OPSM 330 Midterm Exam Questions with Verified Solutions Latest Update 2025/2026
Inputs (3 required for a service) - Answers customer self, customer belongings, customer
information - for producing a specific unit for that customer
Customer Survey - Answers to determine what customers want, not considered a service
Efficiency - Answers Doing the right thing - to cut a lawn using lawn mower, not scissors
Make to order - Answers a system that produces low volumes of customized product. stock >
processing > finished goods. Toward service side of chart (right)
Make to stock - Answers a system that produces high volumes of standardized product.
Consumes raw materials creates stock of finished goods. stock > processing > stock. Toward
manufacturing on chart (left).
Less capital investment - Answers Customized products generally involve
Maturity - Answers product produced in high volume by few organizations, it is in the majority
phase of product life cycle
Decrease - Answers the product price will _ as it ages
45 engines/6 workers*5 workdays = 1.5 engines per employee day productivity - Answers In a
machine shop, six employees repaired 45 engines during a 5-day workweek. How would
productivity be described?
673 visitors / 5 officers * 7 hours = 19.2 visitors per officer labor hour productivity - Answers
Five customs officers worked 7 hours each to check visas of 673 visitors at the airport. What is
the labor productivity of this group of five officers?
2010 meals / 8 workers * 6 hours = 41.875 meals per part time labor hours - Answers Eight
workers prepare 2010 meals in 6 hours. What is the labor productivity of the workers?
3 miles / (5000 wages + (3workers*25an hour*8hours) = .000536 miles of road per dollar -
Answers A road-paving crew required 8 hours to pave a 3-mile stretch using $5,000 in materials.
The crew consisted of three workers who each earn $25 an hour. Calculate a multifactor
estimate of productivity for this crew?
= 120
= 125
125 cars per day the second company - Answers An automobile company produces 600 cars
during 5 days, the other company produced 500 cars during 4 days. Which is more productive?
, a.) 85 poles / 5 hours = 17 poles per hour productivity
b.) The productivity will decrease by 5.89 poles per hour.
100 logs / 5 + 4 hours = Betty's productivity = 11.11 poles per hour
17 - 11.11 = 5.89
c.) Links's = .447 poles per $1 spent
85 poles / ((5 hrs * $30 labor hrs) + $40) = .447
Betty's = .303 poles per $1 spent
100 poles / ((9 hrs * $30 labor hrs) + $60) = .303 - Answers Link's lumber creates utility poles
from pine logs, a batch of 100 pine logs yields 85 utility poles with 5 labor hours required to
process the entire batch. Artemis expects that his friend, Betty, will sell him pine logs at the
same price from another company. The wood has a higher quality at the other company and
each batch of 100 logs yields 100 utility, although it will take an additional 4 hours.
a.) What is the current labor productivity at Link's?
b.) What will happen to labor productivity if Link's if Artemis is able to purchase lumber from
Betty?
c.) Suppose Link's buys batches of 100 logs for $40, but Betty wants $60 per batch. Assume
labor is $30 an hour, what are the appropriate mulitfactor productivity measures for production
from the current logs and production from Betty's logs?
Quality as conformance - Answers Which is an older concept: the idea of quality as
conformance or quality as improvement?
Assist quality as conformance - Answers Do control charts assist in monitoring quality as
conformance or quality as improvement?
Provision of a service is a greater challenge - Answers Which typically poses a greater challenge
in designing and monitoring product quality, the production of a good or provision of a service?
Inputs (3 required for a service) - Answers customer self, customer belongings, customer
information - for producing a specific unit for that customer
Customer Survey - Answers to determine what customers want, not considered a service
Efficiency - Answers Doing the right thing - to cut a lawn using lawn mower, not scissors
Make to order - Answers a system that produces low volumes of customized product. stock >
processing > finished goods. Toward service side of chart (right)
Make to stock - Answers a system that produces high volumes of standardized product.
Consumes raw materials creates stock of finished goods. stock > processing > stock. Toward
manufacturing on chart (left).
Less capital investment - Answers Customized products generally involve
Maturity - Answers product produced in high volume by few organizations, it is in the majority
phase of product life cycle
Decrease - Answers the product price will _ as it ages
45 engines/6 workers*5 workdays = 1.5 engines per employee day productivity - Answers In a
machine shop, six employees repaired 45 engines during a 5-day workweek. How would
productivity be described?
673 visitors / 5 officers * 7 hours = 19.2 visitors per officer labor hour productivity - Answers
Five customs officers worked 7 hours each to check visas of 673 visitors at the airport. What is
the labor productivity of this group of five officers?
2010 meals / 8 workers * 6 hours = 41.875 meals per part time labor hours - Answers Eight
workers prepare 2010 meals in 6 hours. What is the labor productivity of the workers?
3 miles / (5000 wages + (3workers*25an hour*8hours) = .000536 miles of road per dollar -
Answers A road-paving crew required 8 hours to pave a 3-mile stretch using $5,000 in materials.
The crew consisted of three workers who each earn $25 an hour. Calculate a multifactor
estimate of productivity for this crew?
= 120
= 125
125 cars per day the second company - Answers An automobile company produces 600 cars
during 5 days, the other company produced 500 cars during 4 days. Which is more productive?
, a.) 85 poles / 5 hours = 17 poles per hour productivity
b.) The productivity will decrease by 5.89 poles per hour.
100 logs / 5 + 4 hours = Betty's productivity = 11.11 poles per hour
17 - 11.11 = 5.89
c.) Links's = .447 poles per $1 spent
85 poles / ((5 hrs * $30 labor hrs) + $40) = .447
Betty's = .303 poles per $1 spent
100 poles / ((9 hrs * $30 labor hrs) + $60) = .303 - Answers Link's lumber creates utility poles
from pine logs, a batch of 100 pine logs yields 85 utility poles with 5 labor hours required to
process the entire batch. Artemis expects that his friend, Betty, will sell him pine logs at the
same price from another company. The wood has a higher quality at the other company and
each batch of 100 logs yields 100 utility, although it will take an additional 4 hours.
a.) What is the current labor productivity at Link's?
b.) What will happen to labor productivity if Link's if Artemis is able to purchase lumber from
Betty?
c.) Suppose Link's buys batches of 100 logs for $40, but Betty wants $60 per batch. Assume
labor is $30 an hour, what are the appropriate mulitfactor productivity measures for production
from the current logs and production from Betty's logs?
Quality as conformance - Answers Which is an older concept: the idea of quality as
conformance or quality as improvement?
Assist quality as conformance - Answers Do control charts assist in monitoring quality as
conformance or quality as improvement?
Provision of a service is a greater challenge - Answers Which typically poses a greater challenge
in designing and monitoring product quality, the production of a good or provision of a service?
