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WorksheetsOperations Management (Year 12: Business Studies NSW)
Total questions: 50
Worksheet time: 31mins
The following image represents the correct transformation process
TRUE
FALSE
Carly's cake shop customizes every order based on the consumer's wants. She also offers same-day delivery for orders placed before 11 am. Even though this can sometimes cost Carly more in terms of expenses, which strategic role of operations does this help to achieve?
Cost leadership
Revenue
Product/service differentiation
Flexibility
What does a critical path identify?
The lowest cost path to complete all tasks in a project
The highest cost path to complete all tasks in a project
The longest time required to complete all tasks in a project
The shortest time required to complete all tasks in a project
Which of the following includes two examples of transforming resources?
Materials and energy
Information and customers
Task design and technology
Human resources and facilities
A business is experiencing increasing costs for its stock over time. It is seeking to maximise its profit for the current financial period. Which strategy should it adopt to value its inventory?
First-in-first-out
Just-in-case
Just-in-time
Last-in-first-out
A business reduces product defects by using inspections in the production process. This is an example of quality
control
improvement
innovation
production
A sole-trader cleaning business purchases generic products to lower costs and be price competitive. This is an example of which strategy?
Cost leadership
Economies of scale
Inventory management
Goods and service differentiation
In which month would this business begin manufacturing the item?
January
February
March
April
Which tasks need to be completed prior to completing Task D?
A, B only
A, B, C only
A, B, E, F only
A, B, C, E, F only
An improvement in technology reduces the time between Task C and Task D to one day. What is the new length of the critical path?
3 days
5 days
6 days
10 days
The three P's associated with CSR (Corporate Social Responsibility) are:
Profit
Personnel
People
Promotion
Planet
A car manufacturer "Maudi Ltd” has announced that the first 6 services on a new car will be free of charge.
What type of operation process is this?
Output
Transformation
Input
Cost leadership reduction
Which of the following best illustrates timing within the transformation operations process?
Inventory totals
Computer-assisted design
Customer service
Critical path analysis
Which of the following would be considered inputs into a hair dressing salon?
Materials, human resources and customers
Location, knowledge and people
Management structure, equipment and raw materials
Materials, finances and people
Koka Kola has invested in new machinery which allows managers to quickly move between high and low volume output with ease. Which performance objective has Koka Kola satisfied?
Economies of scale
Dependability
Flexibility
Speed
Distinguish between legal compliance and ethical responsibility. (3 marks)
The advantage of standardising products:
Businesses can achieve economies of scale
Businesses can justify charging higher prices
Businesses products can be tailored specifically to their customer needs
Businesses require a wider range of inputs in the operations process
Explain how a business can successfully meet the performance objectives of quality and cost minimisation at the same time. (3 marks)
What is the benefit of leading-edge technology?
Creates more waste
Helps businesses operate more efficiently
More expensive than established technology
Helps businesses create products similar to previous products
A manufacturing business is a cost leader in their industry. Which combination of features of the transformation process are they most likely to demonstrate?
Low volume, low variety
High volume, low variety
Low volume, high variety
High volume, high variety
A mobile phone manufacturer decides to globally source inputs that they had previously produced themselves. Which of the following shows possible negative effects of this decision?
Simplified logistics and delays in the supply chain
Delays in the supply chain and increased transport costs
Increased transport costs and reduced access to specialist suppliers
Reduced access to specialist suppliers and a decrease in logistics costs
A manager at a fast-food business wants to change the operations process in response to the influence of corporate social responsibility. Which action would achieve this objective?
Providing cash donations to a local hospital
Increasing the visibility of the cooking process
Offering a wider variety of healthy options on their menu
Ensuring that injured workers receive access to compensation payments
A car manufacturer’s marketing manager suggests to the operations manager that they increase the warranty period from 3 to 5 years in order to increase market share. The operations manager would agree to this suggestion if
gearing has reduced.
it provided an incentive to increase production speed.
current quality management strategies could support it
it provided sales staff the opportunity to increase sales commissions.
The main advantage of economies of scale is that a business can achieve
economic objectives
industry benchmarks.
lower per unit input costs.
simplified supply chain management.
What is the most likely reason for an Australian clothing business choosing to manufacture locally?
To achieve cost leadership
To maintain quality control
To focus on other key business functions
To take advantage of lower overseas wages
A manager is concerned about ongoing theft and the cost of storing raw materials. Which inventory management strategy would best address the manager’s concerns?
Just-in-time
Warehousing
Last-in-first-out
First-in-first-out
In order to achieve best practice, a mobile phone company examines global trends in phone technology before designing and producing their phones. What operations strategy is this business using?
Standardisation
Global sourcing
Scanning and learning
Inventory management
A sandwich shop bakes a variety of breads throughout the day. Customers select th choice of bread and filling(s) and sandwiches are then made to order. Which pair of performance objectives would have influenced the development of t approach?
Cost and efficiency
Efficiency and quality
Cost and customisation
Quality and customisation
A business reduces product defects by using inspections in the production process. This is an example of quality
control.
improvement.
innovation.
production.
A sole trader cleaning business purchases generic products to lower costs and be price competitive. This is an example of which strategy?
Cost leadership
Economies of scale
Inventory management
Goods and service differentiation
A cake manufacturer buys more sugar as its production output increases. This enables it to buy the sugar at a lower price per kilogram. What is this an example of?
Logistics
Just-in-time
Global sourcing
Economies of scale
A soup manufacturer finds it difficult to cope with the increase in demand for soup in winter. Which performance objective could assist this business to meet the demand?
Cost
Customisation
Dependability
Flexibility
Which of the following lists three examples of transformed resources?
Customers, information, materials
Facilities, information, technology
Customers, human resources, materials
Facilities, human resources, technology
Which operations process uses a Gantt chart?
Customisation
Input
Output
Transformation
A global business has adopted a strategy which aims to lower the average cost of its product by increasing output. What is this strategy called?
Outsourcing
Global pricing
Global sourcing
Economies of scale
Which performance objective measures how well a product meets the prescribed design specifications?
Cost
Flexibility
Quality
Speed
Which of the following is the best method for managing the stock of fresh milk in a supermarket?
Just‑in‑time
First‑in‑last‑out
Last‑in‑first‑out
First‑in‑first‑out
A business wants to minimise the volume of its waste. Which performance objective is the business trying to achieve?
Cost
Customisation
Flexibility
Speed
Which of the following are all examples of operations performance objectives?
Choice, flexibility, profit, speed
Cost, dependability, quality, speed
Customisation, flexibility, profit, quality
Choice, customisation, dependability, profit
A car assembly plant had to shut down operations for a day because tyres had not been delivered. What inventory management strategy at the car assembly plant may have caused this situation?
Just-in-case
Just-in-time
First-in-first-out
Last-in-first-out
What is the most likely result of a business achieving economies of scale?
Greater flexibility
Higher sales price per unit
Greater efficiencies in production
Higher average costs of production
What does this Gantt chart show?
Selection and training of staff will begin in May.
The shop will be open for business at the end of April.
Stock purchases and advertising will be done simultaneously.
Some stock will be purchased before the shop is completely refitted.
A company’s policy is to purchase from lowestcost suppliers regardless of their location. What is this policy an example of?
Global sourcing
Economies of scale
Global branding
Research and development
What does a critical path identify?
The lowest cost path to complete all tasks in a project
The highest cost path to complete all tasks in a project
The longest time required to complete all tasks in a project
The shortest time required to complete all tasks in a project
Which of the following combinations would result in the lowest production cost per unit?
Limited customer contact, limited product variety and low volume
Limited customer contact, limited product variety and high volume
Extensive customer contact, extensive product variety and low volume
Extensive customer contact, extensive product variety and high volume
A business is experiencing increasing costs for its stock over time. It is seeking to maximise its profit for the current financial period. Which strategy should it adopt to value its inventory?
First-in-first out
Just-in-case
Just-in-time
Last-in-first out
A factory manager is deciding the best order in which to complete tasks. Which operations process is being carried out?
Monitoring
Scheduling
Sequencing
Task design
Which of the following is the correct sequence for an operations process?
Facilities – controls – waste
Materials – design – product
Information – services – improvement
Human resources – planning – customers
In winter, the number of beach lifeguards employed by a local council is reduced. What has influenced the transformation process in this situation?
Variation in demand
Variation in visibility
Variety
Volume
What is the minimum number of days needed to complete the project?
10
12
17
33
