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Operations Management Questions and Answers

Question 1

Paul is conducting a Quality Assessment on the products created at a fabric factory. Among other factors, he believes quality is concerned with conformance and aesthetics. Is Paul correct?

Options:

A.

Yes- other criteria include performance and reliability

B.

Yes- other criteria include cost and speed

C.

No- quality criteria includes performance and reliability

D.

No- quality is not concerned with aesthetics

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Question 2

A company should aim to achieve all its performance objectives at the same time to ensure success. Is this TRUE?

Options:

A.

yes- a company should focus on all criteria at each stage of the product lifecycle

B.

yes- focusing on all objectives simultaneously is the only way to achieve a higher profit and market share

C.

no- companies should set performance criteria each month and this may change depending on market conditions

D.

no- companies should select which objectives should take precedent over others depending on the focus of the organisation at that time

Question 3

The Public Sector only provides Services not Goods. Is this TRUE?

Options:

A.

yes- the public sector provides services such as education and health care

B.

yes- the private sector is responsible for the production of goods, whereas services can be provided either by the public or private sector

C.

no- the public sector may provide goods as well as services

D.

no- the public sector provides goods rather than services

Question 4

What is the name given to a person in an organisation who is competent in the Six-Sigma approach?

Options:

A.

Quality Circle Leader

B.

Black Belt

C.

Master

D.

Project Owner

Question 5

There are four manufacturing companies located on Seashell Industrial Estate. Each company creates a different product and employs a different maintenance approach to its operations. For each company, select the corresponding maintenance approach and the key operating process characteristic.

Company 1: This company creates craft beer and offers customers a tour of the brewery for a small charge. The brewing equipment is serviced monthly and the brewery is kept extremely clean. All equipment is labelled with the last service date.

Company 2: This company produces seasonal items such as Easter Eggs and Christmas Cake. The equipment has a control panel where lights will flash red advising staff to check oil levels and components. Staff can then report issues to the maintenance team if remedial work is required. Product demand fluctuates throughout the year.

Company 3: This equipment does not often break down and is only fixed when it is reported by staff as no longer working. Company 3 creates toys, providing a large range of product sizes and colours based on different customer requirements.

Company 4: Parts of the machine are serviced quarterly but in general, the machine is left to run its course and is then replaced when it is no longer financially viable to fix. The company produces cereal and the operating process is focused on the quantity produced and therefore uses standardised processes.

Complete the table below by listing the maintenance approach and operating process characteristic for each company. Each response should only be used once: preventive maintenance, run to breakdown maintenance, condition-based maintenance, mixed maintenance, volume, visibility, variation, variety

Company

Maintenance approach

Operating-process characteristic

Company 1

Box 1

Box 5

Company 2

Box 2

Box 6

Company 3

Box 3

Box 7

Company 4

Box 4

Box 8

Which of the following will you put into box 8?

Options:

A.

volume

B.

visibility

C.

variation

D.

variety

Question 6

The goal of Operations Management is to create processes which ensure the three Es: Efficiency, Effectiveness and Efficacy. What is meant be Efficacy?

Options:

A.

the process meets the intended purpose

B.

the process is optimised

C.

the process produces as little waste as possible

D.

the process is cost-effective

Question 7

Which of the following are performance objectives which can be applied to the Operations department at any organisation? Select THREE

Options:

A.

cost reduction

B.

dependability

C.

quality

D.

flexibility

E.

innovation

Question 8

There are four manufacturing companies located on Seashell Industrial Estate. Each company creates a different product and employs a different maintenance approach to its operations. For each company, select the corresponding maintenance approach and the key operating process characteristic.

Company 1: This company creates craft beer and offers customers a tour of the brewery for a small charge. The brewing equipment is serviced monthly and the brewery is kept extremely clean. All equipment is labelled with the last service date.

Company 2: This company produces seasonal items such as Easter Eggs and Christmas Cake. The equipment has a control panel where lights will flash red advising staff to check oil levels and components. Staff can then report issues to the maintenance team if remedial work is required. Product demand fluctuates throughout the year.

Company 3: This equipment does not often break down and is only fixed when it is reported by staff as no longer working. Company 3 creates toys, providing a large range of product sizes and colours based on different customer requirements.

Company 4: Parts of the machine are serviced quarterly but in general, the machine is left to run its course and is then replaced when it is no longer financially viable to fix. The company produces cereal and the operating process is focused on the quantity produced and therefore uses standardised processes.

Complete the table below by listing the maintenance approach and operating process characteristic for each company. Each response should only be used once: preventive maintenance, run to breakdown maintenance, condition-based maintenance, mixed maintenance, volume, visibility, variation, variety

Company

Maintenance approach

Operating-process characteristic

Company 1

Box 1

Box 5

Company 2

Box 2

Box 6

Company 3

Box 3

Box 7

Company 4

Box 4

Box 8

Which of the following will you put into box 4?

Options:

A.

preventive maintenance

B.

run-to-breakdown maintenance

C.

condition-based maintenance

D.

mixed maintenance

Question 9

In which stage of development does the operations department contribute competitive advantage to an organisation?

Options:

A.

internally neutral

B.

externally neutral

C.

internally supportive

D.

externally supportive

Question 10

Barry is a Hotel Manager and is keen to understand where his business is failing. He has asked his staff to conduct a number of different techniques to uncover failures within the service. Of those listed below, which of the following would provide Barry with answers the quickest? Select TWO

Options:

A.

phone surveys

B.

point-of-departure interviews

C.

in-process checks

D.

machine diagnostic checks

Question 11

Little Joy Ltd is a large company with several functional departments. Below are details of four departments. For each, you must decide which functional area of the business the department is, as well as the SERVQUAL Gap that each Department Lead is concerned with.

Department 1: This department is concerned with the creation of products. The products are created in line with BS EN 716-1 and undergo rigorous tests before they leave the factory. Many customers are unaware of the additional costs of testing to BS EN 716-1 and complain about the price of this product line.

Department 2: Other departments of the business are internal customers of this functional area and approach the Department Lead when they require something to be bought. Often the internal customers have unrealistic expectations of the timescales involved in the process and the Department Lead spends a lot of time explaining lead times and logistics.

Department 3: This functional area creates the budgets for the company and emails these to the Department Leads at the beginning of every quarter. Due to the complexity of the documents, other functional areas of the business often don’t understand the information provided.

Department 4: This area of the business is concerned with revenue, which has recently slumped. The Department Lead is conducting market surveys to find out the reason for this.

Complete the table below by listing the Functional Area of the business, and the corresponding SERVQUAL Gap. Each response should only be used once: procurement, finance, sales, production, satisfaction gap, delivery gap, standards gap, communication gap.

Department

Functional area

SERVQUAL gap

Department 1

Box 1

Box 5

Department 2

Box 2

Box 6

Department 3

Box 3

Box 7

Department 4

Box 4

Box 8

Which of the following will you put into box 7?

Options:

A.

satisfaction gap

B.

delivery gap

C.

standards gap

D.

communication gap

Question 12

Logan has recently been appointed to the position of Operations Manager within in IT firm. The CEO has charged Logan with improving the performance of the department, in particular, in ensuring that promises made to customers are kept. Logan is therefore prioritising KPIs for the team including the delivering of services on-time and customer retention. Which of the 5 Performance Objectives of Operations Management is Logan focusing on?

Options:

A.

dependability

B.

flexibility

C.

quality

D.

speed

Question 13

Companies that have high-visibility processes require higher levels of customer management skills than companies with low-visibility processes. Is this TRUE?

Options:

A.

yes- high visibility companies often have higher operating costs because of this

B.

yes- high visibility companies often have lower operating costs because of this

C.

no- all companies require customer management skills

D.

no- low visibility companies must focus on increasing levels of customer service

Question 14

Below are details of 4 local manufacturing companies. For each company you must decide what the main objective is for the organisation and what layout their manufacturing plant has.

Company 1: This company creates large, delicate products which are hard to move. The main aim of the company is to stand out from competitors due to the superior level of materials used and by using the latest forms of technology to create the items.

Company 2: This company produces 72 different items and has designated zones within its premises for the creation of each item. The zones are organised based on the technology used and some products may be passed between different zones to be completed. The company creates many different items in response to changing customer demands, with many product lines only lasting a single season.

Company 3: Company 3 creates one product which flows along a single production line, with staff members adding to the product on four different occasions. The company must produce a high volume of this singular product in order to break even. Therefore, there is always a steady flow of items through the plant and it is important there is no stoppage in production.

Company 4: This company produces small batches of products, as and when they are ordered by customers. Due to uncertainty in demand, a high profit margin is added to the cost of each item. Teams in the factory are grouped into different areas depending on the technological process they are using.

Complete the table below by listing the objective criteria and plant layout for each company. Each response should only be used once: flexibility, speed, quality, cost, functional layout, cell layout, product layout, fixed-position layout

Company

Performance objective

Plant layout

Company 1

Box 1

Box 5

Company 2

Box 2

Box 6

Company 3

Box 3

Box 7

Company 4

Box 4

Box 8

Which of the following will you put into box 3?

Options:

A.

flexibility

B.

speed

C.

quality

D.

cost

Question 15

In an organisation that uses Quality Control to determine whether manufactured products conform to customer requirements, which of the following activities would most directly demonstrate product-level inspection?

Options:

A.

Employees systematically checking products for defects

B.

Establishing a quality steering committee

C.

Conducting regular customer-feedback exercises

D.

Undertaking preventive equipment maintenance

Question 16

Which of the following items created by an organisation are intangible? Select TWO

Options:

A.

Legal Advice provided by a solicitor

B.

A cup of coffee from a restaurant

C.

A massage given at a Spa

D.

A shirt bought at a retail outlet

Question 17

The Balanced Scorecard is a performance management approach which looks at measuring four areas of a business. Of those listed below, which is not an area traditionally measured within the Scorecard?

Options:

A.

business processes

B.

customer

C.

finance

D.

environment

Question 18

Below are details of 4 local manufacturing companies. For each company you must decide what the main objective is for the organisation and what layout their manufacturing plant has.

Company 1: This company creates large, delicate products which are hard to move. The main aim of the company is to stand out from competitors due to the superior level of materials used and by using the latest forms of technology to create the items.

Company 2: This company produces 72 different items and has designated zones within its premises for the creation of each item. The zones are organised based on the technology used and some products may be passed between different zones to be completed. The company creates many different items in response to changing customer demands, with many product lines only lasting a single season.

Company 3: Company 3 creates one product which flows along a single production line, with staff members adding to the product on four different occasions. The company must produce a high volume of this singular product in order to break even. Therefore, there is always a steady flow of items through the plant and it is important there is no stoppage in production.

Company 4: This company produces small batches of products, as and when they are ordered by customers. Due to uncertainty in demand, a high profit margin is added to the cost of each item. Teams in the factory are grouped into different areas depending on the technological process they are using.

Complete the table below by listing the objective criteria and plant layout for each company. Each response should only be used once: flexibility, speed, quality, cost, functional layout, cell layout, product layout, fixed-position layout

Company

Performance objective

Plant layout

Company 1

Box 1

Box 5

Company 2

Box 2

Box 6

Company 3

Box 3

Box 7

Company 4

Box 4

Box 8

Which of the following will you put into box 5?

Options:

A.

functional layout

B.

cell layout

C.

product layout

D.

fixed-position layout

Question 19

Dillan is an Operations Manager at Fancy Foods Ltd which is looking to expand the business into a new geographic area. Dillan is doing some research into three potential locations for a new manufacturing and warehouse facility. Which of the following would be primary considerations for Dillan? Select TWO

Options:

A.

the availability of labour

B.

potential business growth in the area

C.

flow of traffic in the surrounding area

D.

room for expansion

E.

utilities services available

Question 20

Shireen is an Operations Manager at a cake factory. She has been asked by her manager to create a list of the transforming resources used within the factory. Which of the following would appear on her list? Select TWO

Options:

A.

raw materials such as flour and sugar

B.

employees who work on the production line

C.

facilities such as mixing equipment and ovens

D.

Information such as recipes

Question 21

Which of the following situations would use a fixed-position layout?

Options:

A.

vehicle assembly

B.

ship construction

C.

supermarket

D.

buffet style restaurant

Question 22

An order-qualifying objective contributes to business success because it guarantees a customer will purchase a product. Is this TRUE?

Options:

A.

Yes, order-qualifying objectives always guarantee a sale.

B.

Yes, order-qualifying objectives mean the product is superior to alternatives.

C.

No, an order qualifier establishes a minimum requirement for consideration but does not guarantee purchase.

D.

No, order qualifying refers to accepting or rejecting customer orders.

Question 23

Little Joy Ltd is a large company with several functional departments. Below are details of four departments. For each, you must decide which functional area of the business the department is, as well as the SERVQUAL Gap that each Department Lead is concerned with.

Department 1: This department is concerned with the creation of products. The products are created in line with BS EN 716-1 and undergo rigorous tests before they leave the factory. Many customers are unaware of the additional costs of testing to BS EN 716-1 and complain about the price of this product line.

Department 2: Other departments of the business are internal customers of this functional area and approach the Department Lead when they require something to be bought. Often the internal customers have unrealistic expectations of the timescales involved in the process and the Department Lead spends a lot of time explaining lead times and logistics.

Department 3: This functional area creates the budgets for the company and emails these to the Department Leads at the beginning of every quarter. Due to the complexity of the documents, other functional areas of the business often don’t understand the information provided.

Department 4: This area of the business is concerned with revenue, which has recently slumped. The Department Lead is conducting market surveys to find out the reason for this.

Complete the table below by listing the Functional Area of the business, and the corresponding SERVQUAL Gap. Each response should only be used once: procurement, finance, sales, production, satisfaction gap, delivery gap, standards gap, communication gap.

Department

Functional area

SERVQUAL gap

Department 1

Box 1

Box 5

Department 2

Box 2

Box 6

Department 3

Box 3

Box 7

Department 4

Box 4

Box 8

Which of the following will you put into box 8?

Options:

A.

satisfaction gap

B.

delivery gap

C.

standards gap

D.

communication gap

Question 24

In what circumstances would an organisation use a Fishbone diagram?

Options:

A.

to depict changes in quality

B.

to find the cause of an issue

C.

to visually represent links between activities

D.

to demonstrate a pattern has occurred

Question 25

Below are details of 4 local manufacturing companies. For each company you must decide what the main objective is for the organisation and what layout their manufacturing plant has.

Company 1: This company creates large, delicate products which are hard to move. The main aim of the company is to stand out from competitors due to the superior level of materials used and by using the latest forms of technology to create the items.

Company 2: This company produces 72 different items and has designated zones within its premises for the creation of each item. The zones are organised based on the technology used and some products may be passed between different zones to be completed. The company creates many different items in response to changing customer demands, with many product lines only lasting a single season.

Company 3: Company 3 creates one product which flows along a single production line, with staff members adding to the product on four different occasions. The company must produce a high volume of this singular product in order to break even. Therefore, there is always a steady flow of items through the plant and it is important there is no stoppage in production.

Company 4: This company produces small batches of products, as and when they are ordered by customers. Due to uncertainty in demand, a high profit margin is added to the cost of each item. Teams in the factory are grouped into different areas depending on the technological process they are using.

Complete the table below by listing the objective criteria and plant layout for each company. Each response should only be used once: flexibility, speed, quality, cost, functional layout, cell layout, product layout, fixed-position layout

Company

Performance objective

Plant layout

Company 1

Box 1

Box 5

Company 2

Box 2

Box 6

Company 3

Box 3

Box 7

Company 4

Box 4

Box 8

Which of the following will you put into box 2?

Options:

A.

flexibility

B.

speed

C.

quality

D.

cost

Question 26

A manufacturing company makes taps which they advertise with a guarantee of durability for 10 years. At which point in time would you expect most defects to be found?

Options:

A.

Within the first year

B.

between 1-2 years

C.

between 2-5 years

D.

between 5-6 years

Question 27

Penny is the Operations Manager at a small furniture manufacturing company that makes tables and chairs, among other wooden household items. In the manufacturing site there is a small warehouse which stores inventory which is used in unforeseen circumstances such as a late delivery. What is the name given to this type of inventory?

Options:

A.

anticipation inventory

B.

buffer stock

C.

work-in progress

D.

transit inventory

Question 28

JJ Ltd is a sporting goods manufacturer who is based in the UK. It is considering expanding its operations to include manufacturing sites based in South America. Which of the following considerations will JJ Ltd need to consider now that they are becoming an international organisation? Select TWO

Options:

A.

keeping costs down

B.

cultural aspects

C.

quality standards

D.

product design

Question 29

Blue Slipper Ltd is a multi-national organisation that produces a variety of cosmetic products. A team has been put together to create a strategy for the Marketing Department in order to increase sales and thus profitability. What level of strategy is being created?

Options:

A.

corporate level strategy

B.

business level strategy

C.

functional level strategy

D.

operational level strategy

Question 30

Many companies choose locations for manufacturing facilities in low-cost countries. What is the benefit for a company of doing this?

Options:

A.

close to customers, low cost land, readily available labour

B.

low cost land and facilities, access to government incentives

C.

high environmental and ethical standards, low cost land

D.

far from customers, availability of raw materials

Question 31

Isobel is an Operations Manager at a plastics company and is conducting a Failure Mode and Effects Analysis (FMEA) on some products that the company manufactures. Which of the following areas would malfunctions be detected in when conducting a FMEA? Select TWO

Options:

A.

design

B.

delivery

C.

operations

D.

process

Question 32

Elderberry Ltd is an established organisation in the agricultural industry but has recently expanded into manufacturing its own juice range. The company is at the 'Introduction' stage of the product lifecycle and is attempting to bring new products to market. Which of the following performance objectives would be the most dominant at this stage of the lifecycle?

Options:

A.

cost

B.

flexibility

C.

speed

D.

dependability

Question 33

Which of the following is a computer-based programme which determines the amounts of inputs required into a process?

Options:

A.

Just in Time

B.

MRP

C.

Kaizen

D.

Work Scheduling

Question 34

What is the purpose of a quality circle?

Options:

A.

to increase turnover

B.

to mitigate risks to the organisation

C.

to reduce the number of defects

D.

to resolve problems in the workplace

Question 35

Which of the following would most directly demonstrate the success of an organisation's order-winning objectives in a retail environment?

Options:

A.

increased costs

B.

streamlined operations procedures

C.

improved supplier relations

D.

customer loyalty

Question 36

Below are details of five companies who operate a Total Quality Management System (TQM). For each company, select the system used and identify which area of the Balanced Scorecard this relates to.

Company 1: The focus of this company is to gather real-time data to assess the quality of products created during the manufacturing process. There are tight budgets and reworking any defects will affect the bottom line.

Company 2: This company is concerned about how their products are received. They have recently completed market research focused on their client’s feelings. The objective is now to improve the product’s look and performance to meet these expectations.

Company 3: The focus of this company is defining the customer requirements and translating this into a high-quality specification and effective operational process.

Company 4: Within this company there is a group of 6 employees who meet regularly with the objective of reducing issues that arise in the manufacturing of products.

Complete the table below by listing the TQM System used and the relevant Balanced Scorecard criteria for each company. Each response should only be used once: Quality Circle, Statistical Process Control, Kansei Engineering, Quality Function Deployment, Finance Criteria, Business Process Criteria, Learning and Growth Criteria, Customer Criteria.

Company

TQM technique

Balanced Scorecard perspective

Company 1

Box 1

Box 5

Company 2

Box 2

Box 6

Company 3

Box 3

Box 7

Company 4

Box 4

Box 8

Which of the following will you put into box 8?

Options:

A.

finance criteria

B.

business process criteria

C.

learning and growth criteria

D.

customer criteria

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Total 120 questions