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CTU-MBE 2 Midterm Exam S.Y 2025-2026

Total questions: 80

Worksheet time: 41mins

Name
Class
Date
1.

Operations Management focuses on converting ________ into outputs.

a)

Processes

b)

Inputs

c)

Resources

d)

Plans

2.

Which function involves motivating and guiding employees?

a)

Planning

b)

Organizing

c)

Directing

d)

Controlling

3.

Productivity measures the ratio of outputs to ________.

a)

Labor

b)

Inputs

c)

Revenue

d)

Materials

4.

Capacity refers to the maximum ________ that a system can produce.

a)

Profit

b)

Output

c)

Input

d)

Value

5.

Process selection determines how ________ are transformed into outputs.

a)

Inputs

b)

Strategies

c)

Facilities

d)

Employees

6.

Facility layout deals with the arrangement of ________.

a)

Suppliers

b)

Resources

c)

Customers

d)

Competitors

7.

The transformation process converts materials, labor, and capital into ________.

a)

Services

b)

Outputs

c)

Goods

d)

Both b & c

8.

The “Double Diamond” model is related to ________ design.

a)

Product

b)

Service

c)

Process

d)

Layout

9.

Value analysis focuses on improving function and minimizing ________.

a)

Quality

b)

Time

c)

Cost

d)

Risk

10.

Mass customization combines high volume with ________.

a)

Standardization

b)

Individualization

c)

Job shop

d)

Line flow

11.

A job shop layout is best for ________ production.

a)

High-volume

b)

Low-volume, varied

c)

Continuous

d)

Batch

12.

Why is productivity essential for competitiveness?

a)

It raises costs

b)

It reduces innovation

c)

It lowers production cost

d)

It delays output

13.

Effective capacity considers constraints such as _________

a)

Product design

b)

Maintenance and scheduling

c)

Market demand

d)

Labor turnover

14.

A facility layout improves efficiency by minimizing _________.

a)

Labor cost

b)

Material handling

c)

Equipment

d)

Employees

15.

Which phase in product design clarifies the problem to solve?

a)

Discover

b)

Define

c)

Develop

d)

Deliver

16.

The “Externally Supportive” stage in Hayes & Wheelwright means operations _________.

a)

Hinder goals

b)

Meet standards

c)

Support business strategy

d)

Lead competitiveness

17.

Service design differs from product design because it focuses on _________.

a)

Aesthetics

b)

Experience and process

c)

Materials

d)

Quality control

18.

Break-even analysis identifies the level where total revenue equals _________.

a)

Cost

b)

Output

c)

Demand

d)

Profit

19.

The primary goal of capacity planning is to match resources with _________

a)

Price

b)

Demand

c)

Employees

d)

Costs

20.

Strategic decisions in operations management influence _________

a)

Daily scheduling

b)

Facility construction

c)

Product pricing

d)

Supplier hiring

21.

“Internally Neutral” stage means operations are viewed as a _________.

a)

Support

b)

Core advantage

c)

Cost center

d)

Market leader

22.

Standardization promotes efficiency by ensuring _________.

a)

Variation

b)

Consistency

c)

Uniqueness

d)

Competition

23.

If actual output drops below effective capacity, analyze which factor likely causes it:

a)

New layout

b)

Machine upgrade

c)

Increased demand

d)

Employee absenteeism

24.

When demand exceeds capacity, the company should consider _________.

a)

Capacity expansion

b)

Reducing product

c)

Hiring fewer

d)

Delaying delivery

25.

An organization adopting automation due to inefficiency is addressing ________ factor.

a)

Policy

b)

Process

c)

Facility

d)

External

26.

If a bakery produces 140 loaves instead of 200, identify the limitation.

a)

Design

b)

Effective

c)

Actual

d)

Throughput

27.

Analyzing a factory’s space usage relates to which operational element?

a)

Capacity

b)

Layout

c)

Forecasting

d)

Scheduling

28.

A decision tree helps analyze scenarios with _________.

a)

Predictable outcomes

b)

No alternatives

c)

Steady flow

d)

Uncertain demand

29.

In a product-focused strategy, cost per unit is typically _________?

a)

High

b)

Moderate

c)

Low

d)

Variable

30.

Determining if a bottleneck exists between stations requires analyzing _________

a)

Output rates

b)

Costs

c)

Prices

d)

Design quality

31.

Which factor most affects facility flexibility?

a)

Layout

b)

Location

c)

Labor

d)

Inventory

32.

Comparing process and product layout, which gives more customization?

a)

Fixed

b)

Product

c)

Line

d)

Process

33.

A furniture shop with small batches represents a ________ process type.

a)

Job shop

b)

Batch

c)

Assembly

d)

Continuous

34.

Evaluating productivity trends across quarters involves analyzing ________.

a)

Design

b)

Efficiency

c)

Policy

d)

Layout

35.

A poor facility design increasing movement time indicates low ________.

a)

Output

b)

Flexibility

c)

Efficiency

d)

Capacity

36.

A restaurant rearranges kitchen equipment for faster workflow. This applies ________.

a)

Scheduling

b)

Capacity planning

c)

Service design

d)

Facility layout design

37.

To solve overcapacity, a factory temporarily outsources. This is a ________ alternative.

a)

Strategic

b)

Short-term

c)

Demand-side

d)

Long-term

38.

A car plant installs robots for repetitive tasks. This applies ________.

a)

Product-focused strategy

b)

Job shop

c)

Process focus

d)

Mass customization

39.

Using pricing discounts to shift off-peak demand is part of ________.

a)

Forecasting

b)

Scheduling

c)

Demand management

d)

Cost control

40.

An operations manager installs KPIs to track machine use. This applies ________.

a)

Continuous monitoring

b)

Demand planning

c)

Break-even

d)

Forecasting

41.

To minimize waste, a firm implements Lean production. This is ________ optimization.

a)

Facility

b)

Time

c)

Process

d)

Resource

42.

Relocating a warehouse closer to the market improves ________.

a)

Flexibility

b)

Delivery efficiency

c)

Capacity

d)

Quality

43.

A café redesigning its layout to improve service speed demonstrates ________.

a)

Product strategy

b)

Job shop

c)

Layout efficiency

d)

Cost control

44.

Using break-even analysis to decide on expansion applies ________.

a)

Financial tool

b)

Marketing plan

c)

Human audit

d)

Forecast

45.

Increasing staff training to reduce absenteeism improves ________ capacity.

a)

Design

b)

Effective

c)

Actual

d)

Normal

46.

Launching eco-friendly packaging applies ________ design consideration.

a)

Ethical

b)

Legal

c)

Environmental

d)

Financial

47.

Comparing job shop vs batch, which gives better cost efficiency?

a)

Job

b)

Hybrid

c)

Continuous

d)

Batch

48.

A firm with low effective capacity must assess ________ constraints.

a)

Supply

b)

Material

c)

Design

d)

Human and policy

49.

When to redesign layout? When demand or technology ________.

a)

Stabilizes

b)

Changes

c)

Increases

d)

Simplifies

50.

Evaluating standardization focuses on balancing ________ and flexibility.

a)

Efficiency

b)

Innovation

c)

Quality

d)

Customization

51.

Selecting a repetitive process over job shop requires evaluating _________

a)

Demand stability

b)

Labor skill

c)

Variety

d)

All of the above

52.

Evaluating Lean vs traditional manufacturing emphasizes _________

a)

Waste reduction

b)

Marketing

c)

Quality design

d)

Costs

53.

Determining best process strategy for flexibility involves evaluating _________

a)

Technology

b)

Product mix

c)

Market needs

d)

All of the above

54.

Design a strategy to enhance productivity without adding cost.

a)

Training & process streamlining

b)

Hire more

c)

New plant

d)

Outsourcing only

55.

Create a plan to address overcapacity during off-peak months is a strategy of _______.

a)

Hire

b)

Add machines

c)

Discount pricing

d)

Reduce quality

56.

To develop eco-conscious products, design using ________.

a)

Low price

b)

Sustainable materials

c)

Speed

d)

Demand

57.

Build a plan combining automation and flexible teams — applies ________ strategy.

a)

Job shop

b)

Mass customization

c)

Product-focused

d)

Batch

58.

To boost demand, design a ________ strategy.

a)

Process

b)

Outsourcing

c)

Layout

d)

Promotion and pricing

59.

Create a cost-benefit analysis for expansion. What data do you include?

a)

Cost, revenue, risks

b)

Employees

c)

Policies

d)

Skills

60.

Create a framework aligning mission, strategy, and tactics in operations.

a)

Strategic operations plan

b)

Scheduling

c)

Cost plan

d)

Outsourcing

61.

The three main components of operations are input, (a)   , and output.

62.

A (a)   is a point in production that limits overall system output.

63.

(a)   aims to optimize function while minimizing cost.

64.

The purpose of (a)   is to match production capability with customer demand.

65.

(a)   ensures consistency and reliability in products or services.

66.

Design capacity represents the (a)   output achievable under ideal conditions.

67.

A factory uses (a)   to decide the level of sales needed to cover total costs.

68.

The strategy that uses specialized equipment for efficiency is (a)   -focused.

69.

Actual output is always less than or equal to (a)   capacity.

70.

(a)   is the coordination and administration of tasks to achieve a goal.

71.

The maximum possible output under ideal conditions is called effective capacity.

a)

True

b)

False

72.

The transformation process in operations converts resources into goods or services.

a)

True

b)

False

73.

A product-focused strategy is best for customized, low-volume products.

a)

True

b)

False

74.

Capacity is concerned only with the quantity of products, not with the resources used.

a)

True

b)

False

75.

When a factory uses break-even analysis, it is applying a forecasting tool.

a)

True

b)

False

76.

Cost-benefit analysis compares the total benefits and costs of a decision.

a)

True

b)

False

77.

Service design focuses more on tangible goods than interactions.

a)

True

b)

False

78.

Evaluating layout effectiveness involves considering worker safety and comfort.

a)

True

b)

False

79.

Assessing design sustainability falls under financial evaluation.

a)

True

b)

False

80.

Creating a decision tree model for market expansion involves critical thinking and innovation.

a)

True

b)

False