Operations Management MCQ

Kaizen means

• Continuous interaction
• Continuous meetings
• Continuous improvement
• Continuous communication

Lean production essentially means the elimination of

• Labour
• Time
• Waste
• Problems

Added value is when

• Inputs are transformed to create outputs that meet customer demand
• Inputs are made
• Inputs are transformed to create different outputs
• Inputs of a high quality have more value

Operational Objectives do not include

• Profitability
• Flexibility
• Lower unit cost
• Quality

If the Output is 10,000 units and the number of employees is 25 what is the Labour productivity per employee.

• 40
• 4000
• 400
• 40000

If the Unit cost is £30 and the output is £5,000 units, the fixed costs are £12,000 what are the variable costs?

• £28.00
• £27.00
• £27.60
• £27.50

Capacity Utilisation is 40% and present output is 600 units. What is the capacity?

• 1200
• 2400
• 240
• 1500

Which of the following is true

• Increasing Capacity utilisation will leave total costs unchanged
• Increasing Capacity utilisation will reduce average cost per unit
• Increasing Capacity utilisation will increase total costs
• Increasing Capacity utilisation will increase unit costs

The following are all likely to improve productivity except which one?

• Increased automation
• Increased training
• Improved staff motivation
• Increased staff meetings

The total cost of producing 3,000 units is £9,000. At a profit margin of 50%, what is the unit cost?

• £3 per unit
• £30 per unit
• £1.50 per unit
• £15 per unit