ID Class MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.

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1 Exam: Operations Management Name Total Scors: ID Class MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Aggregated demand forecasts are a key element of short-term planning and control. 1) 2) Which of the following is NOT a criticism levelled at Business Process Re-engineering? A) It is merely an excuse for getting rid of employees. B) It fails to look at the people who perform activities. C) It can lead to the loss of an essential core of experience. D) It only focuses on incremental improvement. 2) 3) Most of the demand for tyre store in a car plant is dependent demand. 3) 4) Which of the following is least likely to be an issue for employee stakeholders? A) Good working conditions B) Fair pay C) Economic value from investment D) All of the above 4) 5) Typically, the volume and value of purchases of materials and services are decreasing as organisations bring more operations in-house. 5) 6) A process with high variety and low volume is likely to have a: A) Functional layout B) Fixed-position layout C) Cell layout D) Line layout 6) 7) Enterprise Resource Planning (ERP) is one of the most significant developments of the basic MRP philosophy. Determine whether this statement is a feature of ERP: It is cheap and easy to install. A) Feature of ERP B) Not a feature of ERP 7) 8) The larger the level of material costs as a proportion of total costs, the greater effect on profitability of a reduction in material costs. 8) 9) The TQM approach suggests that each individual has an impact on quality. 9) 10) Match the following statement to the layout type: Best for high volume, low variety outputs. A) Line layout B) Cell layout C) Fixed-position layout D) Functional layout 10) 1

2 11) Within JIT, process owners are encouraged to assume ownership of their machines and undertake routine maintenance. This is called: A) Routine checking B) Total productive maintenance C) Maintenance service D) Preventative repairs 11) 12) Which of the following is NOT seen as an advantage of inventory? A) It smoothes supply and demand. B) It reduces working capital. C) It provides insurance against unexpected demand. D) It prevents hold-ups in major projects. 12) 13) Average batch size is a measure of: A) Quality B) Speed C) Dependability D) Flexibility E) Cost 13) 14) Objectives set in largely financial terms is an example of long-term, medium-term or short-term planning and control? A) Long-term planning and control B) Medium-term planning and control C) Short-term planning and control 14) 15) In this question focusing on the structural and infra-structural decision areas you need to match the question with the correct strategy. Question: What system should the operation use to plan its activities? A) Vertical integration strategy B) Planning and control systems strategy C) New product/service development strategy D) Capacity adjustment strategy E) Supplier development strategy F) Improvement strategy G) Inventory strategy H) Technology strategy J) Facilities strategy K) Workforce and organisation strategy L) Failure prevention and recovery strategy 15) 16) The cost of being prevented from seeing the full extent of the problems within an operation is known as: A) Stock out costs B) Obsolescence costs C) Cost of placing an order D) Price discount costs E) Storage costs F) Working capital costs G) Production inefficiency costs 16) 2

3 17) Resources within an operation that are not immediately evident, such as relationships with suppliers, are called: A) Intangible resources B) Non-discreet resources C) Transient resources D) Ethereal resources 17) 18) Which of the following is an indirect benefit of improved quality? A) Reduced cost of inspection B) Improved image C) Reduced scrap D) Reduced inventory 18) 19) For a supermarket, which of the following does NOT relate to the quality objective? A) Staff are friendly and helpful. B) Shelves are never empty of stock. C) Store is clean and tidy. D) All of the above relate to the quality objective. 19) 20) In this question you need to match the competitive factor that customers value with the performance objective that the operation needs to excel at. If the customers value a wide range of products and services then the operation will need to excel at: A) Flexibility (volume and/or delivery) B) Flexibility (mix) C) Flexibility (products/service) D) Quality E) Dependability F) Speed G) Cost 20) 21) Which of the following is an element of the lean supply chain approach? A) Breakthrough improvement of supplier performance. B) Transparency in terms of costs, quality and delivery schedules. C) Continuous improvement of supplier performance. D) Emphasis on pull planning and control. 21) 22) Match the following statement to the layout type: Used in projects and many jobbing processes. A) Cell layout B) Functional layout C) Line layout D) Fixed-position layout 22) 23) The lean approach aims to reduce which of the following? A) Rework B) Work in progress C) Poor floor layout D) All of the above 23) 24) Doing things in time for customers to receive their goods and services exactly when they are needed, or at least when they are promised, is a measure of: A) Flexibility B) Speed C) Dependability D) Quality 24) 25) Planning and control activities are concerned with providing long-term resources which are capable of satisfying customersʹ demands 25) 3

4 26) Match the following statement to the layout type: Highest variable costs but very flexible. A) Fixed-position layout B) Cell layout C) Line layout D) Functional layout 26) 27) A ʹprocessʹ is one aspect of a product or service. It describes the package of components that provide benefits defined in the concept. 27) 28) Which function is mainly responsible for ensuring that the actual product or service conforms to its internally specified quality level? A) Operations B) Finance C) Human Resources D) Marketing 28) 29) Transferring a design idea into a concept does not include: A) Prototype B) Function C) Purpose D) Form E) Benefits 29) 30) Which of the following basic working practices is NOT held to be the basic preparation for implementing lean? A) Flexibility B) Autonomy C) High pay D) Discipline 30) 31) There are four main kinds of performance standard. Determine which is being described: measure that is set arbitrarily to reflect some level of performance regarded as appropriate is a: A) Historical standard B) Target performance standard C) Competitor performance standard D) Absolute performance standard 31) 32) Capacity is usually expressed in terms of: A) Man-hours available without overtime B) The design life of an operations process C) The Master Production Schedule D) Potential output from an operations system E) A production forecast 32) 33) Which of the following is a result of increasing dependability? A) It save money B) It gives stability C) It saves time D) All of the above 33) 34) Which of the following is a potential disadvantage of fixed-position layout? A) Scheduling of space and activities can be difficult B) Disturbance for customers because they are moved C) Low product flexibility D) Low mix 34) 35) Which of the following is NOT true of the changing business environment in which operations management work? A) Less ethical sensitivity B) More frequent product introduction C) More legal regulation D) Demand for better quality 35) 4

5 36) In managing an inventory system, which of the following is NOT a major type of decision for the operationʹs manager to make? A) How to control the system B) The relationship with the supplier C) When to order D) How much to order 36) 37) In this question you need to match the competitive factor that customers value with the performance objective that the operation needs to excel at. If the customers value the ability to change the timing or quantity of products and services then the operation will need to excel at: A) Speed B) Flexibility (products/service) C) Flexibility (mix) D) Flexibility (volume and/or delivery) E) Dependability F) Quality G) Cost 37) 38) The transforming and transformed resources that form the input to operations are called: A) Input resources B) Transformation resources C) Delivery resources D) Tangible resources 38) 39) The stages of product design do NOT include: A) Prototyping and final design B) The scale C) Screening D) Preliminary design E) Evaluation and improvement 39) 40) Supply chains need to be sufficiently flexible to cope with demand uncertainty and the disruption that often stems from it. The term used to describe this type of responsive flexibility is: A) Robustness B) Agility C) Responsiveness D) Flexibility 40) 41) Quality means different things to different operations. Please match the most appropriate organisation to this standard: The timetable is accurate. A) Supermarket B) Hospital C) Automobile plant D) Bus company 41) 42) TQM puts the customer at the forefront of quality decision making. Customerʹs needs and expectations are always considered first in measuring achieved quality. 42) 43) 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) A bank front office B) A family doctor C) A carpenter D) A fast food restaurant 43) 5

6 44) Which of the following is NOT a measure of utilisation? A) Room occupancy level in hotels B) Load factor for aircraft C) Uptime in a factory D) Number of hours available for production 44) 45) Which stakeholder group is likely to best match this broad strategic objective: Good working conditions and personal development. A) Customers B) Suppliers C) Employees D) Shareholders E) Society 45) 46) Which stakeholder group is likely to best match this broad strategic objective: Consistent quality and flexibility. A) Customers B) Suppliers C) Employees D) Society E) Shareholders 46) 47) Cleaning materials would be a far more important item of inventory for an industrial cleaning company compared with a television plant. 47) 48) Operations managers are indirectly responsible for the design of goods and services. 48) 49) Any one cell layout is only suitable for making one specific product. 49) 50) Which of the following is not an advantage of a long-thin line? A) Lower capital requirements B) Higher mix flexibility C) Controlled flow of materials or customers D) Simple materials handling 50) 6

7 Answer Key Testname: UNTITLED13 1) B 2) D 3) A 4) C 5) B 6) B 7) B 8) A 9) A 10) A 11) B 12) B 13) D 14) A 15) B 16) G 17) A 18) B 19) B 20) B 21) C 22) D 23) D 24) C 25) B 26) A 27) B 28) A 29) A 30) C 31) B 32) D 33) D 34) A 35) A 36) B 37) D 38) A 39) B 40) B 41) D 42) A 43) D 44) D 45) C 46) A 47) A 48) A 7

8 Answer Key Testname: UNTITLED13 49) B 50) B 8