Operation Management HL

A product that serves its purpose in fulfilling a customers need or desire is known as

• Continuous improvement

• Fit for purpose

• Best practise benchmarking

• Quality management

Which benefit does not apply to lean production

• Higher standards of customer services

• Higher wastage level

• Improved customer relations

• Lower costs of production

Which of the following is not a method of lean production?

• Just-in-time production

• Kaizen

• Mass production

• Quality circles

An essential feature of total quality management is

• Andon

• Corporate social responsibility

• Low prices

• Zero defects

The use of traditional methods to inspect quality against required standards is known as

• Andon

• Benchmarking

• Kanban

• Quality control

Which of the following is not a type of stock for a business?

• Finished goods

• Ordinary shares

• Raw materials

• Work-in-progress

Drawbacks of a stock-out do not include

• Disgruntled customers

• Loss of sales

• Negative impact on cash flows

• Storage costs

Stockpiling means that a business

• Builds up excessive levels of inventory

• Operates at a level lower than its buffer stock

• Plans for a large safety margin

• Produces on a larger scale to benefit from cost savings

A drawback of holding too much stock is

• Inflexibility in production levels

• Share prices are likely to drop due to excess production

• Stocks are highly liquid assets

• Working capital is tied up in stockpiling

Efficiency in production is not usually measured by using which of the following measures?

• Labour turnover

• Output per machine hour

• Output per worker

• Unit costs of production