Deck 16: Operations Management

Question 1

The core business process of an organisation centres around:

A) operations resources.
B) organisations systems.
C) employees involved in the production.
D) all of the given answers.
E) none of the given answers.

Answer 1

operations resources.

Question 2

An operations manager is NOT required in:

A) inventory control.
B) marketing.
C) food and beverage management.
D) quality assurance management.

Answer 2

marketing.

Question 3

Productivity is assessing organisational performance efficiency by measuring the ______________.

A) output
B) input
C) ratio of human resources relative to other resources
D) ratio of outputs relative to inputs

Answer 3

ratio of outputs relative to inputs

Question 4

Characteristics of a service organisation are that:

A) inputs are transformed into tangible outcomes - the consumer is not necessarily involved in the process of delivery.
B) materials are transformed to intangible products to serve the clients.
C) C: inputs are immediately transformed into tangible outcomes - the customer is necessarily involved in the process of delivery.
D D: inputs are immediately transformed into tangible outcomes - idle capacity to produce the services . can be used to strengthen the output.

Question 5

According to Slack & Lewis (2002), operations strategy connects and gives guidelines to objectives with ___________ to perform strategically.

A) what and when
B) what, how and when
C) who what and when
D) what, where and when

Question 6

Which is NOT an input into the operations management process?

A) raw materials, human resources
B) technology, capital
C) raw materials, human resources 2 choices the same?
D) capital, information technology

Question 7

The tension between market strategy and the ability of an organisation to deliver are often the driving force for operational ________________ .

A) organisation
B) change
C) improvement
D) breakdown

Question 8

The facility decision process to expand or contract the operation of an organisation does NOT include _____________ and ____________ in their four step model:

A) management of plant - organisation capacity
B) comparison of capacity - future demand
C) customer appreciation of product - generation of alternatives
D) consideration of risk - decision making of final plan

Question 9

A process layout is a production configuration where:

A) components are grouped according to type of function performed.
B) products or clients remain in one location and required tools/equipment are brought to that location.
C) all resources needed for a specific group of products or clients are arranged in a small location.
D) processing components are placed in groups by function.

Question 10

A cellular layout provides resources needed for:

A) all groups of clients in a large area.
B) a specific group of clients in any small area.
C) a specific group of clients in a small designated area.
D) any sized group of clients in any sized area.

Question 11

Managers separate most location problems into four categories:

A) single facility, multiple factories, competitive retail outlets and emergency services.
B) environmental factors, single facility, competitive retail outlets and emergency services.
C) Social factors, environmental factors, multiple factories and emergency services.
D) Social factors, environmental factors, multiple factories and competitive retail outlets.

Question 12

Computer-Integrated Manufacturing (CIM) is the computerised integration of all major functions associated with the production of a product, including product design and engineering, as well as:

A) machine instruction.
B) materials production.
C) stock taking.
D) processing.

Question 13

Computer-aided manufacturing (CAM) systems rely on other computerised systems. What functions do they NOT rely on?

A) Computers to prepare, review and evaluate product design
B) Computers to design and control production processes
C) Computers to control machines and production processes
D) Computers to coordinate distribution process

Question 14

Forecasting for an oil company would involve:

A) short term prediction only.
B) short term and long term prediction.
C) long term prediction only.
D) long term and progressive prediction.

Question 15

Capacity planning is centred around capacity measures NOT assessing the need for:

A) people.
B) major physical resources.
C) facilities.
D) none of the given answers.

Question 16

A national transport company would take into account all three time horizons, short, medium and long range in their capacity planning. Which one of the following time horizons consider the human resources in their plans?

A) long range, short range
B) long range, medium range
C) medium range, short range
D) all three time horizons

Question 17

A hospital's measure of capacity would NOT include:

A) medical and nursing staff.
B) operation theatres.
C) beds.
D) administration staff.

Question 18

Aggregate planning balances market demand with:

A) production output.
B) organisation capacity.
C) organisational vision.
D) none of the given answers.

Question 19

Which of the following is NOT a major approach to cope with an uncertain short- and intermediate term market where managers may have to anticipate fluctuating demand?

A) hiring part-time workers
B) paying overtime
C) stopping multi-skilling staff
D) taking back-orders

Question 20

Computerised production and inventory control systems support managers' planning capacity by giving them the opportunity to simulate proposed _____________ .

A) time frames
B) inventories
C) production reduction
D) production schedules

Question 21

The master production schedule is a useful tool for managers. What is NOT an advantage of using the MPS?

A) It helps to assess different schedules
B) It helps to determine required materials
C) It gives specific information on past needs
D) It helps to assess staffing needs

Question 22

The computer planning that ensures all materials needed are available, and immediate action is possible at the right time, is called:

A) materials-requirements planning
B) materials-deficiency planning
C) demand inventory requirement planning
D) none of the given answers

Question 23

A car manufacturer relying on different components from other manufacturing sources would use a ___________ - demand inventory to handle their material and component requirements:

A) production
B) independent
C) dependent
D) material

Question 24

The system using three inputs - a master production schedule, bill-of-materials information and inventory status information - to produce the end product is called:

A) aggregate-production planning.
B) bill-of-materials system.
C) master production system.
D) materials-requirements planning system.

Question 25

Which statement is correct? The bill-of-materials:

A) lists specific sections of each production unit.
B) lists all components needed to make an end product.
C) is not hierarchically arranged.
D) is not concerned about quantities needed.

Question 26

The difference between a bill-of-activities and a bill-of-materials is:

A) BOA determines activities and personnel needs; BOM lists all production components.
B) BOA only concentrates on production activities; BOM lists all production components.
C) BOA lists only personnel needs for production purposes; BOM lists components section by section.
D) none of the given answers.

Question 27

Operations managers in complex manufacturing rely heavily on the four outputs triggered by the materials-requirement planning system. Which is NOT one of these outputs?

A) materials orders
B) data to set production schedules
C) identification of faulty material
D) data on costs, quality and activity

Question 28

Manufacturing-resource planning II is NOT:

A) a computer based information system.
B) the expanded MRP system.
C) a system not for the service firms.
D) expensive and takes time to set up.

Question 29

The organisational purpose of any inventory is:

A) to deal with uncertainty of supply.
B) to provide better customer service.
C) to be able to more advantageously purchase required materials.
D) all of the given answers.

Question 30

A manager uses the inventory control method 'Economic Order Quality' (EOQ) to help him/her:

A) minimise the ordering and holding costs.
B) avoid stock-out costs.
C) know the reorder point.
D) all of the given answers.
E) none of the given answers.

Question 31

Modern operations management includes external linkages to the internal operations. They DO NOT include:

A) supplier base for raw materials.
B) supplier base for bought-out components.
C) customers.
D) shopkeepers.

Question 32

A shopkeeper will pay far more attention to importance of purchasing the goods for his business due to:

A) ever rising costs.
B) slow technological changes.
C) dislike to learn about technical information.
D) decrease in the quality of goods.

Question 33

Which is NOT a back office operation?

A) cataloguer
B) operation theatre nurse
C) waiting staff
D) mechanics

Question 34

Total quality management refers to a system that:

A) is integral to any organisation's strategy.
B) ensures maintenance of quality of product.
C) ensures maintenance of quality of service.
D) maintains customer loyalty.

Question 35

Which aims form part of Deming, Juran and Ishikawa's TQM philosophy?

A) Have useful products & services - foster employees' work satisfaction
B) Stay in business - aid community stability
C) Meet customer needs - foster employees' growth
D) All of the given answers

Question 36

'Manage by fact' means:

A) data collection is done from all levels.
B) data is used to identify priority problems.
C) trace causes for problems.
D) all of the given answers

Question 37

Performance is an important quality dimension for a hospital. A client would expect:

A) prompt service and fast discharge.
B) prompt service and quality pain management.
C) free service and friendly staff.
D) clean bed and tasty meals.

Question 38

Benchmarking is a process used to:

A) identify weaknesses in the production and industry.
B) blame employees for slackness.
C) identify best practice.
D) move forward and become known.

Question 39

The first step in the six sigma approach is called _______________ .

A) measure
B) understand
C) explain
D) define

Question 40

World class companies share:

A) operating locations world wide.
B) excellent organisation core operations.
C) customer services on every continent.
D) same reliable process followed at each level of the organisation.

Question 41

Purchasing is a process of acquiring for remuneration of goods and services.

Question 42

Operations management affects the very core of any organisation, namely to plan, control direct and set strategies.

Question 43

The service for a customer ordering a standard car with an optional sunroof can be classified as a high consumer service.

Question 44

The four stages on operations management's strategic role by Wheelwright and Hayes suggest that the operations management function has different roles at each individual stage determining the strategy of the organisation.

Question 45

When an operations manager in a planning session talks about facilities, s/he refers to major physical inputs that substantially determine productivity and involve significant capital investment.

Question 46

Advancement in technology has made management operations far more tedious because too many people need to be consulted before moving on with the task.

Question 47

A master production schedule is the next step from the planning process into the production process.

Question 48

What would you identify as the core operational role in an organisation?

Question 49

What equation would you use to measure total productivity? How does that differ from an equation for partial-factor productivity?

Question 50

How do manufacturing and service organisations differ in their needs and expectations?

Question 51

What elements are used in operations management to transform inputs into goods and services?

Question 52

What approaches would you use to compare and contrast different operational strategies?

Question 53

When designing and utilising facilities what four steps are related to expansion and contracting decisions?

Question 54

How are each of the four main facility layouts used?

Question 55

How does technology help with planning and controlling operations activities?

Question 56

How does the Just-in-Time inventory system relate to control and link to the external environment?

Question 57

What issues are most important in discussions of the future trends in operations management?