Section 4 Operations Management AS Level Chap 23-25 Quiz

Which of the following is a benefit of lean production?

• A) Increased labor costs
• B) High levels of stock
• C) Reduction in waste
• D) Longer production lead time

Which of the following best describes a labor-intensive method of production?

• A) High dependency on machines
• B) High costs associated with equipment
• C) A large proportion of costs go to labor
• D) Automated production lines

What is capacity utilization?

• A) The total amount of products a business can produce at any given time
• B) The percentage of a company's total output that is actually used
• C) The maximum output a company can produce without increasing resources
• D) The amount of capital invested in production

What is the primary goal of Just-in-Time (JIT) inventory management?

• A) Reduce waste by holding minimal inventory
• B) Maximize buffer stock levels
• C) Increase storage capacity
• D) Automate the production process

Intellectual capital in a business refers to

• A) Physical assets
• B) Knowledge, skills, and expertise of employees
• C) The building and machinery of the company
• D) The total financial value of all equipment owned

Which production method is best for highly customized products?

• A) Flow production
• B) Job production
• C) Batch production
• D) Mass production

What is a disadvantage of using CAD (Computer-Aided Design)?

• A) High employee motivation
• B) High cost of computer software
• C) Increased product development time
• D) Simplified production process

What is the impact of operating at 100% capacity utilization?

• A) Increased product quality
• B) Higher flexibility in production
• C) Limited ability to meet new customer demands or adjust to changes
• D) Reduced cost per unit produced

What is the main advantage of flow production?

• A) Ability to handle large-scale, identical products
• B) Flexible response to customer preferences
• C) High worker motivation
• D) Low initial setup costs

What is one risk associated with the mass customization approach to production?

• A) High levels of unsold inventory
• B) Limited flexibility in meeting customer demands
• C) High initial capital investment
• D) Limited use of technology