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Operations Management MCQs
Operations management is concerned with the transformation of ‘inputs’ into ‘outputs’ that meet the needs of the customer. The concept of operations management is equally applicable for both production as well as services industry. Here on MCQs.club we have designed simple Multiple-Choice Questions (MCQs) that fully cover the operations and supply chain management, strategic operations management, manufacturing operations management. This online course also covers the production types. There are several different types of production process: Job production, Batch production and Flow production. These MCQs include and cover the method, definition, system, process, meaning, branches, techniques, features, three (3) types of production with examples.
- OPERATIONS MANAGEMENT is concerned with the transformation of ‘inputs’ into ‘outputs’ that meet the needs of the customer.
- False
- True
- Operations management refers to the activities required to produce and deliver a product or a service.
- True
- False
- Operation management includes:
- Purchasing
- Warehousing
- Transportation
- All of the above
- At its simplest, operations management tries to ensure that organizations are run as efficiently as possible.
- Correct
- Incorrect
- An organization can achieve significant competitive advantage over its rivals through superior operating capabilities of its resources, examples include:
- Assets
- Work force skills
- Supplier relationships
- All of the above
- The objectives for operations should be consistent with the perceived requirements of customers. Suggest suitable performance objectives in following situations.
- When customers want a low-priced product.
- The performance objectives in operational strategy should focus mainly on reducing costs and producing a low-cost output
- The performance objectives in operational strategy should focus on achieving the required quality standards
- The operational objective should be to set targets for reliability
- All of the above
- When customers want a product or service with certain quality characteristics and willing to pay more for better quality.
- The operational objective should be to set targets for reliability
- The performance objectives in operational strategy should focus on achieving the required quality standards, with costs in certain limits
- The operational objective should be to achieve sufficient flexibility to handle the variations in customer requirements.
- None
- When customers want a low-priced product.
- When customers want fast delivery of a product or service.
- The operational performance objective will concentrate on speed of operations.
- The performance objective will be making the product or service more readily available.
- Either A or B
- None
- When customers want reliability.
- The performance objective should be to set targets for reliability and ensure that these are met.
- The performance objectives in operational strategy should focus on achieving the required quality standards
- The performance objectives in operational strategy should focus mainly on reducing costs and producing a low-cost output
- None
- When customers want products or services to be designed to their own specification.
- The performance objectives in operational strategy should focus mainly on reducing costs and producing a low-cost output.
- The performance objectives must be to achieve sufficient flexibility to handle the variations in customer requirements, and provide differing products/service accordingly.
- Either A or B
- None
- When customers want to alter the timing or delivery of services they receive.
- The performance objectives in operational strategy should focus on achieving the required quality standards
- The performance objectives in operational strategy should focus mainly on reducing costs and producing a low-cost output
- The main operational objective will be flexibility.
- None
- Identify the parts, as suggested by Mintzberg, that an organization is made of.
- Operational core and Strategic apex
- Techno structure, middle line, Support staff
- Neither of above
- All of the above
- ‘Operations’ is the term covering the central core of the organization. This central core is known as the ‘operating core’ and refers to those individuals who perform the task of rendering the product or service.
- The above statement is correct
- The above statement is incorrect
- Middle line – the hierarchy linking the strategic apex to the operating core. Usually comprises first line supervisors up to senior managers.
- False
- True
- Strategic Apex –:
- Formulates and implements strategy – and if applicable links the organization to those who own or control it.
- Co-ordinates work through standardizing processes, outputs and skills, e.g. HR managers includes expert advice, research and work study.
- Provide services and assistance outside the work flow, e.g. catering, cleaning, PR.
- None
- Technostructure –:
- Formulates and implements strategy – and if applicable links the organization to those who own or control it.
- Co-ordinates work through standardizing processes, outputs and skills, e.g. HR managers includes expert advice, research and work study.
- Provide services and assistance outside the work flow, e.g. catering, cleaning, PR.
- None
- Support staff –:
- Formulates and implements strategy – and if applicable links the organization to those who own or control it.
- Co-ordinates work through standardizing processes, outputs and skills, e.g. HR managers includes expert advice, research and work study.
- Provide services and assistance outside the work flow, e.g. catering, cleaning, PR.
- None
- The transformation process could be:
- A physical transformation
- A change in nature or form (for example, a transformation of data into information),
- A change in location, a change in ownership, or, in the case of customers, a psychological change (e.g. giving enjoyment)
- All of the above
- Inputs to the transformation process can be categorized as:
- Transformed resources
- Transforming resources
- Either A or B
- None
- Transformed resources –:
- are manipulated and formed into a different condition by the process. These resources can be materials, information or customers themselves.
- are the resources that are used to alter the condition of the transformed resources. These consist of the work force of the organization and facilities such as buildings, equipment and vehicles.
- Both A&B
- None
- Transforming resources –:
- are manipulated and formed into a different condition by the process. These resources can be materials, information or customers themselves.
- are the resources that are used to alter the condition of the transformed resources. These consist of the work force of the organization and facilities such as buildings, equipment and vehicles.
- Both A&B
- None
- Four Vs is a method of analyzing the differences between transformational processes.
- True
- False
- The four Vs are –:
- Volume, variety
- Variation in demand and visibility
- Both A&B
- None
- VALUE CHAIN – ‘Sequence of business activities by which, in the perspective of the end-user, value is added to the products or services produced by an entity.’
- True
- False
- Primary activities are those directly related with production, sales, marketing, delivery and services.
- False
- True
- Porter identified primary activities as:
- Inbound logistics – are those activities involved with receiving, handling and storing inputs to the production system.
- Operations – are those activities which convert resource inputs into a final product. In a manufacturing business, this is relatively easy to identify as the factory. In a service company, operations include those activities which make up the basic service.
- Outbound logistics – are those activities relating to storing the product and its distribution to customers.
- Marketing and sales – are those activities that relate to informing customers about the product, persuading them to buy it, and enabling them to do so.
- After-sales service – includes activities such as installing products, repairing them and providing spare parts.
- All of the above
- (I) (III) and (V) only
- (I) (III) only
- None
- Support activities are those which provide purchased inputs, human resources, technology and infrastructural functions to support the primary activities. Support activities include:
- Procurement – consists of those activities which acquire the resource inputs to the primary activities (eg purchase of materials, subcomponents, equipment).
- Technology development – (in the sense of apparatus, techniques and work organization). These activities are related to both product design and to improving processes and/or resource utilization.
- Human resource management – is the activities of recruiting, training, developing and rewarding people.
- Firm infrastructure – the systems of planning, finance, quality control and management are activities which Porter believes are crucially important to an organization’s strategic capability in all primary activities.
- All of the above
- There are several different types of production process. Identify the type of production from the followings.
- Job method
- Batch method
- Flow method
- All of the above
- Job method: The complete task is performed by single worker or team. Milestones, dates and stages of job are clearly defined.
- The above is correct
- The above is incorrect
- Batch method: The task is divided into parts or operations. Each operation is completed through the whole batch before the next operation is performed. This method of production results in labour efficiency but entity needs to ensure that plant is not idle.
- True
- False
- The main objectives of batch method of production are:
- Specialization
- High utilization of plant
- Both A&B
- None
- A drawback of batch method might be the ______________ as completed batch waiting for their turn for the next operation.
- Insufficiency of material
- Danger of significant work in progress
- Limited resources
- None
- In Flow method idle production capacity is controlled and batch queuing is eliminated.
- True
- False
- In Flow method idle production capacity is controlled as the work on a task at one stage is completed then it is directly passed to next stage without waiting for the remaining stock in the batch. In next stage work is started immediately.
- The above statement is incorrect
- The above statement is correct
- Which of the following statement is correct regarding ‘plant maintenance’?
- Plant maintenance process should be considered early during plant design.
- Plant maintenance should consider safety rules and environmental protection requirements.
- Entity should store and manage maintenance processes and best practices for reuse in future plants. This data base can then be replicated and shared and new information should be added to support training.
- All of the above
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