Exam: Operations Management Name Total Scors: ID Class MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Which of the following incorporates the management of inventory and stores? A) Logistics B) Physical distribution management C) Purchasing and supply management D) Materials management 1) 2) Efficient operations management is irreconcilable with environmental considerations. 2) 3) Is the following design activity more suited to low volume/high variety or high volume/low variety: ʹTaskʹ staff skills. A) Low volume/high variety B) High volume/low variety 3) 4) Which type of diagram helps to distinguish between what is important and what is less so for solving problems? A) Cause-effect diagrams B) Input-output diagrams C) Scatter diagrams D) Pareto diagrams 4) 5) For a car, the knowledge and courtesy of sales staff is what quality characteristic? A) Reliability B) Recovery C) Contact D) Durability 5) 6) Specifying the component products and services in the package is normally part of: A) Prototyping and final design B) Evaluation and improvement C) Screening D) Preliminary design E) Concept generation 6) 7) Very high under-utilisation can make level capacity plans prohibitively expensive. 7) 8) The lean approach aims to reduce which of the following? A) Poor floor layout B) Rework C) Work in progress D) All of the above 8) 9) The idea of a fluctuating workforce that matches demand can be regarded as unethical. 9) 10) Operations management is important to all business and operations managers have a similar set of responsibilities in all businesses. 10) 11) Over-capacity problems are minimised if forecasts are optimistic. A) Capacity-leading strategy B) Capacity-lagging strategy 11) 1
12) A design concept is the set of expected benefits that the customer is buying. 12) 13) The approach to loading which does not limit accepting work, but instead tries to cope with it, is called: A) Infinite loading B) Classic loading C) Finite loading D) Determined loading 13) 14) Which of the following is usually considered a characteristic of a line or product layout? A) Transforming resources are costly to maintain. B) This layout tends to be very flexible. C) Transforming resources move to the work. D) This layout can easily handle high volume but low variety. E) This layout can easily handle high variety but low volume. 14) 15) Match the following statement to the layout type: Plant and staff move to the work. A) Fixed-position layout B) Cell layout C) Line layout D) Functional layout 15) 16) Step 2 of quality planning and control involves: A) Controlling quality against set standards of quality B) Finding and correcting poor quality C) Deciding how to measure each quality characteristic D) Defining quality characteristics 16) 17) In a fast food chain, which function is likely to be responsible for serving customers? A) Finance B) Human resources C) Operations D) Marketing and sales 17) 18) The TQM Model looks for ʹoptimumʹ levels of quality effort. 18) 19) The EOQ formula has been criticised in a number of areas. Which of the following is not an area of common criticism? A) The real costs of stock in operations. B) Small errors in estimating will result in a significant deviation. C) The assumptions included in the models. D) The use of the models as prescriptive devices. 19) 20) Which operation least needs staff who are courteous, friendly and helpful? A) Hospital B) Supermarket C) Automobile plant D) Bus company 20) 2
21) What name is given to the model devised by Hayes and Wheelwright that categorizes the degree to which operations has a positive influence on overall strategy? A) Five-stage model of operations contribution B) Two-stage model of operations contribution C) Three-stage model of operations contribution D) Four-stage model of operations contribution 21) 22) Which of the following is true of short-term planning and control? A) Usually partially disaggregated demand forecasts. B) Determines resources and contingencies. C) Objectives are set largely in financial terms. D) Makes interventions to resources to correct deviation from plans. 22) 23) There are four main kinds of performance standard. Determine which is being described: a measure that relates an operationʹs performance to its competitive ability in the marketplace is a: A) Historical standard B) Target performance standard C) Competitor performance standard D) Absolute performance standard 23) 24) There are five main stages in design of products or services. Which is the correct sequence? A) Concept generation, Screening, Preliminary design, Evaluation and improvement, Prototyping and final design. B) Concept generation, Screening, Preliminary design, Prototyping and final design, Evaluation and improvement. C) Preliminary design, Screening, Concept generation, Evaluation and improvement, Prototyping and final design. D) Preliminary design, Screening, Concept generation, Prototyping and final design, Evaluation and improvement. 24) 25) TQM can be seen as an extension of the traditional approach to quality - inspection-based quality control being replaced by the concept of quality assurance which in turn has been superseded by TQM. 25) 26) Which of the following is a potential disadvantage of cell layout? A) Creates bottlenecks B) Limits the number of suppliers available C) Can give lower plant utilisation D) Reduces motivation 26) 27) The people and groups of people who have an interest in the operation and who may be influenced by, or influence, the operationʹs activities, are called: A) Pressure groups B) Operation owners C) Key accounts D) Stakeholders 27) 28) A jobbing printer would typically: A) Make to order B) Make for stock C) Resource for stock D) Resource to order 28) 3
29) Which of these is NOT an example of a ʹfeasibilityʹ criteria? A) Do we have the capability to produce it? B) How much market share could it gain? C) Do we have access to sufficient finance to develop and launch it? D) Is the market likely to be big enough? 29) 30) Ignoring the fluctuations and keeping activity levels constant is known as: A) Level capacity plan B) Chase demand plan C) Demand management 30) 31) What is the evaluation criteria for the following evaluation question: How much will we have to reorganise our activities to produce it? A) Vulnerability B) Acceptability C) Feasibility 31) 32) An operationʹs ability to produce a wide range of products or services is called what? A) Commodity range B) Mix flexibility C) Package D) Customization profile 32) 33) 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) A carpenter B) A fast food restaurant C) A front office bank D) A family doctor 33) 34) One of the great advantages of EDI is that it usually means that greater quantities of goods can be ordered with more confidence that they will meet the needs of the operation. 34) 35) One type of analysis starts by stating the problem and asking why the problem has occurred. These problems are then in turn examined to discover why they occur. What type of analysis is being described? A) Why-How B) Why-Why C) What-Why D) Why-When 35) 36) For a shopping mall, a cleaning materials company is most likely to be a: A) Second-tier customer B) First-tier supplier C) First-tier customer D) Second-tier supplier 36) 37) What factors appear to be influential in ensuring the success of TQM? A) Focus TQM on the areas of the operations that have the greatest impact on customers. B) Committed workers and supervisors, investment in training, financial benefits for staff. C) Motivate the workforce through a programme of hype, slogans and exhortations. D) Quality strategy, top management support, a steering group, appropriate training and recognition and reward. 37) 4
38) As part of concept generation, a company may use focus groups. A focus group will typically comprise: A) People identified at random by street market researchers B) Seven to ten participants who are unfamiliar with each other and have certain characteristics in common that relate to the particular topic C) Staff who take apart competitorsʹ services/products and focus on how they have been made D) Contact staff in a service organisation or the salesperson in a product-orientated organisation 38) 39) Of the supply-side influences community factors include all, bar one, of the following considerations: A) History of labour relations B) Language C) Government financial assistance D) Image of the location E) Local amenities 39) 40) In planning and control, control is NOT: A) An adjustment to planned events B) A statement of intention C) A process of coping with changes to supplier and/or demand D) An adjustment that allows the operation to achieve the objectives that a plan has set 40) 41) What term is commonly used to indicate that the management of the logistics chain is outsourced to a specialist logistics company? A) Third-party logistics B) Logistics outsourcing C) Outsource distribution D) Distribution outsourcing 41) 42) The point at which stock will fall to zero minus lead-time is called: A) Replenishment indicator B) Re-order point C) Inventory lag D) Re-order level 42) 43) In a supply chain for products with low profit margins, the focus is likely to fall on: A) The reduction of inventory B) The increase in variety C) The reduction of suppliers D) The number of deliveries to end customers 43) 44) An organisationʹs vertical integration strategy does NOT include: A) The directions of any expansion B) Upstream or downstream expansion C) The investment in distribution warehouses D) The extent of the process span required E) The balance among the integrated stages 44) 5
45) Which of the following is not an advantage of U-shaped or ʹserpentineʹ curving line arrangements in sequential flow? A) Rework is made easier B) Handling is simplified from a central position C) Higher robustness D) Teamworking is easier 45) 46) In lean it is usual to use one specialist large machine rather than several small machines. 46) 47) Quality means different things to different operations. Please match the most appropriate organisation to this standard: The product is reliable. A) Hospital B) Bus company C) Automobile plant D) Supermarket 47) 48) The Forrester effect shows that inaccuracies increase further upstream in the supply chain. 48) 49) MRP iiʹs extra sophistication allowed forward modelling of ʹwhat ifʹ scenarios. 49) 50) Which of the following is NOT an example of an internal stakeholder? A) Employees B) Managers C) Suppliers to the organisation D) Directors 50) 6
Answer Key Testname: UNTITLED9 1) D 2) B 3) A 4) D 5) C 6) D 7) A 8) D 9) A 10) A 11) B 12) A 13) A 14) D 15) A 16) C 17) C 18) B 19) B 20) C 21) D 22) D 23) C 24) A 25) A 26) C 27) D 28) A 29) B 30) A 31) B 32) B 33) D 34) B 35) B 36) D 37) D 38) B 39) D 40) B 41) A 42) B 43) A 44) C 45) C 46) B 47) C 48) A 7
Answer Key Testname: UNTITLED9 49) A 50) C 8