Operations Management for Business Start-ups

The layout planning and the positioning of the machines must be designed to achieve efficient process flow, safe operations, effective and convenient process control, and easy supervision

• True
• False

Quality is defined as a measure of how close a product or service conforms to standards and specifications (Stevenson, 2009).

• True
• False

The main objective of a production schedule is to ensure that the quantity of production is enough to fulfil the expected market demand for the scheduled period, e.g. the next four months.

• True
• False

An Ishikawa diagram is not the same as a cause-and-effect diagram.

• True
• False

Which of the following statements about inventory management is incorrect?

• Adequate inventory helps entrepreneurs to meet market demand
• Inadequate inventory will cause disruption to operations and incur missed sales opportunities.
• Too much inventory means high inventory costs and reduced business profit.
• Inventory does not involve business capital.

Which of the following is directly and equally important to operation and marketing management?

• Product specification and product quality
• Process design
• Inventory and material requirement planning
• Maintenance

Which of the following statements about a process flow chart is incorrect?

• Based on the process flow chart, one can plan, design and specify the various requirements, such as material, equipment and manpower needed for each activity.
• The overall production capacity or throughput will have to be planned by making sure that all activities on the process flow chart has almost the same capacity, without any activity becoming a bottleneck to production.
• The space and layout plan can be planned based on the process flow chart.
• One can calculate the product unit cost from the process flow chart

Which of the following statements about quality is incorrect?

• Quality is defined as a measure of how close a product or service conforms to standards and specifications.
• Quality is also defined as a product’s fitness for use; its success in offering features that consumers’ want.
• Quality is simply innate excellence (in appearance, style, performance, price, delivery, or after-sales service).
• Higher quality is related to the higher cost of production.

A cause-and-effect diagram is also known as

• Ishikawa diagram
• Kawaishi diagram
• 5S diagram
• Just-in-time diagram