Exam: Operations Management Name Total Scors: ID Class MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Planning is the process of coping with changes in supply and demand. 1) 2) There is always sufficient capacity to meet demand, therefore revenue is maximised and customers are satisfied. A) Capacity-leading strategy B) Capacity-lagging strategy 2) 3) What term is commonly used to indicate that the management of the logistics chain is outsourced to a specialist logistics company? A) Logistics outsourcing B) Distribution outsourcing C) Outsource distribution D) Third-party logistics 3) 4) In this question focusing on the structural and infra-structural decision areas you need to match the question with the correct strategy. Question: What balance of capabilities should it develop along its network of operations? A) Technology strategy B) Failure prevention and recovery strategy C) Supplier development strategy D) Capacity adjustment strategy E) Inventory strategy F) New product/service development strategy G) Workforce and organisation strategy H) Facilities strategy J) Vertical integration strategy K) Planning and control systems strategy L) Improvement strategy 4) 5) Reliability is the consistency of the productʹs or serviceʹs performance over time. 5) 6) 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 often linked to external extranet systems. A) Feature of ERP B) Not a feature of ERP 6) 7) Which of the following is NOT a transformed resource input in operations? A) Materials B) Customers C) Facilities D) Information 7) 8) 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? A) Speed B) Cost C) Flexibility D) Quality 8) 1
9) A ʹprocessʹ is one aspect of a product or service. It describes the package of components that provide benefits defined in the concept. 9) 10) The term used to describe the flexibility to deal with demand volatility in a supply chain is responsiveness. 10) 11) An operationʹs ability to produce a wide range of products or services is called what? A) Customization profile B) Package C) Commodity range D) Mix flexibility 11) 12) Lean generally has a lower capacity utilisation than a traditional approach to operations. 12) 13) Which stakeholder group is likely to best match this broad strategic objective: Increase employment, produce sustainable products and ensure clean environment. A) Employees B) Customers C) Suppliers D) Shareholders E) Society 13) 14) Operations typically differ in terms of volume of output, variety of output, variation in demand or the degree of ʹvisibilityʹ (i.e. customer contact) that they give to customers of the production process. Please match the following element with the most appropriate of the above dimensions. The demand pattern is most closely matched to: A) Visibility B) Volume C) Variety D) Variation 14) 15) Which of the following operations is more likely to be a pull rather than push operation? A) A brewery B) A farmer C) A company that builds computers to order D) A food manufacturer 15) 16) The assumption of steady demand is true for a wide range of operations inventory problems. 16) 17) With a ʹlevel capacityʹ plan, which one of these statements is correct? A) Throughput rates respond to changes in demand. B) Staff turnover is likely to be low. C) Outputs are stored until required. D) Processes are buffered through inventory. E) Processing capacity will vary according to demand. 17) 18) The location decision is determined by the relative strength of supply-side and demand-side factors. Are Community factors supply-side or demand-side. A) Supply-side factor B) Demand-side factor 18) 2
19) The cost associated with warehousing is known as: A) Storage costs B) Cost of placing an order C) Working capital costs D) Stock out costs E) Obsolescence costs F) Price discount costs G) Production inefficiency costs 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 low price then the operation will need to excel at: A) Flexibility (volume and/or delivery) B) Speed C) Quality D) Flexibility (products/service) E) Dependability F) Cost G) Flexibility (mix) 20) 21) 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 prevents hold-ups in major projects. D) It provides insurance against unexpected demand. 21) 22) In lean it is usual to use one specialist large machine rather than several small machines. 22) 23) Match the performance objectives with one of the influences of good process design: Can provide the appropriate resources, which are capable of producing to the design specification. A) Flexibility B) Cost C) Quality D) Dependability E) Speed 23) 24) An advantage of a capacity-lagging strategy is that: A) There is always sufficient capacity to meet demand B) There is no ability to exploit short-term increases in demand C) Utilisation of the plants is always relatively low D) Over-capacity problems are minimised if forecasts are optimistic 24) 25) Step 2 of quality planning and control involves: A) Defining quality characteristics B) Controlling quality against set standards of quality C) Finding and correcting poor quality D) Deciding how to measure each quality characteristic 25) 3
26) Scrap level is a typical partial measure of which performance objective? A) Cost B) Dependability C) Quality D) Speed 26) 27) The traditional approach sees inventory as a ʹblanket of obscurityʹ that lies over the production system, preventing problems being noticed. 27) 28) All operations aim to be completely flexible in responding to customer demand. 28) 29) Lean does not require: A) Dependable supply parts and reliable equipment B) Focus on high capacity utilisation C) Customer demands met from production, not inventory D) disruption in production due to quality errors 29) 30) 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 allows decisions and databases from all parts of the organisation to be integrated. A) Feature of ERP B) Not a feature of ERP 30) 31) Strategic decisions are those which: A) Define the position of a business unit with respect to its operational capabilities B) Seek to move the whole organisation towards its overall long-term goals C) Require the input of external consultants and management accountants. D) Only involve senior managers 31) 32) Which of the following is NOT a response from operations to the changing business environment? A) Technologies replacing manual jobs B) Flexible working patterns C) Mass marketing D) Lean process design 32) 33) In process mapping derived from ʹscientific managementʹ, what does the following symbol represent? 33) A) Operation B) Transport C) Direction of flow D) Delay E) Storage F) Decision G) Inspection 4
34) Average batch size is a measure of: A) Quality B) Speed C) Dependability D) Flexibility E) Cost 34) 35) Which of the following is not a characteristic of a line process? A) Processes are linear and often continuous but can be stopped. B) Operations and equipment are dedicated to the product. C) Products or services are standard and are produced in a large volume. D) The product or service will be made to a specific customer order. E) Work is not fixed but moves through a sequence of operations. 35) 36) Dependability means different things to different operations. Please match the most appropriate organisation to this standard: Test results returned on schedule. A) Bus company B) Hospital C) Supermarket D) Automobile Plant 36) 37) If the activity is considered to be of strategic importance. A) Explore keeping this activity in-house B) Explore outsourcing this activity 37) 38) Adjustments that enable operations to flex output over a short timescale are called: A) Mixed capacity planning B) Short-term capacity adjustments C) Minor adjustment techniques D) Flexibility capacity strategies 38) 39) An operation that relies on repeat business will seek to primarily focus on which of the performance objectives? A) Dependability B) Quality C) Speed D) Flexibility 39) 40) Service shops are characterised as which of the following? A) High-contact organisations where customers spend a considerable time in the service process. B) Product orientated with little customisation. C) Many customer transactions, involving limited contact time. D) Some customer contact, a degree of customisation and some staff discretion. 40) 41) Operations typically differ in terms of volume of output, variety of output, variation in demand or the degree of ʹvisibilityʹ (i.e. customer contact) that they give to customers of the production process. Please match the following element with the most appropriate of the above dimensions. Flexibility is most closely matched to: A) Variation B) Variety C) Visibility D) Volume 41) 42) Internal failure costs are costs associated with errors that are dealt with inside the operation. 42) 5
43) The well-accepted term for managing the activity of supplying immediate customers is: A) Materials management B) Logistics C) Physical distribution management D) Key account management 43) 44) Which of the following is least likely to be an issue for employee stakeholders? A) Fair pay B) Economic value from investment C) Good working conditions D) All of the above 44) 45) Within JIT, process owners are encouraged to assume ownership of their machines and undertake routine maintenance. This is called: A) Preventative repairs B) Total productive maintenance C) Maintenance service D) Routine checking 45) 46) 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 high quality then the operation will need to excel at: A) Dependability B) Flexibility (volume and/or delivery) C) Speed D) Flexibility (products/service) E) Flexibility (mix) F) Quality G) Cost 46) 47) Time to change schedules is a measure of: A) Quality B) Speed C) Dependability D) Flexibility E) Cost 47) 48) The process of shortening pipeline time is called: A) Supply minimisation B) Supply chain time compression C) Pipeline reduction D) Time reduction 48) 49) Slack defines the Five Performance Objectives for Operations as: A) Quality / speed / dependability / accessibility / cost B) Transformation / quality / speed / dependability / flexibility C) Cost / throughput / flexibility / cost / speed D) Quality / speed / dependability / flexibility / cost E) Improvement / quality / flexibility / reliability / cost 49) 50) Match the following statement to the layout type: Highest variable costs but very flexible. A) Fixed-position layout B) Functional layout C) Line layout D) Cell layout 50) 6
Answer Key Testname: UNTITLED2 1) B 2) A 3) D 4) J 5) A 6) A 7) C 8) C 9) B 10) B 11) D 12) A 13) E 14) D 15) C 16) B 17) C 18) A 19) A 20) D 21) B 22) B 23) C 24) D 25) D 26) C 27) B 28) B 29) B 30) A 31) B 32) C 33) C 34) D 35) D 36) B 37) A 38) B 39) A 40) D 41) B 42) A 43) C 44) B 45) B 46) F 47) D 48) B 7
Answer Key Testname: UNTITLED2 49) D 50) A 8