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business
operations management

Questions and Answers of Operations Management

Which of the following factors have lesser affect on the productivity of an organization:(a) government regulations(b) process automation(c) diversification(d) process layout(e) inventory management.
Which of the following is not the primary activity in an organization:(a) operations(b) marketing and sales(c) human resource development(d) inbound logistics(e) after sales services.
Which of the following can have the most impact on a company’s productivity:(a) innovation(b) industrial dispute(c) investment(d) interest rate(e) inflation rate.
Organizational productivity can be improved by the following except:(a) employees involvement and empowerment(b) customer orientation(c) effective leadership and change management(d) continuous
Which of the following cannot influence service productivity:(a) efficiency of the resources(b) utilization of the resources(c) number of service outlets(d) cost of input resources(e) effectiveness
Which of the following is not a strategic determinant of service productivity:(a) economies of scale(b) number of suppliers(c) variation over time in demand(d) variety of services offered(e)
Which of the following may not be an order winning criteria:(a) meeting customer quality expectation(b) lowering costs(c) on-time delivery(d) design ability(e) only (a).
Continuous improvement is a system to improve total quality.True or false?
The Kaizen approach requires operational managers to be process-orientated. True or false?
State four types of benchmarking.
BPR is involved with radical redesign of business functions.True or false?
A process-orientated manager should put high value on:(a) skills development(b) employee morale(c) communication(d) all of the above(e) only (a).
The 5S system includes the following elements:(a) tidiness(b) order(c) discipline(d) cleanliness(e) all of the above.
The 5S system is an initial stage of TQM implementation. True or false?
Japanese companies are not famous for group-based activities.True or false?
List three Japanese team work characteristics.
Which of the following does group-based activity not achieve:(a) improved productivity(b) increased profits(c) financial rewards for group leader(d) improved morale (e) none of the above.
To create a team culture, which of the following should an organization not do:(a) organize teams around functions(b) use cross-functional teams(c) integrate people abilities with the team
Team working can lead to the following, except:(a) co-operation between individuals(b) higher staff turnover(c) greater job satisfaction(d) higher social satisfaction(e) lower absenteeism.
Lean production is ‘lean’ because it results in less of the following, with the exception of:(a) human effort(b) manufacturing space(c) investment(d) inventory to keep(e) defects.
Briefly explain the ‘five whys’ investigative system.
Total integrated management (TIM) is a Japanese approach aimed at improving product quality. True or false?
List six management factors of the Japanese TIM framework which can significantly influence management and organizational productivity.
Which of the following elements is not part of the TIM ‘management cycle’:(a) vision(b) strategy(c) planning(d) control(e) processes.
Key elements of a continuous improvement programme include:(a) benchmarking(b) team working(c) process redesign(d) all of the above(e) none of the above.
Which of the following will companies aiming to achieve world-class status not benefit from:(a) only top management involvement in strategic decisionmaking(b) competitive planning(c) visible
Insert the missing words in the following statement.‘The capacity of the organization may be defined as its _______ to undertake the ____ demanded by its ____.’
Plans:(a) must be computerized(b) never change(c) specify how resources will be allocated(d) ignore corporate objectives(e) balance demand and corporate objectives.
Where one process supplies another process this is a situation of independent demand. True or false?
The general direction of the demand pattern is called its ‘trend’.True or false?
In your own words define the meaning of seasonality.
Seasonality may only occur at quarterly periods. True or false?
Unassignable variations in demand are:(a) caused by trends(b) caused by seasonality (c) caused by unknown factors.
Which mean absolute deviation shows the most accurate forecast:(a) the lowest mean absolute deviation(b) the highest mean absolute deviation.
Identify the three main features of a good forecast.
Organizations should always plan to:(a) exceed expected demand(b) keep capacity below demand(c) match capacity to demand exactly(d) adopt the level of capacity which seems to best fit the situation.
Identify three terms that refer to the basic question of how much of the total task should be performed by the operation.
Give at least three ways of increasing human resource capacity in the short term.
Name at least three ways that resource usage can be improved in the short term.
Level capacity means:(a) adjusting capacity to follow demand(b) keeping capacity fixed(c) always having too much capacity.
Modifying the output has little to offer as a way of managing capacity better. True or false?
How can marketing help operations to manage capacity in the short term?
All of the following make queuing a more positive experience except:(a) entertaining the queue(b) informing the queue of the duration of the waiting time(c) allowing ‘queue jumping’(d) avoiding
Insert the missing words in the following statement.‘The task of allocating people to processes in order to get the work done is known as __________ __________.’
Which of the following is not an objective of scheduling:(a) providing excess capacity(b) ensuring on-time delivery(c) providing optimum efficiencies(d) balancing cash flow.
Forward scheduling brings the following advantages except:(a) high utilization(b) preserving future capacity(c) committing resources until absolutely necessary.
List at least two factors to be used in evaluating the best scheduling option.
Sketch in outline the basic format of a Gantt chart.
Materials management is only relevant to manufacturing organizations. True or false?
Items stored and waiting to be worked on are called:(a) finished goods(b) work-in-progress(c) raw materials.
Insert the missing words in the following statement.‘________ ________ are materials which are being deliberately used to protect the operation from the otherwise disruptive effects of
Supplier lead time is:(a) the time it takes to place an order(b) the rate at which materials are used(c) the time from an order being placed to the materials being received(d) the time it takes to
Identify two adverse consequences of running out of stock.
Identify two adverse consequences of having too much stock.
The customer service level can be indicated by:(a) the number of orders not met(b) the percentage of orders met on time(c) neithera) nor b)(d) botha) and b).
Insert the missing word in the following statement. 'The formula- total cost of sales average inventory value is known as inventory_
The 80/20 rule is also known as:(a) Parkinson’s law(b) the Peter principle(c) Pareto’s rule.
In an ABC analysis, what percentages of the total value should be represented by the A, B and C categories?
Independent demand is demand which:(a) results from the demand for other items(b) does not depend on the demand for other items (c) is controlled by the organization.
The costs of holding stock derive from all of the following except:(a) interest(b) insurance(c) deterioration(d) stock management(e) preparing supplier orders.
The costs of placing orders derive from all of the following except:(a) preparing material specifications(b) council tax(c) tracking orders(d) processing invoices(e) receiving ordered materials.
Holding costs are usually under 10 per cent of the purchase price. True or false?
As the order size increases:(a) the ordering costs decrease(b) the ordering costs increase(c) the holding costs decrease(d) the holding costs increase(e) costs are unaffected.
The economic order quantity formula calculates the point where holding costs are equal to ordering costs. True or false?
List three assumptions which need to be borne in mind before applying the simple EOQ formula.
Decreasing order quantities from the calculated EOQ will:(a) decrease the total holding and ordering cost(b) have no effect on the total holding and inventory cost(c) increase the total holding and
Just-in-time costing systems usually have the effect of decreasing the EOQ. True or false?
The risk of stockout which an organization is prepared to accept influences the reorder level. True or false?
The ‘two-bin’ system is an example of:(a) continuous stock review(b) periodic stock review(c) no stock review.
Under periodic review systems stock levels are:(a) monitored very frequently(b) monitored at set periods(c) replenished by fixed order quantities.23 Under continuous review systems stock costs are
Master scheduling is performed in manufacturing organizations only. True or false?
In a master schedule, on-hand stocks are those stocks:(a) available at the start of the week(b) required by the forecast(c) left at the end of the week.
The master schedule is a key document because:(a) it forms the basis of promises to customers(b) it is used by finance in profit and cash forecasts(c) it forms the basis of detailed resource plans(d)
In make-to-order operations:(a) stock is stored as finished goods(b) orders precede the master schedule.
State two criteria by which a master schedule might be assessed.
Time-fencing means:(a) changes to the schedule are not allowed at all(b) changes to the schedule may be made at any time(c) changes to the schedule may only be made by the Chief Executive(d) time
What does MRP 1 stand for?
Identify two types of information contained within the inventory status records.
MRP uses:(a) backward scheduling(b) forward scheduling(c) mixed scheduling.
Insert the missing words in the following statement.‘The ____ of _________ is a hierarchical list of all the parts needed to make up one end item.’
Data integrity is vital in MRP systems. True or false?
An indented bill of materials:(a) shows only materials needed for one level of parent items(b) is formatted to be right justified(c) shows all of the materials needed to make one end item.
What does MRP 2 stand for?
Identify two programme modules which MRP 2 uses but which MRP 1 does not possess.
What does ERP stand for?
Insert the missing words in the following statement.‘The aim of ERP is to provide one ___________ ______ for the whole organization.’
What does OPT stand for?
Insert the missing word in the following statement.‘OPT is an approach to scheduling which places the primary focus upon the __________ process or processes.’
Recall three of the ten operating rules of OPT.
What does JIT stand for?
Under JIT waste can mean:(a) over-production(b) errors(c) waiting time(d) storage space(e) all of the above.
Insert the missing word in the following phrase.‘The JIT system of control is known as ______.’
A single kanban system is:(a) a pull system(b) a push system(c) a mix of both pull and push systems.
Under JIT systems the economic batch quantity formula does not apply. True or false?
Fill in the missing words in the following statement.‘Under Johnson’s rule, if the shortest time for a job is on the first facility, schedule the job start time for as _____ as possible.’
The formula is known as:(a) the run-out ratio(b) the critical ratio. inventory remaining demand rate
Define a project.
List four examples of a project.
What are the main goals of project management?
Describe three characteristics common to all projects.

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