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Contents
1 OPERATIONS MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1 OPERATIONS MANAGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1. OPERATIONS MANAGEMENT
NARAYAN CHANGDER
1.1 OPERATIONS MANAGEMENT
1. (a) It is both a requirement of the law and C. Computer Aided Making
a strategy to improve productivity. D. Careful Addition Manufacture
A. a Breaks
5. Name the 4 Advantages of operations
B. Leave management.
C. Day-Off
A. Reduce the costs.
D. none of above
B. Increase the revenue.
2. Costs that change in direct proportion to C. Reduce the amount of investment.
output
D. Enhance employee availability.
A. Opportunity costs
E. Provide the impetus for new innova-
B. Economies of scale tion.
C. Fixed costs
6. Responsive supply chain is suitable for
D. Variable costs
A. High end auto parts
3. Involves not only production but also B. Toilet soap
transportation, supply and services
C. Calculator
A. Production
D. Watch
B. Operations
7. is also called as Shewhart Chart named
C. System
after Walter A. Shewhart is basically a sta-
D. Physical system tistical chart which helps in determining if
an industrial process is within control and
4. What does CAM stand for? capable to meet the customer defined spec-
A. Carefully Added Material ification limits.
B. Computer Aided Manufacture A. ready card
1. A 2. D 3. B 4. B 5. A 5. B 5. C 5. E 6. A 7. B
1.1 OPERATIONS MANAGEMENT 3
B. control chart B. Pareto Chart

C. histogram C. Ishikawa Diagram

D. checklist chart D. Pearson Diagram
8. An example of CSR in outputs: 13. Product classification consists of

A. Sourcing locally A. Consumer Products
B. Using green energy B. Industrial Products
C. Minimising waste in production C. A and B are correct
D. Minimising Packaging to end con- D. A and B are wrong
sumer
14. is deciding the best physical arrange-
9. A business wants to minimise the volume ment of all resources within a facility
of its waste. Which performance objective
A. layout design
is the business trying to achieve?
B. organizational design
A. Cost
C. product design
B. Customisation
D. plant design
C. Flexibility
D. Speed 15. (a) It is concerned with demand-
management decisions and the method-
10. Operations Management is a system that ology and systems required to make them
involves converting production factors (Talluri & van Ryzin, 2004).
(raw materials, labor, capital, and other
A. a Revenue Management
expenses) into outputs that are goods or
services. B. Profit Management
A. cheap C. Income Management
B. wrong D. none of above
11. Service level measures 16. Below are the examples of projects or
products that used fixed position layout
A. Performance of a product
EXCEPT:
B. performance of HR
A. Ships
C. Performance of a service system
B. Houses
D. None of the above
C. Aircraft
12. revolves around the concept of 80-20 D. Burger
rule which underlines that in any process,
80% of problem or failure is just caused by 17. When your sales will equal all of your ex-
20% of few major factors which are often penses it is called the
referred as Vital Few, whereas remaining A. cash budget
20% of problem or failure is caused by
80% of many minor factors which are also B. balance sheet
referred as Trivial Many. C. breakeven point
A. gantt chart D. return on investment
8. D 9. A 10. A 11. C 12. B 13. C 14. A 15. A 16. D 17. C 18. B

18. It is a generic term for techniques and 24. What is productivity?

work measurement which are used in the A. the output measured against the in-
examination of human work in all its con- puts used to create it.
texts
B. the inventory held to deal with uncer-
A. Time Study tainty in customer demand and deliveries
B. Work Study of supplies.
C. Motion Study C. refers to techniques used by busi-
nesses to cut down on waste and increase
NARAYAN CHANGDER
D. Method Study
efficiency, often by reducing product de-
19. The first step in Break Even Analysis is to velopment time.
determine the fixed and variable costs for D. Japanese term that means ‘continuous
each location. improvement through the elimination of
A. True waste.’
B. False 25. Excessive movement within the workplace
20. Which of the following aims at finding is kind of waste
the best and most efficient way of us- A. Motion
ing the available resources-men, materi- B. Transportation
als, money and machinery?
C. Waiting
A. Method Study
D. Overproduction
B. Work Study
26. Input measures are most appropriate for
C. Time Study
smallprocesses or where capacity is rel-
D. Motion Study atively fixed, or forhighly customized or
variable outputs such ascomplicated ser-
21. (FCFS) Stands for (a)
vices.
A. a (“first come, first served”)
A. true
B. (“first call, first served”)
B. false
22. Which of these Managers would be least
27. Select two benefits for the business of
likely to be considered in an operations
having good quality products.
management role within an organization?
A. Improved customer loyalty.
A. Production Manager
B. More inspections.
B. Reservations Manager
C. Increased staff training.
C. Financial Risk Manager
D. Charge higher prices.
D. Quality Manager
28. Provision of a product that relies heavily
23. Product Layouts:Select Two on automation and machinery
A. Facilities are more capital intensive
B. Low flexibility relative to the market
C. Facilities are more labor intensive
D. Greater flexibility relative to the mar-
ket
19. A 20. B 21. A 22. C 23. A 23. B 24. A 25. A 26. A 27. A 27. D 28. B
A. Production intensive B. Reductions in prevention and ap-

B. Capital intensive praisal costs lag behind investment in
prevention.

C. Labor intensive
C. It is never free.
D. Automation intensive
D. Zero defects is not possible.
29. Operations and processes differ in that 33. An operations manager is not likely to be
operations are the activities that create involved in
goods and services, while processes are
A. the design of goods and services to
the steps that are followed to complete
satisfy customers’ wants and needs
those activities
B. the quality of goods and services to
A. True
satisfy customers’ wants and needs
B. False C. the identification of customers’ wants
Explanation:Operation is the overall func- and needs
tion of transforming inputs into outputs. It
is the broader term that encompasses all D. work scheduling to meet the due dates
of the activities involved in creating and promised to customers
delivering goods and services. Process E. maintenance schedules
is a specific sequence of steps that is fol-
34. What is cost leadership in operations man-
lowed to complete a task or activity. It is
agement?
a more granular term that refers to the in-
dividual steps that make up an operation. A. Having the highest costs in the market
B. Being the most price competitive busi-
30. Which of the following is not an inven- ness
tory?
C. Focusing on product differentiation
A. Raw material
D. Ignoring cost considerations
B. Finished goods
35. Identify which of the following improve-
C. Consumable tools ments in efficiency or effectiveness re-
D. Machines lates to each technological strategy.Three-
dimensional design plans can be viewed
31. The following are forecasting techniques. from multiple angles which improves cus-
Please select all that apply. tomer satisfaction.
A. Visionary A. Automated production lines
B. Judgmental B. CAD
C. Associative Model C. CAM
D. Descriptive D. Website development
E. Time-Series 36. Product Layouts
A. Low flexibility relative to the market
32. If “quality is free”, why do authori-
ties recognise that an improvement pro- B. Slower processing rates
gramme needs investment? C. Greater flexibility relative to the mar-
A. There is an inevitable worsening of ket
quality during periods of change. D. High material handling costs
29. B 30. D 31. B 31. C 31. E 32. B 33. C 34. B 35. B 36. A
37. Those who provide support 43. Machinery is likely to be efficient. what
economies it indicate?
A. Census
B. Policies
C. Autocratic Style
D. Staff
38. The stage pertains to logistics and fo-
NARAYAN CHANGDER
cuses on getting finished goods to con-
sumers, in whatever manner of trans-
portation is needed.
A. PLAN
A. Financial Economies
B. MAKE
B. Buying Economies
C. DELIVERY
C. Technical Economies
D. RETURN
D. Managerial Economies
39. Is a specific kind of inspection.
44. Quality is negatively and insignificantly re-
A. Production
lated to a higher return on investment.
B. Quality Service
A. True
C. Inspection
B. False
D. Testing
45. The following is NOT a benefit of MRP:
40. It is not necessary to align the strategies
with the goals of the organization A. Better response to customer orders as
a result of improved adherence to sched-
A. True ules
B. False B. Faster response to market changes
41. This term refers to the actions performed C. Finding a balance between the de-
by a business to transform inputs into out- mand received and the capacity available
puts. D. Increased utilization of facilities and
A. Processes workforce
B. Inputs E. Lower inventory levels
C. Outputs 46. Is the process of hiringemployees among
D. Raw material the shortlisted candidates andproviding
them a job in the organization.
42. A typical organization has only two basic
A. Recruitment and Selection
functions:operations, and marketing. True
or False? B. Recruitment
A. True C. Selection
B. False D. Interview
37. D 38. C 39. D 40. B 41. A 42. B 43. C 44. B 45. C 46. C 47. A
47. Match the correct term with the following C. seeks the best machine utilization in
definition are the resources and raw continuous production.
materials that are used by a business to

D. allocates shelf space based on cus-
produce goods and services tomer behavior.
A. Inputs E. deals with low-volume, high-variety
B. Processes production.
C. Outputs 52. The transformation is central to the
D. none of above system
A. outputs
48. Production processes involving a high level
on labour input compared with capital B. inputs
equipment C. process
A. Labour intensive D. obligations
B. Sustainability
53. What is one way to minimize costs in the
C. Production process operations function?
D. Capital intensive A. Increase input costs
49. A company’s policy is to purchase from B. Reduce labor costs

lowestcost suppliers regardless of their lo- C. Ignore quality management
cation. What is this policy an example of? D. Increase processing costs
A. Global sourcing
54. is applied for low volume submarine
B. Economies of scale production:
C. Global branding A. Job Process
D. Research and development B. Continuous process
50. (a) These are useful in making short- C. Batch process
term forecasts when data are presented D. Project process
in an identifiable pattern over time (e.g.,
weekly, monthly, quarterly, yearly, and 55. Trey compares the prices offered by differ-
so on). ent vendors for the same goods and ser-
vices. Which part of the purchasing pro-
A. a Time-Series
cess is Trey involved in?
B. Causal
A. price fixing
C. Predictive
B. bid analysis
D. Subjective
C. invoice payment
51. A fixed-position layout: D. receipt of goods
A. groups workers to provide for move- 56. Service often:
ment of information.
A. are tangible
B. addresses the layout requirements of
large, bulky projects such as ships and B. are knowledge based
buildings. C. are standardized
48. A 49. A 50. A 51. B 52. C 53. B 54. D 55. B 56. B

D. are low in customer interaction 61. Diseconomies of Scale result in a lower per
unit production cost over the long run
E. have consistent product definition
A. True
57. Which of these is NOT a benefit of mass
B. False
producing standardised products?
A. Economies of scale 62. This is perhaps the best used in US.
B. Unique products consumers value A. Use of teams
NARAYAN CHANGDER
C. Fewer errors in production B. Organization with distinct depart-
ments
D. Task specialisation for employees
C. Understanding the customer
58. Samsung places a strong emphasis on D. Service development system
customer satisfaction, and the company
strives to develop products and services 63. contact occurs through distributors and
that meet the needs of its customers. This retailers.
customer-focused approach has helped A. Contact
Samsung maintain its position as a leading
B. Service
global electronics manufacturer.
C. Manufacturing
A. True
D. none of above
B. False
64. Forecasts should be monitored for possible
59. The capacity of the natural world to meet adjustments.
the needs of current and future genera-
tions A. True
B. False
65. It needs more capital requirement initially.

A. Production
B. Operation
66. Suppliers Will go for ‘Rate Contract ‘ with

A. Distributors
A. Ecological sustainability
B. Vendors
B. Preservation processes
C. DGS&D
C. Social sustainability
D. Suppliers
D. Green technologies
67. Refers to the facilities that are organized
60. Critical path is around specific activities or processes
A. the path with longest duration A. Process Focus
B. the path with shortest duration B. Repetitive Focus
C. path where there is no slack C. Product Focus
D. path with maximum float D. Mass Customization
57. B 58. A 59. A 60. A 61. B 62. A 63. A 64. A 65. A 66. C 67. A 68. B
68. Which among these is under “Operations 72. A function of an organization which tracks
Management” in the supply chain manage- how well an organization is doing, pays
ment? the bills, and collects the money

A. Raw Materials A. Marketing
B. Manufacturing B. Production/Operations
C. Inbound Logistics C. Finance/Accounting
D. none of above D. none of above
69. Rollio Chocolate is a confectionery busi- 73. Kaoru IshikawaChoose Two:

ness that produces in Australia and dis- A. -Developed Cause-and-effect dia-
tributes their final products to countries in- grams
cluding the United States and the United
B. Identified concept of “internal cus-
Kingdom. Currently, Rollio is facing a
tomer”
decline in overall profits as international
competitors gain more market share in C. -Focused on product design quality
the chocolate industry. Subsequently, the D. Developed Taguchi Loss function
CEO, Gigabo, is considering moving pro-
duction to Malaysia to help the business 74. This type of forecasting method could be
remain competitive.Identify the following beneficial for products that have little to
as either an advantage or disadvantage of no demand history.
overseas manufacture as a global strategy A. delphi method
for Rollio Chocolate. Overseas manufac-
B. sale force opinion
ture may lead to the loss of jobs in Aus-
tralia as chocolate production occurs over- C. trend projection method
seas, including unemployment rates. D. market research
A. Disadvantage 75. The enterprise resource planning (ERP)
B. Advantage system has proven to be a success and a
major achievement, enabling TI to consis-
70. This term refers to the final goods or ser- tently manage factory operations across
vices produced as a result of a business’ the globe.
operations system, which are delivered to
customers A. True
A. Outputs B. False
B. Putouts 76. Key employees are responsible for all daily

operations, processes and decisions for
C. Processes
the department(s) they oversee.
D. Inputs
A. True
71. Just in time is the concept of an inven- B. False
tory strategies that company employ to
increase efficiency and decrease waste by 77. “IKEA, a major Swedish furniture manu-
receiving production only when needed. facturer. Provides free furniture assembly
service. After the customer purchases the
A. Yes product” from the above statement, it is
B. No called Product-Services Bundling.
69. A 70. A 71. A 72. C 73. A 73. B 74. D 75. A 76. A 77. A
A. cheap C. Mudi
B. wrong D. Change it
78. A product’s life cycle is divided into four 83. An entrepreneur must design adequate
stages, including: production facilities to produce outputs
A. introduction. that fulfil
B. growth. A. sales type.

B. sales forecast.
NARAYAN CHANGDER
C. maturity.
D. all of the above. C. sales buyer.
D. sales demand.
79. The risks taken by the operation in adopt-
ing a process, product or service. 84. The decision to provide capacity depends
A. Acceptability upon the selectedstrategy and the ability
to store the product or timeliness ofservice
B. Feasibility production.
C. Vulnerability
A. TRUE
D. Resources
B. FALSE
80. A measure of efficiency levels
85. Widely used throughout the hospitalityin-
dustry and relies on voluntarycustomer
participation
A. Training Managers
B. Guest Input is Important Source of
Data
A. Productivity
C. Comment Cards
B. Transformation ratio
D. SERVQUAL
C. Concentration ratio
D. Differentiation 86. Andon system is a visual signals at the ma-
chine notify support personnel
81. What is a variable cost?
A. True
A. 1. A cost that remains constant regard-
B. False
less of the level of production
B. 2. A cost that varies with the level of 87. A Facility Layout review ensures there
production is continuous improvement throughout the
process.
C. 3. A cost that is incurred only when a
product is sold A. TRUE
D. 4. A cost that is not associated with B. FALSE
production
88. Loss in the product life cycle happened in
82. Waste created through overburden the decline phase
A. Later A. True
B. Mura B. False
78. D 79. C 80. A 81. B 82. A 83. B 84. A 85. C 86. A 87. B 88. A 89. B
89. Kaizen is likely to work under an auto- 94. Example of relaxation allowance
cratic leadership or bureaucratic corporate A. Extra time taken to repair a machine
culture.True of False

B. Overtime
A. True
C. Time taken to warming up a machine
B. False before operating
90. Which process technology allows for the D. Lunch break

automated placement and withdrawal of 95. Histogram introduced by is a bar graph
parts and products? representing the frequency distribution on
A. Robots each bars.
B. Automated storage and retrieval sys- A. Rene Descartes
tems (ASRS) B. Karl Pearson
C. Automated guided vehicles (AGVs) C. Edward Demings
D. Flexible manufacturing systems (FMS) D. Wilfred Pareto
91. Enables the management to decide 96. Operation management is known good for
whether adjustment is needed or not rep-
resent what elements in the Operations A. Cost effective operation
Management System?
B. Allocation of resources
A. Input C. Good Return on investment
B. Transformation Process D. All the above
C. Feedback
97. Which one is the objective of operations
D. Output management?
A. The bottleneck in the production pro-
92. Effective recruitment:
cess
A. Results in skilled, experienced employ-
B. Late delivery
ees
C. Waste of resources
B. Fills open positions in your company
D. Achieving customer satisfaction
C. Focuses only on recent college gradu-
ates 98. Unique product made exactly to a cus-
tomers requirements
D. Only uses online recruitment tools
A. Job
93. Includes the organization structure, direc- B. Batch
tives, reports and network of mechanized
or electronic servo-systems C. Flow
A. Physical system D. none of above
B. System 99. Check the boxes below which includes the

Regional trading agreements that are de-
C. Information system
signed to guarantee continued competition
D. Production on the international level except for one.
90. B 91. C 92. A 93. C 94. D 95. B 96. D 97. D 98. A 99. A 99. C 99. D
A. North American Free Trade Agreement 104. Being productive by giving customers
(NAFTA) something they want will make the com-
B. International Organization for Stan- pany FAIL
dardization (ISO) A. TRUE
C. European Union (EU) B. FALSE
D. global World Trade Organization
(WTO) 105. An approach to operations management
that focuses on cutting all types of waste
NARAYAN CHANGDER
100. An advantage of global outsourcing: in the production process with the aim of
greater efficiency.
A. Cheaper to produce non-core func-
tions overseas A. TQM
B. Wages and working conditions not B. Lean production
equal to Australia C. Batch production
C. Loss of local jobs
D. Job production.
D. Cheaper source of inputs
106. The purchase-order lead time is the
101. Which of the following is not one of The
Ten Critical Decisions of Operations Man- A. time between placing an order and its
agement? delivery
A. Layout strategy B. time between receiving a customer or-

der and producing the products
B. Maintenance
C. ) time between receiving a customer
C. Process and capacity design order and delivering the items
D. Mass customization D. time required to correct errors in the
defective products
102. Which of the following are all examples
of operations performance objectives?
107. This type of stock control occurs when the
A. Choice, flexibility, profit, speed company holds no buffer stick and usually
B. Cost, dependability, quality, speed only produces when an order comes in.
C. Customisation, flexibility, profit, qual- A. Just-in-case

ity B. Kaizen
D. Choice, customisation, dependability, C. Just-in-time
profit
D. Lean production
103. The method of of turning inputs into out-
puts by adding value in a cost-effective 108. The main throughput gives a of the
way. major transformational component
A. Operations management A. performance
B. Labour intensive B. profiteers
C. Production process C. model
D. Capital intensive D. obligations
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109. A likely advantage of operating a multi- C. Transformation

site business is: D. Ecologism

A. Less opportunity for job promotion
113. Why is work measurement important?
B. Marketing economies of scale
A. To increase inefficiencies
C. Higher selling prices
B. To optimize resource allocation
D. Harder in increase/flex capacity
C. To decrease productivity
110. The factors that most influence factory D. To ignore cost estimation
layout design are:
114. These aircraft fly faster (with 520 to 560
A. Organizational culture
mph speed), travel longer distances, and
B. Type of product produced are larger.
C. Geographical location of the factory A. Narrow-Body Jet
D. government policy B. Wide-Body Jet
111. ISO 9000 C. Jet Planes
A. Provides the terminology and defini- D. Jet Aircraft
tions used in the standards. It is the start-
115. The purpose of value-chain analysis is
ing point for understanding the system of
to increase production efficiency so that a
standards
company can deliver maximum value for
B. The standard for certification of a the least possible cost.
firms quality management system. It is
A. True
used to demonstrate the conformity of
quality management systems to meet cus- B. False
tomer requirements
116. Which of these statements accurately
C. Provides guidelines for establishing a captures a current trend in operations?
quality management system. It focuses
A. Cost competition is more important
not only on meeting customer require-
than any other basis for competition
ments but also on improving performance
B. There is increased focus on local mar-
D. A set of international standards and a
kets and local competition.
certification focusing on a company’s en-
vironmental responsibility C. Products and services are designed
more quickly and by teams.
112. Promotes intergenerational equity for
D. Jobs are increasingly specialized as
present and future generations
workers focus on basic assembly tasks
117. He postulated 14 Points that convey im-

portant insight and provide guidance for
managing organizations.
A. Dr. W. Edwards Deming
B. Joseph Duran
A. Value-added C. A.V. Fig tree
B. Sustainability D. Philip B. Crosby

118. quality must be defined from the per- 123. What is the role of economies of scale in
spective of thestakeholder. operations management?
A. W. Edwards Deming A. It increases the price of the final prod-
B. W. Edward Deming uct
C. W. Edwardo Diming B. It reduces the quantity of inputs pur-
chased
D. W. Edwards Deming
C. It decreases the cost per unit of inputs
119. The management of systems or processes
NARAYAN CHANGDER
D. It increases the cost per unit of inputs
that create goods and /or provide ser-
vices. 124. TQM philosophy Continuous improve-
A. Operations Management ment
B. Finance Management A. A philosophy of never-ending improve-
C. Sales Management ment
D. none of above B. Employees are expected to seek out,

identify, and correct quality problems
120. This philosophy focuses on continues im- C. Ongoing employee training in the use
provements in products and services by re- of quality tools
ducing uncertainty and variability driven
by the leadership of top mgt. D. Products need to be designed to meet
customer expectations
A. Juran Philosophy
B. Deming Philosophy 125. Becky, Betty and Bob run a cupcake shop.
Becky makes the cupcakes, Betty deco-
C. Crosby Philosophy
rates them and Bob sells them. The dif-
D. Feigenbaum Philosophy ferent jobs they have is an example of:
121. the following are the components of A. advertising
effective demand management, except1. B. specialization
Planning Demand; 2. Communicating De-
C. capital resources
mand; 3. Influencing Demand and 4. Pri-
oritizing Demand. D. economic exchange
A. Planning Demand 126. ISO 14001:2015 is;
B. Influencing Demand A. Most recent version of ISO for EMS
C. Synthesizing Demand
B. Popular EMS measure
D. Communicating Demand
C. Older EMS standard
E. Prioritizing Demand
122. Employees are encouraged to participate
equally 127. (a) A status of inventory control when
no new reservations are allowable for a
A. Democratic Style given date, either across all DISTRIBU-
B. Laissez-Faire style TION channels or for a particular channel.
C. Consulting Style A. a Closed Inventory
D. Autocratic Style B. Open Inventory

C. Close Inventory 133. How many plastic bottles are used every
D. Physical Inventory minute worldwide?

A. 100, 000
128. forecasting is aimed at
A. reducing risk in decision making B. 1, 000, 000
B. influencing the behavior of organiza- C. 10, 000, 000

tional resources to implement organiza- D. 100, 000, 000
tional strategies
134. The operations manager can suggest
C. maintaining or altering patterns in or-
which forms of non-financial rewards may
ganizational activities
be suitable for the organization.
D. none of above
A. True
129. Which of the following is NOT a way
B. False
to improve productivity in operations man-
agement? 135. A business is experiencing increasing
A. Introducing new technology costs for its stock over time. It is seek-
B. Reducing waste ing to maximise its profit for the current
financial period. Which strategy should it
C. Increasing employee breaks adopt to value its inventory?
D. Streamlining processes
A. First-in-first-out
130. Crosby’s Basic elements of Improvement B. Just-in-case
were determination, education, and
C. Just-in-time
A. Techniques
D. Last-in-first-out
B. Practices
C. Principles 136. What is the formula for calculating avail-
D. Implementation ability?
A. MTBF / (MTBF + MTTR)
131. Components and material handling equip-
ment are the example of? B. MTBF-MTTR
A. Industrial Goods C. MTBF x MTTR
B. Producer Goods D. MTBF + MTTR
C. Consumer Goods
137. Which of the following do not character-
D. Services ize global corporations:
132. Manufacturing engineering is responsible A. Facilities and plants are located on
for the machines and equipment needed in world-wide basis
the production process. Also called process B. Global product design and process
engineers, they are mainly trained as me- technology are used
chanical engineers, but other fields such as
electrical and chemical may also be needed. C. Cost can be lower as economies of
True or False? scale are greatly magnified
A. True D. none of the above
B. False E. all of the above

138. What management function has the task operations. Which of the following is not
of hiring new employees? a current trend?
A. organizing A. Technology
B. planning B. Sustainability
C. staffing C. Globalization
D. implementing
D. Politics
NARAYAN CHANGDER
139. Which of the following would not be nor-
mally be considered a general characteris- 144. The quality management tool developed
tics of a service? by Motorola in the 1980s was called-
A. Production and consumption are simul- A. Six Sigma

taneous B. Pareto chart
B. Low contact service can often be made C. TQM
more efficient than high contract
D. none of above
C. Production and consumption can al-
ways be spatially separated
145. manufacturing makes use of produc-
D. Many services involve both tangible & tion areas rather than assembly lines.
intangible outputs
A. repetitive
140. Discipline is apart of being steward. B. discrete
A. TRUE C. job shop
B. FALSE
D. batch
141. Calculation for Crashing of Project is done
for 146. A technique in which a large number of
observations are made over a period of
A. Critical Path time of one or group of machines, pro-
B. Shortest Path cesses or workers.
C. Normal Path A. Work Sampling
D. Abnormal path B. Synthetic Data
142. reductions in a firm’s unit costs of pro- C. Predetermined motion time study
duction that result from an increase in the D. Analytical estimating
scale of operation
A. communication economies 147. These are the objectives of facility layout
EXCEPT
B. technical economies
C. coordination economies A. Maximize customer satisfaction
D. marketing economies B. Maximize utilization of space, equip-

ment and people
143. Organizations are recommended to con-
C. Maximize employee morale and safety
stantly monitor current trends and take
them into account in their strategies and D. Maximize profit

148. The following are features of a forecast. 153. What are the 5 phases of project manage-
You may select more than one as long as ment?
it is a feature of a forecast.

A. Initiating, Planning, Executing, Moni-
A. Forecasting techniques assume that toring/Controlling, Closing
the same causes of demand that exist in B. Scheduling, Budgeting, Marketing,
the past will continue to exist in the future. Evaluating, Documenting
B. Forecast accuracy decreases as the C. Researching, Implementing, Analyz-
time period covered by the forecast-the ing, Reporting, Concluding
time horizon-increases. D. Designing, Testing, Launching, Review-
C. Forecast for individual items are more ing, Improving
accurate than group items.
154. Recognizing the fact of life enables man-
D. Forecasts are not perfect. agers to direct their efforts to where they
will perform well and to avoid wasting
149. What is:Total Fixed Costs / Contribution time and energy on insignificant elements
per Unit is also referred to as?
A. Break-Even Formula A. Pareto phenomenon,
B. Total Revenue Formula B. Systematic Approach
C. Break-Even Point C. Ethics
D. Contribution D. Analysis of Trade-offs
150. The decision making is related to the reg- 155. They have to respond to forces from
ular business activities. the external environment, such as gov-
ernment regulations, labor union demands,
A. Production and local, regional, national, and world
B. Operation economic conditions
A. Manager
151. Productivity computed as a ratio of out-
put to only one input (e.g., labor, materi- B. Directors
als, machines). C. Management
A. Structure D. Operators
B. Partial productivity 156. The minimum amount of merchandise a
C. Time business wants to keep in inventory is of-
ten referred to as the reorder point.
D. Total productivity
A. true
152. By analyzing the different stages of the B. false
supply chain, companies can identify op-
portunities to improve their efficiency, in- 157. Flexibility in job assignment is one of the
crease their innovation, enhance customer advantages for?
satisfaction, and strengthen their compet- A. Retail Layout
itiveadvantage. B. Process Layout
A. True C. Fixed Position Layout
B. False D. Office Layout

158. What is the major difference in the 163. The ability for one business to outper-
“weighted moving average” and a regular form its rivals
“moving average”. A. Efficiency
A. The most recent average matters the B. Effectiveness
most.
C. Productivity
B. The movement of averages is com-
puted individually. D. Business Competitiveness
NARAYAN CHANGDER
C. The averages are all averaged to cre- 164. What is the purpose of operation schedul-
ate a weighted average. ing?
D. There is no difference and they are es- A. To ignore customer delivery dates
sentially the same
B. To increase the cost
159. The effective materials management plan C. To reduce the manufacturing time
builds from and enhances an institutional
master plan by filling in the gaps and pro- D. To decrease the delivery performance
ducing an environmentally responsible and 165. What is an example of Mass production?
efficient outcome.
A. Furniture
A. true
B. Building dams
B. false
C. Electronic equipment
160. In the PERT method, the sequence of
D. Cars
tasks that takes the longest time to com-
plete. 166. Which of the following would not be an
A. Priority Path operations activity in a fast-food restau-
rant?
B. Critical Path
C. Essential Path A. Advertising new salad dishes
D. Short Cut B. Purchasing tomatoes

C. Planning the layout of the serving ar-
161. is not an example of Material Han- eas
dling Equipment?
D. Cooking hamburgers and fries
A. Conveyors
B. Cranes 167. Inspect every product produced and De-
stroy defective products are the jobs of
C. Industrial Trucks
A. Quality Assurance Teams
D. Industrial Sensor
B. Quality Control Teams
162. The term is used to describe all the
activities managers do to help their firms 168. Process Layouts
create goods. A. Higher space requirements
A. Operations Management B. Lower space requirements
B. Human Resource Management C. Able to produce a small number of
C. Production Management products efficiently
D. Shipping Management D. Resources used are specialized

169. Process Layouts B. Ensuring that products or services

meet customer requirements and expec-
A. Processing rates are faster
tations

B. Slower processing rates
C. The process of making changes to
C. Lower material handling costs products, services, or processes to im-
D. Lower space requirements prove their quality
D. Ensuring that products or services
170. Standard products may create economies meet specified quality standards
of scale in transportation. Inventoriesof
standard products can also be placed 174. The final stage of the supply chain man-
at sites near customers to facilitate a agement flow is called
rapid responseto any order, often provid- A. Consumer
ing a competitive advantage with time-
B. Customer
conscious customers.
C. Destruction
A. Delivery
D. Recycling
B. Quality
C. Simplified Value Comparisons 175. is the creation of goods and services
using land, labor, capital, entrepreneur-
D. Value Comparisons ship and knowledge.
171. One technique to generate new service A. Resources

ideas B. Supply Chain Management
A. Brainstorming C. Purchasing
B. Service design D. Production
C. Good service design 176. Value Chain is divided into 2 categories
D. Delivering Quality Service namely:
A. Primary and Secondary
172. What is the purpose of release planning
B. Support and Core
in agile project methodology?
C. Primary and Support
A. To ensure everyone understands the
end goal of the project D. Primary and Core
B. To create a list of features for the final 177. What is the purpose of data collection in
product the operational improvement cycle?
C. To plan all feature releases and review A. Analyzing customer feedback
them at the start of each sprint B. Calculating employee salaries
D. To schedule tasks for each team mem- C. Gathering information on how the pro-
ber cess is implemented
173. What does quality assurance refer to? D. Monitoring competitor performance
A. A management approach that empha- 178. Organizing involves identifying and ar-
sizes the importance of quality in all as- ranging the work and resources needed to
pects of a business achieve business goals.

A. true B. Adaptive
B. false C. Process
179. It was the commitment of top Japanese D. none of above

management, the realization of the re- 185. Actual production to the total output will
wards of SPC implementation plus the give you the
philosophies of Deming that are the basis
of Japanese competitive advantage as we A. Performance percentage
know it today.
NARAYAN CHANGDER
B. Availability percentage
A. true C. Quality percentage
B. false D. Profit percentage
180. Below are metrices to measures fore- 186. A process strategy where facilities are
caset accuracy, except long, continuous, and production runs en-
A. Mean Absolute Deviation able efficient processes with generally less
skilled labor
B. Mean Forecaset Error
A. Product Focus
C. Tracking Signal
B. Process Focus
D. Center of Gravity
C. Mass Customization
181. what must supply chains NOT be D. Repetitive Focus
A. reliable
187. Strategic Operations are employed
B. quick by an organization for growth and more
C. flexible profitability.
D. costly A. Funds
182. Choose right answer from the following: B. Business Strategies
A. H1 C. People
B. right D. Assets
C. Oh 188. What is the definition of an efficient sup-

D. Hch ply chain strategy?
A. An intense focus on driving down costs
183. A is a business with two or more on supply chain processes to supply pre-
owners dictable demand products at the lowest
A. corporation cost
B. conglomerate B. An intense focus on quickly responding
C. partnership to unpredictable demand in order to mini-
mize lost sales, markdowns, and obsolete
D. public corporation. inventory
184. The form of creativity that generates C. Economies of scale, large volume dis-
new forms of thinking, addressing prob- counts, cross-docking, full shipments
lems from an unusual perspective. D. Minimize markdowns and obsoles-
A. Innovative cence in inventory

189. The re-order level is: 194. What strategies can be used to increase
employee motivation in operations man-
agement?

A. Application of advanced technology
B. Salary increase
A. 300 C. Providing performance-based incen-
tives
B. 500
D. Reduction of working hours
C. 400
D. 100 195. Which of the following is an advantage
of batch production?
190. Empowering employees improves em- A. Not flexible way of working and pro-
ployee retention resulting to lesser cost duction
incurred by the organization in terms of
recruiting, hiring, and training of new em- B. Production may not be affected if ma-
ployees. chinery breaks down
A. Improved Work Outcomes C. Production may be affected if machin-
ery breaks down
B. Cost Benefits
D. It is very cheap
C. Career Development
D. none of above 196. In this stage, products are manufactured.
It includes scheduling the production, test-
191. Actual run time to the planned run time ing, ensuring compliance requirements are
will give you the followed, packing, storage and release.
A. Performance percentage A. PLAN
B. Availablity percentage B. MAKE
C. Quality percentage C. RETURN
D. Profit percentage D. DELIVER
192. Who was largely responsible for invent- 197. Choose the correct option
ing an efficient operations system for
mass producing standardised goods?
A. Jane Fanda
B. Henry Ford
C. Elon Musk
D. Marius Ortner
193. Schewart stated that a quality product
can only be made if all the processes in a
company are under control, therefore ev-
erybody in a company is responsible for A. Copyright
quality. B. Trademark
A. True C. Copyleft
B. False D. Patent

198. Which phase helps make sure we use re- 203. Consistently producing what the cus-
sources wisely? tomer wants while reducing errors be-
A. Executing fore and after delivery to the customer is
known as
B. Controlling
A. quality
C. Measuring
B. consistency
D. Planning C. repetition
NARAYAN CHANGDER
199. Which is NOT one the goals of Total Qual- D. direct supply
ity Management?
204. TQM philosophy Concept
A. customer satisfaction
A. Main Idea
B. employee involvement
B. Goal is to identify and meet customer
C. continuous improvement in perfor- needs
mance
C. A philosophy of never-ending improve-
D. customer rewards program ment
D. Employees are expected to seek out,
200. Visual Kanban reduce inventory and fos-
ter JIT
A. True 205. Which of the following are assignable
cause?
B. False
A. Large variations in hardness of mate-
201. How can diseconomies of scale be rial
avoided? B. Tool wear
A. Increasing production volume, reduc- C. Errors in setting
ing fixed costs, and outsourcing opera-
D. All of the above
tions.
B. Expanding the workforce, increasing 206. A tool used to arrange a workplace in
advertising expenses, and diversifying a plant by locating areas with high fre-
product offerings. quency and logical relationships close to
each other.
C. Neglecting quality control, ignoring
customer feedback, and relying on out- A. Forecasting Process
dated technology. B. Total Quality Management
D. Implementing efficient management C. Objectives of Layout
practices, streamlining operations, and in- D. Layout Planning
vesting in technology and automation.
207. Which layout is suitable, when efficiency
202. The THIRD step in forecast is is the
A. Prepare the forecast A. product
B. Select a forecasting techniques B. process
C. Establish a time horizon C. group technology
D. Monitor the forecast D. Cellular

208. refers to the system’s ability to pro- 213. What is social sustainability?
duce new types of products, and its abil-
A. Meeting the needs of current and fu-
ity to change the order in which operations

ture stakeholders.
are executed.
A. routing flexibility B. Maintaining a class system.
B. machine flexibility C. Ensuring the survival of a corporate

culture.
C. process flexibility
D. Allocating resources to their most effi-
D. design flexibility
cient use.
209. The continual process of detecting and
reducing or eliminating errors in manufac- 214. The main objectives of supply chain inte-
turing, streamlining supply chain manage- gration are to:
ment, improving the customer experience, A. Reducing the number of suppliers
and ensuring that employees are up to
speed with training. B. Increase delivery speed
A. Total Quality Management C. Achieve synergy among various func-

tions
B. Layout Planning
D. Reduce labor costs
C. Objectives of Layout
D. Dimensions of Design Quality 215. Include purchase to order, make to order,
assemble to order, and make to stock.
210. Buffer inventory is
A. Process production
A. the time between ordering new sup-
plies and their delivery B. Lead time
B. the level of inventory that triggers a C. Technical elements
new order
D. none of above
C. minimum inventory level to allow con-
tinuous production 216. defines the purpose of an organiza-
D. number of units ordered each time tion
A. Mission
211. The main reason for holding buffer-
stocks is to ensure that: B. Vision
A. Cash is tied up in inventories C. Values
B. Customers can buy at any time D. All the abovce
C. Inventories do not run out
217. The factors involved in location decisions
D. Inventories are of suitable quality
include
212. Service Businesses do not have an oper- A. foreign exchange.
ations system because their products are
intangible B. attitudes.
A. True C. labor productivity.
B. False D. all of the above.

218. The major problem addressed by the B. Cannot be calculated

warehouse layout strategyis: C. 20 cars
A. minimizing difficulties caused by mate- D. none of above
rial flow varying with each product.
B. requiring frequent contact close to one 223. In organizing, it is important to ensure
another. that the actual performance is in accor-
dance with planned performance.
C. addressing trade-offs between space
A. True
NARAYAN CHANGDER
and material handling.
D. balancing product flow from one work- B. False
station to the next.
224. The concept of is built on the concept
E. none of the above. of postponement. This isthe extremeform
of postponement as the product is subject
219. Match the correct term with the follow-
to the final configuration as and whenthe-
ing definition are the final goods or ser-
customers’ specific order is known. The
vices produced as a result of the business’s
aim is to provide the customer with cus-
production process which are provided to
tomsolutions or, in other words, exactly
customers
what he or she wants, but to provide this
A. Inputs with the sameefficiencyachieved in mass
B. Processes production.
C. Outputs A. mass customization
D. none of above B. customization
C. mass quality
220. Companies have learned that to achieve
long-run success they must place much im- D. TQM
portance on their profits.
225. What is subsystem?
A. True
A. The items will be demanded per month
B. False
B. The whole assembly plant
221. The forecast demand for iPods at Apple C. A system that provides inputs to an-
outlets in Rome, Italy is 9, 600 units per other system
year. The monthly index in May was 1.25.
What is the demand forecast for May? D. An organized complex of interdepen-
dent components of subsystem designed
A. 640 unit to achieve some objectives
B. 798 unit
226. It involves forecasting the demand for
C. 800 unit the company’s product and converting the
D. 1.000 unit forecast in terms of the need for the vari-
E. 12.000 unit ous factors of production.
A. Production planning and control
222. A firm making 800 cars with 50 work-
ers sacks 10 staff. Output is unaffected. B. Production
What is productivity now? C. Physical facilities management
A. 16 cars D. Operations

227. An effective service strategy links ser- 232. Which of the following are NOT principles
vice decision with cashflows, market dy- of lean management?
namics, service life cycle, and theorganiza-

A. JIT
tion’s activities.
B. One piece flow
A. Brainstorming
C. Forecasting
B. Service design
D. Zero defects
D. Service development system 233. What are the THREE (3) major functions
in an organization?
228. Challenge faced by Operation Managers A. Human Resource, Operations Manage-
is enlisted here. Identify that one! ment and Marketing
A. Need to improve sales B. Operations Management, Administra-
B. Need to improve process quality tion and Marketing
C. Bring New customers C. Operations Management, Purchasing

and Finance
D. Pay salaries on time
D. Finance, Operations Management and
229. This inventory method keeps track of in- Marketing
ventory levels on a daily basis.
234. The technique can be used to deter-
A. point-of-sale inventory method mine how many units should be shipped
B. periodic inventory method from each plant to each warehouse
C. manual inventory method A. factor rating method
D. perpetual inventory method B. transportation model

C. simulation model
230. What management function has the task
D. none of above
of completing the monthly budget?
A. organizing 235. The degree to which the resources are
physically changed is called:
B. staffing
A. Number of production processes
C. planning
B. Focus or major resource
D. controlling
C. Magnitude of change
231. (a) an approach that emerged to maxi- D. none of above
mize revenue by addressing the challenges
of managing demand and supply through 236. Which one is NOT an index of Productiv-
forecasting. ity?
A. a Yield Management A. Man-hour output
B. Yield Ratio B. Productivity ratio
C. New Yield C. TQM
D. Old Yield D. Use of Financial Ratios

237. It is used to accentuate the brand. D. Operation management allows us to

A. Motif understand what operations managers do.
An operations is the person who is respon-
B. Theming sible in the operations department.
C. Highlighting
242. Differentiate between needs and wants
D. None of the Above
in operations management.
238. Inspections at various stages in the pro- A. Needs are non-essential or optional
NARAYAN CHANGDER
duction process to check for defects to en- resources while wants are essential re-
sure that goods and services meet prede- quirements.
termined standards set by the business
B. Needs and wants are the same in op-
A. Quality Control
erations management.
B. Quality Assurance
C. Needs are essential requirements
C. TQM while wants are non-essential or optional
D. none of above resources or activities.
239. WHICH DOES NOT BELONG TO 3P’S OF D. Needs and wants are terms used inter-
TRIPLE LINE BOTTOM changeably in operations management.
A. PLANET 243. The first step in maintaining an inventory

B. PLACE of supplies for the business is to:
C. PROFITABILITY A. conduct research to find vendors that
D. PEOPLE sell the supplies.
B. develop a list of supplies that the busi-
240. Products are defined by:
ness needs.
A. value analysis.
C. compare prices among vendors.
B. value engineering.
D. organize a space to store the supplies.
C. routing sheets.
D. assembly charts. 244. The decision making is related to the as-
pects of manufacturing the goods.
E. engineering drawings.
A. Production
241. There are 3 reason why study operation
management is important except: B. Operation
A. Operations management is one of the 245. Product Manager jobs include:
major functions in an organization.
A. Know everything about the product
B. Operation management enables us to
know how goods and services are pro- B. Responsible for products success and
duced, as it is concerned with the activi- marketability
ties related to the creation of goods and
C. May or may not lead a team or staff
services.
D. Sometimes make tough calls about
C. Operation management influenced by
their products to protect the company
the environment that respond to the orga-
nization. E. Follow a product through its lifecycle

246. Costs that do not change with output C. Operations management uses optimi-
A. Start up costs sation strategies to improve efficiency
and effectiveness

B. Fixed costs
D. All of the above
C. Variable costs
E. None of the above
D. Average costs
252. Product development systems include:
247. Define wants in the context of operations
management. A. bills of material.
A. Needs or requirements of customers B. routing charts.
or stakeholders C. functional specifications.
B. Desires or preferences of customers
D. product-by-values analysis.
or stakeholders
E. configuration management.
C. Goals or objectives of the organization
D. Resources or assets of the company 253. A house of quality is:
248. Work in progress inventory is the goods

the customers are awaiting delivery of.
A. True
B. False
249. It refers to a process of managing the re-

sources in an efficient way.
A. Marketing
A. a matrix relating customer “wants” to
B. Finance the firm’s “hows.”
C. Operations management B. a schematic showing how a product is
D. Human Resource Management put together.
C. a list of the operations necessary to
250. Maintenance is tougher in;
produce a component.
A. Continuous flow
D. an instruction to make a given quantity
B. batch flow of a particular item.
C. Jumbled flow E. a set of detailed instructions about
D. intermittent flow how to perform a task.
251. Select the most appropriate respose 254. The Ten Critical Decisions of Operations
about Operations Management Management include
A. Operations Management is helps a A. Finance/accounting
business to achieve a profit
B. Advertising
B. Operations management is the area of
C. Process and capacity design
the business which creates products and
services D. Pricing

255. Operational efficiency is the capability of 261. Fill in the blank

an enterprise to deliver products or ser- A. Internal Challenges
vices to its customers in the most cost-
effective manner possible while still ensur- B. Internal profit
ing the high quality of its products, service C. Internal Strengths
and support. D. Internal customer
A. True
262. Other term of Operations Management
B. False
NARAYAN CHANGDER
A. Production Management
256. One fundamental purpose of the front
B. Production and Operations Manage-
desk area is to ensure that clean sheets
ment
are put on the beds
A. True 263. What is the outcome for an organisation
producing a product right the first time?
B. False
A. Higher variability.
257. Which one of these is a quantitative fac-
B. Longer lead time.
tor affecting choice of business location?
C. Higher quality.
A. The image or reputation of an area
D. none of above
B. The personal preference of the en-
trepreneur 264. Which term considers taking economic,
C. Cost of employing skilled workers social and ecological factors into considera-
D. The friendliness of local people tion when making sustainable business de-
cisions?
258. Process Layouts A. Social sustainability
A. High material handling costs B. Ecological sustainability
B. Lower material handling costs C. Economic sustainability
C. Lower space requirements D. The triple bottom line
D. Able to produce a small number of Explanation:The triple bottom line is when
products efficiently an organisation considers not only finan-
cial outcomes but also the wellbeing of
259. Inventory that becomes unpopular and
the natural environment and society as a
not in demand as it was held for too long
whole.
=?
A. Mummified 265. What is the meaning of bottleneck in op-
erations management?
B. Perishable
A. A situation in which a business runs
C. Retirement
out of inventory
D. Obsolescence
B. The maximum potential output of a
260. The third step in PERT and CPM is devel- business
oping relationships among the activities in C. The time it takes for a supplier to pro-
the PERT diagram. vide goods to a customer
A. Yes D. Where output is limited by one aspect
B. No of operations

266. Which system extends MRP II to tie in A. Operations Management

customers and suppliers? B. Logistics Management

A. MRP III C. Supply chain Management
B. JIT D. Materials Management
C. IRP
272. To the degree to which something
D. ERP is successful in producing a desired result;
the overall success.
267. May be viewed as a purposeful group of
elements or objects that, as a whole, per- A. Efficiency
form some specific and meaningful func- B. Effectiveness
tion. It is a dynamic arrangement of el-
C. Productivity
ements, each designed to interact harmo-
niously with the others. D. Competitiveness
A. Planning 273. Way to improve your cash receipts is to
B. System decrease by getting customer who owe
you money to pay more quickly.
A. Prepare Financial Statement
D. Organizing
B. Purchasing Plan
268. The management of the processes that C. Increase Cash Receipts
transform inputs into the goods and ser-
vices that add value for the customer. D. Decrease Cash Disbursements
A. Transformation Process 274. If a business quality is not maintained
B. Operations Management then the business will:
C. Marketing Strategy A. Gain customers
D. None of the given answer B. Increase sales

C. Build brand loyalty
269. Rules, policies, procedures, and budgets
D. Lose Customers
are important components of strategic
planning. 275. What type of control chart can be used to
A. true plot “number of defects in the output of a
process for making a machine part” data?
B. false
A. s-chart
270. What is “TOTAL COST”?
B. u-chart
A. Price x Quantity of the units sold
C. c-chart
B. Total Revenue-Price
D. p-chart
C. Variable costs x Quantity
276. Organizational models are
D. Variable costs + Fixed Costs
A. multinational model
271. tends to focus on purchasing and B. international model
procurement, production planning, demand
management, from point of origin to point C. global organizational model
of consumption D. All of the above

277. Economic activities that typically produce 282. It checks on the impact of a change in a
an intangible product vriable or assumption on a business model.
A. Products A. What-if Analysis
B. Services B. Goal-seeking Analysis
C. Operations Management C. Consolidation
D. Production D. Drill Down
278. What are quality standards used for?
NARAYAN CHANGDER
283. There are 6 main elements of cus-
A. To eliminate defects and reduce costs tomer/client needs, name 2.
B. To monitor and improve quality over A. Lower costs.
time
B. Higher cost.
C. To ensure consistency and reliability in
the quality of products or services C. Less adaptability.
D. To assess the quality of products or D. Bad customer service.
services E. Shorter lead time.
279. The annual award presented to an or-
284. What is the main difference between
ganization that has implemented TQM
Lean and Six Sigma?
suitable for its management philosophy,
scope/type/scale of business, and man- A. Lean requires advanced training; Six
agement environment. Sigma is more intuitive
A. Taguchi Methods B. Lean focuses on effectiveness; Six
B. Deming Prize Sigma focuses on efficiency
C. Six Sigma C. Lean focuses on efficiency; Six Sigma

focuses on effectiveness
D. Taguchi Methods
D. Lean tools are complex; Six Sigma
280. Managing the resources needed to pro- tools are easy to apply
duce goods and service is called
A. Production 285. Which of the following are the primary
functions of all organizations?
B. Production/Operations Management
(P/OM) A. operations, marketing, and human re-
sources
C. Management
B. marketing, human resources, and fi-
D. Production/Operations Management
nance/accounting
(POM)
C. sales, quality control, and operations
281. Action in one part of the system will have
effects in the other parts. In other words, D. marketing, operations, and fi-
this can also be called as nance/accounting
A. Isolation 286. An advantage of batch production
B. Unintended consequences A. high level of worker motivation
C. Reaction B. some flexibility in design of product in
D. Planning each batch

C. low unit costs due to constant working C. will occur

machine and high labour productivity
D. has occurred

D. ability to undertake specialist projects
or jobs 292. TQM is the integration of all functions
and processes within an organization in or-
287. What is a stock-out? der to achieve continuous improvement of
A. When stocks run out the quality of goods and services. The goal
B. when stocks go up in price is repeat purchase.
C. When stocks are left outside A. true

D. When stocks are recieved B. false
288. The process of dealing with production or- 293. The following are the steps in a forecast-
ders to initiate operations under the pro- ing system, except
duction planning and control starts with
A. Make forecasts
A. Estimating
B. Selecting a forecasting model
B. Dispatching
C. Select the item to forecast
C. Scheduling
D. Forecast capacity
D. Routing
E. Determine the forecasting time hori-
289. Six Sigma Step 3:Analyze zon
A. The process to identify the root causes
of the quality problem 294. Organizations use three major types of
forecasts in planning future operations:
B. The process by eliminating the root
causes of the problem A. Economic Forecasts
C. The process to ensure the improve- B. Technological Forecasts
ments continue. C. Demand Forecasts
D. The quality problem of the process
D. Moving Average
290. A global business has adopted a strategy E. Naive Approach
which aims to lower the average cost of
its product by increasing output. What is 295. True or False:A synthetic process is a pro-
this strategy called? cess in operations management in which
A. Outsourcing materials are broken into different compo-
nent parts.
B. Global pricing
A. True
C. Global sourcing
D. Economies of scale B. False
291. Project risk is caused by an uncertain 296. One of the factors affecting the location
event that decisions is to search a locations that have
a higher cost in rental.
A. has always negative consequences
A. True
B. has both positive and negative conse-
quences B. False

297. The following are activities that can be 302. Operations decisions related to the plan-
called projects ning and control systems of the operation,
A. Construction of buildings, roads and such as organization of operations, skills
bridges and pay of workers, and quality measures.
B. New product development plan A. Environmental scanning
C. Wedding party B. Order qualifiers

C. Trade-off
D. All answers are correct
NARAYAN CHANGDER
D. Infrastructure
298. What management function has the task
of writing a memo to an employee instruct- 303. Your Study Design states you only need
ing them how to accomplish a task? to know an “overview” of
A. organizing A. global sourcing of inputs
B. staffing B. overseas manufacturing
C. controlling C. global outsourcing
D. implementing D. supply chain management
299. What distinguishes making physical 304. How effectively an organization meets
things (goods) from providing services? the wants and needs of customers relative
to others that offer similar goods or ser-
A. Customer presence vices. This statement best describes?
B. Intangibility and unstorability A. Strategic Planning
C. Customer interaction B. Product and Service Quality
D. Raw material used C. Competitiveness
300. Which of the following policies is advis- D. Productivity
able in case of low product variety and
305. Michael is looking for an employee that
large volumes?
has a Bachelor’s Degree in business, and
A. Skilled labour, special purpose ma- two years of experience in customer ser-
chines vice. In this example, Michael would put
B. Low skilled labour, general purpose these specifications into
machine A. A staff notice
C. Low Skilled Labour, Special Purpose B. A job description
Machines
C. A Job specification
D. Any of the above
D. The employee handbook
301. Provides an efficient and effective frame- 306. Rollio Chocolate is a confectionery busi-
work activities necessary to attain an ob- ness that produces in Australia and dis-
jective tributes their final products to countries in-
A. Information system cluding the United States and the United
B. Physical system Kingdom. Currently, Rollio is facing a
C. System competitors gain more market share in
D. Operations the chocolate industry. Subsequently, the

CEO, Gigabo, is considering moving pro- 310. Tangible factors is the factors which can
duction to Malaysia to help the business be measured in monetary value.
remain competitive.Identify the following

A. True
as either an advantage or disadvantage of
overseas manufacture as a global strategy B. False
for Rollio Chocolate. Overseas manufac- 311. The three most important elements of a
ture may allow for Rollio Chocolate to ac- company’s financial strength are its rev-
cess a larger pool of employees and save enues, profits, and human resources.
on labour costs.
A. true
A. Disadvantage
B. false
B. Advantage
312. The first step in time series analysis is
307. Work measurement techniques include all
A. Draw data on graph
of the following except:
B. Do preliminary regression calculation
A. On the job training
C. Calculate moving average
B. Time study
D. Identify correlated variables
C. Work sampling
D. Predetermined motion-time data sys- 313. A likely benefit of a more innovative
tems product is that it will:
A. Reduce profit margins
308. An operations manager is considering
three different production systems for the B. Lower customer loyalty
following year. System A has a fixed cost C. Increase production costs
of $25, 000 and a variable cost of $15 per D. Enhance product quality
unit. System B has a fixed cost of $15,
000 and a variable cost of $20 per unit. 314. What is the definition of lead time?
The third option is outsourcing, which has
A. The time it takes for a supplier to pro-
a cost of $27 per unit. Which production
vide goods to a customer
system will result in the lowest cost if an-
ticipated volume next year is 2500 units? B. The time it takes for a business to
reach its break-even point
A. System B
C. The time it takes for a business to in-
B. System A crease its productive capacity
C. The manager will be indifferent be- D. The time it takes for a business to ver-
tween System A and System B. tically integrate
D. Outsourcing
315. Total quality management is a commit-
309. Product Layouts ment to excellence that emphasises contin-
uous improvement in all aspects of a busi-
A. Lower space requirements
ness’s operation by sharing responsibility
B. Higher space requirements among all the members of the business.
C. Able to produce a large number of dif- True or False?
ferent products A. False
D. Resources used are general-purpose B. True

316. In continuous production/ mass produc- 322. Mass production is characterized by

tion inventory for raw materials and fin- A. Low volume high variety.
ished product is high and that of WIP parts
is less. B. High volume low variety
A. true 323. What is the minimum number of days

needed to complete the project?
B. false
317. A potential disadvantage of a UK firm
NARAYAN CHANGDER
choosing to offshore a part of the business
is:
A. Shorter lead times
B. Lower distribution costs
C. Loss of intellectual property A. 10
D. Lower unit costs B. 12
318. Details relative locations to show how to C. 17
assemble the product is explain about D. 33
A. Assemble chart
324. Operations research applications in world
B. Assembly drawing war II developed by P.M Blacker & others.
C. Route sheet A. TRUE
D. Work order B. FALSE
319. employee’s knowledge, courtesy, and 325. Which is the formula for calculating
ability to convey trust. Profit?
A. Reliability A. Revenue-Cost
B. Assurance B. Revenue+Costs
C. Tangibles C. Revenue/Cost
D. Empathy D. Revenue X Cost
E. Responsiveness 326. The dominant operation for a bank is:
320. Work study is also recognised as A. Processing complaints
A. Time study B. Processing materials
B. Motion study C. Processing information
C. both ‘a’ and ‘b’ D. Processing customers
D. None of the above 327. is NOT a parameter when you make
products (in-house)
321. Who is the contributor of internet (post
mass production philosophy lean manage- A. Production Costs
ment) B. Monitoring Costs
A. W.E Deming & J. Juran C. Storage Requirements Costs
B. WORMACK, JONES D. Ordering Costs

328. This term refers to machinery and equip- 333. Identify the four key principles of ‘lean
ment that are arranged in a sequence, and management’.
the product is developed as it proceeds

A. Reduce, Reuse, Recycle, Recovery
through each stage.
B. Just in time
A. Computer aided design
C. Pull, One Piece Flow, Takt, Zero De-
B. Robotics fects
C. Artificial intelligence D. Quality assurance, Employee empow-
erment, Continuous improvement, Cus-
D. Automated production lines
tomer focus
329. Is the difference between a product’s 334. Select two problems (for the business)
price and the total cost of the inputs that caused by poor quality.
went into making it. It is the extra worth
A. Product is not fit for purpose.
created in the production process. →
Value added B. Loss of sales.
A. True C. Increased costs due to more wastage.
D. Cheaper for the business
B. False
335. Supply management has a defined set of
330. What does PM stand for? processes, capabilities and recommended
A. Project Manager behaviors for companies that produce
goods and services.
B. Project Master
A. True
C. Project Less
B. False
D. Professional Manager
C. Threat
331. Capacity decisions have a direct influence D. none of above
on performance of production system in re-
336. gives the employee the specified period
spect of
tochange his/her behavior.
A. Delivery performance A. Issuing Verbal Warning
B. Quality control B. Issuing a Written Reprimand
C. Plant size C. Implementing Performance Improve-
D. Manpower ment Plans
D. Issuing a Written Suspension
332. This constitutes the inputs in the Produc- E. Probationary Reprimand
tivity ratio
337. Fixed position layout is adopted when
A. Goods
A. Products are of different variety
B. Material
B. Product is very heavy involving assem-
C. Labor bly of large number of parts
D. Services C. Products are in large numbers
E. Capital D. All of the above

338. The primary reason that governments de- C. Can be stored

velop workplace health and safety regula-
D. easy t o measure quality
tions is to:
A. protect employees from injury and ill- 343. Product Layouts
ness.
A. Resources used are specialized
B. reduce the risk of employment discrim-
ination. B. Resources used are general-purpose
NARAYAN CHANGDER
C. ensure that employees have access to C. Facilities are more labor intensive
insurance.
D. Greater flexibility relative to the mar-
D. prevent the breach of business infor- ket
mation systems.
344. A business reduces unit/average costs
339. Apple Company has established 400 Ap-
by investing significantly in automation of
ple distinguished schools in 29 countries all
its production process. This is an example
over the world to promote leadership and
of a:
educational excellence that demonstrates
Apple’s vision for learning with technol- A. External economy of scale
ogy.
B. Technical economy of scale
A. Commitment
C. Purchasing economy of scale
B. Leadership
C. Facilitation D. Marketing economy of scale
D. none of above 345. An organizational strategy focusing on

340. Which factor of production refers to in- efforts to develop new products and de-
puts in the production process of manufac- liver them to customers faster than com-
turing goods and/or providing services? petitors.
A. Capital A. Global marketplace

B. Resources B. Business-to-business
C. Land C. Time-based competition
D. Labour D. none of above
341. What is a common challenge in operations
management related to low productivity? 346. “What is the primary purpose of measur-
ing the failure rate?”
A. Effective communication and coordina-
tion A. To determine the degree to which the
operation is ready to work
B. Efficient risk management
C. Effective allocation of resources B. To calculate the reliability of the whole
system
D. Overwhelming number of tasks
C. To measure the probability of a system
342. What is NOT characteristics of goods? performing as expected over time
A. Low interaction with customers D. To relate parts of the system to the sys-
B. Intangible tem

347. One way a business can reduce the risk of 352. Operations managers do not try to im-
accidents in the workplace is by providing prove the process to create the best prod-
its employees with: uct.

A. safety training. A. True
B. electronic data interchange (EDI). B. False
C. supply manuals. 353. JIC means
D. weight-loss programs. A. Just in time
B. Just in case
348. What is the purpose of updating stock
records? C. Joined instruction time
A. To track changes in stock position and D. Join in case
status
354. Design for Disassembly (DFD) is;
B. To cope with transportation delays
A. process that allows for the easy recov-
C. To compensate for unexpected fluctu- ery of products, parts and materials.
ations in supply and demand B. process that allows for the easy pas-
D. To monitor inventory control perfor- sage of materials
mance C. process that allows for the easy dis-
posal of materials
349. Which of the following is a benefit of us-
ing technology in production? D. None of the above
A. Lower production costs 355. It is the total cash and non-cash pay-
ments that you give to an employees in
B. Increased production capacity
exchange for the work they do for your
C. Improved quality control business.
D. All of the above A. Hiring
B. Promotion
350. Economic order quantity is the optimal
value of order size and it’s calculated when C. Compensation
total cost of inventory D. Evaluation and Management
A. Maximum
356. Identify a strength and a weakness of
B. Minimum quality assurance. (2)
C. Zero A. Proactive
D. None of the above B. Reactive
C. More expensive compared to other
351. Select the option for ERP quality measures
A. Enterprise Resource Planning D. Quick to do
B. Entrepreneur Resource Plan
357. Service is an economic activity whose out-
C. Emergency Resource Planning put is
D. Equality Resource Payment A. Intangible

B. Tangible D. The quantity of inventory held is at

C. Both a & b least 2x monthly sales
D. None of the above 363. It measures the way customers perceive

the quality of service experiences in five
358. Which from the following is not a quanti-
categories.
tative approach of demand forecasting?
A. Simple moving average
NARAYAN CHANGDER
B. Weighted moving average
Data
C. Grass-root forecast
C. Comment Cards
D. Exponential smoothing
D. SERVQUAL
359. Which of the following statements about
Quality Control and Quality Assurance is 364. What is copyright?
correct? A. An international law that protects
A. Quality Control is reactive whereas artists.
Quality Assurance is proactive
B. Legal protection provided to the au-
B. Both are reactive thors of “original works of authorship.
C. Both are proactive C. A law that give the public the right to
D. Quality Control is proactive whereas use music.
Quality Assurance is reactive D. Licensing that protects consumers
who purchase music and other works.
360. In RFP, P Stands for
A. Purchase 365. Which option is right out of the following:
B. Procurement A. H3 is Pareto dominated by H2
C. Price B. H2 is Pareto dominated by H3
D. Proposal C. H1 is Pareto dominated by H4
361. Batch production is common in the food D. H4 is Pareto dominated by H1
processing industry, and in industries in-
volving undifferentiated materials such as 366. In quantitative technique of forecasting,
petroleum and chemicals. you do not need to prepare dataset
A. TRUE A. True
B. FALSE B. False
362. The overall objective of inventory control 367. In government incentives, it is important
is to maintain inventory levels so that: for government to give a subsidies such as
A. The total value of inventories is financial aid to the producers to that they
enough to meet demand can build a company near to the location
that they want.
B. The total cost of holding inventories is
minimised A. True
C. Stock reorder levels are not activated B. False

368. One of marketing department job is to as- 373. From the following options, the one that
sessing customer wants and needs. does NOT include a form of transformation
is

A. True
A. Informasi
B. False
B. Price
369. Quality system standards adopted by the
C. Exchange
International Organization for Standard-
ization in 1987; revised in 1994 and 2000 D. Physique
with minor updates in other years, is also
know as 374. Define variable costs.
A. ISO 9000:2000 A. Also known as overhead costs, are
costs that do not vary with the number of
B. Six Sigma
items produced or sold.
C. Baldrige Program
B. costs that change directly with the
D. Theory of Knowledge number of items produced or sold.
C. refer to the sum of fixed and variable
370. Type of waste which the effort involved
costs in production.
in inspecting for and fixing defects.
D. calculated by dividing total cost of pro-
A. Transport
duction by total output.
B. Waiting
375. A strategy is
C. Defects
A. an action plan to achieve a mission.
D. Inventory
B. the goal that is to be achieved.
371. Service processes usually have:
C. the purpose for which an organization
A. physical, durable output. is established.
B. low levels of customer contact. D. a functional area of the firm.
C. output that can be inventoried.
376. The layout planning and the position-
D. low levels of capital intensity. ing of the machines must be designed to
achieve efficient process flow, safe oper-
372. What is quality control and when does it ations, effective and convenient process
occur in the production process? control, and easy supervision
A. to producing goods or services that A. True
meet or exceed customer expectations.
B. False
B. process of checking for quality at the
end of production using inspectors. 377. Lean production can also be called
C. checking for quality standards A. waste management
throughout the production process by em-
B. flexible manufacturing
ployees.
C. Lean manufacturing
D. the level of sales at which total costs
equal total revenue. D. none of above

378. Combining authoritative and democratic 383. the ratio of outputs to inputs during pro-
management styles is called manage- duction
ment. A. production
A. mixed B. level of production
B. democratic C. productivity
C. autocratic D. none of above
D. Let it happen
NARAYAN CHANGDER
384. Which of these layout types is most as-
sociated with a mass process?
379. Right person at right time with right
skills is the objective of A. Fixed position layout
A. Capacity planning B. Process layout

C. Product layout
B. Inventory planning
D. Cell layout
C. Workforce planning
D. Production planning 385. Only emerging technologies can impact
how you do business.
380. A concept known as means tailoring A. True
products to meet the needs of individual
B. False
customers.
A. Select Customization 386. A weighted moving average forecast-
ing technique in which data points are
B. Specialized Production weighted by an exponential function
C. Mass Production A. Smoothing constant
D. Mass Customization B. Exponential smoothing
381. What is:the income during a period of C. Naive Approach

time from the sale of goods and services D. Time Series
A. Revenue 387. A is a resource that is less capable,
B. Total Revenue Formula ofincreasing its throughput over the given
time period, than otherparts of the opera-
C. Break-Even Point tion.
D. Contribution A. bottle neck
382. Which is a example of a short-term objec- B. capacity constraints

tive? C. capacity defficciency
A. becoming president of a large corpora- D. capacity overload
tion
388. The list of quantities of components, in-
B. paying off a twenty-five-year mortgage gredients, and materials required to pro-
C. finishing a six-week computer soft- duce a product is the
ware course A. Purchase Order.
D. becoming fluent in a foreign language B. Bill of Materials.

C. Master Schedule. B. It focuses on financial planning

D. none of above C. It affects all areas of the business

389. The process of turning plans into realities D. It deals with marketing strategies
by assigning specific responsibilities to em-
ployees 393. Which is not included to controllable fac-
tors that influence productivity?
A. PLANNING and establishing goals or
obectives A. Product Factor
B. DIRECTING or motivating people to at- B. Plant and Equipment
tain those goals C. Government and Infrastructure
C. CONTROLLING the performance or D. Technology
comparing actual progress with planned
performance 394. challenges for service manager includes
D. ORGANIZING resources and staffing A. Managing multiple customers
390. Buffer stock is the level of stock B. No innovations
A. Minimum stock below which actual C. No operational improvements
stock should not fall
D. All the above
B. Maximum stock above which actual
stock should not go 395. Ishikawa Diagram is a cause-and-effect
C. Stock according to requirement diagram.
D. Stock which is there in inventory A. True

B. False
391. On the cost-volume analysis chart where
the costs of two ormore location alter- 396. Through scientific management John Ken-
natives have been plotted, the quantity neth Galbraith sought to increase worker
atwhich two cost curves cross is the quan- productivity and organizational output.
tity at which:
A. True
A. fixed costs are equal for two alterna-
tive locations. B. False
B. variable costs are equal for two alter-
397. Which of the following best describes the
native locations.
concept of Kaizen in operations manage-
C. total costs are equal for all alternative ment?
locations.
A. A one-time improvement in production
D. fixed costs equal variable costs for one processes
location.
B. A Japanese production technique in-
E. total costs are equal for two alterna- volving robots
tive locations.
C. A continuous improvement approach
392. What is the importance of operations to production processes
management in business? D. An approach to quality control that
A. It affects only the operations function only focuses on finished products

398. The quality definition based on value is B. statistical quality control

a relationship benefits is a product and its C. assembly line operations
price.
D. scientific management
A. Product perspective
E. time and motion studies
B. Users perspective
C. Manufacturing perspective 403. Cost estimating technique based on esti-
mating individual work items and summing
D. Value perspective
them to get a project total called?
NARAYAN CHANGDER
399. What is the definition of obsolescence? A. Parametric Estimate
A. The loss of value or need for an object, B. Definitive Estimate
service, or practice
C. Bottom-Up Estimates
B. The establishment and use of proce-
dures to prevent product problems D. Similar Appraisers
C. The regular meetings of employees to 404. A business reported the follow-

discuss workplace issues ing:Net income after taxes:$25, 000Net
D. The approach to quality control that re- sales:$200, 000 Find the net-profit-on-
lies on continuous improvement sales ratio.
A. 12.5 percent 12.5%
400. What is the ultimate effect of inadequate
production capacity? B. 14.5 percent 14.5%
A. Poor planning C. 24.5 percent 24.5%
B. Poor implementation D. 20.5 percent 20.5%
C. Poor quality 405. An inventory lead-time is the:
D. Poor customer delight A. The maximum level of inventory a busi-
ness can or wants to hold
401. How many states are there in Malaysia?
x
y x
2 ⌊x⌋ B. The time taken to process outstanding
sales orders
C. Amount of time between placing an or-
der with the supplier and receiving the in-
ventory
D. The average delay in handling cus-
tomer orders
A. A
⌈x⌉
406. What is the primary benefit of imple-
B. y menting a Just-in-Time (JIT) system in
C. C manufacturing?
D. D A. Increased production costs
B. Increased inventory holding costs
402. Henry Ford is noted for his contributions
to C. Increased lead times
A. standardization of parts D. Reduced inventory holding costs

407. Development that meets the economic 412. Business to business service includes
needs of present and future generations
A. Internal services

B. Public services
C. Consultancy services
D. Retail
413. It is also called a sensory robot, is ca-

A. Economic development pable of performing some of the functions
B. Economic sustainability and tasks carried out by humans.
C. Sustainable development A. Intelligent Robot
D. Social sustainability B. Playback Robot
408. *Developing a corporate strategy in- C. Numerically Controlled Robot
volves three considerations:1.Monitoring
D. Fixed-sequence and Variable-
and adapting to the environ-
sequence Robots
ment2.Identifying and developing core
competencies3.Developing the firm’s core 414. Process Layouts
processes
A. Resources used are general-purpose
A. True
B. Resources used are specialized
B. False
C. Facilities are more capital intensive
409. A disadvantage of flow production
D. Low flexibility relative to the market
A. high unit production costs
B. high levels of stocks at each produc- 415. Which of this process is not Deming Chain
tion stage Reaction?
C. expensive to set up flow-line machin- A. Improve Quality
ery
B. Increase Cost
D. wide range of tolls needed
C. Improve Productivity
410. It performs a stellar role in the develop-
D. Stay in Business
ment of the product
Explanation:One of the Deming Chain Re-
A. Operations action is decreasing cost not increasing
B. Production planning cost.
C. Process planning 416. What is sequencing in the context of op-
D. Product planning erations?
411. Maintaining an inventory of supplies A. The order of tasks to be done in chain
helps a business to: B. The order of tasks to be done randomly
A. establish sales goals
C. The order of tasks to be done in re-
B. operate efficiently verse
C. locate vendors D. The order of tasks to be done simulta-
D. evaluate processes neously

417. defines the overall philosophy of an C. limited edition glasses

organization D. making glass sheets
A. Mission
423. Process Focus is a product oriented pro-
B. Vision duction process that uses modules.
C. Values A. True
D. All the above B. False
418. In operations, what does TQM stand for?
NARAYAN CHANGDER
424. As managers seek sustainability, they
A. Total Quantity Management should realize that there are onlythree
things that can be done with waste:reduce,
B. Total Quality Management
reuse, recycle.
C. Theoretical Quality Matrix
A. Recycle
D. Timely Quality Measurement
B. Feasibility
419. Identify which of the following improve- C. Vulnerability
ments in efficiency or effectiveness relates
D. Resources
to each technological strategy.Increases
the speed of the production process. 425. Logistics is an integral part of supply
A. Automated production lines chain management. Which explanation
best represents outbound logistics?
B. CAD
A. An emphasis on using the supply chain
C. CAM
to deliver value to customers who are ac-
D. Website development tively involved in product and service spec-
ification
420. A specialised area in management that
converts or transforms resources (includ- B. The management of resources sup-
ing human resources) into goods and ser- plied from an organisation to its cus-
vices. tomers and intermediaries
A. Social sustainability C. The management of material re-
sources entering an organisation from
B. Production process
its suppliers and other partners
C. Economic sustainability D. A supply chain that emphasises distri-
D. Operations management bution of a product to passive customers
421. Which is NOT a type of production sys- 426. Which of the following statements about
tem a process flow chart is incorrect?
A. Taylorism A. Based on the process flow chart, one
B. Positivism can plan, design and specify the various
requirements, such as material, equip-
C. Fordism ment and manpower needed for each ac-
D. Lean Production tivity.
422. Batch production is useful for making B. The overall production capacity or
throughput will have to be planned by mak-
A. metal screws ing sure that all activities on the process
B. electricity at power station flow chart has almost the same capacity,

without any activity becoming a bottleneck B. Material Management

to production. C. Store Management

C. The space and layout plan can be D. Inventory Management
planned based on the process flow chart.
D. One can calculate the product unit cost 431. Which kind of labour force is required in
from the process flow chart case of Jobbing Production?
A. Highly skilled
427. In six sigma, the improvement system
used to develop new process or products B. Semi skilled
also known as C. Unskilled
A. Define, measure, analyze, design and D. none of above
verify
432. (a) This forecast has a time span of gen-
B. Define, measure, analyze, improve,
erally less than three months but up to one
control
year.
428. What is the definition of competency ac- A. a Short-Term Forecasting
cording to the report?
B. Long-Term Forecasting
A. The demonstrated ability to manage
C. Medium-Term Forecasting
resources efficiently
D. none of above
B. The demonstrated ability to apply
knowledge and skills 433. How can a business achieve cost leader-
C. The demonstrated ability to maintain ship through economies of scale?
infrastructure effectively A. By buying inputs at a higher cost per
D. The demonstrated ability to enhance unit
customer satisfaction B. By reducing the quantity of inputs pur-
chased
429. Tim has a beginning inventory worth
$500, 000 in his computer software store C. By increasing the price of the final
and expects to sell $900, 000 over a pe- product
riod of six months. He wants to have D. By buying inputs at a lower cost per
$400, 000 of inventory at the end of unit
the six-month period. Calculate the dol-
lar amount of purchases Tim will need to 434. What is the main objective of Lean Oper-
make over the next six months. ating System?
A. $800, 000 A. Increase waste
B. $400, 000 B. Reduce cost
C. $900, 000 C. Slow down response
D. $500, 000 D. Improve quality
430. is concerned with ensuring that all the 435. Which of the following is not a fac-
activities in store keeping are carried out tor affecting location decisions for a re-
efficiently and economically tail/service business
A. Purchase Management A. Proximity Customers

B. Cost 441. means causing undue sensitiveness of an

C. Infrastructure organ or part of the body
D. Store Design A. Hazardous

B. Dust
436. It refers to the part of management con-
cerned with the production and delivery of C. Irritating
goods and services. D. Fumes
A. Production
NARAYAN CHANGDER
442. Legal entities that make money for rea-
B. Operation sons other than the owner’s profit
437. Production Management starts with A. s-corporation
A. Aggregate planning B. c-corporation
B. Average planning C. non-profit organization
C. Strategy formulation D. franchise
D. None of the above 443. 1) A firm that targets a market segment

of budget-conscious customers is likely to
438. Process Layouts:Select Two sacrifice some to get a better
A. Facilities are more labor intensive A. consumption utility, price
B. Greater flexibility relative to the mar- B. performance, fit
ket
C. timing, location
C. Facilities are more capital intensive
D. location, utility
D. Low flexibility relative to the market
444. The term ‘flow production’ is sometimes
439. Goods held on consignment are used as a synonym for ‘mass production’
A. never owned by the consignee. True or False
B. included in the consignee’s ending in- A. True
ventory. B. False
C. kept for sale on the premises of the
consignor. 445. What are the characteristics to determine
inventory levels
D. included as part of no one’s ending in-
ventory. A. Lead time
B. Order quantity
440. They bypass the team issue by not sub-
dividing intoorganizations into research C. Reorder point
and development, engineering, production, D. All of above
and soforth.
446. Which of the following explain the need
A. Use of teams for facility location selection?
B. Organization with distinct depart- A. When the existing business unit has
ments outgrown its original facilities and expan-
C. Understanding the customer sion is not possible.
D. Japanese Approach B. When a business is newly started.

C. When the lease expires and the land- 451. In Quality Culture, the organization is
lord does not renew the lease. customer-focused.

D. All of these. A. True
B. False
447. Which production and operations man-
agement theory says that a business has a 452. Competing on differentiation is
responsibility to do good for the society?
A. based upon low-cost leadership.
A. Business Management Theory
B. concerned with reliability of schedul-
B. Corporate Citizenship Theory ing.
C. Maximizing Profits Theory C. concerned with uniqueness.
D. Stakeholder Interest Theory D. based on flexibility.
448. Which of the following statements about 453. Operations and Supply Chain Manage-
inventory management is incorrect? ment have the following sequence of ac-
tivities:Planning → Designing → Sourcing
A. Adequate inventory helps en- → Making → Delivering → Returning.
trepreneurs to meet market demand
A. cheap
B. Inadequate inventory will cause dis-
ruption to operations and incur missed B. wrong
sales opportunities.
454. Materials are trucked to a central inspec-
C. Too much inventory means high invention crib, where they are left to be in-
tory costs and reduced business profit. spected.
D. Inventory does not involve business A. Inspecting Purchased Items
capital. B. Central Inspection
449. It is the management of systems and pro- C. Inspecting Work in Process
cesses that convert or transform resources D. Floor Inspection
into goods and services.
455. An assembly line has a total of 8 hours
A. Production
available timein a shift. The employees
B. Production Management working the shifts have a halfhour lunch
C. Operations Management break and two fifteen minute tea break-
seach shift. The machines also require ten
D. Transformation Process minutes pershift in basic maintenance. At
the start of each workingday, the supervi-
450. Capacity can affect competitiveness. If sor spends ten minutes talking to thestaff
a company has excess capacity, or can and setting goals for the shift ahead. Cal-
quickly add capacity, that fact may serve culate the available time to work for the
as a barrier to entry of other companies. line andTakt time for 100 units per day
Then, capacity can affect delivery speed,
which can be a competitive advantage. A. 8 minutes
True or False B. 6 minutes
A. True C. 4 minutes
B. False D. 2 minutes

456. It is the emotional association guests 460. When a minimum of inventory is kept
have when they participate in the journey. on the premises, and parts, supplies, and
other needs are delivered just in time to go
A. ambience
on the assembly line, the company is using
B. mood
C. emotions A. first in first out inventory
D. none of the above B. flexible inventory control
C. last second inventory control
NARAYAN CHANGDER
457. Factors influencing selection of Material
Handling Equipments? D. just in time inventory control
A. Properties of materialLayout and char- 461. A bar graph showing production man-
acteristics of buildingProduction Flow- agers what projects are being worked on
Cost ConsiderationNature of operatio- and what stage they are in at any given
nEngineering FactorsEquipment Reliabil- time is called a
ity A. gantt chart
B. Properties of materialLayout and char- B. PERT
acteristics of buildingProduction Flow- C. ISO 9000
Business OperationEngineering FactorsE-
quipment Reliability D. Six Sigma Quality
C. Layout and characteristics of build- 462. One way a business can reduce the risk of
ingProduction FlowCost ConsiderationNa- accidents in the workplace is by providing
ture of operationEngineering FactorsE- its employees with:
quipment Reliability A. safety training
D. Layout and characteristics of building- B. electronic data interchange (EDI)
Production FlowCost ConsiderationEngi- C. supply manuals
neering FactorsIndustry
D. weight-loss programs
458. Which of the following is the correct 463. There are 2 methods of production
statement about operations management
in the primary sector? A. True
B. False
A. It includes fishing, forestry and min-
ing. 464. The human resource department is re-
B. It includes car manufacturing using au- sponsible for the health and safety of the
tomated production processes. GUESTS.
C. It includes business consultancy ser- A. True

vices. B. False
D. It includes tourism and hospitality. 465. Identify whether the following character-
istics of operations relate to a manufactur-
459. It includes choosing a location for the ing and/or service business. Labour inten-
business and scheduling production. sive processes.
A. Planning A. Service
B. Scheduling B. Manufacturing

466. B2B stands for 470. Which of the following location costs
A. Build to Build would be variable in nature?

B. Business to Bankruptcy A. Security and costs
C. Business to Business B. Rent and rates

C. Turnover based rent on the shop
D. Business to Brokerage
D. Office and warehouse insurance
467. Value engineering approach is applied
for: 471. In which month would this business begin
manufacturing the item?
A. Process development
B. Quality improvement
C. Product development
468. Which Lean tool is used for visually rep-

resenting the flow of material and infor-
mation? A. January
A. Value Stream Mapping B. February
B. Work Cells/Cellular Manufacturing C. March
C. Total Productive Maintenance D. April
D. Error Proofing/Poka-Yoke 472. Conversion of inputs into outputs is

known as
469. Operations management refers to
A. Application of technology
A. The effective management of the pro-
B. Operations management
cess of transforming inputs into outputs
and maximising the efficiency and effec- C. Manufacturing products
tiveness of the production process to D. Product
meet business objectives.
473. What are your favorite colors?
B. The effective management of the pro-
cess of transforming new staff into ex- A. Blue
perts and maximising the efficiency and B. Red
effectiveness of the production process to
C. Purple
meet business objectives.
D. Black
C. The effective management of the pro-
cess of transforming a service and max- 474. Pharmally official who testified admit-
imising the efficiency and effectiveness of ting that they changed the expiration
the production process to meet business dates of PPEs and other medical supplies
objectives. and equipment delivered to PS-DBM
D. The effective management of the pro- A. Dry
cess of transforming the butterfly to the B. Mendoza
penguin maximising the efficiency and ef-
fectiveness of the production process to C. Ong
meet business objectives. D. Huang

475. It is the stock held by a company in ex- 480. “In the short run, using more labour in-
cess of its requirement for the lead time. stead of making more capital investment
A. Finished goods will reduce unemployment. However, it
also affects productivity in the long run.
B. Maintaining goods Capital investment is often necessary, s
C. Inventory stock most of the process are automated”Is the
statement correct?
D. Safety stock
A. True
NARAYAN CHANGDER
476. Which of the following is a necessary con- B. False
dition for flow production?
C. Not sure
A. large numbers of specialist workers
D. none of above
B. high and steady demand for a stan-
dardised product 481. He was the author of Quality Trilogy
C. machinery that can be adapted for pro- A. Dr. E. Deming
duction if demand fell B. Joseph Duran
D. high demand for the product only at C. Philip Crosby
certain times D. A.V. Fig tree
477. (a) Extra inventory held in case of emer- 482. Define needs in the context of operations
gency. management.
A. a Safety Stock A. The resources or materials required
B. Par Stock for the operations of a business.
B. Requirements or demands of cus-
C. Reserved Stock
tomers or stakeholders that must be met
D. none of above by the operations of a business.
478. Corporate Social Responsibility can be im- C. The goals or objectives set by the op-
plemented into the three key elements (In- erations management team.
puts, process, outputs) of operations? D. Tasks or activities that need to be com-
A. False pleted by the operations team.
B. True 483. One business decision is whether to buy

a product or make it in-house.The formula
479. What does the term “revenue” refer to for Cost-to-Buy = P X Q
in a business context?
A. True
A. factors that lead to a reduction in aver- B. False
age costs as a business grows in size.
484. If a Toyota car plant produces 500 cars
B. factors that lead to an increase in av-
per hour with 1000 employees, then the
erage costs as a business becomes too
labour productivity is
large.
A. 5 cars per hour per employee
C. the level of sales at which total costs
equal total revenue. B. 50 cars per hour per employee
D. the income generated from the sale of C. 0.5 cars per hour per employee
goods or services during a specific period. D. 500 cars per hour per employee

485. Which is the fastest growing economy in A. Slat

the service sector? B. Flap

A. China C. Winglets
B. America D. Aileron
C. Australia
491. The following are categories of vendors
D. India except
486. Which operations process uses a Gantt A. retailers
chart? B. wholesale traders
A. Customisation C. marketers
B. Input D. commission agents
C. Output E. advisory support
D. Transformation
492. Which of the following does NOT support
487. The is the defect level for which lots the retail layoutobjective of maximizing
are regarded as bad lots. customer exposure to products?
A. Acceptable quality level A. Locate high-draw items around the pe-
B. Consumer’s risk riphery of the store.
C. Producer’s risk B. Use prominent locations for high-

impulse and high-margin items.
D. Lot Tolerance Percentage Defective
C. Maximize exposure to expensive
488. Which of the following is a key compo- items.
nent of Lean Manufacturing? D. Use end-aisle locations.
A. Increasing inventory levels E. Convey the store’s mission with the
B. Minimizing waste careful positioning of the lead-off depart-
C. Focusing on individual performance ment.
D. Using multiple suppliers for the same 493. The totality of characteristics of an entity
component that bear on its ability to satisfy stated
and implied need.
489. Which two strategies related to technol-
ogy developments does Mr Patrick think A. Quality
students struggle with the most? B. Quality Management System
A. Automated production lines C. Traditional Approach
B. CAD D. Total Quality Management
C. CAM 494. “The continuous process of measuring
D. Website development products, services and practices against
the company’s toughest competitors in the
490. Part of the wings used in modern airlines industry”.
to reduce drag (the force that opposes an
aircraft’s motion through the air) located A. Taguchi concept
on the wing’s tips. B. Just in time

C. Six sigma B. Slat

D. Benchmarking C. Flap
495. An economy in which more effort is de- D. Winglets

voted to the production of services than 500. OM provides a major opportunity for an
to the production of goods is called: organization to improve profitability and
A. Mixed Economy enhance its service to society.
B. Service Economy A. TRUE
NARAYAN CHANGDER
C. Capitalism B. FALSE
D. Command Economies 501. ISO 9004
496. When a manufacturer develops an inno- A. Provides guidelines for establishing a
vative product and then identifies a suit- quality management system. It focuses
able target market and distribution chan- not only on meeting customer require-
nel. This is an example of: ments but also on improving performance
A. Push model of SCM B. A set of international standards and a
B. Value chain
vironmental responsibility
C. Value stream
C. A set of international Standards devel-
D. Pull model of SCM oped to help organizations evaluate and
address their social responsibility
497. It is also known as the Seven Ps-
proposed by Booms and Bitner (1981) of- D. Provides the terminology and defini-
fers a holistic set of seven elements to con- tions used in the standards. It is the start-
sider when evaluating service offerings. ing point for understanding the system of
standards
A. marketing mix
B. service marketing mix 502. A means of finding the point, in dol-
lar/peso and units, at which costs equal
C. market mix revenues.
D. none of the above A. Break-Even Analysis
498. Materials management is not a science B. Value Chain Analysis
and depending upon the relevance and im- C. Capacity Analysis
portance that company officials place upon
controlling material flow, the level of ex- D. Profit Analysis
pertise changes.
503. Sum of all activities performed in an orga-
A. true nization to produce and maintain a product
B. false with desired quality level against minimum
cost
499. This is located beneath the wing and pro- A. quality audit
vides the thrust to overcome drag and
pushes the airplane forward through the B. quality control
air. C. quality management
A. Turbine Engine D. quality assurance

504. It refers to experiences that provide emo- B. Principles

tional stimulation of an artistic or philo- C. Practices
sophical nature.

D. none of above
A. Pathetic
510. If, to inspect an item a person has to do
B. Esthetic
more than just look at it or measure it, it is
C. Ambient usually called rather than inspecting.
D. None of the above A. Production
505. The transformation process types for B. Quality Service
manufacturers and service providers are C. Inspection
both based on the variety and volume of
D. Testing
outputs.
A. True. 511. The three P’s associated with CSR (Cor-
porate Social Responsibility) are:
B. False.
A. Profit
506. Design of products and design of pro- B. Personnel
cesses are two different things and must
be treated separately. C. People
D. Promotion
A. True
E. Planet
B. False
512. is a dynamic state associated with
507. Consumer Surveys
products, services, people, processes,
A. Salespeople who have continual con- and environments that meets or exceeds
tact with customers is questioned indi- expectationsand helps produce superior
vidually about their perceptions of future value.
sales A. Quality
B. a panel of experts is questioned indi- B. Quantity
vidually about their perceptions of future
events C. Management Quality
C. The company conduct their own mar- D. TQM

ket surveys 513. On going & Day to day decisions in oper-
D. none of above ations
A. Strategic Decisions
508. *Outsourcing-transferring products that
traditionally been internal to external sup- B. Controlling Decisions
pliers C. Operating Decisions
A. True D. None of the
B. False
514. Benefits are a key part of the overall com-
509. Are tools and approaches that help man- pensation package that is offered to em-
agers and workers make the practice ef- ployees.
fective. A. True
A. Techniques B. False

515. Which of the following is a principle of 520. In the context of capacity planning, ‘lead
LEAN management time’ refers to:
A. rate A. The time it takes to send products to
B. one-piece flow customers
C. zero defects B. The time required to produce one unit
of product
D. pull
C. The time required from ordering to de-
516. The five elements in the management pro-
NARAYAN CHANGDER
livery of raw materials
cess are
D. The time period between a customer
A. plan, direct, update, lead, and super- ordering a product and delivery
vise
B. accounting/finance, marketing, opera- 521. Operations management is described
tions, and management what process?
C. organize, plan, control, staff, and man- A. Technological
age B. Transitional
D. plan, organize, staff, lead, and control C. Transformational
517. As a Project Manager you finalize the list D. Transactional
of Stakeholders, Which Process Group you Explanation:Operations management is
are working in? concerned with transforming inputs (such
A. Executing as land, labour and capital) into outputs.
B. Monitoring & controlling 522. Is the accomplishment of desired objec-
C. Initiating tives by establishing an environment fa-
vorable to performance by people operat-
D. Planning
ing in organized groups
518. Details required skills, abilities, educa- A. Managing
tion, and experience for a position
B. Emphasis
A. Job Specification
C. Planning
B. Job Description
D. Management
C. Management
D. Staff 523. Quality control is a proactive measure.
519. The role of operations manager, is how- A. True

ever, wider than just ensuring the produc- B. False
tion is correctly planned or executed; oper-
ations managers also have to take several 524. What is the main purpose of failure anal-
other factors into account. These factors ysis?
falls into three categories: A. To identify and analyze the causes of
A. political, economical, social failure
B. social, economical, technological B. To investigate accidents
C. economical, social, ecological C. To analyze product liability
D. none of above D. To conduct complaint analysis

525. What is quality assurance? B. Electronic Funds Transfer at Point of

A. 1. A process of ensuring that a product Sale (EFTPOS)

meets a certain level of quality C. Quality Control
B. 2. A process of preventing defects in D. Quality Assurance
the production process
531. 1) The set of products or services cus-
C. 3. A process of continuously improving tomers want is called A) demandB)
product quality bundleC) supplyD) value
D. 4. A process of ensuring that products A. A
are produced efficiently
B. B
526. One of the product examples for Line lay- C. C
out is:
D. D
A. Repair workshop
B. Welding shop 532. Large companies typically produce a
greater variety of products, have multiple
C. Engineering college location sites, and often use domestic and
D. Cement international suppliers.
527. Which type of supply chain is generally A. True

used for low margin products with highly B. False
predictable demand?
533. It determines the production capacity
A. An efficient supply chain needed by an organization to meet chang-
B. A predictable supply chain ing demands for its product.
C. A responsive supply chain A. Advance Planning System
D. A continuous supply chain B. Production Planning
528. (a) It consists of the appearance of facili- C. Capacity Planning

ties, equipment, personnel, and any other D. Material Requirements Planning
physical representation of the service.
534. Which of these is not a type of Automa-
A. to Tangibles tion?
B. Intangibles A. Numerically Controlled Machines
529. By the time foreign firms had recovered (NCs)
from WWII, many U.S. firms found them- B. Industrial Robots
selves unable to compete. C. Just In Time Systems (JIT)
A. True D. Computer Aided Manufacturing (CAM)
B. False
535. Fixed cost + Total variable cost =?
530. What is:where the electronic cash regis- A. Total costs
ter is connected to the retailer’s main com-
puter and also to banks over a wide area B. Profit
computer network. C. Average costs
A. Electronic Point of Sale (EPOS) D. Opportunity cost

536. Which of the following is an example of B. strategicdecisions

an external economy of scale?
C. operations management decisions
A. Shared infrastructure
D. none of above
B. Marketing economies
C. Economies of large dimensions 542. The resources necessary to make the
good or service
D. Purchasing economies
A. Inputs
NARAYAN CHANGDER
537. What is:where computers monitor the
B. Processes
production process and control machines or
robots on the factory floor C. Outputs
A. Automation D. none of above
B. Mechanisation
543. Employee opinions are valued, but deci-
C. Computer Aided Design (CAD) sions are made by one person
D. Computer Aided Manufacture (CAM) A. Consulting Style
538. Reasons to Globalize EXCEPT B. Laissez-Faire Style
A. 1.Improve the supply chain C. Democratic Style
B. 2.Reduce costs (labor, taxes, tariffs, D. Autocratic Style
etc.)
C. 3.Improve operations 544. What is the reason of excessive friction
between parts?
D. 4.Understand competitors
A. Improper or lack of lubrication
539. A set of skills, talents, and activities in B. Material of parts
which a firm is particularly strong
C. both (A) and (B)
A. Key Success Factors
D. None of above
B. Core Competencies
C. Competitive Advantage 545. According to the principles of lean man-
D. none of above agement, waste is anything that reduces
the speed of production or stops produc-
540. Which of these are CSR considerations for tion occurring at the lowest possible cost.
Operations Managers? (tick all that ap- True or False
ply)
A. False
A. Generating a profit for the business
B. True
B. Reducing wastage in production
C. Using recyclable packaging 546. What is a paper inventory record for a
single item?
D. Increasing market share
A. cash card
541. These decisions focus on more specific
B. stock card
day-to-day issues, such as the quantities
and timing of specific resources. C. budget card
A. tactical decisions D. balance card

547. A warehouse layout is characteristic of 552. What is:the checking for quality at the
intermittent operations which serve differ- end of the production process, whether it
ent customers with different needs. is the production of a product or service

A. Yes A. Electronic Point of Sale (EPOS)
B. No B. Electronic Funds Transfer at Point of
Sale (EFTPOS)
548. In ABC Analysis, C Class items have Con-
sumption Value of what percentage? C. Quality Control
D. Quality Assurance
A. 10%
B. 20% 553. TQM philosophy Process management
C. 70% A. Quality should be built into the pro-
cess; sources of quality problems should
D. 30%
be identified and corrected.
549. What is not quality measures? B. Quality concepts must extend to a com-
A. Reliability pany’s suppliers
B. Customer satisfaction C. Main Idea
C. Consistency D. Goal is to identify and meet customer
needs
D. Location
554. A right location provides adequate access
550. Which of the following are generally to customers, skilled labors, transporta-
likely to increase if a company deploys au- tion, etc. A right location ensures success
tomation? (Pick the TWO that apply) of the organization in current global com-
A. Cost petitive environment.
B. Productivity A. TRUE
C. Precision B. FALSE
D. Hazard 555. What does productivity mean?
E. Employment of human labour A. productivity is how products are made
551. A way of mapping products based on B. productivity is a measure of how many
workers a business has
C. productivity measures efficiency
D. productivity measures effectiveness
556. Refers to an organization’s attempts to

put in place procedures to deal with a cri-
sis, anticipating it through scenario plan-
ning.
A. Brand value A. Contingency planning
B. Quality B. Crisis management
C. Price C. Industrial advertising
D. Quality and Price D. Public relations plan

557. The objective of Center of Gravity Tech- 562. What is the main disadvantage of CAM?
nique is to determine the quantity to be
A. Very expensive
produced and the firm know at which point
it can start making profit. B. Unreliable accuracy
A. True
C. Parts look unfinished
B. False
D. Takes up too much space
558. In which of the following circum-
NARAYAN CHANGDER
stances would a business be experiencing 563. The forecasting process predicts demand
economies of scale? and the use of products and services so
A. Output rising and average/unit costs that the right quantities are ordered in ad-
falling vance.
B. Output falling and average/unit costs A. True
falling
B. False
C. Output rising and average/unit costs
rising C. Either the two
D. Output falling and average/unit costs D. none of above
rising
559. Identify the costs and risks of OVER- 564. What is the break-even point?
stocking: A. 1. The point at which a business starts
A. Customers will not be able to buy what to make a profit
they want
B. 2. The point at which total revenue
B. Staff will be made redundant equals total costs
C. Higher storage costs
C. 3. The point at which total revenue ex-
D. Items could deteriorate with age ceeds total costs
560. is the degree to which anobject or entity D. 4. The point at which total revenue is
satisfies a specified set ofattributes or re- less than total costs
quirements
A. Quantity 565. Operations managers are responsible for
planning, organizing, staffing, and control-
B. Quality
ling the operations function.
C. Operations
A. True
D. Quality Control
B. False
561. Production if very large quantities of Explanation:Operations management is
generic, identical goods using a continu- the process of planning, organizing,
ously moving process. staffing, and controlling the operations
A. Job production function. Operations managers are re-
B. Flow production sponsible for creating and delivering
goods and services that meet customer
C. Batch production expectations in the most efficient and ef-
D. Lean production fective way possible.

566. What is the purpose of benchmarking? 570. Its main objective is to utilize resources,
A. To record the number of tasks involved to the extent possible so as to satisfy cus-
tomer wants.

in a project
B. To measure performance against es- A. Production
tablished standards B. Operation
C. To establish and use procedures to 571. What are the three major types of own-
prevent product problems ership?
D. To improve the machines, equipment, A. Franchise, Cooperative, Partnership
and devices used in operations
B. Proprietorship, Partnership, Corpora-
567. What is the difference between quality tion
control and quality assurance? C. Corporation, Franchise, Non-Profit
A. Quality control focuses on the final D. LLC, S-Corp, Corporation
product, while quality assurance focuses
on the production process 572. (a) An individual who is placed as a tem-
porary hold on the schedule; their services
B. Quality control focuses on the produc- are required if the business levels demand
tion process, while quality assurance fo- their presence.
cuses on the final product
A. a On-Call Employee
C. Quality control and quality assurance
are the same thing B. Reserved Employee
C. Back-Up Employee
D. Quality control and quality assurance
are not important in production D. none of above
568. Quantitative forecast is based on histor- 573. The plot of land must be small to hold the
ical data such as:(please select those that proposed plant along with utilities, waste
apply) and water treatment facilities, parking
and access facilities and support services.
A. cycle
A. TRUE
B. salesforce opinions
B. FALSE
C. trend
D. seasonality 574. is the selection and definition of an or-
ganisation’s products to sell to customers.
E. consumer survey
A. Process
569. Based on the table of data, which of the B. Product
following businesses seems to be achiev-
ing economies of scale? C. Quality
D. Layout
575. What is a benefit of job production?
A. flexibility to produce whatever is re-
A. Business A quired
B. Business B B. slower process
C. Business C C. higher costs of production
D. Business D D. it meets customer needs exactly

576. What is:the checking for the quality stan- 581. It is responsible for securing financial re-
dards throughout the production process, sources at favorable prices and allocating
whether it is the production of a product those resources throughout the organiza-
or service tion, as well as budgeting, analyzing in-
A. Electronic Point of Sale (EPOS) vestment proposals, and providing funds
for operations.
B. Electronic Funds Transfer at Point of
Sale (EFTPOS) A. FINANCE
C. Quality Control B. MARKETING
NARAYAN CHANGDER
582. What is the fundamental purpose of an
577. What is:where a single product is made operational improvement cycle?
at a time
A. Maximizing efficiency and eliminating
A. Job Production unnecessary tasks
B. Batch Production B. Reducing customer satisfaction
C. Flow Production
C. Increasing employee salaries
D. Total Quality Management (TQM)
D. Expanding the business globally
578. Indicates the ratio of one resource (input)
to the good and services produced(output). 583. has become possible with the de-
velopment of information technology (IT)
A. Single-factor Productivity
tools that enable collaborative planning
B. Productivity and scheduling.
C. Multifactor Productivity A. Supply chain management (SCM)
D. none of above
B. Total quality management (TQM).
579. Hip Replacements, Inc., has 200 gross C. Just-in-time (JIT)
units required for 10 weeks of production
for its newest product model. Installa- D. none of above
tion fee is $50. Storage fee $2 per week.
What is the economic order quantity for 584. An example of innovation to meet
Replacements, Inc.? changes in environmental law would be a
product with:
A. 100 unit
A. More personalisation
B. 32 unit
C. 14 unit B. Lower carbon emissions
D. 43 unit C. A shorter life cycle
E. 20 unit D. Higher added value
580. If order quantity is less then cost of order 585. The studies responsible for creating the
is human relations movement, which focused
A. Low on giving more consideration to workers’
B. High needs is the Hawthorne studies.
C. Medium A. True
D. zero B. False

586. It is the creation of goods and services A. Waiting

using the factors of production:land, labor,
B. Inventory
capital, entrepreneurship and knowledge.

C. Over processing
A. Production
D. Over loading
B. Production Management
C. Operations Management 592. It is the action, performance, or process
D. Transformation Process that takes place between a customer and
a service provider.
587. What is the impact of using high quality
A. Servant
inputs in the production process?
B. Service
A. Higher costs for the business
C. Goods and Services
B. Lower costs for the business
C. No impact on costs D. None of the above
D. Decreased productivity 593. Ishikawa Diagram also known as

588. What is the main reason for industries to A. cause-end-effect
take up agile methodology? B. cause-an-effect
A. To increase the risk involved in project C. cause-and-effect
development
D. none of above
B. To reduce the quality of the final prod-
uct 594. The contributions of G.B Dantzig Williams
C. To slow down the return on investment & other is “Linear Programming”
D. To deliver high-quality products and re- A. TRUE
duce risk
B. FALSE
589. The differences between manufacturing
595. Manufacturing processes usually have:
and service organizations are not as clear-
cut as they might appear, and there is A. physical, durable output.
much overlap between them.
B. high levels of customer contact.
A. True
C. output that cannot be inventoried.
B. False
D. low levels of capital intensity.
590. In Quality Culture, the focus is on devel-
oping both long and short-term objectives, 596. In what situation JIT inventory manage-
within the context of an organizational vi- ment is not going to be successful?
sion. A. poor supplier relationships
A. True B. accurate demand forecasts
B. False C. excellent employee-employer relation-
ships
591. Type of waste which all components,
work in process, and finished product not D. production employees must be multi-
being processed. skilled and flexible

597. Manufacturing facilities that of cars falls 602. Is the application of Statistical Methods
into this kind of layout to monitor and control a process to ensure
A. Product-Oriented Layout that it operates at its full potential to pro-
duce conforming product
B. Fixed Position Layout
A. statistical process control
C. Process-Oriented Layout
D. Warehousing Layout B. statistical treatment for operations
598. This is the use of flexible computer-aided C. statistical method
NARAYAN CHANGDER
manufacturing systems to mass-produce D. statistical control charts
products that are custom designed for the
individual customer 603. This is a written statement of education-
A. mass customization alqualifications, specific qualities, level of-
experience, physical, emotional, technical
B. job-lot customization
andcommunication skills required to per-
C. production form a job, responsibilities involved in a
D. none of above job and other unusualsensory demands.
599. is the bridge betweengoals and accom- A. Job Specification

plishments. B. Job Description
A. Discipline C. Application Form
B. Respect
D. Job Requirements
C. Responsibility
D. Conduct 604. A likely advantage of a business holding
relatively high levels of inventory is that
600. What is CAD? the business will:
A. An app that lets you analyze different
A. Be more likely to avoid inventory obso-
design concepts
lescence
B. A coding program to let you easily
write in a computer language B. To be able to reduce the cash invested
in working capital
C. Computer software used to create 2D
drawings/3D models of designs C. To be able to handle sudden increase
in demand
D. Creation and development for any
robot D. Have lower inventory holding costs
601. is a method of dividing data into 605. Service characteristics that means vari-
sub-categories and classify data based on ability, that no matter how standard the
group, division, class or levels that helps product is, it will never be exactly the
in deriving meaningful information to un- same. (2 pts)
derstand an existing problem.
A. Aggregability
A. stratification
B. Tally sheet B. Intangibility
C. histogram C. Perishability
D. fish bone diagram D. Heterogeneity

606. According to him, total quality control is E. Flexibility of output levels or working
an effective system for integrating qual- hours
ity development, quality maintenance, and

611. Scenario Planning is also known as?
quality improvement.
A. Synergy Planning
A. A. V. Fig tree
B. Business Level Planning
B. Fragrant Ishikawa
C. Ad hoc Planning
C. James W. Dean
D. contingency planning
D. David E. Bowen
612. “Do It Right the First Time”
607. Which one from the list below is an Ad-
A. William Edwards Deming
vantage of ERP?
B. Philip Crosby
A. Cost/Investment.
C. Joseph M. Juran
B. Customization.
D. none of above
C. Deployment.
D. Simple data source. 613. House of Quality is the graphic technique
for defining the relationship between cus-
608. The break-even point is tomer desires and product (service)
A. Adding processes to meet the point of A. True
changing product demands B. False
B. Improving processes to increase
614. There are several types of consumer
throughput
products, except
C. The point in dollars or units at which A. Shopping goods
cost equal revenue
B. Fast moving goods
D. Adding or removing capacity to meet
demand C. Unsought goods
E. The total cost of a process alternative D. Specialty goods

615. Costs that don’t change with the amount
609. is the creation of outputs and form
produced.
the goods and services.
A. Fixed Cost
A. Comparability
B. Variable Cost
B. Quality
C. Total Cost
C. Produce
D. Marginal Cost
D. Productivity
616. What do we call those companies that
610. The following are aggregate planning have low customer contact and are capital
techniques in the service sector, except intensive, yet they provide a service.
A. Accurate work hour scheduling A. post-sales parts and service
B. The workforce is ready to call B. manufacturing and service organiza-
C. Flexibility of individual workforce skills tions
D. Backlog of orders during periods of C. quasi-manufacturing organizations.
high demand D. none of above

617. Principles of Operations Management B. Production and productivity are two

wherein you must organize all aspects of terms that refer to the same thing.
production into a coherent whole. C. Production refers to the efficiency
A. Fundamentals with which resources are used to pro-
B. Humility duce goods and services, while productiv-
ity refers to the output of those goods and
C. Organization services.
D. none of above
D. Production and productivity are both
NARAYAN CHANGDER
618. Walter A. ShewhartChoose Two: terms that refer to the cost of producing
goods and services.
A. -Contributed to understanding the
process-variability 623. What is the purpose of locational cost-
B. Developed concept of statistical con- volume analysis?
trols charts A. To determine the fixed and variable
C. -Defined quality as “fitness of use” costs for each location
D. -Coined phrase “quality is free” B. To plot the costs for each location on a
graph
619. If the forging machine were viewed as a
simple black box, it would be categorized C. To select the location with the lowest
as a multiple stage process. total cost for expected production volume
A. TRUE D. All of the above
B. FALSE 624. is the ratio of earned value to planned
value; can be used to estimate the pro-
620. A linear equation has the form
jected time to complete a project.
A. F= a+bt
A. Schedule Variance (SV)
B. F=a-bt
B. Life Cycle Costing
C. F=2a+bt
C. Schedule Performance Index (SPI)
D. F=2a-bt
D. Indirect Costs
621. The term operations management encom-
passes planning, implementing, and con- 625. Which one of the following statements is
trolling the production of goods or ser- more of a general characteristic of a ser-
vices. vice organization, as compared to a manu-
facturing organization?
A. TRUE
A. Output can be inventoried.
B. FALSE
B. The response time is longer.
622. Which of the following statements cor-
C. There is less customer contact.
rectly differentiates between production
and productivity? D. The facilities tend to be smaller.
A. Production refers to the output of 626. Labour attitudes and traditions is a
goods and services, while productivity factor governing the selection of a location
refers to the efficiency with which re-
sources are used to produce those goods A. Economic
and services. B. Noneconomic

627. Product life-cycle management (PLM) is a Ideal for products that have to be a consis-
process for managing a product’s life cycle, tent quality
from concept to disposal.

C. designs include customized elements
A. True to standardized parts reducing consumer
B. False alienation, differentiated products for
consumers, low unit cost for “customized”
628. It is a cost that varies with the level of product, reducing boring and repetitive
output. tasks
A. Variation Cost D. very inexpensive production costs
B. Variable Cost
632. The main advantages of the JIT approach
C. Variety Cost are:
D. All of the above A. Improvement in inventory storage
629. A company is using only their desktop to B. Reduction of storage costs and waste
store their organization’s data.Is it a ro- C. Expanding product range
bust and secured way of storing the data
D. Increase product variety
A. Yes 633. Which term considers taking economic,
B. Not secured social and ecological factors into considera-
tion when making sustainable business de-
C. Partially secured
cisions?
D. None of the above.
A. The triple bottom line
630. Which of the following is not the charac- B. Ecological sustainability
teristic of Project Production?
C. Social sustainability
A. The continuous flow of material
D. Economic sustainability
B. Highly mechanized material handling
C. Virtually zero manufacturing cycle 634. There are standards for materials man-
time agement that are practiced from company
to company. Most companies use ERP sys-
D. All of the above
tems such as ARA5, SAP, Oracle, BPCS,
631. Advantage of mass customization MAPICS, IFS and other systems to manage
materials control.
A. true
B. false
635. Ordering cost involve the following items

EXCEPT:
A. Supplies cost
A. high setup costs, boring repetitive
B. Transportation cost
tasks, demotivating for employees
B. capable of producing large quantities C. Shortage cost
with a process that is normally automated. D. Clerical support cost

636. MSU incorperated produces 5, 000 units 641. Lean production is also known as Toy-
of outputs and labor hours used are 500. otism
Calculate single factor A. True
A. 10 units per labour hours B. False
B. 10 units labour hours
642. One of the approaches to a competitive
C. 10 units per labour advantage is defined as distinguishing the
D. 10 per labour hours offerings of an organization in a way that
NARAYAN CHANGDER
the customer perceives as adding value.
637. 1) “Who are the customers?” is a key A. Differentiation
question in operations management.
B. Low Cost
A. True
C. Response
B. False
D. none of above
638. Part of the wings and it is the hinged
643. Step 5 in forecasting is to gather and an-
plate on the top portion of the wings. It
alyze the data.
is used to slow an aircraft or make an air-
craft descend if deployed on both wings A. Yes
and can generate a rolling motion for an B. No
aircraft if deployed on only one (1) wing
(used in changing lift, drag, and roll). 644. What is the purpose of a Gantt chart?
A. Winglets A. To record the number of tasks involved
in a project
B. Spoiler
B. To show the relationship between
C. Flap
tasks in a project
D. Slat
C. To estimate the time needed for each
task in a project
639. Below are activities of logistic opera-
tions, except D. To schedule repetitive tasks in an op-
eration
A. Transportation
B. Supplier selection 645. JIT stands for:
C. Material handling A. Just In Time
D. Inventory management B. Journey Into Technology
C. Joint Inventory Turnover
640. Which of the following are examples of
CAM machines? D. Justified Inventory Technique
A. Laser Cutter 646. Which one of the following is an advan-

tage of Just in Time?
B. 3D Printer
A. Lower risk if there’s problems with
C. Guillotine
suppliers.
D. Pillar Drill
B. Can meet sudden increases in demand
E. Computer as you have spare stock.

C. Reduces the amount of stock needing 651. (a) These are distinctive attributes that
to be held. define customers’ expectations. Standard-
ization helps hospitality organizations to

D. May give bulk buying economies of
scale execute service in a consistent and uniform
manner (Szende, 2013a).
647. An effective and efficient operation can A. a Service Standards
give a business many advantages. Which
B. Work Ethics
of the following is NOT one of these ad-
vantages. C. Working Standards
A. It can reduce the costs of making the D. none of above
products or offering the services.
652. Setting broad, long-range objectives to
B. It can reduce the amount of invest- achieve the long-term goals of your busi-
ment (capital employed) needed to manu- ness is called
facture the type and quantity of products
A. short-term planning
or offer the service required.
B. intermediate-range planning
C. It can be decisive for the general repu-
tation of the business unless the customer C. inventory planning
is not regarded as the focal point in oper- D. strategic planning
ations management
D. It can improve productivity and help erally three months to three years.
a business satisfy the needs of its cus-
tomers A. a Medium-Term Forecasting
B. Short-Term Forecasting
648. A principle of TQM is:
C. Long-Term Forecasting
A. Check and Reject
D. none of above
B. Employee Focus
654. The process of establishing guidelines
C. Employee Empowerment and actions should be pursued and when
D. Independent certification they should be completed in order to meet
the goals of the organization
649. Select two ways that an airline may mea-
sure quality. A. ORGANIZING resources and staffing
A. Customer complaints. B. PLANNING and establishing goals or

objectives
B. Number of employees.
C. DIRECTING or motivationg people to
C. Number of on time arrivals. attain those goals
D. Weather in final destination. D. Management
650. The purpose or rationale for an organiza- 655. Budgeting, paying the bills, and collection
tion’s existence of funds are activities associated with the
A. Vision A. management function
B. Mission B. control function
C. Strategy C. finance/accounting function
D. Goals D. production/operations function

656. Below are the roles of operations man- B. To automate standardized services
ager EXCEPT C. To enhance communication and data
A. planning on capacity, locations, prod- acquisition
ucts & services, make or buy, layout and D. All of the above
do projects scheduling
661. This is characteristics for yield manage-
B. develop an incentive plan, issuance of
ment
work orders & job assignment.
A. Fixed capacity
NARAYAN CHANGDER
C. manage the inventory, control the
quality, costs and productivity B. Fixed demands
D. produce financial reports and develop C. Non perishable inventory
direct investment activities D. all the above
657. Which among these is under “Procure- 662. (a) It refers to the ability of a firm to at-
ment” in the supply chain management? tempt to moderate demand.
A. Goods in Warehouse A. a Demand Management
B. Outbound Warehouse B. Supply Management
C. Manufacturing 663. is an approach to doing businessthat
attempts to maximize thecompetitiveness
D. none of above
of anorganization through thecontinual im-
658. From the following which is not a type of provement of thequality of its products,
inventory services, people, processes, andenviron-
ments.
A. Raw material
A. TQM
B. Work in process
B. Quality
C. Finished goods
C. Quality Mgmt
D. Equipment in plan operation
D. Management
659. Which factor of production refers to
664. One of the current operational challenges
human effort in the production process
is?
of manufacturing goods and/or providing
services? A. Job Specialization
A. Land B. Focus Local
B. Labour C. Time Customization
C. Enterprise D. Standard Products
D. Capital 665. His philosophy is embodied in what he

Explanation:Labour is the factor of produc- calls the “Absolutes of Quality Manage-
tion referring the human effort in the pro- ment and the basic elements of improve-
duction process, i.e. the physical and men- ments.
tal efforts of employees. A. Dr. E.Deming
660. What is the purpose of technology in ser- B. Philip Crosby
vices? C. A.V. Fig tree
A. To improve service productivity D. Fragrant Ishikawa

666. Facility layout designing and implementa- B. Operations Management

tion is influenced by various factors. These C. Operation Management
factors include (choose 4)

D. none of above
A. The design of the facility layout should
consider overall objectives set by the or- 671. one assumptions of EOQ is that demand
ganization. for the product is
B. The organizational environment A. fixed
C. Optimum space needs to be allocated B. constant
for process and technology. C. independent
D. A proper safety measure as to avoid D. dependent
mishaps.
672. An effective materials management plan
E. Overall management policies and fu- also means a more holistic approach to
ture direction of the organization managing vehicle use and emissions, solid
667. What is strategies? waste, hazardous waste, recycling, and
utility services.
A. Coordinate decisions regarding struc-
A. true
tural and infrastructural elements.
B. false
B. Strategies is Mission
C. Strategies is how to coordinate supply 673. What are the Five Project Management
chain Process Groups in order?
D. Strategies is element of supply chain A. Initiating, Planning, Monitoring & Con-
trolling, Executing, and Closing.
668. Which process strategy is characterized B. Initiating, Monitoring & controlling,
by high labor involvement and personal- Planning, Executing, and Closing
ized services?
C. Initiating, Executing, Planning, Moni-
A. Mass service toring & controlling, and Closing
B. Professional service D. Initiating, Planning, Executing, Moni-
C. Service factory toring & controlling and Closing
D. Service shop 674. Empowering and encouraging employees
to work on their own
669. Refers to the creation of goods and ser-
vices A. Leadership
A. Operations Management B. Management
B. Production C. Staff
C. Productivity D. Rules
D. Operations 675. The marketplace may reward leadership
in sustainability. Imaginative, well-led
670. Refers to the set of activities that re- firms are finding opportunities to build
late to the creation of goods and services sustainable production processesthat con-
throughout the transformation of input to serve resources, recycle, meet regulatory
output. requirements, and foster apositive reputa-
A. Operations tion

A. Recycle B. The sum of differences in demand.

B. Reputation C. The difference between forecast and
C. Regulation demand.
D. Resources D. The quotient of sales in a time period
and demand.
676. What are the planning strategies in ca-
pacity selection? 681. True of false:Manufacturing businesses
need the customer to be present during the
NARAYAN CHANGDER
A. A product and service mix that bucks
processing stage.
seasonal trends
A. False
B. Subcontract
B. True
C. Change inventory levels
D. Influence demand 682. What type of firm is most likely to
hold inventory in the form of work-in-
E. Changing production levels
progress?
677. resulted in the use of statistical meth- A. Construction firm
ods in the control ofquality, which led to
B. Fast food chain
the concepts of control charts andstatisti-
cal process control that are now part of C. Clothing retailer
the fundamentalaspects of the total qual- D. Hairdressing salon
ity approach.
A. Quality Engineering 683. Natural Resources, Human Resources, Fi-
nancial Resources
B. Quality Mgmt.
A. Resource endowment
C. Total Quality
B. Financing
D. Quality
C. Government Policy
678. It is a systematic approach toproviding D. Management
monetary value toemployee in exchange
for workperformed. 684. A clothing manufacturer is most likely to
A. Hiring hold the following stocks except:
B. Promotion A. materials used in the clothing products
C. Compensation B. partly finished goods called ‘work in
progress’
D. Evaluation and Management
C. finished clothing waiting to be sold
679. It connotes the administration of the
D. spare machines in case of breakdown.
range of activities belonging to the cre-
ation of products. 685. What is the purpose of Kaizen?
A. Production A. To maintain the current state
B. Operation B. To avoid any improvements
680. Forecast error is based off of: C. To discourage innovation
A. The product of demand and time pe- D. To foster a mindset of continuous im-
riod. provement and innovation

686. Which of the following is a potential dis- B. Production Costs, Sales tax charge,
advantage of process layout? shipping costs, inventory holding costs,
Ordering costs

A. Low product flexibility
B. Hard to supervise C. Product Purchase price, Storage re-
quirement costs, shipping costs, inven-
C. Complex flow can be difficult to control tory holding costs, Ordering costs
D. Easily disrupted D. Product Purchase price, Sales tax
charge, shipping costs, inventory holding
687. Some businesses use an automatic re-
costs, Ordering costs
order system to maintain an adequate:
A. budget for expenses. 692. Product Based is based on the how
closely the products meet the desired spec-
B. work environment.
ifications and standards.
C. inventory of supplies.
A. Yes
D. maintenance system. B. No
688. Organizational models are 693. This is the processes of finding the most
A. Multinational model suitable employee for an available posi-
B. International model tion.
C. All of these A. Recruitment and Selection
D. none of above B. Planning

C. Training and Development
689. Objective of Work Study is to improve
D. Human Resource Planning
A. Cycle time 694. Managers must establish a certain level

of boundary or limitation to the employees
B. Productivity
in applying the concepts of empowerment.
C. Production
A. Unclear Meaning of Empowerment
D. none of above
B. Lack of Training of the Employees
690. A measure of the efficiency of inputs C. Lack of Patience in the Implementation
used in the production process, in partic- of Empowerment
ular labour and capital
D. none of above
A. Work in progress
695. The ability of society to develop in such
B. Production
a way that it meets social well-being of
C. Inventories present and future generations
D. Productivity
691. Parameters which are part of Buying

Product outside (outsourcing) include:
A. Product Purchase price, Sales tax
charge, Monitoring costs, inventory hold-
ing costs, Ordering costs

A. Social sustainabilty 701. Purchasing raw materials from a busi-

B. Social transformation ness in another country is known as:
C. Social productivity A. Global Sourcing of Inputs
D. Social preservations B. Overseas Manufacturing

C. Global Outsourcing
696. is a set of management techniques in-
tended to improve business process with D. International Supplier Sourcing
working to reduce error and defects
NARAYAN CHANGDER
702. Performance that meets or exceedsex-
A. total quality management
pectations.
B. six sigma
A. Quality
C. lean production
B. TQM
D. trademark management
C. Total Quality
697. He is responsible for for planning, orga- D. Management Quality
nizing, staffing, implementing, and control-
ling operations of a business. 703. Utility is composed of the following com-
A. CEO ponents EXCEPT A) customer loyaltyB)
priceC) inconvenienceD) consumption util-
B. Manager
ity
C. Board of Directors
A. Customer loyalty
D. Employees
B. Price
698. Product Layout also known as functional C. Inconvenience
layouts.
D. Consumption utility
A. Yes
B. No 704. satisfies customers, communicates the
purpose of theservice to its market and
699. (a) These are useful when there is brings financial rewards to the business
an identifiable pattern and relationship
within the data. A. Services
A. a Causal B. Quality Control

B. Subjective C. Good service design
C. Predictive D. Delivering Quality Service
D. Time-Series
705. It is a broader term than testing, includes
700. Under which method of cost flows is the all activities, among them testing, to see
inventory assumed? if the products are up to standards.
A. LIFO (Last In, First Out) A. Production

B. FIFO (First In, First Out) B. Quality Service
C. WAC (Weighted Average Cost) C. Inspection
D. All of the choices D. Testing

706. (a) It refers to the “part of quality man- 711. The role of the operations manager is to
agement focused on fulfilling quality re-
A. be responsible for the production of
quirements.

the business’s product, whether it is a
A. a Quality Control manufactured good or the provision of a
service.
B. Quality Consideration
B. be responsible for the production of
707. Smailes Ltd has fixed costs of $50, 000. the business’s staff when producing a
It costs them $2.00 in variable costs to good or service.
produce one item. They produce 80, 000
C. be responsible for the production of
items. Calculate Smailes Ltd.’s total costs:
the business’s competitive stance within
A. $100, 000 a market, whether it is a manufactured
B. $130, 000 good or the provision of a service.
C. $210, 000 D. none of above
D. $160, 000 712. The operations manager’s job is to imple-

ment an OM strategy, provide competitive
708. Which of the following is LEAST likely to advantage, and increase productivity
be a benefit of cost cutting?
A. True
A. Improved profit margins
B. False
B. Improved productivity
713. Just in Time (JIT) is an operations man-
C. Improved customer satisfaction
agement philosophy. Its objectives are:*
D. none of above To reduce waste * To increase productivity
709. What is the purpose of de-coupling inven- A. true

tory? B. false
A. To allow different stages of processing
714. Employees should make sure that jobs
to operate at different speeds
are designed for as much self-control as
B. To cope with planned fluctuations in possible, continually seek and use em-
supply or demand ployee input, and encourage self-directed
C. To compensate for unexpected fluctu- teamwork.
ations in supply and demand A. True
D. To cope with transportation delays B. False
710. What is the goal of Kaizen? 715. The root of all quality including the qual-
A. To create a culture of continuous im- ity of products, services, experiences, sys-
provement tems and processes.
A. Total Quality Management
B. To maintain the status quo
B. Objectives of Layout
C. To avoid any changes
C. Design Quality
D. To implement large, disruptive over-
hauls D. Product Life Cycle

716. Which of the following is true 722. Primary activities focus on the manufac-
A. Increasing Capacity utilisation will turing of goods and services.
leave total costs unchanged A. True
B. Increasing Capacity utilisation will re- B. False
duce average cost per unit
723. What is quality control?
C. Increasing Capacity utilisation will in-
A. 1. A process of ensuring that a product
crease total costs
meets a certain level of quality
NARAYAN CHANGDER
D. Increasing Capacity utilisation will in-
B. 2. A process of preventing defects in
crease unit costs
the production process
717. (FIFO) Stands for (a) C. 3. A process of continuously improving
A. a (“first in, first out”) product quality
B. (“first in, first on”) D. 4. A process of ensuring that products
are produced efficiently
718. This is an industry movement that
changed production by substituting ma- 724. Participants in the Delphi Method
chine power for labor power. A. Decision Makers
A. Scientific management B. Staff Personnel
B. Industrial Revolution C. Respondents
C. Historical Milestones D. Government
D. none of above 725. The also produced more widespread
719. The steam engine provided a new source support for ecological and environmental
of power that was used to replace hu- protective measures than in earlier years.
man labor in textile mills, machine-making A. 1950s
plants, and other facilities. B. 1960s
A. True C. 1970s
B. False D. 1980s
720. The point is the volume of sales that 726. (a) The ability to meet the needs of cur-
must be made to cover all of the expenses rent generations without impacting future
of a business. generations.
A. profit A. a Sustainability
B. net B. Reservation
C. breakeven C. Support
D. goal D. none of above
721. factors affecting inventory (choose 3) 727. What is lean production?
A. type of customer A. A type of customer service
B. type of product B. A method of stock control
C. volume of production C. A set of cost cutting techniques
D. type of manufacturer D. none of above

728. sales is the dollar amount of all sales. 733. It is a Value Chain Support activity that
deals with sourcing raw materials, nego-
A. net
tiating with suppliers, and managing rela-

B. Gross tionships with vendors that contributes to
C. cost of goods cost efficiency and product quality
A. Outbound logistics
D. profit and
B. Human Resource Management
729. What is the primary goal of quality as- C. Procurement
surance?
D. Infrastructure
A. To eliminate defects and reduce costs
734. The contributor of Organizational behav-
B. To monitor and improve quality over
ior:continued study of people at work is-L.
time
Cummings, L. Porter.
C. To assess the quality of products or A. TRUE
services
B. FALSE
D. To ensure consistency and reliability in
the quality of products or services 735. Efficiency of the production system is
measured by:
730. What does Just-In-Time production help A. activity
with?
B. productivity
A. Creating waste
C. effectiveness
B. Taking away jobs
D. staff
C. Increasing efficiency
736. It is the measure of effectiveness with
D. Making products heavier which an organization uses its resources
in transforming inputs to outputs
731. This form of creativity transfers and ap-
plies existing forms of thinking and prob- A. Resource endowment
lem solving to new scenarios B. Production
A. Innovative C. Productivity
B. Adaptive D. Social Obligations
C. Divergent 737. What are the 5 basic rules of Kaizen?
D. none of above A. Work harder not smarter
B. Think of why it cannot be done, not how
732. Which of the following below is an exam-
to do it
ple of a quasi-manufacturing type of com-
pany? C. Use money not wisdom
A. Postal Service D. Correct failure immediately-70% now

is better than 100% never
B. fast-food operation
738. The primary reason that governments de-
C. barber shop
velop workplace health and safety regula-
D. none of above tions is to:

A. protect employees from injury and ill- B. Inventories

ness.
C. Materials Management
B. reduce the risk of employment discrim-
ination. D. Work Measurement
C. ensure that employees have access to 743. This technique involves a small group of
insurance. high profile managers who pool their best
D. prevent the breach of business infor- judgments to collectively make the fore-
cast.
NARAYAN CHANGDER
mation systems.
739. Computer aided manufacturing creates A. Sales force composite

faster more efficient production processes. B. Jury of executives
What is a disadvantage?
C. Delphi Method
A. length of time to get the software pro-
grammed to do what the business desires D. Consumer Survey
B. Need to employ many more staff to run 744. ISO 14000

a CAM
A. A set of international standards and a
C. The cost is minimal to set up
D. Hardly any technology is needed vironmental responsibility
740. Competitive priorities that win orders in B. A set of international Standards devel-
the marketplace oped to help organizations evaluate and
address their social responsibility
A. Order winners
B. Order Qualifiers C. A set of quality standards developed
for global manufacturers by the Interna-
C. Quality Dimensions tional Organizations for Standardization.
D. Orders D. The standard for certification of a
741. What does quality control refer to? firms quality management system. It is
A. Establishing criteria or specifications quality management systems to meet cus-
for the quality of products or services tomer requirements
B. Inspecting, testing, and verifying prod-
ucts or services to identify defects or is- 745. To gain cost advantage a firm has to go
sues through 5 analysis steps:The first one is to
C. Making changes to products, services,
or processes to improve their quality A. Establish the relative importance of
D. Ensuring that products or services each activity in the total cost of the prod-
meet customer requirements and expec- uct.
tations B. Identify cost drivers for each activity.
742. Serve to decouple successive operations C. Identify the firm’s primary and support
in the process of making product and get- activities.
ting it to the consumer. D. Identify opportunities for reducing
A. Quality Control costs.

746. The following are aspects that need to be 751. is applying mathematics and statis-
considered when implementing a project, tics to large volumes of structured and
except unstructured data to gain unprecedented

A. Consumer satisfaction business insights.
B. Time A. Big data analytics
C. Quality B. Sustainability
D. Cost C. Reengineering
D. none of above
747. Businesses that offer premium quality
products and services usually have large 752. In methods of observing service encoun-
market shares and early entrants into ters and measuring them against quality
their return on investment. standards can eliminate both ignorance
A. True and personal bias.
B. False A. Training Managers

748. The contributor of “Operations research Data
applications in World War II
C. Comment Cards
A. P.M Blacker & others
D. SERVQUAL
B. H.F Dodge and H.G Roaming
753. What do you mean by “TOTAL REV-
749. Human Resource Management has re- ENUE”?
sponsibility for procurement of materials,
supplies, equipment, and services. Close A. It was not discussed
contact with operations is necessary to en- B. It is how much money came out from
sure correct quantities and timing of pur- the producers.
chases. The purchasing department iden- C. Price x Quantity
tifies appropriate suppliers and facilitates
close relationships. Purchasing may also D. The cost of production
be involved in arranging incoming trans- 754. What are the consequences of not having
portation. True or False? a quality policy in place?
A. True A. Increased customer satisfaction
B. False B. Improved supplier relationships
750. Which is not a barrier to TQM implemen- C. Enhanced product quality
tation? D. Damaged reputation and customer dis-
A. Incompatible organizational structure satisfaction
and isolated individuals and departments
755. This term refers to the extent to which a
B. Paying inadequate attention to inter- business achieves it objectives.
nal and external customers.
A. Effectiveness
C. Lack of resources needed for imple-
mentation B. Efficiency
D. Ineffective measurement techniques C. Operations Management

and lack of access to data and results. D. Outputs

756. It involves determining required ma- 761. This breaks each task into specific steps
chines, tools, men, and methods. and procedures so that each employee is
guided on what tasks to perform and how
A. Production planning
each task will be performed.
B. Product planning
A. job standards
C. Process planning
B. job breakdown
D. Managing
C. monitoring checklist
NARAYAN CHANGDER
757. (usually done by design engineers) D. job specification
or value analysis (usually doneby the pur-
chasing department) means that every- 762. A cause-and-effect diagram is also
thing that is made or purchased isthought known as
of as being made or bought to serve a par- A. Ishikawa diagram
ticular purpose.
B. Kawai City Diag etc.
A. Use of teams
C. 5S diagram
B. Organization with distinct depart- D. Just-in-time diagram
ments
C. Value Engineering 763. The six categories of inputs include
D. Japanese Approach A. 1.Raw materials2.Capital equip-

ment3.Labour4.Information5.Time and ef-
758. Performing activities well and at the low- ficiency6.Money
est possible cost. B. 1.Raw materials2.Capital equip-
A. EFFICIENCY ment3.Labour4.Information5.Time and ef-
ficiency6.Mass production
B. EFFECTIVENESS
C. 1.Raw ingredients2.Equipment3.Robotics4.Information5.Ti
C. PRODUCTIVITY and efficiency6.Money
D. RELIABILITY D. none of above
759. is the technique of using computers 764. Understanding OM will hinder you to ex-
to control an entire production process. plore the numerous and lucrative career op-
A. CIM portunities in the field.
B. FMS A. TRUE
C. JOB SHOP B. FALSE
D. BATCH MANUFACTURING 765. Which of the following is the best defini-

tion of ‘an increase inefficiency’?
760. People try harder when they’re held ac-
A. higher output levels than last year
countable.
B. lower total costs of production
A. Causality
C. fewer workers employed but output
B. Passion
level remainsthe same
C. Accountability
D. 10% more workers employed and out-
D. none of above put also risesby 10%

766. Operations is often the primary user of B. System

the firm’s resources.
C. Theory

A. Acceptability
D. Psychology
B. Feasibility
C. Vulnerability 772. defined as air transportation used for do-
D. Resources mestic and international passenger service
traveling from one place to another.
767. Where the provision of capacity is fixed,
it is ofteneasier to measure capacity by in- A. Passenger Aircraft
puts, for example; B. Air Transporation
A. rooms available in a hotel
C. Prop Planes
B. number of breads baked within a day
D. Jet Aircraft
C. amount of rice sacks produced a day
D. car manufactured per week 773. Which of the following statements is cor-
rect?
768. A decrease in variation will lead
to:(choose 3) A. the level of production is the total num-
ber of goods produced per worker
A. better quality;
B. lower cost B. productivity can be measured by out-
put per worker in a given time period
C. more insight into the capability of the
process. C. increasing production leads to in-
D. process adjustments creased productivity
D. reducing productivity per worker will
769. Decision trees use:
increase the number of workers
A. probabilities.
B. payoffs. 774. producing a one-off item specially de-
signed for the customer
C. logic.
D. options. A. mass customisation
E. all of the above. B. flow production
770. Scientific management time study and C. batch production

work study Developed by Charles Bab- D. job production
bage.
A. TRUE 775. In a production plan for service business,
B. FALSE you may need to include:
771. Help us understand people, interactions A. Manufacturing process

between people and circumstances, inter- B. Customer service
actions between leaders & employees, and
any management system. C. Storage of product
A. Knowledge D. Shipping or distribution plan

776. Which of the following is (are) impor- C. Extensive customer contact, extensive
tant consideration(s) concerning activity product variety and low volume
times? D. Extensive customer contact, extensive
A. Activity time should be obtained from product variety and high volume
the person responsible for the completion
of an activity 781. This is a form of legal protection that pro-
tects intellectual property such as logos,
B. Activity time must be independent of
slogans and phrases.
any influence which the preceding or suc-
NARAYAN CHANGDER
ceeding activity may have on it. A. Patent
C. Activity time may assume that just the B. Copyright
normal quantity of resources required to C. Trademark
carry out the activity are available.
D. none of above
D. All of the above
782. Oceans contain how much of the Earth’s
777. To create goods and services, all organi- water?
zations need not to perform these three
functions:Marketing, Operations, Finance. A. 80%
A. True B. 86.5%
B. False C. 90%
D. 96.5%
778. Core competencies are a set of unique
management skills 783. What is:costs which do not vary with the
A. True number of items sold or produced in the
short run. They have to be paid whether
B. False the business is making any sales or not.
They are also known as overhead costs
779. consists of the variation inherent in
the process as it is designed. may include A. Fixed Costs
variations in temperature, properties of B. Variable Costs
raw materials, strength of an electrical cur-
rent etc C. Total Costs
A. common variation D. Average Cost per Unit
B. special variation 784. In Traditional Culture, suppliers are

C. mixed variation viewed as partners.
D. controlled variation A. True
B. False
780. Which of the following combinations
would result in the lowest production cost 785. The two main axes of a risk are:
per unit?
A. Consequences * dependencies
A. Limited customer contact, limited prod-
uct variety and low volume B. Probability * good luck
B. Limited customer contact, limited C. Probability * cost

product variety and high volume D. Probability * impact

786. involving a high quantity of capital equip- 792. Cash flow is positive in the beginning of
ment compared with about input project life cycle

A. effectiveness A. True
B. efficiency B. False
C. labor intensive
793. It implies that larger numbers of product
D. capital intensive
attributes are equivalent to higher quality.
787. What is a work center in a business? A. Transcendent perspective
A. A place for leisure activities B. Product perspective
B. An area where resources are orga-
C. Value perspective
nized and work is completed
C. A center for customer service D. Manufacturing perspective
D. A center for administrative tasks 794. A good layout should consider:

788. This refers to appraising the degree of- A. Client interaction
success of HRM being performed inan or- B. Customer satisfaction
ganization.
C. Customer demand
A. Managing relations
B. Promotion D. Material handling equipment
C. Compensation 795. A well designed system, you can an

D. Evaluation and Management organization that last
789. Process is said to be ‘in control’ and sta- A. smile

ble If common cause is the only type of B. build
variation that exists in the process
C. paint
A. true
D. throw
B. false
796. Which of the following is an example of
790. Qualitative factors in deciding location of
a nested process?
a business
A. break even analysis A. At the start of the new semester, a stu-
dent first pays tuition and then goes to the
B. the pull of market bookstore.
C. safety
B. A customer service representative ver-
D. transportation cost ifies a caller’s account information.
791. What is the role of operations manage- C. A candidate’s intent to graduate is
ment? checked for financial holds by the Bursar
and for degree requirements by Advising
A. Planning
before the diploma mill prints their sheep-
B. Organizing skin.
C. Controlling D. A stockbroker calls a client and ad-
D. Improving vises her to sell silver short.

797. In SDE Analysis, Scarce Items have lead C. All of the above
time of
D. none of above
A. 0-2 years
B. > 1 month 803. Making the manufacturing process more
efficient can:
C. > 6 months
A. Bring the product to market faster
D. 0 to < 6 months
B. Increase the cost of production
NARAYAN CHANGDER
798. It can be used to assess the various com-
ponents that are bundled together to form C. Decrease the profit margin
what is delivered to the guest. D. none of above
A. package
804. Which provides the base for operational
B. service package planning?
C. ultimate service package
A. Production planning
D. none of the above
B. Resource planning
799. What does high productivity depend on? C. Strategic planning
A. Good management
D. All of above
B. High quality
C. High costs 805. 1) To which system inhibitor does the fol-
lowing customer complaint relate:“I wish
D. none of above they could add more cashiers in the busy
800. Machining, packaging, assembly, equip- hours”?
ment maintenance, testing, printing and fa- A. Defect
cility operations are examples of
B. Inflexibility
A. Procurement
C. Variability
B. Operations
D. Waste
C. Outbound Logistics
D. Service 806. Selecting a forecasting technique is the
first step in forecasting
801. A constraint will restrict the capacity of
the operation, by reducing or even remov- A. True
ing this constraint capacitywill increase. A B. False
constraint can be reduced by increasingthe
resource in the bottleneck. 807. A situation in which U.S. manufacturers
A. true bring manufacturing jobs back to the U.S.
is called
B. false
A. Mass Production
802. What are the advantages of templates
over diagrams? B. Reshoring
A. Less laborious C. Utility
B. Saves time D. Synthetic Process

808. I process whereby a business checks and 813. Repetitive Focus is the layout that suit-
tests a percentage of the output is an ex- able for product oriented production that
ample of uses modules.

A. Quality Control A. Yes
B. Total Quality Management B. No
C. Quality Checking 814. Just In Time (JIT) aims to:
D. Quality Assurance A. Increase inventory to avoid shortages
809. ETO stands for Engineer to order B. Reduce waste by producing only what
is needed
A. TRUE
C. Speed up the production process
B. FALSE
D. Lowering quality to save costs
810. have responsibilities in both strategy
and day-to-day production, in either man- 815. Logistics refers to (select one):
ufacturing or services. A. The movement of goods, services, in-
A. OPERATIONS MANAGER formation and money throughout the pro-
duction process.
B. FINANCE MANAGERS
B. The purchase of goods, services and in-
811. The stages in the design of products and formation.
services are: C. All people, businesses and activities in
A. Concept generation, The screening the production process.
process, Preliminary design, Prototype D. Holding stock just in case there is a de-
and final design, Evaluation and improve- lay in supplies
ment,
816. In Operations Management, processes
B. Concept generation, The screening
may differ fundamentally in four ways-the
process, Preliminary design, Evaluation
4 V’s. The 4 V’s are:
and improvement, Prototype and final de-
sign A. Volume, variety, variation, visibility
C. Concept generation, Preliminary de- B. Volume, variety, variation, vastness
sign, Evaluation and improvement, Proto- C. Volume, variation, vastness, value
type and final design, The screening pro- D. variation, visibility, vastness, versions
cess,
D. Preliminary design, Concept genera- 817. Eli Whitney & others is the contributor
tion, The screening process, Evaluation of division of labor by skill; assignment of
and improvement, Prototype and final de- jobs by skill; basics of time study.
sign A. TRUE
B. FALSE
812. Which of these is a common measure of
labour productivity? 818. Inventory is critical and required because
A. Output scrap rate A. For normal consumption
B. Profit margin B. For lead time of procurement
C. Quality assurance level C. For balance fluctuations in demand
D. Output per worker per day D. All of the above

819. What kind of budget should show the pro- 824. What is the purpose of innovation and
jections of your cash coming in and going technology adoption in operation manage-
out. ment?
A. cash A. Avoid a competitive edge
B. inventory B. Improve efficiency
C. strategic C. Drive stagnation
D. controlling D. . Reduce competitiveness
NARAYAN CHANGDER
820. Output means goods (Goods), not includ- 825. The application of techniques designed to
ing services (Service). establish the time for a qualified worker
A. cheap to carry out a specified job at a defined
level of performance.
B. wrong
A. Motion Study
821. Capacity Utilization Rate = (actual out- B. Time Study
put / productive capacity) x 100An Ital-
ian shoe factory is able to produce a maxi- C. Wok Study
mum of 100, 000 shoes a year. Currently D. Method Study
it only has orders for 40, 000. What is
the capacity utilization rate? 826. The reward paid to labor as a factor of
production?
A. 40%
A. Rent
B. 60%
B. Wages
C. 25%
C. Profit
D. Not enough information provided
D. Interest
822. The following is not a major contributor
in the development of Control Charts and 827. What is the process of setting standards
Sampling plan for the operation of a business and ensur-
ing those standards are met?
A. F H Dodge
A. controlling
B. H G Roming
B. implementing
C. Walter Schewhart
C. budgeting
D. J M Juran
D. balancing
823. Main function in organization and their
relationship are 828. Application of technology or process to
A. Finance, Marketing, Human Resource, the raw material toadd use value is known
Public Relation and Supplier as:
B. Finance, Marketing and Supplier A. Product
C. Finance, Marketing, Human Resource, B. Production

Admin and Supplier C. Application of technology
D. Finance, Marketing, Human Resource D. Combination of technology and pro-
and Supplier cess

829. One challenge for materials managers is 835. Kaizen refers to

to provide timely releases to the supply A. Doing Good Things
base.

B. Continuous Improvement
A. true
C. Start Improvement
B. false
D. Stop Improvement
830. To compete in an ever-changing market, 836. The arranges workflow around the
operations managers must maximize effi- production process. All workers perform-
ciency, productivity, and efficiency, which ing similar tasks are grouped together.
have always been vital to a company’s sur- Products pass from one workstation to an-
vival. other (but not necessarily to every work-
A. TRUE station).
B. FALSE A. product layout
B. process layout
831. This kind of design layout technique is
used for assembly line. C. hybrid layout
A. line balancing D. fixed position layout
B. sequence analysis 837. The production system must be flexible

in such a way it can adapt to changing cus-
C. two dimensional template
tomer’s demands, tastes, fads.
D. line sequencing
A. Positioning of the production system
832. Supply Chain is also referred to as Value B. Capacity and location factors
Chains C. Work force and job design
A. True D. Product and process technology
B. False
838. Funnel Process is for
833. Which of the following is NOT a core func- A. Product design
tion of operations management? B. Product development
A. Inventory management C. Quality improvement
B. Quality assurance D. Process improvement
C. Advertising campaigns
839. The principle of postponement is em-
D. Capacity planning ployed by a producer using a(n):
834. Characteristic of a manufacturing busi- A. make-to-stock strategy

ness: B. assemble-to-order strategy
A. Intangible C. make-to-order strategy
B. Production & consumption usually oc- D. engineer-to-order strategy
cur simultaneously
840. Common consultants small businesses
C. High Customer Contact hire include:
D. Easy to standardise A. Accounting

B. Legal 846. Mark, who owns a small home-appliance

C. Information Technology (IT) store, is in the process of placing an or-
der for 12 refrigerators, 8 stoves, and 4
D. All of these portable dishwashers. Mark is purchasing
the refrigerators for $674.98 each, the
841. A car assembly plant had to shut down
stoves for $493.22 each, and the portable
operations for a day because tyres had not
dishwashers for $284.83 each. What is
been delivered. What inventory manage-
the total cost of the stoves that Mark is
ment strategy at the car assembly plant
purchasing?
NARAYAN CHANGDER
may have caused this situation?
A. $493.22
A. Just-in-case
B. $3, 945.76
B. Just-in-time
C. $2, 278.64
C. First-in-first-out
D. $5, 399.84
D. Last-in-first-out
847. Refresh your understanding of the word
842. It is the activities that assure the actual customer in operations management and
performance in accordance with planned identify the statement that is TRUE.
performance.
A. Manufacturing systems can have only
A. CONTROLLING internal customers because other depart-
B. PURCHASING ments are responsible for serving the ex-
ternal customer.
843. A production philosophy that is focused
B. Only service organizations have exter-
on eliminating waste
nal customers because service is pro-
A. Machine production vided in the presence of a customer.
B. Lean production C. Customers can be internal or external
C. Fat production in both manufacturing and service opera-
tions.
D. Muscular production
D. The concept of an external customer
844. Effectiveness of the organization is mea- is no longer relevant because delivery is
sured in terms of the generated by the given by third-party distribution compa-
product. nies.
A. Quality 848. Operations can help find ways to do
B. Quantity production better, faster, using more re-
C. Value sources.
A. TRUE
D. A and C
B. FALSE
845. Which of the following are MATERIALS
strategies? 849. Marketing is also responsible for assess-
ing customer wants and needs, and for
A. Computer Aided Design
communicating those to operations(short
B. Just in Time term) and to design machine (long term)
C. Automated Production Line A. TRUE
D. Master Production Schedule B. FALSE

850. Which of the following products is likely A. Measure the customer satisfaction in-
to be made using job production? dex

A. Heinz baked beans B. Measure the reject rates at each stage
B. Cadbury Dairy Milk of the process
C. Land Rover car C. Measure the Sales
D. Made to measure wedding dress D. Measure the employee satisfaction
851. In Special Purchase System, Zero Stock 855. In Value stream mapping, the difference
applies what kind of methodology? in production lead time to processing time
is given in
A. Inventory Control
A. Information flow diagram
B. Material Planning
C. Lean Manufacturing B. Process flow diagram
D. Just In Time C. Time line diagram

D. None
852. What is:a production method that in-
volves reducing or virtually eliminating the 856. Measurements that detect the onset of a
need to hold inventories of the finished degradation mechanism, thereby allowing
product. Supplies arrive just at the time causal stressors to be eliminated or con-
they are needed trolled prior to any significant deteriora-
A. Lean Production tion in the component physical state.
B. Kaizen A. Preventive Maintenance
C. Just-In-Time (JIT) B. Reliability-Centered Maintenance
D. Quality C. Predictive Maintenance
853. Following are characteristics of services D. Breakdown Maintenance

EXCEPT
857. Division of labor means that it had had
A. Outputs can be stored a significant impact on the way goods are
B. intangible outputs produced today.
C. Labour intensive A. True
D. Difficulty in measuring the quality B. False
854. Problems in Banner Food Processing 858. What is the purpose of buffer inventory?
Industry around the quality of prod-
ucts.Banner clearly had problems with cus- A. To cope with transportation delays
tomer perceptions of quality. They need B. To allow different stages of processing
to sort out the quality problems and make to operate at different speeds
sure customers are aware of the improve-
C. To compensate for unexpected fluctu-
ments they make.TaskIdentify KPIs that
ations in supply and demand
might help measure Banner’s performance
in some of the areas where they currently D. To cope with planned fluctuations in
have problems, supply or demand

859. Identifying and preventing er- involve the transformation of inputs into
rors/defects as closely as possible to outputs. For products, the inputs are
when they occur typically raw materials and components,
A. Rate while for services the inputs are typically
labor, knowledge, and skills. The outputs
B. One Piece Flow of operations can be tangible (products)
C. Pull or intangible (services).
D. Zero Defects 864. What is the objective of the product deci-
NARAYAN CHANGDER
860. It is vertical movement of anemployee sion?
within the organization. A. To develop and implement a product
A. Managing Relations strategy that meets the demands of the
marketplace with a competitive advan-
B. Promotion tage
C. Compensation B. To reduce product development time
D. Evaluation and Management and problems with tooling
C. To improve cost control and reduce op-
861. (a) It also exists, whereby guests obtain
tions in the maturity phase
a place in a line but do not have to physi-
cally stand in a line. D. To terminate offering in the decline
A. a Virtual Management phase
B. Face-to-Face Management 865. Why is employee turnover high in the ho-

tel business?
862. What are the four ways in which produc-
tion gives products or services value? A. The hotel business does not have
enough hours to provide to workers.
A. Making them available at the right
time, in the right place, increasing de- B. The hotel business is only open Mon-
mand, and enhancing their form day through Friday.
B. Making them available at the right C. The hotel business does not face high
time, in the right place, transferring own- employee turnover.
ership, and enhancing their form D. The hotel business is open around the
C. Making them available at the right clock, making staffing difficult.
time, in the right place, transferring own-
866. One example of flexibility is , which
ership, and reducing costs
is the ability of a firm to produce highly
D. Making them available at the right customized goods and services and to do
time, in the right place, transferring own- it at the high volumes of mass production.
ership, and increasing demand
A. mass customization
863. Operations can produce both services and B. food service industry
products
C. material requirements planning
A. True
D. none of above
B. False
Explanation:Operations can produce both 867. How can compliance with a quality policy
services and products because they both be ensured?

A. By not measuring employees’ under- B. Infrastructure

standing of policies and procedures C. Order qualifiers

B. By ignoring divisional leaders’ feed- D. Cost
back
C. By setting deadlines for acknowledg- 872. These are the layout design considera-
ment of policies and procedures tions EXCEPT
D. By making policies and procedures in- A. Higher utilization of space, equipment
accessible to employees and people
B. Improved flow of information, materi-
868. What is the main goal of quality control? als and people
A. To provide confidence that quality re- C. Improved customer interaction
quirements will be fulfilled
D. Improved time consuming
B. To monitor different aspects of produc-
tion 873. Which of the following is NOT a group of
C. To assess product quality and make im- operations decisions
provements A. Process
D. To maintain high standards in manufac- B. Quantity
turing
C. Capacity
869. is a small group of workers from the D. Quality
same working unit or work area who meet
regularly to voluntarily identify and solve 874. Below are the basic layout patterns EX-
problems within their areas of responsibil- CEPT:
ity. A. Fixed Position Layout
A. Process Control B. Process Layout
B. Selective Inspection C. Product Focus
C. Online and Online real-time Quality D. Product Layout
Management
D. Quality Circle 875. is a systematic method for the elimina-
tion of waste (”Muda”) within a manufac-
870. Pharmally executive who was placed ate turing system.
Pasay City Jail for being so evasive to A. Later
questions raised by senators during the
hearing. B. Lean
A. Huang T group yen C. Management
B. Lincoln Ong D. Time
C. Dargani Mojit 876. In order to achieve best practice, a mobile

D. Krizelle Mago phone company examines global trends
in phone technology before designing and
871. A competitive priority focusing on low producing their phones. What operations
cost. strategy is this business using?
A. Partial productivity A. Standardisation

B. Global sourcing 881. A regional bookstore chain is about to

C. Scanning and learning build a distributioncenter that is centrally
located for its eight retail outlets.It will
D. Inventory management most likely employ which of the following
877. refers to the process where thepotential tools ofanalysis?
applicants are searched for, and thenen-
A. Assembly-line balancing.
couraged to apply for an actual or antici-
patedvacancy. B. Load-distance analysis.
NARAYAN CHANGDER
A. Recruitment and Selection
C. Center-of-gravity model.
B. Recruitment
D. Linear programming
C. Selection
D. Interview
882. The mixer, oven and decorating machine
878. The social pillar of sustainability is fo- they use are examples of:
cused on
A. dividends
A. Society
B. training
B. The amount of social interaction peo-
ple have C. specialization
C. The ability to for people to exist in
D. capital resources
a way that they can continue to live the
same way (or better) into the future
883. is one of themost common types of disci-
D. How much healthcare, money and edu-
pline at theworkplace.
cation people can get
A. Issuing Verbal Warning
879. means that operation is connected at all
times to a central computer or has “satel- B. Issuing Written Reprimand
lite” or “distributed” mini or microcom-
puters located at several key operations C. Implementing Performance Improve-
which are tied to the central controlling ment Plans
computer.
A. Process Control
E. Terminating an Employee
B. Selective Inspection
C. Online and Online real-time Quality
884. What is the significance of continuous
Management
monitoring in the operational improve-
D. Floor Inspection ment cycle?
880. . This contains all of the rules, policies, A. To analyze customer feedback
and procedures that a business should fol-
low to function effectively. B. To reduce customer satisfaction
A. Operations Management C. To gather information on how the pro-
B. Operations Manual cess is implemented
C. Management D. To maximize efficiency and eliminate
D. Organizing unnecessary task

885. Select two boxes of the primary distinc- 888. A mobile phone manufacturer decides to
tions between these categories. globally source inputs that they had previ-
ously produced themselves. Which of the

A. Manufacturingorganizations produce
following shows possible negative effects
physical, tangible goods that can be
of this decision?
stored in inventory before they are
needed. A. Simplified logistics and delays in the
supply chain
B. In economics, goods and services are
often pronounced in the same breath. B. Delays in the supply chain and in-
These are offered by the companies to creased transport costs
the customers to provide utility and sat- C. Increased transport costs and re-
isfy their wants. duced access to specialist suppliers
C. In manufacturing organizations most- D. Reduced access to specialist suppliers
customers have no direct contact with the and a decrease in logistics costs
operation.
889. In service process matrix-Airlines ser-
D. Goods implies the tangible commodity vices require
or product, which can be delivered to the
customer. It involves the transfer of own- A. High degree of interaction & cus-
ership and possession from seller to the tomization
buyer. B. High degree of labour intensity
C. Low degree of labour intensity
886. It is important to document theem-
ployee’s behavior or actions, note thecor- D. None of the above
rective measures you attempted toimple-
890. The importance of Operations Manage-
ment and indicate why you issued the sus-
ment serves as the engine room of the or-
pension of your employee.
ganization, planning and driving manufac-
A. Issuing Verbal Warning turing or services.
B. Issuing a Written Reprimand A. TRUE
C. Implementing Performance Improve- B. FALSE
ment Plans
891. Economies of scale occur when product
D. Issuing a Written Suspension design costs are spread over a large vol-
E. Terminating an Employee ume.Very often, a standard component in
a product provides the same functionality
887. How does Apple Inc. use forecasting in without paying for newengineering work
its supply chain management? and customization.
A. To adjust production forecasts based A. Lower Product Costs

on market demand B. High Product Costs
B. To monitor store demand on an hourly C. Lower Product
basis D. Production Costs
C. To drive innovations and reduce inven-
892. means that a substance will cause the
tory costs
wearing away, or the gradual changing or
D. All of the above destroying

A. Fumes 897. Which process type describes a dentist

B. Corrosive seeing patients for a variety of dental pro-
cedures?
C. Mists
A. Continuous processes
D. Fibers
B. Mass Services
893. Refers to the method of determining in-
ternal strengths and weaknesses and ex- C. Professional Services
ternal opportunities and threats.
NARAYAN CHANGDER
D. Service Shops
A. SWOT Analysis
898. he JIT process begins with a review
B. Key Success Factors
of the essential manufacturing building
C. Five Forces Analysis blocks:(CHOOSE 4)
D. Value Chain Analysis A. product design
894. Select the costs and risks of UNDERstock- B. market research
ing:
C. process design
A. Reputation may suffer if order are not
met D. personnel planning
B. Customer may be lost to competition E. manufacturing planning
C. Advertisement costs will increase
899. A French company moves its factory to
D. Money will be tied up in stock Thailand. What is this an example of?
895. Productivity is A. Subcontracting
A. A measure of efficiency and the B. Outsourcing
amount of output produced compared to
the amount of input required in produc- C. Insourcing
tion. D. Offshoring
B. A measure of effectiveness and the
amount of output produced compared to 900. Marketing is responsible for producing
the amount of input required in produc- the goods or providing the services offered
tion. by the organization.
C. A measure of competitiveness and the A. TRUE
amount of output produced compared to
B. FALSE
the amount of input required in production.
901. A production process called the puts
D. none of above together components into a finished prod-
uct.
896. Type of inventory
A. Mass Production
A. finished products
B. work in progress B. Assembly Process
C. raw material C. Manufacturing Process
D. stock D. Operations Process

902. The impact of resource consumption of C. Optimal utilization of available re-

the natural environment sources

D. To earn good profits
906. All of the following are types of invento-
ries except one.
A. Raw Materials Inventory
B. Work-in-process Inventory
C. Finished goods inventory
A. Sustained productivity D. Delivered goods inventories
B. Ecological process
907. , and all play key roles in
C. Ecological footprint proper materials and inventory manage-
D. Value-added ment.
A. People, money, and automation infras-
903. What is the Scrum framework in project tructure
management?
B. Practice, process, and automation in-
A. An iterative approach to project man- frastructure
agement that enables teams to react
quickly to project feedback C. People, process, and automation in-
frastructure
B. Emphasizes perfect planning by break-
D. People, process, and money
ing down and scheduling the entire
project 908. The elements of an Operations System
C. Divides larger projects into shorter are:
sprints that adapt to demands as the A. Inputs, Processes, Outputs
project evolves B. Inputs, Operations, Outputs
D. Focuses on continuous improvement C. Efficiency, Effectiveness
through visualizing and managing the flow
of work D. Resources, Processing, Outputs
909. Southwest Airlines has a unique seat-
904. The action of making or manufacturing
ing policy where there are no assigned
from components or raw materials, or the
seats, and passengers are instead as-
process of being sold to manufactured.
signed boarding positions based on the or-
A. Production der they check-in for their flight.
B. Quality Service A. True
C. Design B. False
D. Testing 910. Which is a benefit of putting one’s goals
in writing?
905. The desired objective of Production and
Operations Management is: A. makes the goals attainable
A. Use cheap machinery to produce B. develops one’s perseverance
B. To train unskilled workers to manufac- C. clarifies the goals
ture goods perfectly D. provides a challenge

911. ECN 915. Principles of Facility Layout includes;

(choose 3)
A. Engineering charge Notice
A. Productivity
B. Engineering choose note
B. Flexibility
C. Engineering Change Notice
C. Space utilization
D. Engineering Chance Null
D. Capital
912. A design that attempts to minimize the
NARAYAN CHANGDER
916. The product is established and the aim
cost by addressing the trade offs between
for the manufacturer is now to maintain
the space and material handling, usually
the market share they have built up. This
considers fast moving, medium moving
is probably the most competitive time for
and slow moving products.
most products and businesses need to in-
vest wisely in any marketing they under-
A. take. They also need to consider any prod-
uct modifications or improvements to the
production process which might give them
a competitive advantage.
B.
A. Decline
B. Growth
C. C. Introduction
D. Maturity
917. What is a bottleneck in a production pro-

D. cess?
A. A storage area for finished products
B. The part of the process with the high-
913. The process strategy is the determination
est capacity
of the methods or techniques which an or-
ganisation will use to transform raw in- C. A specialized machine used in facto-
puts into salable products. ries
A. True D. The part of the process that limits over-
all output
B. False
918. It also called stock control, is the process
914. Which one way would sustainability look of managing a company’s inventory levels
like?
A. Inventory Control
A. Avoiding the depletion of natural re-
B. Inventory
sources in order to maintain ecological
balance C. Purchasing Plan
B. Only posting on social media about cli- D. Inventory Needs
mate change
919. Acts in the transformation of inputs to
C. Using only non-renewable resources product outputs
D. none of above A. Information system

B. System B. False
C. Physical system C. Either

D. P D. none of above
920. What are the assumptions in location
925. People or equipment moving or walking
strategies for service organizations?
more than is required to perform the pro-
A. Location is a major determinant of rev- cessing.
enue
A. Motion
B. High customer-contact issues are crit-
ical B. Waiting
C. Costs are relatively constant for a C. Over production

given area D. Transport
D. All of the above
926. How well a business uses its resources
921. Manufacturing processes usually have: to achieve its objective
A. physical, durable output. A. Efficiency
B. high levels of customer contact. B. Effectiveness
C. output that cannot be inventoried.
C. Productivity
D. low levels of capital intensity.
D. Business Competitiveness
922. What is the goal of the performance ob-
jective ‘cost’? 927. Technology applications has impacted
operations in several ways such as,
A. To minimize expenses
computer-aided product design, Electronic
B. To increase costs (data) Communication, computer numeri-
C. To reduce quality cally controlled machining centers. True or
False?
D. To decrease affordability
A. True
923. What is the main purpose of the ‘bath tub
curve’? B. False
A. To measure the probability of a system 928. Which type of sustainability assesses

performing as expected over time how well a business uses green technolo-
B. To determine the degree to which the gies and recycling?
operation is ready to work A. Political
C. To calculate the reliability of the whole
B. Social
system
C. Ecological
D. To show the failure pattern of most
physical entities over time D. Economics
Explanation:Ecological sustainability as-
924. Base line methods is the percentage of a sesses how well or responsible a busi-
company’s demand derived from continu- ness is with its use of resources by adopt-
ing contracts and existing customers. ing green technologies and actions to re-
A. True cycle.

929. Select the factor not considered while de- 934. disadvantages of technology, except
ciding plant location A. expensive
A. Availability of Airport B. retraining for workers
B. Availability of infrastructure facilities C. machines cannot replicate the work of
C. Nearness to market certain job, such as a doctor, hairdresser
or other workers providing personalised
D. Nearness to raw-materials’ source
care and services.
NARAYAN CHANGDER
930. There are 2 Work Study Techniques, what D. faster and able to produce a large num-
are they? ber of output
A. Method measurement. 935. What are NOT 10 operational manage-
B. Method Study. ment strategic decisions?
C. Work Measurement. A. Design of goods and services
D. Work integration. B. Forecasting
C. Schedule determination
931. Concerned with providing the right prod-
D. Aggregate planning
ucts in a cost-effective and timely manner
E. Supply chain management
936. When a student is given detention for
continuously being late to school, which
management theory is most likely being
used?
A. Theory W
A. Production factoring B. Theory X
B. Operations management C. Theory Y
C. Production processing D. Theory Z
D. Operations processing
937. What is the correct definition of lean pro-
932. What kind of layout is suitable for mass duction?
production? A. It is the Japanese concept of ‘Kaizen’.
A. Process based layout B. It occurs when individuals focus on a
limited number of tasks.
B. Layout based on product
C. It is continuous improvement.
C. Mobile layout
D. It aims to minimise waste.
D. Fixed layout
938. Below is NOT an example of steps taken
933. What is the main important factor for a by the COMPANY to reduce production
retail business? costs
A. Labour Costs A. minimize ENERGY usage
B. Cost of raw materials B. Minimize SALES
C. Footfall C. Minimize MATERIAL use
D. Rent D. Minimizing PRODUCTION DEFECTS

939. To succeed, the company needed to de- A. strategic planning

velop a system to generate better fore- B. intermediate-range planning
casts, coordinate manufacturing of prod-

ucts, manage orders, and track deliveries. C. short-term planning
A. True D. none of these
B. False 945. TQM philosophy Employee empower-

ment
940. HR Strategy involves are the ways of or-
A. Employees are expected to seek out,
ganising and developing people and groups
to best use their knowledge and skills as
resources in production. B. Ongoing employee training in the use
of quality tools
A. True
C. Products need to be designed to meet
B. False
941. If Fender Guitar pays $30 per day to a D. Quality should be built into the pro-
worker in itsEnsenada, Mexico, plant, and cess; sources of quality problems should
the employee completes fourinstruments be identified and corrected.
per 8-hour day, the labor cost/unit is
946. It is a systematic direction, control, and
A. $30.00 evaluation of the entire range processes
B. $3.75. that transform inputs in a finished goods
C. $7.50. or services.
D. $4.00 A. management
E. $8.00 B. operations management

C. Managerial Operations
942. Which department in hotels include event
management for clients who book for in- D. None of the above
house functions? 947. Which of the following would be used to
A. Front Office inform a business’s forecasting of future
demand?
B. Food and Beverage
A. Past sales data
C. Engineering and Maintenance
B. Economic trends
D. Sales and Marketing
C. Weather patterns
943. All manufacturers and many service busi-
D. The arrival of new competitors in the
nesses, such as dry cleaners, need inven-
industry
tories, or stockpiles, of the materials they
use for making their products or offering 948. is the period of time over which a
their services. product is developed, brought to market
A. INVENTORY CONTROL and, finally, removed from the market.
B. QUALITY CONTROL A. Life Cycle
B. Product Cycle
944. Preparing detailed plans that will provide
strategies for achieving goals and objec- C. Product of Cycle
tives in a one-year period is D. Product Life Cycle

949. Texas Instruments (TI) adopted a compre- performance should be evaluated by the
hensive software package called that level of social, economic and ecological
integrates information throughout the or- sustainability-or the 3 Ps of people, prof-
ganization, manages forecasts, and coor- its and planet.
dinates factory operations.
954. Which group of resources are trans-
A. enterprise resource planning (ERP) formed resources?
B. tactical decisions
A. materials, information, facilities
NARAYAN CHANGDER
C. Just-in-time (JIT).
B. materials, information, customers
D. none of above
C. materials, human resources, facilities
950. Water resources are uniformly (equally) D. human resources, information, cus-
distributed around the world. tomers
A. True
955. Name the 4 distinctive characteristics of
B. False an operations-management model.
951. A factory manager is deciding the best or- A. Volume of output.
der in which to complete tasks. Which op- B. Variety of output.
erations process is being carried out?
C. Variation of output.
A. Monitoring
D. Visibility of output.
B. Scheduling
E. Velocity of output.
C. Sequencing
D. Task design 956. What is the purpose of cycle inventory?
A. To compensate for unexpected inter-
952. A definition of Sustainability is
ruptions in supply or demand
A. Meeting population needs
B. To allow different stages of processing
B. Meeting the needs of the present with- to operate at different speeds
out compromising the ability of future gen-
erations to survive C. To cope with planned fluctuations in
supply or demand
C. Meeting the needs of the future with-
out worrying about today’s D. To compensate for unexpected fluctu-
D. Meeting the food needs of animals
957. Which is NOT one of the 7 Forms of
953. Which model suggests that the perfor- Waste?
mance of businesses should be evaluated
by their level of social, economic and eco- A. inventory
logical sustainability? B. overprocessing
A. Triple bottom line C. transportation
B. Quality management D. development
C. Corporate social responsibility
958. Rules are more specific than procedures.
Explanation:John Elkington’s triple bot- A. true
tom line model suggests that business B. false

959. TQM philosophy Use of quality tools C. International Corporation

A. Ongoing employee training in the use D. No Answer

of quality tools
B. Products need to be designed to meet 964. Which of the following options is NOT an
customer expectations activity involved y Human Resources
C. Quality should be built into the pro- A. Hiring

cess; sources of quality problems should B. Training
be identified and corrected.
C. Strategic management
D. Quality concepts must extend to a com-
pany’s suppliers D. none of above
960. Just in time aimed at 965. Below are performance of the operations
A. Zero inventory and supply chain, except
B. Reduced manpower A. Cost

C. Over production B. Product price
D. All of above C. Quality
961. Decision Trees is/are D. Flexibility
A. used for new product decisions 966. True or False:An analytical process is
B. helpful in a series of decisions and var- when raw materials or components are
ious outcomes combined to create a finished product.
C. used to show the dimensions, toler- A. True
ances, materials and finishes of a compo- B. False
nent
D. No answer 967. You are working on a large project which
has several smaller projects and programs
962. Minimizing information technology costs, within it. This is:
staying current with technological ad-
vances, and maintaining technical excel- A. List of Projects
lence are sources of value creation are in- B. Portfolio
cluded in what support activity?
C. Project Life Cycle
A. procurement
D. Programming
B. infrastructure
C. HR Management 968. Occurs when social interactions and struc-
tures necessary for social development
D. technological development
meets the needs of the present population
963. A firm that has extensive involvement without endangering the ability of future
in international business, owning and con- generations to meet their needs. → So-
trolling facilities in more than one country. cial sustainability
A. International Business A. True
B. Multinational Corporation (MNC) B. False

969. Flow production would be used for: 975. In India, the use of Statistical Quality
A. Cans of Coke Control started by the efforts of
B. Fitted Kitchen A. Prof. VSP Rao
C. Walkers bags of crisps B. Dr. W.A. Shewhart
D. none of above C. Prof. P.C. Mahalanobis
970. Which is an example of Transformation? D. None of the above
NARAYAN CHANGDER
A. Satisfied Customers
B. Well-prepared food, well served; 976. Who is the contributor of Human rela-
agreeable environment tions; the Hawthorne studies?
C. Hungry Customers, food, wait staff A. Elton-Mayo
D. None of the Above B. F.W Harris
971. Which one represents product Layout
977. Aggregate planning involves a number of
A. Hospital obstacles, namely
B. Hotel and Resturant
A. Job assignments, job bookings, deliv-
C. Paper Mill eries, and overtime
D. Ship B. Part-time, weekly scheduling, and pro-
972. Finance is responsible for assessing con- duction scheduling
sumer wants and needs, and selling and C. capital investment, capacity expansion
promoting the organization’s goods or ser- or leasing, and R&D
vices.
D. Facility location, production budgeting,
A. TRUE
overtime, and R&D
B. FALSE
E. Subcontracting, labor levels, inventory
973. Which process strategy focuses on orga- levels, and capacity
nizing facilities around specific activities or
processes? 978. The following are the main objectives of
A. Process focus a project, except
B. Repetitive focus A. Can be completed at any time
C. Product focus B. Features according to project plan
D. Mass customization
C. Flexible budget
974. The service sector makes up approxi-
D. Satisfying customers
mately what percentage of all jobs in the
United States?
979. Space and Insurance cost is part of
A. 12%
A. Inventory Order Cost
B. 40%
B. Inventory Carrying Cost
C. 66%
D. 86% C. Both order cost and carrying cost
E. 94% D. None

980. The three process regions in a process- C. involves producing a quantity of one
chain-network diagram are: product and then moving on to produce an-
other quantity of a different product.

A. manufacture, supplier, customer
B. direct and surrogate, customer, D. known as mass production, involves
provider producing large quantities of a product in
a continuous process.
C. independent, dependent, customer in-
teraction 985. What is batch production?
D. direct interaction, surrogate interac- A. there is a set procedure and stages
tion, independent processing that the production process needs to go
through in order to make the product.
981. means to select the most suitablyquali-
B. it is a continuous process where the
fied candidate for the available position.
product is made from a production line.
A. Recruitment and Selection C. a production system where employees
B. Recruitment work in teams.
C. Selection D. none of above
D. Interview 986. This type of budget shows the projections
of your cash coming in and going out.
982. Product production It’s called
A. sales budget
A. Factors of production (Inputs)
B. cash budget
B. Outputs
C. production budget
C. conversion process (Transformation
Process) D. general budget
D. none of above 987. The ergonomics consideration in work en-
vironment as below, EXCEPT
983. According to TOC, the is the ‘drum’
which marks the time through theprocess- A. Illumination
due to insufficient capacity this should be B. noise
working themost. C. humidity
A. bottleneck D. ambiance
B. buffer principle
988. When might a dummy column be added
C. rope element to a transportation table?
D. none of above A. When supply does not equal demand
984. Explain flow production and its alterna- B. When overtime is greater than regular
tive name. time
A. a production method that aims to re- C. When subcontracting is greater than
duce or eliminate the need for holding regular time plus overtime
inventories of raw materials or finished D. When subcontracting is greater than
products. regular time
B. is where a single product is made at a E. When production needs to spill over
time. into a new period

989. In a book publisher’s marketing and sales A. Quality Assurance

activity, include making sales calls to B. Quality Control
bookstores, advertising, and selling on-
line. C. Total Quality Management
A. quality activities D. Operations
B. indirect sub-activities 994. Role of Operation Managers included

C. direct sub-activities A. Planning, Organizing, Staffing, Leading
and Controlling
NARAYAN CHANGDER
D. none of these
B. Planning, Organizing, Leading and Con-
990. What is the definition of capacity plan- trolling
ning for services?
C. Organizing, Planning, Staffing and Con-
A. Capacity must align with demand pat- trolling
terns
D. Controlling, Planning, Staffing, and
B. Capacity must accommodate peak de- Leading
mand
C. Capacity can match average demand 995. should have the ability to develop a
vision to see patterns into the future.
D. Capacity should exceed normal de-
mand A. Leaders
B. Workers
991. (a) A vital part of hospitality operations
because it allows businesses to make im- C. Management
perative decisions, such as pricing, promo- D. none of above
tions, distribution, scheduling, and arrang-
ing facilities, based on the predicted de- 996. One measure of success for a firm is a
mand and supply. high return on investment (ROI). Which of
the following are NOT characteristics of
A. a Forecasting high-return-on-investment firms?
B. Prediction A. low investment intensity
C. Assumption B. high product quality relative to their
D. none of above competition
992. What is the main focus of service C. high capacity utilization
blueprinting? D. high variety of product options
A. To improve service productivity 997. is carried out for evaluating the
B. To analyze and design process flows strategic objectives of a business like prod-
C. To identify potential failure points in uct portfolio expansion, entering new cus-
service processes tomer segments, technological disruptions,
a paradigm shift in consumer behavior and
D. To understand and optimize customer- risk mitigation strategies.
provider interactions
A. INTERNAL FORECASTING
993. It focuses on the process of producing the B. ENVIRONMENTAL FORECASTING
product or service with the intent of elim-
inatingproblems that might result in de- C. EXTERNAL FORECASTING
fects D. ECONOMICAL FORECASTING

998. Configuration management (CM) is a assembled or shipped as a kit to the cus-

system engineering process for manag- tomer. This is thesystem that Dell uses. A
ing changes to a product’s configuration wider variety of end product options ispos-

throughout its life cycle sible but within certain limits.
A. True A. Modular Design
B. False B. Modular
999. The cost of insurance tends to decrease C. Modular Designing
as the value of the inventory insured in-
D. Modular Quality
creases.
A. true 1004. Reorder point = +
B. false A. Reorder point, lead time demand
1000. It is a set of interrelated parts that must B. lead time
work together. C. Forecasted daily unit sale
A. System
D. Lead time demand, safety stock
B. Business
C. Service 1005. Cause-and-effect diagram introduced by
helps in identifying the various causes
D. none of above (or factors) leading to an effect (or prob-
1001. Joseph M. JuranChoose Two: lem) and also helps in deriving meaningful
relationship between them.
A. -Defined quality as “fitness of use”
A. Wilfred Pareto
B. Developed concept of cost of quality.
B. Fragrant Ishikawa
C. Introduced concept of total quality con-
trol C. Karl Pearson
D. Introduced concept of zero defects. D. Bow Ishikawa
1002. What is the focus of sustainability and 1006. What is the role of marketing in a busi-
social responsibility in operation manage- ness organization?
ment?
A. Providing funds for business opera-
A. Maximizing environmental impact
tions
B. Ignoring social responsibility
B. Identifying customer needs and wants
C. Ethical sourcing
C. Dealing with workforce issues
D. Minimizing environmental impact
D. Producing goods or providing services
1003. In the fashion world, this is calledmix-
and-match clothing. In manufacturing, as- 1007. True or false:After World War II, the U.S.
semble to ordersystems allow the cus- did not become the most productive coun-
tomer to specify a need and then ei- try in the world.
therthe customer or the vendor selects pre-
A. True
engineeredsub-assemblies to meet a cus-
tomer’s need. The product is theneither B. False

1008. Define needs in the context of opera- 1013. WHICH OF THE FOLLOWING IS NOT A
tions management. STRATEGIC DECISION?
A. Requirements or demands of cus- A. What market do we plan to compete
tomers or stakeholders in?
B. Resources or materials required for B. Who will work the 2nd shift tomorrow?
production C. What do we believe will be the demand
C. Goals or objectives of the organization for our product?
NARAYAN CHANGDER
D. Procedures or processes for complet- D. What are the unique features of our
ing tasks product?
1009. Location strategy helps the company in 1014. Productivity increases when:
determining product offering, market, de- A. inputs increase while outputs remain
mand forecast in different markets, best the same
location to access customers and best man- B. inputs decrease while outputs remain
ufacturing and service location. the same
A. TRUE C. outputs decrease while inputs remain
B. FALSE the same
D. inputs and output increase proportion-
1010. Which is the nature of the service (Ser-
ately
vice)?
E. inputs increase as the same rate as
A. Tangible outputs
B. Can be kept as inventory (Goods can
be inventoried) 1015. It can be defined as the administration
of the set of activities concerning the cre-
C. Focus on capital intensive use (Capital ation of goods or transformation of raw
Intensive) material into finished goods.
D. Hard to measure quality A. Production
1011. Key components in MRP include: B. Operation
A. Production schedule, bill of materials, 1016. According to our material, Supply chain
and master inventory management is divided into three major di-
B. Marketing plan, supplier list and cost visions:Procurement, Operations Manage-
analysis ment, and Retailers.
C. Analyze market trends, financial plans A. TRUE
and logistics B. FALSE
D. Human resource management, prod- 1017. This involves the assigning of minimum
uct development, and sales and maximum wage rates for various job
levels.
1012. A supply chain is a global network of
organizations and activities that supply a A. development of factors
firm with goods and services. B. wage adjustment
A. True C. rating and classification of positions
B. False D. job analysis

1018. Which of the following is the correct A. To create offerings that meet cus-
statement about operations management tomer requirements within cost and other
in the primary sector? managerial constraints

A. It includes car manufacturing using au- B. To maximize customer value
tomated production processes.
C. To minimize production costs
B. It includes business consultancy ser-
D. To increase production flexibility
vices.
C. It includes fishing, forestry and min- 1023. State TRUE or FALSE Mass processes
ing. like assembly line production are suitable
when the variety of things to be produced
D. It includes tourism and hospitality.
is high and the volume is very low.
Explanation:In the case of the primary
sector, operations management may in- A. TRUE
volve mining, fishing and forestry. B. FALSE
1019. are quality standards and are intended 1024. The type of innovation is so important
to ensure that a company conforms to that it may change the industry itself.
specified requirements in the areas of
design/development, production, installa- A. Product
tion and services. B. Process
A. Production C. Positioning
B. ISO 9000 Series of Standards D. Paradigm
C. Inspection
1025. Like roots of a tree, of organization
D. Testing is hidden from direct view.
1020. each salesperson projects his or her A. Goodwill

sales then combined at district and na- B. Core competence
tional levels.
C. Higher management
A. Jury of Executive Opinion
D. none of above
B. Delphi Method
1026. Mr Patrick has faith that we can nail
C. Sales Force Composite
this SAC, and the end of year exam, if we
D. Market Survey work hard.
1021. The contributions of Eli Whitney & oth- A. True

ers B. False
A. Specialization of labour in manufactur-
1027. What is not input from the following?
ing
A. Honesty
B. Interchangeable parts, cost account-
ing B. Manpower
C. Raw material
1022. What is the objective of process strat-
egy? D. Machinery

1028. Define diseconomies of scale. C. Shop

A. factors that lead to a reduction in aver- D. Producer
1033. Effectiveness is producing output at the
highest ratio of output to input
erage costs as a business becomes too
large. A. True
C. the level of sales at which total costs B. False
NARAYAN CHANGDER
equal total revenue.
1034. Choose one of the right options please?
D. the income generated from the sale of
goods or services during a specific period. A. A
B. B
1029. Which of the following is an advantage
of Job Production? C. C
A. Not suitable for Personal Services D. D
B. The product does not meet the require- 1035. Which of the following situations can be
ment of the customer described as automation?
C. The workers often have more varied A. A vacuum cleaner that can clean an air-
jobs port terminal by itself
D. Skilled labour is often used B. A machine that automatically flips
burger patties at a fast food restaurant
1030. What is the benefit of leading-edge
technology? C. A robotic arm that can paint a bike fuel
A. Creates more waste tank
B. Helps businesses operate more effi- D. All of the above

ciently
1036. means that the production of a good
C. More expensive than established tech- is broken down into a series of small, ele-
nology mental tasks, each of which is performed
D. Helps businesses create products sim- by a different worker.
ilar to previous products A. Division of labor
1031. It finds the inputs necessary to achieve B. Labor power
a goal such as a desired level of output. it C. Mass production
is the reverse of what-if analysis.
D. none of above
A. What-if Analysis
B. Goal-seeking Analysis 1037. One of the 10 Strategic OM Decisions,
where people are an integral and expen-
C. Consolidation sive part of the total system design.
D. Drill Down A. Process and Capacity Design
1032. A product is something offered to B. Human Resources and Job Design
A. Consumer C. Quality
B. Market D. Goods and Service Design

1038. What are economies of scale? 1043. A Service Business can be characterised
by;
A. Cost advantages achieved through pro-

ducing on a medium scale A. Producing services
B. Cost advantages achieved through pro- B. Intangible
ducing on a smaller scale
C. Often customised
C. Cost advantages achieved through
D. All of the above
producing on a larger scale
D. Cost disadvantages achieved through 1044. Sugar Manufacturing is
producing on a larger scale
A. Batch Production
1039. The costs of holding inventory are B. High Volume mass production
known as costs.
C. Batch production
A. holding
B. carrying
C. storage 1045. What is the most likely reason that
many companies have relocated their pro-
D. inventory duction facilities to South East Asia?
1040. A Japanese term that translates to ‘con- A. To access raw materials
tinuous improvement’. This word is linked B. Better weather
with production as it encourages all em-
ployees to suggest improvements. C. Lower labour costs
A. thank you D. Lower distribution costs

B. Are you okay 1046. By examining the data in the table,
C. I don’t understand which of the businesses appears most to
be suffering from diseconomies of scale?
D. Kaizen
1041. The layout arrangement where equip-

ment with like functions is grouped to-
gether is:
A. Functional layout A. Business A
B. Fixed layout B. Business B
C. Product layout C. Business C
D. none of above D. Business D
1042. Attack strategies are 1047. Empowered employees take the initia-
tive to propose for solutions rather than
A. Frontal attack pass the ball to the management to make
B. Flank attack decisions.
C. Encirclement attack A. True
D. All of the above B. False

1048. What are the FOUR (4) elements in A. true

the operations system/production system B. false
model?
A. Input, Transformation Process, Output 1053. Leftover bread that is not sold at a bak-
and Feedback ery is an example of
B. Input, Feedback, Output and Transfor- A. Defect
mation Process B. Flexibility
NARAYAN CHANGDER
C. Output, Transformation Process, Input C. Variability
and Feedback
D. Waste
D. Input, Output, Transformation Process
and Feedback 1054. Developed by Berry and his associates
1049. Which of the following is not a strategy
associated with technology B. Guest Input is Important Source of
Data
A. CAD
C. Comment Cards
B. Website development
D. SERVQUAL
C. Forecasting
D. Automated production lines 1055. A pizza delivery service attempts to ap-
peal to the component or subcompo-
1050. is an approach to product design nent of the customer utility function.
where products are divided into separate
A. Price
modules or components that can be de-
signed and developed independently. B. Timing
A. Robust Design C. Location
B. Computer Aided Design (CAD) D. Performance
C. Modular design 1056. It is an OM activity that uses physical in-
D. Computer-Aided Manufacturing (CAM) ventory as a buffer for goods to mitigate
forecast errors
1051. After a series of complaints about food
A. Inventory
quality, a school decides to end its contract
with a local supplier. Rather than find a B. Forecasting
new supplier, the school decides to employ C. Logistics
a new team of chefs directly to cook the
meals. What is this an example of? D. Technology
A. Insourcing 1057. Quality is the characteristic of a product

B. Outsourcing or service to fulfill customer expectation
C. Subcontracting A. True
D. Offshoring B. False
1052. Total Quality Management (or TQM) is a 1058. He has summarized his philosophy in 14
supervision concept coined by W. Edwards rules of management
Deming A. Walter Shewhart

B. W.Edwards Deming B. Developed “14 points” to guide compa-

C. Frederick Taylor nies in quality improvement.

D. Joseph Juran C. “Do what you do Best and Outsource
the Rest” Outsourcing
1059. Which of the following is a principle of
Lean Operating System? D. -Contributed to understanding the
process-variability
A. Increase Speed and Response
B. Maintain High Inventory 1064. Total weight for each performance di-
C. Maximize Waste mensions in supplier selection should be >
D. Ignore Quality 1
A. True
1060. Theprocess of analyzing an organi-
zation’scurrent human resource capabil- B. False
itiesand its needs which are required
tomeet objectives. 1065. What is meant by a quality product?
A. One that meets customers expecta-
B. Planning tions and is fit for purpose.
C. Training and Development B. One that is both premium and expen-
D. Human Resource Planning sive.
1061. What are the disadvantages of CAD? C. One that needs replacing on a regular
A. Staff need to be trained to get the full basis.
use of the software D. One costs more to produce so it is
B. It is not precise enough more expensive than its competitor’s.
C. It doesn’t look professional
1066. Which is the least connected to environ-
D. The software is very expensive to buy mental sustainability
1062. Which is not a current trend in opera- A. clean water
tions management?
B. air pollution
A. The market is diverse. Manufacturing
processes must become more flexible to C. depletion of natural resources
meet customer specific needs.
D. healthcare
B. There is increasing concern over envi-
ronmental issues and global warming. 1067. (a) The accumulations of resources as
C. Focus on producing large quantities at they flow through processes, operations,
a time. or supply networks.
D. Focus on continuously improving the A. a Inventory
quality of products and services.
B. Count-Down
1063. W. Edwards DemmingChoose Two:
C. Itemization
A. Stressed management’s responsibility
for quality D. none of above

1068. This phase involves an analysis of each A. Process

job in terms of the above criteria and as-
B. Input
signing a rating or points, following a pre-
scribed rating system. C. Subsystem
A. development of factors D. System
B. wage adjustment
1073. Below is NOT an example of steps taken
C. rating and classification of positions by the COMPANY to reduce costs (COST)
NARAYAN CHANGDER
D. job analysis that must be incurred by CUSTOMER:
1069. is the average of the absolute values A. Improving Product Quality

of the deviations of observed values from B. Reduce Queue Time
forecast values. It is the arithmetic mean
of past absolute errors. C. Lowering the Price of Products
A. Tracking signal D. Providing Free Service or Delivery

B. Mean absolute percent error 1074. Advisory boards:
C. Mean absolute deviation (MAD)
A. Help a company to stay informed about
D. Substitution industry trends, community programs,
etc.
1070. WHICH IS NOT A FUNCTION OF MAN-
AGEMENT B. Only work in an educational setting.
A. OPERATIONAL C. Are comprised of friends and family,
B. MARKETING not business experts.
C. COORDINATING D. Should always be paid for their ser-

vices.
D. FINANCE
1071. Which tasks need to be completed prior 1075. Doing Things Right is
to completing Task D? A. Effectiveness
B. Economy
C. Element
D. Efficiency
1076. Effective capacity is

A. Percentage of effective capacity actu-
A. A, B only ally achieved
B. A, B, C only
B. Percentage of design capacity actually
C. A, B, E, F only achieved
D. A, B, C, E, F only C. The capacity a company expects to
achieve based on current operating con-
1072. It is an organized complex of inter-
straints
dependent components or subsystem de-
signed to achieve some objectives. D. Utilization and Efficiency

1077. Regardless of the method used to in- B. Decreasing market share

spect work in process, the final inspection C. Reducing production volume
of the product should probably have done

by an independent inspection department D. Increasing production costs
which does not report to production super-
1082. Financial ratio plans and designs for
visors.
the delivery, distribution, storage, collec-
A. Inspecting Purchased Items tion, and removal of occupant-generated
B. ISO 9000 Series of Standards streams of materials and services.
C. Inspecting Work in Process A. true
D. Testing B. false
1078. Nestle has a decentralized organiza- 1083. Jorge is supervising new employees
tional structure, which allows its sub- with no experience in food service at a
sidiaries to operate with a high degree of concession stand in an amusement park.
autonomy. This structure allows Nestle to Which management style should he use?
respond quickly to local market conditions
A. authoritative management
and consumer preferences, while still ben-
efiting from the economies of scale that B. democratic management
come with being a global company. C. mixed management
A. True D. participatory management
B. False
1084. Quality strategy is the determination of
1079. What is the following task the overall quality objectives of an organi-
word:DefineAdvantage BLTDisadvantage sation and the methods by which these ob-
BLTOverall jectives will be attained.
A. Explain A. True
B. Explain How B. False
C. Evaluate
1085. 1) More guests showing up than ex-
D. Discuss pected at a party is an example of
1080. There are two different approaches on A. Demand Variability
how to perform the analysis, which de- B. Supply Variability
pend on what type of competitive advan-
tage a company wants to create, it in- C. Demand Inflexibility
cludes? (choose two answers) D. Supply Inflexibility
A. cost advantage
1086. What should an organization do to max-
B. focus advantage imize the profit
C. differentiation advantage A. Provide high production costs
D. niche advantage B. Provide the highest distribution costs
1081. How can economies of scale be C. Provide the lowest inventory invest-
achieved? ment
A. Increasing production volume D. Provide little customer service

1087. What is INPUT? B. Efficient Utilisation of Capacity

A. The final result obtained after the C. Longer Lead Time
transformation process.
D. Increased Productivity
B. Basic materials needed for the pur-
pose of producing goods. 1093. Is dependent on the nature of the prod-
C. The conversion of inputs into outputs. uct or servuce rendered by the firm
D. Control mechanism to measure the ac- A. Directing
NARAYAN CHANGDER
tual performance.
B. A material transformation process
1088. Which among these is under “Procure-
ment” in the supply chain management?
A. Raw Materials D. A material process flow
B. Outbound Logistics 1094. The COVID-19 pandemic created mas-

C. Manufacturing sive demand for PPE in hospitals. Even
D. none of above though hospitals during more normal times
compete for patients, the importance of
1089. A manufacturer would use for re- having PPE in-stock at the right hospital is
peated production that commits to a pro- absolutely critical for public health. Which
duction rate. risk-hedging strategy might these hospi-
tals use to ensure supply of PPE?
A. repetitive manufacturing
B. job shop A. Use a “Coopetition” risk hedging strat-
egy
C. discrete manufacturing
B. Each hospital should source from addi-
D. process manufacturing
tional suppliers of PPE
1090. The organizational structure outlines all C. Build significant amounts of inventory
of the rules, policies, and procedures that for “Just in Case” scenarios
a business must follow.
D. none of above
A. True
B. False 1095. Which business function deals with plan-
ning, organising and controlling the differ-
1091. 1) The many flavors of ice-cream of-
ent elements and stages of the production
fered by ice-cream parlors are reflective
process?
of the of today’s customers.
A. bargaining power A. Operations management
B. homogeneous preferences B. Marketing

C. heterogeneous preferences C. Human resources management
D. knowledge base D. Finance and accounting
Explanation:Operations management is
1092. Which two options here represent the the business function which deals with
objectives of Production Management? which goods and services are produced
A. Production engineering and how they are to be produced.

1096. refers to the development of the correct C. coordination problems

part for the conditions to which that part D. financial
will be subjected.

A. Quality Control 1101. What is Copyright Infringement?
B. Quality Control in Production A. anyone who uses someone work with-

out permission
C. Reliability
B. a copy of someone work
D. Quality Checking
C. anyone who uses copyright owners
1097. What is the purpose of a crossover work with permission
chart? D. a picture of someone work
A. To determine the most economical op-
1102. It is the components or raw materials
tion based on fixed costs and variable
that has undergone some changes but not
costs
complete or called unfinished product.
B. To compare the characteristics of dif-
A. Work-in-process
ferent types of processes
B. Raw material
C. To analyze and design process flows
C. Finished goods
D. To identify potential failure points in
service processes D. Maintaining or Repairing
1098. Which one is the definition of TQM? 1103. A system that addresses the layout re-
quirements of stationary projects.
A. Sampling products at the end of the
production process.
A.
B. Achieving better quality is focused on
inspection.
C. One, nominated person is responsible
for quality throughout all stages of the B.
production process.
D. Everyone is responsible for quality
throughout all stages of the production C.
process.
1099. Raw materials, labor, machinery, and

electricity are considered factors of produc- D.
tion (Inputs).
A. cheap
1104. Which of the following is the least likely
B. wrong
decision to be made by the operation man-
1100. factors that cause average costs of pro- ager?
duction to rise when the scale of operation A. Selection of location and layout
is increased B. Designing jobs of the workplace
A. purchasing problems C. How to use quality technique to reduce
B. alienation of the workforce waste

D. How much capacity is required to bal- 1110. As a business owner, it is important

ance demand for you never to make exceptions to rules,
policies, and procedures once they are es-
1105. Shift in demographics and customer de- tablished because, if you do, customers
mand is one of the strategic importance of and employees will become confused.
location decisions.
A. true
A. True
B. false
B. False
NARAYAN CHANGDER
1111. It is a sequence of activities and organi-
1106. What is:fixed costs + variable costs zations involved in producing and deliver-
A. Fixed Costs ing a good or service.
B. Variable Costs A. Operations
C. Total Costs B. Distribution
D. Average Cost per Unit C. Supply Chain

D. none of above
1107. What marked a shift towards efficiency
and structured processes in the early 20th 1112. The term is used to describe a spe-
century? cialized area in management that converts
A. Decentralized production or transforms resources into goods and
services.
B. Scientific Management
A. Operations Management
C. Mass production and factory culture
D. Technological Revolution
C. Production Management
1108. It refers to the maximum number of D. Shipping Management
units the company is capable of producing
in a specific time. 1113. These problems are caused by disec-
onomies of scale
A. Design Capacity
A. difficult to manage a larger scale of
B. Break-even Analysis
business
C. Capacity Analysis
B. poor communication
D. none of above
C. slow decision making
1109. This is an unambiguous definition that D. all are correct
measures quality and determines a good
that manufactured or service that is deliv- 1114. The following are all important criteria
ered or designed. in determining a facility location EXCEPT:
A. Product perspective A. natural resource abundance
B. Users perspective B. financial incentives
C. Manufacturing perspective C. environmental regulations
D. Value perspective D. expansion potential

1115. Who among the following is associated A. TRUE

with contributions to quality control in op- B. FALSE
erations management?

A. Charles Babbage 1121. The following type of layout is pre-
ferred to manufacture a standard product
B. Henry Ford
in large quantity
C. Frank Gilbreth
A. Product layout
D. W. Edwards Deming
B. Process layout
E. Henri Fayol
C. Fixed position layout
1116. What does the lean system consist of D. Combination layout
A. Complex and redundant structure
1122. Traditional Culture is an organizational
B. Small-batch FLEXIBLE mass produc- value system that results in an environ-
tion ment that is conducive to the establish-
C. Large-batch mass production ment and continual improvement of qual-
ity.
D. none of above
A. True
1117. general principles of QA (choose 2)
B. False
A. fit for use
B. right the first time 1123. Six Sigma Step 5:Control
C. satisfaction at its fines A. The process to ensure the improve-

ments continue.
D. graded result
B. The quality problem of the process
1118. is the study of how customers de- C. The Current performance of the pro-
rive utility from products or services cess
A. Marketing
D. The process to identify the root causes
B. Operations of the quality problem
C. Economics
1124. One of the decision areas in OM where
D. Management it is determined how to provide a reason-
able work environment and expectations
1119. Why is it important to involve employ-
to employee production
ees in the operational improvement cycle?
A. Intermediate and short term schedul-
A. To expand the business globally
ing
B. To reduce customer satisfaction
B. Process and Capacity Design
C. To maximize efficiency and eliminate
C. Human resources and job design
unnecessary tasks
D. Design of goods and services
D. To increase employee salaries
E. Maintenance
1120. TRUE or FALSEThe culture of services is
usually more scientific and service employ- 1125. The term encompasses planning, im-
ees typically thinks more in terms of pro- plementing, and supervising the produc-
cesses, measurements, and data. tion of goods or services

A. OPERATIONS MANAGEMENT C. Businesses products can be tailored

B. OPERATION MARKETING specifically to their customer needs
D. Businesses require a wider range of in-
1126. Philip B. CrosbyChoose Two: puts in the operations process
A. -Coined phrase “quality is free”
1131. What is the difference between job pro-
B. Introduced concept of zero defects.
duction and batch production?
C. Identified concept of “internal cus-
A. Job production involves producing a
NARAYAN CHANGDER
tomer”
large number of identical items, while
D. Developed Taguchi Loss function batch production involves producing a
small number of unique items
1127. Six Sigma Step 4:Improve
A. The process by eliminating the root B. Job production involves producing a
causes of the problem unique item, while batch production in-
volves producing a large number of iden-
B. The process to ensure the improve- tical items
ments continue.
C. Job production and batch production
C. The quality problem of the process are the same thing
D. The Current performance of the pro-
cess
1128. Which of the following activities is 1132. What is the purpose of sprint planning
R+D/Innovation most closely related to? in agile project methodology?
A. Paying suppliers A. To schedule tasks for each team mem-

ber
B. Motivating staff
B. To ensure everyone understands the
C. Market research
end goal of the project
D. Managing inventories
C. To create a list of features for the final
1129. In the LONG TERM FORECASTING, the product
seasonal pattern of demand and the effect D. To evaluate the team’s performance
of tactical decisions on the customer de-
mand are taken into consideration. 1133. Skilled workers are required in flow pro-
A. CORRECT duction.
B. INCORRECT A. True
C. SOMEHOW CORRECT B. False
D. EITHER CORRECT OR INCORRECT
1134. Objective of Work Study is to improve
1130. The advantage of standardising prod-
ucts: A. Cycle time
A. Businesses can achieve economies of
B. Productivity
scale
C. Production
B. Businesses can justify charging higher
prices D. All of the above

1135. A disadvantage of forecasting is: C. 1.Raw ingredients2.Equipment3.Robotics4.Information5.Ti

A. Can anticipate seasonal changes and efficiency

B. Can help prevent over-ordering D. none of above
C. it is not always accurate 1141. Limitations of Traditional cost account-
D. Reduction in storage space ing are
A. Assumes factory as an isolated entity
1136. (a) It is the organized approach to af-
fecting customer perceptions. B. It measures only the cost of producing
A. a Perception Management C. both (A) and (B)
B. Preference Management D. none of the above
1137. JIT eliminates the costs that come with 1142. One of the disadvantages of JIC is
extra raw materials, unneeded inventory A. high costs are associated with inven-
and product storage, thus it- tory holdings
A. reduced waste B. economies of scale from very large or-
B. improved efficiency ders
C. raised inventory ratio C. capital invested in inventory is re-
D. reduce defective product loss duced
D. delivery costs will increase
1138. Branch of Philosophy concerned the na-
ture and scope of knowledge, its presup- 1143. Short term regular variation related to
positions and basis, and the general relia- the calendar or time of day is known as,
bility of claims to knowledge. A. Trend
A. Psychology B. Seasonality
B. Theory C. Cycles
C. Principles
D. Random variation
D. Theory of Knowledge
1144. It is the analysis that classified the in-
1139. The process of setting standards for the ventory into 3 items, A class, B class and
operation of a business and ensuring those C class.
standards are met is called
A. Record accuracy
A. supervising
B. ABC analysis
B. staffing
C. Cycle counting
C. controlling
D. Control of service inventories
D. implementing
1145. These are the constraints on human re-
1140. The five categories of inputs include source strategy
A. 1.Raw materials2.Capital equip- A. Product strategy
ment3.Labour4.Information5.Time
B. Process strategy
B. 1.Raw materials2.Capital equip-
ment3.Labour4.Time and efficiency4.Mass C. Company strategy
production D. Location Strategy

1146. Product quality is not an important de-

terminant of business profitabilty
A. True
B. False
1147. He influenced the development of a par-

ticipative, bottom-up view quality.
A. Social technologies
NARAYAN CHANGDER
A. Fragrant Ishikawa
B. Green technologies
B. A.V. Fig tree
C. Radical innovations
C. Philip Crosby
D. Incremental innovations
D. Joseph Duran
1152. To ensure that the plans for the opera-
1148. Fordism was developed within the tions subsystem are accomplished, the op-
societal system of production erations manager must exercise control by
A. US measuring actual outputs and comparing
them to planned operations management.
B. France
A. CONTROLLING
C. Mexico
B. PURCHASING
D. Japan
1153. Marty McDonald owns a packaging soft-
1149. Weaknesses of EOQ formula (choose 4)
ware business in Wisconsin. Annual
A. Ordering costs are constant per order fixed costs are $10, 000, direct labor
B. Faulty basic information costs are $3.50/pack, and materials are
$4.50/pack. Selling price $12.50/pack.
C. Costly calculations What is BEP in dollars?
D. No formula is substitute for common- A. $12.222
sense
B. $21.111
E. EOQ ordering must be tempered with
C. $27.777
judgment
D. $13.888
1150. The primary goal of operations manage-
E. $15.625
ment is to maximize profits
A. True 1154. An inventory lead time is
B. False A. The maximum level of inventory a Busi-
Explanation:The primary goal of opera- ness can or wants to hold
tions management is to create and deliver B. The average delay in handling cus-
goods and services that meet customer tomer orders
expectations in the most efficient and ef-
C. the amount of time between placing
fective way possible.
an order with a supplier and receiving the
1151. Environmentally friendly innovations stock
that considers long-term impact on the en- D. the time taken to process outstanding
vironment sales orders

1155. What is the definition of job production? 1160. Which of the following does NOT im-
A. Producing a single unique item prove productivity?

B. Producing a small number of the same A. Delayering
item B. Training
C. Producing a large number of items at
C. Diseconomies of scale
the same time
D. none of above
D. The breakdown of exactly how the
manufacture of a good, or activity, is to
1161. Ability to quickly change production to
be carried out
other products/services
1156. The 3 Stages of Location Analysis Tech- A. Service
nique are:-
B. Flexibility
A. Regional DecisionLocal DecisionSite
Decision C. Responsiveness
B. International DecisionLocal Decision- D. Speed
Site Decision
C. Regional DecisionLocal DecisionSide 1162. Employees have no say:one person
Decision makes all decisions quickly and without
consent.
D. Regional DecisionLocational Decision-
Site Decision A. Demorcratic Style
1157. The main objectives of Material Require- B. Autocratic Style

ment Planning (MRP) are: C. Consulting Style
A. Reduce production time D. Laissez-Faire Style
B. Optimizing the use of raw materials
1163. Product Layouts:Select Two
C. Minimize labor costs
D. Speed up the delivery process A. Processing rates are faster
B. Lower material handling costs
1158. Which of the following is not forecast-
ing techniques? C. Slower processing rates
A. Judgmental D. High material handling costs
B. Time series
1164. What is the challenge of operations
C. Time horizon management related to collaboration?
D. Associative
A. Achieving effective collaboration with-
1159. Which Lean tool is related to the contin- out losing time
uous supply of components to work sta- B. Losing time without achieving effec-
tions? tive collaboration
A. Just In Time (JIT)
C. Achieving effective collaboration by
B. Error Proofing/Poka-Yoke losing time
C. Kaizen D. Not achieving effective collaboration
D. Value Stream Mapping and not losing timeAnswer:A

1165. It is “the practice of designing and react- C. Online and Online real-time Quality
ing to customer interactions to meet or ex- Management
ceed their expectations, leading to greater D. Floor Inspection
customer satisfaction, loyalty, and advo-
cacy” 1170. Which of the following is an example of
A. customer management a fixed cost in production?
B. customer experience management A. Raw materials

B. Rent for a factory
NARAYAN CHANGDER
C. customer satisfaction
D. none of the above C. Electricity bill
D. Wages for workers
1166. Statement describing the objective 0f a
job 1171. Which one of the following statements
is more of a general characteristic of a ser-
A. Job description
vice organization, as compared to a manu-
B. Job Specification facturing organization?
C. Organiztional Chart A. Output can be inventoried.
D. Rules B. The response time is longer.
1167. Capacity planning is the process of de- C. There is less customer contact.
termining how much output a system can D. The facilities tend to be smaller.
produce over a given period of time.
1172. Inventory is another word for:
A. True
A. Stock
B. False
Explanation:Capacity planning is the pro- B. Finance
cess of determining how much output a C. Staff
system can produce over a given period
D. Managers
of time. It is important to ensure that a
system has enough capacity to meet cus- 1173. A part of quality management focused
tomer demand, without over-investing in on fulfilling quality requirements.
capacity and incurring unnecessary costs.
A. quality control
1168. NEED FOR SELECTING A SUITABLE SITE B. quality assurance
OR LOCATION (CHOOSE 3)
C. quality management
A. STARTING A NEW FACTORY
D. quality audit
B. EXPANSION
1174. Large firms are often able to buy the
C. RELOCATION
materials, components they need in bulk.
D. FRANCHISING Suppliers usually offer price discounts for
bulk purchases.
1169. This is sorting inspected parts by size
so that over-and undersize parts can be A. financial economies
matched. B. risk-bearing economies
A. Process Control C. marketing economies
B. Selective Inspection D. purchasing economies

1175. One of the finance department job is to 1181. What is the center-of-gravity method
do a branding for a goods or services. used for?

A. True A. To find the location of distribution cen-
B. False ters that minimize distribution costs
B. To determine the importance of vari-
1176. It serves as the engine room of the or- ous factors in location decisions
ganization, planning and driving manufac-
turing or services. C. To analyze the geographic information
of different locations
A. OPERATIONS MANAGEMENT
D. To calculate the revenue focus of ser-
B. MARKETING
vice organizations
1177. The marketing function’s main concern is
1182. Armand V. Feigenbaum
with
A. Introduced concept of total quality con-
A. producing goods or providing services
trol
B. procuring materials, supplies, and
equipment B. Introduced concept of zero defects.
C. building and maintaining a positive im- C. -Developed Cause-and-effect dia-

age grams
D. generating the demand for the organi- D. -Focused on product design quality
zation’s products or services
1183. Capacity Utilisation is 40% and present
1178. What is the formula for calculating total output is 600 units. What is the capacity?
cost? A. 1200
A. Fixed cost + variable cost B. 2400
B. Selling price-variable cost C. 240
C. Fixed cost-variable cost D. 1500
D. Selling price + variable cost
1184. Outlines for appropriate employee be-
1179. Materials management can deal with havior and actions are called
campus planning and building design for A. rules
the movement of materials, or with lo-
gistics that deal with the tangible compo- B. policies
nents of a supply chain. C. procedures
A. true D. mandates
B. false
1185. It is occurs when an object is intention-
1180. Queuing system essential feature in- ally changed in one or more of its charac-
cludes teristics (physical or chemical).
A. Queue configuration A. Operation
B. Product process B. Inspection
C. Quality C. Storage
D. Human Resource process D. Delay

1186. The features of a product or service that decline in overall profits as international
most, if not all, customers prefer are called competitors gain more market share in
the chocolate industry. Subsequently, the
A. Consensus attributes CEO, Gigabo, is considering moving produc-
tion to Malaysia to help the business re-
B. Consumption attributes main competitive.Identify which of the fol-
C. Fit attributes lowing statements best describes the ob-
D. Performance attributes jectives of Rollio Chocolate.
NARAYAN CHANGDER
A. Increase global competitiveness in the
1187. What is the meaning of total costs in chocolate industry
production?
B. Sell 100, 000 units of chocolate in Aus-
A. Also known as overhead costs, are tralia
C. Solely manufacture and sell chocolate
within Australia
B. costs that change directly with the D. All of the above
number of items produced or sold.
C. refer to the sum of fixed and variable 1191. Which term describes taking human fac-
costs in production. tors into account when making sustainable
business decisions which may affect work-
D. calculated by dividing total cost of pro- ers and the local community?process of us-
duction by total output. ing resources to their best advantage, en-
suring profitability and financial sustain-
1188. Which of the following is a strategy a
ability?
business can use to encourage faster pay-
ment? A. Ecological sustainability
A. increase the amount of time your cus- B. Social sustainability
tomers have to pay their bills C. Economic sustainability
B. offer discounts on bills paid right away D. The triple bottom line
C. send shipments early to show cus- Explanation:Social sustainability refers to
tomers you trust them organizations being aware of their so-
cial responsibility to workers (as internal
D. all of the above strategies will encour- stakeholders) and local communities (as
age faster payment external stakeholders). This means that
1189. Identify whether the following charac- working conditions are fair and accept-
teristics of operations relate to a manu- able and the local community is not ad-
facturing and/or service business. Utilise versely affected by the operations of the
forms of technology in operations. organization.
A. Manufacturing 1192. Which of the following is a benefit of

implementing a quality management sys-
B. Service
tem?
1190. Rollio Chocolate is a confectionery busi- A. Reduced customer satisfaction
ness that produces in Australia and dis-
B. Enhanced product quality
tributes their final products to countries in-
cluding the United States and the United C. Decreased operational efficiency
Kingdom. Currently, Rollio is facing a D. Weakened supplier relationships

1193. Regardless of how departments like Ac- A. TRUE

counting, Engineering, Finance, and Mar-
B. FALSE
keting function in an organization, they

are all linked together through:
1198. of Bell Telephone Laboratories, USA
A. management. in 1924 developed statistical quality con-
B. processes. trol methods for the improvement of man-
ufacturing quality.
C. stakeholders
A. F.Taylor
D. customers
B. W. Schewart
1194. What are performance objectives in op-
erations management? C. W.Edwards Deming
A. Goals that relate to particular aspects D. J.Juran

of the transformation process
1199. Seasonal inventory is maintained
B. Goals that negatively impact the busi-
ness A. To meet fluctuations in demand
C. Goals that increase costs for the busi- B. To plan and control multi-stage produc-
ness tion process
D. Goals that reduce efficiency and pro- C. due to lead-time in transport and re-
ductivity ceipt of material
1195. Promotions and demotions. These are D. None

products subject to wide fluctuations in
sales, often being sold at a reduced price 1200. Efficient inventory management can
or as part of another sales incentive. help companies:
A. True A. Increase sales
B. False B. Reduce storage costs
C. Either C. Speed up production
D. Maybe D. All True
1196. Employees make their own decisions; 1201. Lean production essentially means the
Little to no manager involvement elimination of
A. Democratic Style
A. Labour
B. Autocratic Style
B. Time
C. Consulting Style
C. Waste
D. Laissez-Faire Style
D. Problems
1197. JIT inventory management do not rely
on precise forecasting and strong relation- 1202. The role of support activities is to help
ships with key suppliers. When something make the primary activities more efficient.
goes wrong with either of those, that’s a
A. True
problem because there are no backup op-
tions in place. B. False

1203. He is the proponent of the Value Chain 1209. Process focus also known as Intermit-
A. Michael E. Porter tent process.
B. Michael E. Port A. Yes
C. Michael E. Porter B. No
D. none of above 1210. Which of the following would NOT nor-
mally be considered as a ‘costs of qual-
1204. is a principle of the overarching Demand
ity’?
Management process found in most manu-
NARAYAN CHANGDER
facturing businesses A. Prevention costs
A. Demand Control B. Warranty costs
B. Demand Management C. Inspection costs
C. Demand of Supply D. Marketing costs
D. Demand of Time E. Internal failure costs
1205. Improving quality through small, incre- 1211. Which are the inputs for the operations
mental improvements is a characteristic
A. Market Inputs
of what type of quality management sys-
tem? B. External inputs
A. Just-in-time C. Primary inputs
B. Six Sigma D. All of the above
C. Total Quality Management 1212. Productivity measures the effective use
D. Kaizen of resources, usually expressed as the ra-
tio of output to input. Productivity ratio
1206. Perform random inspections on product, can be computed for a worker, a depart-
Test and evaluate products, Test effective- ment, an organization and a country. True
ness of processes, and Give feedback for or False
improvement are the jobs of
A. True
A. Quality Assurance Teams
B. False
B. Quality Control Teams
1213. Layout designs are compared basis on
1207. What is the most important factor for
business in agriculture? A. Material cost
A. wage of workers. B. Location cost
B. raw materials. C. Material handling cost
C. type of land. D. Rent cost
D. rent of property.
1214. acts as a precaution for both theem-
1208. Which is NOT a capital? ployee and the corporation.
A. Machines A. Medical Examination
B. Raw materials B. Initial Interview
C. Power Plant C. Training
D. Bulldozer D. Examination

1215. By cooking and dressing burgers before 1220. A car manufacturer “Maudi Ltd” has an-
customers order them, a fast-food restau- nounced that the first 6 services on a new
rant is sacrificing the dimension of and car will be free of charge. What type of

improving the dimension of in the cus- operation process is this?
tomers’ utility function. A. Output
A. Timing, Fit B. Transformation
B. Fit, Timing
C. Input
C. Timing, Price
D. Cost leadership reduction
D. Price, Timing
1221. Which one of the following is most likely
1216. It happens when guests use an arti- to be manufactured in a jobbing process de-
ficial experience to travel-physically or sign?
mentally-to somewhere other than their
A. Wedding Invitations
usual reality
B. Petrol
A. Escape
C. A bridge
B. Escapism
C. Escapism D. To Nissan Tiida
D. None of the above 1222. 1) Jerry is very frugal and always pur-
chases the least expensive items when-
1217. Measuring the degree of success in ever he goes to the store. Which dimen-
achieving a goal or objective sion of the customer utility function seems
A. Efficiency to be most important to Jerry?
B. Effectiveness A. Performance
C. Value B. Timing
D. none of above C. Price
1218. which facility layout best suits the mass D. Location
production scenario?
1223. In the 4 stages of the Hotel Guest Cycle,
A. Process the OCCUPANCY stage is the part where
B. Product the guest is already staying at the hotel.
C. Cellular A. True
D. Fixed Position B. False
1219. If all the processing equipment and ma- 1224. Which of these is an example of mecha-
chines are arranged according to the se- nisation?
quence of operations of a product the lay- A. Digging a ditch using a JCB earth
out is known as mover
A. Product layout B. An ATM
B. Process layout C. Autopilot on an airplane
C. Fixed position layout D. Counting paper ballots in an election
D. Combination layout by hand

1225. Define buffer inventory level. 1230. A long-range plan for a business.
A. the output measured against the in- A. Multifactor productivity
puts used to create it. B. Mission
B. the inventory held to deal with uncer- C. Business strategy
tainty in customer demand and deliveries
of supplies. D. Order qualifiers
C. refers to techniques used by busi- 1231. The use of checks and inspections at var-
NARAYAN CHANGDER
nesses to cut down on waste and increase ious points in the production process to en-
efficiency, often by reducing product de- sure products meet designated standards
velopment time. and to identify problems and defects is
known as:
D. Japanese term that means ‘continuous
improvement through the elimination of A. Quality Control
waste.’ B. Total quality management
1226. The product development continuum C. Quality assurance
refers to the stages that a product goes D. Benchmarking
through from ideation to fabrication only.
1232. TRUE or FALSE Malcolm Baldrige, former
A. True
U.S. Secretary of Commerce, helps provide
B. False guidance for other American companies.
1227. What are the objectives of operations A. TRUE

scheduling? B. FALSE
A. Reducing the output 1233. Which of the following is NOT an oper-
B. Improving the service level ations decision?
C. Ignoring the labor A. Setting the price of a product
D. Decreasing the profit B. Determining production quantities
C. Selecting suppliers
1228. It is the person or thing upon which the
service is enacted. D. Planning maintenance schedules
A. service provider 1234. Competing on cost is
B. service object A. based upon low-cost leadership.
C. service enacter B. concerned with uniqueness.
D. None of the above C. concerned with reliability of schedul-
ing.
1229. This is an organization’s action plan to
D. based on flexibility.
achieve the mission.
A. Strategy 1235. It is an internal document that clearly
states the essential job requirements, job
B. Vision
duties, job responsibilities, and skills re-
C. Objectives quired to perform aspecific role.
D. Goals A. Job Specification

B. Job Description A. 1980s,

C. Application Form B. 1990s

D. Job Requirements C. 1970s
1236. (a) These are forecasting methods that D. none of above

are subjective or qualitative in nature. 1241. What is the purpose of controlling in op-
A. a Subjective erations management?
B. Predictive A. Monitor production processes
C. Causal B. Assess performance against targets
D. Time-Series C. Implement corrective actions
D. All of the above
1237. is the continual process of detecting
and reducing or eliminating errors in man- 1242. What does “quality” mean in terms of
ufacturing, streamlining supply chain man- production?
agement, improving the customer experi-
ence, and ensuring that employees are up A. to producing goods or services that
to speed with training. meet or exceed customer expectations.
A. Total Quality Management B. process of checking for quality at the

end of production using inspectors.
B. Quality
C. checking for quality standards
C. Traditional Approach throughout the production process by em-
D. Quality Management System ployees.
1238. These are commonly known as foils,
which are imperative for flight.
A. Wings 1243. What is Plagiarism?
B. Winglets A. The exclusive legal right, given to an
originator or an assignee to print, publish,
C. Aileron
perform, fild, or record work
D. Spoiler
B. To present the words and ideas of
1239. Four level of product customization are someone else as your own, without giving
stated below, except credit
A. Make to stock C. A reference to an author of a given
work that can include name, title, page
B. Make to order number, and date.
C. assemble to order D. To re-work the ideas, words, phrases,
D. Engineer to order and sentence structures of others and
E. Group technology retell them in your own words
1240. In what year TQM became more per- 1244. is computed by taking the MAD, dividing
vasive and is an area of operations man- by the average demand, and then multiply-
agement that no competitive company has ing by 100.
been able to ignore. A. Mean absolute percent error

B. Tracking signal 1250. Supply is the set of products or services

C. Mean absolute deviation a business offers to its customers.
D. Standard deviation A. True
B. False
1245. What is the most likely reason for an
Australian clothing business choosing to 1251. The attractiveness to the operation of a
manufacture locally? process, product or service.
A. To achieve cost leadership
NARAYAN CHANGDER
A. Acceptability
B. To maintain quality control
B. Feasibility
C. To focus on other key business func-
tions C. Vulnerability
D. To take advantage of lower overseas D. Japanese Approach
wages
1252. Marketing can provide valuable insight
1246. This method keeps track of inventory on what market are doing.
levels on a daily basis.
A. TRUE
A. Perpetual Inventory Method
B. FALSE
B. Periodic Inventory Method
C. Cost of Being Out of Stock 1253. Which stage of the operational improve-
ment cycle involves developing and imple-
D. Cost of Carrying Inventory menting new processes?
1247. A mission statement contains an organ- A. Change Management
isation’s
B. Process Design
A. deadlines and targets
C. Data Collection
B. identity and purpose
D. Gap Analysis and Iteration
C. operational plan
D. diversity policy 1254. The main objectives of capacity planning
are to:
1248. is NOT a type of Capacity Planning
Technique A. Maximize machine use
A. Resource Capacity Planning B. Achieve the highest level of efficiency
B. Production Capacity Planning C. Fulfill market demand effectively
C. Excessive Capacity Planning D. Reduce labor costs
D. Process Capacity Planning
1255. All of the following decisions fall within
1249. Occurs when the capacity of the natu- the scope of operations management ex-
ral environment meets the needs of the cept for
present population without endangering A. financial analysis
the ability of future generations to meet
their needs. → Ecological sustainability B. design of goods and processes
A. True C. location of facilities
B. False D. managing quality

1256. If I’m asked to “propose” in Business 1262. The ‘throughput’ or number of units a
Management, I need to facility can hold, receive, store, or produce
in a period of time.

A. Get down on one knee and profess my
love for the subject A. Capacity
B. Make a relevant or appropriate sug- B. Inventory
gestion in response to the case study
C. Process Design
1257. to knowing what customer need and D. Layout Decisions
want.
A. Customers’ requirement 1263. What occurs during the project planning
phase?
B. Customers’ demand
A. Negotiating contracts, managing fi-
C. Customers’ supply nancial transactions, conducting perfor-
D. Customers’ specification mance appraisals
B. Conducting market research, develop-
1258. Businesses use MRP systems, which are
ing product prototypes, creating advertis-
A. subsets of supply chain management ing campaigns
systems
C. Selecting project team members, out-
B. to efficiently manage inventory lining deliverables, estimating required
C. schedule production and deliver the resources
right product-on time and at optimal cost D. Hiring new employees, setting up of-
D. All are correct fice infrastructure, establishing company
policies
1259. Gantt chart is used as;
1264. ISO 9000
A. a planning tool
A. Control trade into the then0emerging
B. scheduling tool
European Economic Community (EEC)
C. control mechanism
B. The standard for certification of a
D. none of the above firms quality management system. It is
1260. Competitive priorities that win orders in quality management systems to meet cus-
the marketplace. tomer requirements
A. Order winners
C. Provides guidelines for establishing a
B. Infrastructure quality management system. It focuses
C. Structure not only on meeting customer require-
D. Order qualifiers
1261. Activities related to the creation of certification focusing on a company’s en-
goods or services by converting or trans- vironmental responsibility
forming inputs into outputs.
1265. Marketing is responsible for securing fi-
A. True nancial resources at favorable prices and
B. False allocating those resources throughout the

organization, as well as budgeting, ana- 1271. Which of the following is not part of the
lyzing investment proposals, and provid- key elements of Total Quality?
ing funds for operations. A. Obsession with Quality
A. TRUE B. Short-term Commitment
B. FALSE C. Employee Involvement and Empower-
1266. Consists of inputs, activities and out- ment
puts D. Continual Process Involvement
NARAYAN CHANGDER
A. A material process flow
1272. (a) The dominant operating system in
B. Product Planning a hotel that coordinates reservations and
C. A material transformation process sales management with rooms control,
housekeeping, and other operating activ-
D. A degree of repetitiveness
ities.
1267. What are the challenges in OM? A. a Property Management System
A. Global Force B. Proper Management System
B. Limited Resources C. Central Management System
C. Sustainability D. none of above
D. Supply chain partnering
1273. Quality means
1268. What is a common failure of operation
A. Produce goods and services which
management related to poor planning and
does not meet customer requirements
forecasting?
B. Produce services which does meets
A. Lost opportunities
customer requirements
B. Increased costs
C. Produce goods and services which
C. Customer satisfaction does meet customer requirement
D. Customer complaints D. Produce goods that meet customer re-
1269. declining sales and profit; product might quirements
be dropped or replaced are characterisitics 1274. Below is the method to evaluate capac-
of stage of product life cycle ity strategies in industry:
A. Introduction A. Expected value
B. Growth
B. Six sigma
C. Maturity
C. Forecasting
D. Decline
D. CP and CPk
1270. Which of the following is not a typical
1275. F&B SERVICE is the food production de-
attribute of goods?
partment consisting of the main kitchen
A. output can be inventoried (hot & cold), banquet kitchen, sou section,
B. often easy to automate pantry section, pastry section, baking &
C. aspects of quality difficult to measure confectionery.
D. production and consumption are sepa- A. True

rate B. False

1276. What role does the Analytic Hierarchy C. 8.7 B

Process (AHP) play in Toyota’s supplier se- D. 62 B
lection process?

A. Identifying essential criteria for as- 1281. The maximum order level is:
sessing potential suppliers A. The amount of inventory that the busi-
ness should not fall below
B. Assigning weights to criteria based on
their significance B. The amount of inventory that the busi-
ness should not rise above
C. Engaging in pairwise comparisons to
assess criteria C. The time that it will take for the stock
to be delivered to the business
D. All of the above
D. The maximum amount of stock that the
1277. (a) The technique to schedule employees customer is allowed to order
one day with two time periods with time
off in between. 1282. What is the main purpose of the Takt
time Lean tool?
A. a Split Shift
A. To improve quality
B. Shifting
B. To increase waste
C. Broken Scheduling
C. To meet customer demand
D. none of above
D. To reduce cost
1278. The is the defect level for which lots
are regarded as bad lots. 1283. Which of the following are NOT charac-
teristics of a manufacturing business?
A. Consumer’s risk
A. Customers are often present during
B. Producer’s risk the creation of outputs
C. Lot Tolerance Percentage Defective B. A focus on maintaining quality stan-
D. none of above dards
C. The output produced can be stored
1279. The fundamental rethinking of business
processes to bring about dramatic im- D. The output produced is intangible
provements in performance
1284. The developed into a decade of con-
A. Process Redesign cern over the impact of our industrialized
B. Business Process Reengineering nation upon our environment
C. Computer Aided-Integrated Manufac- A. 1960s
turing(CIM) B. 1970s
D. Flexible Manufacturing Systems C. 1980s
(FMSs) D. 1950s
1280. The total amount of funds allegedly mis- 1285. The upper limit on the workload that
use or misappriated based on COA’s audit an operating unit can handle. It is usually
report due to lack of proper documentation measured as maximum production rate or
is more or less throughput. Alternatively, a major input
A. 67 B is used, e.g., size. This best describes
B. 42 B A. Efficiency

B. Productivity B. Producing goods just before they are

C. Utilization needed in the supply process
D. Capacity C. Producing goods in large quantities to

reduce cost
1286. A management style in which employ- D. None of the above
ees are involved in decision making and
the manager provides less direction is 1291. Basic components of an operation sys-
called tem as below except:
NARAYAN CHANGDER
A. democratic management A. Input
B. mixed management B. Output
C. autocratic management C. Complaint
D. authoritative management D. Feedback
1287. Competitive priorities that must be met 1292. Shows the loading and idle time of de-
for a company to qualify as a competitor partments, machines and facilities.
in the marketplace. A. Gantt Load charts
A. Quality B. Schedule Gantt chart
B. Structure 1293. The management of resources and func-
C. Order qualifiers tions within a business that converts in-
puts into outputs via a series of value
D. Multifactor productivity
adding processes
1288. One of the configurations of Jet Aircraft A. Lean Management
that has a larger and has two (2) aisles. It
B. Processes
can carry over 200 passengers and is also
called a jumbo jet. C. Operations Management
A. Narrow-Body Jet D. Quality Control
B. Wide-Body Jet 1294. A statement defining What business an
C. Jet Props Aircraft organization is in, Who its customers are,
and How its core beliefs shape its busi-
D. Boeing 787 ness.
1289. Beginning inventory + Sales = End- A. Mission
ing inventory B. Order winners
A. gross profit C. Multifactor productivity
B. Net income D. Productivity
C. cost of goods sold
1295. Which of the following lists three exam-
D. Purchases ples of transformed resources?
1290. What is the definition of ‘Just in Time’ A. Customers, information, materials
production? B. Facilities, information, technology
A. Producing goods as per market de- C. Customers, human resources, materi-
mand als

D. Facilities, human resources, technol- 1301. Name the concept for the following
ogy statement:”The difference between ex-
pected quality & perceived quality.”

1296. It is the minimum time by which an activ-
ity can be completed or minimum possible A. Quality.
time. B. Quality exposure.
A. Pessimistic time C. Quantity gap.
B. Most probable time D. Quality gap.
C. Optimistic time 1302. Labour intensive means that the com-
D. Expected time pany will be using different type of ma-
chines for the production process.
1297. Smailes Ltd has fixed costs of $50, 000.
A. Yes
It costs them $2.00 in variable costs to
produce one item. They produce 80, 000 B. No
items. Calculate Smailes Ltd.’s total fixed
costs: 1303. Which of the following would be an ex-
ample of ‘lean production’?
A. $210, 000
A. producing a greater variety of goods
B. $50, 000 with more workers
C. $160, 000 B. holding low stock levels such as with
D. $130, 000 Just-in-Time methods
C. making smaller quantities of goods
1298. The value added by the creation of fin-
than previously
ished goods and services is called Ex-
ample:baker making a cake with ingredi- D. buying the latest equipment to in-
ents crease output
A. assembly 1304. Below are the forecasting techniques:
B. processing A. Qualitative and quantitative
C. form utility B. Time series and causal
D. lean manufacturing C. Moving average
1299. Services are the tangible products cre- D. Linear regression
ated.
1305. The decision on location of plant and fa-
A. True cilities involve
B. False A. Tangible cost
1300. What is the focus of quality manage- B. Intangible cost

ment? C. Tangible and Intangible cost
A. Product quality only D. None of the above
B. Service quality only 1306. Who is your current professor for the
C. Employee satisfaction CBM001 Operations Management? (a)
D. Both product and service quality A. a Prof. May Ann Golo Nollora

B. Prof. Mary Ann Ichon Golo B. 4300

C. Prof. May Ann Nollora Golo C. 4367
D. none of above D. 4360
1307. Identify the example of a key employee. 1311. Operations management

A. Marketing Associate A. involve in obtain funds and tracks the
finance performing
B. Accountant
NARAYAN CHANGDER
B. is the set of activities that transform-
C. Chief Financial Officer (CFO)
ing inputs into outputs
D. Recruiter
C. creates demand and get customers
1308. Which of the following is a claimed ad- D. involve the management of employee
vantage of flow production? from recruitment to retirement
A. Each worker enjoys doing one repeti-
1312. Disruptions in the supply chain can stall
tive job all the time.
the production process.
B. Making a product that allows all con-
A. TRUE
sumer needs to be met
B. FALSE
C. The capital costs of setting up a pro-
duction line are low. 1313. Employee work teams and quality ser-
D. The mass production helps to keep vicecircles provide another source of feed-
costs per unit low. back.
1309. Employee generated guest feedback-
involves a structured interview or sur- B. Guest Input is Important Source of
veytechnique through which employees Data
gather customer perceptions of the service C. Comment Cards
delivery or product. D. SERVQUAL
1314. A materials management strategy used
B. Guest Input is Important Source of to ensure that the right amount of mate-
Data rials are provided exactly when they are
C. Comment Cards required for production.
D. SERVQUAL A. Just In Time
1310. Compute the forecasted sales for Week B. Materials Requirement Planning
4, using a simple moving average, say n = C. Master Production Scheduling
3. D. Forecasting
1315. What is the purpose of anticipation in-

ventory?
A. To compensate for unexpected inter-
ruptions in supply or demand
B. To cope with planned fluctuations in
A. 4000 supply or demand

C. To compensate for unexpected fluctu- global manufacturing leader due in large

ations in supply and demand part to efficient operations.

D. To cope with transportation delays A. True
B. False
1316. All organizations can be separated into
strategic and tactical decision, which differ 1321. It is how to use the information in your
based on product tangibility and degree of financial statements to determine the level
customer contact. of sales you need to achieve to earn a
A. True profit.
B. False A. COST OF BEING OUT OF STOCK
B. COST OF CARRYING INVENTORY
1317. Which of this is not Juran’s Quality Tril-
C. STOCK TURNOVER RATE
ogy
D. ANALYZE SALES
A. Quality Planning
B. Quality Control 1322. Customers buy satisfaction, not just a
physical good or particular service
C. Qualitative Research
A. Product
D. Quality Improvement
B. Quality
1318. it is one of the major challenges facing C. Appearance
hospitality managers in the opening years
D. Satisfaction
of the millennium.
A. Production 1323. Which of the statements below best de-
scribes office layout?
B. Quality Control
A. Groups workers, their equipment, and
C. TQM spaces/offices to provide for movement
D. Delivering Quality Service of information.
B. Addresses the layout requirements of
1319. What are the major determinants of
large, bulky projects such as ships and
volume and revenue for service organiza-
buildings.
tions?
C. Seeks the best personnel and machine
A. Purchasing power of customer- utilization in repetitive or continuous pro-
drawing area, service and image compat- duction.
ibility, and physical qualities of facilities
D. Allocates shelf space and responds to
B. Competition in the area, quality of the customer behavior.
competition, and operating policies of the
firm E. Deals with low-volume, high-variety
production.
C. Cost determinants, management cal-
iber, and operation policies 1324. What is:Selling Price-Variable Costs
D. Attitude toward union, quality of life, A. Revenue
and education expenditures B. Total Revenue Formula
1320. The European countries had just C. Break-Even Point
emerged from the war as the undisputed D. Contribution

1325. Michelle Connor owns a retail store. 1330. Raising productivity will guarantee suc-
In her industry, she needs to keep 3 cess
months worth of inventory in stock at all A. True
times.What is the stock turnover rate in
Michelle’s industry? B. False
A. 4 1331. Which Technological Development is

this?The creation and/or improvement of
B. 2
a connected group of pages on the inter-
NARAYAN CHANGDER
C. 1 net that will be maintained by a business
D. 8 to promote and sell its products.
A. Automated Production Line
1326. TQM philosophy Product design
B. Website Development
A. Products need to be designed to meet
C. Computer Aided Design
D. Computer Aided Manufacturing
B. Quality should be built into the pro-
cess; sources of quality problems should 1332. “the father of scientific management”
be identified and corrected. A. Frederick Taylor
C. Quality concepts must extend to a com- B. Friedrich Taylor
pany’s suppliers
C. Fredie Taylor
D. Main Idea
D. Taylor Swift
1327. Products are defined by: 1333. What are the input resources to any
A. value engineering. transformation process?
B. assembly charts. A. Staff, facilities, materials, information
and customers.
C. engineering drawings.
B. People and machines.
D. value analysis.
C. Processes, people and parts
1328. Conversion of inputs into outputs is D. Information, materials and customers.
known as:
1334. are developed to meet customers’
A. Application of technology
needs.
B. Operations management A. Services
C. Manufacturing products B. Quality Control
D. Product C. TQM
1329. This is the ability of an operation to pro- D. Delivering Quality Service

duce a process, product or service. 1335. Indian equivalent of ISO can be;
A. Acceptability A. ISI by BIS
B. Feasibility B. ISI by FSSAI
C. Value Engineering C. ISI by DMI
D. Japanese Approach D. ISI by MNS

1336. Operations management is important to 1340. Sustainability is defined as

an organization’s performance because it A. meeting our needs now by reducing,
is responsible for creating and delivering

reusing and recycling.
the goods and services that customers
want. B. Doing the right thing so that the envi-
ronment is not damaged
A. True
C. A series of goals created by the United
B. False Nations, known as the SDGs, to help make
Explanation:Operations management is the planet more sustainable
important to an organization’s perfor- D. meeting our needs without harming
mance because it is responsible for cre- the environment, people and the economy,
ating and delivering the goods and ser- now and in the future.
vices that customers want. If operations
management is not effective, the organi- 1341. Which are the TWO (2) characteristics
zation will not be able to meet the needs of manufactured product/good?
of its customers and will likely lose market A. Capital intensive and high interaction
share to competitors. with customers
1337. Which of the following is NOT a char- B. Quality is objectively determined and
acteristic of the products produced by a labor-intensive
MANUFACTURING business? C. The product can be inventoried and
tangible product
A. They are tangible.
D. Labor intensive and capital intensive
B. They can be stored as inventory.
C. Production and consumption occur 1342. What are the advantages of economies
separately. of scale?
A. Increased efficiency, higher produc-
D. High degree of contact between em-
tion costs, reduced bargaining power with
ployees and consumers.
suppliers, and lower profit margins.
1338. is the time that elapses between B. Higher production costs, decreased ef-
issuing replenishment order and receiving ficiency, reduced bargaining power with
the material in stores. suppliers, and lower profit margins.
A. Replenishment time C. Decreased efficiency, higher produc-
tion costs, reduced bargaining power with
B. Lead time suppliers, and lower profit margins.
C. Idle time D. Lower production costs, increased ef-
D. All of these ficiency, improved bargaining power with
suppliers, and higher profit margins.
1339. Standards set forth; not open to inter-
1343. What is Production?
pretation
A. The creation of transformation pro-
A. Policies cess
B. Rules B. The creation of goods or services
C. Census C. The creation of feedback
D. Management D. The creation of value-added process

1344. Production systems can be classified as A. F. W. Harris

B. Elton Mayo
A. Job Shop, Batch, Mass & Continuous
C. Procter and Gamble
Production
D. none of above
B. Job Shop, Batch, Massive & Continu-
ous Production 1350. A process-oriented layout:
C. Job Shop, Batch, Massive & Consistent
A. groups workers to provide for move-
NARAYAN CHANGDER
Production
D. Job Shop, Bench, Massive & Continu-
B. seeks the best machine utilization in
ous Production
continuous production.
1345. Service blue print tool is based on C. deals with low-volume, high-variety
flow diagram production.
A. Product D. none of above
B. Finance
1351. Operations management (OM) is the set
C. Material of activities that creates value in the form
D. Process of goods and services by transforming in-
puts into outputs.
1346. True or False:An example of a job design
technique is job rotation. True or false? A. True
A. T B. False
B. F 1352. Distribution resource planning (DRP) is:
1347. Which is NOT part of group? A. a transportation plan to ship materials
to warehouses.
A. Organizing work more efficiently
B. Quantity of outputs Quantity of inputs B. a shipping plan from a central ware-
house to retail warehouses.
C. Automation and computerization
C. material requirements planning with a
D. Using approaches that motivate staff feedback loop from distribution centers.
to work harder
D. a time-phased stock replenishment
1348. Choose the answer below which is a plan for all levels of a distribution net-
qualitative forecasting technique work.
A. Metode delphi
1353. A(n) manual contains all of the rules,
B. Sales employee estimates policies, and procedures that a business
C. Market survey should follow in order to function effec-
tively.
D. Opinion of the executive board
A. operations
E. Time series forecasting
B. rules
1349. A sociologist from Harvard, concluded
C. procedures
that the workers were actually motivated
by the attention they were given. D. policies

1354. The need to focus more on one competi- C. Through external interested parties
tive priority than on others. only

A. Structure D. Through meetings and training ses-
sions
B. Trade-off
C. Productivity 1360. The model of operations management
is a framework for understanding the dif-
D. Core competencies
ferent components of operations and how
1355. Why is productivity important they work together.
A. To increase the income A. True
B. To increase the revenue B. False

Explanation:The model of operations man-
C. To increase the unemployment agement is a framework for understand-
D. To increase the operating costs ing the different components of opera-
tions and how they work together. It is
1356. The following are types of inventory, a simplified representation of the opera-
except. tions function that shows how inputs are
A. Raw materials transformed into outputs.
B. Work in process 1361. To calculate expected value, we need

C. Finished goods probability of demand level
A. True
D. Manufacturing
B. False
1357. What is mass customization?
1362. The production of one, custom made
A. The rapid, low-cost production of
product. Involves high skills level and the
goods and services to satisfy unique cus-
product is unique.
tomer desires
A. Job production
B. The production of standardized prod-
ucts using general purpose equipment B. Flow production
C. The production of high volume, low va- C. Batch production

riety products D. Lean production
D. The production of goods and services 1363. Which of the following best describes
with minimal customization ‘efficiency’?
1358. Ant facility will create an impact on the A. Producing items customers need
environment. B. Maximising output
A. TRUE C. Making the best use of resources
B. FALSE D. none of above
1359. How should a quality policy be commu- 1364. What is the primary objective of produc-
nicated to employees? tion and operations management?
A. Through email only A. Marketing products
B. Through social media platforms only B. Designing products

C. Producing goods and services effi- B. Corporate Citizenship Theory

ciently C. Maximizing Profits Theory
D. Hiring employees D. Stakeholder Interest Theory
1365. is about the quantity of a product 1369. The “Father of Scientific Management”
orservice that can be made within a given is:
time period. A. Henry Ford.
A. flexibility B. Frederick W. Taylor.
NARAYAN CHANGDER
B. productivity C. W. Edwards Deming.
C. capacity D. Frank Gilbreth.
D. none of above E. just a figure of speech, not a reference
to a person.
agement practice deals with arranging and 1370. Attitudes of people, local social values
putting together the right space, appropri- A. Resource endowment
ate furniture and proper equipment to min-
B. Cultural/social values and institutions
imize the movement and handling of mate-
rials to accomplish the tasks called for by C. Government Policy
the business? D. Management
A. Adopt standard production models. 1371. Write the full form of JIT
B. Choose the right machines and effi- A. Just in Time
ciency.
B. Judgement in Time
C. Design plan layout for better effi- C. Juice in Time
ciency.
D. Just in Tide
D. Maintain machines and equipment
properly. 1372. What is the concept of quality manage-
ment in operations management?
E. Purchase based on needs and on time.
A. Ignoring quality considerations
1367. What is customization as a performance B. Focusing on cost reduction
objective?
C. Ensuring high standards of product or
A. Creating individualized products to service
meet specific customer needs
D. Increasing processing costs
B. Mass producing standardized prod-
ucts 1373. What is the definition of process lay-
outs?
C. Increasing costs for the business
A. Equipment and people are grouped by
D. Decreasing variety in the product function
1368. Which production and operations man- B. Resources move through a fixed se-
agement theory argues that a business quence to become finished goods
should create value for all its stakehold- C. Product or customer stays in one loca-
ers, not just for its shareholders? tion; resources move as needed
A. Business Management Theory D. None of the above

1374. Defined as the economic activity that C. Quality Department

typically produce an intangible product. An D. Human Resource Department
example of which is

1379. Made planning the responsibility of
A. management and production apart of the
tasks of workers.
A. Scientific Management
B. B. Scientific Investigation
C. Operations Management
D. TQM
C.
1380. The following are reasons why most or-
ganizations fail except?
D. none of above
A. Too much emphasis in product and ser-
1375. Which department is responsible for in- vice design and not enough on improve-
ventory management? ment
A. Purchase department B. Failing to take advantage of strengths
B. Production department and opportunities
C. Storage department C. Too much emphasis on short-term fi-
nancial performance
D. Sales department
D. Recognizing competitive threats
1376. It describes all the activities managers
do to help companies create goods. 1381. True or false:Service businesses provide
a more tailored output for customers than
A. Production manufacturing businesses.
B. Production Management A. True
C. Operations Management B. False
D. Transformation Process
1382. A forecasting method that uses an aver-
1377. What is:to produce a good service which age of the n most recent periods of data
meets customer expectations to forecast the next period.
A. Lean Production A. Moving Averages
B. Kaizen B. Exponential Smoothing
C. Just-In-Time (JIT) C. Smoothing Constant
D. Quality D. Naive Approach
1378. Is responsible for obtaining, controlling 1383. The Operations function is a crucial part
their use, analyzing investment opportuni- of any organization that is responsible for
ties, and ensuring that the time operates overseeing the production and delivery of
cost-effectively and ideally profitably. goods or services.
A. Legal Services Department A. True
B. Finance and Accounting Department B. False

1384. What is the purpose of the transporta- efficiency, often by reducing product de-
tion model? velopment time.
A. To find the amount to be shipped from D. Japanese term that means ‘continuous
several points of supply to several points improvement through the elimination of
of demand waste.’
B. To determine the location of distribu- 1389. What does this Gantt chart show?
tion centers
NARAYAN CHANGDER
C. To analyze the revenue focus of ser-
vice organizations
D. To calculate the center of gravity for
distribution centers
1385. What is the ‘bath tub curve’ used to

measure? A. Selection and training of staff will be-
gin in May.
A. Availability of operations
B. The shop will be open for business at
B. Failure over time
the end of April.
C. Failure detection and analysis
C. Stock purchases and advertising will
D. Reliability of components be done simultaneously.
1386. The role of operations management is D. Some stock will be purchased before
the shop is completely refitted.
A. to generate sales 1390. CIM stands for?

B. to acquire equipment A. computer interconnected manufactur-
C. to transform input into output ing
D. to retain customers B. computer interface manufacturing

C. computer integrated manufacturing
1387. Allows people to “see” the finished de-
D. computer intelligent manufacturing
sign before a physical model is built.
A. Modular Design 1391. Quantitative Forecasting techniques:
B. Computer Aided Design A. Naive Approach
C. Computer Aided Manufacturing B. Moving Averages
D. Virtual Reality Technology C. Exponential Smoothing
D. Delphi Method
1388. What is Kaizen?
E. Sales Force Composite
A. the output measured against the in-
puts used to create it. 1392. Managers can use the following strate-
B. the inventory held to deal with uncer- gies to increase product differentiation and
tainty in customer demand and deliveries customer value:(choose four)
of supplies. A. Add more product features
C. refers to techniques used by busi- B. Focus on customer service and respon-
nesses to cut down on waste and increase siveness

C. Recruit skilled workers B. Contractual

D. Increase customization C. Direct

E. Offer complementary products D. none of above
1393. What is:the techniques used by the busi- 1398. The dominant operation for a bank is:
ness to cut down waste and therefore in-
A. Processing materials
crease efficiency, for example, by reducing
the time it takes for a product to be devel- B. Processing complaints
oped and become available for sale C. Processing customers
A. Lean Production D. Processing information
B. Kaizen
1399. Ways to increase productivity
C. Just-In-Time (JIT)
A. motivate the workers
D. Quality
B. hire a manager
1394. What is the stock of goods that a busi- C. use more advanced technology
ness has for sale?
D. train the workers
A. liquid
B. cash 1400. What is OUTPUT?
C. inventory A. Basic materials needed for the pur-

pose of producing goods.
D. assests
B. Control mechanism to measure the ac-
1395. “The charts show at glance what factual performance.
tors affect quality and thereby what may C. The conversion of inputs into outputs.
be the causes of quality problems”
D. The final result obtained after the
A. Analysis pareto transformation process.
B. Check sheet
1401. What kind of stocks are normally easi-
C. Ishikawa fishbone
est to turn into cash?
D. Scatter diagrams
A. Finished goods
1396. It helps the manager to estimate the B. Components
number and type of workers needed to do
C. Raw materials
the job.
D. Work-in-progress
A. Estimating production costs
B. Training of employees 1402. What is the contributions of A. Charnes,
W.W Cooper & others?
C. Manpower planning
A. Mathematical programming, onlinear
D. Production planning and scheduling
and stochastic processes
1397. (a) Can be used to assist in covering the B. Linear Programming
peak periods of business operations, thus
allowing the full-time more productive em- 1403. (a) (b) (c) 3 (Three) Forecasting Meth-
ployees to work the steady shifts. ods / Models
A. a Part-Time A. a Subjective

B. b Causal 1409. If the unit cost is £30 and the output is

C. c Time Series 5, 000 units, the fixed costs are £12, 000
what is the variable costs per unit?
D. Predictive
A. £28.00
1404. Which of the following is one of the B. £27.00
many principles of Lean Management? C. £27.60
A. Pull D. £27.50
NARAYAN CHANGDER
B. Forecasting
1410. Following are variables used in produc-
C. Quality Control tivity EXCEPT
D. Waste Minimisation A. Management
B. Labour
1405. Following are components involve in the
transformation model process EXCEPT C. Capital
A. Final results D. Output
B. Transformation process 1411. A function of an organization that which

generates demand, or takes the order of a
C. Feedback
product or service.
D. Input A. Marketing
1406. PROJECT IS ALWAYS B. Production/Operations
A. Unique C. Finance/Accounting
B. Interesting D. none of above
C. Dynamic 1412. Service inventory is

D. Extraordinary A. Capacity of service
B. Finished product
1407. is a materials planning tool that re-
lies on data from the past and present and C. Both a & b
analysis of trends to attempt to determine D. None of the above
future events.
1413. The goal of materials management is to
A. Inventory provide an unbroken chain of components
B. Forecasting for production to manufacture goods on
time for the customer base.
C. Production Plans
A. true
D. none of above
B. false
1408. Which of the following includes two ex- 1414. Refers how well a business uses re-
amples of transforming resources? sources to achieve objectives
A. Materials and energy A. Effectiveness
B. Information and customers B. Efficiency
C. Task design and technology C. Reactive
D. Human resources and facilities D. Proactive

1415. The majority of jobs in the US economy 1420. Which among these is under “Opera-
are based. tions Management” in the supply chain
management?

A. Service
A. Goods in Warehouse
B. Manufacturing
B. Outbound Warehouse
1416. What is:the level of sales at which total C. Consumer
costs = total revenue
D. none of above
A. Revenue
1421. Distinction of services from products
B. Total Revenue Formula
A. dispersed
C. Break-Even Point
B. high customer interaction
D. Contribution C. produced and consumed in different
1417. Standardized product interfaces often times
reduce product design periods as has been- D. unique
demonstrated in personal computer de- E. knowledge based
signs. Manufacturers have benefited by
industry standards that define theprotocol 1422. What is the formula to measure produc-
that must exist between each module. tivity?
A. Quicker Product Design A. Productivity = outputs / inputs
B. Productivity = inputs / outputs
B. Product Design
C. Productivity = labour / outpus
C. Production Design
D. Productivity = inputs X price per unit
D. TQM
1423. (a) An approach for classifying and pri-
1418. Rapid, low-cost production that caters oritizing inventory based on the value
to constantly changing unique customer de- items return.
sires. A. a ABC Analysis
A. Mass Customization B. CBA Analysis
B. Process Focus C. ACB Analysis
C. Product Focus D. none of above
D. Repetitive Focus 1424. What is the definition of efficiency?
1419. Strategy of Operations Management A. The raw materials, components and
wherein analytics are essential for strong parts used to produce a good or supply a
planning, adjustments, and decision mak- service
ing. Two common types are efficiency met- B. Any change to inputs that adds value
rics and effectiveness metrics. and converts them into outputs
A. Process design C. The achievement of maximum output
with the minimum level of inputs
B. Data challenges
D. The features implemented by a busi-
C. Use of data ness that create an advantage over its
D. none of above competitors

1425. The process of bringing together all the 1431. In January, Ford car dealers predicted
resources necessary to complete a task demand of 142 units for February. Ac-
A. Production tual demand in February was 153 units.
The smoothing constant chosen by manage-
B. Organizing ment is 0.2. What is the forecast demand
C. Directing for March using the exponential smoothing
D. Managing model?
1426. producing output at the highest ratio of A. 111 unit
NARAYAN CHANGDER
output to input B. 144 unit
A. effectiveness C. 142 unit
B. efficiency
D. 295 unit
C. labor intensive
E. 310 unit
D. capital intensive
1427. Which of the following would NOT be 1432. According to Aristotle, “Quality is not
considered compensation? an act, it is a “
A. Salary A. Attitude
B. Overtime Pay B. Habit
C. Health Insurance C. Experience
D. Commission
D. none of above
erally three years or more. 1433. Which of the following are the Compet-
A. a Long-Term Forecasting itive Priorities of OM?
B. Short-Term Forecasting A. Cost, Quality, Delivery, Flexibility, Ser-

vice
C. Medium-Term Forecasting
D. none of above B. Strategic Planning, Tactical Planning,
Operational Planning and Control
1429. Type of inventory
C. Input, Transfomation, Outputs, Con-
A. finished products trol
B. work in progress
C. raw material
D. working capital 1434. What does gap analysis in the opera-
tional improvement cycle examine?
1430. Which of the following is NOT one of
the 10 strategic OM decisions listed in the A. The impact of employee training pro-
text? grams
A. quality B. The discrepancy between new process
B. location selection results and expectations
C. marketing C. The satisfaction level of suppliers

D. layout design D. The success of marketing campaigns

1435. A manager at a fast-food business 1440. has been extensively researchedto vali-
wants to change the operations process date its psychometric properties.
in response to the influence of corporate

social responsibility. Which action would
achieve this objective? B. Guest Input is Important Source of
Data
A. Providing cash donations to a local
hospital C. Comment Cards
B. Increasing the visibility of the cooking D. SERVQUAL

process
1441. What does the term ‘work environment’
C. Offering a wider variety of healthy op- relate to?
tions on their menu A. Transport, communication, and infor-
D. Ensuring that injured workers receive mation systems
access to compensation payments B. Physical, environmental, and other fac-
tors
1436. can be seen as the starting and ending
with the customer C. Lighting, weather, and process equip-
ment
A. Services
D. Noise, temperature, and humidity
B. Service design
C. Good service design 1442. It occur when guests interact with em-
ployees and technology at touchpoints
D. Delivering Quality Service where the service gets designed, produced,
and delivered together.
1437. Is responsible for producing the goods
or providing the services offered by the or- A. product encounters
ganization B. service encounters
A. OPERATIONS C. encounters
B. FINANCE D. None of the Above
1438. Quality Culture is a management ap- 1443. What is:the factors that lead to a re-
proach wherein decision-making is shared duction in average costs as a business in-
with the subordinates. creases in size
A. True A. Economies of Scale
B. False B. Diseconomies of Scale
C. Break-Even Level of Output
1439. its willingness toprovide prompt service
and helpcustomers. D. Break-Even Charts
A. Reliability 1444. Quality Assurance is:
B. Assurance A. Reactive
C. Tangibles B. Proactive
D. Empathy C. Inactive
E. Responsiveness D. Active

1445. How is dependability measured for fitB) fit, timingC) timing, priceD) price, tim-
goods? ing
A. By the amount of warranties claimed A. A
B. By the amount of complaints received B. B
C. By the speed of production C. C
D. By the level of customization D. D
NARAYAN CHANGDER
1446. When implemented correctly, JIT can
1451. This is the aggregation of data from sim-
create more value than traditional meth-
ple roll-ups to complex groupings of inter-
ods that require more extensive invento-
related information.
ries.
A. What-if Analysis
A. TRUE
B. FALSE B. Goal-seeking Analysis
C. Consolidation
1447. Single factor productivity
D. Drill Down
A. is the productivity measurement that
uses just more than one resources input. 1452. The total cost of producing 3, 000 units
B. is the productivity measurement that is £9, 000. At a profit margin of 50%,
uses just one resources input. what is the unit cost?
C. is the productivity measurement that A. £3 per unit
uses just infinity resources input.
B. £30 per unit
D. is the productivity measurement that
C. £1.50 per unit
uses just any resources input.
D. £15 per unit
1448. Long term forecast is more credible than
short term so the company can prepare for 1453. Name the 3 interdependent components
the future. of products.
A. True A. Concept (idea).
B. False B. Serving consumers.
1449. It is an important skill of every small C. Package composition of products &
business owner or manager services.
A. Financial Management D. Process for creating the package.
B. Managing Cash Flow
1454. It is important for companies to care-
C. Improving Cash Flow fully consider the unique characteristics
D. Cash Budget of each market they operate in, as well
as the potential risks and opportunities
1450. 1) By cooking and dressing burgers be- that come with doing business in different
fore customers order them, a fast-food parts of the world.
restaurant is sacrificing the dimension of
A. True
and improving the dimension of
in the customers’ utility function.A) timing, B. False

1455. These are activities that provide some C. modular layout

combination of time, location, form or psy-
D. assembly line layout
chological value.

A. Goods 1460. Described as the ratio of output divided
B. Services by the input (resources i.e labor, capital,
management)
C. Marketing
A. Production
D. none of above
B. Productivity
1456. The process of describing the aggregate
C. Single Factor Productivity
plan in more detail is called
A. Aggregate planning D. Multi-Factor Productivity
B. Material requirements planning 1461. Mission statements tell an organization

C. Disintegrate where it is going
D. Master production schedule A. True
E. Linear programming transport B. False
1457. Critical activities have what kind of 1462. Henry Ford is noted for his contributions
float? to:
A. Zero float A. material requirements planning.
B. Negative float
B. statistical quality control.
C. Minimum float
C. assembly line operations.
D. Maximum float
D. scientific management.
1458. This is a strategy whereby inputs are E. time and motion studies.
delivered at regular intervals as required
by the operations department 1463. is a system for evaluating perfor-
A. materials management mance, service, of the quality of a product
B. Just in Time against system, standard or specified re-
quirement for customers.
C. forecasting
A. quality audit
D. quality control
B. quality conformance
1459. You are the Operations Manager for
C. quality assurance
a high-end furniture manufacturer. Your
marketing department has introduced a D. quality control
line of custom, made-to-order products
that vary in style and will be sold in small 1464. Choose the right option
quantities due to the high cost of the prod- A. H1
ucts. You decide to use this type of facility
layout for the production: B. right
A. fixed position layout C. Oh
B. process layout D. Hch

1465. The order quantity is: B. Logistics Management

C. Project Management
D. Distribution Management
1470. Which is a solution for employee

turnover in the hotel industry?
A. 600 A. Offering perks and benefits to employ-
ees
NARAYAN CHANGDER
B. 200
C. 500 B. Reducing the number of hours worked
by employees
D. 100
C. Having the hotel be open Monday-
1466. The originated in Japan when the Friday only
country was undergoing major quality rev- D. Only hire part-time employees
olution and had become a mandatory topic
as part of Japanese’s industrial training 1471. This component is less obvious to
program. guests, but it still results in indirect emo-
A. 7 QC Tools tional effects.
B. 7 QC Charts A. Explicit services
C. 7 QC Diagram B. Implicit services
D. 7 QC Principles C. guaranteed services
1467. “A comparison to similar or identical
practice within the same or similar func- 1472. Which of the following is important for
tion outside the immediate industry” This service facility location planning
represent which types of benchmarking?
A. Competitive positioning
A. Internal
B. Demand Management
B. Functional
C. Flexibility
C. Competitive
D. All the above
D. Just in time
1473. Organizing is the activities that estab-
1468. is the contracting of a specific busi-
lish a structure of task and authority.
ness operation to an external person or
business. A. TRUE
A. Outsourcing B. FALSE
B. Overseas manufacturing 1474. What is one of the most important com-
C. Supply chain management ponents of the production process?
D. none of above A. new technology
B. goods and services
1469. tends to focus upon transportation
and distribution C. human resources
A. Supply Chain Management D. inputs and outputs

1475. What is an advantage of Kaizen? 1480. What are the benefits of Lean Manufac-
A. Discontinuous improvement turing to the company?

A. Improved quality.
B. Short-term sustainability
B. Reduced cost.
C. Quality deterioration
C. Demotivates the workforce.
D. Long-term sustainability
D. Higher saleries for the managers.
1476. Sweet Bakery is currently producing 1481. Which of the following is a potential dis-
150 cakes a day. The bakery spent a to- advantage of product layout?
tal of 10 hours to produce at this quantity.
Using the single factor productivity mea- A. Inconvenient movement of materials
surement, what is the productivity level B. Not very robust if there is a disruption
of sweet bakery? C. Limited opportunities for specialisa-
A. 20 unit per labour hours tion of equipment
B. 10 unit per labour hours D. High unit costs
C. 15 unit per labour hours 1482. Which of the following is not an element
of the operations system
D. 5 unit per labour hours
A. Processes
1477. We study Operations Management be- B. Outputs
cause we want to know how goods and
services are produced. C. Inputs
D. Money
A. TRUE
B. FALSE 1483. The degree to which a business has
achieved its objective
1478. This technique is used to obtain a loca- A. Efficiency
tion of a distribution center that will mini-
B. Effectiveness
mize distribution costs.
C. Productivity
A. Center of Gravity Technique
D. Business Competitiveness
B. Factor Rating Technique
1484. WHAT IS UR NAME
C. Break Even Analysis Technique
A. SDS
D. Tangible Technique
B. SS
1479. The economic pillar of sustainability is C. SSS
focused on
D. SSDDDD
A. The economy
1485. is NOT an inventory type
B. The amount of money people have
A. Raw Materials
C. The ability to use resources in a way
B. Buffer Inventory
that businesses can still continue to use
them into the future C. Finished Goods
D. How profitable businesses and govern- D. Machinery
ment can be E. Work in Process

1486. What is the scope of operations man-

agement that influences the profitability A.
of the business?
A. Increase productivity
B. Raise revenue B.
C. Achievement of organization goals
D. Improve customer satisfaction
NARAYAN CHANGDER
C.
1487. Which of the following is NOT an exam-
ple of an external failure cost?
A. Guarantee and warranty costs. D.
B. The setting up of statistical accep-
tance sampling plans. 1492. They are often used as follow-ups to
C. Loss of customer goodwill affecting fu- a cause and effect analysis to determine
ture business. whether a stated cause truly does impact
the quality characteristics.
D. Cost of providing excessive capability.
A. Histogram
1488. This refers to the amount of time it B. Scatter Diagram
takes between ordering new stock and re-
ceiving it. C. Control Chart
D. Fishbone Diagram
A. buffer stock
B. just-in-time 1493. Moving average method is one of the
technique that is good forecast for the
C. lead time short run forecasting.
D. patience quota A. Yes
1489. It is estimated that there will be more B. No
plastic than fish in oceans by 2050. 1494. In which of the following forecasting,
A. True subjective inputs obtained from various
sources are analyzed?
B. False
A. Judgmental forecast
1490. The goal of functional layout is to allow B. Time series forecast
workers and equipment to operate as ef-
C. Associative model
fectively as possible.
D. All of above
A. true
B. false 1495. It is the management of systems or pro-
cesses that create goods and/or services.
1491. An approach that addresses flow, al- A. Marketing Management
locates space, and responds to customer B. Human Resource Management
behavior, usually products with high mar-
gin are given more exposure to buy- C. Operations Management
ers/consumers. D. Financial Management

1496. It is an organization of people within a 1500. Product Layouts

company that is tasked with providing un- A. Facilities are more capital intensive
biased, independent reviews of systems,

business organizations, and processes. B. Facilities are more labor intensive
A. Resource Management C. Greater flexibility relative to the mar-

ket
B. Internal Audit
D. Slower processing rates
C. Management Review
D. Management Responsibility 1501. Which of the following best illustrates
timing within the transformation opera-
1497. takes care of product and services tions process?
A. Production management A. Inventory totals
B. Operations management B. Computer-assisted design
C. System Management C. Customer service
D. None of the above D. Critical path analysis
1498. Idea that people are lazy and need to be 1502. Operations management refers to
forced to work A. process placement of departments
A. Theory X and workstations
B. Theory Y B. direction and control and process

transforms inputs into finished goods and
C. Staff services
D. Line Organization C. planning of organizing the company
1499. Rollio Chocolate is a confectionery busi- D. designing a movement of work
ness that produces in Australia and dis-
1503. What is mass production?
tributes their final products to countries in-
cluding the United States and the United A. 1. Producing goods one at a time
Kingdom. Currently, Rollio is facing a B. 2. Producing goods in small quantities
C. 3. Producing goods in large quantities
competitors gain more market share in
the chocolate industry. Subsequently, the D. 4. Producing goods for a limited period
CEO, Gigabo, is considering moving pro-
duction to Malaysia to help the business 1504. The field of operations management in-
remain competitive.Identify the following cludes a diverse set of functions and roles,
as either an advantage or disadvantage of which can differ among industries and
overseas manufacture as a global strategy different-sized companies.
for Rollio Chocolate. Overseas manufac- A. TRUE
ture can lead to an increase in the speed B. FALSE
of production of chocolates as businesses
overseas may have expertise in the func- 1505. Which is not considered as purpose of
tion. planning?
A. Disadvantage A. who is responsible?
B. Advantage B. how is it to achieved?

C. what is to be achieved? A. TRUE

D. who can achieve it? B. FALSE
1506. Product Layouts
1511. In Failure Prevention and Recovery,
A. Able to produce a small number of what is the report’s main objective?
products efficiently
A. Define the term success
B. Able to produce a large number of dif-
ferent products B. Identify key types of success
NARAYAN CHANGDER
C. Resources used are general-purpose C. Identify key types of failure
D. Facilities are more labor intensive D. Describe techniques for success mea-
1507. Process Layouts:Select Two surement
A. Slower processing rates 1512. Which of the following best describes

B. High material handling costs ‘productivity’?
C. Low flexibility relative to the market A. Total output of the business
D. Processing rates are faster B. Output per worker
1508. can be defined as the maximum time C. Another way of saying unit cost
per unitallowed making a product or pro-
viding a service in order to meet thede- D. none of above
mand.
1513. Human resource planningshould serve
A. takt hour
as a link between humanresource manage-
B. idle time ment and the overallstrategic plan of an
C. process time organization.
D. lead time A. Managing relations
1509. Effectiveness is most often seen in op- B. Planning

erations management in (tick all that C. Training and Development
apply!)
D. Human Resource Planning
A. The quality of good and services cre-
ated
1514. general corporations which have elected
B. The time it takes to produce goods and a special tax status with the IRS after the
services corporation has been formed; most appro-
C. The production of the right amount of priate for small business owners and en-
goods and services on time trepreneurs who prefer to be taxed as if
they were still sole proprietors or partners
D. The retention rate of operations em-
ployees A. Shareholder
1510. Demand can be volatile and is some- B. C Corporation
thing that tends tohappen ‘to’ an opera-
C. Corporation
tion. It exists outside theorganization and
is therefore difficult to control. D. S Corporation

1515. Which of the following statements is 1519. What is the scope of operations man-
true of just-in-time (JIT) purchasing? agement that focuses on achieving the
highest efficiency possible?

A. In JIT purchasing, the optimal safety-
stock level is the quantity of safety stock A. Increase productivity
that minimizes the sum of annual relevant B. Raise revenue
stockout and carrying costs.
C. Achievement of organization goals
B. ) JIT purchasing is guided solely by the
EOQ model because that model empha- D. Improve customer satisfaction
sizes the tradeoff between relevant carry-
ing and ordering costs. 1520. Which of the following is a benefit of
lean production?
C. In JIT purchasing, raw materials (or
goods) are purchased so that products A. Less storage of raw materials or com-
are delivered just as needed for produc- ponents
tion or sales. B. Less money tied up in inventories
D. Only disadvantage of JIT purchasing is C. Slower production of goods and ser-
the higher level carrying and inspection vices
costs. D. Better use of equipment
1516. It has a narrower focus than quality as- 1521. Lean production was first used by
surance
A. Japan
A. Quality Assurance
B. South Korea
B. Quality Control
C. China
C. Total Quality Management
D. USA
D. Operations
1522. In manufacturing organizations most
1517. This is located in front of the fuselage customers have no direct contact with
where the pilot sits. It is the command the operation. Customer contact occurs
and control center of the aircraft. through distributors and retailers.
A. Cockpit A. true
B. Flap B. false
C. Rudder C. maybe
D. Aileron D. i don’t know
1518. TQM was developed by , a manage- 1523. Tom Peters

ment consultant whose work had a great
A. “Do what you do Best and Outsource
impact on Japanese manufacturing
the Rest” Outsourcing
A. William Edwards Deming
B. -Contributed to understanding the
B. Philip B. Crosby process-variability
C. Joseph M. Juran C. Developed concept of cost of quality.
D. Peter Jones D. -Coined phrase “quality is free”

1524. Moving production of goods to another 1530. This is done immediately after new de-
country is known as: sign or product is developed. Manufac-
A. Global Sourcing of Inputs turer of product is done either on regular
shop floor if production is not disturbed.
B. Overseas Manufacturing
A. Pilot Piece Inspection
C. Global Outsourcing
D. International Supplier Sourcing B. Functional Inspection
C. First Piece or First-off Inspections
1525. A long-range plan for the operations
NARAYAN CHANGDER
function that specifies the design and use D. Centralised Inspection
of resources to support the business strat-
egy. 1531. The management of a large bakery
is contemplating making pies, which will
A. Productivity require leasing a new equipment for a
B. Quality monthly cost of $6, 000. Variable cost
C. Structure will be $2.00 per pie and retail price will
be $7.00 each. 1. How many pies must
D. Operations strategy be sold per month in order to break even?
1526. What factors most influence capacity A. 2, 110 pies/month
planning decisions?
B. 1, 200 pies/month
A. Factory location
C. 2, 100 pies/month
B. Customer preferences
D. 1, 210 pies/month
C. Demand forecast
D. government policy 1532. ACM company determines that there
are 550 productive minutes of work avail-
1527. Quality Circles involves placing of ves-
able per day. The production schedule re-
sels in convenient locations into which em-
quires that 50 units of the wing compo-
ployees may put written suggestions for
nent be completed as output from the as-
the process improvement of the organiza-
sembly line each day. Total task time is
tion.
70 minutes.Determine the minimum num-
A. True ber of workstations.
B. False A. 5 workstations
1528. What is the primary goal of operations B. 6 workstations
management?
C. 7 workstations
A. Maximizing profit
D. 8 workstations
B. Minimizing cost
C. Ensuring customer satisfaction 1533. Operation management is more applica-
ble in which sector?
D. All of the above
A. Service sector
1529. One of the functions of Operations Man-
agement is managing projects. B. Management sector
A. TRUE C. Manufacturing sector
B. FALSE D. Agriculture sector

1534. (a) (b) 2 ways of Forecasting products and services faster than the com-
A. a Top-down method petition, reaching the market first, and
meeting customer orders most quickly.

B. b Bottom-Up Method
A. Flexibility
C. Top-Bottom Method
B. time-based competition
D. Up-Down Method
C. Business process reengineering
1535. Strategic process that can increase D. none of above
profit margins and provide a competitive
advantage for companiesof all sizes. 1539. Sometimes called “patrolling, “ “rov-
A. Value Chain Analysis ing, “ or “first piece” inspection where
inspectors move from machine to machine
B. Cost Saving Analysis to approve setups before production starts
C. Cost Benefit Analysis and to catch defective work before a large
quantity has been produced.
D. Non of the given answer
A. Inspecting Purchased Items
1536. Which of these describes the term oper-
B. Central Inspection
ations management?
C. Inspecting Work in Process
A. The area of management concerned
with overseeing, designing, and control- D. Floor Inspection
ling the process of production and re-
1540. What is the current phase of industrial
designing business operations in the pro-
revolution characterized by?
duction of goods or services.
A. Heavy reliance on technology
B. It includes the movement and storage
of raw materials, work-in-process inven- B. Decentralized production
tory, and finished goods from point of ori- C. Efficiency and structured processes
gin to point of consumption.
D. Large-scale manufacturing processes
C. The process of capturing, developing,
sharing, and effectively using organiza- 1541. The processing of information is one as-
tional knowledge pect of the transformation model.
D. The study of both group and individual A. True.
performance and activity within an organi- B. False.
zation.
1542. Which is the least connected to social
1537. What is the following task word:BLT sustainability
strategy managers will useLink to busi-
ness must be shown throughout response A. care for the elderly
A. Define B. climate change
B. Describe C. education
C. Explain How D. healthcare
D. Analyse 1543. (a) (b) 2 Forecasting Factors
1538. One of the most important trends within A. a Internal

companies today is , developing new B. b External

C. Inside 1549. Part of the tail that keeps the plane’s

nose from swinging from side to side,
D. Outside
which is calledyaw.
1544. What is the outcome for an organisation A. Elevator
reacting to changes quickly? B. Vertical Stabilizer
A. Service. C. Horizontal Stabilizer
B. Greater adaptability. D. Rudder
NARAYAN CHANGDER
C. Lower quality.
1550. The starting point of Production cycle is
D. none of above A. product design
1545. Which one of the following would not B. production planning
generally be considered an aspect of oper- C. routing
ations management?
D. market research
A. Work methods
1551. (LCFS) Stands for (a)
B. Secure financial resources
A. a (“last come, first served”)
C. Maintain quality
B. (“last call, first served”)
D. Product or service design
1552. is the process of planning, imple-
1546. Effective innovation is a good way to menting and effectively controlling the
establish what for a product? flow of raw materials, semi-finished prod-
ucts, and related information from con-
A. A USP
sumption points to origin points.
B. A supplier
A. Inbound logistics
C. A retail channel B. Outbound logistics
D. A lower margin C. Reverse logistics
1547. For a manufacturer, successful D. No correct answer

R+D/Product development is likely to:
1553. What is the definition of tangible?
A. Decrease in fixed costs A. Able to be seen and felt
B. Rise in working capital B. To change the features of a product to
C. Product lifecycle extension suit the precise preferences of a customer
D. Shortened lead time C. A high level of skill at a specific task or
role
1548. Successful inventory management in- D. The reliance of different parts of an or-
volves balancing the costs of inventory ganisation on each other to perform their
with the benefits of having inventory in task or role
stock.
1554. The grouping of workers, their equip-
A. true
ment, and spaces to provide for comfort,
B. false safety, and movement of information.

B. MICHAEL PORTER
A. C. PETER DRUCKER

D. HENRY KOOTZ
B. 1559. The choice of location will depend on the

following factors, EXCEPT
A. Close proximity to suppliers
C. B. Close proximity to raw materials

C. close proximity to customers
D. Availability of manpower
D. 1560. Laws protecting intellectual property

from unauthorized copying.
A. Licensing
1555. What is the main focus of the Single
B. Patent
Minute Exchange of Die Lean tool?
C. Trademarks
A. To slow down process flow
D. Copyright
B. To create defects/errors
C. To reduce downtime and increase 1561. Automobile and appliance manufactur-
throughput ers, as well as food-processing plants, usu-
ally use a
D. To maintain high inventory
A. hybrid layout
1556. Below, which is not an example of in- B. fixed position layout
creasing “WHAT CUSTOMERS GET” is
C. process layout
A. MORE PRODUCT
D. product layout
B. MORE PRICE
1562. It is not important to analyze and as-
C. EXCELLENT SERVICE
sess business operations, particularly af-
D. COMFORT ter a growth spurt, to identify and address
any inefficiencies.
1557. He is the “Fun Uncle of the Quality Rev-
olution” A. True
A. Philip B. Crosby B. False
B. William Edwards Deming 1563. Objectives of operations management is

to
C. Peter Jones
A. Maximize cost per unit
D. Joseph M. Juran
B. Minimize the cost per unit
1558. introduced the generic value chain
model in 1985. Value chain represents all 1564. The era where machine power replaced
the internal activities a firm engages in to the human power.
produce goods and services. A. Industrial Revolution
A. MARY FOLLET B. Scientific Management Era

C. Human Relations Movement C. marketing

D. Decision Models Era D. operations management
1565. In Quality Culture, behavior of employ- 1571. This term refers to the resources used
ees matches the company values. by a business to produce goods or ser-
A. True vices.
B. False A. Operations management

B. Outputs
NARAYAN CHANGDER
1566. The concept of EOQ is related to
C. Inputs
A. Time
D. Process
B. Quantity
C. Quality 1572. Focus forecasting models are statisti-
cal techniques used to determine the best
D. Efficiency mathematical expression that describes
the relationship between a dependent vari-
1567. Check the following items that belongs
able, such as demand, and one or more in-
to Goods.
dependent variables.
A. Shampoo
A. True
B. Hotdog corner
B. False
C. Beauty Salon
C. Neither
D. Ice Cream Parlor
D. Either
E. Car Wash
1573. The cost of insurance and taxes are in-
1568. A trend in business to consciously re- cluded in
duce waste, recycle, and reuse products
A. Cost of ordering
and parts.
B. Carrying cost
A. Sustainability
C. Set up cost
B. Global marketplace
D. None of above
C. Outsourcing
D. none of above 1574. Chally Fries is an Australian based man-
ufacturing company located in Geelong.
1569. With computers, many of the quantita- The business specializes in the production
tive models developed by management sci- of frozen French fries and supplies over
ence could be employed on a larger scale. 60 restaurants around Australia. Fresh
A. True potatoes are delivered weekly to the fac-
tories, which are then washed and cut by
B. False
machines. After the potatoes have been
1570. it is a functions that plan, organize, co- cut into French Fries, they are packaged,
ordinate and controlling the resources that boxed and frozen, ready to be delivered
needed to produce of a company’s product to restaurants around Australia. True or
False. Fresh potatoes and other ingredi-
A. organization ents are the outputs of Chally Fries’ oper-
B. management ations system.

A. False B. Processes
B. True C. Outputs

1575. Job Production is where the products D. none of above
are:
1581. In back order
A. All the same
A. Customer will wait for the stock
B. Unique
C. Similar but some groups vary B. Customer will not wait for the stock
D. none of above C. Drops demand

D. All the above
1576. It is allowed to an operator who is
working under poor environmental con-
1582. The process of hierarchy is a top-down
ditions that cannot be improved, added
approach to management in which deci-
stress and strain in performing the job
sions are made by those at the top of the
A. Interference allowance organization and passed down to those be-
B. Relaxation allowance low.
C. Contingency allowance A. True
D. Variable allowance B. False
Explanation:The process of hierarchy is
1577. Autocratic leadership best suits for a top-down approach to management be-
A. Quality Control cause it places decision-making authority
B. Quality Assurance at the top of the organization and filters
it down to lower levels. This means that
1578. This contains all of the rules, policies, those at the top of the hierarchy have the
and procedures that a business should fol- most power and control, while those at
low to function effectively. lower levels have less.
A. Management
1583. This is one ofthe criteria of the estab-
B. Organizing lishment if the newly hired employees
C. Operations Management are ready to be employed in the actual
store/establishment.
D. Operations Manual
A. Medical Examination
1579. Documents for production are
B. Training Application Examination
A. Assembly Drawing
C. Training
B. Assembly chart
C. Route Sheet D. Examination
D. Engineering Change Notice 1584. Process Layouts:Select Two

1580. Match the correct term with the follow- A. Slower processing rates
ing definition are the actions that are
B. High material handling costs
performed by a business to transform re-
sources into finished goods or services C. Processing rates are faster
A. Inputs D. Lower material handling costs

1585. A route sheet: B. Information system superimposed on

A. lists the operations necessary to pro- the physical system
duce a component. C. Physical system
B. is an instruction to make a given quan- D. Information system superimposed to
tity of a particular item. the physical system
C. is a schematic showing how a product
is assembled. 1590. Two businesses with the same level of
sales and expenses will have the same
NARAYAN CHANGDER
D. is a document showing the flow of
cash flow.
product components.
A. true
E. all of the above.
B. false
1586. Purchase order generation is part of
A. Inventory Order Cost 1591. Responsible for theorganization’s staff
trainingrequirements, programs, and ca-
B. Inventory Carrying Cost
reerdevelopment needs.
C. Both carrying cost and order cost
D. None
B. Promotion
1587. For which of these businesses would be-
C. Training and Development
ing located close to customers be most im-
portant? D. Evaluation and Management
A. An online bookseller
1592. The department attempts to guarantee
B. A firm of international management that the form complies with laws and reg-
consultants ulations that properly procedures.
C. A manufacturer of supermarket ready A. Legal Services Department
meals.
B. Finance and Accounting Department
D. An Italian restaurant
C. Quality Department
1588. What is:a Japanese term meaning ‘con-
tinuous improvement’ through the elimina- D. Human Resource Department
tion of waste
1593. Small businesses may not be able to fi-
A. Lean Production nance the expensive IT systems needed to
B. Kaizen operate JIT
C. Just-In-Time (JIT) A. True
D. Quality B. False
1589. Coordination and effective control 1594. Facilities Strategy is the determination
through a system of information networks of the location and layout of process plant
ensure a smooth flow of inputs through and equipment
various stages of operations resulting to
final product A. True
A. Information system B. False

1595. What is:where large quantities of a 1599. What is Operations?

product are produced in a continuous pro- A. production of the good, transforming
cess. It is sometimes referred to as mass

inputs into outputs
production
B. the action of functioning or the fact of
A. Job Production being active or in effect
B. Batch Production C. being cool
C. Flow Production D. rationalising the meaning of life and
D. Total Quality Management (TQM) death
1600. Objective of operation management is
1596. A measure of how efficiently an organi-
to improve
zation converts inputs into outputs.
A. Cycle time
A. Structure
B. Productivity
B. Productivity
C. Production
C. Quality
D. All the above
D. Total productivity
1601. A method used for the designing of ex-
1597. What is the definition of an agile supply periments to investigate how different pa-
chain strategy? rameters affect the mean and variance of
A. A focus on being responsive and flexi- a process.
ble to changing customer needs while si- A. Baldrige Award
multaneously hedging against supply dis- B. Deming Prize
ruption risks.
B. A supply chain approach that shares
D. Taguchi Methods
and pools resources to collectively share
and minimize supply disruption risks. 1602. What best describes the Theory of Con-
C. An intense focus on driving down costs straints is
on supply chain processes to supply pre- A. limiting factor in a system
dictable demand products at the lowest B. a body of knowledge
possible price
C. anything that limits an organization to
D. An intense focus on quickly responding achieve its goal
to unpredictable demand in order to mini-
D. bottleneck
mize lost sales, markdowns, and obsolete
inventory 1603. It is typically an informal group of peo-
ple that consists of operators, supervisors,
1598. He is the head of PS-DBM who nego- managers and so on who get together to
tiated all purchase made with Pharmally improve ways to make the product or de-
Pharmaceuticals liver the service.
A. Lao A. Quality Control
B. Which B. Kaizen
C. Dry C. Total Quality Management
D. Dergans D. Quality Circle

1604. The unique strengths of a business. B. Process-Oriented Layout

A. Core competencies C. Product Oriented Layout
B. Infrastructure D. Fixed Position Layout
C. Operations strategy 1610. The objective of the product decision is
D. Total productivity to develop and implement a product adver-
tisement that meets the demands of the
1605. The following type of layout is pre- marketplace with a competitive advantage
NARAYAN CHANGDER
ferred for low volume production of non
standard products A. True
A. Product layout B. False
B. Process layout 1611. Gibson Valves produces cast bronze

C. Fixed position layout valves on an assembly line, currently pro-
ducing 1600 valves each 8-hour shift. If
D. Combination layout the productivity is increased by 10%, it
1606. A product’s life cycle includes would then be:
A. Growth A. 180 valves/hr.
B. Introduction B. 200 valves/hr.
C. Maturity C. 220 valves/hr.
D. Decline D. 880 valves/hr.

E. 1760 valves/hr.
1607. What is the purpose of geographic infor-
mation systems (GIS)? 1612. What is the purpose of maintaining ap-
A. To enable more complex demographic propriate records of education, training,
analysis skills, and experience?
B. To provide detailed census data and A. To evaluate the effectiveness of the ac-
maps tions taken
C. To analyze the physical qualities of fa- B. To provide training for personnel

cilities C. To determine the necessary compe-
D. To calculate transportation costs for tence for personnel
distribution centers D. To enhance customer satisfaction
1608. example of businesses employing hy- 1613. Whixh sequence is the corect about the
brid layout component involves in operations manage-
A. grocery stores ment?
B. ship manufacturing A. Output, transformation, feedback, out-

put
C. paper manufacturing
B. Input, transformation, feedback, out-
D. automobiles put
1609. This layout allows building of teams and C. Input, transformation, feedback, out-
cross training team members put
A. Work-Cell Layout D. Input, transformation, output

1614. has IIP (prepared by Central Statis- your operations and then modeling your or-
tics Office, India) stands for highest ganisation after them is known as:
weight in

A. Continuous improvement
A. Mining B. Employee empowerment
B. Electricity C. Benchmarking
C. Manufacturing D. Copycatting
D. None of the above E. Patent infringement
1615. What is the primary goal of supply chain 1619. Chain of the customer is applicable to
management in operation management?
A. Minimizing risks A. Internal customers
B. Minimizing inventory levels B. External customers
C. Maximizing inventory levels C. None of above
D. Optimizing inventory levels D. Both a and b
1616. It eliminate the need for relay control 1620. What is FEEDBACK?
panels, and they can be reprogrammed and A. Control mechanism to measure the ac-
take less space, they have been adopted tual performance.
widely in manufacturing systems and op-
erations. B. The final result obtained after the
transformation process.
A. Adaptive Control
C. The conversion of inputs into outputs.
B. Programmable Logic Controllers
D. Basic materials needed for the pur-
C. Computer Numerical Control pose of producing goods.
D. Direct Numerical Control
1621. What does ERP stands for?
1617. House of Quality A. Enterprise Reserve Planning
A. is a graphic technique for defining the B. Enterprise Resource Process
relationship between customer desires C. Enterprise Resource Planning
and product (or services)
D. Enterprise Reserve Process
B. is a part of quality function deployment
process that utilizes a planning matrix to 1622. Directing and managing employees day
relate customer wants to how the firm is to day activities
going to meet those wants.
A. Management
C. is a process of determining customer B. Census
requirements and translating them into
the attributes that each functional area C. Rules
can understand and act on. D. Leadership
D. none of above
1623. What is the purpose of time studies in
1618. The process of identifying other organ- work measurement?
isations that are best at some aspect of A. To set performance standards

B. To analyze market trends C. Fixed position layout

C. To manage employee benefits D. Combination layout
D. To develop marketing strategies 1629. What is:where a quantity of one prod-
1624. General Electric Matrix is divided into uct is made, then a quantity of another
how many cells item will be produced
A. 4 A. Job Production
B. Batch Production
NARAYAN CHANGDER
B. 9
C. Flow Production
C. 16
D. 25
1630. It is used to describe collection of anal-
1625. The first step in choosing a location for
ysis techniques which focus on improving
a service facility involves answering which
the effectiveness of men and machines.
of the following questions?:
A. Motion Study
A. What is the purpose of the service and
how will success be measured? B. Method Study
B. How many facilities will be con- C. Time Study
structed? D. Work Study
C. Are the potential sites limited due to
1631. What is the objective of location strat-
access, zoning restrictions, labor avail-
egy?
ability ?
A. To maximize the benefit of location to
D. All of the above questions must be
the firm
asked.
B. To minimize the cost of location to the
1626. What kind of material can be covered on firm
“Copyright”?
C. To increase the productivity of location
A. Books and plays to the firm
B. photographs and movies D. To reduce the risk of location to the
C. Music and dances firm
D. All of the above. 1632. The two general approaches to forecast-
ing are:
1627. Quality is defined as a measure of how
close a or conforms to standards A. mathematical and statistical.
and specifications (Stevenson, 2009) B. moving average and weighted moving
A. buy; sell average.
B. product; service C. qualitative and quantitative.
D. historical and experience.
1628. The following type of layout is pre-
ferred for low volume production of non 1633. A graphical representation of a process
standard products is known by which term?
A. Product layout A. Organization chart
B. Process layout B. Venn diagram

C. Flowchart 1639. Which one is NOT the objective of oper-

ations management?
D. Timeline

A. The bottleneck in the production pro-
1634. An operations manager can be likened cess
to which other occupation? B. Using resource efficiently
A. Orchestra conductor C. Adapting for future survival
B. Attorney D. Meeting expected demand and deliv-
C. Journalist ery dates
D. All of the above 1640. The transformation consists of 3 stages,

namely
1635. Just in time is A. process, operation, output
A. Single unit production B. operations, processes, inputs
B. Big lot size production C. input, proses, output
C. Both a and b D. input, proses, operasi
D. None 1641. It is the intentional act of creating some-
thing useful according to the quantity de-
1636. A Manufacturing business can be charac-
manded, quality specification and delivery
terised by;
schedule
A. Goods are tangible A. Operation
B. Goods are intangible B. Production
C. Goods can’t be easily stored C. Product Planning
D. High level of customer input D. Organizing
1637. What is the role of human resource man- 1642. ‘Fixed’ layouts are usually used for:
agement in a business organization? A. Automotive industry
A. Providing funds for business opera- B. Electronic production
tions C. Big construction project
B. Identifying customer needs and wants D. Industrial textile
C. Dealing with workforce issues
1643. Which one of the following statements
D. Producing goods or providing services regarding operations management is true?
A. Inputs to a production system include
1638. Product Quality Dimensions (Eight Di-
capital and materials, but not human re-
mensions of Quality), select as many:
sources.
A. Performance, Features B. Operations management deals only
B. Perceived Quality, Aesthetics with manufacturing organizations be-
cause service organizations do not have
C. Serviceability, Conformance
tangible outputs.
D. Flexibility, Durability
C. Typical inputs to a production system
E. Convenience, Completeness are processes and consumer goods.

D. Customer participation and informa- B. line-and-staff Organization

tion on performance are two special types C. Policies
of inputs to a production system.
D. Census
1644. A technique that uses historical data as
inputs to make informed estimates that 1649. When speaking in the context of man-
are predictive in determining the direction ufacturing, is a catch-all term that’s
of future trends. used to describe a manufacturing sys-
tem’s ability to make adjustments to bet-
NARAYAN CHANGDER
A. Forecasting Process
ter handle nuances like mixed parts, vari-
B. Product Life Cycle ations in assembly, variations in process
C. Forecasting sequence, production volume changes, de-
sign changes, and other changes.
D. Quantitative Methods of Forecasting
A. flexibility
1645. What is supplier selection in supply
B. productivity
chain management?
C. space utilization
A. The process of identifying and select-
ing the best suppliers D. capital maximization
B. The process of managing supplier rela- 1650. This method is suitable for new product
tionships and product design in the market.
C. The process of setting performance A. Consumer market survey
standards
B. Delphi method
D. The process of calculating inventory
turnover C. Trend projection
D. Sales force composite
1646. The contributor of “specialization of la-
bor in manufacturing” 1651. Choudhury Ltd has fixed costs of $20,
A. ADAM SMITH 000. It costs them $4.00 in variable costs
to produce one item. They produce 30,
B. ELI WHITNEY & OTHERS
000 items. Calculate Choudhury Ltd.’s to-
1647. is a formaldocument, this is the form of tal variable costs:
workplacecommunication that sums up a A. $60, 000
form ofdisciplinary action.
B. $50, 000
C. $30, 000
B. Issuing Written Reprimand
D. $120, 000
C. Implementing Performance Improve-
ment Plans 1652. What is job production?
D. Issuing a Written Suspension A. a production method that aims to re-
E. Terminating an Employee duce or eliminate the need for holding
inventories of raw materials or finished
1648. Owners make decisions and direct day products.
to day B. is where a single product is made at a
A. Line Organization time.

C. nvolves producing a quantity of one 1657. What are diseconomies of scale?

product and then moving on to produce an- A. Decrease in costs per unit of output as

a company grows
D. known as mass production, involves B. No change in costs per unit of output
producing large quantities of a product in as a company grows
a continuous process.
C. Increase in revenue per unit of output
1653. Is knowing exactly what you wany men as a company grows
to do and then seeing to it that they do it D. Increase in costs per unit of output as
in the best and cheapest way a company grows
A. Production
1658. The following is not a major contributor
B. Management in the development of Control Charts and
C. Operations Sampling plan
D. Directing A. F H Dodge
B. H G Roming
1654. Optimizes materials and capacity simul-
taneously to create a constraint-based C. J M Juran
plan that approaches balancing material D. none of above
and plant resources while meeting cus-
tomer demand. 1659. The most important resources that the
production manager employs
A. Advance Planning System
A. Labor
B. Capacity Planning
B. Employment
C. Production Planning System
C. Management
D. Modern system
D. Operations
1655. This term describes how productively a
business uses its resources when produc- 1660. What Technological Strategy does this
ing a good or service. image depict?
A. Effectiveness
B. Efficiency
C. Operations management
D. Inputs
1656. All business has three main functions.
One of which is and it primary role A. Computer-aided design
is to analyze all activities, eliminate those
B. Automated production line
that do not add value, and restructure pro-
cesses and jobs to achieve greater effi- C. Website development
ciency. D. Computer-aided manufacturing
A. finance 1661. Production is the creation of goods and
B. marketing services.
C. operations A. True
D. human resource B. False

1662. Procurement is one of the several sup- 1666. In the context of e-commerce, it is im-
ply functions involved in portant to:
A. Supply Chain A. Has a variety of products
B. Logistics B. Provide fast delivery
C. Purchasing C. Has competitive prices
D. Inventory D. All true
NARAYAN CHANGDER
1663. Mass customization is 1667. Quality control is the process of ensur-
ing that goods and services meet customer
expectations.
A. True
B. False
Explanation:Quality control is the process
of ensuring that goods and services meet
customer expectations. It is important for
A. Combines jobproduction withmasspro- a number of reasons:Customer satisfac-
duction to customizeproducts to suit indi- tion:Customers are more likely to be sat-
viduals isfied with goods and services that are of
B. Usedwhen a continuous conversionof high quality. This can lead to increased
inputs results in a continuous finished- customer loyalty and repeat business. Re-
product. Inputsmay include heat, time, duced costs:Quality control can help to re-
pressure duce costs by preventing defects and re-
ducing the need for rework. Improved
C. Producing aone-off itemspecifically de-
reputation:A company with a good repu-
signed for the customer
tation for quality is more likely to attract
D. Products are made in separategroups new customers and investors. Legal com-
with each group going through thecom- pliance:In some industries, there are le-
pleteprocess together gal requirements for certain quality stan-
dards. For example, food and beverage
1664. MRP stands for manufacturers must comply with strict
A. Match Review Panel food safety regulations.
B. Materials Requirements Plan 1668. Contract manufacturing occurs when:
C. Master Requirements Plan A. Your business produces your own
D. none of above product
B. Your business hires a manufacturer to
1665. The dependent query technique used in
produce your product
a production environment is called
C. Your business produces a service
A. Bill of material
D. none of above
B. Aggregate planning
C. Enterprise resource planning 1669. means the probability that a product
will perform without failure when oper-
D. Capacity planning ated under reasonable conditions through
E. Material requirements planning its normal life.

A. Quality Control C. machine layout

B. Quality Control in Production D. machine selection

C. Reliability 1674. Which of the following is directly and
D. Quality Checking equally important to operation and mar-
keting management?
1670. A(n) is a paper inventory record for A. Product specification and product qual-
a single item. ity
A. receipt B. Process design
B. balance sheet C. Inventory and material requirement
C. stock card planning
D. income statement D. Maintenance
1671. Which one is not the factors influencing 1675. “meeting the objectives of the business
the determination of safety stock? by using inputs productively to meet cus-
tomers’ needs” is the definition of
A. Annual usage
A. sustainability
B. Manufacture lead time
B. productivity
C. Stock out cost C. efficiency
D. Seasonality and Macro/environmental D. effectiveness
issues
1676. Operations risk management is primar-
E. Nature of the employees
ily about:
1672. Define quality assurance and its role in A. Understanding material perishability
production. B. Managing various hazards
A. to producing goods or services that C. Identifying the proper level of insur-
meet or exceed customer expectations. ance
B. process of checking for quality at the D. none of above
end of production using inspectors.
1677. It leads to user-based definition of qual-
C. checking for quality standards
ity or creation of product based on its in-
throughout the production process by em-
tended use.
ployees.
A. Transcendent perspective
equal total revenue. B. Product perspective
C. Value perspective
1673. REFERS TO DECIDING ON THE
D. users perspective
WAYPRODUCTION OF GOODS OR SER-
VICES WILL BEORGANIZED. PROCESSES 1678. is NOT an objective of Operations
CONVERT INPUTS TOOUTPUTS; THEY Management
ARE THE CORE OF OPERATIONSMANAGE-
A. Reduce risk of disruptions to organiza-
MENT.
tion’s production systems
A. facility layout B. Increase flexibility of organization’s
B. process selection production systems

C. Maximising cost of producing goods 1683. Production that uses lots of machin-
and services ery and automation. Does not use much
labour.
D. Maximise efficiency of organization’s
production systems A. Labour intensive
B. Land intensive
1679. In a deprived area, what would attract
a business? C. Capital intensive
D. Robotic intensive
A. Government Grants
NARAYAN CHANGDER
B. Availability of labour 1684. JIT inventory control mean that:
A. Inventories are not stored.
C. Advice and Support
B. Inventories are kept to a maximum.
D. Cost of stock
C. Inventories are kept to an absolute
1680. Quality Function Deployment refers to minimum.
D. Inventories are FIFO
A. determining what will satisfy the cus- 1685. The many flavors of ice-cream offered
tomer by ice-cream parlors are reflective of the
B. translating customer desires into tar- of today’s customers.
get design A. Bargaining Power
C. determining what will satisfy cus- B. Homogeneous preferences
tomers and where to deploy quality ef- C. Heterogeneous Preferences
forts
D. Knowledge Base
D. moving from market requirements for
a product to achieving product success 1686. All of the answer below is the charac-
teristics of the goods EXCEPT
1681. What is the formula for cost per unit? A. can be inventoried
A. (Total fixed cost + Total Variable Cost) B. site of facility important to minimize
/ Total Cost production cost
B. Total Cost / (Total fixed cost + Total C. some aspects of quality measurable
Variable Cost) D. reselling unusual
C. (Total fixed costs + Total Variable
Costs) / total number of output 1687. Sometimes this process referred to as
loading or routing
D. Total Number of Output / (Total fixed
A. Production planning and control
costs + Total Variable Costs)
B. Production
1682. Characteristic of a service business: C. Physical facilities management
A. Intangible D. Operations
B. Tangible 1688. MRP II stands for:
C. Low Customer Contact A. Material resource planning.
D. Can be stored B. Management requirement planning.

C. Material revenue planning. cut into French Fries, they are packaged,
D. Management resource planning. boxed and frozen, ready to be delivered
to restaurants around Australia. True or

1689. What is the purpose of forecasting in False?Fresh potatoes, machinery, labour
businesses? resources and other ingredients are all in-
puts of Chally Fries’ operations system.
A. To formulate a clear strategy and
roadmap A. True
B. To allocate resources effectively B. False
C. To stay competitive by improving prod- 1694. Total quality management focuses on
ucts and services A. Employee
D. All of the above B. Customer
1690. Which of these is the best definition of C. Both a and b
‘Innovation’? D. None
A. Adding value through invention 1695. Of the folowing examples, which would
B. The development of new products be breaking a rule
C. Development of new production pro- A. Mandy is late to work because she is
cesses stuck in traffic
D. The commercially successful exploita- B. Brittany, suffering from the flu, called
tion of ideas out sick
C. Zach is tired of making minimum wage
1691. two broad categories of operations and decides to steal from Benny’s
A. intermittent processing system D. Justin took 5 minutes more on his 30
B. continuous processing system minute break
C. discrete processing system 1696. The facilities strategy has two sub
D. automation strategies what are they?
A. Layout and Fixed
1692. In ABC Analysis, Items are classified
based on B. Layout and Location
A. Consumption/ usage value C. Location and Limit

D. Location and Facilities
B. Availability of the resource
C. Value of the item in store 1697. services can be inventoried?
D. Cost of the item A. Yes
B. No
1693. Chally Fries is an Australian based man-
ufacturing company located in Geelong. 1698. Which from the following is not a de-
The business specializes in the production mand forecasting method?
of frozen French fries and supplies over A. Historical analogy
60 restaurants around Australia. Fresh
B. Delphi method
potatoes are delivered weekly to the fac-
tories, which are then washed and cut by C. Time series
machines. After the potatoes have been D. Probability

1699. If the Output is 10, 000 units and the 1704. Which of the following functions of
number of employees is 25 what is the management would apply when grouping
Labour productivity per employee. tasks into departments?
A. 40 A. planning
B. 4000 B. organizing
C. 400 C. implementing
D. 40000 D. controlling
NARAYAN CHANGDER
1700. Anthony has a great way to increase 1705. Denzel’s appliance store had total sales
business at Dave’s. However, he de- of $194, 000 last month. Of that amount,
cides not to share the idea-knowing that $36, 860 came from the sale of refrigera-
his manager likes to make all decisions tors. What percentage of total sales came
and that the manager never takes em- from refrigerators last month?
ployee opinions seriously. Of the follow- A. 19 percent 19%
ing, which best describes this management
style? B. 29 percent 29%
A. Autocratic Style C. 9 percent 9%

D. 39 percent 39%
B. Consulting Style
C. Let it be 1706. What does order quantity refer to
D. Democratic Style A. Maximum quantity
B. Minimum quantity
1701. Six Sigma is used for process
C. Actual quantity
A. Measurement
D. None
B. Improvement
C. Both a & b 1707. “It is the concept that the companies
should focus on quality improvement from
D. None of the above design stage”.
1702. What is the importance of facility loca- A. Taguchi concept
tion and layout decisions? B. Knowledge of TQM
A. Proximity to Raw Materials and Mar- C. Employee empowerment concept
kets
D. Six sigma concept
B. Availability of Labour
C. All of the above 1708. Airline companies can generate more
revenue by installing the minimum num-
D. Energy and Transportation Costs ber of seats on an aircraft and limiting the
space offered to passengers. However,
1703. The ratio of PRODUCTIVITY is “WHAT
passenger satisfaction also increases by
THE COMPANY MAKES” divided by
providing more comfortable seats that oc-
“COSTS EARNED BY THE COMPANY”
cupy more space in the aircraft.
A. TRUE A. First statement is TRUE. Second state-
B. FALSE ment is FALSE.

B. First statement is FALSE. Second state- C. Reduced operational costs

ment is TRUE. D. Expanded product line

C. Both statement are TRUE.
1713. What is the best approach for opera-
D. Both statement are FALSE. tions managers to make decisions?
Explanation:Airline companies can gener-
A. Based on the data
ate more revenue by installing the MAXI-
MUM number of seats on an aircraft and B. Based on emotions
limiting the space offered to passengers. C. Based on intuition
However, passenger satisfaction also in-
D. Based on assumptions
creases by providing more comfortable
seats that occupy more space in the air- 1714. Why do businesses need to be close to
craft (Law, 2019). customers?
1709. The objective of supply chain manage- A. increase the transportation cost
ment is/are B. to increase sales
A. Reduce distribution cost C. because all services are sold directly
B. Make product available in the market to customers
C. Balancing supply and demand D. for convenience
D. B and C both 1715. It includes all activities involved in ob-

taining, training, and compensating the
E. A, B and C
employees of a business.
1710. 1) A firm invents an app that allows A. Staffing
customers to make purchases with their
B. Planning
smartphone. The firm hopes its new mo-
bile payment app will the efficient C. Organizing
frontier through D. Implementing
A. Shift, Innovation 1716. Product Strategy options support Com-
B. Stay on, Innovation petitive Advantage, including:
C. Shift, imitation A. Differentiation
D. Stay on, Imitation B. Low Cost
1711. This refers to the art and science of pre- C. Rapid Response
dicting future events D. All of the above
A. Forecasting 1717. What is:a computer software that
B. Forcasting draws items being designed more quickly
and allows them to be roatated to see the
C. Fourcasting
item from all sides. It is used for designing
D. Forcasteing new products or re-styling existing ones
1712. Which of the following is a benefit of A. Automation
effective operations management? B. Mechanisation
A. Improved public relations C. Computer Aided Design (CAD)
B. Increased market share D. Computer Aided Manufacture (CAM)

1718. When Mr. Iafrate provides students 1723. Which of the following does not gener-
with candy for good behavior and good ate pressure to decrease inventories?
grades, he is applying which management
A. taxes and insurance
theory?
B. inventory holding costs
A. Theory W
C. ordering costs
B. Theory X
C. Theory Y D. storage and handling costs
NARAYAN CHANGDER
D. Theory Z 1724. Similarity between manufacturing and
service business:
1719. What is:where equipment used in the
factory is controlled by a computer to carry A. Both outputs can be stored
out mechanical processes, e.g. spraying B. Both are intangible
paint on a car. The production line will con-
sist mainly of machines and there are only C. Both aim to increase waste
a few people needed to ensure everything D. Both aim to increase efficiency
runs smoothly
1725. What is a global strategy?
A. Automation
B. Mechanisation A. a plan of action designed by a company
to manage a local business
C. Computer Aided Design (CAD)
B. a plan of action designed by a com-
D. Computer Aided Manufacture (CAM) pany to compete successfully in the inter-
national marketplace
1720. Material Handling is , , and
control of materials and products through- 1726. For a supermarket, one of the advan-
out manufacturing, warehousing, distribu- tages of holding high stocks of existing
tion, consumption and disposal products is:
A. movement, protection, storage A. low costs of financing the stock level
B. modification, protection, storage
B. being able to respond quickly if con-
C. modification, production, storage sumer tastes change
D. movement, protection, silage C. being able to meet unexpected in-
creases in demand
1721. Technology, ever changing, plays a key
role in spring boarding constant advance- D. being able to put unused space to
ments in management. other uses.
A. TRUE 1727. What is the main focus of quality plan-

B. FALSE ning in a quality management plan?
A. To set quality standards for a project
1722. Organizations have their own Mission
so it knows where it is going and a strat- B. To evaluate various aspects of an ac-
egy so it knows how to get there. quisition project
A. True C. To monitor employee satisfaction
B. False D. To develop quality objectives

1728. Which of the following refers to the pro- sometimes cost Carly more in terms of ex-
cess of turning raw materials or inputs into penses, which strategic role of operations
finished goods or products? does this help to achieve?

A. Management A. Cost leadership
B. Planning B. Revenue
C. Productions C. Product/service differentiation
D. Operations D. Flexibility
1733. which of the following is a primary fac-
1729. Six Sigma Step 2:Measure
tor in choosing facility location?
A. The Current performance of the pro-
A. natural factors
cess
B. political factors
B. The process to identify the root causes
of the quality problem C. labor supply
C. The process by eliminating the root D. personal factors

causes of the problem 1734. What is Operation Management?
D. The process to ensure the improve- A. Operation
ments continue. B. management
1730. It is the ongoing process of building and C. Marketing
sustaining relationships by assessing, an- D. none of above
ticipating, and fulfilling stated and implied
need. 1735. Below are the characteristics of services
EXCEPT:
A. Quality Management System
A. High customer interaction
B. Quality
B. Can be inventoried
C. Short lead time
D. Traditional Approach
D. Labour intensive
1731. All of the following are concerns about 1736. Which of these is not a major reason to
inventory that managers must address EX- outsource a product or service?
CEPT
A. To reduce operating costs
A. maintaining a wide assortment of
B. To increase control of the process
stock
C. To give access to higher technical abil-
B. reducing inventory turnover
ity
C. not ending up with out-of-date items D. To focus on core business areas
D. keeping stock levels as low as pos-
1737. The two general approaches to forecast-
sible without sacrificing performance or
ing are
service
A. mathematical and statistical
1732. Carly’s cake shop customizes every or-
B. qualitative and quantitative
der based on the consumer’s wants. She
also offers same-day delivery for orders C. judgmental and qualitative
placed before 11 am. Even though this can D. historical and associative

1738. Which one of the following is NOT one 1743. Forecasting is

of the four basic layout types found in the A. predicting future events
general arrangement of operations facili-
ties? B. taking historical data and projecting
them into the future with some sort of
A. Cellular Layout mathematical model
B. Process layout C. the only estimate of demand until ac-
C. Primary Layout tual demand becomes unknown
NARAYAN CHANGDER
D. Fixed-position layout D. the only estimate of demand until ac-
tual demand becomes known
1739. What is the definition of productivity?
1744. MSU Incorporated want to assess its
A. The raw materials, components and
productivity in a broader view. The com-
parts used to produce a good or supply a
pany has ten employees, working 8 hours
service
per day (salary RM20 an nour, which costs
B. Any change to inputs that adds value the company RM1500). Other expenses
and converts them into outputs incurred per day amounts to RM1000.
C. A measure of how efficiently goods One employee is able to produce 50 units
and services are produced of products in a day.
D. The features implemented by a busi- A. 0.23 units per Malaysian Ringgit
ness that create an advantage over its B. 0.21 units per Malaysian Ringgit
competitors
C. 0.22 units per Malaysian Ringgit
1740. Productivity = D. 0.20 units per Malaysian Ringgit
A. Input / Output
1745. Process Layouts
B. Output / Input
A. Facilities are more labor intensive
C. Output-Input
B. Facilities are more capital intensive
D. Input-Output
C. Low flexibility relative to the market
1741. When producing a service, you can ex- D. Processing rates are faster
clude which of these from your production
plan? 1746. What is:Quantity Sold x Price
A. How to process orders A. Revenue
B. How customers purchase the product B. Total Revenue Formula
C. Where you get your raw materials C. Break-Even Point
D. none of above D. Contribution
1742. Bayanihan Act I is also known as 1747. Why is inventory necessary in opera-
tions?
A. RA. 9184
A. To allow different stages of processing
B. RA. 11494 to operate at different speeds
C. RA 91630 B. To compensate for unexpected fluctu-
D. RA. 11469 ations in supply and demand

C. To cope with transportation delays C. Implementing outdated technology,

D. To smooth the differences between relying on manual processes, and neglect-
ing employee training.

supply and demand
D. Implementing efficient management
1748. What is the purpose of supplier manage- practices, streamlining operations, and in-
ment in supply chain management? vesting in technology and automation.
A. To ensure suppliers meet the organiza-
tion’s requirements 1752. When you wish to have a strong control
B. To improve product or service quality on the product quality, characteristics and
better time management, you will choose?
C. To develop strong supplier relation-
ships A. Make
D. All of the above B. Buy
1749. A market analysis C. Create Partnerships
A. assesses whether there’s enough suf- D. Create Joint Ventures

ficient capacity available for production
1753. Which of these is a qualitative factor im-
B. estimates production and develop- pacting choice of business location?
ment costs and compares them to esti-
mated sales volume. A. The availability of Government grants
C. assesses whether there’s enough de- B. The availability and cost of skilled
mand for the proposed product to invest labour
in developing it further
C. The rental cost of the business
D. none of above premises
1750. According to ISO, what does quality con- D. The quality of the area’s transport and
formity entail? leisure facilities
A. Adaptation and conformity to the re-
1754. Which of these hotels is NOT on the ef-
quirements established by ISO and cus-
ficient frontier?
tomers
B. Adaptation to the requirements estab- A. A
lished by ISO only B. B
C. Conformity to the requirements estab- C. C
lished by ISO only
D. D
D. Conformity to the requirements estab-
lished by customers only
1755. What is the most likely result of a busi-
1751. How can diseconomies of scale be ness achieving economies of scale?
avoided? A. Greater flexibility
A. Increasing production volume, hiring B. Higher sales price per unit
more employees, and expanding facilities.
C. Greater efficiencies in production
B. Reducing the size of the organization,
cutting costs, and downsizing operations. D. Higher average costs of production

1756. The process for creating a product de- A. Just in Stock production
sign is in this order: B. Just in Lean production
A. idea, approval, specs, approval, draw- C. Just in Time production
ing, modeling, manufacture
D. Just in Kaizen production
B. specs, approval, drawing, idea, ap-
proval, manufacture, modeling 1761. In service organizations the customers
C. approval, idea, modeling, approval, are typically present during the creation of
the service. Hospital is an example of ser-
NARAYAN CHANGDER
manufacture, drawing, specs
vice organizations in which the customer is
D. idea, drawing, approval, specs, ap- present during the creation of the service.
proval, manufacture, modeling
A. TRUE
1757. Andon a Japanese term which refers to B. FALSE
a
1762. Which is irrelevant information for fore-
A. Message
casting production data?
B. Display
A. Past data
C. Signal
B. Experience
D. none of above
C. Trend
1758. Which definition best describes Corpo- D. Income
rate Social Responsibility?
1763. It is the loss which occurs or which may
A. Corporate social responsibility (CSR)
occur due to non availability of material.
takes into account an approach that is
both ethical and socially responsible. A. out of stock costs
B. Corporate social responsibility (CSR) B. ordering costs
is a legal obligation for businesses. C. inventory costs
C. Corporate social responsibility (CSR) D. over stock costs
does not take into account the Environ-
ment and society’s health and welfare, 1764. what is the cost of holding inventory?
ethical concern for its workforce and their A. large orders of new supplies reduce
families. costs
D. Corporate social responsibility (CSR) B. reduces risk of lost sales
is the same across all businesses.
C. risk of wastages and obsolescene
1759. These are the advantages of work cell D. avoids the need for special orders
EXCEPT from suppliers
A. Reduced inventory
1765. What does a company’s information sys-
B. Improved equipment utilization tem need to deliver to different parties
C. Reduced Floor space who need to access the supply chain infor-
mation of an organisation, whether they
D. Improved customer satisfaction be employees, suppliers, logistics service
1760. Focused on only ordering raw materials providers or customers?
when an order is received from a customer A. Supply chain visibility

B. Password and user name reminders 1770. Which technological strategies can ser-
C. Radio-frequency identification of prod- vice businesses use to optimise their oper-
ations? (Select all the apply)

ucts
D. None of the above A. GPS
B. Websites
1766. forecasts employ one or more math-
ematical models that rely on historical C. Robotics
data and/or associative variables to fore- D. Video Conferencing
cast demand.
A. Qualitative 1771. What is the main purpose of quality im-
provement?
B. Quantitative
A. To increase the cost of products or ser-
1767. This provide guidelines to interpret the vices
quality management and quality assur-
B. To create efficiencies and address cus-
ance. This also has suggestions which are
tomer needs
not mandatory.
C. To establish a culture of competition
A. ISO 9003
within the organization
B. ISO 9001
D. To reduce the number of employees in
C. ISO 9004 the organization
D. ISO 9002
1772. (a) A level of stock held in reserve, typ-
1768. An improvement in technology reduces ically proportionate to the overall capacity
the time between Task C and Task D to one of an organization as a means of safety
day. What is the new length of the critical stock.
path? A. a BY
B. STOCK
C. ITEM
D. none of above
1773. Laws and regulations are affecting

transportation, waste and noise areprolif-
A. 3 days erating and can be as much of a challenge
as reducing resource use.
B. 5 days
C. 6 days A. Recycle
D. 10 days B. Feasibility
C. Regulation
1769. Below are the characteristics of services
EXCEPT: D. Resources
A. Labour intensive 1774. What is a limitation of Batch produc-
B. Cannot be inventoried tion?
C. Intangible product A. it produces mass quantities
D. Long lead times B. lots of storage space needed

C. maybe downtime 1780. 1) A firm must make trade-offs because

D. it is a faster process no single company can excel at everything.
A. True
1775. The following are the advantages of us-
ing just in time, except B. False
A. Reduction in set-up time
1781. What is the main focus of goods-
B. Improvement in quality producing organizations in location strate-
C. Steps in production process gies?
NARAYAN CHANGDER
D. Expanded job scope A. Revenue focus
1776. Which are the TWO (2) characteristics B. Cost focus
of services? C. Volume focus
A. Can be inventoried and Tangible prod-
D. Quality focus
uct
B. Long interaction with customers and 1782. Human resources management and sup-
capital intensive pliers is also very important in OM func-
C. Capital intensive and Quality is objec- tions?
tively determined A. True
D. High interaction with customers and B. False
Labor-intensive
C. Not Sure
1777. What is the goal of the performance ob-
D. none of above
jective ‘speed’?
A. To reduce wait times for the product 1783. Process Layouts:Select Two
B. To increase costs for the business A. High material handling costs
C. To decrease communication within the B. Higher space requirements
team
C. Lower material handling costs
D. To decrease processing times
D. Lower space requirements
1778. (a) The “part of quality management fo-
cused on providing confidence that quality 1784. What are the productivity variables?
requirements will be fulfilled”.
A. Labour
A. a Quality Assurance
B. Capital
B. Quality Assistance
C. Management
1779. Added value is when
D. Entrepreneurship
A. Inputs are transformed to create out-
puts that meet customer demand 1785. What is job production?
B. Inputs are made A. 1. Producing goods one at a time
C. Inputs are transformed to create dif-
B. 2. Producing goods in small quantities
ferent outputs
C. 3. Producing goods in large quantities
D. Inputs of a high quality have more
value D. 4. Producing goods for a limited period

1786. This is a major operations management 1791. It is the process of preparing to meet
philosophy, developed in Japan in the quality goals.
1980s, that is designed to achieve high-

A. Quality Planning
volume production using minimal amounts
of inventory. B. Quality Control
C. Quality Improvement
A. Supply chain management (SCM)
D. none of above
B. Just-in-time (JIT)
C. Business-to-business (B2B) 1792. Quality is defined as a measure of how
close a product or service conforms to
D. none of above standards and specifications (Stevenson,
2009).
1787. What is a franchise?
A. True
A. Where a business sells the rights to
B. False
their brand
B. Where you have full control 1793. If the actual output is 250 units pass-
ing through process A with capacity of 300
C. Where you keep all the profits units, process B with capacity of 275 units
D. none of above and process C with capacity of 350 units,
identify the bottleneck Centre.
1788. Who introduced quality concepts in A. A
Japan after World War II?
B. B
A. W. E. Deming
C. C
B. Thomas Edison D. none of above
C. Henry Ford
1794. A symptom of a business experiencing
D. Alexander Graham Bell diseconomies of scale would be:
A. Output rising and average/unit costs
1789. Refers to the limiting factor or con-
falling
straint in a system
B. Output falling and unit/average costs
A. Bottleneck rising
B. Theory of Constraints (TOC) C. Output rising and average/unit costs
C. Delay rising
D. Design Capacity D. Output falling and unit/average costs
falling
1790. What type of management involves ca-
1795. A lets the product stay in one place
pacity management, supply chain manage-
while workers and machinery move to it
ment and quality management?
as needed.
A. Organizational management A. product layout
B. Operations management B. fixed position layout
C. Financial management C. hybrid layout
D. none of above D. process layout

1796. Global strategy is focused on achieving 1801. This is the main structure of the air-
economies of scale by leveraging the com- craft, which contains the cockpit or flight
pany’s strengths across multiple markets, deck and the passenger and cargo compart-
while adapting to local conditions and cul- ments. It also connects the major parts of
tures in order to be competitive in each inan aircraft and carries the payload.
dividual market. A. Fuselage
A. True B. Wings
B. False
NARAYAN CHANGDER
C. Aileron
1797. Utility created by people converting raw D. Flap
materials, finances, and information into
finished products is called: 1802. Ear protection needed if exposed to 50
decibel in 8 hours or more
A. Place utility
A. True
B. Time utility
B. False
C. Form utility
D. Possession utility 1803. The theoretical maximum output of a
system in a given period, under ideal con-
1798. Operations planning decisions are influ- ditions.
enced by
A. Design Capacity
A. technology
B. Product Design
B. market demand
C. Capacity Design
C. skills of the labor
D. Product Capacity
D. availability of resources
1804. The buffer stock level is:
1799. What is the purpose of pipeline inven-
tory?
A. To cope with planned fluctuations in
supply or demand
B. To allow different stages of processing
to operate at different speeds
A. 300
C. To cope with transportation delays
B. 200
D. To compensate for unexpected fluctu-
C. 500
D. 100
1800. Ford is an American multinational man-
ufacturer of cars. If they were looking 1805. is to assess the newlyhired employee if
to open a new manufacturing facility, in they really absorbed of what they learned
which economic are would they look? in the actual training.
A. One that is primarily industrial A. Medical Examination
B. One that is primarily service-oriented B. Training Application Examination
C. Both A & B C. Training
D. Neither A nor B D. Examination

1806. A written agreement to sell someone A. Jury of executive opinion

else’s product in a prescribed manner is B. Delphi Method
called a?

C. Sales force composite
A. Certificate of Incorporation
D. Consumer Market Survey
B. Franchise
C. Partnership 1811. Which of the following would not be an
operations function in a fast-food restau-
D. LLC rant?
1807. The four key strategies to improve effi- A. advertising and promotion
ciency and effectiveness in operations are: B. designing the layout of the facility
A. Materials Management2)Technology3)Quality C. maintaining equipment
Management4)Waste Minimisation
D. making hamburgers and fries
B. Inventory2)Robotics3)TQM4)Lean
management 1812. Which factor of production refers to
human effort in the production process
C. Materials 2)Informatics3)Quality As-
of manufacturing goods and/or providing
surance4)Waste Minimisation
services?
D. none of above
A. Capital
1808. Which picture show Product Life Cycle? B. Resources
C. Land
A.
D. Labour
1813. Quality is “both absolute and univer-

B. sally recognize, a mark of uncompromising
standards and high achievement”.
C. A. Transcendent perspective
B. Product perspective
D. C. User perspective
D. value perspective
1809. What is the main purpose of failure de-
tection and analysis? 1814. World War III created an even greater
need for the ability to quantitatively solve
A. To conduct complaint analysis
complex problems of logistics control, for
B. To investigate accidents weapons system design and deployment
C. To analyze product liability of missiles.
D. To identify and analyze the causes of A. True

failure B. False
1810. Refers to a a technique of predicting fu- 1815. Identify which of the following improve-
ture events that uses the opinion of a small ments in efficiency or effectiveness relates
group of high level managers to form a to each technological strategy.Reduces the
group estimate of demand amount of waste from production.

A. Automated production lines D. The software is cheap to buy

B. CAD E. You can use CAM to bring your model
C. CAM to life
D. Website development 1821. Which of the following factors would be

a performance consideration in facility lay-
1816. sustainability is the dimension of out planning?
the triple bottom line that focuses on using
A. Access to finished goods inventory
resources, both natural and manufactured,
NARAYAN CHANGDER
efficiently and responsibly. B. Proximity to external suppliers
A. Economic C. Labour skill level
B. Social D. Process capability
C. Ecological 1822. If order quantity is more then cost of in-
D. none of above ventory carrying is
A. High
1817. How many quality management strate-
gies are there listed on your Study Design? B. Low
A. 1 C. Minimum
D. Zero
B. 2
C. 3 1823. Google offices serve free food for day
and night for all employees.
D. 4
A. Leadership
1818. Operations management serves as the
B. Commitment
of the organization, planning and driv-
ing manufacturing or services C. Facilitation
A. Production room D. none of above
B. Engine room 1824. LOGISTIC TRENDS (CHOOSE 3)
C. Quality room A. TRANSPORTATION MANAGEMENT
D. none of above B. CUSTOMER RELATIONSHIP MANAGE-
MENT
1819. Occurs when business development
C. NETWORK DESIGN
meets the needs of the present population
without endangering the ability of future D. ETHICS AND SUSTAINABILITY
generations to meet their needs. → Eco-
1825. What are the disadvantages of disec-
logical sustainability
onomies of scale?
A. True
A. Higher costs, decreased efficiency,
B. False and difficulty in managing a larger orga-
nization.
1820. What are the advantages of using CAD?
B. Increased productivity, reduced costs,
A. It is easy to learn and use and improved competitiveness.
B. Precise, accurate drawings/models C. Improved efficiency, lower costs, and
C. You can easily send and edit designs easier management.

D. Decreased productivity, increased B. transformation process

costs, and reduced competitiveness. C. production

1826. A firm that offers tailor-made suits to D. effectiveness
its customers is appealing to the di-
mension of the customer utility function. 1831. CAD Stands for
A. Timing A. Computer Aideds Design
B. Location B. Computer Aidad Design
C. Performance C. Computer Adeid Design
D. Fit D. Computer Aided Design
1827. The aim of Statistical Process Control 1832. Principles of Operations Management
(SPC) is; wherein you don’t have to know every-
thing.
A. to establish a controlled manufactur-
ing process by the use of statistical tech- A. Humility
niques to reduce process variation B. Causality
B. to lower costs (waste, scrap, rework, C. Change
claims, etc.);
D. none of above
C. to have better quality;
1833. is amanagement function concernedwith
D. to gain more insight into the capability
hiring, motivating, andmaintaining work-
of the process.
force in anorganization.
1828. Which of these is an example of an ex- A. Hiring
ternal/industry economies of scale?
A. Having many specialist suppliers lo-
C. Compensation
cated close together and nearby
B. Sharing the cost of marketing cam-
paigns across a wider product range 1834. Walter Shewhart is listed among the im-
C. Obtaining low purchasing prices portant people of operations management
through bulk-buying because of his contributions to
D. Employing specialist managers in the A. assembly line production
business B. measuring the productivity in the ser-
1829. Batch Production is where products are vice sector
made in groups of similar products. C. just-in-time inventory methods
A. True D. statistical quality control
B. False 1835. It is a term used for findingand hir-
1830. “an activity or group of activities that ing the right jobcandidates for businesses
transforms inputs, adds value to them, such ashotels, resorts, casinos, bars, an-
and produces outputs for customers” is drestaurants.
the definition for A. Hiring
A. sustainability B. Human Resource Management

C. Compensation D. Needs are essential requirements,

D. Evaluation and Management wants are desires
1836. What production activity evaluates 1840. Six sigma is defined as below, except
products to make sure that the products
the business produces meet certain quality A. 6 type of product quality
standards?
B. level of quality to indicates well control
A. form utility
C. if CP > 2 means it is well controled
NARAYAN CHANGDER
B. automation
D. Six sigma is calculated by CP
C. follow-up
D. standardization 1841. What involves directing and leading
people to accomplish the goals of the or-
1837. As long as you have a good business ganization?
plan and an innovative product you can
A. balancing
place your business anywhere it will make
profit. B. controlling
C. organizing
D. implementing
1842. One reason why a business might run

out of inventory is:
A. Higher than expected factory produc-
tion
A. true
B. Lower than budget cash flow
B. false
C. An overly-cautious sales forecast
1838. It refers not just to the name, logo, and D. An optimistic weather forecast
color palette that identifies the organiza-
tion but also to the values that the organi- 1843. It is the time that a qualified workers
zation espouses. takes to complete a job at a normal work
A. imaging pace under normal working conditions.
B. branding A. Relaxation time
C. patent B. Standard time
D. none of the above C. Basic normal time
1839. Differentiate between needs and wants D. Observed time

in operations management.
1844. means solid particles capable of being
A. Needs and wants are the same in op- blown about or suspended in the air
erations management
A. Toxic
B. Needs are non-essential require-
B. Vapor
ments, wants are desires
C. Needs are desires, wants are essen- C. Fibers
tial requirements D. Dust

1845. “System ability to adapt quickly to pro- 1850. What is the focus of Agile project man-
duce the output” agement?

A. Flexibility A. A traditional approach to project man-
agement that emphasizes perfect plan-
B. Capacity
ning
C. Efficiency
B. A continuous improvement approach
D. Effectiveness through visualizing and managing the flow
of work
1846. Below are the methods of evaluating lo-
C. A framework that divides larger
cation alternatives EXCEPT:
projects into shorter sprints and lays out
A. Centre of gravity technique rules for team size and roles
B. Market price technique D. An iterative approach to project man-
agement that enables teams to react
C. Factor rating technique
quickly to project feedback
D. Break-even technique
1851. is the totality of functions involved in
1847. What is the key aspect of quality man- thedetermination and achievement of qual-
agement in operation management? ity (includingquality assurance and quality
control)
A. Meeting customer expectations
A. Quality Management
B. Reducing defects
B. Quality Control
C. Increasing defects
C. Total Quality Management (TQM)
D. Reducing customer expectations
D. Quality
1848. The main advantages of mobile layouts
are: 1852. Six Sigma Step 1:Define
A. Flexibility in handling various products A. The quality problem of the process
B. High efficiency in mass production B. The Current performance of the pro-

cess
C. Optimal use of space
C. The process to identify the root causes
D. Low setup costs of the quality problem
1849. The typical aim of the push to customer D. The process by eliminating the root
approach to supply chain management is: causes of the problem
A. To enhance product and service qual- 1853. Inbound Logistics functions to ensure
ity. material availability, this is under what
B. Optimise the production process for category of the Value Chain?
cost and efficiency A. Primary activities
C. To improve costs of distribution B. Support activities
D. Reduce wastage C. Core activities
E. None of the above D. None of the given answer

1854. If it costs Apple $225 to manufacturer A. Head Float

an iPhone and $25 to sell, what is the min- B. Total Float
imum amount they can charge?
C. Free Float
A. $225
D. Independent Float
B. $25
C. $250 1860. What is the cost associated with physi-
cally storing the goods?
D. $699
NARAYAN CHANGDER
A. Cost of placing the order
1855. What does a Gantt chart primarily help
B. Obsolescence costs
with?
C. Price discount costs
A. Financial analysis
D. Storage costs
B. Quality control
C. Project scheduling 1861. It involves expanded views and an un-
derstanding of the seemingly individual
D. Customer feedback
yet truly interdependent elements that
1856. encompasses planning, implementing, compose the larger system, the company.
and supervising the production of goods or A. Theory of Profound Knowledge
services
B. Theory of Zero Defects
A. Management
C. Theory of Quality Revolution
B. Operations management
D. Theory of Quality Control
C. Process
D. none of above 1862. ‘W’ in SWOT stands for
A. What do you do well?
1857. Capabilities that the operations function
can develop in order to give a company a B. What could you improve?
competitive advantage in its market. C. What doors are open to you?
A. Structure D. What threats could harm you?
B. Multifactor productivity
1863. the physical facilities, equipment, and
C. Productivity appearance of personnel.
D. Competitive priorities A. Reliability
1858. Limitations of traditional cost account- B. Assurance
ing are C. Tangibles
A. Assumes factory as an isolated entity D. Empathy
B. It measures only the cost of producing E. Responsiveness
C. Both of these
1864. Which of the following statements con-
D. none of above cerning manufacturing and service organi-
1859. The spare time available if an activity zations is generally true?
starts at the earliest possible time when A. A service facility is more likely to serve
the latest finishing time is used. national or even international markets.

B. Manufacturing organizations generally A. True

have more difficulty in matching capacity B. False
with demand.

C. In many service organizations, such as 1869. To remain competitive, companies need
hospitals and entertainment centers, cus- to have processes in place to consistently
tomers themselves are inputs to the trans- seek better ways of doing things.
formation processes. A. Efficiency
D. Most service organizations can buffer B. Quality
themselves against uncertain demand by C. Continuous improvement
creating inventories and smoothing out-
put levels. D. none of above
1865. Productivity increases when: 1870. If the Annual demand is 40 units, order
costs are 20 Rs per order, and carrying
A. Outputs decrease while inputs remain costs are 20 Rs per unit, what is the us-
the same. age in units?
B. Inputs and outputs increase propor- A. 10 units
tionately.
B. 16 units
C. Inputs decrease while outputs remain
C. 40 units
the same.
D. 80 units
D. Inputs increase while outputs remain
the same. 1871. Service Quality Dimensions components,
select as many as applicable:
1866. Diagram of all jobs in a business and
how they are related A. Accuracy, Completeness
A. Theory X B. Convenience
B. Job Description C. Consistency
C. Organizational Chart D. Courtesy
D. Staff E. Timeliness
1867. Labour or capital intensive 1872. A formal group of volunteers (usually

employees from different departments &
hierarchy) who meet regularly to discuss
ways to improve.
A. Benchmarking
B. TQM
C. Quality Circles
D. Kaizen
A. Labour intensive 1873. Identify whether the following charac-
B. Capital Intensive teristics of operations relate to a manu-
facturing and/or service business. High
1868. An Ishikawa diagram is not the same as degree of customer contact during produc-
a cause-and-effect diagram. tion.

A. Manufacturing 1879. Capacity planning is crucial, because it

B. Service helps an organization be and ?
A. efficient & scalable
1874. Which of the following chart types
would be used to monitor the fraction B. effective & versatile
of a production lot of desktops that had C. efficient & effective
scratches on the surface? D. innovative & scalable
A. x
1880. The fourth step in benchmarking is form-
NARAYAN CHANGDER
B. R-chart ing a benchmark team.
C. p-chart A. Yes
D. c-chart B. No
E. Non
1881. The operations view of quality is, ‘qual-
1875. Which of these would an operations ity is consistent conformance to customers’
manager not be responsible for?: expectations’. By this it is meant that:
A. Safety and maintenance A. There are clear specifications consis-
tently met that provide customers with
B. Sales and marketing
what they would realistically believe they
C. Selecting suppliers should receive.
D. Recruiting employees B. The product will be seen as synony-
mous with innate excellence. The state-
1876. means gaseous form of substances
ment recognizes that the product or ser-
which are normally in the liquid or solid
vice must meet the expectations of cus-
state
tomers, which may be influenced by price
A. Vapor and therefore may not be synonymous
B. Hot with innate excellence.
C. Fumes C. The product must be right every time
irrespective of cost to the operation. The
D. Corrosive
statement recognizes that the product or
1877. What are the objectives of operations service must meet the expectations of cus-
management? tomers, which may indeed be influenced
by price.
A. Achieving customers satisfaction.
D. Anything the customer wants and de-
B. Using resources efficiently sires should be provided by the organi-
C. Ensuring smooth production process zation. The quest is to provide confor-
D. Being an effective producer mance to expectation which we believe to
be likely.
1878. Which of the following is NOT typically
an element of business operations? 1882. State TRUE or FALSE Generally, if there
is a lot of variety in production, the per
A. Equipment unit costs are higher than if there is very
B. People little variety.
C. Processes A. TRUE
D. Marketing B. FALSE

1883. One important key skills in MARKETING B. 2. Consistent quality of products

is to focus on anticipating customer needs, C. 3. Ability to customize products
exceeding expectations, and building rela-

tionships with the guests. D. 4. High production speed
A. True 1889. Whose economist observed that, “The
B. False production problem has been solved.” fol-
lowing the World War II?
1884. Employee relations refers to anorgani- A. Adam Smith
zation’s efforts to createmaintain a posi-
tive relationship withits employees. B. John Kenneth Galbraith
A. Managing relations C. Frederick W. Taylor
B. Promotion D. none of above
C. Training and Development 1890. The following are the common objec-
D. Evaluation and Management tives of operation strategy, except:
A. cost
1885. How many elements in the operations
system/production system model? B. delivery
A. 5 C. flexibility
B. 3 D. none of the above
C. 4 1891. Which of the following is a disadvan-
D. 1 tage of flow production?
A. If one machine breaks down whole
1886. In Forecasting, there is one superior
production have to be halted
method. What works best in one firm
works for all other organizations in the B. Warehouse space will be needed for
same department. stocks of raw materials
A. True C. Costs are higher
B. False D. Production often takes too much time
1887. Should take into account the intended 1892. TQM philosophy Managing supplier
function of the part, the environmental quality
conditions, the stresses to which the prod- A. Quality concepts must extend to a com-
uct will be subjected, and the financial ca- pany’s suppliers
pabilities of the customer.
B. Main Idea
A. Production
C. Goal is to identify and meet customer
B. Quality Service needs
C. Design D. A philosophy of never-ending improve-
D. Testing ment
1888. Which of the following is NOT a benefit 1893. The benefits of forecasting in the
of mass production? medium term are
A. 1. Lower production costs A. Material purchasing planning

B. Production planning and budgeting C. If the system breaks down it slows or

C. Research and development stops production
D. Increases employee satisfaction
D. Sales planning
E. Capacity expansion planning 1900. Method study has six steps. Which of
the following are NOT included?
1894. Understanding how your company cre- A. Record all the relevant facts of the
ates value, and looking for ways to add present method
more value, are critical elements in devel-
NARAYAN CHANGDER
oping a B. Maintain the method by periodically
checking it in use
A. marketing strategy
C. Carry out questionnaire with workers
B. operations strategy
D. Install the new method
C. competitive strategy
1901. Quality circle is;
D. finance strategy
A. Group of employees who meet regu-
1895. Which of the following is an advantage larly to discuss ways to increase quality
of new technology? B. Group of people who meet regularly to
A. Productivity is less discuss ways to plan some activity
B. Productivity is greater C. Group of people who meet regularly to
discuss ways to finalize some quality task
C. Very cheap
D. Employees are very happy
1902. Suppliers must put their shop far away
1896. True or False:Planning takes place dur-
from the other suppliers because they
ing the production process.
have to avoid any healthy competitors
A. True among them.
B. False A. True
B. False
1897. Plan, do, check and act is the method
applies in the continuous improvement. 1903. A firm invests in building a manufactur-
A. Yes ing plant. This investment is an example
of
B. No
A. Cost for outputs
1898. Moving average, weighted moving av- B. Variable cost
erage, exponential smoothing, linear re-
gression are parts of time series forecast- C. Cost for resources
ing D. Marketing cost
A. True 1904. All of these factors will influence the
B. False maximum stock level held by a cheese
maker except:
1899. An an advantage of APL:
A. how perishable the products are
A. Potentially 24/7 production B. the total space available for stock hold-
B. High initial set-up costs ing

C. the interest rate on capital used for B. ELP

buying inventory C. ERP

D. the number of workers available D. MCP
1905. Sets a standard that allows only 3.4 de- 1910. What does the term ‘strategic’ mean in
fects per million opportunities the context of operations management?
A. gantt chart A. Affects all areas of the business
B. PERT B. Focuses only on marketing
C. ISO 9000
C. Involves financial planning
D. Six Sigma Quality
D. Deals with human resource manage-
1906. Which of the following is NOT one of ment
the basic functions of housekeeping in the
1911. This refers to a series of quality man-
hospitality industry?
agement and assurance standards which
A. Making the bed define the elements needed to achieve a
B. Cleaning the bathroom quality system.
C. Taking out the trash A. Process Control
D. Washing the dishes B. ISO 9000
C. Online and Online real-time Quality
1907. What are inputs in the context of oper-
Management
ations management?
D. Quality Circle
parts used to produce a good or supply a 1912. Inventory carrying cost includes;
service
A. cost of insurance and taxes
B. Any change to inputs that adds value
B. Cost of shortages
and converts them into outputs
C. Set up cost
C. What is made or supplied by the oper-
ations process D. Cost of ordering
D. A measure of how efficiently goods 1913. Evaluating location alternatives by com-
and services are produced paring their composite(weighted-average)
scores involves
1908. Evaluating location alternatives by com-
paring their composite(weighted-average) A. factor-rating analysis.
scores involves B. cost-volume analysis.
A. factor-rating analysis. C. transportation model analysis.
B. cost-volume analysis. D. linear regression analysis.
C. transportation model analysis. E. crossover analysis.
D. linear regression analysis.
1914. It is the rate at which the inventory of
1909. It is also called as the central nervous a product is sold and replaced with new
system of an enterprise. inventory.
A. MRP A. Cost of Being Out of Stock

B. Cost of Carrying Inventory B. Quality and Capacity Management

C. Stock Turnover Rate C. Process and Capacity Design
D. Analyze Sales D. Location Strategy
1915. What management function has the task 1920. Which business whose main asset is in-
of conducting a yearly performance ap- tellectual capital?
praisal for an employee?
A. Chocolate factory
A. organizing
NARAYAN CHANGDER
B. University
B. staffing
C. Restaurant
C. controlling
D. Furniture shop
D. implementing
1921. What is facility layout?
1916. Which car manufacturer pioneered JIT
and Kaizen? A. Location or arrangement of buildings
A. Toyota B. Location or arrangement of worksta-
tions
B. Ford
C. Location or arrangement of everything
C. VW
within and around buildings
D. Nissan
D. Location or arrangement of factory
1917. Product strategy is an organizational
approach to transforming resources into 1922. It enables users to view details, and de-
goods and services and finding the ways tails of details, of information.
on how to produce so as not to waste our A. What-if Analysis
planet’s resources. B. Goal-seeking Analysis
A. True
C. Consolidation
B. False
D. Drill Down
1918. “Intangible knowledge and skills which
1923. is the premier issue in new-
a business has access or rights over” is the
servicedevelopment.
definition of
A. Brainstorming
A. Productivity
B. Intellectual capital B. Service design
C. transformation process C. Understanding the customer
D. effectiveness D. Delivering Quality Service
1919. Determining the processes that will be 1924. A competitive priority focusing on speed
used in operational activities and the ca- and on-time delivery.
pacity that will be used is important in A. Partial productivity
operational management because it is re-
B. Infrastructure
lated to various things. The description
above is a definition of? C. Multifactor productivity
A. Design of Goods and Services D. Time

1925. “The car starts, drives and does not B. Choose the right machines and equip-
break down” This is the examples of ment.
which quality dimensions?

C. Design plan layout for better effi-
A. Performance ciency.
B. Reliability D. Maintain machines and equipment
C. Durability properly.
D. Features E. Purchase based on needs and on time.
1926. The environmental pillar of sustainabil- 1930. One popular method of inventory man-
ity is focused on agement is the ABC system, which classi-
fies inventory based on:
A. The environment
A. Cost per unit
B. The amount of natural environment
there is B. Sales volume
C. The ability to for people to interact C. Importance of the item
with the environment to avoid damage and D. Item size
depletion of resources into the future
1931. The dollar amount of all sales with any
D. How many trees there are in the envi-
returns subtracted is called
ronment
A. gross profit
1927. How can productivity best be im-
B. net income
proved?
C. gross sales
A. Better marketing
D. net sales
B. New equipment
C. Recruitment 1932. Process Layouts
D. none of above A. Able to produce a large number of dif-
ferent products
1928. The minimum stock level is:
B. Able to produce a small number of
products efficiently
C. Resources used are specialized
D. Facilities are more capital intensive
1933. waste from production

A. 600
A. transportation
B. 300
B. stocks
C. 200
C. motion
D. 100
D. all are correct
agement practice explains the importance 1934. The theory of constraints was first pro-
of keeping machines and equipment in posed in 1986 by
good running condition? A. Goldratt
A. Adopt standard production models. B. Goldah

C. Goldrot B. To decide how a task will be completed

D. Goldrit C. To improve the machines, equipment,
and devices used in operations
1935. is a set of quality standards devel-
D. To measure performance against es-
oped for global manufacturers bythe In-
tablished standards
ternational Organization for Standardiza-
tion (ISO) to control trade into the then- 1940. What are the disadvantages of disec-
emerging European Economic Community. onomies of scale?
NARAYAN CHANGDER
A. MRP 1970s A. Improved efficiency, reduced costs,
B. TQM 1980s and easier management.
C. ISO 9000 B. Decreased productivity, increased
costs, and limited flexibility.
D. none of above
C. Higher profits, increased productivity,
1936. 1) Consumption utility is composed of and better resource allocation.
price and convenience. D. Higher costs, decreased efficiency,
A. True and difficulty in managing a larger orga-
nization.
B. False
1941. It refers to the process of ordering, stor-
1937. What is another tip for successful
ing, using, and selling a company’s inven-
project management?
tory.
A. Prioritize efficient scheduling
A. Invention Management
B. Avoid engaging stakeholders in the
B. Inventory Planning
project
C. Inventory Management
C. Overload project team members with
tasks D. Inventory System
D. Ignore project deadlines and mile- 1942. A soup manufacturer finds it difficult to
stones cope with the increase in demand for soup
in winter. Which performance objective
1938. of components used to manufac- could assist this business to meet the de-
ture similarproducts is essential to reduce mand?
thenumber of components to be held in
stock to cater to allpossible combinations A. Cost
of a customer’scustomization spree. B. Customisation
A. Commonality C. Dependability
B. Recycling D. Flexibility
C. Component 1943. Current trends in operations manage-
D. MassCustomization ment include all of the following except
A. Just-in-time performance
1939. What is the purpose of electronic data
interchange (EDI)? B. mass customization
A. To monitor individual stock items and C. empowered employees

keep accurate records of inventory levels D. mass production

1944. An advantage of using inspection in 1949. An organizational is a plan that

quality control is that shows how the various jobs in a company
relate to one another.

A. Inspectors know what to look for
A. policy
B. Costs are increased because there is
more waste B. structure
C. It can prevent defective product from C. procedure
reaching customers D. rule
D. It assures the reliability of the produc-
1950. What is the date of our SAC?
tion process
A. This Wednesday
1945. There are 3 things an operation must B. Next Wednesday
consider whenlooking at production of
goods and services: C. During our scheduled exam
D. Wait, we’ve got a SAC coming up?!?!
A. capacity
B. demand 1951. What is the main focus of failure preven-
tion and recovery?
C. forecasting
A. Learning from failure and making
D. capital changes
1946. Which is an example of Inputs? B. Preventing all types of failure
A. Satisfied Customers C. Measuring the impact of failure
B. Health Care D. Recovering from critical failures
C. Hungry Customers, food, wait staff 1952. He was the first to incorporate the hu-
D. None of the Above man aspect of quality management which
is referred to as Total Quality Manage-
1947. The work of operations, from planning ment.
to production to distribution, touches the A. Philip B. Crosby
work of most other departments.
B. Joseph M. Juran
A. TRUE
C. Peter Jones
B. FALSE D. William Edwards Deming
1948. What is the factor-rating method used 1953. What is the priority sequencing rule
for? known as FCFS?
A. To evaluate location alternatives A. First come, first-serve
based on various factors
B. First come, first-serve basis
B. To calculate labor productivity in differ-
C. First come, first-served
ent locations
D. First come, first-served basis
C. To analyze the cost-volume relation-
ship of different locations 1954. Consistently meeting customer needs
D. To determine the center of gravity for andexpectations.
distribution centers A. Quality

B. Total Quality B. Galley

C. Quantity C. Lavatory
D. TQM D. Temperature Control System
1955. are goods that can be touched, think 1960. Of the following, which is key to man-
products. The production process and con- aging?
sumption are not linked, thus there is little A. Knowledge
consumer involvement in production.
NARAYAN CHANGDER
B. Fear
A. Tangibles
C. Communication
B. Intangibles
D. Kindness
1956. Is a set of functions or activities within
an organization that works together for 1961. Inputs, processes, outputs are all a part
the aim of the organization. of:
A. Goods and services
A. Variation
B. Transformation system
B. Techniques
C. Transformation process
C. System
D. Operations
D. Methods
1962. What is the purpose of quality metrics?
1957. A means of determining throughput ca-
pacity of workstations or an entire produc- A. To assess the quality of products or
tion system services
A. Capacity Planning B. To monitor and improve quality over
time
B. Capacity Analysis
C. To ensure consistency and reliability in
C. Production Planning
the quality of products or services
D. Production Analysis
D. To eliminate defects and reduce cost
1958. What type of production card is this:
1963. What is the main purpose of reliability
in the context of failure prevention?
A. To relate parts of the system to the sys-
tem
B. To measure the probability of a system
performing as expected over time
A. There
C. To determine the degree to which the
B. signboard operation is ready to work
C. Just in time D. To calculate the availability of opera-
D. none of above tions
1959. One of the cabin facilities that is located 1964. What is:inventory held to deal with un-
at different positions in the aircraft cabin certainty in customer demand and delever-
to satisfy passengers’ bathroom needs. ies of supplies
A. Crew Bunk A. Productivity

B. Productivity Formula 1969. One of the benefits of increasing produc-

tivity is:
C. Labor Productivity Formula

A. more workers will be employed
D. Buffer Inventory Level
B. total production will increase with the
1965. What does the term kaizen mean when same number of workers
applied to quality? C. average costs will stay the same
A. Quality is everyone’s job D. fewer raw materials will be needed to
B. Maintain a steady flow produce the same level of output
C. The place where activity takes place 1970. It is derived from the manufacturing sec-
D. Continuous improvement tor
E. Mutual dependence A. Quality Management

B. Quality Control
1966. What is the definition of robotics?
C. Total Quality Management (TQM)
A. Making use of what resources are
D. Quality
available to complete a project imminently
before it is due 1971. Which kind of labour force is required in
B. The development of robots, which are case of Jobbing Production?
machines that can be programmed to per- A. Highly Skilled
form a variety of repetitive tasks
B. Semi skilled
C. Computer technology that allows ar-
C. Unskilled
chitects, engineers and designers to draw
and adjust designs using a computer D. Any of the above
D. Computer technology that directly 1972. A sandwich shop bakes a variety of
links the design process to the manufac- breads throughout the day. Customers se-
turing process using computers lect th choice of bread and filling(s) and
sandwiches are then made to order. Which
1967. It involves taking a physical count of pair of performance objectives would have
your merchandise at regular intervals influenced the development of t approach?
A. Perpetual Invetory Method A. Cost and efficiency
B. Periodic Invetory Method B. Efficiency and quality
C. Cost of Being Out of Stock C. Cost and customisation
D. Cost of Carrying Inventory D. Quality and customisation
1968. Which of the following is not a type of 1973. Businesses may need to compete with
qualitative forecasting? global issues in operations management in-
cluding global sourcing of inputs, overseas
A. executive opinions
manufacture, outsourcing and supply chain
B. the Delphi method management. True or False?
C. moving average A. True
D. consumer surveys B. False

1974. What is an example of Mass produc- 1979. It costs Keyworth Ltd $0.50 in variable
tion? costs to make one item. Their output is
A. Cars 90, 000. Keyworth Ltd has fixed costs
such as rent and insurance which total $35,
B. Olympic Medals 000 Calculate Keyworth Ltd.’s total fixed
C. Bespoke furniture costs:
D. Prosthetic Leg A. $77, 000
B. $35, 000
NARAYAN CHANGDER
1975. Most process innovation is ultimately
designed to: C. $80, 000
A. Reduce unit costs D. $45, 000
B. increase production costs 1980. Product substitution refers
C. Increase selling prices A. Offer different product with same func-
D. Reduce carbon emissions tions
B. Offer cheaper product with same func-
1976. What is the main characteristic of Kan- tion
ban project management?
C. Both a & b
A. . Enables teams to react quickly to
project feedback D. None of the above
B. Focuses on continuous improvement 1981. What is:costs which vary directly with
through visualizing and managing the flow the number of items sold or produced
of work
A. Fixed Costs
C. Emphasizes perfect planning by break-
ing down and scheduling the entire B. Variable Costs
project C. Total Costs
D. Divides larger projects into shorter D. Average Cost per Unit
sprints and adapts to demands as the
project evolves 1982. Conducted every 10 years; helps to de-
termine who will be your customer
1977. Job production is where each item is
A. Census
made to specific instructions and each item
is unique. B. Leadership
A. True C. Management
B. False D. Staff
1978. Product Layouts:Select Two 1983. Is the degree to which a business has
achieved its stated objectives
A. Lower space requirements
A. Efficiency
B. Able to produce a small number of
products efficiently B. Effectiveness
C. High material handling costs C. Proactive
D. Higher space requirements D. Reactive

1984. Below are the contributions of opera- D. minimize inventory investment.

tions to added value, , except
1990. (a) The amount of available inventory

A. building a brand sold for a given period of time, typically
B. quality expressed as a percentage rate.
C. flexibility and innovation A. a Occupancy
D. efficiency of production B. Rate Occupancy
1985. The following are the levels of the prod- C. Vacancy
uct life cycle, except D. none of above
A. Introduction
1991. is a series of steps that includes
B. Growth the conceptualization, design, develop-
C. Promotion ment and marketing of newly created or
D. Decline newly re branded goods or services
A. Product innovation
1986. Capacity issues in services are than
in manufacturing B. Product Research
A. More complex C. Research and development
B. Less complex D. Product development
C. Simple 1992. The very purpose of is to list down
D. None of the above the important checkpoints or events in a
tabular/metrics format and keep on up-
1987. What is the main concern of capacity dating or marking the status on their oc-
planning in operation management? currence which helps in understanding the
A. Minimizing customer demand progress, defect patterns and even causes
for defects.
B. Maximizing costs
A. tally sheet
C. Minimizing costs
D. Maximizing customer demand B. checklist
C. histogram
1988. Automobile Manufacturing is having the
D. fish bone diagram
A. Process Layout
B. Fixed position Layout 1993. What is goods differentiation in opera-
tions management?
C. Product Layout
A. Varying the product features
D. Group Technology Layout
B. Lowering the quality of the product
1989. By purchasing just the quantity of sup-
C. Increasing the price of the product
plies that is needed, purchasing can:
D. Ignoring customer preferences
A. plan the company’s cash flow.
B. provide an uninterrupted flow of sup- 1994. A business reduces product defects by
plies. using inspections in the production process.
C. buy supplies at the lowest possible This is an example of quality
price. A. control

B. improvement 2000. Operations system is a system where

C. innovation the main function is to create goods and
services. A basic operations system
D. production
1995. One of the importance in Operations
Management is it shows us how goods and
services are produced.
A. Yes
NARAYAN CHANGDER
B. No
A. Input, Transformation, Output and
1996. Something that produces good or helpful Feedback
results or effects or that promotes well-
B. Input, Output, Transformation and
being
Feedback
A. Benefits
C. Input, Output, Feedback and Transfor-
B. Favor mation
C. Ameliorate D. Feedback, Input, Output and Transfor-
D. Cost Implication mation
1997. What can be defined as paying exter- 2001. Maturity Phase:High volume, innova-
nal companies to carry out what may tra- tive production may be needed
ditionally have been seen as internal busi- A. True
ness functions? B. False
A. Insourcing
2002. In factor rating method, first we must
B. Outsourcing/subcontracting identify the Most Important Factors in
C. Offshoring evaluating alternative sites for the new fa-
D. Inshoring cility.
A. true
1998. TQM refers to
B. false
A. Total quantity management
2003. QFD means
B. Total quality management
A. Quality Function Deployment
C. Total quality marketing
B. Quality Function Development
D. Total quantity marketing
C. Quality Functionality Development
1999. A management tool that makes it pos-
D. Quality Functionality Deployment
sible to analyze how a product behaves
from its development to its withdrawal 2004. Capacity decisions should be made on
from the market, also considering its the basis of all of the following except
launch, growth, and sales maturity. A. Building sustainable competitive ad-
A. Total Quality Management vantage
B. Cost implications B. Business expansion
C. Product Life Cycle C. Good financial returns
D. Forecasting Process D. Integration into corporate strategy

2005. To calculate your net profit on sales, you C. Outputs are more intangible.
need to know your net income after taxes D. Quality is more difficult to measure.
and your

A. cash flow 2010. This outlines the qualification require-
ments for each position competencies, per-
B. net sales sonal qualities and other mandatory re-
C. inventroy quirements i.e., work experience, educa-
D. stock tion, age, etc.
A. job specifications
2006. In ship manufacturing, the type of lay-
out preferred is B. job description
A. Product layout C. organizational chart
B. Process layout D. job standards
C. Fixed position layout 2011. Which kind of defect can be called as mi-
D. Combination layout nor defect?
A. Which does not reduce the usability of
2007. Which of these vehicles is NOT on the the product for its intended use
efficient frontier?
B. The cost of repairing the defect is less
A. V1
C. Both (A) and (B)
B. Class
C. Vz
2012. What is the goal of process redesign?
D. Inc
A. To bring about dramatic improvements
2008. One of the systems of Flight Attendant in performance
Panel (FAP) that allows flight attendants
B. To maximize customer value
to operate the entertainment system for
passengers-a centralized computer stores C. To reduce production costs
all aircraft programs that offer audio and D. To increase production flexibility
video on demand (AVOD) systems.
A. In-flight Entertainment Control 2013. Identify one reason why workers may
not like TQM.
B. In-flight Entertainment Systematic
Control A. It may require less training.
C. Temperature Control System B. It may not be part of their appraisal

process.
D. In-flight temperature Control System
C. Increased purpose and responsibility.
2009. Which of the following statements is D. Increased sense of belonging.
more of a general characteristic of a man-
ufacturing organization, as compared to a 2014. What is the role of benchmarking in the
service organization? operational improvement cycle?
A. Short-term demand tends to be highly A. Analyzing customer feedback
variable. B. Gathering information on how the pro-
B. Operations are more capital intensive. cess is implemented

C. Calculating employee salaries C. process selection

D. Comparing performance with industry D. production process
standards
2020. Father of scientific management
2015. What does quality mean according to
ISO? A. Frederic Taylor
A. Conformity to the requirements estab- B. Frederick Taylore
lished by ISO only C. Frederrick Taylor
NARAYAN CHANGDER
B. Conformity to the requirements estab- D. Frederick Taylor
lished by customers only
C. Adaptation and conformity to the re- 2021. Activities or factors that are key to
quirements established by ISO and cus- achieving competitive advantage
tomers A. Key Success Factors
D. Adaptation to the requirements estab- B. Core competencies
lished by ISO only
C. SWOT Analysis
2016. Waste within a manufacturing system
D. Five Forces Analysis
A. Mura
B. Later 2022. 1) Which of the following is NOT a chal-
lenge of matching supply with demand?A)
C. Time Delivering better products at low pricesB)
D. Mure Attempting to predict demandC) Providing
customers with what they want at a low
2017. This is a detailed outline of routine tasks costD) Reducing demand to match supply
and duties assigned to each job position.
A. A
A. Job description
B. Job specifications B. B
C. Job evaluation C. C
D. Organizational chart D. D
2018. Predicting future sales, production and 2023. Below are the reason why you study
materials requirements using previous OM EXCEPT
data is known as: A. OM is one of three major functions
A. Just in Time (marketing, finance, and operations) of
B. Forecasting any organization
C. Master Production Schedule B. we want to understand what opera-
tions managers do
D. Materials Requirement Planning
C. OM include performing market re-
2019. A is the way a business will estab- search, producing a marketing plan, as
lish how it will produce its products for its well as strategically overseeing advertis-
customers. ing and promotion
A. marketing process D. we want (and need) to know how
B. manufacturing process goods and services are produced

2024. The operations manager does not have 2030. A type of muda where there is a produc-
direct experience of the economies of scale tion ahead of demand.
or dis-economies of scale that may take

A. Supply
place on the factory floor. True or False
B. Over production
A. True
C. Over Processing
B. False
D. Inventory
2025. Part of the tail and hinged part of the 2031. Which phase determines if we met our
vertical stabilizer, used to deflect the tail goal?
to the left and right or change yaw.
A. Controlling
A. Horizontal Stabilizer
B. Planning
B. Rudder
C. Measuring
C. Turbine Engine
D. Organizing
D. Elevator
2032. The study of these findings by many so-
2026. Creating a product differentiation is not ciologists and psychologists led to the ,
valuable in creating a competitive advan- an entirely new philosophy based on the
tage recognition that factors other than money
can contribute to worker productivity.
A. True
A. human relations movement
B. False
B. business process reengineering
2027. Which of the following is a principle of C. mass customization
TQM?
D. none of above
A. Internal customer focus only
2033. Operations management is part of a pro-
B. External customer focus only duction system that can be described in
C. Product-centered the following manner:Organization:inputs
→ processes → outputs.Which one of the
D. Process-centered following correctly describes a production
system?
2028. Services are typically:
A. Airline:pilots→ planes→ transporta-
A. Tangible tion
B. Intangible B. Bank:tellers→ computer equipment→
deposits
2029. When would a company incorporate a
capacity cushion? C. Furniture manufacturer:wood→
sanding→ chair
A. when demand is uncertain
D. Telephone company:satellite→
B. when the company has very standard cable→ communication
products
2034. It is an OM activity that uses various
C. when the company sales are declining
types of automation to produce, package,
D. when demand is certain and ship physical goods

A. Inventory 2039. Which performance objective does IKEA

focus on most?
B. Forecasting
A. Flexibility
C. Logistics
B. Speed
D. Technology
C. Quality
2035. means redesigning a company’s pro-
D. Cost
cesses to increase efficiency, improve qual-
NARAYAN CHANGDER
ity, and reduce costs. 2040. Which activity in any organization de-
A. Business process reengineering cides all other activities in the production
process?
B. The computer age
A. Organizing
C. Global marketplace
B. Directing
D. none of above
C. Staffing
2036. Control should involve amount of in- D. Planning
formation.
A. Minimum 2041. The output of the S&OP process is
B. Sufficient A. Long-term plan

B. Detailed schedule
C. Maximum
C. Aggregate plan
D. none of above
D. Material requirements plan
2037. Using the principles of ABC inventory
E. Master production schedule
analysis to organize a store’s inventory,
which of the following types of items 2042. Which term refers to the amount of
would be placed in category B? products or services that a facility can pro-
A. The items which bring in the highest duce within a given time?
overall revenue A. Inventory
B. Items which are seasonally strong sell- B. Efficiency
ers, but not consistently in high demand
C. Throughput
C. Items purchased from suppliers
whose names start with the letter B D. Capacity
D. Low-priced items that generate low 2043. Production of a group of identical prod-
volumes of sales. ucts. You can then change the raw mate-
rials to then make another group of iden-
2038. represents operational processes tical products. Useful for businesses such
that are highly individual and unique. as bakers and fast food restaurants.
A. Continuous processes A. Job production
B. Mass processes B. Flow production
C. Batch processes C. Batch production
D. Project processes D. Lean production

2044. What is the main goal of quality assur- 2048. What is:Quantity of output / Quantity
ance? of input
A. Productivity

A. To monitor different aspects of produc-
tion B. Productivity Formula
B. To maintain high standards in manufac- C. Labor Productivity Formula
turing D. Buffer Inventory Level
C. To assess product quality and make im- 2049. The important role of human resources
provements in operations management is:
D. To provide confidence that quality re- A. Product development
quirements will be fulfilled
B. Financial management
2045. What is the difference between a qual- C. Equipment maintenance
ity policy and a quality manual? D. Employee training and development
A. Quality policy is for customers, quality 2050. Service characteristics implying that
manual is for employees products and services cannot be stored. (2
B. Quality policy is for product quality, pts)
quality manual is for service quality A. Aggregability
C. Quality policy is for senior manage- B. Intangibility
ment, quality manual is for junior manage- C. Perishability
ment
D. Heterogeneity
D. Quality policy is high level documenta-
tion, quality manual is detailed documen- 2051. Which is the least connected to economic
tation sustainability
A. Rise in income levels
2046. It is responsible for the provision of
B. GDP growth
the correct product quality to the con-
sumer, consistent with the minimum resor- C. Public transportation
ces used. D. poverty gap
A. Process Planning 2052. This involves the determination of fac-
B. Work Measurement tors to be used in measuring the value of
each job
C. Quality Control
A. job analysis
D. Product Planning B. wage adjustment
2047. Create flexible changeover approaches C. development of factors
when setups need to adjust to meet cus- D. rating and classification of positions
tomer demand.
2053. involves only the finished product.
A. better quality
A. Quality Control
B. order B. Quality Control in Production
C. reduced set up time C. Reliability
D. load uniformity D. Quality Checking

2054. Drill, paint, grind is the examples of job 2061. “The outcomes and effects in achieving
suitable for process oriented layout. the purposes given in the item” is the def-
A. Yes inition of
B. No A. Deployment
B. Result
2055. JIT means
C. Approach
A. Just in time
D. Evaluation
B. Just in case
NARAYAN CHANGDER
C. Joined instruction time 2062. The stock rate is the rate at which
the inventory of a product is sold and re-
D. Join in case
placed with new inventory.
2056. is output shown as a percentage of A. turnover
thefacilities or designed capacity.
B. option
A. efficiency
C. purchase
B. utilization
D. profit
C. productivity
D. capacity 2063. This is the difference between the cost
of inputs and the value or price of outputs.
2057. Offering discounts on bills paid right A. Waste
away is a good way to improve your busi-
ness’s cash receipts. B. Excess
A. true C. Shortage
B. false D. Value-added
2058. it is a series of steps that your employee 2064. Which method of production is the most
must complete to satisfy an acceptable per- time consuming?
formance standard. A. Job
A. Issuing Verbal Warning B. Batch
B. Issuing a Written Reprimand C. Flow
C. Implementing Performance Improve- D. none of above
ment Plans
2065. Operations is:
A. Activities involved in actual production
of goods and services
2059. Every work requires operations. B. Activities in the organising of people
A. True
2066. Operations managers are responsible
B. False for managing activities that are part of the
2060. The Strategy tells the organization how production of goods and services. Their di-
to get there rect responsibilities include managing both
the operations process, embracing design,
A. True planning, control, performance improve-
B. False ment, and operations strategy.

A. False C. Proximity to markets, proximity to sup-

B. True pliers, and proximity to competitors

D. All of the above
2067. Operations management is responsible
for orchestrating all the resources needed 2072. It is the primary quality control imple-
to produce the final product. This includes mentation activity on a day-to-day basis.
the following EXCEPT: A. Production
A. DESIGNING WORK METHODS B. Quality Service
B. DESIGNING THE PRODUCT C. Inspection
C. GENERATING SALES D. Testing
D. MANAGING INVENTORY 2073. Production Management starts with
2068. Customers dictate the quantity of goods
and/or services that are being produced
for sale
A. Rate
B. One Piece Flow
C. Pull A. Aggregate planning
D. Zero Defects B. Average planning
2069. Qualitative Forecasting Techniques: C. Strategy formulation
A. Sales Force Composite D. None of the above
B. Consumer Market Survey 2074. What indicates how profitable a com-

pany is relative to the total amount of as-
C. Naive Approach
sets invested in the company?
D. Trend Projection
A. return on investment
E. Delphi Method
B. return on assets
2070. What is the main focus of Resource Man- C. return of sales
agement? D. return on inventory
A. Increasing waste for more profits
2075. An assembly line is to be designed for a
B. Maximizing waste product whose completionrequires 21 min-
C. Minimizing profits utes of work. The factory works 400
minutes per day. Can a production line
D. Eliminating waste for more profits
with five workstations make 100 units
2071. What are the factors that affect location per day?
decisions? A. Yes, with exactly 100 minutes to spare.
A. Labor productivity, exchange rates, B. No, but four workstations would be
and political risks sufficient.
B. Market economics, communication, C. No, it will fall short even with a per-
and labor costs fectly balanced line.

D. Yes, but the line’s efficiency is very 2080. In 1883, Frederick Winslow Taylor used
low. the method to time tasks for complex
E. Cannot be determined from the infor- jobs.
mation given. A. Stopwatch method
B. JIT
2076. Arethe forms of discipline you can
use whenverbal warnings, written rep- C. Technology
rimands andperformance improvement D. none of above
NARAYAN CHANGDER
plans failed.
2081. The first step in choosing a location for
A. Issuing Verbal Warning a service facility involves answering which
B. Issuing a Written Reprimand of the following questions?:
C. Implementing Performance Improve- A. Will there be a market for the service?
ment Plans B. How many facilities will be con-
D. Issuing a Written Suspension structed?
C. Will there be any limitations due to ac-
cess, zoning restrictions or labor availabil-
2077. The CEO of Amazon believes that it is ity?
important to empower people in order to D. All of the above questions must be
avoid bureaucracy in the organization. asked.
A. Commitment 2082. Refers to a body of knowledge that
B. Leadership deals with anything limiting an organiza-
tion’s ability to achieve its goal.
C. Facilitation
A. Bottleneck
D. none of above
B. Delay
2078. It occurs ifthat employee continues to C. Capacity Analysis
exhibit behavior that is harmful to your D. Theory of Constraints
company and to your other workers.
A. Issuing Verbal Warning 2083. Total amount of funds channeled to
Pharmally by PS-DBM for purchase of
B. Issuing a Written Reprimand medical supplies and equipment as of Dec.
C. Implementing Performance Improve- 31, 2020 is more ore less
ment Plans A. 12 B
D. Issuing a Written Suspension B. 8 B
E. Terminating an Employee C. 7 B
D. 42 B
2079. Activities included in product develop-
ment, except 2084. Choose the correct recommended levels
A. Pricing of illumination
A. Exacting task (electronic and watch as-
B. Quality determination
sembly, dentistry)500 lux and below
C. Determination of packaging design B. Small details (engraving, detail
D. Determining product design drafting)300-400 lux

C. Normal Visual (Office, classroom, 2090. What is a key component of quality

machining)70-100 lux management that involves identifying and
eliminating the causes of quality prob-

D. Large objects (warehouse, hallways)100-
200 lux lems?
A. Quality improvement
2085. Part of the wings and this is the outer
hinged part of the wing. It is used to roll B. Quality assurance
the wings from side to side or change roll. C. Quality control
A. Winglets D. Quality planning
B. Spoiler
2091. The MRP system is more helpful for;
C. Slat
A. Dependent demand scenario
D. Aileron
B. independent demand scenario
2086. Group Technology:Parts grouped into
C. realistic demand scenario
families with similar characteristics
A. True D. stochastic demand scenario
B. False 2092. Operations is also responsible for

assessing customer wants and needs,
2087. Jessie is designing a new style of
and for communicating those to opera-
bracelet to sell at school to raise money
tions(short term) and to design people
for FBLA. She has sold so many bracelets
(long term).
that she has assigned other members of
FBLA to assist her in making the bracelets. A. TRUE
Which production activity step is this? B. FALSE
A. planning
2093. TRUE/FALSE:Production training is one
B. purchasing type of plan.
C. production
A. TRUE
D. dispatching
B. FALSE
2088. Which one of the following is not a fixed
cost? 2094. Which is NOT true regarding differences
between goods and services?
A. Insurance
A. Tangible goods are generally produced
B. Rent and consumed simultaneously; services
C. Piece rate wages are not.
D. Office manager’s salary B. Most goods are common to many cus-
tomers; services are often unique to the
2089. Functions that an organization perform
final customer.
A. Planning
C. Services tend to have a more inconsis-
B. Operations tent product definition than goods.
C. Accounting D. Services tend to have higher customer
D. Leading interaction than goods.
E. Marketing E. None, i.e., all of the above are true.

2095. How long does copyright for an author C. Workers

or creator?
D. none of above
A. 1 year
B. 25 years 2101. Inventory that is finished and is ready
to be sold to the consumer
C. 75 years
D. a lifetime and/or 70 years A. Finite goods
B. Finale goods
NARAYAN CHANGDER
2096. (a) It refers to the degree of excellence
of the service. C. Finalised goods
A. a Service Quality D. Finished goods
B. Service Management
2102. (a) A strategy that involves accepting
2097. The importance of the human element in more bookings than the business has phys-
job design is the focus of this era. ical capacity to serve.
A. Industrial Revolution A. a Overbooking
B. Scientific Management Era B. Misbooking
C. Human Relations Movement
C. Booking
D. Decision Models Era
D. none of above
2098. What would be an example of a
stock/inventory holding cost? 2103. The ratio of VALUE is “WHAT THE CUS-
TOMERS EARN” divided by “THE COSTS
A. Production worker wages
THE COMPANY HAS TO PAY”
B. Warehouse rental
A. TRUE
C. Sales commission
B. FALSE
D. advertising for finished goods
2099. What are the three key elements of the 2104. What is the benefit of having quality
production process? production?
A. Goods, Services, Transformed Re- A. 1. Increased production costs
sources
B. 2. Decreased customer satisfaction
B. Intangible goods, inputs, Services
C. 3. Improved brand reputation
C. Transformation process, outputs, in-
puts D. 4. Increased waste
D. Transforming resources, outputs, Ser- 2105. Idea that people are responsible and like
vices to accomplish goals
2100. Have responsibilities in both strategy A. Theory Y
and day-to-day production, in either man-
ufacturing or services B. Theory X
A. Operations managers C. Theory Q

B. Quality management D. Theory Z

2106. What is the major difference in focus be- D. known as mass production, involves
tween location decisionsin the service sec- producing large quantities of a product in
tor and in the manufacturing sector? a continuous process.

A. There is no difference in focus.
2109. The person in a business who is respon-
B. The focus in manufacturing is revenue sible for planning, organizing, staffing, im-
maximization, while the focus in service is plementing, and controlling the operations
cost minimization. of a business is the
C. The focus in service is revenue maxi- A. chairman of the board
mization, while the focus in manufacturing B. intern
is cost minimization.
C. manager
D. The focus in manufacturing is on raw
materials, while the focus in service is on D. employee
labor.
2110. Statement of principles that guide daily
2107. Chally Fries is an Australian based man- business
ufacturing company located in Geelong. A. Policies
The business specializes in the production
of frozen French fries and supplies over B. Rules
60 restaurants around Australia. Fresh C. Census
D. Staff
tories, which are then washed and cut by
2111. The formula for Single Factor Productiv-
cut into French Fries, they are packaged,
ity is
boxed and frozen, ready to be delivered
units produced
to restaurants around Australia. True or A. = input used
False. Fresh potatoes and other ingredi-
Out put
ents are inputs of Chally Fries’ operations B. = labor+Material+Energy+Capital
system, but the machinery and labour re-
sources are not. 2112. The key components in supply chain
management are:
A. True
A. Product development
B. False
B. Customer relationship management
2108. Define batch production. C. Research and development
A. a production method that aims to re- D. Inventory management
duce or eliminate the need for holding
inventories of raw materials or finished 2113. This is the third step in Recruitment and
products. Selection Process
B. is where a single product is made at a A. Background Check
time.
B. Initial Interview
C. involves producing a quantity of one
C. Second Interview
product and then moving on to produce an-
other quantity of a different product. D. Examination

2114. A business that has enough money to C. Retail Layout

pay off any debt owed is described as be- D. Fixed Position Layout
ing
A. liquid 2120. A company wishes to increase labour
productivity. All other things being equal,
B. controlling this is most likely to be achieved if the com-
C. strategic pany
D. breakeven A. employs more workers.
NARAYAN CHANGDER
2115. Finance can provide valuable insight on B. reduces the wages it pays its employ-
what competitors are doing. ees.
C. reduces current output.
A. TRUE
D. invests in more capital equipment.
B. FALSE
2121. Developing countries are attractive loca-
2116. Operations decisions related to the de-
tions to place business because
sign of the production process, such as fa-
cilities, technology, and flow of goods and A. They industrialize faster than devel-
services through the facility. oped countries
normalfont
A. Cost
B. Labor and resources are affordable
B. Structure
C. There is a high population
C. Core competencies
D. All of the above
D. Productivity
2122. Which two factors should a business
2117. limited shelf space in retail store is
consider when selecting a supplier?
A. Right Merchandise
A. History
B. Right Time
B. Loyalty
C. Right Quantity
C. Reliability
D. All the above
D. Flexibility
2118. Which one of the following is NOT a fac-
2123. is generallyrequired to all new employ-
tor of production?
ees even those who come to an organiza-
A. land tion with considerable experience.
B. table A. Medical Examination
C. capital B. Training Application Examination
D. enterprise C. Training
2119. A layout that focuses on the arrange- D. Examination

ment of machines and personnel that fo- 2124. This type of maintenance includes pre-
cuses on making single product or family ventive maintenance activities that are
of related products. carried out when the machine is still op-
A. Work Cell Layout erational.
B. Office Layout A. Working maintenance

B. Preventive maintenance D. Acquiring additional facilities

C. Productive maintenance E. Introducing new products

D. Running maintenance 2129. it is a type of department who is respon-
2125. Just-in-time inventory management is sible for financial planning, budgeting, and
when: controlling the organizations finances
A. Customers have a short period of time A. HR

to order their stock B. accounting
B. Stock is ordered just in time for when C. engineering
it is required
D. marketing
C. Stock is delivered quickly
2130. What is TRANSFORMATION PROCESS?
D. The business does not have to order
any stock A. Control mechanism to measure the ac-
tual performance.
2126. quantitative factors of deciding location
B. Basic materials needed for the pur-
A. labour costs pose of producing goods.
B. government grants C. The conversion of inputs into outputs.
C. room for expansion D. The final result obtained after the
D. environmental concerns transformation process.
2127. Why is it important to consider compe- 2131. mass production of a large number of
tition when determining where to conduct identical items in a continous, usually au-
business? tomated, process
A. So you know who and how many com- A. job production
petitors are in the area B. batch production
B. So you know how your competition is C. flow production
doing business and what you can improve
D. cell production
or do differently
C. So you know how likely consumers are 2132. What is:Output over a given period of
to choose you time / number of employees
D. All of the above A. Productivity
2128. Capacity can be increased using a num- B. Productivity Formula

ber of methodswhich involve adjusting the C. Labor Productivity Formula
resources and inputs intoan organization D. Buffer Inventory Level
such as:(choose 4)
A. Introducing new approaches and ma- 2133. VCA is done differently when a firm
terials competes on differentiation rather than
costs. This is because the source of cost
B. Increasing the number of service advantage comes from creating superior
providers ormachines products, adding more features and sat-
C. Increasing the number of operational isfying varying customer needs, which re-
hours sults in higher cost structure.

A. true 2140. Which among these is under “Procure-

B. false ment” in the supply chain management?
A. Inbound Logistics
2134. To develop a decision tree calculation,
we need to calculate expected value B. Outbound Logistics
A. True C. Manufacturing
B. False D. none of above
NARAYAN CHANGDER
2135. It is a branch of management which 2141. is the last opportunity to impress
deals with the administration of both pro- yourhiring manager before they officially
duction of goods and provision of services make their decision.
to the customers. A. Final Interview
A. Production B. Initial Interview
B. Operation C. Second Interview
2136. Reshoring is sometimes referred to as: D. Examination
A. Outsourcing 2142. The factors affecting missions EXCEPT
B. Insourcing A. Environment
2137. One of the configurations of Jet Aircraft B. Philosophy and Values
that is usually carries fewer than 200 pas- C. Customers
sengers and is called a regional jet or com-
muter jet. D. Market
A. Jet Planes 2143. What is a Sole Proprietorship?

B. Wide-Body Jet A. Business owned by president
C. Narrow-Body Jet B. Business owned by several companies
D. Jet Props Aircraft C. Business owned by one person
2138. In a traditional management set up, D. Business owned by a company

what is basically aimed to be maximized.
2144. Disadvantage of mass customization
A. Consumer needs
B. Profits
C. Quality approach
D. none of above
2139. Measuring the ability to allocate re-

sources in a cost-effective manner
A. high level of “work-in-progress” for
A. Efficiency each stage of production, the work may
B. Effectiveness be boring and demotivating for workers, if
batches are small unit costs may be high,
C. Value cleaning may need to be completed be-
D. none of above tween batches

B. enables economy of scale if batches combine the benefits of global scale effi-
are large enough, batches can be ciencies with local responsiveness
matched to demand, batch design can be

A. True
changed
B. False
C. limited opportunity to make different
versions of product; expensive and disrup- 2150. This naturally comes after product de-
tive if the production process has to be sign
stopped
A. Process planning
D. high setup costs and equipment costs
B. Product planning
2145. A house of quality is:
C. Managing
A. a matrix relating customer “wants” to
D. Operations
the firm’s “hows.”
B. a set of detailed instructions about 2151. The planning horizon is how far a plan
how to perform a task. extends into the future and is dictated by
C. a schematic showing how a product is tactical and strategic degrees of certainty.
put together. A. True
D. none of above B. False
2146. What is:the output measured against C. Maybe
the inputs used to create it D. none of above
A. Productivity
2152. Which of the following is NOT one of the
B. Productivity Formula five economies of scale?
C. Labor Productivity Formula A. Purchasing economies
D. Buffer Inventory Level
B. Technical economies
2147. A planning tool used to fulfill customer C. Marketing economies
expectations
D. Capital Economies
A. QFD
B. House of Quality 2153. A process-oriented layout:
C. Activity Map A. groups workers to provide for move-

D. Customer Satisfaction
B. addresses the layout requirements of
2148. What increases productivity? large, bulky projects such as ships and
A. specialization buildings.
B. capital resources C. seeks the best machine utilization in

continuous production.
C. education/training
D. allocates shelf space based on cus-
D. all of the above tomer behavior.
2149. A transnational strategy is a type of cor- E. deals with low-volume, high-variety
porate social responsibility that seeks to production.

2154. True or False:Utility is the ability of a B. False

good or service to satisfy a human need.
2159. (a) The organizational function that is
A. True responsible for identifying and acquiring
B. False goods and materials to ensure that a busi-
ness can operate without disruption and
2155. Operation Management can be defines serve its customers.
as
A. a Procurement
A. activities related to the creation of
NARAYAN CHANGDER
B. Ordering
goods or services by converting or trans-
forming inputs into outputs C. Purchasing
B. the innovation of goods or services by D. none of above
converting or transforming inputs into out-
2160. “Activities that help improve a prod-
puts
uct’s design, production, maintainability,
C. activities related to the creation of and use”the above statement is definition
goods or services by included inputs into of
outputs
A. Lean Management
D. the creation of goods or services by
B. Maturity
converting or transforming inputs into out-
puts C. Value engineering
D. Quality function deployment
2156. What is included in the infrastructure of
an organization? 2161. One of the cabin facilities where food is
A. Buildings, transport, and communica- prepared on an aircraft.
tion systems A. Lavatory
B. Buildings, workspace, and process B. Flight Attendant Panel (FAP)
equipment C. Galley
C. Supporting services, work environ- D. Crew Bunk
ment, and process equipment
2162. These are the limitations of break-even
D. Workspace, noise, and temperature
analysis, except
2157. What is the purpose of generating in- A. assume that the total output will al-
ventory reports? ways be sold off
A. To cope with transportation delays B. assume fixed costs do not change
B. To compensate for unexpected fluctu- C. assumes selling prices are the same at
ations in supply and demand all possible levels of output.
C. To monitor inventory control perfor- D. useful in business planning. The man-
mance agers can use break-even analysis to
D. none of above make pricing decision
2158. In Quality Culture, performance im- 2163. There are no differences in the manner
provement is an erratic, reactive undertak- products and services are transformed.
ing that is typically triggered by problems. A. True.
A. True B. False.

2164. Which one of the following is not an in- C. distribution

put in the transformation process?
D. industrialisation

A. Infomation
B. Technology 2170. Which performance objective measures
how well a product meets the prescribed
C. Products design specifications?
D. Customers/Clients A. Cost
2165. TQM systems emphasise the need for B. Flexibility
close links between all members of the
C. Quality
A. workforce
D. Speed
B. business community
C. supply chain 2171. The ego of managers by not accepting
initiatives from employees and their per-
D. trade association
sonal belief that employees should only
2166. Which of the following is an advantage follow orders from the boss may also ham-
of kaizen? per empowerment.
A. Increased Profit A. True
B. Increased Motivation B. False
C. Increased Productivity
2172. An element of the Supply Chain Manage-
D. Increased Production ment whose concern is making best deci-
2167. *Operational Management means sion when it comes to the movement of
your business for a particular outcome information and materials.
through changes at the operational level. A. Processing
A. Redundancy B. Location
B. Entertaining C. Logistics
C. Playing D. none of above
D. Optimizing
2173. Goods and services selection have less
2168. It is the tangible or intangible outcome bearing in achieving competitive advan-
of the service. tage.
A. service outcome A. True
B. service result B. False
C. service output
D. none of the above 2174. refers to practice oftraining people to
obey/followrules or a code of conduct.
2169. is a process that involves using re- A. Discipline
sources to make goods and services to sat-
isfy consumer needs and wants. B. Respect
A. consumption C. Responsibility
B. production D. Conduct

2175. The has a stake in the quality of a B. Galley

product orservice, C. In-flight Entertainment Control
A. customer D. Temperature Control System
B. manager
2181. Which of these is NOT a benefit of auto-
C. customer mated production lines?
D. owner A. Less potential for human error
B. Less labour required in production
NARAYAN CHANGDER
2176. A manager is concerned about ongoing
theft and the cost of storing raw materi- C. Faster production of goods
als. Which inventory management strat- D. Slower production of goods
egy would best address the manager’s con-
cerns? 2182. ISO 9001
A. Just-in-time A. The standard for certification of a
B. Warehousing
C. Last-in-first-out quality management systems to meet cus-
D. First-in-first-out tomer requirements
B. Provides guidelines for establishing a
2177. It is important to understand how to quality management system. It focuses
manage both service and manufacturing not only on meeting customer require-
operations. ments but also on improving performance
A. True C. A set of international standards and a
B. False certification focusing on a company’s en-
vironmental responsibility
2178. INVENTORY is something that the com-
D. A set of international Standards devel-
pany does not want to sell
oped to help organizations evaluate and
A. TRUE address their social responsibility
B. FALSE
2183. Labour or capital intensive
2179. It is a purposeful activities-done
methodically-as part of a work plan-
designed to achieve pre-decided objec-
tives.
A. operator
B. operation
C. operative
A. Labour intensive
B. Capital Intensive
2180. One of the cabin facilities that is the
master panel for the chief purser (chief 2184. 1) Reducing inefficiencies will increase a
flight attendant) to control the cabin en- firm’s profitability.
vironment. A. True
A. Flight Attendant Panel (FAP) B. False

2185. Visual signals can take many forms and 2191. If you want to improve your cash flow
serve many functions, EXCEPT by increasing cash receipts, which of the
following strategies could you try?

A. Present the big picture
B. Performance A. offer discounts on bills paid right away
C. Productivity B. establish tighter credit policies
D. Housekeeping C. hold shipments to customers with
large unpaid bills
2186. Productivity is important because it can
D. all of these
help to reduced operating costs and in-
creased revenue. 2192. A technique which assumes that the de-
A. Yes mand in the next period is equal to the de-
B. No mand in the most recent period.
A. Naive Approach
2187. Which of the following is NOT a method
for quality improvement? B. Moving Averages
A. Technology-based improvement C. Time Series
B. Process improvement D. Exponential Smoothing
C. People-based improvement 2193. This is an activity under the Primary cat-
D. Product improvement egory of the Value Chain which involves
receiving, storing, and distributing the in-
2188. Which of the following statements is puts or raw materials that are used in the
more of a general characteristic of a man- production process.
ufacturing organization, as compared to a
service organization? A. Inbound logistics
A. Short-term demand tends to be highly B. Outbound logistics
variable. C. Operations
B. Operations are more capital intensive. D. Marketing and Sales
C. Outputs are more intangible.
2194. This is value chain’s primary activity
D. Quality is more difficult to measure. that deals with converting raw materials
2189. The following are things that need to be to finished product
considered before making an INVENTORY A. Inbound logistics
decision, except B. Outbound logistics
A. AMOUNT OF MONEY OWNED C. Operations
B. HOW TO PRODUCE GOODS
D. Marketing and sales
C. HOW MUCH WILL YOU BUY AT A TIME
2195. The process of identifying other organi-
D. HOW TO DELIVER
zations that are best at some facet of your
2190. Historical experience is the work stan- operations and then modeling your organi-
dard based on past experience. zation after them is known as:
A. Yes A. Continuous improvement
B. No B. Employee empowerment

C. Benchmarking B. Organizing
D. Copycatting C. Planning
E. Patent infringement D. Controlling
2196. An operations manager is not likely to 2200. Choose the option that is NOT an advan-
be involved in tage of an automation in Operations Man-
agement
A. the design of goods and services to
satisfy customers’ wants and needs A. Increased production speed
NARAYAN CHANGDER
B. the quality of goods and services to B. Reduction in human labour costs
satisfy customers’ wants and needs C. Reduction in material waste
C. the identification of customers’ wants D. Development costs can be excessive
and needs
2201. A fixed-position layout:
D. work scheduling to meet the due dates
promised to customers A. groups workers to provide for move-
E. maintenance schedules
B. deals with low-volume, high-variety
2197. Which of the following would NOT nor- production.
mally be considered a general characteris- C. addresses the layout requirements of
tic of a service? large, bulky projects such as ships and
A. Production and consumption can al- buildings.
ways be spatially separated. D. none of above
B. Low contact services can often be
made more efficient than high contact ser- 2202. How much of plastic are used every
vices. year worldwide?
C. Production and consumption are simul- A. 1 million tons

taneous. B. 10 million tons
D. Many services involve both tangible C. 100 million tons
and intangible outputs. D. none of above
2198. One of the systems of Flight Attendant 2203. Part of the wings that has an additional
Panel (FAP) where the general tempera- hinged at the rear sections near the body
ture inside the aircraft cabin is controlled. of the aircraft that deployed downward on
A. In-flight Entertainment Control takeoff and landing to increase the wings’
force (used in increasing lift and drag).
B. In-flight Entertainment Systematic
Control A. Winglets
C. Temperature Control System B. Aileron
D. In-flight temperature Control System C. Flap
D. Slat
2199. One of the Operations Manager do is to
ensure the actual performance is in accor- 2204. Below are the examples of inputs EX-
dance with planned performance. CEPT:
A. Leading A. Car

B. steel C. Implementing Performance Improve-

C. paint tools ment Plans

D. plastic glass D. Issuing a Written Suspension
2205. A straight line mathematical model to
describe the functional relationship be- 2210. JIT does not believe in;
tween the dependent variable and the in- A. Quality
dependent variable is called
B. supplier relations
A. Linear-regression analysis
C. Overproduction
B. Standart error of the estimate
D. All of the above
C. Coefficient of determination
D. Trend projection 2211. Eli Whitney, in the , provided the
foundations for in operations manage-
2206. Which business function deals with plan- ment.
ning, organising and controlling the differ- A. 1920s; statistical sampling
ent elements and stages of the production
process? B. United Kingdom; mass production
A. Marketing C. U.S. Army; logistics
B. Finance and accounts D. nineteenth century; interchangeable

parts
C. Operations management
E. 1890s; queuing theory
D. Human resource management
2212. if the total operation time required is
2207. What is NOT an objective of operations given as 5 minutes.Takt time is given as
management? 45 seconds.Find the workers required.
A. Quality of the products A. 9 workers
B. Cost structure of company’s products B. 5 workers
C. The succession plan of upper manage- C. 8 workers
ment
D. 7 workers
D. How quick products get to the market
2213. Part of the tail that prevents an up-and-
2208. Operations managers create and main- down motion of the nose, which is called
tain project schedules to keep track of pitch.
who’s doing what, where and when.
A. Vertical Stabilizer
A. True
B. Horizontal Stabilizer
B. False
2214. Below are the elements of a good fore-
2209. This is the first step inprogressive dis- cast EXCEPT:
cipline policies, and often allthat is neces-
sary to encourage anemployee/staff mem- A. Accurate
ber to correct adverseworkplace behavior. B. Written
A. Issuing Verbal Warning C. Unpredictable
B. Issuing Written Reprimand D. Meaningful

2215. The method of turning factor inputs into C. Higher space requirements
outputs by adding value in a cost-effective D. Able to produce a large number of dif-
manner ferent products
2220. Decide the number of workstation re-

quired for the following data. sum of task
time = 70 minutescycle time = 15 minutes
A. 5
NARAYAN CHANGDER
B. 4
C. 3
D. 2
A. Sustainability process 2221. is an example of a pure good.
B. Triple bottom line A. Restaurant
C. Production process B. Coal Mining
D. Capital intensive C. Dentist

D. Education
2216. It is a general approach to forecasting
which is based on experience and intuition. 2222. Which of the following would be consid-
A. Quantitative Forecast ered inputs into a hair dressing salon?
B. Qualitative Forecast A. Materials, human resources and cus-

tomers
C. Predictive Forecast
B. Location, knowledge and people
D. none of above
C. Management structure, equipment
2217. It is an OM activity that deals with and raw materials
the entire process of managing inventories D. Materials, finances and people
from raw materials to finished products.
A. Inventory 2223. This strategy involves equipment and
machinery arranged in sequence and con-
B. Forecasting trolled by a computer to perform tasks au-
C. Logistics tomatically.
D. Technology A. Automated Production Line
2218. What is the actual name of corona Virus B. Website Development
A. COOVID-19 C. Computer Aided Design
B. COVID-91 D. Computer Aided Manufacturing
C. COVID-19 2224. The first step in maintaining an inven-

D. None of the above tory of supplies for the business is to:
A. conduct research to find vendors that
2219. Product Layouts sell the supplies.
A. Lower material handling costs B. develop a list of supplies that the busi-
B. High material handling costs ness needs

C. compare prices among vendors. 2230. In Traditional Culture, the organization

D. organize a space to store the supplies. tends to look inward.

A. True
2225. refers to the upward movement of
B. False
anemployee from one job to anotherhigher
one, with increase in salary, status, and 2231. In an associative forecasting model,
responsibilities. which is a measure of forecast error?
A. Managing relations A. Standard error of the estimate
B. Promotion B. Forecast error correlation coefficient
C. Training and Development C. Mean squared error
D. Evaluation and Management D. Absolute average error percentage
2226. Economists refer to the inconvenience of E. Mean squared error

obtaining a product or receiving a service 2232. What is the purpose of quality improve-
as ment in quality management?
A. Transaction cost A. To set quality standards for a project
B. Fit B. To monitor whether project deliver-
C. Timing ables meet quality standards
D. Unavailability C. To evaluate various aspects of an ac-
quisition project
2227. The main advantage of economies of D. To identify and eliminate the causes of
scale is that a business can achieve quality problems
A. economic objectives
2233. An example of CSR in inputs:
B. industry benchmarks.
A. Sourcing locally
C. lower per unit input costs.
B. Using green energy
D. simplified supply chain management.
C. Minimising waste in production
2228. The way one leads through action D. Minimising Packaging to end con-
A. Management Style sumer
B. Line Organization 2234. Its main objective is to produce right
C. Theory X quality goods in right quantity at right
time and at least cost.
D. Theory Y
A. Production
2229. The process of converting inputs such B. Operation
as land, labour and capital into saleable
goods (outputs), for example shoes and 2235. ISO 9000
cell phones A. A set of quality standards developed
A. Efficiency for global manufacturers by the Interna-
tional Organizations for Standardization.
B. Productivity
B. The standard for certification of a
C. Production firms quality management system. It is
D. Economies of scale used to demonstrate the conformity of

quality management systems to meet cus- C. actual capacity

tomer requirements
D. none of above
C. Provides guidelines for establishing a
quality management system. It focuses 2239. What is the first stage in product de-
not only on meeting customer require- sign?
A. The screening process.
certification focusing on a company’s en- B. Preliminary design.
NARAYAN CHANGDER
vironmental responsibility C. Concept generation.
2236. can be expensive and time consum- D. none of above

ing to manage an operations system in
a socially responsible way. However, it 2240. The key elements of an operations sys-
does bring benefits. Behaving in a socially tem are:
acceptable manner can improve the reputa- A. Efficiency, Effectiveness, Productivity
tion of a business, improve efficiency and
reduce costs in the long term. B. Inputs, Processes, Outputs
A. Corporate Social Experiments C. Technology, Materials, Quality

B. Corporate social responsibility D. Resources, Labour, Time
C. Corporate Social Standards
2241. Process Design is one area of Opera-
D. none of above tions Management that deals with Supply
Network, Layout and flow, Job Design,
2237. A car manufacturer’s marketing man- Product / Service Design and Process Tech-
ager suggests to the operations manager nology.
that they increase the warranty period
from 3 to 5 years in order to increase mar- A. True
ket share. The operations manager would B. False
agree to this suggestion if
A. gearing has reduced. 2242. You should understand that strategic
and tactical decisions are the business func-
B. it provided an incentive to increase
tion responsible for planning, coordinating,
production speed.
and controlling the resources needed to
C. current quality management strate- produce a company’s goods and services.
gies could support it
A. True
D. it provided sales staff the opportunity
to increase sales commissions. B. False
2238. is the output that an opera- 2243. What is the goal of the performance ob-
tion can produce continuously, at maxi- jective ‘flexibility’?
mum rate withoutstopping for any shift A. To adjust to changes in the market
changeovers, maintenance orany other de-
lays. B. To reduce costs
A. design capacity C. To increase customer complaints
B. effective capacity D. To decrease skill levels

2244. The 4Ms does not include C. Online and Online real-time Quality
A. Men Management

B. Machine D. Quality Circle
C. Message 2249. OM is directly responsible for managing

D. Machinery the transformation of a company’s inputs
into finished products and services.
2245. What are the resources that an organi-
A. True
zation needs to provide according to the
report? B. False
A. Suppliers, natural resources, and fi- 2250. Which of the following is NOT an input?
nancial resources
A. Capital
B. Skills, experience, and process equip-
ment B. Land
C. Information, buildings, and workspace C. Services
D. People, infrastructure, and work envi- D. Enterprise
ronment
2251. Which of the following is a benefit of
2246. Which of the following is not one of the increasing efficiency/productivity?
Operations performance objectives.
A. Higher Costs per unit
A. Higher quality and lower costs
B. Lower Costs per unit
B. Shower lead time
C. Lower Wages for Workers
C. Low variability and low adaptability
D. Decreased Output relative to the in-
D. Lower variability with regard to specfi- puts required
cations
2252. One way a business can implement CSR
2247. One fundamental purpose of a cook is to
into their inputs is by
A. Preparing food and Managing food sta-
A. To use inputs that do not seriously im-
tions
pact on the environment and waste meth-
B. Cleaning the pool ods that are not illegal and come from eth-
C. Taking reservations ical suppliers.
D. Serving food to the guests B. Ensuing that their facilities and tech-
nology do not disadvantage the health and
2248. consists of a small group of production welfare of staff.
workers (or engineers, or office clerks, or
C. Ops managers need to ensure the
salespeople, or quality inspectors, or wel-
goods produced are of reliable quality and
fare counselors, and so on), who meet reg-
that they are safe for the consumers.
ularly to identify a broad array of prob-
lems related to their taskand work toward D. none of above
developing ways to solve them.
2253. Designing and implementing the OM
A. Process Control (operations Management) at TI (Texas In-
B. Selective Inspection strument) required an understanding of all

the strategic and tactical operations deci- 2259. Capacity Decisions help companies to de-
sions; otherwise, it would not be effec- termine capital requirements and whether
tive. demand will be satisfied or facilities will
A. True be idle.
A. True
B. False
B. False
2254. What is the objective of supply chain
management? 2260. Which process strategy is characterized
NARAYAN CHANGDER
by long, continuous production runs and
A. Reducing unwanted inventories high volume but low variety of products?
B. Cutting supply times A. Process focus
C. Avoiding delays B. Repetitive focus
D. All of the above C. Product focus
2255. Which of the following is NOT a cost in- D. Mass customization
volved in the operations function?
2261. Employee awareness of manage-
A. Input costs ment’sstrong commitment to service qual-
B. Labor costs ity isaffirmed through work teams.
C. Marketing costs A. Training Managers

D. Processing costs
Data
2256. Exchange of Information is a movement C. Comment Cards
in the supply chain system
D. SERVQUAL
A. Yes
2262. Which of the following is not an ethical
B. No issue in Operations Management?
2257. Which of the following is a valid conclu- A. Environment
sion? B. Financial Statements
A. A C. Strategic planning
B. B D. Hiring/firing workers
C. C 2263. In hotel industry is considered as
D. D service inventory
A. Hotel Food
2258. In winter, the number of beach life-
guards employed by a local council is re- B. Hotel Tables
duced. What has influenced the transfor- C. Hotel Stores
mation process in this situation?
D. Hotel Rooms
A. Variation in demand
2264. These are physical items that include
B. Variation in visibility
raw materials, parts, sub assembles and
C. Variety final product.
D. Volume A. Goods

B. Services expanding their operations not only do-

C. Operations mestically but also abroad. whether an

D. none of above A. Don’t agree
B. Agree
2265. The distinct advantage of this approach
C. Agree because it is part of operational
is that fixed duties and responsibilities ex-
management
ist.
D. Agree because it is part of Production
A. Brainstorming Management
B. Organization with distinct depart-
ments 2269. Six Components Operations Strategy
are
A. Facility planning
D. Service development system
B. Technology selection & process devel-
2266. most widely used form of business in opment
the world; treated as separate legal enti- C. Planning for entertainment activities
ties from its shareholders, so they have D. Allocation of resources to strategic al-
the ability to sue or be sued, are capable ternatives
of holding assets in its own name, can sign
contracts and have the ability to make by- 2270. The role of operations in an organization
laws, which govern its internal affairs covers 3 main areas, namely
A. Shareholder A. finance, marketing, tbsp
B. C Corporation B. marketing, operations, finance
C. Corporation C. HR, accounting, operations
D. S Corporation D. operations, marketing, accounting
2267. Which of the following situations is 2271. Is not consideration for service opera-
most likely to result in diseconomies of tions site selection
scale? A. Access
A. Suppliers are persuaded to offer much B. Visibility
lower prices as the quantity bought from C. Environment
them rises
D. Advertisement
B. A business is able to afford specialist
management as it grows 2272. Front Desk, Reservations and Concierge,
Housekeeping and SECURITY are all part
C. Employees lose motivation as a busi- of the Rooms Division Department
ness gets larger
A. True
D. A business invests heavily in automa-
B. False
tion of production
2273. The organization’s ability toperform the
2268. Today’s Operations Managers must
desired service dependably, accurately,
have a global view in operational strat-
and consistently.
egy, the rapid development in world trade
which seems to be a world without bor- A. Reliability
ders, has resulted in many organizations B. Assurance

C. Tangibles B. Class C items usually comprise 60% of

D. Empathy total items, but only 10% of the total value.
E. Responsiveness C. Pareto’s law states that typically 20%
of stocked items account for 80% of value.
2274. Product focus will focus on the product
D. Class B items typically account for 40%
that have low variety products in the mar-
of total value and 30% of the items.
ket.
A. Yes 2279. must be included in the system
NARAYAN CHANGDER
B. No A. outputs
B. inputs
2275. Product Layouts
C. model
A. Processing rates are faster
B. Slower processing rates D. obligations
C. High material handling costs 2280. What is batch production?

D. Higher space requirements A. 1. Producing goods one at a time
2276. Which statement below refers to an or- B. 2. Producing goods in small quantities
ganisations operations management? C. 3. Producing goods in large quantities
A. The logistics of getting their products D. 4. Producing goods for a limited period
to customers.
2281. Total output / Number of employees =?
B. The production of goods or services.
A. Labour productivity
C. The preparation of financial accounts.
B. Capital productivity
D. The hiring of workers to produce phys-
ical goods. C. Land productivity
Explanation:Operations management is D. Opportunity cost
about the production of goods and pro-
vision of services, in order to meet the 2282. Which is NOT a characteristic of ser-
needs and wants of customers. vices?
A. They are intangible
2277. JIT decrease profits and return on in-
vestment by bringing down levels of inven- B. They can be stored as inventory
tory and variability, improving quality of C. Production and consumption occur at
product, bringing down lead times of pro- the same time
duction and delivery, and reducing other
D. They involve a high degree of customer
costs like those related to setting up of ma-
contact
chines equipment breakdown.
A. true 2283. This is located at the end of the aircraft,
B. false providing stability and control. It is also
known as the empennage.
2278. Which of the following statements is A. Winglets
NOT true?
B. Wings
A. Class A items are those 10% of high
usage items, which generally account for C. Tail
60% of total usage value. D. Rudder

2284. Baking, cutting, assembling, washing, 2289. The advantages of capital-intensive pro-
constructing and mixing would all take duction is
place at what stage of the operations man-

A. low maintenance costs
agement system?
B. interesting and varied work for the
A. Inputs workers
B. Outputs C. consistent quality
C. Ipnuts D. low machine costs
D. Process 2290. Process Layouts
2285. Is the amount of product that an organi- A. Greater flexibility relative to the mar-
sation can produce under normal operating ket
conditions over a given period refers to: B. Low flexibility relative to the market
A. Process cycle time C. Processing rates are faster
B. Process flow D. Lower material handling costs
C. Capacity 2291. Process Layouts:Select Two
D. Transformation A. Able to produce a large number of dif-
ferent products
2286. 1) Which dimension of the customer util- B. Able to produce a small number of
ity function is emphasized with a restau- products efficiently
rant’s slogan, “Eat Fresh”?
C. Resources used are specialized
A. Timing
D. Resources used are general-purpose
B. Location
2292. What is:the factors that lead to an in-
C. Performance
cease in average costs as a business grows
D. Fit beyond a certain size
A. Economies of Scale
2287. Productivity means
B. Diseconomies of Scale
A. Input/Output
C. Break-Even Level of Output
B. Output-Input
D. Break-Even Charts
C. Output/Input
2293. As a rule, all purchased items should
D. Output + Input be inspected to see that they are of the
right kind and quantity and so that dam-
2288. It also called stock control, is the pro-
aged or unsatisfactory items can be re-
cess of managing a company’s inventory
turned to the supplier and new ones ob-
levels
tained quickly.
A. Purchasing Plan A. Inspecting Purchased Items
B. Inventory B. ISO 9000 Series of Standards
C. Inventory Control C. Inspecting Work in Process
D. Inventory Needs D. Testing

2294. The production manager must consider inventories of raw materials or finished
the heavy investment on manufacturing fa- products.
cilities B. is where a single product is made at a
A. Production Planning time.
B. Physical Facilities Management C. nvolves producing a quantity of one
C. Process Planning product and then moving on to produce an-
D. Product Planning
NARAYAN CHANGDER
D. known as mass production, involves
2295. Inspecting products and services to en- producing large quantities of a product in
sure they meet quality standards is an ex- a continuous process.
ample of the controlling function of man-
agement. 2300. The four objectives of an operations sys-
tem are:
A. true
A. Reduce Costs, Improve Quality, In-
B. false crease Productivity, Minimise waste
2296. Even if your business uses the perpetual B. Make a Profit, Increase market share,
inventory method, you will need to take a provide a return for shareholders, con-
physical inventory at least once or twice tribute to the wellbeing of the community
annually.
C. Just in Time, Quality Control, Auto-
A. true mated Production Lines, Lean Manage-
B. false ment
D. none of above
2297. 1) Which of the following is NOT a sys-
tem inhibitor?A) InflexibilityB) Poor brand 2301. Operations management is the area of
recognitionC) VariabilityD) Waste management that is responsible for design-
A. A ing and managing the production of a good
or service to meet customer demand.
B. B
A. True
C. C
B. False
D. D
2302. We study Operations Management be-
2298. Operation management is related to the
cause we study how people organize them-
production of outputs. Outputs can be di-
selves for productive enterprise.
vided into
A. TRUE
A. input and output
B. FALSE
B. feedback
C. creativity and innovation 2303. When writing your workforce plan,
which is typically NOT included?
D. good and services
A. Job title
2299. Describe the Just-in-time production
method. B. Compensation
A. a production method that aims to re- C. Qualifications

duce or eliminate the need for holding D. Job Description

2304. What is total quality management? C. To monitor employee satisfaction

A. The process of making changes to D. To develop quality objectives

products, services, or processes to im-
prove their quality 2309. Participants are encouraged to share
ideas that would contribute in the process
B. A management approach that empha-
improvement of the organization.
sizes the importance of quality in all as-
pects of a business A. Brainstorming
C. The process of ensuring that products B. Walking and Talking
or services meet customer requirements C. Nominal Group Technique
and expectations
D. none of above
D. The process of ensuring that products
or services meet specified quality stan- 2310. Refer to the amount of time, money,
dards and energy required to obtain, produce
and maintain a product or service.
2305. Outbound Logistics activities
A. Forecasting Process
A. Finished goods warehousing
B. Distribution channel selection B. Cost implications
C. Product adjustment C. Layout Planning
D. Delivery D. Total Quality Management

E. Order processing and scheduling 2311. Operations management is applicable
2306. Below are the cost involves in the car- A. mostly to the service sector
rying or holding costs EXCEPT: B. to services exclusively
A. Warehousing cost C. mostly to the manufacturing sector
B. Ordering cost D. to all firms, whether manufacturing
C. Insurance and service
D. Damage cost
2312. In FSN Analysis, S Stands For
2307. Cost estimating technique that uses the A. Speed Moving
actual cost of a similar project as the basis
for estimating current project? B. Slow Moving
A. Estimate at Completion C. Store Moving
B. Respect analogies D. Several Moving
C. Parametric Estimate 2313. Aggregate planning is concerned with

D. Cost Estimating determining the quantity and production
time within the
2308. What is the role of quality assurance in
A. Short
a quality management plan?
B. Long
A. To set quality standards for a project
B. To evaluate various aspects of an ac- C. Secondary
quisition project D. All answers are correct

2314. A more familiar type of e-commerce oc- 2319. Another set of operations management
curs between businesses and their cus- principles comes from author Dr. Richard
tomers, known as exchange, as en- Schonberger.
gaged in by online retailers. A. Know the competition.
A. B2C (business-to-customer) B. Focus
B. C2C (customer-to-customer) C. All of these
C. B2B (business-to-business) D. none of above
NARAYAN CHANGDER
D. none of above 2320. Service characteristics that is unable to
touched or grasped. (2pts)
2315. TRUE or FALSE Crosby Philosophy
stated that “Quality is Free” A. Aggregability
A. True B. Intangibility
C. Heterogeneity
B. False
D. Perishability
2316. OM stands for
2321. What does a critical path identify?
A. Operational managing
A. The lowest cost path to complete all
B. Operations management tasks in a project
C. None of these B. The highest cost path to complete all
tasks in a project
D. none of above
C. The longest time required to complete
2317. What is:used at checkouts where the op- all tasks in a project
erator scans the bar code of each item. D. The shortest time required to com-
A. Electronic Point of Sale (EPOS) plete all tasks in a project
B. Electronic Funds Transfer at Point of 2322. A long waiting line at the teller station
Sale (EFTPOS) in a bank at various times during the day is
C. Quality Control an example of and a symptom of
A. Defect, Waste
B. Inflexibility, Profit
2318. It is the most prominent service encoun- C. Variability, Inflexibility
ters:during these moments, guests make
decisions about how to proceed with the D. Waste, Variability
service (e.g., when deciding which meal to
2323. True or False:Operations management
order from a menu) and whether they are
consists of all the activities required to pro-
satisfied with any part of the service or
duce goods and services.
with the experience altogether
A. True
A. Moment of Output
B. False
B. Moment of Truth
2324. Primary activities add value directly to
C. Final momentum
the production process, they are necessar-
D. None of the above ily more important than support activities.

A. TRUE 2330. Diseconomies of scale might arise be-

B. FALSE cause

C. MAYBE A. firms spend money on new technology
D. SOMEHOW which leads to lower average costs.
2325. Another set of words to describe the 3 B. decision-making by management be-

pillars of sustainability include comes more difficult in larger firms.
A. people, profit and planet C. workers are more likely to be produc-
B. Profit, people and purpose tively efficient in larger firms.
C. planet, profit and potential D. larger firms can buy in bulk.
D. People, planet and pollution
2326. What is the key skill required for agile 2331. Koka Kola has invested in new ma-
management? chinery which allows managers to quickly
move between high and low volume out-
A. Ability to remain calm under stress put with ease. Which performance objec-
B. Ability to avoid teamwork tive has Koka Kola satisfied?
C. Ability to ignore customer feedback
A. Economies of scale
D. Ability to procrastinate
B. Dependability
2327. It is an approach in which workers are
given a larger portion of the total task to C. Flexibility
do.
D. Speed
A. job enrichment
B. mass customization 2332. A Strategy is the rationale for an orga-
C. job enlargement nization’s existence.
D. none of above A. True
2328. A type of waste where moving products B. False
that are not actually required to perform
the processing.
2333. As per COA’s audit report, their findings
A. Transportation focused on:
B. Waiting
A. overpricing
C. Over production
D. Over processing B. corruption
2329. What does the term ‘operations’ encom- C. inventory mismanagement

pass today?
D. graft
A. Decentralized production
B. Large-scale manufacturing processes 2334. It needs fewer capital requirements.
C. All activities involved in creating goods
and services for customers A. Production
D. Efficiency and structured processes B. Operation

2335. It is defined as the process of enabling 2340. Center of gravity defines the new loca-
machines to follow a predetermined se- tion relatively to customer location in sup-
quence of operations with little or no ply chain
human intervention and using specialized A. True
equipment and devices that perform and
control manufacturing processes and oper- B. False
ations.
2341. What are the advantages of templates
A. Numerical Control over diagrams?
NARAYAN CHANGDER
B. Fixturing A. Can be conveniently moved on the
C. Material Handling graph paper
D. Automation B. Less laborious

C. Saves time
2336. Which statement below refers to an or-
ganisations operations management? D. All of the above
A. The logistics of getting their products 2342. What is the composite score of alterna-
to customers. tive 1?
B. The hiring of workers to produce phys-
ical goods.
C. The production of goods or services.
D. The preparation of financial accounts.
2337. This is adrastic step, but one that may

be necessary if you’ve exhausted all other
options.
A. 71.6
B. 70.6
B. Issuing a Written Reprimand
C. 81.6
ment Plans D. 80.6
D. Issuing a Written Suspension 2343. Division of labor allowed higher vol-

E. Terminating an Employee umes to be produced, which, coupled with
the advances in transportation of steam-
2338. Sony emphasizes on low cost as one of powered boats and railroads, opened up
its competitive priorities. True or False distant markets.
A. True A. true
B. False B. false
2339. In batch production/ Job shop produc- 2344. Production management means plan-
tion inventory for raw material & finished ning, organising, directing and controlling
products is less and WIP inventory is low. of production activities. Production man-
agement deals with converting raw mate-
A. true rials into finished goods or products. It
B. false brings together the 6M’s i.e. men, money,

machines, materials, methods and mar- 2350. Types of operations managers include:
kets to satisfy the wants of the people A. Human Resources

A. True B. Accounting
B. False C. Engineering
2345. An example of this layout are airplanes, D. Manufacturing
buildings and vessels E. All of the answers are correct
A. Fixed Position Layout
2351. Forecasts are a basic input in the de-
B. Work Cell Layout cision process of operations management
C. Process Oriented Layout because they provide information on fu-
D. Product Oriented Layout ture demand.
A. True
2346. allow managers to examine a range
of Scenarios AND are well suited to open- B. False
ended problems.
2352. The correct order of procedure in method
A. transportation model study is
B. simulation model A. Select-Record-Examine-Develop-
C. breakeven analysis model Define-Install-Maintain
D. factor rating model B. Select-Define-Examine-Develop-
Record-Install-Maintain
2347. Which is an independent variable of de-
C. Select-Record-Develop-Examine-
mand?
Define-Install-Maintain
A. Price
D. Select-Record-Examine-Define-
B. Income Develop-Install-Maintain
C. Nationality
2353. Stock losses will result in
D. Taste and preference
A. An increase in Revenue
2348. Low trust between labour and manage- B. An increase in Expenses
ment; poor communication and hierarchical
C. An increase in Assets
in nature
A. Flexible Production D. An decrease in Liabilities
B. Mass standardized production 2354. The Front Office & Guest Services De-
C. Lean Production partment is a part of the ADMINISTRA-
TIVE groups.
D. Non-sleep production
A. True
2349. The main objective of a production B. False
schedule is to ensure that the quantity of
production is enough to fulfil the expected 2355. The production of goods and services us-
market demand for the scheduled period, ing less of everything compared to mass
e.g. the next four months. production is
A. True A. precise manufacturing
B. False B. mass manufacturing

C. slim manufacturing 2362. FIJ Co. requires sunflower oil for

D. lean manufacturing the production of it’s top selling creamy
peanut butter. FIJ sources sunflower oil
2356. When the site selection process is initi- is sourced from global suppliers that rou-
ated, the pool of potential locations for a tinely experience disruptions from wars,
manufacturing facility is, literally, global. floods, droughts, and labor strikes. Which
A. TRUE type of supply chain strategy should this
company use?
B. FALSE
NARAYAN CHANGDER
A. Responsive Supply Chain Strategy
2357. SUCCESSFUL PROJECTS ARE
A. Lasting forever B. Efficient Supply Chain Strategy
B. Completed on-time C. Agile Supply Chain Strategy
C. Flexible D. Risk-hedging supply chain strategy
D. Independent of all variables
2358. What is project management? 2363. The sooner you identify the the
sooner you can eleminate negative devel-
A. Developing marketing strategies opments
B. Creating financial reports for a project
A. Advantages
C. Managing daily tasks in an organiza-
tion B. Risk
D. Coordinating activities and resources C. Goals
to meet deadlines and achieve project out-
comes D. Topics
2359. Takt time is refer to the available time 2364. These are aircraft driven by propellers
for producing a unit of output in order to or props. They are smaller, relatively slow
meet customer demand (with 300 miles per hour (mph) speed),
A. True and travel short distances.
B. False A. Jet Planes
2360. Identify the service businesses (3) B. Prop Planes
A. Cinema
C. Narrow-Body Props
B. Bakery
C. Postal service D. Wide-Body Props
D. Accountant
2365. The process of monitoring and evaluat-
2361. Competitive priorities that must be met ing performances and correcting any prob-
for a company to qualify as a competitor lems as necessary
in the marketplace
A. Controlling
A. Order winners
B. Directing
B. Order Qualifiers
C. Quality Dimensions C. Planning
D. Orders D. Organizing

2366. The of the following location factors re- 2372. Forecasting is often used for
late to ‘Infrastructure’. Which is the odd
A. Inventory
one out?

A. Cost and ease of distribution B. Resource
B. Ability to attract skilled employees and C. Sales
suppliers
D. Purchase
C. Availability of hi-speed wifi
D. Quality of life for management and em- 2373. Is placed on achieving performance
ployees rather than the economic aspects of attain-
ment, but managers are concerned both
2367. The core of all strategies is with money and with people
A. Resources
A. Management
B. Operations
B. Emphasis
C. Competitiveness
D. Manpower C. Operations
2368. Which of the following is NOT one of the D. Planning

four main diseconomies of scale?
2374. Which one is the objective of operations
A. Coordination and communication prob- management?
lems
B. Lack of motivation from employees A. Understand what operations man-
agers do
C. Too much delegation
B. One of the major functions in the or-
D. New technology
ganisation
2369. TRUE/FALSE:One keys to planning is
C. Achieving customers’ satisfaction
one should know what needs to be done.
A. TRUE D. Know how goods are produced
B. FALSE
2375. The managerial process that determines
2370. Below is NOT INPUT from ADVERTIS- a strategy for an organization is termed
ING service operations as?
A. Information from Client A. Key Purchasing Criteria
B. News from Clients B. Quality based strategy
C. Revision request from Client
C. Strategic Planning
D. Reference from Client
D. Time-based strategy
2371. In understanding and use of the POM
system will raise your organizations 2376. The meaning of tangible is can not be
A. performance seen, cannot be touched and cannot be dis-
played.
B. profiteers
C. credentials A. Yes
D. obligations B. No

2377. setting goals and determining ways 2382. The transition from economies of scale
to achieve the goals. to diseconomies of scale:
A. Leading A. is more likely to occur in a service op-
eration
B. Staffing
B. is more likely to occur in a manufactur-
C. Planning ing operation
D. Controlling C. is more likely to occur when utilization
is low
NARAYAN CHANGDER
2378. This term refers to programmable ma-
chines that are capable of performing spec- D. contains the point at which average
ified tasks. unit costs are at their lowest
A. Online services 2383. Resulting from poor tool or product de-

sign creating activity.
B. Robotics
A. Waiting
C. Computer aided manufacturer
B. Motion
D. Artificial intelligence C. Over burden
2379. A firm fixes large solar panels to the D. Over processing
roof of its factory. In the long run, this
2384. Which of the following statements com-
reduces its overall costs. What is this an
bine to form a valid definition of lean man-
example of?
ufacturing? Lean manufacturing
A. Ecological and social sustainability. A. is a rigidly defined set of steps to fol-
B. Social and economic sustainability low.
C. Ecological and economic sustainability B. focuses on reducing waste.
D. All three types of sustainability. C. focuses on reducing error and defects

D. focuses on automation of production.
2380. Which of the following is the correct se-
quence for an operations process? 2385. refers to the way in which work sta-
tions, equipment, machinery and employ-
A. Facilities-controls-waste ees are positioned within a work facility.
B. Materials-design-product A. facility decision
C. Information-services-improvement B. facility layout
D. Human resources-planning-customers C. process selection
D. process decision
2381. JIT is a form of inventory management
that requires working closely with suppli- 2386. What are some strategies that compa-
ers so that raw materials arrive as produc- nies can implement to manage demand
tion is scheduled to begin, but no sooner. when demand exceeds capacity?
The goal is to have the minimum amount A. Raise the price
of inventory on hand to meet demand.
B. Scheduling long wait times
A. TRUE
C. Understates the marginal profit of the
B. FALSE business

D. Price reduction 2391. It includes the operational techniques

E. Aggressive marketing and the activities that sustain a quality of-
product or service that will satisfy given

2387. This term refers to an output that can needs; also the use of such techniques an-
be touched. dactivities
A. Intangible A. Quality Assurance
B. Real B. Quality Control
C. Tangible C. Total Quality Management
D. none of above D. Operations
2388. involve managers from sales, mar- 2392. Firm A Pareto dominates firm B” means
keting research, accounting and production. that firm A’s product or service is inferior
This managers assembles to discuss their to that of firm B on all dimensions of the
opinion on what will happen to sales in fu- customer utility function.
ture.
A. True
A. Jury of Executive Opinion
B. False
B. Delphi Method
2393. sustainability is the dimension of
C. Sales Force Composite
the triple bottom line that focuses on the
D. Market Survey extent to which an organisation or econ-
omy can meet the needs of the current pop-
2389. Which of the following is NOT a benefit
ulation without jeopardising the needs of
of global sourcing of inputs?
future populations.
A. Inputs sourced from oversees can be
A. Economic
cheaper due to lower production and
labour costs. B. Social
B. A business can access resources not C. Ecological
found within their country of operation. D. none of above
C. A business can make use of skills and
expertise found in other countries. 2394. The stock of raw materials, work in
progress and finished goods
D. Inputs sourced from overseas can be
obtained quickly. A. Labour
B. Capital
2390. The rise of the internet has meant that
many businesses costs are: C. Inventories
A. Lower as there is more need for expen- D. Obsolescence
sive retail premises
2395. A competitive priority focusing on the
B. Higher as there is more need for ex- quality of goods and services.
pensive retail premises
A. Quality
C. Higher as there is less need for expen-
sive retail premises B. Trade-off
D. Lower as there is less need for expen- C. Time

sive retail premises D. Productivity

2396. Smailes Ltd has fixed costs of $50, 000. 2401. Benefits of Quality are as below EX-
It costs them $2.00 in variable costs to CEPT:
produce one item. They produce 80, 000 A. retain market share
items. Calculate Smailes Ltd.’s total vari-
able costs: B. acquire profitability
A. $50, 000 C. reduce customer loyalty
B. $160, 000 D. produce high quality products
2402. What is the main focus of Lean Six
NARAYAN CHANGDER
C. $80, 000
D. $210, 000 Sigma?
A. Slowing down process flow
2397. Pyramid forecasting, or rationalizing
high-and low-level forecasts, enables B. Increasing waste and defects
management to review and adjust fore- C. Efficiency and reducing waste
casts made at an aggregate level and keep D. Effectiveness and reducing errors
lower-level forecasts balanced.
A. True 2403. Managers must recognize performing
employees in various forms of private ac-
B. False knowledgment.
C. Maybe A. True
D. none of above B. False
2398. Which term describes taking human fac- 2404. Total Quality Management Focuses on
tors into account when making sustainable
business decisions which may affect work- A. Employee
ers and the local community? B. Customer
A. The triple bottom line C. Both (a) & (b)
B. Ecological sustainability D. None of the Above
C. Social sustainability 2405. What is the following task word:What
D. Economic sustainability is happening and why BLTAND/ORWhat
are potential issues BLTOverall statement
2399. Office layout also known as assembly
lines layout. A. Explain
A. Yes B. Discuss
B. No C. Analyse
D. Evaluate
2400. is a word, phrase, symbol, and/or
design that identifies and distinguishes the 2406. The Taguchi method includes all except
source of the goods of one party from which of the following major concepts?
those of others. A. Employee involvement
A. Service Mark B. Remove the effects of adverse condi-
B. Trademark tions
C. Patent C. Quality loss function
D. Copyright D. Target specifications

2407. FIFO stands for: 2412. What is the definition of project schedul-
A. First-in-first-out ing?

B. First-out-first-in A. Ensuring all necessary materials and
C. First-done-fine-out parts are available precisely when needed
D. Fine-in-fine-out B. Monitoring production activities
2408. What time is not related to PERT analy- C. Diagramming steps and time required
sis? for each in a project
A. Optimistic time D. Determining the quantity of goods a
B. Pessimistic time firm can produce under normal conditions
C. Most likely time 2413. A product layout:
D. Least likely time
A. Moves resources to the place where
2409. Chally Fries is an Australian based man- the operation is to be carried out.
B. Involves locating the transforming re-
The business specializes in the production
sources entirely for the convenience of
of frozen French fries and supplies over
the transformed resources.
60 restaurants around Australia. Fresh
potatoes are delivered weekly to the fac- C. Allows a wide variety of products to be
tories, which are then washed and cut by manufactured on the same equipment.
D. Groups transforming resources into
cut into French Fries, they are packaged,
dedicated cells.
boxed and frozen, ready to be delivered
2414. providing caring, individualized atten-
False. The boxed and packaged French
tion to customers.
fries is the output of Chally Fries’ opera-
tions system. A. Reliability
A. True B. Assurance
B. False
C. Tangibles
2410. It is a set of all activities associated D. Empathy
with the production of a product
A. Operation E. Responsiveness
B. Product Planning 2415. What are the 4 P’s in marketing?

C. Production
A. Product, Price, Place, Promotion
D. Controlling
B. Planning, Organizing, Controlling, Im-
2411. Who is ultimately responsible for oper- proving
ations management?
C. Facilities, Production and Service Fac-
A. director of Operations tors, Process Factors, Human Factors
B. Shareholder
D. Increase productivity, Raise revenue,
C. Supervisor Achievement of organization goals, Im-
D. Operational manager prove customer satisfaction

2416. What is the primary reason for all fail- A. True

ures?
B. False
A. Material or information failure
B. System failure 2422. How the operations management func-
tion is carried out will directly affect a busi-
C. Random chance ness competitive position. True or False?
D. Human failure
A. True
NARAYAN CHANGDER
2417. The following image represents the cor- B. False
rect transformation process
2423. Two likely consequences of ‘stock outs’
occurring regularly in a business is likely
to lead to:
A. Higher sales and lower gross margin
A. TRUE
B. Lower cost of sales and higher profit
B. FALSE
C. Lower sales and lower customer good-
2418. Often a top management work involv- will
ing all the sectors of the firm, that is, the D. Higher cost of sales and higher cus-
finance, marketing, production and techni- tomer loyalty
cal departments
A. Controlling 2424. The dominant operation for a bank is:
B. Product planning A. Processing complaints
C. Organizing B. Processing materials
D. Process Planning C. Processing information
2419. According to Janna Cachola ofEveryday D. Processing customers
Power (2022), disciplineis not about the
rules, it’s aboutrespect. 2425. Following are the relationships between
operations and marketing EXCEPT
A. TRUE
B. FALSE A. Status of orders
B. Customer orders
2420. Which of the Following is the Forecast-
ing technique? C. Sales forecasts
A. ABC Analysis D. Material availability
B. Simple Moving Average
2426. Product Layouts:Select Two
C. PERT
A. Able to produce a small number of
D. Inventory Control Technique products efficiently
2421. The primary opportunities were in the B. Resources used are specialized
areas of marketing, to develop the large
C. Facilities are more labor intensive
potential markets for new products, and
in finance, to support the growth. D. Resources used are general-purpose

2427. This describes the alignment of posi- B. True

tions in the company including the lines of
authority (who reports to whom), chain of 2431. If 600 box per day requiredBox produc-

Command (proper channels) and span of tion schedule for 7 hours per dayTotal op-
control (scope of authority and responsi- eration time is 150 secondsFind takt time.
bility) A. 48 seconds
A. job breakdown B. 50 seconds
B. job standards C. 42 seconds
C. organizational chart D. 40 second
D. job specification 2432. It involves changing inputs to outputs.
2428. A lot measurement procedure that A. Product
places orders at predetermined time inter- B. Productivity
vals with an order quantity equal to the
C. Production
total required interval is
D. Process
A. Economical order quantity
B. Lot-for-lot 2433. fall under either a C corporation, an S
corporation or a partnership depending on
C. Periodic Order Quantity
how it decides to be treated for taxation
D. Period balance of spare parts when it is first formed; are treated as
E. Economic Order Quantity a separate legal entity from its owners
(members) just like in a corporation
2429. The initial decision whether a manufac-
A. Shareholder
turer fabricates in-house or uses an out-
side supplier is known as ? B. C Corporation
A. An Offshoring decision C. Limited Liability Corporation
B. A Make-or-Buy decision D. S Corporation
C. An Outsourcing decision 2434. Production is typically a major part of
D. A Purchasing decision a company’s cost structure, and you must
manage it wisely.
2430. Chally Fries is an Australian based man-
A. Planning
The business specializes in the production B. Costs control
of frozen French fries and supplies over C. Process
60 restaurants around Australia. Fresh D. none of above
tories, which are then washed and cut by 2435. Which function of operations manage-
machines. After the potatoes have been ment involves coordinating the allocation
cut into French Fries, they are packaged, of resources?
boxed and frozen, ready to be delivered A. Planning
False. French fries are the main inputs of B. Organizing
Chally Fries’ operating system. C. Controlling
A. False D. Improving

2436. This refers to the overallprocess of iden- 2442. Money that could be used elsewhere but
tifying, attracting, screening, shortlist- cannot be due to it being ‘tied up’ in hold-
ing andinterviewing, suitable candidates- ing inventories
for jobs within organization.
A. Opportunity cost
A. Hiring
B. Shrinkage cost
C. Handling cost
C. Compensation
D. Insurance cost
NARAYAN CHANGDER
2443. Part of the tail that is the hinged part of
2437. True or False:Today, manufacturers in the horizontal stabilizer. It is used to de-
China, Mexico, Japan, etc. are competing flect the tail up and down or change pitch.
with U.S. firms (businesses).
A. Elevator
A. True
B. Vertical Stabilizer
B. False
C. Rudder
2438. What is the earned value minus the ac- D. Turbine Engine
tual cost known as?
A. Planned Value 2444. Lean, as a concept or brand, has cap-
tured the imagination of many in different
B. Cost Control
spheres of activity.
C. Actual Cost
A. True
D. Cost Variance
B. False
2439. Managing and coordinating global oper- C. Maybe
ations management functions was consid-
D. none of above
ered paramount to the company’s success.
A. True 2445. What are NOT the Roles of an Opera-
B. False tions Manager
A. Budgeting
2440. What is important in maturity stage of
PLC B. Planning
A. Frequent process and design change C. Controlling
B. Increase capacity D. Leading

C. Product improvement and cost cutting 2446. AN exclusive right granted for an inven-
D. Reduce capacity tion, which is a product or a process that
provides a new way of doing something.
2441. Too much inventory holding in the ware-
A. Copyright
houses might harm the company’s prof-
itability. B. Trademark
A. True C. Copyleft
B. False D. Patent

2447. Inventory Control is a set of procedures, B. Increased training

both physical and accounting in nature, de- C. Improved staff motivation
signed to co-ordinate the receiving, stor-

ing, issuing and distribution of inventories, D. Increased staff meetings
to achieve maximum efficiency.
2453. Supply Control creates synchronization
A. True across the sales, demand planning, and
B. False supply planning functions.
A. true
2448. Which of the following are examples of
CAD software? B. false
A. Microsoft Word C. Swear, I am the right one. Please
choose me.
B. 2D Design
D. Error question
C. Google Sketchup
D. Google Chrome 2454. “It is important for the company to de-
termine the good and services, develop
2449. Most manufacturers provide services policies and procedures and forecast the
as part of their business, and many ser- project before produce the product”. This
vice firms manufacture physical goods that statement best describe as
they deliver to their customers or consume
A. Leading
during service delivery
B. Planning
A. TRUE
C. Organizing
B. FALSE
D. Controlling
2450. Includes all those planned or systematic
actions necessary to provideadequate con- 2455. A manufacturing business is a cost
fidence that a product or service will sat- leader in their industry. Which combina-
isfy given needs tion of features of the transformation pro-
cess are they most likely to demonstrate?
B. Quality Control A. Low volume, low variety
C. Total Quality Management B. High volume, low variety
D. Operations C. Low volume, high variety

D. High volume, high variety
2451. Which of the following will most likely
reduce with reduced productivity? 2456. Labour intensive production involving a
A. Costs high level of capital equipment compared
with labour input
B. Profits
A. True
C. Training
B. False
D. none of above
2457. This technology strategy involves a com-
2452. The following are all likely to improve puterised design tool that allows busi-
productivity except which one? nesses to create, visual and modify prod-
A. Increased automation uct possibilities.

A. CAD C. The list of Quantities of components,

B. CAM ingredients, and material required along
the quality specification
C. Automated Production Line
D. Website Development
2463. The purpose of a PERT network is:
2458. Just in time is best used in a
A. to monitor the quality of a product for
A. Service business compliance with ISO 9000 standards.
NARAYAN CHANGDER
B. Manufacturing business B. to monitor the progress of a multi-step
project during its development.
2459. Which question should be answered by
the purchasing function? C. to connect all firms that are ISO 9000
certified so that they can partner with
A. How can we inform customers of avail-
each other on future projects.
able merchandise?
D. to be used as a decision making tool
B. How much merchandise should we
when evaluating the best facility locations
buy?
and layouts.
C. How will merchandise be shipped to
us? 2464. It is characterized by automatic line bal-
ancing, machine loading (scheduling and se-
D. How can we protect merchandise from
quencing), automatic inventory control and
pilferage?
inspection.
2460. Part of the wings used at takeoff and A. Computer Aided Manufacturing
landing to produce additional force or in- B. Computer Aided Engineering
crease lift during low-speed operations
such as takeoff, initial climb, approach, C. Computer Aided Design
and landing. D. Computer Integrated Manufacturing
A. Slat 2465. What is the difference between wages
B. Flap and salary?
C. Spoiler A. wages are paid hourly, while salary
is a fixed amount regardless of hours
D. Aileron
worked
2461. An itemized estimate of income and ex- B. Wages are fixed amount, while salary
penses in a project is paid hourly
A. Incremental C. Wages include benefits provided,
B. Bidding while salary does not
C. Budget D. There is no difference
D. Liquidated Damages 2466. Which of these isn’t a method of improv-
ing productivity?
2462. Bills of Materials is;
A. employing more staff
A. A list of Quantities of components, in-
gredients, and material required to pro- B. providing pay incentives
duce a product C. investing in up-to-date machinery
B. The list of materials ordered D. training staff

2467. What outlines the appropriate behavior C. Laundry Shop

and actions of those who work for you?
D. Dunkin Donuts

A. strategies
E. Gold Smith
B. breakeven point
C. liquidation 2472. Reducing can reduce costs and lead
to higher profit margins.
D. rules
A. Assets
2468. What is the definition of globalisation?
B. Liabilities
A. A fall in the value of a nation’s currency
against that of another currency C. Waste
B. The classification of the world’s na- D. Equity

tions into different regions based on their
geography and economic links 2473. Which of the following below is an ex-
ample of service organizations in which
C. A group of nations that have formed the customer is present during the creation
a trade alliance by signing a multilateral of the service.
trade agreement
A. groceries
D. Different national economies inte-
grated into one market for easy trade of B. hospitals
goods and services, and the development C. school
of a world economy
D. none of above
2469. Line Balancing is the process of assign-
ingtasks to workstations in such a way 2474. A philosophy that involves everyone in
that the workstations have approximately an organization in a continual effort to im-
equal time requirements. prove quality and achieve customer satis-
faction.
A. True
A. QA
B. False
B. QC
2470. It is the implementation of the strate-
gies, plans and programs require to at- C. TQM
tract, motivate, develop people to meet, D. QM
reward, and retain the best people to meet
the organization goals and operational ob- 2475. Define wants in the context of opera-
jectives of the hospitality enterprises tions management.
A. Hiring A. Goals or objectives of customers or
B. Human Resource Management stakeholders
C. Compensation B. Demands or expectations of cus-
tomers or stakeholders
C. Desires or preferences of customers
2471. Check the items that belongs to Service. or stakeholders
A. Computer Repairs D. Needs or requirements of customers
B. Convenience Store or stakeholders

2476. Which of these is NOT a difference C. Comment Cards

between the operations of service busi-
D. SERVQUAL
nesses and manufacturers?
A. Tangible vs intangible outputs 2481. The level of inventory you keep in stock
B. Services can be stored depends on all of the following except
C. Services usually require customer A. the cost of carrying inventory

presence or participation B. the cost of low sales due to being out
NARAYAN CHANGDER
D. Manufacturing requires a physical of stock
bricks and mortar location C. your stock turnover rate
2477. Pick the best definition for TQM (total D. your net-profit-on-sales ratio
quality management).
2482. An example of this layout are grocery
A. “A management philosophy, with the
stores, clothing stores and appliance cen-
primary aim of satisfying needs & expec-
ters.
tations of customers/clients by means of
high-quality products/services.” A. Work-Cell Layout
B. “A management philosophy, with the B. Retail Layout
primary aim of satisfying needs & expec- C. Fixed Position Layout
tations of the business by means of high-
quality service.” D. Product-Oriented Layout
2478. What are the two types of variation? 2483. Operational Objectives do not include
A. Indirect Cause A. Profitability
B. Common Cause B. Flexibility
C. Direct Cause C. Lower unit cost
D. Special Cause D. Quality
2479. WHAT’S THE GOAL OF TQM?
2484. Productivity computed as a ratio of out-
A. fitness for use put to several, but not all, inputs.
B. Do the right things right the first time, A. Mission
every time
B. Infrastructure
C. zero errors
C. Quality
D. zero defects
D. Multifactor productivity
2480. Employee training should also includeap-
propriate service recovery techniquessince 2485. What is the main purpose of the 5s Lean
research confirms the benefits ofemployee tool?
solicitation and resolution ofcustomer com- A. To maintain high inventory
plaint.
B. To improve quality
C. To increase waste
Data D. To reduce cost

2486. Characterized by modules with parts A. Human processes

and assemblies made previously B. Labour intensive

A. Repetitive Focus C. Social intensive
B. Process Focus D. Transformation processes
C. Product Focus
2491. Excess capacity in production can cause:
D. Mass Customization
A. Cost reduction
2487. It is the degree to which a set of inher- B. Increased efficiency
ent characteristics fulfills requirements.
C. High storage costs
A. quality
D. Increased demand
B. function
2492. A competitive priority focusing on offer-
C. usage
ing a wide variety of goods or services
D. feature
A. Time
2488. In this type of automation, greater flex- B. Quality
ibility is achieved through the use of com-
C. Flexibility
puter control of the machine and of its func-
tions; thus, it can produce parts having D. Cost
complex shapes.
2493. What management style may improve
A. Programmable Automation communication between departments?
B. Control Automation A. Autocratic management
C. Flexible Automation B. Democratic management
D. Fixed Automation C. Paternalistic management
2489. Which of the following would NOT nor- D. Reactionary management
mally be considered a general characteris-
2494. What is the definition of total quality
tic of a service?
management (TQM)?
A. Production and consumption can al-
A. The loss of value or need for an object,
ways be spatially separated.
service, or practice
B. Production and sales cannot easily be
B. The approach to quality control that re-
functionally separated.
lies on continuous improvement
C. Production and consumption are simul-
C. The regular meetings of employees to
taneous.
discuss workplace issues
D. Low contact services can often be
D. The establishment and use of proce-
made more efficient than high contact ser-
dures to prevent product problems
vices.
2495. What is an advantage of mass produc-
2490. Provisions of products that rely heavily
tion?
on human involvement
A. Lower cost per unit
B. Production of unique items
C. Flexible production process
D. Low level of wastage

2496. Service providers can be professional 2501. Waste management, energy optimiza-
services, service shops or mass services. tion, air quality, workforce health &
Which one below is NOT a service shop? safety, ethics and governance, and emer-
gency preparedness among others are
A. Management Consultants
some of the challenges of the OM as it
B. Banks forms part the company’s
C. Hotels A. Workforce
D. Laundromat B. Sustainability practices
NARAYAN CHANGDER
C. Optimizing Supply Chain
2497. Identify whether the following charac-
teristics of operations relate to a manufac- D. All of the given answer
turing and/or service business. Outputs 2502. is an approach that improves the ef-
can be stored. ficiency and effectiveness of operations by
A. Service eliminating waste and improving quality.
B. Manufacturing A. Waste minimisation
B. Lean management
2498. What are economies of scale?
C. Total quality management
D. Quality assurance
parts used to produce a good or supply a
service 2503. Bulk-reducing/JIT industries often need
B. By increasing the scale of operations, to be located close to sources of supply.
a business can lower the cost of producing An example of this is
each individual output as a result of cost A. Health and Fitness classes
savings and greater efficiency
B. Steel Production
C. The achievement of maximum output C. Electronic Component Manufacture
with the minimum level of inputs
D. Hairdressing
D. The difference between the sale price
of a product and the cost to make the good 2504. A key component of planning a project
or supply the service can be
A. Venn diagram
2499. The term simply refers to comparing
yourself to your competitors. B. Think box
A. Quality circle C. Brain Frame
B. Benchmarking D. Work breakdown structure
C. signboard 2505. The count the finished units fromthe

process such as mobile phones produced in
D. none of above a dayor cars manufactured per week.
2500. Process Strategies has long term effects A. input measure
on costs and quality. B. output measure
A. True C. both
B. False D. none of above

2506. A single firm (company) may employ 2511. A is anywhere buyers and sellers
one production process or many is de- meet to buy and sell goods and services.
scribed as:

A. Store
A. Number of production processes B. Workplace
B. Focus or major resource C. Restaurant
C. Magnitude of change D. Market
D. none of above
2512. Supplier selection is a part of soucing
2507. System developed to coordinate the strategies in supply chain management
flow of parts within the supply system on A. True
a day-to-day basis B. False
A. Justin Bieber (JOB)
2513. A point-of-sale (POS) software system
B. Inventory System makes it easier to analyze your inventory
C. Kilometric Flow Coordinated (KFC) records at the end of the day.
D. Just In Time (JIT) A. True
B. False
2508. Which of the following activities is not
a direct responsibility of operations man- 2514. What is:the total cost of production di-
agement? vided by the total output. Also known as
A. Developing an operations strategy for unit cost
the operation A. Fixed Costs
B. Planning & controlling the operations B. Variable Costs
C. Determining the exact mix of products C. Total Costs
and services that customers will want D. Average Cost per Unit
D. Designing the operations products,
2515. It is be an essential condition for suc-
services & process
cess in the emerging, keenly competitive,
2509. If the actual demand for a period is global hospitality markets.
100 units but the forecast demand was 90 A. Production
units. The forecast error is
B. Quality Control
A. 10 C. TQM
B. 5 D. Delivering Quality Service
2510. A demanding competition, with every 2516. It is the intangible part of the transac-
company subject to the same stringent tion relationship, whereas a product is the
tests. tangible component.
A. Six Sigma A. Goods
B. Deming Prize B. Service
C. Baldrige Award C. Products and Services
D. Taguchi Methods D. None of the above

2517. The following are the impacts resulting 2522. What are quality metrics used for?
from delays that occur on the critical path, A. To assess the quality of products or
except services
A. Production budget increases B. To ensure consistency and reliability in
B. Production activities are hampered the quality of products or services
C. Product completed on time C. To monitor and improve quality over
D. Increased sales time
NARAYAN CHANGDER
D. To eliminate defects and reduce costs
2518. What is the purpose of forecasting in in-
ventory management? 2523. Business processes are always linear.
A. To compensate for unexpected fluctua- A. True
tions in supply and demand B. False
B. To monitor inventory control perfor- Explanation:Business processes are not
mance always linear because they are often com-
plex and dynamic, and they can be in-
C. To make replenishment decisions with
fluenced by a variety of factors, includ-
a clear understanding of forecast future
ing:Customer needs:Customer needs can
demand
change over time, and businesses need
D. To cope with transportation delay to be able to adapt their processes ac-
cordingly. For example, a business may
2519. It includes allactivities designed to pro-
need to change its production process
duce products and services of appropriate
to meet a new customer demand for
quality.
a customized product. Employee feed-
A. Quality Assurance back:Employees can identify areas where
B. Quality Control processes can be improved. For exam-
ple, employees may suggest a way to
streamline a process or eliminate un-
D. Operations necessary steps. New technologies:New
technologies can enable new ways of do-
2520. The inputs to a transformation process
ing things, which can lead to changes in
include all of the following except?
business processes. For example, the
A. Materials introduction of e-commerce has led to
B. Land changes in the way that many businesses
sell their products and services. Regula-
C. People
tory changes:Regulatory changes can also
D. Assembly require businesses to change their pro-
cesses. For example, a business may
2521. What contains most of the data needed need to change its data security process
for analyzing a company’s debt and eq- to comply with a new data protection reg-
uity? ulation.
A. cash budget sheet
2524. What is the focus of change manage-
B. breakeven sheet ment in the operational improvement cy-
C. balance sheet cle?
D. inventory sheet A. Financial management

B. Employee behavior change B. Office Layout

C. Marketing strategies C. Fixed Position Layout

D. Product development D. Retail Layout
2525. Operations Managers main focus is on 2530. It costs Keyworth Ltd $0.50 in variable
the Product costs to make one item. Their output is 90,
A. True 000. Keyworth Ltd has fixed costs such as
rent and insurance which total $35, 000
B. False Calculate Keyworth Ltd.’s total costs:
2526. This standard provides organizations A. $80, 000
with the elements for an environmental
B. $70, 000
management system, which can be inte-
grated into other management systems to C. $65, 000
help achieve environmental and economic D. $45, 000
goals.
A. ISO 9001 2531. Operations Management is a pro-
cess:
B. ISO 22000
A. Translation
C. ISO 14001
B. Transformation
D. ISO 26000
C. Transaction
2527. Which refers to the assignment of task D. Transition
or work to a facility?
A. Loading 2532. True or false:Service companies have
a greater reliance on raw materials than
B. Directing manufacturing businesses.
C. Controlling A. True
D. Co-ordinating B. False
2528. A possible reason why a retailer might
2533. These are used to move the workpiece
choose to pay a high rent might be
from one station to another in the machine,
A. To enable the business to also sell on- or from one machine to another, to enable
line various operations to be performed on the
B. To improve availability of supplies part.
C. To reduce fix-costs and break even A. Buffer storage
analysis B. Power-head production units
D. To get a location close to busy cus- C. Transfer mechanisms
tomer footfall
D. Transfer line
2529. A layout that deals with low volume,
high variety production in which like ma- 2534. The main benefits of e-commerce in pro-
chines and equipment are grouped to- duction management are:
gether. A. Increase interaction with customers
A. Process Oriented Layout B. Expanding market reach

C. Reduces the need for physical inven- 2541. In Operations Management, processes
tory may differ fundamentally in four ways-the
D. Reduce operational costs 4 V’s. The 4 V’s are:
A. Volume, variety, variation, visibility
2535. Positive Risk should be considered
B. Volume, variety, vision, visibility
A. False
C. Volume, variety, variation, venue
B. True D. Volume, vision, visibility, venue
NARAYAN CHANGDER
2536. What does MRP Stands for? 2542. Which type of sustainability occurs
A. Master Requirement Planning when businesses operate responsibly as
employers by encouraging and fostering
B. Manufacturing Resource Planning
equal opportunities in the workplace?
C. Materials Repair Planning
A. Ecological
D. Materials Requirement Planning B. Social
2537. Inventories exist because: C. Economic
A. It is cheaper to produce in bulk. D. Paternal
Explanation:Social sustainability happens
B. Cos of inventory is low
when businesses operate responsibly to-
C. There is a difference in timing of sup- wards their employees by promoting or
ply and demand encouraing and fostering equal opportuni-
D. Inventory does not become obsolete ties in the workplace.
2538. It refers to the practice of adding many 2543. Operations management cuts across ev-
perks to a single fee. ery sector and industry.
A. Unbundling A. True
B. False
B. Bundling
C. Bundle 2544. What is the name given to improving ex-
isting products/services/processes
A. Product innovation/development
2539. what does “o” means in OSHC B. Inverse innovation
A. Outstanding C. Process innovation/development
B. Outcast D. Product innovation
C. Observe 2545. This is the application of different man-
D. Out agement functions to the personnel en-
gaged by the enterprise to opimize their
2540. Where was Total Quality Management contribution toward the realization of cor-
first developed? porate activities
A. USA A. Quality Control
B. UK B. Materials Management
C. Japan C. Work Measurement
D. Korea D. Personnel Management

2546. What is the objective of human resource C. the capital of a business which is used
strategy? in its day-to-day trading operations

A. to manage the plant layout of an orga- D. an amount that has to be paid or spent
nization to buy or obtain something
B. to manage labor schedule to execute 2551. is a forecasting technique using a
the task given weighted moving average, where past ob-
C. to manage labor and design jobs so servations are adjusted according to their
people are effectively and efficiently uti- age.
lized A. Exponential smoothing
D. to manage facility layout in the organi- B. Time series
zations so workers can work efficiently C. Baseline method
2547. It involves overseeing the grade or D. trend
freshness of goods, their strength or work- 2552. Operations management serves as the
ability, the workmanship or design, harm- engine room of the organization, planning
lessness, adherence to federal or industry and organizing manufacturing or services.
standards, and many other factors.
A. TRUE
A. INVENTORY CONTROL
B. FALSE
B. QUALITY CONTROL
2553. Outsourcing refers to
2548. This dimension characterizes how a ser- A. Hiring another company to perform a
vice acts upon an object to achieve a result. task that is currently performed internally
A. nature B. Getting work done in different country
B. service nature C. Transferring jobs to other countries
C. services atmosphere D. All the above
D. none of the above 2554. Which of these decision making areas
are likely to be the job of a production man-
2549. In an organization there may not be a ager? (Pick the two answers that apply)
formal PPC department if
A. Decisions about inventory manage-
A. Work is highly repetitive in nature ment
B. Planning activities are performed by B. Setting the price of the product
the line staff C. Maintaining books of accounts for the
C. Number of workmen is not very large company
D. All of the above D. Quality control
2550. What is working capital? 2555. The process of breaking through to un-
precedented levels of performance.
A. wealth in the form of money or other
A. Quality Planning
assets owned by a person or organization
B. Quality Control
B. the goods or merchandise kept on the
premises of a shop or warehouse and C. Quality Improvement
available for sale or distribution D. none of above

2556. What is the main disadvantage of job B. Emergency repairs

production? C. Modifications and improvements
A. High fixed costs
D. All of the above
B. Low quality products
2562. What is:the quanity that must be pro-
C. Low skilled workforce
duced/sold for total revenue to equal to-
D. High unit costs tal costs
2557. The creation of goods and services
NARAYAN CHANGDER
A. Production B. Diseconomies of Scale
B. Operations Management C. Break-Even Level of Output
C. Operations D. Break-Even Charts
D. none of above
2563. If 1 million passengers pass through the
2558. What is:where production is done by Jacksonville Airport with cheked baggage
machines but operated by people, e.g. each year, a successful Six sigma program
printing press. for baggage handling would result in how
A. Automation many passengers with misplaced luggage?
B. Mechanisation A. 3.4
C. Computer Aided Design (CAD) B. 6.0

D. Computer Aided Manufacture (CAM) C. 34
D. 2, 700
2559. One of the role in Marketing Depart-
ment is to deal with financial transactions E. 6 times the monthly standard deviation
such as profit and loss accounts. of passengers
A. Yes 2564. Waiting for the next production step,
B. No interruptions of production during shift
change.
2560. This is a philosophy-promulgated by
“quality gurus” such as W. Edwards A. Over production
Deming-that aggressively seeks to im- B. Motion
prove product quality by eliminating
C. Waiting
causes of product defects and making qual-
ity an all-encompassing organizational phi- D. Inventory
losophy.
2565. the use of flexible computer-aided pro-
A. Management Science
duction systems to produce items to
B. Total quality management(TQM) meet individual customer’s requirements
C. Supply chain management (SCM) at mass-production cost levels
D. none of above A. mass customisation
B. flow production
2561. Which of the following are activities of
corrective maintenance? C. batch production
A. Overhauling D. job production

2566. What is the purpose of Quality Function A. Lower labour costs

Deployment (QFD)? B. More stringent legislation

A. To determine customer desires and C. To be closer to customers
translate them into the target design
D. Shorter product lifecycles
B. To identify relationships between the
firm’s hows 2572. Productivity computed as a ratio of out-
C. To evaluate competing products based put to all organizational inputs.
on desirable technical attributes A. Multifactor productivity
D. To reduce complexity and improve B. Total productivity
functional aspects of the product C. Structure
2567. Productivity is important because it is D. Core competencies
one of method to reduced operating costs
2573. TQM philosophy Customer Focus
and increased revenue.
A. Goal is to identify and meet customer
A. True
needs
B. False
B. A philosophy of never-ending improve-
2568. Which maintenance method utilizes the ment
DMAIC process? C. Employees are expected to seek out,
A. Lean maintenance identify, and correct quality problems
B. Computer aided maintenance D. Ongoing employee training in the use
of quality tools
C. Preventive maintenance
D. Six sigma maintenance 2574. The 3 pillars of sustainability are:
A. Environment, climate change and tech-
2569. Primetime Incorporated is a retailer of
nology
sporting gear. It sells 500 pairs of a spe-
cific Nike sneaker each day. Nike, the sup- B. economic, environment and society
plier, takes a week (7 days) to deliver the C. economic, climate change and society
order. For what quantity should the inven-
D. environmental, social and financial
tory manager place his/her next order?
A. 72 units 2575. Macro factors of Material Management
is
B. 350 units
A. Lead Time
C. 3, 000 units
B. Inventory Levels
D. 3, 500 units
C. Government Policy
2570. Advisory boards are not compensated D. Communication
for their services to your business.
A. True 2576. These are the types of layout EXCEPT
B. False A. Line balancing layout
B. Work-cell layout
2571. Decisions to relocate production over-
seas to countries like China are usually be- C. Fixed-position layout
cause of: D. Process-oriented layout

2577. All planned stoppages under the normal 2583. Simple to use, easily understandable,
working timeframe are taken into consid- and can be a standard for accuracy.
eration. This can also beknown as A. Exponential smoothing method
A. available capacity B. Simple moving average
B. effective capacity C. Naive
C. design capacity
D. Regression
D. actual capacity
NARAYAN CHANGDER
2584. Part finished goods that have yet to be
2578. Are the least expensive andleast com- completed and are not ready to be sold to
plex service evaluation technique. the consumer yet
A. Training Managers A. Work in production
B. Guest Input is Important Source of B. Work in progress
Data
C. Work in productivity
C. Comment Cards
D. Work in profit
D. SERVQUAL
2585. sustainability is also known as en-
2579. Which stage in product or service de- vironmental sustainability, this refers to
sign relates to creating a simulated prod- sustainable use of the planet’s natural
uct/service, testing the market and final- resources so that the current level of
ising the design? consumption does not jeopardise the re-
A. Preliminary Design sources available for future generations.
B. The screening process A. Economic
C. Evaluation and Improvement B. Social
D. Prototype and final design C. Ecological
2580. Increasing payroll can improve a busi- D. none of above
ness’s cash flow.
2586. decisions are of strategic importance
A. true and have long-term significance for the or-
B. false ganization.
A. Operating Decision
2581. Self-directed team consists of a group
of employees with responsibilities for an B. Strategic Decision
entire process or product. C. Control Decision
A. True D. none of above
B. False
2587. the use of computer programs to con-
2582. In the basic transformation model which trol machine tools and related machinery
of the following is not a common input? in manufacturing of products.
A. Customers A. CAD
B. Unprocessed material B. CAM
C. The business environment C. advanced technology
D. Human resources D. automation

2588. The process of meeting quality goals 2593. Which of the following is the Qualitative
during operation method for forecasting?

A. Quality Planning A. Naive
B. Quality Control B. Consumer Marketing
C. Quality Improvement C. Regression
D. none of above D. Correlation
2589. Managers oversee daily operations; 2594. * Minimizing blocked capitals in invento-
owners make final decisions ries * Reducing surplus stocks * Ensuring
proper control over inventory:these are
A. Leadership the
B. Staff A. Types of inventory
C. Line-and-Staff Organization B. Reorder Point, Safety Stock and Lead
D. Consulting Syyle Time
C. Goals of Inventory Control
2590. Factors which influence ‘Regional Deci-
sion’ are:- D. Objectives of Inventory Control
A. Market Proximity, Proximity to Raw 2595. It is important to understand how to
Materials, Availability of Utilities, Labor manage both service and manufacturing
Supply and Unionization operations. However, is of especially
B. Market Proximity, Tax, Labor Supply high importance.
and Unionization A. service operations
C. Market Proximity, Tax, Availability of B. manufacturing operations
Utilities, Labor Supply C. managing serviceoperations
D. Availability of Utilities, Labor Supply, D. none of above
Law, Tax
2596. This term involves using computerised
2591. Output is can be said as part of control systems to simulate human intelligence
mechanism for operations system. and mimic human behaviour.
A. True A. Artificial intelligence
B. False B. Robotics
C. Online services
2592. is a method of checking manufacturing
operations to determine how well these D. Smart machines
operations adhere to blueprint specifica-
2597. What is lean production?
tions on dimensions, tolerances, surface
finish and the life, as well as processing, A. the output measured against the in-
testing, and manufacturing. puts used to create it.
A. Quality Control B. the inventory held to deal with uncer-
tainty in customer demand and deliveries
B. Quality Control in Production
of supplies.
C. Reliability C. refers to techniques used by busi-
D. Quality Checking nesses to cut down on waste and increase

efficiency, often by reducing product de- 2602. Which of these vehicles is NOT on the
velopment time. efficient frontier?
D. Japanese term that means ‘continuous A. A
improvement through the elimination of
waste.’ B. B
2598. If 50 workers produce 800 cars, what C. C

is the labour productivity?
D. D
NARAYAN CHANGDER
A. 16 cars
B. 20 cars 2603. DOES NOT influence ‘Local Decision’
C. Cannot be calculated A. TaxesEconomic IncentivesAttractive-
D. none of above ness of the CommunityCompatible Indus-
tryTransportation NetworkGovernment
2599. What is the term for the original total
Policy & AttitudeEnvironmental Regula-
budget for a project?
tions
A. Cost Performance Index
B. Market Proximity Economic Incen-
B. Budget at Completion
tivesAttractiveness of the Community-
C. Schedule Performance Index Compatible IndustryTransportation Net-
D. Estimate at Completion workGovernment Policy & AttitudeEnvi-
ronmental Regulations
2600. How is average cost per unit calculated?
C. Market ProximityTaxesEconomic In-
A. Also known as overhead costs, are
centivesAttractiveness of the Communi-
tyCompatible IndustryTransportation Net-
workGovernment Policy & AttitudeEnvi-
B. costs changed directly with the num- ronmental Regulations
ber of items produced or sold
D. Raw Material CostsTaxesEconomic In-
C. refer to the sum of fixed and variable
centivesAttractiveness of the Communi-
costs in production.
tyCompatible IndustryTransportation Net-
D. calculated by dividing total cost of pro- workGovernment Policy & AttitudeEnvi-
duction by total output. ronmental Regulations
2601. Which of the following is not usually
considered a characteristic of a fixed- 2604. Which one of the following is not a typ-
position layout? ical question dealt with by an operations
managers?
A. Transforming resources often move to
the work. A. How much capacity will be needed in
B. The recipient of the process or the the months ahead?
work being undertaken remain in the B. What is a satisfactory location for a
same place. new facility?
C. Fixed-position layouts are able to offer
high flexibility. C. Which products/services should be of-
fered?
D. Transforming resources are grouped
in cells. D. How to motivate employees?

2605. Waste created through unevenness in 2611. This key element refers to the finished
workloads good or service available for sale:

A. Mura A. Input
B. Time
B. Output
C. Later
D. Dura C. Product
2606. Capacity is always constrained by the D. Process

lowest producing part ofthe process.
A. TRUE 2612. All of the following are four types of
utilities EXCEPT:
B. FALSE
A. Place
2607. Part of every process of Operations
Management. B. Possession
A. Variance
C. Form
B. Managed passion
D. Service
C. Accountability
D. none of above
2613. What would be the forecasted sales for
2608. The following, except one are the pillars Week 5, using a naive forecast?
of sustainability
A. Environment
B. Economic
C. Social
D. Ethics
2609. Inventory costing methods place pri-
mary reliance on assumptions about the A. 2800
flow of
B. 4500
A. Goods
B. Costs C. 3600
C. Resale Prices D. 5000
D. Values
2610. is a broad concept that focuses on the 2614. The techonology should be based on
entire quality systemincluding suppliers applicability, appropriatenes, producibility
and ultimate consumers of the product or and low cost.
service. A. Positioning of the production system
B. Capacity and location factors
B. Quality Control
C. Total Quality Management C. Work force and job design
D. Operations D. Product and process technology

2615. Operations management is part of a pro- C. Products can be produced 24 hours a

duction system that can be described in day without the need for lunch breaks
the following manner:Organization:inputs D. Any product can be made, without as-
→ processes → outputs.Which one of the sembly by a human
following correctly describes a production
system? 2619. Which of these pairs are ways to im-
A. Airline:pilots→ planes→ transporta- prove quality?
tion A. Researching and Trialling
NARAYAN CHANGDER
B. Bank:tellers→ computer equipment→ B. Researching and Marketing
deposits
C. Copying and Marketing
C. Furniture manufacturer:wood→
D. Copying and Researching
sanding→ chair
D. Telephone company:satellites→ 2620. Maintenance on a daily or regular ba-
cables→ communication sis, designed to maintain the condition of
equipment and prevent a failure.
2616. ISO 26000
A. Breakdown maintenance
A. A set of international Standards devel- B. Preventive maintenance
oped to help organizations evaluate and
address their social responsibility 2621. Value, The value stream, flow, pull and
B. Control trade into the then0emerging perfection are all principles of
European Economic Community (EEC) A. Total quality management
C. The standard for certification of a B. Waste minimisation
C. Lean management
quality management systems to meet cus- D. none of above
tomer requirements
2622. In this chapter, quality is defined as:
D. Provides guidelines for establishing a
quality management system. It focuses A. The degree of excellence at an acept-
not only on meeting customer require- able Price and the control of variability at
ments but also on improving performance an aceptable cost
B. How well a product fits patterns of con-
2617. referred to as upper class or premier ser- sumer preferences
vice having the highest class of service on
C. The totality of features and character-
the aircraft.
istics of a product or service that bears
A. First Class on its ability to satisfy stated or implied
B. Business Class needs.
C. Premium Economy Class D. Being imposible to define, but you
know what it is.
D. Economy Class
2623. Which of the following is an example of
2618. What are the advantages of CAM? varying augmented features in goods dif-
A. Human error is eliminated ferentiation?
B. The machinery is cheap A. Offering customization options

B. Changing the level of expertise 2628. One example of flexibility is , which

C. Using lower quality materials is the ability of a firm to produce highly
customized goods and services and to do

D. Decreasing the time spent on the ser- it at the high volumes of mass production.
vice
A. MASS PRODUCTION
2624. A sole trader cleaning business pur- B. MASS CUSTOMIZATION
chases generic products to lower costs and
C. MASS MEDIA
be price competitive. This is an example of
which strategy? D. MASS COMMUNICATION
A. Cost leadership 2629. Damaged, lost or stolen inventories =?
B. Economies of scale A. Growth costs
C. Inventory management B. Shrivel costs
D. Goods and service differentiation C. Shrinkage costs
2625. Which of the following is an example of D. Opportunity costs
quality control?
2630. are one of the potentialoutcomes of a
A. Inspecting finished products to ensure workplace disciplinary.
they meet a set standard
B. Conducting surveys to gather cus-
tomer feedback B. Issuing Written Reprimand
C. Training employees to use new equip- C. Implementing Performance Improve-

ment ment Plans
D. Encouraging employees to suggest D. Issuing a Written Suspension

process improvements E. Terminating an Employee
2626. Series of consecutive steps at which 2631. This is a form of legal protection ap-
value is added to create a finished prod- plied to written material and other artistic
uct. forms of media.
A. Value A. Patent
B. Value added B. Trademark
C. Value Chain C. Copyright
D. None of the given answer D. none of above
2627. How can a business improve labour pro- 2632. Genichi TaguchiChoose Two:
ductivity?
A. -Focused on product design quality
A. Less automation
B. Developed Taguchi Loss function
B. Less investment on capital
C. -Developed Cause-and-effect dia-
C. Training their employees grams
D. Reduce output and hire more employ- D. Identified concept of “internal cus-
ees tomer”

2633. This component of services is an obvious 2639. When the core function of a business is
characteristic of the process or outcome. producing overseas. This involves produc-
ing components, sub-assemblies, assem-
A. Implicit services
blies, and finished products
B. explicit services
A. Global Sourcing of Inputs
C. non-guaranteed services
B. Global manufacturing
D. none of the above C. Global outsourcing
NARAYAN CHANGDER
2634. True/False:Chain of Command is an offi- D. Supply Chain Management
cial channels that staff are not expected to
follow when a decisions has been made. 2640. Which framework is used to implement
agile software development with real-
A. TRUE time communication?
B. FALSE A. Scrum framework
2635. Which of the given answer is the char- B. Kanban framework

acteristics of the services? C. Hybrid framework
A. often knowledge base D. Lean framework
B. production usually separate from con- 2641. “It is not enough to just do your best or
sumption work hard. You must know what to work
C. can be inventoried on.”
D. low customer interaction A. Joseph M. Juran

B. Peter Jones
2636. Which processes turn economic re-
sources into goods and services? C. Philip B. Crosby
D. William Edwards Deming
A. distribution
B. marketing 2642. Is a Professional service
C. promotion A. Schools
D. production B. Accountants
C. Airlines
2637. In Quality Culture, efforts are focused
on maximizing short-term profits by elim- D. Hospitals
inating essential functions, activities, and 2643. Are the foundation of the philosophy.
personnel.
A. Techniques
A. True
B. Principles
B. False
C. Knowledge
2638. Forecast should be complex so that only D. Practices
the organization will understand it.
2644. are decision made by executives of
A. True
the company where personal factors are
B. False considered before success of location, for

example, movement of personal establish- 2649. MRP stands for

ment from hometown to new location fa-
A. Master Resources Production
cility.

A. BEHAVIORAL ERRORS B. Materials Requirements Planning
B. NON BEHAVIORAL ERRORS C. Management Reaction Planning
C. NATURAL ERRORS D. Manufacturing Resource Planning
D. PLANNED ERRORS
2650. The HOUSEKEEPING Department is re-
2645. Functions and roles in operations man- sponsible for the care of grounds and
agement. swimming pools, heavy cleaning and
A. Planning and implementing manufac- waste management of the hotel.
turing plants A. True
B. Managing projects
B. False
C. Both of these
D. none of above 2651. Which one of the following is not a type
of inventory?
2646. What is a fixed cost?
A. Raw materials
A. 1. A cost that varies with the level of
production B. Flow production
B. 2. A cost that remains constant regard- C. Work in progress
less of the level of production
D. Finished goods
C. 3. A cost that is incurred only when a
product is sold 2652. What is a tip for successful project man-
D. 4. A cost that is not associated with agement?
production A. Focus on daily tasks and activities
2647. Most operation produce a mixture of B. Implement strict control over project
both products and services which of the team members
following business is closest to producing
‘pure’ services C. Invest in the initiation and planning
stages
A. IT company
D. Rely solely on traditional project man-
B. Counselor /therapist
agement approaches
C. Steel company
D. A restaurant 2653. This outlines standards for a systematic
and detailed monitoring of actual output or
2648. Technically speaking, Six Sigma involves performance against targets and set stan-
driving towards how many defective parts dards.
per million?
A. job standards
A. 6200
B. 1 B. job breakdown
C. 3.4 C. monitoring checklist

D. 230 D. job description

2654. Marketing also can supply information 2659. Resources needed to produce products
on consumer preferences so that design
will know the kinds of products and fea-
tures needed; operations can supply infor-
mation about capacities and judge the man-
ufacturability of designs
A. TRUE
B. FALSE
NARAYAN CHANGDER
2655. What is defined as the people, parts, A. Factors of production
and processes involved in getting products B. Human resources
or services from suppliers, on through to
manufacturing and production, and then on C. Capital factors
to customers? D. Transformation resources
A. Efficiency chain 2660. World trade growth is increasing every
B. Economic chain year except during the pandemic when all
businesses are affected
C. Supply chain
A. True
B. False
2656. Being close to the facilities such as ac-
cessibility to transportation is one of the 2661. Which one of these factors is most likely
crucial factors in selecting a location. to influence the location of an online pub-
lisher?
A. True
A. Availability of raw material suppliers
B. False
B. Proximity to customers
2657. Target Cost starts with C. Capacity of factory and warehouse
A. Target Price space
B. Raw material Cost D. Quality of communication tec
C. Labour Cost 2662. What is the role of finance in a business
D. Product design cost organization?
A. Providing funds for business opera-
2658. The aircraft is undoubtedly a remark-
tions
able feat of engineering. For the past cen-
tury, the components of an aircraft have B. Identifying customer needs and wants
evolved to make flights more efficient, C. Dealing with workforce issues
safer, and faster.
D. Producing goods or providing services
A. First statement is TRUE. Second state-
ment is FALSE. 2663. Benefits of quality, EXCEPT
B. First statement is FALSE. Second state- A. Remain competitive
ment is TRUE. B. Acquire profitability
C. Both statement are TRUE. C. Increase operational costs
D. Both statement are FALSE. D. Produce high quality of products

2664. Layout strategy is: A. Quality is defined as a measure of how

A. concerned with the things a business close a product or service conforms to
standards and specifications.

owns.
B. concerned with a location and where B. Quality is also defined as a product’s
the business is based. fitness for use; its success in offering fea-
tures that consumers’ want.
C. concerned with a particular site, all the
various pieces of equipment which com- C. Quality is simply innate excellence (in
prise the operations at that site will be lo- appearance, style, performance, price,
cated or how they will be laid out. delivery, or after-sales service).
D. a business structure. D. Higher quality is related to the higher
cost of production.
2665. Appraisal costs are those costs incurred
when trying to stop problems, failures and 2670. What is:graphs which show how costs
errors from occurring. and revenues of a business change with
A. True sales. They also show the break-even
level of output
B. False
2666. is the capacity we get under real life
working conditions. B. Diseconomies of Scale
A. Designed capacity C. Break-Even Level of Output
B. Effective capacity D. Break-Even Charts
C. Overall capacity
2671. Choudhury Ltd has fixed costs of $20,
D. Available capacity 000. It costs them $4.00 in variable costs
2667. A cake manufacturer buys more sugar to produce one item. They produce 30,
as its production output increases. This en- 000 items. Calculate Choudhury Ltd.’s to-
ables it to buy the sugar at a lower price tal costs:
per kilogram. What is this an example of? A. $140, 000
A. Logistics B. $150, 000
B. Just-in-time
C. $160, 000
C. Global sourcing
D. $170, 000
D. Economies of scale
2672. Which function of operations manage-
2668. The process cycle time refers to:
ment focuses on continually seeking ways
A. the time between the inputs entering to improve processes and enhance perfor-
a process and when those inputs exit the mance?
process.
A. Planning
B. the amount between entering a pro-
cess and exiting the process. B. Organizing
C. Controlling
2669. Which of the following statements
about quality is incorrect? D. Improving

2673. Are one of theeffective forms of disci- A. a Fixed Labor Hours

pline that you can provide a detailed plan
B. Fixed Working Hours
that identifies areas for improvement.
C. Shift Scheduling
B. Issuing a Written Reprimand D. none of above
C. Implementing Performance Improve- 2678. Products that require a continuous or
ment Plans repetitive production process use the
NARAYAN CHANGDER
D. Issuing a Written Suspension A. hybrid layout
B. process layout
2674. Which of the following does NOT sup- C. product layout
port the retail layoutobjective of maximiz-
ing customer exposure to products? D. fixed position layout
A. Locate high-draw items around the pe- 2679. True or False:the purpose of a manufac-
riphery of the store. turing or a service business is to provide
B. Use end-aisle locations. utility to customers.
C. Maximize exposure to expensive items. A. True
B. False
D. none of above
2680. Monitoring the external environment
2675. This term which means “continuous im-
for changes and trends to determine busi-
provement” is attributed to Toyota produc-
ness opportunities and threats.
tion methods.
A. Just-in-time A. Productivity
B. Just-in-case B. Environmental scanning
C. Kaizen C. Time
D. Quality revolution D. Order winners
2676. It costs Keyworth Ltd $0.50 in variable 2681. Which is not the activity of post pur-
costs to make one item. Their output is chase system?
90, 000. Keyworth Ltd has fixed costs
such as rent and insurance which total $35, A. Follow up Procedure
000 Calculate Keyworth Ltd.’s total vari- B. Receipt
able costs:
C. Checking Invoice
A. $180, 000
D. Forward Buying
B. $80, 000
C. $35, 000 2682. Marketing, design and production must
D. $45, 000 work closely together to successfully im-
plement design changes and to develop
2677. (a) These are the minimum staff level as and produce new products
in the least number of employees, or pay-
A. TRUE
roll dollars, required operating a facility or
department. B. FALSE

2683. This is classifying into job levels based A. The Wagner-Whitin algorithm
on the clustering of total points. B. economic order quantity

A. development of factors C. lot-for-lot
B. wage adjustment D. part period balancing
C. rating and classification of positions
2689. (a) It refers to the willingness of the ser-
D. job analysis vice personnel to help customers and pro-
vide prompt, timely service.
2684. Process allowances is extra time given
to employees because of the labour regu- A. a Responsiveness
lations or trade union demands. B. Responsive
A. Yes 2690. Which one of these is most related to
B. No mass customization?
A. Standardization
2685. includes all of the activities involved
in obtaining, training, and compensating B. Modular Design
the employees of a business. C. Sequential Design
A. Staffing D. D. Foam Design
B. recruitment 2691. when all other forms of discipline have
C. copyright notresulted in improvement, your final op-
D. resumes tionmay be to consider termination.
2686. Operations risk management includes
how many steps? B. Issuing a Written Reprimand
A. 3
ment Plans
B. 4
C. 5
D. 6
2692. this is a statements of desired outcome
2687. OM Sdn Bhd wants to assess its produc- (results) of work performed.
tivity by comparing the current year with A. job standards
the previous year’s performance. Here the
data for output:6, 500 wages:RM6000 B. job specifications
materials:RM3, 750 and Capital RM42, C. job breakdown
000. Calculate multi factor productivity D. job classifications
A. 0.135 units per Malaysian Ringgit
2693. The role of the leaders within the orga-
B. 0.14 units per Malaysian Ringgit nization is the fundamental element of sus-
C. 0.13 units per Malaysian Ringgit taining the progress of lean thinking
D. 0.1 unit per Malaysian Ringgit A. True
B. False
2688. A lot-sizing technique that generates
exactly what was required to meet the C. Maybe
plan is D. none of above

2694. what can inadvertently lead tp success 2699. When a company organizes its inven-
for both parties? tory based on its relative importance, it
A. reduce their total number of suppliers is using which type of system?
B. bananas A. Inventory importance system

B. Activity based costing analysis
C. Sophie Franks
C. Inventory importance analysis
D. Revision
D. Active based counting system
NARAYAN CHANGDER
2695. What are economies of scale?
2700. There are several types of industrial
A. factors that lead to a reduction in aver-
products, except
A. Materials and parts
erage costs as a business becomes too B. Capital items
large. C. Supplies and services
C. the level of sales at which total costs D. Convenient goods
2701. Which of the following chart types
D. the income generated from the sale of
would be used to monitor the average
goods or services during a specific period.
weight of the contents of a box of cereal?
2696. Who must businesses have good rela- A. x
tionships with? B. R-chart
A. suppliers C. p-chart
B. staff D. c-chart
C. consumers E. Non
D. Foti
2702. In a time series forecasting model, what
2697. Choose right answer from the follow- are the measures of forecast error?
ing: A. Standard error of the estimate
A. V2 is Pareto dominated by V1 B. Forecast error correlation coefficient
B. V4 is Pareto dominated by V2 C. Mean squared error
C. V2 is Pareto dominated by V4 D. Absolute average error percentage
D. V3 is Pareto dominated by V1 E. Mean squared error
2698. They supervise training staff, plan, and 2703. A system permitting the manufacture of
administer trainingseminars, and manage large quantities of identical goods using
conflictresolution, team building andem- repetitive actions by people or machines
ployee skill evaluations. is called:
A. Managing relations A. manufacturing.
B. Planning B. operations.
C. Training and Development C. mass production.
D. Evaluation and Management D. assembly line.

2704. Which of the following is NOT generally 2709. Plant, location, engineering economics,
thought of as part of the organizing func- plant layout, plant engineering and materi-
tion? als handling comprise this area of activity

A. grouping tasks into departments A. Production planning and control
B. assigning tasks B. Physical Facilities Management
C. allocating resources C. Process Planning
D. strategic planning D. Product planning
2705. Business is rated on which dimensions 2710. Which of the following sources of en-
A. Market attractiveness ergy is non-renewable?
B. Business strength A. Hydropower
C. both (A) and (B) B. Wind
D. none of the above C. Solar

D. Petroleum
2706. Below are time horizon for forecasting
EXEPT: 2711. A process of measuring the performance
A. Short Range of a company’s products, services, or pro-
cesses against those of other businesses
B. Middle Range that are considered “the best” in class
C. Time Range A. benchmarking
D. Long Range B. total quality management
2707. A sole-trader cleaning business pur- C. six sigma
chases generic products to lower costs and D. kaizen
be price competitive. This is an example of
which strategy? 2712. Which of the following is not one of the
A. Cost leadership Ten Critical Decisions of Operations Man-
agement?
B. Economies of scale
A. layout strategy
C. Inventory management
B. maintenance
D. Goods and service differentiation
C. process and capacity design
2708. Integrated planning and infrastructure,
D. mass customization
Price stability, Tax base, Licensing, Small
scale industries promotion, Import substi- E. supply chain management
tution
2713. Under no circumstances should the au-
A. Production
thoritative management style be used in
B. Government Policy today’s modern workplace.
C. Resource endowment A. true
D. Financing B. false

2714. What is:the continuous improvement of C. If CP and CPk score < 1 means the
products and processes by focusing on product quality is excellent
quality at each stage of production D. none of above
A. Job Production
2719. The approach of QUALITY CONTROL to
B. Batch Production develop methods to track and monitor
C. Flow Production quality considers elements, competence
and soft elements as factors
NARAYAN CHANGDER
A. True
2715. Which would not be a reason to imple- B. False
ment Technological Developments in Oper-
ations Management? 2720. Kaizen means
A. Reach more customers A. Continuous interaction
B. Use less labour B. Continuous meetings
C. Increase the costs in production C. Continuous improvement
D. Increase the quality of the goods pro- D. Continuous communication
duced 2721. What is the process of achieving goals
2716. This type of inventory is classed as by establishing operating procedures that
goods that have entered the transforma- make effective use of people and other re-
tion process but have not yet emerged sources?
from it. A. management
A. Buffer Stock B. implementation
B. Pipeline inventory C. controlling
C. Finished goods inventory D. investing
D. Work in progress inventory 2722. Some of the Determinants of Service
E. Anticipation inventory Quality are all except which of the follow-
ing:
2717. Below are the factors affecting the A. Competence
transformation process EXCEPT:
B. Security
A. Capacity
C. Reliability
B. Efficiency D. Service Delivery
C. Planning
2723. A business reported the follow-
D. Flexibility ing:Net sales:$300, 000Cost of goods
sold:$210, 000Operating expenses:$40,
2718. To assess the quality, we can calculate
000Taxes:$3, 500 Find gross profit for
CP and CPk. What is CP and CPk
the business.
A. CPk is applied when Process mean
A. $90, 000
was not exactly centered on the target
value. B. $190, 000
B. CP and CPk is similar for any certain C. $40, 000
product D. $35, 600

2724. What does CAD stand for? 2729. What is the focus of the lean framework
in agile management?
A. Code and Design

A. Maximizing the number of features in
B. Computer Aided Design
the final product
C. Create and Design B. Maximizing customer value with fewer
D. Craft and Design resources and zero waste
C. Maximizing employee workload for
2725. This is a form of legal protection higher productivity
for product inventions or production pro-
cesses. Protects an idea. D. Maximizing profit at the expense of
customer satisfaction
A. Patents
2730. A store that has very limited inventory
B. Trademarks
commonly uses what inventory method?
C. Copyrights A. perpetual
D. none of above B. stock turnover
2726. Operations are the process of changing C. periodic
input into output D. point-of-sale
A. TRUE 2731. Which one is not Plant Layout
B. FALSE A. Product Layout
2727. What does Kaizen mean? B. Process Layout
A. Change for the best C. Intermitted Layout

D. Project Layout
B. Change for the better
C. Change for the worse 2732. Which of the following activities is not
a direct responsibility of operations man-
D. No change at all agement?
2728. is the ratio of earned value to ac- A. Developing an operations strategy for
tual cost. It can be used to estimate the the operation
projected cost to complete the project. B. Planning and controlling the opera-
A. Budget at Completion tions
C. Determining the exact mix of product
B. Cost Variance
and services that customers will want
C. Cost Estimating
D. Designing the operations products,
D. Cost Performance Index services and process

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PRACTICE BOOK» NOT FOR SALE

DESIGNED FOR SURE SUCCESS

JAI SHREE RAM

PRACTICE BOOK» NOT FOR SALE

It is my deepest gratitude and warmest

To my mother JOYTSNA CHANGDER

who has been a constant source of Knowledge and in-

The aim of this publication is to sup-

PRACTICE BOOK» NOT FOR SALE

B. control chart B. Pareto Chart

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8. An example of CSR in outputs: 13. Product classification consists of

8. D 9. A 10. A 11. C 12. B 13. C 14. A 15. A 16. D 17. C 18. B

18. It is a generic term for techniques and 24. What is productivity?

A. Production intensive B. Reductions in prevention and ap-

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38. The stage pertains to logistics and fo-

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49. A company’s policy is to purchase from B. Reduce labor costs

48. A 49. A 50. A 51. B 52. C 53. B 54. D 55. B 56. B

B. Unique products consumers value A. Use of teams

65. It needs more capital requirement initially.

66. Suppliers Will go for ‘Rate Contract ‘ with

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69. Rollio Chocolate is a confectionery busi- 73. Kaoru IshikawaChoose Two:

B. Putouts 76. Key employees are responsible for all daily

B. growth. A. sales type.

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90. Which process technology allows for the D. Lunch break

A. Physical system D. none of above

B. System 99. Check the boxes below which includes the

A. Layout strategy B. time between receiving a customer or-

C. Customisation, flexibility, profit, qual- A. Just-in-case

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109. A likely advantage of operating a multi- C. Transformation

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117. He postulated 14 Points that convey im-

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D. none of above B. Employees are expected to seek out,

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B. influencing the behavior of organiza- C. 10, 000, 000

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A. Production and consumption are simul- A. Six Sigma

D. marketing economies B. Maximize utilization of space, equip-

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D. Short Cut B. Purchasing tomatoes

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169. Process Layouts B. Ensuring that products or services

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171. One technique to generate new service A. Resources

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179. It was the commitment of top Japanese D. none of above

182. Choose right answer from the following: B. Business Strategies

C. Oh 188. What is the definition of an efficient sup-

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