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Section 4 Operations Management AS Level Chap 23-25 Quiz

Total questions: 81

Worksheet time: 41mins

Name
Class
Date
1.
Which of the following is a benefit of lean production?
a)
A) Increased labor costs
b)
B) High levels of stock
c)
C) Reduction in waste
d)
D) Longer production lead time
2.
Which of the following best describes a labor-intensive method of production?
a)
A) High dependency on machines
b)
B) High costs associated with equipment
c)
C) A large proportion of costs go to labor
d)
D) Automated production lines
3.
What is capacity utilization?
a)
A) The total amount of products a business can produce at any given time
b)
B) The percentage of a company's total output that is actually used
c)
C) The maximum output a company can produce without increasing resources
d)
D) The amount of capital invested in production
4.
What is the primary goal of Just-in-Time (JIT) inventory management?
a)
A) Reduce waste by holding minimal inventory
b)
B) Maximize buffer stock levels
c)
C) Increase storage capacity
d)
D) Automate the production process
5.
Intellectual capital in a business refers to
a)
A) Physical assets
b)
B) Knowledge, skills, and expertise of employees
c)
C) The building and machinery of the company
d)
D) The total financial value of all equipment owned
6.
Which production method is best for highly customized products?
a)
A) Flow production
b)
B) Job production
c)
C) Batch production
d)
D) Mass production
7.
What is a disadvantage of using CAD (Computer-Aided Design)?
a)
A) High employee motivation
b)
B) High cost of computer software
c)
C) Increased product development time
d)
D) Simplified production process
8.
What is the impact of operating at 100% capacity utilization?
a)
A) Increased product quality
b)
B) Higher flexibility in production
c)
C) Limited ability to meet new customer demands or adjust to changes
d)
D) Reduced cost per unit produced
9.
What is the main advantage of flow production?
a)
A) Ability to handle large-scale, identical products
b)
B) Flexible response to customer preferences
c)
C) High worker motivation
d)
D) Low initial setup costs
10.
What is one risk associated with the mass customization approach to production?
a)
A) High levels of unsold inventory
b)
B) Limited flexibility in meeting customer demands
c)
C) High initial capital investment
d)
D) Limited use of technology
11.
Which production method is most suitable for mass-producing identical items?
a)
A) Job production
b)
B) Batch production
c)
C) Flow production
d)
D) Custom production
12.
What is the primary function of buffer stock?
a)
A) Ensure continuous production
b)
B) Reduce storage costs
c)
C) Increase demand
d)
D) Prevent excess inventory
13.
What is the formula for capacity utilization?
a)
A) (Actual output / Maximum possible output) x 100
b)
B) (Maximum possible output / Actual output) x 100
c)
C) (Total sales / Fixed costs) x 100
d)
D) (Profit / Total expenses) x 100
14.
Capital-intensive production is characterized by
a)
A) High reliance on manual labor
b)
B) Low start-up costs
c)
C) Use of expensive machinery and technology
d)
D) High worker flexibility
15.
Which is a disadvantage of mass production?
a)
A) High employee involvement
b)
B) Lack of flexibility in product changes
c)
C) High motivation among employees
d)
D) Low economies of scale
16.
Just-in-Time (JIT) production is designed to
a)
A) Increase production time
b)
B) Reduce stock levels
c)
C) Boost long-term inventory holding
d)
D) Increase reliance on warehousing
17.
What happens if capacity utilization is too low?
a)
A) The company may need to hire more workers
b)
B) The company will have excess inventory
c)
C) The company may face higher per-unit costs due to underutilization
d)
D) The company will be overworking its employees
18.
In lean production, which of the following is most important?
a)
A) Eliminating waste
b)
B) Increasing labor costs
c)
C) Stockpiling inventory
d)
D) Overproducing goods
19.
Which factor would lead a company to shift to more capital-intensive methods?
a)
A) Increased labor costs
b)
B) Reduced machinery costs
c)
C) Technological advancements
d)
D) All of the above
20.
What is outsourcing?
a)
A) Increasing the capacity of a company by hiring new staff
b)
B) Reducing product prices by using cheaper materials
c)
C) Delegating a company’s internal processes to external suppliers
d)
D) Selling products through third-party distributors
21.
Which of the following is an example of process innovation?
a)
A) Using outdated machinery
b)
B) Automating packaging systems
c)
C) Cutting down labor
d)
D) Increasing stock levels
22.
Which of the following is a benefit of outsourcing?
a)
A) Increased control over core business processes
b)
B) Access to specialized expertise and technology
c)
C) Reduced operational flexibility
d)
D) Higher internal operational costs
23.
An example of a business using job production is
a)
A) Manufacturing smartphones
b)
B) Creating a custom wedding dress
c)
C) Assembling identical cars
d)
D) Packaging consumer goods
24.
A benefit of flow production is
a)
A) Ability to create highly customized products
b)
B) High production speed for identical goods
c)
C) Reduced dependency on technology
d)
D) Small-scale production capacity
25.
What is a major risk of outsourcing?
a)
A) Improved internal workforce skills
b)
B) Loss of control over outsourced activities
c)
C) Faster product delivery times
d)
D) Increased employee engagement
26.
Which factor is most critical for successful Just-in-Time (JIT) implementation?
a)
A) Efficient supply chain
b)
B) Holding large stock reserves
c)
C) Maximizing warehousing space
d)
D) Reducing product variety
27.
Which business function is most commonly outsourced?
a)
A) Manufacturing and production
b)
B) Core strategic planning
c)
C) Corporate decision-making
d)
D) Marketing research
28.
What is a disadvantage of high capital utilization?
a)
A) Increased worker flexibility
b)
B) Inability to meet sudden demand spikes
c)
C) Reduced economies of scale
d)
D) Improved worker morale
29.
Which of the following is NOT a key feature of lean production?
a)
A) Waste elimination
b)
B) Employee involvement
c)
C) Large stock reserves
d)
D) Just-in-Time inventory management
30.
Which production method involves creating goods in groups with similar characteristics?
a)
A) Flow production
b)
B) Job production
c)
C) Batch production
d)
D) Mass customization
31.
Flow production is ideal for producing a large number of identical products.
a)
True
b)
False
32.
Capacity utilization is calculated by dividing actual output by maximum possible output, then multiplying by 100.
a)
True
b)
False
33.
Just-in-Time (JIT) inventory management aims to minimize stock levels and deliver materials only when needed.
a)
True
b)
False
34.
Operating at 100% capacity utilization allows a business to easily meet sudden increases in customer demand.
a)
True
b)
False
35.
Capital-intensive production is more reliant on labor than on machinery.
a)
True
b)
False
36.
Batch production is used when products are manufactured in large continuous quantities without interruption.
a)
True
b)
False
37.
Low capacity utilization can lead to higher unit costs because fixed costs are spread over fewer units.
a)
True
b)
False
38.
A business using automation can reduce human error in its production processes.
a)
True
b)
False
39.
In lean production, waste minimization is a key objective.
a)
True
b)
False
40.
Job production is suitable for highly customized, one-off products.
a)
True
b)
False
41.
Intellectual capital refers to the physical assets of a business, such as machinery and buildings.
a)
True
b)
False
42.
Process innovation involves introducing new or improved production methods to increase efficiency.
a)
True
b)
False
43.
Holding large inventories is a key feature of Just-in-Time (JIT) production.
a)
True
b)
False
44.
If a business has high capacity utilization, it may need to invest in additional resources to handle more orders.
a)
True
b)
False
45.
High capacity utilization typically leads to increased flexibility in production processes.
a)
True
b)
False
46.
Outsourcing allows companies to focus on their core activities while external suppliers handle non-essential tasks.
a)
True
b)
False
47.
Mass customization allows for personalized products at the same cost as mass production.
a)
True
b)
False
48.
In lean production, high levels of inventory are necessary to meet fluctuating demand.
a)
True
b)
False
49.
Capital productivity is calculated by dividing total output by the capital employed.
a)
True
b)
False
50.
The critical path in project management refers to the longest path in the project timeline.
a)
True
b)
False
51.
Outsourcing production allows a business to focus more on its core activities.
a)
True
b)
False
52.
Outsourcing always reduces operational risks for a company.
a)
True
b)
False
53.
Buffer stock is maintained to safeguard against potential supply chain disruptions.
a)
True
b)
False
54.
Batch production is less flexible than job production but more flexible than flow production.
a)
True
b)
False
55.
One advantage of outsourcing is that it provides access to specialized skills and technologies not available in-house.
a)
True
b)
False
56.
A major disadvantage of using CAD (Computer-Aided Design) is that it leads to poor product visualization.
a)
True
b)
False
57.
In lean production, the goal is to achieve zero defects and zero waste.
a)
True
b)
False
58.
Outsourcing can result in a loss of control over the quality of products or services.
a)
True
b)
False
59.
Process innovation reduces the need for product quality improvement.
a)
True
b)
False
60.
Outsourcing is mainly used to increase a company’s internal capacity rather than reduce costs.
a)
True
b)
False
61.

In Just-in-Time (JIT) inventory management, materials are delivered exactly when they are (a)   for production.

62.

(a)   refers to the difference between the cost of inputs and the price of finished goods

63.

Capacity utilization is the percentage of a company's (a)   output that is actually being used.

64.

Low capacity utilization can result in (a)   unit costs, as fixed costs are spread over fewer units.

65.

(a)   is the use of computer software to design products and processes in production.

66.

The term (a)   refers to knowledge, skills, and expertise that give a business a competitive advantage.

67.

A company operating at 100% capacity has (a)   ability to respond to changes in demand.

68.

(a)   is a production method where products are made in groups, with each group moving through production stages together.

69.

Capacity utilization is calculated as: ( (a)   output / maximum output) x 100.

70.

Lean production aims to eliminate (a)   in every part of the production process.

71.

Capital productivity is calculated by dividing total output by (a)   employed.

72.

Flow production is also known as (a)   production due to its continuous, repetitive nature.

73.

Buffer stock is held to protect against unexpected increases in (a)   or delays in supply.

74.

Companies can improve capacity utilization by outsourcing (a)   tasks to external providers.

75.

A key disadvantage of automation is the high initial cost of installing (a)   and technology.

76.

What is a key benefit of using Just-in-Time (JIT) production?

a)

C) Requires large storage facilities

b)

D) Enhances product variety

c)

B) Increases production time

d)

A) Reduces inventory holding costs

77.

Which of the following best describes batch production?

a)

C) Continuous production of identical items

b)

A) Producing goods in large quantities without customization

c)

B) Producing goods in small, specific quantities

d)

D) Producing one-off custom products

78.

What is the primary goal of lean manufacturing?

a)

A) To maximize production speed

b)

B) To minimize waste and improve efficiency

c)

C) To increase inventory levels

d)

D) To enhance product complexity

79.

What is the impact of low capital productivity on a company's financial performance?

a)

D) Enhanced market competitiveness

b)

B) Higher operational costs

c)

C) Improved cash flow

d)

A) Increased profit margins

80.

Which production method is best suited for producing a wide variety of products in small quantities?

a)

C) Flow production

b)

A) Mass production

c)

D) Batch production

d)

B) Job production

81.

What is a potential risk of relying heavily on outsourcing for production?

a)

A) Increased control over production processes

b)

B) Loss of proprietary knowledge

c)

D) Greater flexibility in production

d)

C) Enhanced product quality

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