just slightly less than 1). What does this imply for the slope of the learning curve in a log-log graph? a. The slope is close to 0.b. The slope is
A company has 2200 employees, on average, and it recruits, on average, 300 employees per year. What is the average tenure of an employee?
A lower learning rate corresponds to a steeper slope in a log-log graph of the learning curve. True or false? a. True b. False
A company has 2200 employees, on average, and it recruits, on average, 300 employees per year. What is the employee turnover?
Will has just started a small company making special cakes for retirement parties. He just received a large order of five cakes from a local business. Will expects substantial productivity
A learning curve following the power law has what shape in the loglog graph? a. Exponentially increasing b. Exponentially decreasing c. Linearly increasing d. Linearly decreasing
Consider again the preparation of income tax statements. The process starts with an initial cost c(1) = 45 and a learning rate of LR = 0.95, and by now has reached a cumulative output of 100. Without
Consider two processes, A and B, with an initial cost of c(1) = 20. Process A has a learning rate of LR = 0.95 and process B has a learning rate of LR = 0.8. After 20 units: a. Process A is
Consider the preparation of income tax statements. The process starts with an initial cost c(1) = 45 and a learning rate of LR = 0.95, and by now has reached a cumulative output of 100. Using the LCC
Assume a learning curve following the power law. If you double the initial cost c(1) of a product, the cost of the 21st unit, c(21), will: a. Stay the same. b. Be reduced by 50
An experienced car mechanic is working on changing the exhaust system. In 2010, the mechanic had performed this operation 100 times over her career. She estimates that, on average, it took her 80
The power law describes a learning process with exponential growth in performance. True or false? a. True b. False
Consider a process restringing tennis rackets. The process starts with a unit cost of $10 for the first unit—that is, c(1) = 10—and a learning rate of LR = 0.9. What will be the unit cost for the
A novice rower is practicing for a 2000-meter test on a rowing machine (an “erg”). He presently takes 7 minutes and 10 seconds to complete the distance. His goal, in order to be recruited by a
Consider a process that makes high-end boards that get mounted on skateboards. The process starts with a unit cost of $20 for the first unit—that is, c(1) = 20—and has a learning rate of LR =
A regional rail company wants to reduce its delays. Presently, 70 percent of the trains arrive on time. The company’s goal is to improve this to 95 percent. What form of improvement trajectory will
Consider the trajectory showing the amount of data storage space that comes with the average PC each year. What shape would a learning curve have in this setting? a. Exponential growth b.
A bakery produces cookies; however, it makes some defects, leading to occasionally broken or burnt cookies. Presently, the yield of the process is 90 percent (i.e., 9 out of 10 cookies are good). The
Consider the trajectory showing the number of luggage pieces that an airline loses on a flight. What shape would a learning curve have in this setting? a. Exponential growth b. Exponential
A bank is underwriting loans for small businesses. Currently, about 5 percent of the underwriting decisions are found to be incorrect when audited by the bank’s quality assurance department. The
In 1913, how long did the average worker stay with the plant? What was the average tenure of a worker? Assume the one-millionth vehicle was produced in 1916 at a cost of $8084 (in 2013 US$). By how
Consider the trajectory showing the percentage of customer orders in a restaurant that were handled correctly. What shape would a learning curve have in this setting? a. Exponential
Consider the following four-step assembly operation with quality problems. All resources are staffed by one employee. The first resource has a processing time of 5 minutes per unit. The
In a process with rework, we find the bottleneck as the resource with the highest implied utilization. True or false? a. True b. False
David O’Bannon offers real estate training classes. Each of his classes has 3 hours of instruction and is offered in hotel rooms that hold 25 seats. David believes his course is great, so he offers
What is the difference between a process with rework and a process with scrap? a. Scrap processes have less capacity. b. Scrap processes have higher implied utilization c. A process
Patients enter a hospital with the hope of being cured. Unfortunately, 15 percent of patients return for a second visit shortly after they are discharged from the hospital because of recurring
Rework can increase the costs of an operation but has no impact on the capacity of the process. True or false? a. True b. False
A pharmaceutical company creates a compound with a four-stage process: Some of the resources have partial yields: 15 percent of material is discarded after the Acid step and 45 percent of the
To find the bottleneck in a process with attrition loss, all we need to do is find the resource with the lowest capacity. True or false? a. True b. False
To obtain your first driver’s license, you must successfully complete several activities. First, you must produce the appropriate identification. Then, you must pass a written exam. Finally, you
What is the highest possible yield a process can obtain? a. 95 percent b. 100 percent c. 200 percent d. It depends on the process.
The help desk at Triple Stacked handles calls from customers regarding their high-end industrial switches. The help desk is actually divided into two groups. The first group is called the
A process has a yield of 50 percent. How many units are needed as inflow to create an outflow of 40 units per day? a. 10 b. 20 c. 80 d. 90
An architectural firm has three types of clients: “G” = “green/new”; “EC” = experienced with a complex project; and “ES” = experienced with a simple project. The process flow for
The magnetic resonance imaging (MRI) unit of St Francis hospital has 2 MRI machines and sees two kinds of patients, “regular” patients and “contrast” patients. The regular patients don’t
The following on-boarding process for new employees has two stages. In the first, employees fill out several government forms and necessary visas for immigration. In the second the employees attend
Consider a process consisting of five resources that are operated 8 hours per day. The process works on three different products, A, B, and C: Demand for the three different products is as
A resource has an implied utilization of 150 percent. This is the highest implied utilization in the process. This means that the resource is the bottleneck. True or false? a. True b. False
Rockin’ Rocks offers two types of indoor climbing walls, the Challenge and the Psycho. There is one Challenge wall and 4 Psycho walls. There are two types of customers: Recreational and Expert.
At a career fair there are two types of job seekers, ones with low experience (Elow) and those with high experience (Ehigh). 70 Elows arrive per hour and 30 Ehighs arrive per hour. The Elows first
The local Department of Motor Vehicles issues new licenses and renews licenses. The office receives 110 customers per hour. All customers first see a receptionist. The receptionist directs them
Panini, a popular sandwich shop, offers 3 types of sandwiches: grilled vegetables, grilled chicken, and pastrami. Demand (sandwiches per hour) are Grilled Vegetables = 25, Grilled Chicken = 15, and
Evaluate the impact of increasing the usage of the new kiosks. To do this, first draw a process flow diagram that combines the three different flows (traditional process, NEXUS program, new kiosks).
GV is a small accounting firm supporting wealthy individuals in their preparation of annual income tax statements. Every December, GV sends out a short survey to its customers, asking for the
The implied utilization can never be bigger than 100 percent. True or false? a. True b. False
The resource with the largest total demand rate is the bottleneck. True or false? a. True b. False
The total demand rate for a resource is the sum of the individual demand rates that need to be processed by the resource. True or false? a. True b. False
A process has 10 resources and two types of flow units. How many columns will there be in the demand table? a. 2 b. 5 c. 10 d. 20
A process has six resources and three types of flow units. How many rows will there be in the demand table?a. 2 b. 3 c. 6 d. 18
What do you think of the comments of these two experts? Draw a process flow diagram for each of the two expert proposals. For each proposal, compute process capacity, labor utilization, and costs of
The White Tooth Device Company is a manufacturer of high-end electric toothbrushes. For each toothbrush, there are a sequence of assembly steps performed by five workers. Each worker does two tasks.
Mr. K’s is a very popular hair salon. It offers high-quality hairstyling and physical relaxation services at a reasonable price, so it always has unlimited demand. The service process includes five
It takes a lawyer 120 minutes to serve one customer. Demand is 2 customers per 8-hour day. The lawyer has a wage rate of $200 per hour. a. What is the cost of direct labor for the lawyer
Specialization typically leads to a higher average labor utilization. True or false? a. True b. False
Specialization increases the costs of labor because specialists will command a higher wage rate. True or false? a. True b. False
Balancing a process with a fixed sequence of activities will achieve a higher average labor utilization than balancing a process with no fixed sequence of activities. True or false? a.
It is possible to increase process capacity by balancing a process. True or false? a. True b. False
Which of the following actions does not relate to off-loading the bottleneck? a. Reassigning activities to other, nonbottleneck resources b. Automating some of the activities at the
What happens to the target manpower if the labor content is doubled? a. The target manpower increases by 50 percent. b. The target manpower doubles. c. The target manpower decreases by
How does the target manpower change as the demand rate increases? a. The target manpower increases. b. The target manpower stays the same. c. The target manpower decreases. d.
How does the takt time change as the demand rate increases? a. The takt time increases. b. The takt time stays the same. c. The takt time decreases. d. Cannot determine from the
If the takt time is shorter than the cycle time, the process needs to run faster. True or false? a. True b. False
Which of the following statements about takt time and cycle time is true? a. Takt time only depends on demand, not capacity. Cycle time does depend on capacity. b. Takt time only depends on
The bottleneck resource in a process has the least idle time. True or false? a. True b. False
A group of workers works really hard. In fact, they work so hard that one of them claims to have an average labor utilization of 120 percent. Is that possible? a. Yes b. No
A nonbottleneck worker currently has an idle time of 20 seconds per unit. Because of the large demand, the company improves the process by adding more capacity to the bottleneck. How does this impact
You and three of your friends run a car wash for a fund-raiser. Between interior and exterior cleaning, you spend about 40 minutes per vehicle. You are so successful that the next day you invite four
A process is replicated in another country where wages are 50 percent lower. Staffing and processing times are identical. What would be the effect on the costs of direct labor?a. Costs of direct
Imagine you could take a tour of the Tesla plant. To prepare for this tour, draw a simple process flow diagram of the operation. What is the cycle time of the process (assume two shifts of 8 hours
The local driver’s license center processes applications for driver’s license renewals through the following three steps. First, the customer registers with the receptionist, who updates the
An automated car wash serves customers with the following serial process: pretreat, wash, rinse, wax, hand dry. Each of these steps is performed by a dedicated machine except for the hand-dry step,

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