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Operations Management 100

Total questions: 94

Worksheet time: 48mins

Name
Class
Date
1.
Kaizen means
a)
Continuous interaction
b)
Continuous meetings
c)
Continuous improvement
d)
Continuous communication
2.
Lean production essentially means the elimination of
a)
Labour
b)
Time
c)
Waste
d)
Problems
3.
Added value is when
a)
Inputs are transformed to create outputs that meet customer demand
b)
Inputs are made
c)
Inputs are transformed to create different outputs
d)
Inputs of a high quality have more value
4.
Operational Objectives do not include
a)
Profitability
b)
Flexibility
c)
Lower unit cost
d)
Quality
5.
If the Output is 10,000 units and the number of employees is 25 what is the Labour productivity per employee.
a)
40
b)
4000
c)
400
d)
40000
6.
If the Unit cost is £30 and the output is £5,000 units, the fixed costs are £12,000 what are the variable costs?
a)
£28.00
b)
£27.00
c)
£27.60
d)
£27.50
7.
Capacity Utilisation is 40% and present output is 600 units. What is the capacity?
a)
1200
b)
2400
c)
240
d)
1500
8.
Which of the following is true
a)
Increasing Capacity utilisation will leave total costs unchanged
b)
Increasing Capacity utilisation will reduce average cost per unit
c)
Increasing Capacity utilisation will increase total costs
d)
Increasing Capacity utilisation will increase unit costs
9.
The following are all likely to improve productivity except which one?
a)
Increased automation
b)
Increased training
c)
Improved staff motivation
d)
Increased staff meetings
10.
The total cost of producing 3,000 units is £9,000. At a profit margin of 50%, what is the unit cost?
a)
£3 per unit
b)
£30 per unit
c)
£1.50 per unit
d)
£15 per unit
11.
Which of these is a common measure of labour productivity?
a)
Output scrap rate
b)
Profit margin
c)
Quality assurance level
d)
Output per worker per day
12.
Which of these pairs are ways to improve quality?
a)
Researching and Trialling
b)
Researching and Marketing
c)
Copying and Marketing
d)
Copying and Researching
13.
An advantage of using inspection in quality control is that
a)
Inspectors know what to look for
b)
Costs are increased because there is more waste
c)
It can prevent defective product from reaching customers
d)
It assures the reliability of the production process
14.
TQM systems emphasise the need for close links between all members of the
a)
workforce
b)
business community
c)
supply chain
d)
trade association
15.
An inventory lead time is
a)
The maximum level of inventory a Business can or wants to hold
b)
The average delay in handling customer orders
c)
the amount of time between placing an order with a supplier and receiving the stock
d)
the time taken to process outstanding sales orders
16.

Operations management _________________.

a)

involve in obtain funds and tracks the finance performing

b)

is the set of activities that transforming inputs into outputs

c)

creates demand and get customers

d)

involve the management of employee from recruitment to retirement

17.

Below are the reason why you study OM EXCEPT___________.

a)

OM is one of three major functions (marketing, finance, and operations) of any organization

b)

we want to understand what operations managers do

c)

OM include performing market research, producing a marketing plan, as well as strategically overseeing advertising and promotion

d)

we want (and need) to know how goods and services are produced

18.

Which of the given answer is the characteristics of the services?

a)

often knowledge base

b)

production usually separate from consumption

c)

can be inventoried

d)

low customer interaction

19.

Below are the roles of operations manager EXCEPT _________.

a)

planning on capacity, locations, products & services,make or buy, layout and do projects scheduling

b)

develop an incentive plan, issuance of work orders & job assignment.

c)

manage the inventory, control the quality, costs and productivity

d)

produce financial reports and develop direct investment activities

20.

All of the answer below is the characteristics of the goods EXCEPT __________________________.

a)

can be inventoried

b)

site of facility important to minimize production cost

c)

some aspects of quality measurable

d)

reselling unusual

21.

Which one is TRUE for the medium range forecast?

a)

New product planning, facility location, research and development

b)

Forecasts tend to be more accurate than longer-term forecasts

c)

Purchasing, job scheduling, workforce levels, job assignments, production levels

d)

Forecast on sales, production planning and budgeting.

22.

Which one is the best describe for forecast approach on qualitative method?

a)

Used when situation is stable and historical data exist.

b)

Used when situation is vague and little data exist.

c)

Involves mathematical techniques.

d)

Forecast on existing product and current technology.

23.

_____________________ involve managers from sales, marketing research, accounting and production. This managers assembles to discuss their opinion on what will happen to sales in future.

a)

Jury of Executive Opinion

b)

Delphi Method

c)

Sales Force Composite

d)

Market Survey

24.

____________ each salesperson projects his or her sales then combined at district and national levels.

a)

Jury of Executive Opinion

b)

Delphi Method

c)

Sales Force Composite

d)

Market Survey

25.

______________ assumes demand in next period is the same as demand in most recent period.

a)

Moving average

b)

Weighted Moving Average

c)

Naive Approach

d)

Exponential Smoothing

26.

Q. 

He is responsible for for planning, organizing, staffing, implementing, and controlling operations of a business.

(a)  

27.

Q. 

It includes all activities involved in obtaining, training, and compensating the employees of a business.

(a)  

28.

. 

This contains all of the rules, policies, and procedures that a business should follow to function effectively.

a)

Operations Management

b)

Operations Manual

c)

Management

d)

Organizing

29.

Q. 

It also called stock control, is the process of managing a company's inventory levels

a)

Inventory Control

b)

Inventory

c)

Purchasing Plan

d)

Inventory Needs

30.

. 

This method keeps track of inventory levels on a daily basis.

(a)  

31.

Q. 

It involves taking a physical count of your merchandise at regular intervals

(a)  

32.

. 

It is the rate at which the inventory of a product is sold and replaced with new inventory.

(a)  

33.

It is an important skill of every small business owner or manager

(a)  

34.

The factors involved in location decisions include

a)

foreign exchange.

b)

attitudes.

c)

labor productivity.

d)

all of the above.

35.

Evaluating location alternatives by comparing their composite

(weighted-average) scores involves

a)

factor-rating analysis.

b)

cost–volume analysis.

c)

transportation model analysis.

d)

linear regression analysis.

36.

A regional bookstore chain is about to build a distribution

center that is centrally located for its eight retail outlets.

It will most likely employ which of the following tools of

analysis?

a)

Assembly-line balancing.

b)

Load–distance analysis.

c)

Center-of-gravity model.

d)

Linear programming

37.

Which of the following does NOT support the retail layout

objective of maximizing customer exposure to products?

a)

Locate high-draw items around the periphery of the store.

b)

Use end-aisle locations.

c)

Maximize exposure to expensive items.

38.

A fixed-position layout:

a)

groups workers to provide for movement of information.

b)

deals with low-volume, high-variety production.

c)

addresses the layout requirements of large, bulky projects such as ships and buildings.

39.

A process-oriented layout:

a)

groups workers to provide for movement of information.

b)

seeks the best machine utilization in continuous production.

c)

deals with low-volume, high-variety production.

40.

Product Strategy options support Competitive Advantage, including:

a)

Differentiation

b)

Low Cost

c)

Rapid Response

d)

All of the above

41.

A house of quality is:

a)

a matrix relating customer “wants” to the firm’s “hows.”

b)

a set of detailed instructions about how to perform a task.

c)

a schematic showing how a product is put together.

42.

Products are defined by:

a)

value engineering.

b)

assembly charts.

c)

engineering drawings.

d)

value analysis.

43.

Which one of the following would not generally be considered an aspect of operations management?

a)

Work methods

b)

Secure financial resources

c)

Maintain quality

d)

Product or service design

44.

The dominant operation for a bank is:

a)

Processing complaints

b)

Processing materials

c)

Processing information

d)

Processing customers

45.

Production Management starts with

a)

Aggregate planning

b)

Average planning

c)

Strategy formulation

d)

None of the above

46.

the ratio of outputs to inputs during production

a)

production

b)

level of production

c)

productivity

47.

Ways to increase productivity

a)

motivate the workers

b)

hire a manager

c)

use more advanced technology

d)

train the workers

48.

producing output at the highest ratio of output to input

a)

effectiveness

b)

efficiency

c)

labor intensive

d)

capital intensive

49.

involving a high quantity of capital equipment compared with about input

a)

effectiveness

b)

efficiency

c)

labor intensive

d)

capital intensive

50.

Operations planning decisions are influenced by

a)

technology

b)

market demand

c)

skills of the labor

d)

availability of resources

51.

the use of computer programs to control machine tools and related machinery in manufacturing of products.

a)

CAD

b)

CAM

c)

advanced technology

d)

automation

52.

producing a one-off item specially designed for the customer

a)

mass customisation

b)

flow production

c)

batch production

d)

job production

53.

the use of flexible computer-aided production systems to produce items to meet individual customer's requirements at mass-production cost levels

a)

mass customisation

b)

flow production

c)

batch production

d)

job production

54.

An advantage of batch production

a)

high level of worker motivation

b)

some flexibility in design of product in each batch

c)

low unit costs due to constant working machine and high labour productivity

d)

ability to undertake specialist projects or jobs

55.

A disadvantage of flow production

a)

high unit production costs

b)

high levels of stocks at each production stage

c)

expensive to set up flow-line machinery

d)

wide range of tolls needed

56.

quantitative factors of deciding location

a)

labour costs

b)

government grants

c)

room for expansion

d)

environmental concerns

57.

Qualitative factors in deciding location of a business

a)

break even analysis

b)

the pull of market

c)

safety

d)

transportation cost

58.

reductions in a firm's unit costs of production that result from an increase in the scale of operation

a)

communication economies

b)

technical economies

c)

coordination economies

d)

marketing economies

59.

factors that cause average costs of production to rise when the scale of operation is increased

a)

purchasing problems

b)

alienation of the workforce

c)

coordination problems

d)

financial

60.

Type of inventory

a)

finished products

b)

work in progress

c)

raw material

d)

stock

61.
Which of the following best describes quality?
a)
The service provided to a customer before, during and after purchasing.
b)
Products being made to a high standard to meet customer needs.
c)
A high level of productivity.
62.
Who needs to be satisfied with the quality of products?
a)
Rivals
b)
Suppliers
c)
Customers
63.
Which of the following is usually true about poor quality products?
a)
They are in demand
b)
They fail to meet customers expectations
c)
They are expensive
64.
What happens when a business produces faulty goods?
a)
It increases costs
b)
It increases costs and damages the reputation of the firm
c)
It is an example of Total Quality Management
65.

A business checks products after they are made. What is this an example of?

a)

Quality Control

b)

Quality Circles

c)

Quality Assurance

66.

When products are checked at each stage of production, what is this an example of?

a)

Quality Control

b)

Quality Circles

c)

Quality Assurance

67.

When products are checked throughout the production process this is called

a)

Quality Circles

b)

Quality Assurance

c)

Quality Control

68.

When products are checked at the end of the production process this is called

a)

Quality Assurance

b)

Quality Circles

c)

Quality Control

69.
What group of people sit and discuss production methods in Quality Circles?
a)
Customers and Suppliers
b)
Managers and Suppliers
c)
Employees and Managers
70.
What is the best methods of improving quality
a)
Expansion
b)
Lowering costs
c)
Staff and Management Training
71.

What is a high quality product?

a)

A product that does not meet customer expectations but fulfills the customers needs at a price they are willing to pay

b)

A product that meets customer expectations but not at a price they are willing to pay

c)

A product that meets customer expectations and fulfills the customers needs at a price they are willing to pay

72.

When is Quality Control carried out by a business?

a)

Inspection or checking of product/service is carried out at the end of production

b)

Inspection or checking of product/service is carried out during production

c)

Inspection or checking of product/service is carried out before production

73.

Quality Assurance is carried out

a)

At the end of production

b)

During all stages of production

c)

During some stages of production

74.

Total Quality Management involves

a)

Management

b)

management, workforce, suppliers, and even customers, in order to meet or exceed customer expectations.

c)

management and customers, in order to meet or exceed customer expectations.

75.

Quality Circles are...

a)

are medium groups of workers, usually between 10 and 15, who

are paid to meet in order to discuss methods of improving productivity

b)

are small groups of workers, usually between 5 and 10, who are paid to meet in order to discuss methods of improving productivity

c)

are small groups of workers, usually between 5 and 10, who

meet voluntarily in order to discuss methods of improving productivity

76.

Developed by Walter Shewhart, one of the pioneers of total quality management, is a circular model known as ________ as his version of continuous improvement.

a)

Six Sigma

b)

Employee Empowerment

c)

Plan-Do-Check-Act

d)

Benchmarking

77.

It involves selecting a demonstrated standard of products, services, costs, or practices that represent the very best performance for processes or activities very similar to your own.

a)

Six Sigma

b)

PDCA

c)

Employee Empowerment

d)

Benchmarking

78.
 What is the world body for standards formulation?
a)
PQA
b)
IQA
c)
ISO
d)
QC
79.
What is the term that refers to a customer oriented management philosophy and strategy?
a)
Operations Management
b)
Total Quality Management
c)
Entrepreneurial Management
d)
Strategic Management
80.

Operation Management can be defines as _________________

a)

activities related to the creation of goods or services by converting or transforming inputs into outputs

b)

the innovation of goods or services by converting or transforming inputs into outputs

c)

activities related to the creation of goods or services by included inputs into outputs

d)

the creation of goods or services by converting or transforming inputs into outputs

81.

Operations system is a system where the main function is to create goods and services. A basic operations system _____________________

a)

Input, Transformation, Output and Feedback

b)

Input, Output,Transformation and Feedback

c)

Input, Output,Feedback and Transformation

d)

Feedback, Input, Output and Transformation

82.

There are 3 reason why study operation management is important except:

a)

Operations management is one of the major functions in an organization.

b)

Operation management enables us to know how goods and services are produced, as it is concerned with the activities related to the creation of goods and services.

c)

Operation management influenced by the environment that respond to the organization.

d)

Operation management allows us to understand what operations managers do. An operations is the person who is responsible in the operations department.

83.

Role of Operation Managers included ___________________

a)

Planning, Organizing, Staffing, Leading and Controlling

b)

Planning, Organizing, Leading and Controlling

c)

Organizing, Planning, Staffing and Controlling

d)

Controlling, Planning, Staffing, and Leading

84.

________________ setting goals and determining ways to achieve the goals.

a)

Leading

b)

Staffing

c)

Planning

d)

Controlling

85.

____________________ is the creation of outputs and form the goods and services.

a)

Comparability

b)

Quality

c)

Produce

d)

Productivity

86.

MSU incorperated produces 5,000 units of outputs and labor hours used are 500. Calculate single factor

a)

10 units per labour hours

b)

10 units labour hours

c)

10 units per labour

d)

10 per labour hours

87.

MSU Incorporated want to assess its productivity in a broader view. The company has ten employees, working 8 hours per day (salary RM20 an nour, which costs the company RM1500). Other expenses incurred per day amounts to RM1000. One employee is able to produce 50 units of products in a day.

a)

0.23 units per Ringgit Malaysia

b)

0.21 units per Ringgit Malaysia

c)

0.22 units per Ringgit Malaysia

d)

0.20 units per Ringgit Malaysia

88.

Single factor productivity _________

a)

is the productivity measurement that uses just more than one resources input.

b)

is the productivity measurement that uses just one resources input.

c)

is the productivity measurement that uses just infinity resources input.

d)

is the productivity measurement that uses just any resources input.

89.

Sweet Bakery is currently producing 150 cakes a day. The bakery spent a total of 10 hours to produce at this quantity. Using the single factor productivity measurement, what is the productivity level of sweet bakery?

a)

20 unit per labour hours

b)

10 unit per labour hours

c)

15 unit per labour hours

d)

5 unit per labour hours

90.

Basic components of an operation system as below except:

a)

Input

b)

Output

c)

Complaint

d)

Feedback

91.

OM Sdn Bhd wants to assess its productivity by comparing the current year with the previous year's performance. Here the data for output : 6,500 wages : RM6000 materials : RM3,750 and Capital RM42,000. Calculate multi factor productivity

a)

0.135 unit per Ringgi Malaysia

b)

0.14 unit per Ringgi Malaysia

c)

0.13 unit per Ringgit Malaysia

d)

0.1 unit per Ringgi Malaysia

92.

Operation management is related to the production of outputs. Outputs can be divided into _______

a)

input and output

b)

feedback

c)

creativity and innovation

d)

good and services

93.

Why is productivity important

a)

To increase the income

b)

To increase the revenue

c)

To increase the unemployment

d)

To increase the operating costs

94.

Main function in organization and their relationship are __________________________

a)

Finance, Marketing, Human Resource, Public Relation and Supplier

b)

Finance, Marketing and Supplier

c)

Finance, Marketing, Human Resource, Admin and Supplier

d)

Finance, Marketing, Human Resource and Supplier