Deck 1: Introduction to Operations Management

Question 1

Transformation outputs can always be conveniently stored.

Answer 1

False

Question 2

Which of the following functions is not a core function of an organisation?

A) The product/service development function.
B) The marketing (including sales) function.
C) The accounting and finance function.
D) The operations function.

Answer 2

The accounting and finance function.

Question 3

Most operations produce a mixture of both products and services. Which of the following businesses is closest to producing 'pure' services?

A) Steel company
B) Counsellor/therapist
C) IT company
D) A restaurant

Answer 3

Counsellor/therapist

Question 4

Operations typically differ in terms of volume of output, variety of output, variation in demand or the degree of 'visibility' (i.e. customer contact) that they give to customers of the production
Process. Please match the following element with the most appropriate of the above dimensions.
Flexibility is most closely matched to:

A) Variety
B) Visibility
C) Volume
D) Variation

Question 5

Operations can be classified according to their volume and variety of production as well as the degree of variation and visibility. Which of the following operations would be classified as high
Volume, low variety?

A) A family doctor
B) A fast food restaurant
C) A carpenter
D) A bank front office

Question 6

Which of the following is NOT a transformed resource input in operations?

A) Customers
B) Materials
C) Facilities
D) Information

Question 7

High-visibility operations do not include:

A) Retail banking
B) Coffee bar
C) Clothes shop
D) Internet retailer

Question 8

High-volume operations do not include:

A) A taxi service
B) A theme park
C) A fast food restaurant
D) Television manufacture

Question 9

Operations typically differ in terms of volume of output, variety of output, variation in demand or the degree of 'visibility' (i.e. customer contact) that they give to customers of the production
Process. Please match the following element with the most appropriate of the above dimensions.
The demand pattern is most closely matched to:

A) Variation
B) Volume
C) Variety
D) Visibility

Question 10

Which of the following is a responsibility for an Operations Manager?

A) All of the below
B) Day-to-day running of the process
C) Ensuring delivery of goods or services
D) Design the process

Question 11

Operations typically differ in terms of volume of output, variety of output, variation in demand or the degree of 'visibility' (i.e. customer contact) that they give to customers of the production
Process. Please match the following element with the most appropriate of the above dimensions.
Low unit costs are most closely matched to:

A) Volume
B) Variety
C) Visibility
D) Variation

Question 12

What is operations management?

A) An organisational function which produces products and services.
B) The activity of producing products and services.
C) What all managers do when they deal with day-to-day activities.
D) The process of satisfying the needs of internal and external customers.

Question 13

Operations management is important to all business and operations managers have a similar set of
responsibilities in all businesses.

Question 14

Efficient operations management is irreconcilable with environmental considerations.

Question 15

Transformation outputs can always be seen.

Question 16

Which of the following activities is not a direct responsibility of operations management?

A) Developing an operations strategy for the operation.
B) Designing the operation's products, services and processes.
C) Determining the exact mix of products and services that customers will want.
D) Planning and controlling the operation.

Question 17

Operations can be classified according to the degree of variation in demand and visibility of the operation as well as their volume and variety of production. Which of the following operations
Would be classified as high variation and high visibility?

A) A carpenter
B) A fast food restaurant
C) A front office bank
D) A family doctor

Question 18

Which of the following is the least likely decision to be made by Operations Managers?

A) How to use quality techniques to reduce waste.
B) Designing and improving the jobs of the workforce.
C) How much capacity is required to balance demand.
D) Deciding which market areas to manufacture products for.
E) Selecting the location and layout of a facility.

Question 19

Which of the following is a transformed input resource?

A) Facilities
B) Staff
C) Information
D) None of the above

Question 20

Which of the following is a transforming input resource?

A) Staff
B) Information
C) Customers
D) None of the above

Question 21

The decisions taken by an operations manager are the same for commercial and not-for-profit
organisations.

Question 22

When was IKEA founded?

A) 1940s
B) 1960s
C) 1970s
D) 1950s

Question 23

Which of the following is true of effective operations?

A) It can reduce the amount of investment necessary to produce goods and service.
B) It can provide the basis for future innovation.
C) It can reduce costs of producing goods and services.
D) All of the above.

Question 24

The transforming and transformed resources that form the input to operations are called:

A) Delivery resources
B) Transformation resources
C) Tangible resources
D) Input resources

Question 25

Which of the following is NOT true of the changing business environment in which operations management work?

A) More frequent product introduction
B) Less ethical sensitivity
C) Demand for better quality
D) More legal regulation

Question 26

Resources within an operation that are not immediately evident, such as relationships with suppliers, are called:

A) Non-discreet resources
B) Ethereal resources
C) Transient resources
D) Intangible resources

Question 27

In an international aid charity, which function is likely to be responsible for developing new appeals campaigns?

A) Product/Service Development
B) Human Resources
C) Operations
D) Marketing

Question 28

In a fast food chain, which function is likely to be responsible for serving customers?

A) Human resources
B) Marketing and sales
C) Finance
D) Operations

Question 29

What name is given to the arrangement of resources which are devoted to the production and delivery of products and service?

A) The Product & Logistics Function
B) The Operations Function
C) The Delivery Function
D) The Production Function

Question 30

Which of the following is NOT a process input?

A) Information for the police
B) Transported passengers for a train service
C) Aircraft for an airline
D) Sales staff for a department store

Question 31

Which performance objectives do IKEA focus most on?

A) Quality
B) Cost
C) Flexibility
D) Speed

Question 32

What other names may be given to an operations manager?

A) Store manager
B) Administrative manager
C) Fleet manager
D) All of the above

Question 33

In a furniture manufacturer, which function is likely to be responsible for determining pricing policies?

A) Marketing and sales
B) Finance
C) Product/Service Development
D) Operations

Question 34

All the activities involved in supplying a customer's order is called:

A) Order fulfilment
B) Customer-focused process
C) Delivery
D) Customer-driven operations

Question 35

The people and groups of people who have an interest in the operation and who may be influenced by, or influence, the operation's activities, are called:

A) Stakeholders
B) Operation owners
C) Pressure groups
D) Key accounts

Question 36

Which of the following is NOT a response from operations to the changing business environment?

A) Technologies replacing manual jobs
B) Flexible working patterns
C) Mass marketing
D) Lean process design

Question 37

The amount of value-added activity that takes place in the presence of the customer is called:

A) Variety
B) Visibility
C) Variation
D) Value-added

Question 38

An operation's ability to produce a wide range of products or services is called what?

A) Commodity range
B) Mix flexibility
C) Package
D) Customization profile

Question 39

Pret A Manger outlets receive deliveries of fresh sandwiches from a number of regional centres
every day.

Question 40

Service processes that have a high number of transactions, often involving limited customization, are called:

A) Mass services
B) Dual services
C) Service runners
D) Low-complexity services

Question 41

What is the name of the model that describes operations in terms of their input resources, transforming processes and outputs of goods and services?

A) Transformation process model
B) Slack operations model
C) Five forces model
D) Operational process model

Question 42

Which of the following is NOT an implication of high visibility?

A) High unit cost.
B) Satisfaction governed by customer perception.
C) Customer contact skills needed.
D) Time lag between production and consumption.

Question 43

Which of the following is NOT an implication of high variation in demand?

A) Low unit cost
B) Changing capacity
C) Flexibility in workforce is needed
D) Anticipation is important

Question 44

The dominant operation for a bank is:

A) Processing complaints
B) Processing information
C) Processing materials
D) Processing customers

Question 45

Which of the following is an implication of low variety?

A) Matching customer needs necessary
B) Flexibility needed
C) Low unit cost
D) High complexity

Question 46

In the case of crude oil producers, what term is used for any technical advice provided to their customers?

A) Intangible benefit
B) Support service
C) Facilitating services
D) Value-added service

Question 47

Which of the following predominantly process materials in their operations?

A) Hospitals
B) Postal service
C) Market research company
D) Bank headquarters