Production & Operation Management (Practice Question with Answer)

Prepared By: MBA GROUP

Q1. Key Performance Indicators (KPIs) are designed to.

Provide vague operational insights
Drive improvements based on measurable metrics
Discourage data-driven decision-making
Reduce strategic alignment

Q2. The productivity formula calculates.

Input per output unit
Output per input unit
Costs per output unit
Profits per input unit

Q3. What role does aesthetics play in product design?

It is irrelevant
Decreases the product’s marketability
Contributes significantly to consumer perception
Reduces user experience

Q4. What purpose is failure Mode Analysis used for in product reliability?
To ignore potential risks
To identify and mitigate potential failure modes
To increase the complexity of designs
To decrease product safety standards

Q5. Continuous improvement is facilitated by.

Discouraging employee involvement
Avoiding feedback and adaptation
Encouraging incremental improvements and efficiency
Maintaining operational status quo

Q6. What defines production in the context of production management?

Production & Operation Management (Practice Question with Answer)
Prepared By: MBA GROUP

The process of selling products

The methodical transformation of material to create or improve products
The process of marketing and finance
The method of human resource

Q7. The PDCA cycle is used for.

Ignoring operational feedback
Continuous refinement and improvement
Decreasing operational efficiency
Avoiding strategic planning management

Q8. Benchmarking helps businesses.

Stay isolated from industry trends
Compare against industry standards to identify improvements
Avoid adopting best practices
Increase operational inefficiencies

Q9. Which of the following is NOT a method of production/ transformation?

Disintegration
Assembling of products
Service
Decomposition

Q10. Productivity improvement is important for

Decreasing competitiveness
Increasing costs
Enhancing competitiveness and sustainable success
Limiting market responsiveness

Q11. What does productivity assessment in manufacturing focus on?

Production & Operation Management (Practice Question with Answer)
Prepared By: MBA GROUP

Output per input unit

Exclusively on labour costs
Ignoring efficiency improvements
Reducing product variety

Q12. Globalisation strategies are critical for.

Restricting market access
Expanding operations and market reach globally
Maintaining focus on local markets only
Increasing dependency on a single market

Q13. How does lean manufacturing contribute to manufacturing operations?

By increasing waste and redundancies
Through continuous improvement and waste elimination
Ignoring efficiency and focusing on output only
Discouraging employee involvement

Q14. Lean methodology focuses on

Increasing waste and redundancy
Eliminating waste in all forms
Ignoring process improvements
Decreasing value delivery

Q15. Innovation in continuous improvement is important for.

Maintaining status quo
Step-change enhancements in operations
Reducing market competitiveness
Limiting operational flexibility

Q16. Volume in capacity measurement is crucial because_

Production & Operation Management (Practice Question with Answer)
Prepared By: MBA GROUP

It solely determines the speed of production

It indicates the scale and how many units can be handled
It is a fixed measure across all industries
It is less important than time in determining capacity

Q17. How do property tax rates influence location decisions?

By being a minor consideration in operational planning
Essential for understanding the impact on long-term operational costs
Unimportant for service-oriented businesses
Only relevant to businesses in the real estate sector

Q18. What is the primary function of acceptance sampling?

To inspect each unit in a batch thoroughly
To infer the quality of a whole batch from a sample
To increase production time and costs
To eliminate the need for quality control

Q19. The role of customer experience in service design is to.

Focus solely on internal efficiencies
Prioritise the brand over customer satisfaction
Plan and oversee interactions throughout the customer journey
Exclude customer feedback in service development

Q20. What is a critical step in the location decision procedure?

Ignoring market changes
Conducting a SWOT analysis to assess needs and objectives
Choosing a location based solely on current trends
Focusing exclusively on locations with the highest taxes

Q21. What is the benefit of implementing Flexible Manufacturing Systems?

Production & Operation Management (Practice Question with Answer)
Prepared By: MBA GROUP

Reducing the ability to adjust production processes

Increasing lead times for product delivery
Enhancing overall operational efficiency
Prioritising manual processes over automation

Q22. When measuring capacity, why is considering time important?

It determines the static number of units produced
It affects how quickly outputs can be produced or occupied
It is irrelevant to capacity measurement
It only applies to service industries

Q23. Why is managing capacity fluctuations with inventory important?

It ensures constant underutilisation of resources
Helps maintain service levels during peak demands
Encourages ignoring demand patterns
Promotes stockpiling and high inventory costs

Q24. What role do cost savings play in location decisions?

They are irrelevant to the decision-making process
Primary factor for choosing locations with high operational costs
Crucial for selecting locations to reduce transportation and production costs
Only considered for luxury goods production

Q25. How can political and social changes influence location decisions?
By providing consistent conditions for business operations
They have no impact on location decisions
Through changes in policies that can affect business operations and sustainability
requirements
By ensuring tax benefits remain constant

Q26. The role of CVP Analysis in capacity planning is to_

Production & Operation Management (Practice Question with Answer)
Prepared By: MBA GROUP

Ignore the financial outcomes of capacity decisions

Analyse the financial implications of different capacity levels
Focus on non-financial aspects of capacity
Simplify capacity decisions to cost considerations only

Q27. What is the primary goal of quality assurance in operations

management?
To reduce production costs only
To ensure customer satisfaction through consistent quality
To focus solely on internal processes
To ignore customer feedback

Q28. Multifunctional teams support capacity optimisation by_

Reducing operational flexibility
Fostering adaptability and comprehensive skill application
Encouraging siloed departmental operations
Limiting the scope of tasks that can be addressed

Q29. How do construction costs and quality influence location decisions?

By being the sole determinant of location choice
They play no role in the decision- making process
By affecting the operational efficiency and initial investment
Only impacting the aesthetic aspects of the facility

Q30. Inventory management in capacity planning is crucial for_

Maintaining high inventory levels regardless of demand
Strategically managing capacity to meet fluctuating demand
Overlooking the costs associated with inventory holding
Encouraging a static approach to inventory management

Q31. Programmable automation is characterised by

Production & Operation Management (Practice Question with Answer)
Prepared By: MBA GROUP

No need for reprogramming for new products

The ability to change operation sequences for different products
Fixed operation sequences
The inability to produce in batches

Q32. Maintenance and replacement of machines are important to prevent

Employee turnover
Machine breakdowns
Marketing strategies
Financial investments

Q33. What does modular production allow in manufacturing?

Elimination of customisation
Flexibility to meet diverse customer needs
Reduction in the variety of products offered
Sole focus on mass production

Q34. Why is technology integration challenging in both sectors?

It's irrelevant in modern operations management
Offers no real benefit to productivity or quality
Requires strategic planning and can enhance quality control
Only applies to manufacturing processes

Q35. Scalability and flexibility in modular design focus on what future aspect?
Reducing product variety
Anticipating and accommodating future changes
Decreasing production efficiency
Ignoring market demands

Q36. The essence of flexibility and responsiveness lies in_

Production & Operation Management (Practice Question with Answer)
Prepared By: MBA GROUP

Ignoring customer needs

Rigidly sticking to plans despite market changes
Swiftly pivoting in response to market changes
Increasing operational delays

Q37. The relationship between production management and marketing

involves___
No interaction
Marketing dictating production processes
Production supporting the ease of selling quality products
Production determining marketing strategies

Q38. What is the significant impact of the perishability of services?

Increases inventory costs
Makes yield management strategies critical
Reduces the importance of customer satisfaction
Simplifies production scheduling

Q39. Differentiation aims to ____

Lower product quality
Create standard, undistinguished products
Provide distinctive offerings exceeding standard market options
Avoid innovation and design efforts

Q40. The objective of minimising the total cost of production involves_

Increasing the use of resources
Continuous elimination of value-added activities
Improving labour productivity
Both B and C

Q41. What challenge does service variability introduce?

Production & Operation Management (Practice Question with Answer)
Prepared By: MBA GROUP

Simplifies process standardisation

Decreases the need for employee training
Makes consistency and efficiency harder to maintain
Reduces customer satisfaction levels

Q42. What is the key difference between service and manufacturing

operations?
Services involve less customer interaction than manufacturing.
Services and manufacturing both produce tangible products.
Manufacturing operations produce tangible goods, while services offer intangible
benefits.
Manufacturing requires more customisation than services.

Q43. What is the primary objective of production management?

To increase sales
To produce goods and services of the right quality and quantity at a minimum cost
To enhance the company's marketing strategies
To invest in new technologies

Q44. What does shutting down one location and moving to another entail?
An easy and costless process
Careful consideration of costs and benefits
A decision based solely on employee preference
Always results in decreased profits

Q45. In the Make or Buy Analysis, what factors are considered?

Only the short-term costs
Cost, expertise, and strategic implications
The decision-makers personal preference
The availability of technology only

Q46. One key advantage of a flexible manufacturing system is.

Production & Operation Management (Practice Question with Answer)
Prepared By: MBA GROUP

The inability to respond to market changes

Increasing lead times for product delivery
Efficient adaptive resource allocation to meet fluctuating demand
Requiring extensive manual intervention for adjustments

Q47. How do ISO 9000 standards benefit organisations?

By reducing customer satisfaction
Through providing a framework for effective quality management
By ignoring operational efficiency
Through limiting market access

Q48. What is the centre of gravity method primarily used for?

Determining the physical weight of a facility
Identifying the geographic centre to minimise transportation costs
Calculating the gravitational pull of a location
Assessing the cultural significance of a location

Q49. How does the factor rating method work in location analysis?
By ignoring qualitative factors
Assigning weights and scores to various factors to find the most suitable location
Focusing solely on the cost of land
Using a random selection process

Q50. Strategic inventory management is used to.

Increase service disruptions
Serve as a buffer against demand fluctuations
Discourage analysis of inventory costs and benefits
Promote uniform inventory levels irrespective of demand

Q51. Flexibility in capacity planning allows organisations to

Production & Operation Management (Practice Question with Answer)
Prepared By: MBA GROUP

Strictly adhere to outdated systems

Respond dynamically to shifts in demand
Reduce their service offerings
Increase system rigidity

Q52. The primary use of CVP analysis in capacity planning is to_________

Simplify decision-making by ignoring costs
Make informed choices regarding service capacity
Concentrate exclusively on volume increase
Overlook profit implications

Q53. What is a key principle of KAIZEN?

Large-scale changes to improve quality
Incremental, continuous improvements for long-term success
Focusing on top management's role in quality improvement
Reducing employee involvement in the improvement process

Q54. How does customer involvement impact service delivery efficiency?

By always enhancing service efficiency
Can either enhance or hinder efficiency, depending on the management
It is irrelevant to service processes
Solely decreases operational costs

Q55. Stakeholder Mapping in service design is used to_

Decrease understanding of customer needs
Visualise and prioritise key stakeholders' needs
Focus solely on internal stakeholders
Ignore external influences on the service

Q56. How does Six Sigma use statistical methods?

Production & Operation Management (Practice Question with Answer)
Prepared By: MBA GROUP

To ignore process variability

To analyse and reduce process variability for high-quality outcomes
Solely for documentation purposes
To increase process defects

Q57. How does facility design impact effective capacity?

Through the aesthetic appeal of the facility
By determining the workflow and efficiency
By having no significant effect
Solely through the cost of construction

Q58. What adds complexity to service capacity planning?

Stability in service demand
Variability in service demand and delivery
Predictable customer behaviour
Tangible outputs of services

Q59. Benchmarking involves_

Avoiding comparison with industry standards
Comparing operational performance against industry standards
Decreasing operational efficiency
Ignoring best practices

Q60. What is a crucial aspect of defining competitiveness in operations?

Focusing solely on cost reduction
Prioritising efficiency, quality, and innovation
Ignoring market demands
Limiting operational changes

Q61. How does standardisation impact economies of scale?

Reduces economies of scale
Production & Operation Management (Practice Question with Answer)
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Has no impact on production efficiency

Achieves economies of scale by standardising components
Increases material costs

Q62. What does the Idea Generation phase focus on?

Finalising product designs
Brainstorming and cultivating creative concepts
Creating physical prototypes
Conducting market assessments only

Q63. Component Modularity is aimed at enhancing what aspect of production?

Flexibility and ease of maintenance
Complexity of design
Time taken for idea generation
Number of prototypes needed

Q64. Which of the following is a key component of service operations?

Minimising customer participation
Human resources management
Automation of all processes
Producing goods in large quantities

Q65. What is the primary goal of Reducing Time-to-Market in Concurrent

Engineering?
To extend the product development lifecycle
To accelerate product development and minimise lead times
To complicate the design and production processes
To discourage collaboration between design and manufacturing

Q66. Implementing cross-training and multifunctional teams__..

Hinders effective capacity planning
Production & Operation Management (Practice Question with Answer)
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Enables a rigid approach to demand management

Promotes workforce versatility and operational flexibility
Decreases the ability to meet changing service demands

Q67. Six Sigma focuses on

Maximising process variations
Ignoring data-driven improvements
Reducing process variation and defects
Decreasing quality control efforts

Q68. What strategy involves extending the product lifecycle through

innovation during the maturity phase?
Decreasing product quality
Ignoring market saturation
Implementing product variations and new distribution channels
Stopping production

Q69. Flexibility in capacity planning is crucial for_

Decreasing responsiveness to market demands
Adhering strictly to long-term forecasts without adjustments
Adjusting to dynamic market conditions
Ignoring changes in customer preferences

Q70. The Review and Feedback Control phase in location planning ensures.
Plans and timelines are ignored
Adherence to plans, timelines, and efficiency
Socio-psychological aspects of the move are overlooked
Relocation processes are executed without any planning

Q71. The difference between Customer Experience and Service Design

primarily lies in their
Production & Operation Management (Practice Question with Answer)
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Identical approach to improving services

Focus on, internal versus external aspects of service delivery
Disregard for customer satisfaction
Emphasis on product design over service functionality

Q72. Which of the following best describes design capacity?

The output under real-world constraints
The theoretical maximum output under ideal conditions
The tangible real-time output
The capacity after accounting for maintenance

Q73. How do control charts assist in process stability?

By disregarding variations in the process
Providing a visual tool for monitoring process variations
Limiting the analysis to post-production stages
Encouraging inconsistency in quality control measures

Q74. Operational implications of expansion require assessment of

Only the colour scheme of new facilities
Efficiency of new processes and technology integration
Decreasing the scale of operations
Avoiding any form of workforce training

Q75. The strategic optimisation of capacity utilisation aims to _-

Reach 100% utilisation at all times
Balance efficiency with the system's strength
Ignore the dynamic nature of demand
Increase maintenance costs

Q76. Multifunctional teams in capacity planning help by_

Reducing collaboration across functions
Production & Operation Management (Practice Question with Answer)
Prepared By: MBA GROUP

Increasing operational rigidity

Addressing diverse tasks effectively
Focusing on individual achievements over team success

Q77. The primary goal of capacity utilisation is to

Exceed the system's maximum potential output
Ensure the system meets demand without overutilisation
Operate below minimum efficiency levels
Focus on achieving 100% utilisation regardless of demand

Q78. How does the factor rating method assist in location decisions?
By simplifying the decision to a coin toss
Ignoring qualitative factors in decision-making
Weighing important factors in determining the most suitable location
Focusing exclusively on the highest cost factors

Q79. What are the determinants of effective capacity?

Factors that have no real impact on output
Only the theoretical metrics of capacity
Elements like facility design and technology that influence actual output
The preferences of the organisation's CEO

Q80. What are the components of quality costs?

Only the costs of non-compliance
Prevention, appraisal, and failure costs
Solely external failure costs
Costs associated with overproduction only

Q81. What is a key benefit of using CAD in product design?

Increasing design errors
Production & Operation Management (Practice Question with Answer)
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Streamlining the design process and enhancing precision

Decreasing the ability to share designs across teams.
Limiting the ability to test designs under various conditions.

Q82. Which phase does the integration of feedback from prototyping into the
final product design occur?
Concept Development
Prototyping and Testing
Design Finalisation
Idea Generation

Q83. The process of determining the duration of tasks in production is known

as?
Routing
Scheduling
Forecasting
Budgeting

Q84. What is the first phase in the product design and development process?
Concept Development
Idea Generation
Prototyping and Testing
Design Finalisation

Q85. What do agile service processes aim for in service delivery?

Rigidity and inflexibility
Slow adaptation to market changes
Quick adjustments to meet customer needs.
Decreasing technology use

Q86. What is a critical aspect of creating a user-friendly design?

Complicating interfaces
Production & Operation Management (Practice Question with Answer)
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Ignoring ergonomics
Streamlining interfaces and simplifying controls
Focusing on the product's complexity

Q87. How do businesses benefit from delayed differentiation?

By limiting flexibility
Increasing inventory costs
Enhancing responsiveness to market demands
Decreasing product variety

Q88. Operational efficiency directly reflects

Increased production costs
Productivity and competitive edge
Reduced market responsiveness
The inability to meet market demands

Q89. What is the primary benefit of standardisation in product design?

Increasing customisation
Achieving economies of scale
Compromising product quality
Reducing production efficiency

Q90. What is the primary goal of the Prototyping and Testing phase?
Brainstorming creative concepts
Refining ideas into concrete concepts
Ensuring product functionality, safety, and reliability
Integrating feedback into the final design

Q91. What is the significance of sales taxes in location decisions?

They have a negligible effect on operational costs
Production & Operation Management (Practice Question with Answer)
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Vital for capital-intensive projects due to the impact on purchases

Only considered by retail businesses
Important solely for international companies

Q92. What is the purpose of inspection in quality control?

To ignore defects and deviations from quality standards
To identify and correct defects to meet quality criteria
Solely to increase production costs
To reduce employee involvement in quality control

Q93. The purpose of Iterative Prototyping in service design is to

Avoid testing concepts with users
Decrease the quality of service delivery
Identify and optimise the product or service
Focus solely on final product development

Q94. The significance of scheduling and resource allocation lies in

Increasing downtime and resource wastage
Maximising capacity utilisation
Overlooking demand patterns
Simplifying operational complexities

Q95. Why is understanding customer feelings a focus of Customer

Experience?
It is considered irrelevant in service design
To meet customers' emotional needs at every touchpoint
To focus solely on the service's internal workings
To disregard how services operate behind the scenes

Q96. What is the goal of combining Customer Experience and Service Design
strategies?
Production & Operation Management (Practice Question with Answer)
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To complicate the customer journey

To ensure a smooth customer journey
To focus only on the digital experience
To prioritise internal processes over customer satisfaction

Q97. What does the DMAIC process in Six Sigma focus on?
Increasing variability in processes
Systematically improving processes for higher quality
Ignoring data and statistical analysis in decision-making
Focusing improvement efforts on the final product only

Q98. Effective resource allocation ensures

Resources are underutilised
Maximising capacity usage without affecting quality
Decreasing operational efficiency
Overallocation of resources to non-critical areas

Q99. Managing perishability in services requires

Ignoring time-sensitive attributes
Understanding and addressing time-sensitive service offerings
Focusing solely on non-perishable aspects
Standardising all services to eliminate variability

Q100. How does intangibility affect service capacity planning?

Makes it easier to quantify capacity needs
Poses unique challenges in quantifying and planning capacity
Has no impact on capacity planning
Simplifies the capacity planning process

Q101. What is a key strategy in mass customisation for managing supply

chains?
Production & Operation Management (Practice Question with Answer)
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Decreasing supply chain efficiency

Ignoring inventory management
Streamlining logistics for customised production
Reducing the number of product options

Q102. Recycling Component Commonality promotes

Designing products without considering recyclability
Using uncommon components to complicate recycling
Using common recyclable components for sustainability
Focusing on single-use designs

Q103. Operational Excellence aims to

Meet basic production requirements only
Constantly improve processes and quality
Increase inefficiencies
Focus on quantity over quality

Q104. Design for Manufacturing (DFM) focuses on optimising.

Product designs for manual manufacturing processes
Product designs for efficient manufacturing processes
The use of expensive materials
Design complexity without considering production costs

Q105. Why is customer-centric production planning essential in

manufacturing?
To ignore market trends and focus solely on efficiency
It ensures alignment with actual demand, minimising overproduction
To completely eliminate customisation
To reduce the need for inventory management

Q106. Performance metrics (KPIs) are used to

Guide decisions without data
Production & Operation Management (Practice Question with Answer)
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Drive improvements based on quantitative insights

Reduce operational transparency
Ignore operational challenges

Q107. The concept of Right Quantity in production management ensures__

Production far exceeds the demand
The right number of goods is produced to meet the demand
Minimal production to save costs
Overproduction for inventory stock

Q108. What does lean manufacturing primarily aim to eliminate?

Production capacity
Waste and inefficiencies
Employee involvement
Customisation options

Q109. How does mass customisation differ from standardisation?

By reducing product variety
Offering personalised products efficiently
Decreasing production costs
Ignoring customer preferences

Q110. How do legal considerations impact product design?

They encourage design infringement
Have no impact on design processes
Involve navigating intellectual property protection
Promote copying competitor designs

Q111. Process Design Principles in service design emphasise

Adding complexity to customer interactions
Production & Operation Management (Practice Question with Answer)
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Simplification and elimination of non-value-adding activities

Segregation of work to increase errors
Increasing steps and rules in processes

Q112. What is the significance of the nature of location decisions in

production and operations?
It is a minor part of strategic planning
Only applicable to new businesses
A fundamental part of strategic planning affecting costs, profits, and market service
Unrelated to operating costs and profit margins

Q113. Customer involvement in service processes is

Unimportant for service delivery
A critical consideration in managing service capacity
Detrimental to service efficiency
Only relevant for product-based businesses

Q114. The primary difference between product and service design is that
service design focuses on
Creating tangible items
The experience of using a service
Only the aesthetic aspect of products
The manufacturing process

Q115. In the context of location decisions, what is a significant factor for retail
analysts at the national level?
Personal preferences of executives
Astrological predictions
Choosing areas for new stores based on market analysis
Random selection
Q116. What is the core definition of capacity in management information
systems
Production & Operation Management (Practice Question with Answer)
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The minimum output a system can achieve

The maximum output a system can achieve within a specific timeframe
The average output a system achieves regularly
The output a system achieves under minimal stress

Q117. Service Blueprints are used to document,

Only the front stage of customer interactions
The inner workings of an organisation including front and backstage processes
Irrelevant service processes
The design of physical products only

Q118. What does standardisation in product design aim to achieve?

Decrease production efficiency
Increase production costs
Achieve economies of scale
Limit product diversity

Q119. What does customer focus in operations management involve?

Overlooking customer needs and expectations
Aligning operations with customers evolving needs
Reducing the quality of customer service
Decreasing operational efficiency

Q120. The selection of production process in production management helps in

Choosing inappropriate technology
Ignoring cost factors
Selecting the most appropriate production process
Reducing product quality

Q121. How does product design achieve a balance between functionality and
cost?
Production & Operation Management (Practice Question with Answer)
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By maximising production cost

By ignoring functionality
Through strategic decisions on motarints and manufacturing processes
By compromising on performance

Q122. What does innovation in product design aim to provide?

Standard features without differentiation
A competitive advantage through unique features
A focus on past trends
Products that blend into the market

Q123. How can businesses address the decline phase in a product's lifecycle?
By ignoring market changes
Expanding production indiscriminately
Considering product modification or discontinuation
Maintaining the same strategies

Q124. Flexibility and Responsiveness strategies enable businesses to

Ignore market changes
Adapt swiftly to market changes
Decrease operational efficiency
Focus solely on cost reduction

Q125. How does inventory management difference between service and

manufacturing operations?
Services focus more on raw material inventory
Manufacturing does not require inventory management
Services typically cannot store their output os inventory
Services have more physical inventory than manufacturing.

Q126. What is the purpose of routing in production planning?

To determine the path and sequence of operations
Production & Operation Management (Practice Question with Answer)
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To reduce product quality

To increase production cost
To limit the variety of products produced

Q127. How does ISO 9000 certification benefit organisations?

By focusing solely on internal processes without considering customer satisfaction
Through providing a framework for consistent quality management
By reducing the emphasis on continuous improvement
Limiting the organisation’s ability to compete in the global market

Q128. What is the significance of continuous improvement in TQC?

It discourages changes and innovations
It’s a core element for sustaining quality over time
Only applies to manufacturing processes
Reduces focus on customer needs und feedback

Q129. The goal of CVP analysis in service capacity is

To disregard cost relationships
Understand how capacity changes affect financial performance
Focus solely on increasing service volume
Eliminate the evaluation of profit impacts

Q130. A key consideration in service design is to

Work independently rather than systemically
Focus only on the service’s appearance
Ensure services are valuable and efficient for users
Avoid user input in the design process

Q131. Capacity utilisation measures,

The efficiency of resource use
Production & Operation Management (Practice Question with Answer)
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The percentage of time a system is idle

The theoretical maximum output
The cost of maintaining capacity

Q132. The least cost method focuses on what aspect of location decisions?
The aesthetic appeal of the site
Minimising overall transportation expenses
Ensuring the highest labour costs
Location’s proximity to the CEO’s home

Q133. What role does employee involvement play in KAIZEN?

It is considered unnecessary
Crucial for identifying and implementing process improvements
To reduce the scope for improvement
Solely the responsibility of the management

Q134. A Service Blueprint is useful for

Documenting only the external appearance of services
Understanding both visible and invisible service processes
Focusing on product design without service considerations
Complicating the customer experience

Q135. Technology’s role in effective capacity involves

Decreasing production speed and accuracy
Having a minimal impact on operations
Revolutionising task performance and increasing efficiency
Reducing the need for modern equipment

Q136. What role does data analytics play in service operations?

It's irrelevant for customer behavior understanding
Production & Operation Management (Practice Question with Answer)
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Provides insights for decision-making and process optimisation

Only used for financial analysis
Decreases the efficiency of service delivery

Q137. What challenge is associated with the maturity phase of a product

lifecycle?
Increasing market acceptance
Market saturation and competition
Initial market entry
Decreasing efficiency

Q138. Continuous improvement encourages_____

Stagnation and resistance to change
Incremental improvements and efficienc
Decreasing employee engagement
Ignoring customer feedback

Q139. What is the challenge of balancing standardisation and customisation?

Enhancing production complexity
Maintaining efficiency while meeting diverse consumer demands
Ignoring market demands
Reducing product quality

Q140. How does production management support the marketing department?

By reducing product quality
Making it easier to sell good-quality products
By limiting product development
Decreasing sales

Q141. The primary goal of computer-integrated manufacturing (CIM) is to ___

Increase manual labour
Production & Operation Management (Practice Question with Answer)
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Reduce the use of computers in manufacturing

Integrate various manufacturing and business tasks using computers
Focus solely on product design

Q142. During which product lifecycle phase is managing growth and

responding to market dynamics crucial?
Introduction
Decline
Growth
Maturity

Q143. How should businesses approach the decline phase of a product's

lifecycle?
By ignoring declining sales
Considering product modification or discontinuation
Increasing production
Maintaining the status quo

Q144. How is technology leveraged in service operations for efficiency?

By eliminating all human elements
Decreasing direct customer interactions
Streamlining processes and enhancing customer experiences
Reducing the range of services offered

Q145. The Cost Leadership strategy emphasises

High pricing strategies
Cost efficiency and economies of scale
Decreasing product quality
Avoiding market competition

Q146. What is a primary focus in manufacturing operations planning and

control?
Production & Operation Management (Practice Question with Answer)
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Forecast-driven approach
Prioritising direct customer interaction
Focusing on immediate consumption
Reducing human resource importance

Q147. The process of identifying potential failure modes in product design is

known as
Benchmarking
Failure Mode Analysis
Scalability Analysis
Market Assessment

Q148. Differentiation strategy focuses on.

Creating generic products
Reducing product quality
Offering unique products or services
Ignoring innovation

Q149. Technological integration in Flexible Manufacturing Systems (FMS) is

crucial for.
Decreasing production speed and flexibility
Enhancing the ability to reconfigure production lines quickly
Avoiding modernisation of manufacturing processes
Focusing exclusively on traditional manufacturing methods

Q150. The implementation of service design aims to.

Complicate the delivery of services
Focus on internal operations without considering customer impact
Improve both the internal workings and the customer experience
Prioritise technology over people in service delivery

Q151. Customer feedback is essential in service design for

Ignoring improvements and innovations
Production & Operation Management (Practice Question with Answer)
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Making iterative improvements based on actual use

Decreasing the quality of services
Limiting the scope of services offered

Q152. What is the primary goal of location decisions in operations

management?
To maximise employee convenience
To find the cheapest land available
To identify an optimal geographical region for a facility
To follow industry competitors

Q153. Make or Buy Decisions in capacity planning involve.

Choosing between two similar production methods
Deciding whether to produce internally or outsource
Ignoring cost factors and strategic implications
Solely focusing on in-house production

Q154. Balancing costs and benefits in inventory management is essential to

Encourage excessive inventory
Prevent overstocking and minimise costs
Discourage strategic planning at inventory levels
Prioritise immediate availability over cost management

Q155. Developing Capacity Alternatives is crucial for.

Maintaining the status quo in operational capabilities
Adapting to changing demand and market conditions
Avoiding any form of strategic planning
Reducing financial feasibility and operational efficiency

Q156. How does quality assurance contribute to competitive advantage?

By lowering product standards
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Through enhancing product reliability and performance

By disregarding market competition
Through reducing product variety

Q157. Right time in production management focuses on

Indefinite delivery schedules
Delivery timeliness and effectiveness of the production department
Delivering products at the highest cost
Ignoring customer delivery requirements

Q158. What does modular design emphasise in product development?

Reducing customisation options
Creating interchangeable and independent modules
Simplifying production processes
Increasing production costs

Q159. Why is real-time capacity management crucial in service operations?

To maximise inventory levels
To match service provision with customer demand
To reduce the interaction with customers
To standardise the service offering

Q160. What challenge does mass customisation aim to address?

Reducing product variety
Offering personalised products at scale
Decreasing customer satisfaction
Ignoring technological advancements

Q161. What characterises manufacturing operations?

Intangible output
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High degree of customer interaction

Production of tangible goods
Consumed at the point of creation

Q162. What strategy is often employed in services for managing fluctuating

demand?
Mass production
Yield management
Standardised processes
Long-term inventory storage

Q163. Higher productivity often results in

Higher production costs per unit
Lower production costs per unit
Decreased profit margins
Reduced efficiency

Q164. Location planning in production management is crucial because

It has no impact on cost or demand
It only affects the company's aesthetics
It significantly affects cost, selling price, and product demand
It is solely for the convenience of management

Q165. In the growth phase, what is crucial for product design?

Limiting production
Ignoring consumer feedback
Scaling up production and optimising supply chains
Reducing product features

Q166. What advantage does continuous improvement provide in TQC?

Encourages a static approach to quality
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Reduces focus on customer satisfaction

Leads to enhanced efficiency, employee engagement, and adaptability
Decreases the organisation's responsiveness to market changes

Q167. Supply Chain Considerations in Make or Buy Decisions

Have no impact on the decision
Influence the entire supply chain, requiring effective coordination
Are primarily concerned with minimising costs.
Only involves assessing in-house production risks

Q168. Why is employee involvement critical in KAIZEN?

It's not considered beneficial for quality improvement
Employees provide valuable insights for continuous process improvement
Only management's involvement is necessary for improvements
To reduce the need for systematic problem-solving

Q169. Actual capacity refers to

Theoretical output
The real-time output considering all obstacles
Capacity without any constraints
The planned output level

Q170. The least cost method prioritises what in location decisions?

The location's historical significance
Minimising overall transportation expenses
Ensuring the highest possible costs
Location visibility and branding

Q171. What does the examination phase in location decision procedures

involve?
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Ignoring potential locations

A detailed comparison of available location alternatives
Choosing a location based on intuition
Focusing solely on the cheapest options

Q172. Organisational Design Principles aim to

Restrict worker autonomy
Align teams with service delivery and skill requirements
Centralise decision-making processes
Complicate service delivery methods

Q173. Efficient scheduling is key for

Increasing bottlenecks in service delivery
Maximising idle periods
Optimising resource utilisation
Ignoring customer demand patterns

Q174. The goal of cost leadership is to

Produce at higher costs than competitors
Offer competitive prices through cost-efficiency
Focus on high-end, luxury markets only
Ignore economies of scale

Q175. What distinguishes service recovery as a quality metric?

Its focus on tangible product improvements
The ability to turn negative experiences into positive ones
The emphasis on reducing human elements in service delivery
Its irrelevance to customer satisfaction and loyalty

Q176. What strategic approach is used in delayed differentiation?

Early customisation
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Standardising all product aspects

Postponing customisation until closer to the point of sale
Increasing production lead times

Q177. How does the nature of output in manufacturing impact its strategies?
Allows for real-time customisation
Necessitates a demand-driven approach
Enables production in advance and storage
Requires extensive customer involvement

Q178. In which phase is feedback from prototyping integrated into the final
product design?
Idea Generation
Concept Development
Prototyping and Testing
Design Finalisation

Q179. How does delayed differentiation benefit production?

By reducing flexibility
Enhancing flexibility in responding to market demands
Increasing inventory risk
Promoting early customisation

Q180. What does Right Quality emphasise in production management?

Highest quality possible
Lowest quality to reduce costs
Quality determined by consumer needs
Consistent quality regardless of cost

Q181. How does Computer-Aided Design (CAD) benefit the design phase?
By reducing precision in designs
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Through detailed design and modelling for precision

By ignoring functional aspects of the product
Decreasing collaborative design efforts

Q182. What does the DMAIC process in Six Sigma aim to achieve?
Increase process defects and variability
Improve process efficiency and reduce defects
Focus solely on the Define phase
Eliminate the need for statistical analysis

Q183. Efficient scheduling and resource allocation contribute to

Decreased service quality and longer delivery times
Enhanced operational efficiency and capacity utilisation
Isolation of operational units
Unpredictable service delivery outcomes

Q184. How does Six Sigma methodology aim to improve quality?

By increasing defects and process variability
Through a data-driven approach to minimise defects
Ignoring customer requirements and feedback
Focusing solely on cost reduction without quality improvement

Q185. Effective capacity takes into account.

Only the ideal conditions
The theoretical maximum output
Real-world Constraints Impacting Performance
The desires of the management team

Q186. What is the role of economic development incentives in location

decisions?
Production & Operation Management (Practice Question with Answer)
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To discourage businesses from moving to new locations

To make specific locations more financially attractive to businesses
They are only offered to large corporations
To increase the cost of project investments

Q187. In service design, technology should

Replace human interaction entirely
Serve and support service delivery
Be avoided in customer interactions
Be used without consideration for its impact

Q188. The strategic significance of flexible manufacturing systems lies in

Their inability to meet varying capacity needs
Prioritising inflexibility and manual operation
Enhancing adaptability in the face of dynamic market conditions
Avoiding the use of advanced technology and automation

Q189. Flexible Manufacturing Systems (FMS) are designed to

Limit adaptability to changing capacity needs
Be rigid and unresponsive to market changes
Enable easy adaptation to dynamic demand
Focus solely on reducing technological integration

Q190. The ultimate goal of combining Customer Experience and Service

Design is to
Reduce the effectiveness of services
Ensure a disjointed customer journey
Create a seamless and satisfying customer journey
Focus solely on the visual aspects of service delivery

Q191. What is the primary objective of the centre of gravity method?

To find the most aesthetically pleasing location
To minimise transportation costs by finding the geographic centre among points
Production & Operation Management (Practice Question with Answer)
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To prioritise locations near the equator

To select the highest altitude locations

Q192. Outsourcing introduces risks such as,

Absolute control over production quality
Dependence on external partners and shared quality control
Guaranteed cost savings without any challenges
Increased innovation and flexibility without drawbacks

Q193. Why is assessing the risk of natural disasters important in location

decisions?
It has no real impact on business operations
Only relevant to businesses in the insurance sector
Vital for planning beyond standard contingency operations
To ensure locations have seasonal weather variations

Q194. Cross-training enhances capacity planning by______

Limiting the roles employees can perform
Providing a versatile workforce to meet fluctuating demands
Focusing on specialisation without versatility
Reducing the need for team collaboration

Q195. Which strategy helps ensure high-quality services?

Treating unusual events as rare exceptions
Planning for unusual events in the service setup
Overlooking the integration of feedback
Prioritising business needs over customer needs

Q196. Demand forecasting aids in capacity planning by__

Decreasing the accuracy of capacity alignment with market needs
Increasing the predictability of service requirements
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Encouraging a reactive approach to capacity management

Reducing the need for flexibility in systems

Q197. In optimising capacity utilisation, what plays a central role?

Maintaining a rigid system
Decreasing demand forecasting accuracy
implementing efficient scheduling and resource allocation
Avoiding flexibility in systems

Q198. What role do control charts play in quality management?

They are irrelevant to process stability
To provide a visual representation of process variation over time
Solely to complicate the quality control process
To eliminate the need for statistical analysis

Q199. Benefits of in-house production often include,

Reduced customisation and slower market response
Control, customisation, and fast response to market changes
Inevitable operational inefficiencies
No need for skilled labour or technology

Q200. What factors are considered in the location decision process?

Brand image exclusively
Proximity to competitors only
Customer proximity, access to raw materials, labour costs, etc.
The personal preference of the CEO

Q201. How does a customer-centric approach influence service operation?

Limits customisation options
Guides customisation and responsiveness
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Reduces the need for feedback mechanisms

Encourages standardisation over personalisation

Q202. Six Sigma aims to_.

Increase process variation
Reduce process variation for consistent quality
Focus on quantity over quality
Eliminate data-driven decision-making

Q203. How does product design contribute to achieving cost efficiency and
affordability?
By selecting the most expensive materials
Ignoring the cost of manufacturing processes
Through strategic material selection and process optimisation
By designing exclusively for high-end markets

Q204. Cross-functional collaboration in Concurrent Engineering aims to

Limit feedback loops
Foster communication and collaboration across departments
Increase time-to-market
Focus on Individual department goals over project success

Q205. How do services manage the challenge of intangibility in quality

measurement?
By focusing on physical attributes
Through customer satisfaction and feedback
Ignoring customer experiences
Standardising all service processes

Q206. What advantage does maintaining the status quo offer in location
decisions?
Ensures the company is always at the forefront of innovation
Production & Operation Management (Practice Question with Answer)
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It is a strategy to wait for a more suitable opportunity

Prevents any form of expansion or growth
Guarantees increased operational costs

Q207. How does KAIZEN promote quality improvement?

By making large, disruptive changes
Through small, incremental changes for continuous improvement
By disregarding employee suggestions
Through reducing process efficiency

Q208. Cross-training employees contribute to capacity planning by

Limiting workforce flexibility
Enhancing overall capacity utilisation
Decreasing the workforce's skill set
Focusing on single-function roles

Q209. Why is telecommunications infrastructure considered in location

decisions?
Only for tech companies
Irrelevant in today's globalised business environment
Vital for any manufacturing plant's operations
Considered only for customer service centres

Q210. What are the components of the cost of quality control?

Only external failure costs
Prevention, appraisal, and failure costs
Solely the cost of rework and scrap
Only the cost of quality audits

Q211. How does location planning affect a company's expansion?

By limiting growth to current locations
Through strategic selection of new sites for business growth
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By discouraging international expansion

By focusing solely on domestic markets

Q212. Stakeholder Mapping in service design helps to

Ignore key influencers
Prioritise key stakeholders and understand their needs
Focus only on internal stakeholders
Limit customer involvement

Q213. Optimising capacity utilisation involves

Ignoring demand forecasting
Reducing service flexibility
Efficient demand forecasting and adaptable systems
Relying on static capacity levels

Q214. What is the benefit of using technology in mass customisation?

Decreasing product options
Facilitating the customisation process
Ignoring consumer preferences
Complicating the manufacturing process

Q215. How does production management contribute to facing competition

effectively?
By producing low-quality products
By ignoring customer needs
Producing the right quantity and quality at the right time
Decreasing flexibility

Q216. What is acceptance sampling used for in quality control?

To inspect every item in a batch
To make inferences about batch quality from a sample
Production & Operation Management (Practice Question with Answer)
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To increase the production of defective items

To disregard the efficiency of the inspection process

Q217. Flexible Manufacturing Systems aim to____

Discourage technological integration
Adapt to static demand without changes
Reduce operational flexibility and efficiency
Respond efficiently to fluctuating demand

Q218. What does the TQC approach emphasise?

Segregation of quality control functions
Integration of quality control throughout the organisation
Limiting quality management to top executives
Ignoring customer feedback in quality improvement

Q219. What is a key component of environmental sustainability in product

design?
Using non-recyclable materials
Ignoring environmental regulations
Incorporation of eco-friendly materials and processes
Increasing the ecological footprint

Q220. Regular computation of productivity helps businesses ____

Decrease competitiveness
Ignore market trends
Identify areas for improvement
Increase inefficiencies

Q221. How do flexible manufacturing systems benefit production?

By limiting product variety
Reducing customisation capabilities
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Allowing efficient production of customised items

Increasing production lead times

Q222. What type of automation is characterised by the ability to produce a

wide range of parts with minimal downtime for switching?
Fixed automation
Programmable automation
Flexible automation
Manual automation

Q223. Design for Manufacturing aims to____

Align product design exclusively with consumer desires
Disregard manufacturing process constraints
Optimise product design for efficient manufacturing and cost minimisation
Increase the environmental impact of production

Q224. What does the introduction phase of a product's lifecycle involve?

Ignoring market trends
Focusing solely on production
Planning and launching new products based on market analysis
Decreasing product diversity

Q225. What is the primary goal of product design in Production and

Operations Management?
To focus solely on aesthetics
To meet consumer needs and align with business objectives
To minimise user experience
To ignore cost efficiency

Q226. Which phase of the product lifecycle involves analysing market trends
and launching the product?
Decline
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Introduction
Maturity
Growth

Q227. What is the focus of Total Quality Control (TQC)?

To limit quality control to specific departments
To integrate quality control principles organisation-wide
Solely focus on product design
To reduce employee involvement in quality improvement

Q228. How do ISO 14000 standards support organisations?

By promoting environmental irresponsibility
Through providing a framework for effective environmental management
By limiting compliance with environmental laws
By ignoring sustainability practices

Q229. How do organisations benefit from implementing ISO 14000 standards?

By minimising their focus on environmental management
Through enhanced environmental responsibility and sustainability
Limiting compliance with legal and regulatory requirements
Decreasing operational efficiency and customer satisfaction

Q230. Risks of in-house production include_____

Guaranteed cost-effectiveness and efficiency
Excess capacity or underutilisation affects costs
Always having control over quality and compliance
No investment in facilities or technology

Q231. During which phase are feasibility studies and initial market
assessments conducted?
Idea Generation
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Concept Development
Prototyping and Testing
Design Finalisation

Q232. What strategy is essential in service industries for competitive

advantage?
Lowering service quality
Reducing direct customer interaction
Superior customer service and unique offerings
Focusing solely on cost reduction

Q233. In product design, how does incorporating sustainability considerations

impact business practices?
Limits market appeal
Contributes to responsible and ethical business practices
Increases environmental degradation
Decreases product viability

Q234. How does technology integration differ between service and

manufacturing?
Only important in manufacturing for quality control
More applicable to services due to their intangible nature
Primarily focused on reducing human interaction in services
Crucial for both, but with different applications and impacts

Q235. What role do quality of life facilities play in location decisions?

Attracts highly skilled workers by providing a conducive environment
Only relevant for large corporations
Ignored in favour of operational efficiencies
Considered only for headquarters locations
Q236. In KAIZEN, what role does the concept of Gemba play?
Encourages decision-making without direct observation
Emphasises going to the work site to understand processes
Production & Operation Management (Practice Question with Answer)
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Discourages employee involvement in problem-solving

Limits the scope of improvements to non-critical areas

Q237. Inventory as a buffer in capacity management helps to____

Increase variations in service requirements
Mitigate the impact of unpredictable demand changes
Reduce the responsiveness to customer needs
Encourage overstocking and increased costs

Q238. How does labour availability and quality impact location decisions?
It is irrelevant to modern automated industries
Critical to ensure the operations have the necessary skill levels
Only important for labour-intensive industries
Less significant than technological infrastructure

Q239. What is a crucial objective of Enhancing Product Reliability?

To meet or exceed industry standards for safety, quality, and durability
To simplify the product design
To minimise the use of reliable components
To focus solely on aesthetics

Q240. What does automation in production management typically involve?

Manual processes only
Using technology for operation and control
Decreasing product quality
Reducing flexibility

Q241. How does Supply Chain Integration benefit from modular components?
Complicating inventory management
Enhancing production efficiency and responsiveness
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Decreasing collaboration among supply chain elements

Reducing the need for cross-functional collaboration

Q242. What does the perishability of services refer to?

The physical degradation of a service over time
The time-sensitive nature of service consumption
The decrease in quality of services when stored
The ability to store services for future use

Q243. What is emphasised in service design and customisation?

Mass production techniques
Reducing variability and customisation
Flexibility and adaptability to meet customer needs
Decreasing direct customer interaction

Q244. What challenge does perishability pose in service capacity planning?

It makes services easier to store for future use
Increases the simplicity of demand forecasting
Requires strategies to manage time-sensitive offerings
Diminishes the need for accurate demand forecasting

Q245. The role of customer experience in service design is crucial for_____

Decreasing service competitiveness
Enhancing customer satisfaction and loyalty
Ignoring the customer journey
Focusing solely on aesthetic improvements

Q246. How does customer feedback influence service quality?

It is disregarded in quality assessment
Directly impacts the evaluation of service quality
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Only considered in product-based businesses

Used solely for marketing purposes

Q247. What is the role of automation in the context of production

management?
To replace all human workers
To reduce human work through technology
To eliminate production management
To decrease product quality

Q248. Employee empowerment in continuous improvement involves.

Discouraging employee contributions
Limiting process optimisation
Encouraging the identification of improvement opportunities
Avoiding changes in operations

Q249. Service Design's focus on inside workings aims to_-

Disregard the customer's experience
Solely automate service processes
Deliver a good service by ensuring smooth internal operations
Reduce the role of technology in service delivery

Q250. Service Design aims to make processes __

Inefficient and complex
Efficient and sensible for all users
Unrelated to customer needs
Focused on technology over service

Q251. Which phase involves creating early models to embody the design and
functionality of the product?
Idea Generation
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Concept Development
Prototyping and Testing
Design Finalisation

Q252. Concept Development refines ideas into_

Tangible products without market testing
Concrete concepts with feasibility studies
Prototypes without considering user feedback
Final designs without revisions

Q253. How does Concurrent Engineering impact time-to-market?

Increases development time
Reduces time-to-market through simultaneous development activities
Has no impact on development timelines
Focuses solely on post-production activities

Q254. What is emphasised in defining objectives for location decisions?

Following competitor moves without analysis
Outlining key goals driving the location selection
Ignoring logistical improvements
Prioritising locations based on aesthetics alone

Q255. Service design improves services by___

Ignoring customer needs
Focusing only on internal processes
Making them easy and helpful
Limiting feedback mechanisms

Q256. What role does customer feedback play in service quality

measurement?
Minor, since services are intangible
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No role, as services cannot be measured

Primary, due to the subjective nature of services
Only important post delivery

Q257. What is the significance of selecting the right product and design in
production management?
It has no significant impact
It determines the company's survival and prosperity
It is only important for aesthetic reasons
It simplifies the manufacturing process

Q258. What role does inventory control play in production management?

It is unrelated to production management
To ignore inventory levels
To control a company's inventory levels efficiently
To increase inventory costs

Q259. What is the impact of efficient production planning on delivery

schedules?
Makes delivery schedules unpredictable
Ensures timely delivery of products to customers
Has no effect on delivery schedules
Delays product delivery intentionally

Q260. A primary rule in service design is to____

Only consider the business's perspective
Ensure the service satisfies both customers and the business
Focus on independent service components without system integration
Overlook efficiency for users
Q261. Choosing between product and service design depends on whether___
The solution is tangible or an experience
The focus is exclusively on internal processes
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Only digital products are being developed

Services are being entirely replaced by-products

Q262. What does work study in production management aim to improve?

Employee personal lives
The efficiency and economy of production processes
Only the speed of production
The number of employees needed

Q263. What does Concurrent Engineering emphasise?

Sequential product development stages
Isolation of design and manufacturing teams
Simultaneous collaboration among various functional teams
Reducing communication between departments

Q264. What challenges does the human element introduce in service delivery?
Reduces the need for technology
Simplifies quality control measures
Introduces variability affecting consistency
Decreases the importance of customer satisfaction

Q265. In the context of capacity planning, adapting to dynamic demand

involves
Ignoring market trends and consumer preferences
Maintaining a fixed level of production regardless of demand
Swiftly adjusting production processes and resource allocation
Limiting the scope of products or services offered

Q266. Demand forecasting in capacity planning is crucial because.

It allows for speculative decision-making
It aligns system capabilities with expected market demand
Production & Operation Management (Practice Question with Answer)
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It is based solely on historical data

It disregards market trends

Q267. Expansion strategies in capacity planning involve

Avoiding any increase in system capabilities
Decreasing operational scale to meet demand
Considering options for physical and geographical growth
Ignoring market conditions and specific needs

Q268. What is a primary challenge in planning service capacity?

The tangible nature of services
The intangible nature of services
The constant demand for services
The low variability in service delivery

Q269. Why might a business consider location expansion?

To reduce its market share
To capitalise on tax benefits in rural areas
To move closer to its current customer base
To Increase operational inefficiencies

Q270. Globalisation strategies aim to__________.

It focuses solely on financial achievements
Enhance operational efficiency and expand globally
Focus on domestic markets only
Increase operational costs

Q271. How is cost efficiency achieved in product design?

By using expensive materials
Ignoring manufacturing processes
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Through a strategic approach to material selection and manufacturing

By increasing the product's price

Q272. Which of the following is a core resource in service design?

Only digital assets
Props needed to deliver the service
External marketing only
Sole focus on financial resources

Q273. How do product and service design collaborate in the context of

Airbnb?
By separating host and guest experiences
Through quality and safety protocols for satisfaction
Focusing only on the digital platform
Ignoring the service aspect

Q274. How do efficient location decisions impact product or service delivery?

By increasing delivery times
They have no significant impact
Vital for delivering products or services efficiently to customers
By focusing only on the aesthetics of a location

Q275. Cost-volume-profit (CVP) Analysis helps in capacity decision-making

by___________.
Disregarding costs and focusing on volume
Understanding relationships between costs, volume, and profit
Eliminating the need for financial planning
Focusing solely on profit maximization

Q276. What is the first step in performing a strategic market analysis?

Determining the target audience for the analysis
Gathering a financial report
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Implementing operational changes

Reviewing employee satisfaction

Q277. The purpose of inventory control in production management is to

Increase inventory levels
Efficiently manage inventory levels
Ignore inventory tracking
Focus solely on production speed

Q278. What role does technology play in mass customisation?

It complicates the production process
It facilitates the customisation process
Decreases efficiency
Limits customisation options

Q279. How does Six Sigma ensure sustainable quality improvements?

By emphasising large-scale overhauls only
Through neglecting the statistical analysis
By engaging in continuous monitoring and control to maintain improvements
Focusing solely on initial improvements without long-term planning

Q280. What is the significance of the PDCA cycle in TQC?

To discourage continuous improvement
As a foundational concept for ongoing refinement and optimisation
To focus on planning without execution
Solely to act without planning

Q281. Demand forecasting improves capacity utilisation by.

Reducing accuracy in predictions
Enhancing accuracy in anticipating future service requirements
Production & Operation Management (Practice Question with Answer)
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Ignoring market dynamics

Focusing on past performance without considering trends

Q282. Identifying Pertinent Variables in location decisions is crucial for

Maintaining the current operational inefficiencies
Understanding factors influencing the decision
Focusing solely on external market trends
Basing decisions on subjective preferences

Q283. In production management, minimising resource use aims to

Increase production costs
Reduce quality
Achieve minimum cost, quality, and time
Produce goods without time consideration

Q284. What is a crucial aspect of production management for businesses?

Reducing employee benefits
Ignoring customer feedback
Achieving organisational objectives
Decreasing inventory turn

Q285. Adaptability in a changing business environment is

Unnecessary for continuous improvement
Essential for sustained success
Discouraged in dynamic markets
Irrelevant for innovation

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