Operations Management Chapter 1 MCQs

Chapter 1: Operations management
Multiple-choice questions
Try the following questions to test your knowledge of this chapter. After you have answered the questions, click on 'Submit Answers for Grading' to get your results.
1 .
Which of the following functions is not a core function of an organisation? The marketing (including sales) function The product/service development function The accounting and finance function The operations function
2 .
Most operations produce a mixture of both products and services. Which of the following businesses is closest to producing pure services? Steel company IT company Counsellor/therapist A Restaurant
3 .
Operations can be classified according to their volume and variety of production as well as the degree of variation and visibility. Which of the following operations would be classified as high volume, low variety? A family doctor A front office bank A fast food restaurant A carpenter
4 .
Which of the following activities is not a direct responsibility of operations management? Designing the operations products, services and processes Developing an operations strategy for the operation Determining the exact mix of products and services that customers will want Planning and controlling the operation
Operations can be classified according to the degree of variation in demand and visibility of the operation as well as their volume and variety of
production. Which of the following operations would be classified as high variation and high visibility? A family doctor A carpenter A front office bank A fast food restaurant
6 .
Which of the following would not normally be considered a general characteristic of a service? Many services involve both tangible and intangible outputs Production and consumption can always be spatially separated Low contact services can often be made more efficient than high contact services Production and sales cannot easily be separated functionally Production and consumption are simultaneous
7 .
Which of the following would not be normally considered as a key feature of Operations Management? World class Operations can give an organisation competitive advantage Operations is the part of an organisation which creates wealth through the management of the transformation process Most new technology is implemented in Operations areas Operations researches mathematical techniques for optimising processes Operations is the area of a business where most people work
8 .
Which of the following is the least likely decision to be made by Operations Managers? Deciding which market areas to manufacture products for Designing and improving the jobs of the workforce How to use quality techniques to reduce waste How much capacity is required to balance demand Selecting the location and layout of a facility
Chapter 2: The strategic role and...
1 .
Hayes and Wheelwright developed a four stage model to evaluate the competitive role and contribution of the operations function. An operation which is broadly up with the best in the industry is said to have achieved: Internal neutrality Externally supportive External neutrality Internally supportive
2 .
There are five basic performance objectives which apply to all types of operation. They are: Quality, speed, dependability, flexibility, cost Quality, speed, adaptability, flexibility, cost Quality, speed, error-free, flexibility, price Quality, speed, dependability, flexibility, price
3 .
One of the five basic performance objectives is speed. Speed has a number of effects on the internal operation. It . . . increases inventories and increases risk increases inventories and reduces risk reduces inventories and reduces risk reduces inventories and increases risk
4 .
A company which specialises in high variety and the frequent introduction of new products/services would seek to primarily focus on which of the performance objectives? Speed Cost Quality Flexibility
5 .
An Operation that relies on repeat business would seek to primarily focus on which of the performance objectives?
Quality Speed Dependability Flexibility
6 .
According to the Hayes and Wheelwright model, the increasing strategic contributions of operations are: Defensive / contributive / supportive / manipulative Inwardly defensive / outwardly defensive / inwardly contributive / outwardly contributive Internally non-contributive / externally non-contributive / internally strategic / externally strategic Externally neutral / internally neutral / externally supportive / internally supportive Internally neutral / externally neutral / internally supportive / externally supportive
7 .
Slack defines the Five Performance Objectives for Operations as: Quality / speed / dependability / accessibility / cost Transformation / quality / speed / dependability / flexibility Quality / speed / dependability / flexibility / cost Cost / throughput / flexibility / cost / speed Improvement / quality / flexibility / reliability / cost
8 .
Slack describes Operations as potentially having three strategic roles within an organisation. Which one is correct? Implementer / supplicant / follower Decider / implementor / recipient Follower / supporter / facilitator Follower / supporter / driver Implementer / supporter / driver
Chapter 3: Operations strategy
1 .
There are four perspectives on operations strategy. The term emergent strategy is most closely associated with which perspective? Operations resources perspective Top-down perspective Bottom-up perspective Market requirements perspective
2 .
There are four perspectives on operations strategy. The term core competency is most closely associated with which perspective? Market requirements perspective Top-down perspective Operations resources perspective Bottom-up perspective
3 .
An order-winning factor could be described as: A factor which may be of significant in other parts of the organisation A factor which directly and significantly contribute to winning business A factor which has to be above a particular level to be considered by the customer A factor which is at a higher level than the standard for the industry
4 .
In the growth stage of the product/service life cycle, the operation is likely to focus on which combination of performance objectives? Speed, Dependability and Quality Speed, Quality and Cost Dependability, Quality and Cost Speed, Dependability and Cost
5 .
A model for comparing the gap between market requirements and achieved performance is: The Hill methodology The Platts-Gregory procedure
The operations strategy matrix The Operations resources perspective
6 .
A successful Operations Strategy would often address the following issues: Marketing Capability, Production Scheduling, Equipment Maintenance Distinctive Capabilities, Performance Goals, Core Competencies Sales Forecasts, Work Study, Method Study Economic Order Quantities, Stock Replenishment, Route Planning Joint Ventures, Technology Transfer, Measures of Performance
Chapter 4: Process design
Multiple choice questions

1.
The principle of the design funnel, progressively reducing the number of possibilities until the final design is reached, has its critics. Which of the following is not a criticism of the concept? Designs start as ill-defined and vague The process of design often involves cycling back Managers do not start out with an infinite number of options The number of options often increases as time goes by.
2.
The volume-variety position of an operation has implications for almost every aspect of its design activities. In a low volume, high variety operation which is the correct combination of design decisions? Product/service standardization low, Location can be decentralised, flow continuous Product/service standardization high, Location can be decentralised, flow intermittent Product/service standardization low, Location usually centralised, flow intermittent Product/service standardization low, Location can be decentralised, flow intermittent Which of the following is not an example of modularization?
3.
Package holidays Education Computers Electricity utility
4.
Which is the correct order for process types starting with low volume/high variety and moving to high volume/low variety? Project processes, jobbing processes, batch processes, mass processes, continuous processes Batch processes, project processes, jobbing processes, mass processes, continuous processes Project processes, batch processes, mass processes, jobbing processes, continuous processes Jobbing processes, batch processes, mass processes, continuous processes, project processes Service shops are characterised as which of the following? High-contact organisations where customers spend a considerable time in the service process Product orientated with little customisation Some customer contact, a degree of customisation and some staff discretion Many customer transactions, involving limited contact time
5.
6.
In a jobbing process the main order winning criterion is generally: Time Volume Cost Capacity Rate of production Capability
7.
Which is the correct sequence in order of increasing process flexibility? Jobbing / batch / project / continuous / line Project / jobbing / batch / continuous / line Jobbing / batch / project / line / continuous
Project / jobbing / batch / line / continuous Continuous / line / batch / jobbing / project
8.
Which is the correct sequence in order of decreasing process flexibility? Jobbing / batch / project / continuous / line Continuous / line / batch / jobbing / project Project / jobbing / batch / line / continuous Project / jobbing / batch / continuous / line Jobbing / batch / project / line / continuous
9.
Which of the following statements is incorrect? Design activity has the following characteristics: Satisfies the needs of customers Is concerned primarily with goods and services Applies to both products and services Is itself a transformation process Will develop products and services which are easy to produce or deliver
10 .
Which of the following statements would generally be considered as correct? Job shops can produce a larger range of products than project systems Job shops normally compete by offering a lower price than their competitors Production runs are shorter for continuous flow systems than for mass production systems Labour costs are higher in a Job Shop operation than in most other processes Batch processing produces a more standard range of products than continuous flow processes
11 .
Characteristics of line or continuous process types usually include: Dedicated processes The ability to handle high variety High capacity
Short process times The ability to handle high volumes
12 .
Which of the following is not a characteristic of a line process? Processes are linear and often continuous but can be stopped Products or services are standard and are produced in a large volume Work is not fixed but moves through a sequence of operations Operations and equipment are dedicated to the product The product or service will be made to a specific customer order
13 .
Which one of the following is generally considered a characteristic of a line process? Products or services are unique Work is not fixed but moves through a sequence of operations The product or service will be made to a specific customer order Work is typically controlled by one operator who moves the work to the processes Customers buy the organisations capabilities
14 .
Which of the following is generally considered a characteristic of a project process? Processes are linear and often continuous but can be stopped The product or service will be made to a specific customer order Work is not fixed but moves through a sequence of operations Operations and equipment are dedicated to the product Products or services are standard and are produced in a large volume
15 .
Commonly used process flow chart symbols include those for: Responses / movements / inputs / outputs / inspection Priority / sequences / delays / storage / operations Operations / movements / inspection / delays / storage Movements / operations / equipment / storage / inspection Equipment / operations / inspection / storage / fire-fighting
Equipment / operations / inspection / storage / insertion

Chapter 5: The design of products and...

1 .
There are 5 main stages in design of products or services. Which is the correct sequence? Concept generation, Screening, Preliminary design, Evaluation and improvement. Prototyping and final design Concept generation, Screening, Preliminary design, , Prototyping and final design, Evaluation and improvement Preliminary design, Screening, Concept generation, Evaluation and improvement. Prototyping and final design Preliminary design, Screening, concept generation, prototyping and final design, evaluation and improvement As part of concept generation a company may use focus groups. A focus group will typically comprise: Staff who take apart competitors services/products and focus on how it has been made People identified at random by street market researchers Contact staff in a service organisation or the salesperson in a productorientated organisation 7-10 participants who are unfamiliar with each other and have certain characteristics in common that relate to the particular topic.
2 .
3 .
There are many techniques which can be used for documenting processes or blueprinting, all have two main features: Flow process charts and the customer-processing framework Specify the component products and services and define the processes to create the package Determining the overall shape of the product or service and the way in which the product or service operates Show the flow of materials/people/information through the operation and identify the different activities that take place during the process
4 .
The main purpose of Taguchi methods is to: Create a house of quality
Articulate the voice of the customer Test the robustness of a design Reduce costs and prevent any unnecessary costs before producing the product or service
5 .
Which of the following is not a factor which can significantly reduce time to market for a product or service? An organisational structure which reflects the development project Separation of the design of products and services from the design of the processes which will produce them An early resolution of design conflict and uncertainty Simultaneous development of the various stages in the overall process
Chapter 6: Supply network design (+...

1.
Vertical integration is: Reducing the number of direct suppliers The purchase of competitor businesses The extent to which an organisation owns the network of which it is part Increasing the number of customers
2.
Second-tier suppliers in Company A network are: Suppliers of non-core goods directly to Company A Suppliers of goods/services to companies that, in turn, supply Company A Stand by suppliers of goods to Company A Suppliers of goods directly to Company A
3.
According to Lord Sieff of Marks and Spencer what are the three most important things in retailing? Quality suppliers, quality shops and quality staff Location, location, location
Quality goods, keen prices and helpful staff Customers, Staff and Quality Goods
4.
The centre-of-gravity method to find a location for a factory works by: Locating near to a cluster of suppliers Locating near to the main customer Locating near to the main supplier Locating in a place which minimizes total transport costs to and from the location
5.
An advantage of a capacity lagging strategy is that: Utilization of the plants is always relatively low No ability to exploit short-term increases in demand Over-capacity problems are minimized if forecasts are optimistic Always sufficient capacity to meet demand
6.
Factors affecting the location decision include: Labour costs / land availability / environmental restrictions Sales forecasts / capacity planning / road access Labour costs / land availability / capacity planning Sales forecasts / road access / land cost Land cost / skills availability / capacity planning
7.
Which of the following statements would be considered as incorrect? The decision to locate a business in a particular place may depend on: The most efficient arrangement of equipment within existing facilities The cost and availability of land The centre of gravity in relation to customers and suppliers The availability and cost of labour The potential for effective capacity management strategies Personal considerations on the part of those making the decision
8.
A demand forecast predicts: A companys output A companys material funding requirements A companys profitability A companys capacity requirements A companys sales
9.
Sales of computers over the last five months were January 34 / February 37 / March 28 / April 37 / May 39. What is the difference between the three-month moving average forecast for May and the actual sales? 3 4 5 6 7
10 .
Sales of radios over the last five months were January 34 / February 37 / March 28 / April 37 / May 39. What is the difference between the threemonth moving average forecast for April and the actual sales? 3 4 5 6 7
11 .
Sales of A4 white paper reams for the last six months were March (250), April (280), May (290), June (270), July (250), August (230). What is the 4 month moving average forecast for September? 230 240 250 260 270
12 .
Sales of cars in a garage over the last five months were January 28 / February 33 / March 34 / April 34 / May 28. What is the three month moving average forecast for June? 28 29 30 31 32
13 .
Long term capacity management strategies to overcome a forecast increase in demand might involve which of the following? Subcontracting work / hiring equipment / acquiring a similar business Renting property / subcontracting work / hiring temporary labour Acquiring a similar business / recruiting new permanent staff / building a new factory Using temporary staffing / building a factory extension / establishing a joint venture with a similar company Building a new factory / leasing property / working additional hours
Chapter 7: Layout and flow

1.
The lay out where the equipment, machinery, plant and people move as necessary is known as: Fixed-position layout Cell layout Product layout Process layout
2.
A supermarket is usually positioned as: Product layout Process layout
Fixed-position layout Cell layout
3.
A self-service cafeteria is usually positioned as: Process layout Cell layout Fixed-position layout Product layout
4.
A process with high variety and low volume is likely to have a: Fixed-position layout Cell layout Process layout Product layout
5.
Which of the following is not an advantage of a long-thin line? Simple materials handling Lower capital requirements Higher mix flexibility Controlled flow of materials or customers
6.
Which of the following is usually considered a characteristic of a product or line layout? Transforming resources are costly to maintain This layout tends to be very flexible This layout can easily handle high variety but low volume Transforming resources move to the work This layout can easily handle high volume but low variety
7.
A product layout: Moves resources to the place where the operation is to be carried out Allows a wide variety of products to be manufactured on the same equipment Is appropriate for low volume operations
Groups transforming resources into dedicated cells Involves locating the transforming resources entirely for the convenience of the transformed resources
8.
Cell layouts typically: Involve all the operations on a product being located adjacent to each other Cost more to run than other types of process layout Are dominated by the transforming resources Are the most efficient form of process layout Locate transforming resources entirely for the convenience of the transformed resources
9.
Which of the following is not usually considered a characteristic of a fixed position layout? Transforming resources are grouped in cells Fixed position layouts are able to offer high flexibility The recipient of the process or the work being undertaken remain in the same place Transforming resources often move to the work Fixed position layouts are often used for large or delicate products or services
10 .
A company has fixed costs of 200,000 per annum. It costs 3.50 to make each of its products. At what price would the company have to sell its products to give a break-even volume of 50,000 units? 7.00 7.50 8.25 4.50 8.00
11 .
A company has fixed costs of 300,000 per annum. It costs 5.50 to make each of its products. At what price would the company have to sell its products to give a break-even volume of 20,000 units? 16.00 20.00
18.50 17.25 20.50
12 .
If the manufacturing cost of a product is $4.25, and the fixed overhead of the company is $23,000 per annum, what would the selling price have to be with a break-even volume of 14,000 units? $5.53 $8.12 $4.89 $5.27 $5.89
13 .
A bank intends to offer its financial services via the Internet. Customers with a personal computer and modem can request a transaction at any time. The bank needs to lease the equipment needed at an annual cost of 15,000. Each transaction costs the bank 0.56p. It plans to charge customers 0.75p for each transaction regardless of size. In order for the service to break even, how many customers must access the system each year? 78,947 48,797 63,127 106,357 195,647
14 .
Some of the banks staff believe that just as many customers will use the system if the transaction charge is raised to 1. At what volume would the service then break even? 12,110 24,726 31,912 34,091 236,954
15 .
A bank intends to offer its financial services via the Internet. Customers with a personal computer and modem can request a transaction at any time. The bank needs to lease the equipment needed at an annual cost of 20,000. Each transaction costs the bank 0.32p. It plans to charge customers 0.75p for each transaction regardless of size. In order for the service to break even, how many customers must access the system each year? 46,511 38,956 123,759 96,478 69,045
16 .
Some of the banks staff believe that just as many customers will use the system if the transaction charge is raised to 1. At what volume would the service then break even? 84,890 17,864 67,928 21,697 29,412
Answer choices in this exercise are randomized and will appear in a different order each time the page is loaded.
Chapter 8: Process technology

1 .
Flexible manufacturing systems (FMS) are reported to have a number of benefits. Which is not a reported benefit of FMS? Lead-time and throughput time reduction More flexible than the manufacturing systems they replace Increased quality
Increased utilisation
2 .
Process technologies differ in their flexibility capabilities and economics and will therefore be appropriate for different parts of the volume-variety matrix. Flexible manufacturing systems are usually: High Variety , low volume Mid variety, mid volume Mid variety, high volume Low Variety, Mid volume
3 .
Another form of Process technology are Dedicated systems. Dedicated systems are usually placed on the volume-variety matrix: High Variety , low volume Mid variety, high volume Low Variety, High volume Low variety, mid volume
4 .
What do Flexible Manufacturing systems (FMS) do? Completely manufactures a range of components without significant human intervention during the processing Moves materials between operations Moves and manipulates products, parts or tolls Co-ordinates the whole process of manufacturing and manufactures a part, component or product
5 .
Which materials-processing technology gives the advantage of precision, accuracy, optimum use of cutting tools which maximise their life and higher labour productivity? Computer-integrated manufacturing (CIM) Flexible manufacturing systems (FMS) Industrial robots NC (and CNC) machine tools
Chapter 9: Job design and work...
1.
Over the years different approaches to job design have developed. Put these 4 approaches in chronological order. Scientific Management, Division of Labour, Ergonomics, Behavioural Approach Division of Labour, Scientific Management, Ergonomics, Behavioural Approach Division of Labour, Scientific Management, Behavioural Approach, Ergonomics Ergonomics, Scientific Management, Behavioural Approach, Division of Labour
2.
Frederick Winslow Taylor is best known for the introduction of which approach to job design? Division of Labour Behavioural Approach Ergonomics Scientific Management
3.
In Work Measurement terms Standard Performance is defined as: The rate of output which qualified workers will achieve without over-exertion as an average over a working day provided they are motivated to apply themselves to their work The rate of output which qualified workers will achieve as an average over a working day provided they are motivated to apply themselves fully during the whole day The rate of output which average workers will achieve without over-exertion as an average over a working day The rate of output which trained workers will achieve as an average over a working day provided they are motivated to apply themselves to their work Ergonomics is not concerned with which of the following aspects: Supervisory skills Working temperatures Noise levels Illumination levels
4.
5.
In Behavioural Approaches to Job Design which approach adds greater tasks and greater control over the job? Job rotation
Empowerment Job enrichment Job enlargement
6.
The father of Scientific Management is: Henry Ford Henri Gantt Frederick W. Taylor W. Edwards Deming Tom Peters
7.
Job Rotation: Is a programme through which management seeks greater productivity from workers Involves giving employees work with a greater degree of responsibility and autonomy Involves allocating a wider range of similar tasks to individuals Means that staff are moved periodically from task to task in order to increase variety and interest Is another term for employee empowerment
8.
Job Enlargement: Involves giving employees work with a greater degree of responsibility and autonomy Involves allocating a wider range of similar tasks to individuals Is a programme through which management seeks greater productivity from workers Means that staff are moved periodically from task to task in order to increase variety and interest Is another term for employee empowerment
9.
Job Enrichment: Involves allocating a wider range of similar tasks to individuals Means that staff are moved periodically from task to task in order to increase variety and interest Is a programme through which management seeks greater productivity from workers
Increases the amount of money employees are paid for completing an unit of work Involves giving employees work with a greater degree of responsibility and autonomy
10 .
A worker rated as 120% efficient was observed to have completed 15 cycles of a job in 20 minutes (without allowances). If an allowance of 20% is made for idle time / breakdowns etc, what is the standard production time per unit? 2.84 minutes 2.23 minutes 1.89 minutes 1.92 minutes 2.03 minutes
11 .
A worker rated as 90% efficient was observed to have completed 12 cycles of a job in 20 minutes (without allowances). If an allowance of 15% is made for idle time / breakdowns etc, what is the standard production time per unit? 1.56 minutes 1.97 minutes 1.94 minutes 2.06 minutes 1.72 minutes
12 .
A worker rated as 110 % efficient was observed to have completed 12 cycles of a job in 36 minutes (without allowances). If an allowance of 20% is made for idle time / breakdowns etc, what is the standard production time per unit? 4.45 minutes 4.30 minutes 3.96 minutes 4.52 minutes 4.02 minutes
13 .
A worker rated as 115% efficient was observed to have completed 14 cycles of a job in 20 minutes (without allowances). If an allowance of 15% is made for idle time / breakdowns etc, what is the standard production time per unit? 2.75 minutes
1.93 minutes 1.06 minutes 2.59 minutes 3.21 minutes
14 .
Within a typical behavioural model of job design, which of the following would be considered as representing core job characteristics? Cultural advancement / absenteeism / nationality Quality / cost / mutuality Vertical loading / skill variety / output Task combination / task identity / autonomy Task identity / task significance / autonomy
Chapter 10: The nature of planning and...

1.
When sequencing jobs an approach which may be used to help in a cash constrained situation is: Last in first out (LIFO) First in first out (FIFO) Longest operation time first (LOT) Shortest operation time first (SOT)
2.
Johnsons Rule applies to the sequencing of n jobs through two work centres. It states that: The job with the longest processing time for the first process should be done first and the job with the smallest processing time for the second process should be done last The job with the smallest processing time for the first process should be done first and the job with the longest processing time for the second process should be done last The job with the longest processing time for the first process should be done first and the job with the longest processing time for the second process should be done last
The job with the smallest processing time for the first process should be done first and the job with the smallest processing time for the second process should be done last
3.
Which of the following is not an advantage of backward scheduling? Lower material costs materials are not used until they have to be, therefore delaying added value until the last minute Less exposed to risk in case of schedule change by the customer Tends to focus the operation on customer due dates Flexible the time slack in the system allows unexpected work to be loaded
4.
Which of the following operations would normally be considered the most difficult to control? Production of electricity Car Manufacturer Care provision for old people Fast food outlet
5.
Which of the following operations is more likely to be a pull rather than push operation? A food manufacturer A farmer A company that builds computers to order A brewery
6.
In order to cope with changes in demand, organisations often use some of the following techniques as a buffer around a stable core of capacity: Inventory / short term capacity adjustments / Taguchi techniques Short term capacity adjustments / decision trees / forward loading Master production scheduling / inventory / order backlog Inventory / forward loading / short term capacity adjustments Decision trees / forward loading / inventory
7.
Which of these statements does not apply to independent demand (for a product)? Is dependent on the demand for other related products and services
Is often predicted on the basis of past demand Must be forecast is not dependent on the demand for other related products and services Can apply equally to services
8.
Scheduling the operation: Determines the volume that an operations system can cope with Sequences work through a series of operations Decides on the start and finish times for each task Determines the priority of tasks to be performed Assumes that capacity must be infinite
9.
The maximum output of an operations system in a given period is called the: Capacity plan Designed capacity Production forecast Master production schedule Break-even point
10 .
Loading the operation: Assumes that capacity must be infinite Determines the volume that an operations system can cope with Decides on the start and finish times for each task Determines the priority of tasks to be performed Determines the order in which work is to be processed
11 .
When considering control tasks, loading is associated with work volume, sequencing is associated with work priorities, and scheduling is associated with: The order in which work is processed Work start and finish times The work rate from an operation or process Work order scheduled receipts
Work done relative to customer order delivery dates
12 .
Sequencing the operation: Assumes that capacity must be infinite Determines the volume that an operations system can cope with Decides on the start and finish times for each task Determines the order in which work is to be processed Determines the priority of tasks to be performed
Chapter 11: Capacity planning and...

1.
The first steps of capacity planning and control do not include: Choosing the most appropriate capacity plan? Identifying the alternative capacity plans? Measuring aggregate demand and capacity? Studying the effect of queueing theory
2.
Which of the following alternative methods of responding to demand fluctuations is not appropriate: Increase marketing activity and develop a chase demand plan? Ignore the fluctuations and apply a level capacity plan? Attempt to change demand to fit available capacity using demand management? Adjust capacity to reflect the fluctuations through a chase demand plan?
3.
Yield management is not especially useful where: The service/product can be stored Capacity is relatively fixed The service cannot be sold in advance The market can be fairly clearly segmented
4.
Which of the following is not a measure of utilisation?
Load factor for aircraft Uptime in a factory Room occupancy level in hotels Number of hours available for production
5.
What is meant by yield management? Expanding the operation at periods of high demand in order to yield more sales revenue The maximisation of profit through capacity, demand and pricing policies Overbooking capacity to ensure that all capacity is filled at all times Encouraging growth in demand during periods of low demand and restraining it during periods of high demand
6.
The most favourable solution to non-uniform demand is probably to: Use overtime or part-time workers Hire or lay off workers as required Employ a mixed capacity management plan Always maintain excess capacity Build up sufficient inventory to meet heavy demand
7.
Capacity is usually expressed in terms of: Man-hours available without overtime Potential output from an operations system The design life of an operations process The Master Production Schedule A production forecast
8.
The maximum output of a system in a given period is called: The designed capacity The economic order quantity The production efficiency The breakeven point The master production schedule
9.
With a chase demand strategy, which one of these statements is correct? Outputs are stored until required Processes are buffered through inventory Throughput rates respond to changes in demand Staff turnover is likely to be high Investment in plant and equipment will probably be low
10 .
With a level capacity plan, which one of these statements is correct? Processing capacity will vary according to demand Staff turnover is likely to be low Processes are buffered through inventory Throughput rates respond to changes in demand Outputs are stored until required
11 .
The efficiency of an Operations system is measured in terms of its: Actual output against effective capacity Effective capacity against designed capacity Designed capacity against nominal capacity Effective capacity against scheduled throughput Actual output against designed capacity
12 .
In an operating system, processes A / B / C have the following maximum designed capacity A = 1600 units / B = 1550 units / C = 1800 units. If the actual measured output is 1400 units, what is the system efficiency? 95% 105% 85% 90% 75%
13 .
In an operating system, processes A / B / C have the following maximum designed capacity A = 1700 units / B = 1650 units / C = 1800 units. If the actual measured output is 1400 units, what is the system efficiency?
105% 85% 75% 95% 90%
14 .
Super Computers Ltd. have 10 staff who spend 40 hours per day making a total of 140 computers. By redesigning their manufacturing process, they increase output to 160 per day. What is the increase in productivity? 10.87% 8.26% 20.0% 14.29% 12.50%
15 .
Expert Electronics Ltd. have 5 staff who spend 40 hours per day making 150 computers. By redesigning their manufacturing process, they increase output to 160 per day. What is the increase in productivity? 6.06% 5.97% 7.77% 6.66% 4.34%
16 .
The following figures were reported at a management meeting for the kitchen facility of a restaurant actual output was 62 hours, design capacity is 150 hours, and the effective capacity was 120 hours. What are respectively the kitchen facilitys utilisation and efficiency? 0.54 & 0.68 0.48 & 0.63 0.41 & 0.52 0.38 & 0.41 0.63 & 0.57
17 .
Measurement has revealed the following information on an operations system. Design capacity was 84 units per hour, planned losses were 12 units per hour, and actual output was 65 units per hour. What were the utilisation and efficiency of the operation respectively? 54% & 92% 68% & 83% 77% & 84% 78% & 90% 77% & 90%
Chapter 12: Inventory planning and...

1.
Buffer inventory is required as: Compensation for the uncertainties inherent in supply and demand One or more stages in the operation cannot supply all the items it produces simultaneously Material cannot be transported instantaneously between the point of supply and the point of demand Compensation for differences in the timing of supply and demand
2.
Cycle inventory is required as: Compensation for differences in the timing of supply and demand Material cannot be transported instantaneously between the point of supply and the point of demand One or more stages in the operation cannot supply all the items it produces simultaneously Compensation for the uncertainties inherent in supply and demand
3.
The EOQ formula has been criticised in a number of areas. Which of the following is not an area of common criticism? The use of the models as prescriptive devices Small errors in estimating will not result in a significant deviation from the EOQ The assumptions included in the models
The real costs of stock in operations
4.
What is a two-bin system? A system in which suppliers deliver two bins at a time A system in which orders are placed when only one complete bin of stock is remaining A system in which everything is split between two storage bins A system in which two full bins of an item are always held in stock
5.
Under the ABC system of inventory priorities a Class A item is: The 80% of high-value items that account for around 80% the total stock value The 20% of high-value items that account for around 80% the total stock value The 20% of high-value items that account for around 20% the total stock value The 80% of high-value items that account for around 20% the total stock value Order-point or re-order level inventory control is used for: Production scheduling Control of dependent demand inventory items Inventory quality control Control of independent demand inventory items Monitoring the workings of a MRP system
6.
7.
Which of these statements is correct? The Economic Order Quantity (EOQ): Will depend on how many related parts are required in the same period Determines the lowest order quantity by balancing the cost of ordering against the cost of holding stock Is used to calculate how much safety stock should be carried Should be calculated once a year Is a formula that calculates a realistic purchase price for an item
8.
One of the underlying assumptions of the EOQ model is that :
The purchase price per unit varies with the quantity ordered A doubling of demand requires a doubling of the order quantity Replenishment is non-instantaneous Demand is unstable and unpredictable There is a point where stockholding costs are equal to ordering costs
9.
Which would be the most appropriate method of controlling stock in a retail shop? Order Point Periodic Review Just-in-Time Two-Bin System Materials Requirements Planning
10 .
Which would be the most appropriate method of controlling stock in a hotel bar? Order Point Periodic Review Two-Bin System Poke-Yoka Materials Requirements Planning Just-in-Time
11 .
Periodic review means: Ordering inventory at a predetermined re-order level Ordering inventory to supplier call-offs on an as required basis Ordering inventory when it falls below the designated safety stock level Ordering inventory in consultation with suppliers relative to their available capacity Ordering inventory at a fixed and regular time interval
Chapter 13: Supply chain planning and...
1.
Single-sourcing has a number of advantages, which is not an advantage of single sourcing: Better communication Wide sources of knowledge and expertise to tap Dependency encourages more commitment and effort Durable relationships with individual suppliers
2.
Single-sourcing does NOT encourage which of the following outcomes: Contracts are easier to break off More economies of scale are possible Cooperation on new products and services is also easier Greater confidentiality is possible
3.
Which of the following is not a disadvantages of single-sourcing? The supplier might force up prices if no alternative source is available? The buyer's firm is more vulnerable to disruption if a supply failure occurs? A single supplier is more affected by fluctuations in volume? Less easy to develop effective SQA
4.
Disadvantages of multi-sourcing do not include: Suppliers are likely to form a cartel and drive up prices? More vulnerable to disruption if a failure to supply occurs Difficulties in encouraging commitment by all suppliers? Developing supplier quality assurance standards is less easy?
5.
Multiple-sourcing has a number of advantages, which of the following is not an advantage? More scale economies A wider source of knowledge and expertise is available? The purchaser can drive down prices through competitive tendering?
Sources can be switched in case of supplier failure?
6.
Which of the following describes the situation where the buyer makes proportional payments in advance, usually as part of a capital contract? Unliquidated damages Stage payment Performance bond Retention Retainer
7.
Which of the following must be present for a valid contract to be in place? Aggregation Assertion Agreement Approval Affirmation
8.
When considering negotiation objectives, the acronym LIM stands for which types of objectives? Like / Intend / Must Least / Intend / Must Least / Internal / Major Like / Intend / Most Least / Important / Most
9.
The Negotiating Styles Model allows a negotiator to recognise his or her natural negotiating style. Which of the following pairs are recognised styles? Defeat / Differentiate Differentiate / Appease Compromise / Annoy Accommodate / Compromise Withdraw / Defend
10
The Procurement Positioning Model is used to classify purchases in terms of
risk and opportunities for cost saving. By decreasing importance to the organisation the four categories used in the model are: Strategic / Critical / Leverage / Routine Strategic / Leverage / Critical / Routine Required / Significant / Major / Strategic Critical / Leverage / Necessary / Routine Routine / Leverage / Criticality / Strategic
11 .
The fallback position in a negotiation (the point beyond which non-agreement is likely) is sometimes known by the acronym: BANTA AMBA BANDA TANDA BATNA
12 .
What is the achievement of an equivalent financial saving or benefit that is not based on a movement in unit price? Best value Total Acquisition Cost Warranty value Added value Cost improvement
13 .
If the market price of an item has moved from 45 to 48, but you continue to buy items at 45, which of the following has occurred? A price decrease of 3 has occurred A price flexing of 3 has occurred An opportunity cost of 3 has occurred A price avoidance of 3 has occurred A price negation of 3 has occurred
14 .
The technique used to measure supplier performance over a period of time is usually known as:
Pareto Analysis Supplier Appraisal Manufacturing Resources Planning Vendor Rating Vendor Managed Inventory
15 .
Which of the following pricing policies known might a supplier adopt in order to reduce its sales? A market saturation policy A profit maximisation policy A full cost absorption policy A market forces analysis policy A market penetration policy
Chapter 14: Enterprise resource...

Try the following questions to test your knowledge of this chapter. After you have answered the questions, click on 'Submit Answers for Grading' to get your results..
1 .
MRP stands for: Master Resources Production Management Reaction Planning Manufacturing Resource Planning Materials Requirements Planning
2 .
MPS stands for: Master Planning System Master Production Schedule Material Planning System Material Production Schedule
Closed Loop MRP means:
Actual sales are netted off the forecasts in the MPS Actual inventory is counted regularly and adjustment made to the inventory records Unused materials are returned to stores and recorded back into the system Capacity and resource planning is included in the MRP logic
4 .
Optimized production technology (OPT) is a computer-based technique and tool which helps to schedule production systems. Which of the following are not principles of OPT? Balance flow is what is required Capacity is king Process batch should be variable Bottlenecks govern throughput
5 .
Enterprise Resource Planning (ERP) has been criticised on a number of grounds. Which of the following is not a common criticism of ERP? It doesnt allow decisions and databases from all parts of the organisation to be integrated It can have a disruptive effect on the organisations operations Implementation is expensive The effect it has on businesses is disappointing
6 .
In MRP (Materials Requirements Planning) the Bill of Materials is: The difference between planned receipts and current stocks A list of required safety stock items The product structure showing where common parts are used The required output from a process over time The sum of stock-on-hand and work-in-progress
7 .
The outputs of a MRP II system are: Capacity requirement plans / stock quantities / stock locations Material Requirement Plans / scheduled purchase orders / capacity requirement plans Stock quantities / Bills of Materials / Master Production Schedule Master Production Schedule / capacity requirement plans / stock locations
Sales order priorities / Bills of Materials / Material Requirement Plans
8 .
Three inputs for every MRP system are: Stock on hand, Master Production Schedule, Bill of Materials Average replenishment time, re-order point, economic order quantity Bill of Materials, sales forecast, sales history Master Production Schedule, Bill of Materials, sales forecast Sales forecast, delivery costs, capacity plan
9 .
Complete the MRP spreadsheet below for a component which is ordered in varying quantities over weeks 1 7. Which answer correctly gives the Xs?
6 / 43 / 31 / 51 / 64 / 54 / 59 6 / 19 / 7 / 37 / 50 / 40 / 45 6 / 19 / 7 / 27 / 40 / 30 / 35 30 / 33 / 21 / 41 / 54 / 44 / 49 30 / 17 / 5 / 25 / 38 / 28 / 33
1 0 .
36 / 49 / 33 / 43 / 56 / 46 / 51
12 / 25 / 19 / 9 / 22 / 32 / 27 12 / 25 / 9 / 19 / 32 / 22 / 27 12 / 25 / 19 / 9 / 32 / 22 / 27 36 / 13 / 29 / 19 / 6 / 16 / 11
1 1 .
15 / 26 / 16 / 36 / 41 / 31 / 46 5 / 18 / 28 / 46 / 51 / 41 / 36 5 / 15 / 10 / 21 / 26 / 16 / 31 15 / 22 / 36 / 26 / 31 / 21 26 5 / 18 / 8 / 26 / 31 / 21 / 26
1 2 .
17 / 22 / 32 / 52 / 47 / 37 / 32 7 / 17 / 27 / 47 / 22 / 12 / 17 7 / 17 / 7 / 27 / 32 / 22 / 27 7 / 37 / 57 / 37 / 12 / 22 / 17
17 / 27 / 17 / 37 / 12 / 2 / 7
Chapter 15: Lean operations and...

1 .
Just-in-time (JIT) does NOT include which one of the following? Batch sizes of one Fast-throughout manufacturing High inventory production Lean manufacturing
2 .
Basic just-in-time techniques do NOT include: Line-stop authority Quality of working life (QWL) Market research Flexibility
3 .
Visibility measures used in just-in-time (JIT) would NOT include: Visual control items such as kanban Displays showing improvement techniques and checklists Samples of competitor's products, including good and defective items Hidden TV cameras to monitor individual staff at work
4 .
Levelled scheduling (heijunka) is the Japanese derived term for levelling the production schedule so that: Volume and yield are even over time Mix and quality level are even over time Mix and yield level are even over time Mix and volume level are even over time
5 .
Just-in-time (JIT) does not require:
Dependable supply parts and reliable equipment Focus on high capacity utilisation No disruption in production due to quality errors Customer demands met from production not inventory
6 .
Which of the following statements about Just-in-Time is correct? JIT is essential for a company involved in project work JIT pushes inventory through the operations process JIT will overcome poor component manufacture JIT is only useful in a high product variety environment JIT seeks to reduce inventory in an effort to reduce waste
7 .
Just-in-Time production implies: A wide range of suppliers will be needed to meet increased demand That increased complexity means that processes must be controlled using computer based production systems An increase in total inventory to cater for the likelihood of more frequent stockouts Large batches of similar products will need to be manufactured to increase efficiency That products will be pulled through the operations system to meet customer demand
8 .
Which one of the following would not be considered a pre-requisite for successful Just-in-Time production? Sophisticated production and materials planning computer systems Relative stability of demand Low variety of product range Preventive maintenance of equipment Reliable deliveries of defect-free materials
9 .
Which one of the following would be considered a pre-requisite for successful Just-in-Time production? The preparation of a Master Production Schedule High variety of product range
Preventive maintenance of equipment Suppliers in multiple locations Sophisticated production and materials planning computer systems
Chapter 16: Project planning and control

1.
Which of the following elements is not normally common in projects? Uncertainty No defined end point An objective Uniqueness
2.
Successful project management does NOT include which of the following factors? Competent team members Control mechanisms Responsiveness to clients Interchangable staff
3.
Which is the first stage in the project management model? Project planning Project definition Understanding the project environment Project control
4.
A clear hierarchy of objectives in the project definition would not normally contain: The purpose Desired end result Control mechanisms
Success criteria
5.
A critical path network diagram does not: Help determine the amount of float Identify the particularly important activities Calculate earned-value Calculate the duration of the whole project
6.
What is the critical path through the following network?
ABDEF ABGHIF & ABDEF ABGHIF ABCF ABCEF
7.
What would be the critical path if the duration of activity C increased to 10? ABDEF ABGHIF ABCF ABGHIF & ABDEF ABCEF
8.
What is the critical path through the following network?
ABGHIF ABCEF ABCF ABGHIF & ABDEF ABDEF
9.
What would be the critical path if the duration of activity C decreased to 6? ABGHIF & ABDEF ABCEF ABGHIF ABCF ABDEF
10 .
Which of the following are features of Belbins resource investigator role? Sober, unemotional and prudent Extroverted, enthusiastic and communicative Unorthodox, discerning, single-minded Calm, self confident and controlled Painstaking, orderly and conscientious
11 .
Which of the following are features of Belbins coordinator role? Mature, confident, delegates Sober, unemotional and prudent Calm, self confident and controlled
Unorthodox, discerning, single-minded Extroverted, enthusiastic and communicative

Chapter 17: Quality planning and control

1 .
Professor David Garvin categorized quality into 5 different approaches: the transcendent, the manufacturing-based, the user based, the product based and the value based. Making sure a product or service is "fit for its purpose" is which kind of approach? User-based Product based Transcendent Manufacturing-based
2 .
The Operations view of Quality is "Quality is consistent conformance to customers' expectations". By this it is meant that: There are clear specifications consistently met which provide customers with what they would realistically believe they should receive The product must be right every time irrespective of cost to the operation The product will be seen as synonymous with innate excellence Anything the customer wants and desires should be provided by the organization
3 .
Using Statistical Process Charts (SPC) on a process in control, what is the number of parts that will fall outside +/- 3 standard deviations of the mean? 45 per thousand 3 per thousand 0 63 per million
4 .
The various definitions of quality do NOT include: The value-based approach
The manufacturing-based approach The minimum specification approach The transcendent approach
5 .
Quality control charts does not need to be investigated when: Four consecutive points appear one side of the centre line Two consecutive points are near the control limits An apparent trend occurs in one direction Suspiciously 'average' behaviour occurs
6 .
If a sample of parts is measured and the average of the sample measurements is in the middle of the tolerance limit, but some parts measure too low and other parts measure too high: The process is in control, and no further action need be taken The process is out of control The process is in control but not capable of producing within the established limits The process is in control, with only natural causes of variation The process is neither capable, nor in control
7 .
Which of the following statements is correct? Inspection provides the management information necessary to improve processes Inspection determines the root cause of product failures Inspection always ensures that customers will be satisfied with goods and services Inspection is the most cost effective way of ensuring quality Inspection separates acceptable from unacceptable products
8 .
Statistical Process Control is concerned with: Identifying the security needs of an Operations system Determining the efficiency of an operations system Measuring and controlling process variations Inspecting goods before despatch
Measuring the amount of re-work required to rectify faulty goods
9 .
Among the Ten Determinants for Service Quality (Berry et al, 1985) are: Courtesy and Comprehensiveness Reliability and Reputation Specification and Security Uniqueness and Universality Reliability and Responsiveness
Chapter 18: Operations improvement

1 .
The many types of benchmarking do not include: Purchaser-pays benchmarking Competitive benchmarking Performance benchmarking Internal benchmarking
2 .
The principles of the business process re-engineering (BPR) approach do NOT include: Scrapping any process line over two years old and starting again from scratch Striving for improvements in performance by radical rethinking and redesigning the process Checking that all internal customers act as their own suppliers to identify problems Rethinking business processes cross-functionally to organize work around natural information flows
3 .
Qualifying competitive factors are those which: Directly win business for the operation Are relatively unimportant compared with the others Need to be better than a good industry standard
May not win extra business if the operation improves its performance but can certainly lose business if performance falls below a particular point
4 .
An input-output analysis does not include the following step: Identify the source of inputs Clarify the requirements of internal customers served by the process outputs Identify connections between the two sets of data Identify the destination of outputs
5 .
Cause-effect, or fish-bone, diagrams cluster problems into categories. Which of the following is not normally used as a category: Methods Markets Manpower Materials
6 .
Cause and Effect Diagrams are also known as: Taguchi diagrams Fishbone Diagrams Quality Loss Charts Quality Function Deployment Models Target Specification Graphs
Chapter 19: Failure prevention and...

1 .
The bath-tub curve indicates failure probability. Which stage is not normally associated with the Bath-tub curve? Pulling the plug where production is halted due to unacceptable level of failures Iinfant-mortality where failures occur early Wear-out where failure increases due to age.
Normal-life where few failures occur
2 .
Failure mode and effect analysis (FMEA) provides a checklist procedure. Which of the following questions is not likely to feature on the checklist? What would the consequences of the failure be What is the likelihood that failure will occur What would be the cost of avoiding failure be How likely is such a failure to be detected before it affects the customer
3 .
The Japanese-inspired concept of fail-safeing (poka-yoke) seeks to prevent human mistakes. Which of the following are not examples of poka-yoke? Gauges through which parts must pass on a machine Digital counters on machines to ensure all parts are completed Sampling and checking work in a thorough manner Light beams which activate alarms if errors occur
4 .
The reliability of an operation is normally NOT improved by one of the following procedures: Ensuring some activities in the operation 'fail-safe' Laying-off employees who cause faults in the operation Designing out fail points in the operation Building redundancy into the operation
5 .
Total productive maintenance (TPM) has 5 goals. Which of the following is not a goal of TPM? Achieve autonomous maintenance Focus preventative maintenance when failure is most likely to occur Improve equipment effectiveness Train all staff in relevant maintenance
Chapter 20: Total quality management

1.
The concept of total quality control, i.e. that quality must be attended to at all stages of the industrial cycle and throughout the organization, is the creation of which of the following pioneers? W Edwards Deming Genichi Taguchi Joseph M Juran Armand Feigenbaum
2.
The so-called 'Quality Gurus' of total quality management (TQM) do NOT include one of the following: Bill Cosby Joseph M Juran W Edwards Deming Kaoru Ishikawa
3.
The specific concerns of total quality management (TQM) include a number of aspects. Which is not normally associated with TQM? Meeting the needs and expectations of customers Inclusion of every person in the organization Primarily a worker rather than a management activity Covering all parts of the organization
4.
The preferred method for achieving total quality in process output is: Build and install an error-proof process and maintain it Rely on operator self-inspection and self-correction Perform inspection at the next process Rely on a team of highly trained and dedicated inspectors
5.
Total quality management (TQM) programmes are more likely to remain effective if a number of prescriptions are followed. Which of the following prescriptions should not be followed? Slogans and exhortations about TQM's effectiveness are avoided Quality improvement relates to operation's performance objectives TQM does not become a separate 'bolt-on' set of activities
TQM should become a substitute for normal managerial leadership
6.
Which of the following would not normally be considered as a costs of quality? Internal failure costs Inspection costs Research and development costs Warranty costs Prevention costs Marketing costs
7.
Which one of the following would normally be considered as one of the costs of quality? Internal failure costs Marketing costs Distribution costs Research and development costs Stockholding costs
8.
Which one of the following would normally be considered as one of the costs of quality? Marketing costs Overhead costs Transaction costs Appraisal costs Transport costs
9.
Which one of the following would normally be considered as one of the costs of quality? The Economic Order Quantity Performance related pay Purchase order discounts Appraisal costs
Relocation costs
10 .
Which of the following would most commentators not regard as a quality guru? Arnaud Feigenbaum Charles Handy Genichi Taguchi W.E. Deming FW Taylor Philip Crosby Joseph Juran
11 .
Which of the following would most commentators regard as one of the quality gurus? Joseph Juran Henri Gantt Terry Hill Charles Handy Joe Pine
Chapter 21: The operations challenge

1 .
Formally reporting their environmental performance is good for companies for a number of reasons. Which of the following is not a good reason for environmental reporting? It makes the company more attractive to customers and investors It gives them some really good publicity It reduces the chances of damaging the environment and helps to build process knowledge It can attract talented staff
2 .
Tacit knowledge is knowledge that: Can be codified Can be explained verbally Includes skill, intuition and experience Can be written down
3 .
Making tacit knowledge explicit can be done by: Refining knowledge through using it Learning from experience Formally combining the results of analysis Articulating experience into rules
4 .
In knowledge management terms, information is: Interpreted through a process using values Data which has been analysed in terms of its context Objective facts independent of any context Interpreted through a process using judgement
5 .
Which country has the largest ecological footprint? China India USA Netherlands

Operations Management Chapter 1 MCQs

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Operations Management Chapter 1 MCQs

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Chapter 1: Operations management

Chapter 2: The strategic role and...

Quality Speed Dependability Flexibility

Chapter 3: Operations strategy

The operations strategy matrix The Operations resources perspective

Chapter 4: Process design

Multiple choice questions

Package holidays Education Computers Electricity utility

Short process times The ability to handle high volumes

Equipment / operations / inspection / storage / insertion

Multiple choice questions

The main purpose of Taguchi methods is to: Create a house of quality

Chapter 6: Supply network design (+...

Multiple choice questions

Chapter 7: Layout and flow

Multiple choice questions

A supermarket is usually positioned as: Product layout Process layout

Fixed-position layout Cell layout

18.50 17.25 20.50

Multiple choice questions

Chapter 9: Job design and work...

Multiple choice questions

Empowerment Job enrichment Job enlargement

1.93 minutes 1.06 minutes 2.59 minutes 3.21 minutes

Chapter 10: The nature of planning and...

Multiple choice questions

Work done relative to customer order delivery dates

Chapter 11: Capacity planning and...

Multiple choice questions

Which of the following is not a measure of utilisation?

105% 85% 75% 95% 90%

Multiple choice questions

The real costs of stock in operations

One of the underlying assumptions of the EOQ model is that :

Chapter 13: Supply chain planning and...

Multiple choice questions

Sources can be switched in case of supplier failure?

The Procurement Positioning Model is used to classify purchases in terms of

Chapter 14: Enterprise resource...

Multiple choice questions

Closed Loop MRP means:

Sales order priorities / Bills of Materials / Material Requirement Plans

Multiple choice questions

Just-in-time (JIT) does not require:

Multiple choice questions

What is the critical path through the following network?

ABDEF ABGHIF & ABDEF ABGHIF ABCF ABCEF

What is the critical path through the following network?

ABGHIF ABCEF ABCF ABGHIF & ABDEF ABDEF

Unorthodox, discerning, single-minded Extroverted, enthusiastic and communicative

Multiple choice questions

The various definitions of quality do NOT include: The value-based approach

Measuring the amount of re-work required to rectify faulty goods

Chapter 18: Operations improvement

Multiple choice questions

Multiple choice questions

Normal-life where few failures occur

Chapter 20: Total quality management

Multiple choice questions

TQM should become a substitute for normal managerial leadership

Chapter 21: The operations challenge

Multiple choice questions

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