Operations Management Midterm Examination (50 Points)

Which of the following best defines Operations Management (OM)?

• The financial planning and budgeting for a company's future.

• The process of selling goods and services to customers.

• The marketing and advertising of products to target consumers.

• The efficient control, organization, and management of resources to create goods and services.

Unlike project management, which has a defined beginning and end, operations management is characterized as a/an:

• Short-term task focused on immediate financial gains.

• Process that deals only with external stakeholders.

• Ongoing, cyclical process focused on the day-to-day functioning and improvement of an organization's core activities.

• Linear process with an absolute endpoint.

An operations manager at a Philippine shipping company uses data to predict the volume of goods to be transported and the necessary vessel capacity for the next quarter, considering external factors like holiday demand. This function is called:

• Strategy development.

• Quality control.

• Forecasting.

• Systems analysis.

Which of the following is NOT one of the four core competitive priorities that operations management directly supports?

• Cost.

• Quality.

• Flexibility.

A company aims for cost leadership by offering the most competitive prices. This is often achieved through an increased production volume leading to a lower cost per unit, a concept exemplified by a highly efficient San Miguel brewery achieving high-volume output. This concept is:

• Vertical integration.

• Mass customization.

• Economies of scale.

• Lean manufacturing.

The competitive priority that involves an organization's agility in adapting to dynamic market conditions, such as the ability of a garment manufacturer to quickly change product mix to respond to fast-fashion trends, is:

• Delivery.

• Quality.

• Cost.

• Flexibility.

A company simultaneously reduces operational costs and enhances product quality by eliminating waste and streamlining processes. This example demonstrates how competitive priorities:

• Always require a trade-off.

• Are mutually exclusive.

• Can often achieve synergies (win-win).

• Must be addressed sequentially.

Which pioneer introduced the concept of the division of labor in The Wealth of Nations (1776), emphasizing specialization to boost productivity?

• Frederick Winslow Taylor.

• Adam Smith.

• Eli Whitney.

• Henry Ford.

Which historical figure is credited with formalizing the scientific approach to industrial efficiency in 1911, advocating for time studies and the separation of planning from execution?

• Henry Ford.

• Eli Whitney.

• Henry Gantt.

• Frederick Winslow Taylor.

The 1990s adoption of Enterprise Resource Planning (ERP) systems, which provided real-time visibility and integrated functions like finance and supply chain, demonstrates an operational evolution toward:

• Reduced emphasis on data analysis.

• Enhanced overall operational efficiency and cross-departmental integration.

• Increased reliance on manual scheduling.

• Simplified supply chains.