OPERATION MANAGEMENT FINAL EXAM
I. Choose the best answer from the given alternatives and write on
the space provided
1. The maximum designed service capacity or output rate is known as?
a) capacity cushion b) bottleneck operation c) effective capacity d) design capacity
e) Maximum capacity
2. The time horizon for an aggregate plan is typically:
A. 0 - 3 months B. 3 - 6 months C. 24 - 60 months D, 1 – 2 years E. None of the above
3. A special arrangement of machinery and equipment to focus on production of a single product or
group of related products" describes what layout type?
A. fixed-position layout C. . intermittent production D. . focused factory E.. work cell
B. warehouse layout F. A good layout requires determining
4. Which of the following terms implies an increase in responsibility and control?
A. job rotation [Link] enrichment C. job [Link] enlargement
E. job satisfaction
5. 5. Identify the final act of releasing job orders to workers for completion.
A. job loading [Link] C. routing sheet [Link] sequencing E. none
6. An effective layout can help a firm to achieve the following, except:
A. Higher utilization of space, equipment, and people.
B. Improve flow of information, materials, or people.
C. More convenience to the customer.
D. Improved employee morale and safer working conditions. E. None of the above
7. An aggregate planning strategy which produces at a constant rate and uses inventories is
called___________.
A. Chase demand strategyC. Level production strategy
B. Stable work-force strategy D. Mixed strategy
8. The design capacity for engine repair in X Company is 80 trucks per day. The effective capacity is 40
engines per day and the actual output is 36 engines per day. What is the rate of utilization?
A) 45% B. 90% C. 80% D. 40%
9. On the basis of the above question, what is the rate of efficiency of the operation?
A) 45% B. 90% C. 80% D. 40%
10. A good layout requires determining____________________
A. material handling requirements B. capacity and space requirements
C. environment and aesthetics D. cost of moving between various work areas
E. all of the above
11. An operations task performed at Hard Rock Café is___________________
A. borrowing funds to build a new restaurant B. advertising changes in the restaurant menu
C. calculating restaurant profit and loss D. preparing employee schedulesE. all of the above
12. Operations management is applicable ______________________
A. mostly to the service sector
B. to services exclusively
C. mostly to the manufacturing sector
D. to all firms, whether manufacturing and service
E. to the manufacturing sector exclusively
13. Which of the following would not be an operations function in a fast-food restaurant?
A. advertising and promotion
B. designing the layout of the facility
C. maintaining equipment
D. making hamburgers and fries
E. purchasing ingredients
14. Reasons to study Operations Management include
A. studying why people organize themselves for free enterprise
B. knowing how goods and services are consumed
C. understanding what human resource managers do
D. learning about a costly part of the enterprise
E. all of the above
15. The "Father of Scientific Management" is
A. Henry FordB. Frederick W. Taylor C. W. Edwards Deming
C. .Frank Gilbreth D. just a figure of speech, not a reference to a person
16. Which is not true regarding differences between goods and services?
A, Services are generally produced and consumed simultaneously; tangible goods are not.
B. Services tend to be more knowledge-based than products.
C. Services tend to have a more inconsistent product definition than goods.
D. Goods tend to have higher customer interaction than services.
E. None of the above is true.
17. Which of the following is true about business strategies?
A. An organization should stick with its strategy for the life of the business.
B. All firms within an industry will adopt the same strategy.
C. Well defined missions make strategy development much easier.
D. Strategies are formulated independently of SWOT analysis.
E. Organizational strategies depend on operations strategies.
18. Which of the following statements about organizational missions is false?
A. They reflect a company's purpose.
B. They indicate what a company intends to contribute to society.
C. They are formulated after strategies are known.
D. They define a company's reason for existence.
E. They provide guidance for functional area missions.
19. Which of the following is not an operations strategy?
A. response B. low-cost leadership C. differentiation D. experience
E. All of the above are operations strategies.
20. Costs, quality, and human resource decisions interact strongly with the _______ decision.
A. layout design B. process and capacity design C. supply-chain management
D. goods and service design E. All of the above are cor
[Link] “TRUE’ if the statement is correct and “FALSE” if the statement is incorrect
1. A product will always be in the same stage of its product life cycle regardless of the countr
2. An organization's strategy is its purpose or rationale for an organization's existence
3. An organization's ability to generate unique advantages over competitors is central to a successful
strategy implementation
4. All organizations, including service firms such as banks and hospitals, have a production function.
5. Henry Ford is known as the Father of Scientific Management.
6. Measuring the impact of a capital acquisition on productivity is an example of multi-factor
productivity.
7. Operations strategies are implemented in the same way in all types of organizations.
8. Bakeries, Education and Printing shops are examples batch processes.
9. There is no standard route that all products take through the facility.
10. In repetitive operations Resources are organized in a line flow to efficiently accommodate
production of the product.
11. Operations management may not seeks to increase the quality, efficiency, and responsiveness of
the firm.f
12. All organizations make decisions and follow a similar path.
13. Strategy is a common vision that unites an organization, provides consistency in decisions, and
keeps the organization moving in the right direction.
14. Anybody working in the organization should understand the importance of the quality in fulfilling
the aims of the business.
15. Once a business strategy has been developed, an operations strategy must be formulated.
16. Product design must support product manufacturability.
17. Consumer’s and producer’s perspectives depend on each other.
18. Quality culture is basically incorporation of quality in the overall system of an organization.
19. Service is an intangible product, which is produced and consumed simultaneously.
20. Aggregate planning may not determines the resources available to operations to support the overall
business plan.
Answers
Part One: - choice
1. D 11. E
2. E 12. D
3. E 13. C
4. B 14.E
5. B 15 ,B
6.E 16.A
7.C 17, C
8.A 18. C
9. B 19.E
10. E 20.E
Part Two:- True/False
1. FS [Link]
2. FS 12. TR
3. TR [Link]
4. TR [Link]
[Link] [Link]
6. FS 16. TR
7. FS 17. TR
[Link] 18. TR
9. FS 19. TR
10. TR 20. FS
