Final Exam of Operations and Production Management Course
Chose Correct Answer A, B, C, D, E, or F.
2 Marks for Each Question.
1. What is Operations Management (OM)?
a) The process of designing and developing new products.
b) The administration of business practices aimed at ensuring maximum efficiency within a
company.
c) The management of relationships with suppliers to procure materials.
d) The transformation of raw materials into finished products.
Correct Answer: b)
2. Who was a key figure in pioneering scientific management during the Industrial
Revolution?
a) Henry Ford
b) Adam Smith
c) Frederick Taylor
d) Thomas Edison
Correct Answer: c)
3. Scenario-Based Question:
Your company is experiencing delays in delivering products to customers, which is affecting
customer satisfaction. As the Operations Manager, which area should you focus on improving
first? a) Product design
b) Capacity planning
c) Inventory management
d) Quality control
Correct Answer: c)
4. Which of the following competitive priorities focuses on the ability of a company to
quickly adapt to changes in customer demand and market conditions?
A) Cost
B) Quality
C) Delivery Speed
D) Flexibility
E) Innovation
F) Reliability
Correct Answer: D)
5. A company known for its high-quality products is facing increased competition from
low-cost providers. The management is considering adjusting its operations strategy to
maintain its market position. Which competitive priority should the company focus on if
it wants to maintain its reputation for quality while managing costs?
A) Cost
B) Flexibility
C) Quality
D) Delivery Speed
E) Innovation
F) Reliability
Correct Answer: C)
6. A technology company has recently launched a new product, but customer feedback
indicates that the product's features are not meeting expectations. To address this
issue, the company decides to focus on innovation in its operations strategy. What
action should the company take?
A) Lowering production costs
B) Reducing delivery times
C) Enhancing R&D efforts
D) Outsourcing manufacturing
E) Implementing stricter quality control
F) Expanding marketing efforts
Correct Answer: C) Enhancing R&D efforts
7. What is the primary goal of product design?
A) To increase the cost of production
B) To ensure the product meets customer needs and is feasible to produce
C) To make the product complex and hard to manufacture
D) To focus solely on aesthetic appeal
Correct Answer: B)
8. 3. How does design impact operational efficiency?
A) By complicating the production process
B) By increasing production time
C) By simplifying manufacturing steps and reducing waste
D) By focusing only on the product's appearance
Correct Answer: C)
9. 7. Scenario-Based:
A company is developing a new product. They have two design options: one is highly aesthetic
but costly to produce, and the other is less visually appealing but much cheaper to
manufacture. Which option should the company choose if their priority is operational
efficiency, and why?
A) The first option, because aesthetics are always more important
B) The first option, as higher costs lead to better quality
C) The second option, to minimize production costs and increase efficiency
D) The second option, because cheaper products always sell better
Correct Answer: C)
10. 2. (Wh format) Why is process selection important in operations management?
A) It determines the design of goods and services
B) It impacts how efficiently resources are used in production
C) It ensures customer satisfaction through marketing
D) It focuses only on quality control of products
Correct Answer: B
11. 4. (True/False) Continuous processes are best suited for industries that produce a high
volume of standardized products.
A) True
B) False
Correct Answer: A
12. 6. (Scenario-based) A company producing custom-made furniture for individual clients
decides to change its production method to accommodate larger orders with standard
designs. Which process type should the company adopt?
A) Job Shop
B) Batch Process
C) Continuous Process
D) Fixed-Position Layout
Correct Answer: B
13. 1. What is the primary goal of Supply Chain Management?
A. Minimizing costs and maximizing customer satisfaction
B. Only maximizing profits
C. Reducing the number of suppliers
D. Focusing solely on customer satisfaction
Answer: A.
14. 3. Why is managing supply chain relationships important?
A. It helps companies reduce the number of suppliers.
B. It improves the efficiency and collaboration between suppliers, manufacturers, and
customers.
C. It reduces the need for communication between supply chain partners.
D. It allows companies to delay deliveries.
Answer: B. It improves the efficiency and collaboration between suppliers, manufacturers,
15. 5. True or False: A well-managed supply chain can create a competitive advantage by
improving cost efficiency and responsiveness to customer needs.
A. True
B. False
Answer: A. True
16. 2Why is Just-in-Time (JIT) inventory management considered effective?
A) It increases inventory holding costs.
B) It ensures goods are available only when they are needed.
C) It requires large stockpiles of inventory.
D) It eliminates the need for suppliers.
Correct Answer: B
17. 4. True/False: Economic Order Quantity (EOQ) is used to determine the optimal quantity
of inventory to order to minimize total inventory costs.
A) True
B) False
Correct Answer: A
18. 6. Scenario-Based: A company has been experiencing stockouts and delays in delivery
due to an increase in customer demand. What would be the best inventory
management approach to avoid this in the future?
A) Maintain a larger quantity of raw materials to cover fluctuations.
B) Implement a Just-in-Time system.
C) Increase the safety stock to cover unexpected demand.
D) Switch to batch production to maximize efficiency.
Correct Answer: C
19. Question 1:
What is the primary goal of Total Quality Management (TQM)?
a) Maximizing profits
b) Continuous improvement in all organizational processes
c) Reducing the workforce
d) Increasing production speed
Correct Answer: b)
20. Question 3:
Which of the following factors directly contributes to achieving operational efficiency in
TQM?
a) High employee turnover
b) Reducing rework and waste
c) Focusing only on production speed
d) Increasing the number of suppliers
Correct Answer: b)
21. Question 7:
A local restaurant consistently receives high praise for its quality of service. The owner
attributes this to focusing on customer needs, regularly gathering customer feedback,
and adjusting the menu based on preferences. What principle of TQM is the restaurant
most effectively applying?
a) Process-Centered Approach
b) Customer Focus
c) Continuous Improvement
d) Integrated System
Correct Answer: b)
22. Question 2:
What does the term 'Six Sigma' refer to in the context of quality management?
a) A tool for managing inventory
b) A method for reducing defects to 3.4 per million opportunities
c) A pricing strategy
d) A type of employee training program
Correct Answer: b)
23. Question 4:
Lean production focuses solely on reducing costs without considering product quality.
a) True
b) False
Correct Answer: b) False
24. Question 6:
A company has been facing issues with defective products and inconsistent
performance in its manufacturing line. The management decides to implement Six
Sigma. After completing the DMAIC cycle, they see a significant improvement in quality
and a reduction in defects. Which phase of the DMAIC cycle was critical in identifying
the root cause of defects?
a) Define
b) Measure
c) Analyze
d) Improve
Correct Answer: c) Analyze
25. Question 1:
What is the primary purpose of project management in operations?
a) To reduce costs
b) To control and manage projects efficiently
c) To hire new employees
d) To outsource operational tasks
Correct Answer: b)
26. Question 3:
Why is a Gantt chart useful in project management?
a) It helps in analyzing the risk of a project
b) It visually represents tasks and timelines
c) It estimates the project’s cost
d) It identifies communication strategies
Correct Answer: b)
27. Question 5:
CPM only focuses on reducing costs, and does not help with identifying the project
timeline.
a) True
b) False
Correct Answer: b) False
28. 2. What is the primary focus of Production Management?
a) Managing the quality of products.
b) Transforming raw materials into finished products.
c) Planning business strategies.
d) Managing supply chain relationships.
Correct Answer: b)
29. Question 3: Which strategic decision in operations involves determining the appropriate
level of resources to meet customer demand?
A) Process Design
B) Capacity Planning
C) Technology Adoption
D) Quality Control
E) Supply Chain Management
F) Product Development
Correct Answer: B)
30. 4. Why is flexibility in design important for a business?
A) It allows for higher production costs
B) It enables the business to quickly adapt to market changes
C) It reduces the need for innovation
D) It focuses on short-term profitability
Correct Answer: B)
31. Scenario: A company has recently been facing significant delays in delivering products to
customers, leading to customer dissatisfaction and a drop in revenue. Upon
investigation, they find that their primary supplier has been experiencing frequent
delays due to transportation issues.
Question:
What strategy should the company adopt to resolve this issue?
A. Stop working with the supplier immediately
B. Establish better communication and look for backup suppliers
C. Reduce production to match the supplier’s pace
D. Increase prices to cover the delays
Answer: B.
32. 5. True/False: Overstocking is a favorable situation for businesses as it leads to lower
costs.
A) True
B) False
33. Correct Answer: B
Question 2:
What is the critical path in a project according to the Critical Path Method (CPM)?
a) The longest sequence of activities that determines the project duration
b) The shortest task in the project
c) The sequence of tasks that require the most resources
d) The sequence of activities that do not affect the project duration
Correct Answer: a)
34. Question 3:
Why is it important to map the value stream in Lean Production?
a) To increase production speed
b) To identify and eliminate waste in the process
c) To reduce the workforce
d) To improve customer engagement
Correct Answer: b)
True/False Format
35. Question 4:
Total Quality Management (TQM) only involves top management in the organization.
a) True
b) False
Correct Answer: b) False
