Operation Management Test
Which
one of the Maslow's hierarchy of needs would primarily be addressed by
introducing 'team-based management'?
a.
Physiological
b.
Social/belonging
c.
Security
d.
Self-actualization
A
'Just-In-Time' approach to production involves _____________.
a.
closely monitoring the employees' hours.
b.
faster delivery of products to customers.
c.
minimising the amount of unused stock.
d.
prioritising 'schedule' above other variables.
The
phenomenon where, in the log run, unit costs increase as the production volume
increases is known as:
a.
Disparity of costs
b.
Economy of scale
c.
Diseconomy of scale
d.
Elastic pricing
For
targets to be effective, they should be 'SMART'. Which of the following is not part of the
acronym 'SMART'?
a.
Specific
b.
Measurable
c.
Achievable
d.
Rigid
e.
Time-bound
f.
They are all parts of the acronym.
Which
of the following is a statistical measure of the ability of a process to
deliver within the specification limits?
a.
Capability Maturity Model
b.
Process Capability Index
c.
Production Output Norm
d.
Quality Assurance
Which
of the following factors must be balanced against 'schedule' to assess the
effectiveness of a process?
i)
Quality
ii)
Scale
iii)
Cost
a. None
of the above
b. i
only
c. ii
only
d. iii
only
e. i
and ii only
f. i
and iii only
g. ii
and iii only
h. All
of the above
Which
of the following terms relates to ensuring that different elements of product
development are undertaken at the same time rather than consecutively?
a.
'Just-in-time' production
b.
'Lean production'
c.
'Si multaneous engineering'
d.
'Concurrent development'
A
situation where there is one intermediary organization between the manufacturer
and the consumer is known as:
a.
three-level channel
b.
two-level channel
c.
one-level channel
d.
zero-level channel
Which
of the following is/are typically qualitative measures?
i)
Profit margin
ii)
Oral customer feedback
iii)
Share price
a. None
of the above
b. i
only
c.
ii only
d. iii
only
e. i
and ii only
f. i
and iii only
g. ii
and iii only
h. All
of the above
Which
of the following statements is/are true?
i)
A firm may choose to subcontract where its capacity exceeds demand.
ii)
Subcontracting is an effective way of ensuring a high-quality product.
a. Both
(i) and (ii) are true.
b. Only
(i) is true.
c.
Only (ii) is true.
d.
Neither is true.
Which
of the following is/are a variety/varieties of a 'prototype'?
i)
Visual prototype
ii)
Form study prototype
iii)
Proof-of-principle prototype
a. None
of the above
b. i
only
c. ii
only
d. iii
only
e. i
and ii only
f. i
and iii only
g. ii
and iii only
h. All
of the above
Organizations
often outsource elements of their operations in order to improve profitability.
Which of the following activities may NOT be outsourced ?
a.
Marketing
b.
Project management
c.
Human Resources
d.
Core business
e.
Sales
Which
of the following statements is/are true?
i)
Prototypes should be constructed using the same manufacturing processes as are
intended for the final product.
ii)
The cost of producing a prototype will generally be higher than the unit cost
of the final product.
a. Both
(i) and (ii) are true.
b. Only
(i) is true.
c. Only
(ii) is true.
d.
Neither is true.
Which
of the following statements is/are true?
i)
The 'Six Sigma' methodology developed by Motorola is about reducing time to
market.
ii)
The 'Capability Maturity Model' relates specifically to software engineering.
a. Both
(i) and (ii) are true.
b. Only
(i) is true.
c. Only
(ii) is true.
d.
Neither is true.
Under'
Principles of Organization', what is meant by the expression 'Unity of
Control'?
a. That
there should be a limit to the number of persons that can be supervised
effectively by one boss.
b. That
the activities of the enterprise should be divided according to functions and
assigned to persons according to their specialization.
c. That
the line of authority from the chief executive at the top to the first line
supervisor at the bottom must be clearly defined.
d.
That each subordinate should have only one superior whose orders he has to
obey.
Which
of the following is an example of a secondary industry?
a.
Mining
b.
Farming
c.
Fishery
d.
Oil refining
Which
of the following distribution methods would be best suited to reach the
customers who are unable to visit shops and want a broad range of products?
a.
Door-to-door
b.
Wholesale
c.
Retail
d.
Catalogue
Which
of the following is/are a disadvantage/disadvantages of gaining a quality
award?
i)
Loss of administrative time required to prepare and apply for certification.
ii)
Increased requirement for record-keeping.
iii)
Decreased brand image with customers.
a. None
of the above
b. i
only
c. ii
only
d. iii
only
e. i
and ii only
f. i
and iii only
g. ii
and iii only
h. All
of the above
Which
of the following is NOT a reason for selling products via wholesalers?
a.
Higher prices can be charged by doing so than by selling directly to consumers.
b.
Transport costs for the manufacturer are reduced.
c. The
wholesalers have greater sales expertise.
d. The
manufacturer does not have to store unsold stock.
Which
of the following is NOT a benefit of monitoring performance?
a.
Identifying problems becomes easier.
b.
Assessing the impact of new initiatives becomes easier.
c. It
helps the managers take appropriate decisions.
d.
It reduces administrative costs
Which
of the following courses of action would NOT be a sensible response where
capacity is being under-utilized due to lack of demand for products?
a.
Increase production.
b.
Attempt to boost demand through marketing.
c. Sell
off unused capacity.
d.
Diversify into new products.
Which
of the following statements is/are true?
i)
Implementing 'team-based management' may reduce output.
ii)
'Team-based management' is associated with the 'Theory X' approach.
a. Both
(i) and (ii) are true.
b. Only
(i) is true.
c. Only
(ii) is true.
d.
Neither is true.
Which
of the following would be a sensible response/sensible responses to a situation
where a company finds that demand for its product is outstripping supply?
i)
Start a waiting list.
ii)
Decrease prices.
iii)
Attempt to boost capacity.
a. None
of the above
b. i
only
c. ii
only
d.
iii only
e. i
and ii only
f. i
and iii only
g. ii
and iii only
h. All
of the above
Which
of the following is an alternative term for the 'Scalar Principle'?
a.
Chain of Command
b.
Personal ability
c.
Unity of Command
d. Span
of Control
e.
Unity of Direction
Which
of the following is an 'output'-related measure?
a.
The number of units produced per day
b. The
cost of raw materials
c.
Staff turnover
d. The
amount of investment in a plant
Comparing
performance with high-performing competitors is known as:
a.
benchmarking
b.
rival measurement
c.
market analysis
d.
status check
What
is meant by the term 'industrial design'?
a.
Making a mass-produced product aesthetically pleasing.
b.
Planning the machinery that will be required to manufacture a product.
c.
Ensuring that a product is simple enough to be suited to mass production.
d. The
visible use of metals in a product to accentuate its high-technology image.
The
term 'cell production' refers to a situation in which:
a.
manufacture takes place on an automated assembly line.
b.
workers work alongside others with the same skills.
c.
production is divided into self-contained units undertaken by separate teams.
d.
workers work individually on a particular stage of the production process.
If
a company invests in new equipment to make its production process more
efficient, which of the following will be considered 'opportunity costs'?
i)
The cost of the new equipment.
ii)
The anticipated additional revenue.
iii)
The alternative improvements for which the capital might have been used.
iv)
The interest that could have been earned on the capital.
a. i
and ii only
b. i
and iii only
c. i
and iv only
d. ii
and iii only
e. ii
and iv only
f.
iii and iv only
Which
of the following statements is/are correct?
i)
'Time and Motion' studies seek to improve a process by increasing the number of
steps involved.
ii)
Decisions should be made only on the basis of quantitative data.
a. Both
(i) and (ii) are true.
b. Only
(i) is true.
c. Only
(ii) is true.
d.
Neither is true.
Who
developed the fourteen key principles for transforming business effectiveness?
a.
W. Edwards Deming
b.
Frederick Winslow Taylor
c. Walter
Shewhart
d.
Malcolm Baldridge
e.
Woodrow Wilson
Which
of the following statements is/are true?
i)
Increasing quality inevitably leads to higher production costs.
ii)
Pareto charts show the values being plotted arranged in the ascending order
a. Both
(i) and (ii) are true.
b. Only
(i) is true.
c. Only
(ii) is true.
d.
Neither is true.
Which
of the following statements is/are true?
i)
Systems engineering relates only to the technical aspects of projects.
ii)
IDEF0 is a modeling language for software engineering.
a. Both
(i) and (ii) are true.
b. Only
(i) is true.
c. Only
(ii) is true.
d.
Neither is true.
Which
of the following is/are a reason/reasons for undertaking 'reverse engineering'?
i)
To check that a product functions properly.
ii)
To determine interoperability.
iii)
To examine rival products.
a. None
of the above
b. i
only
c. ii
only
d.
iii only
e. i
and ii only
f. i
and iii only
g. ii
and iii only
h. All
of the above
To
what does the term 'purchasing economies of scale' refer?
a.
Where improved equipment is bought to enhance efficiency.
b.
Where costs are reduced through bulk buying.
c.
Where customers benefit from reduced prices.
d.
Where outside expertise is imported to boost productivity.
Which
of the following concepts developed by Dr Eliyahu Goldratt asserts that at any
given time, there will be at least one factor hindering an organization's
performance?
a.
Barriers to entry
b.
Hurdle hypothesis
c.
Problem analysis
d.
Theory of constraints
Which
of the following statements is/are true?
i)
A capital intensive production process is one that involves a relatively-high
proportion of labor.
ii)
Training staff can be an effective method of boosting productivity.
a. Both
(i) and (ii) are true.
b.
Only (i) is true.
c. Only
(ii) is true.
d.
Neither is true.
Which
of the following is NOT part of the role of an industrial engineer?
a.
Making processes more efficient.
b.
Improving the consistency of manufacturing quality.
c.
Making products easier to manufacture.
d.
Monitoring productivity
Which
of the following statements is/are true?
i)
Distribution channels refer only to physical products.
ii)
Under 'selective distribution', only a very limited number of retailers are
allowed to sell a product in order to maintain exclusivity.
a. Both
(i) and (ii) are true.
b. Only
(i) is true.
c. Only
(ii) is true.
d.
Neither is true.
Some
organizations monitor the 'societal effects' of their activities. What type of measure is it?
a.
Input
b.
Output
c.
Outcome
d. None
of the above