Production and Operations Management Practice Quiz
- Which of the following is NOT typically considered a component of production and operations management?
A) Product design
B) Sales and marketing
C) Quality control
D) Process improvement - Which of the following is a key goal of operations management?
A) Maximizing marketing efforts
B) Reducing customer dissatisfaction
C) Improving the efficiency of production processes
D) Increasing the company’s stock price - Which of the following methods is commonly used to forecast demand in operations management?
A) Linear regression
B) Monte Carlo simulations
C) Time-series analysis
D) SWOT analysis - Which type of layout is most appropriate for a production environment that produces a large number of standardized products?
A) Process layout
B) Fixed-position layout
C) Product layout
D) Cellular layout - In which of the following production systems is the focus on minimizing inventory levels and producing only when needed?
A) Lean production
B) Mass production
C) Just-in-time (JIT)
D) Push production - Which of the following is a characteristic of batch production?
A) High product variety with low volume
B) High volume with low product variety
C) Production of each product continuously
D) Production in discrete batches with a specific time frame - Which of the following is NOT a typical strategy for managing operations in a service environment?
A) Increasing automation
B) Managing capacity
C) Managing customer interactions
D) Reducing the time spent on production processes - What does the term “capacity planning” refer to in production and operations management?
A) Estimating how much product will be sold
B) Deciding the quantity of labor required for production
C) Determining the production capability of an organization
D) Estimating demand fluctuations in the market - Which of the following tools is used to analyze the flow of materials through a production process?
A) PERT chart
B) Gantt chart
C) Process flow diagram
D) Fishbone diagram - Which of the following is an example of a qualitative forecasting method?
A) Moving averages
B) Delphi method
C) Exponential smoothing
D) Linear regression - What is the primary purpose of total quality management (TQM)?
A) To reduce the number of suppliers
B) To ensure quality at every step of production
C) To increase inventory turnover
D) To decrease employee turnover - Which of the following is the best description of a “pull” production system?
A) Production is based on a set schedule regardless of customer demand.
B) Production is initiated by customer orders or actual demand.
C) Production is planned by management in advance.
D) Production is initiated when inventories reach a certain level. - Which of the following is an example of a quantitative method used for decision-making in operations management?
A) SWOT analysis
B) Decision tree analysis
C) Interviews with stakeholders
D) Brainstorming sessions - In the context of operations management, what is meant by “economies of scale”?
A) The cost per unit decreases as production volume increases
B) The cost per unit increases as production volume increases
C) There is no change in cost regardless of production volume
D) Only labor costs increase with production volume - Which type of inventory management technique involves maintaining a certain level of stock to meet demand fluctuations without overstocking?
A) Economic Order Quantity (EOQ)
B) Reorder point system
C) ABC analysis
D) Just-in-time inventory - What is a characteristic of a “push” production system?
A) Products are made based on customer orders
B) Products are made to stock and pushed to the customer
C) Production is driven by actual demand
D) Inventory is minimized - Which of the following is a key focus of Six Sigma methodology?
A) Reducing production costs
B) Eliminating defects in products and processes
C) Improving employee morale
D) Increasing production speed - In operations management, what is the “process of bottleneck management” designed to improve?
A) Reducing employee turnover
B) Maximizing the weakest step in the production process
C) Increasing the flow of materials in the process
D) Improving product design - Which of the following would be a likely benefit of implementing a flexible manufacturing system (FMS)?
A) Reduction in product variety
B) Decreased production speed
C) Increased production flexibility
D) Increased lead times - In operations management, which of the following metrics is used to assess production efficiency?
A) Return on investment (ROI)
B) Capacity utilization
C) Gross margin
D) Customer satisfaction score - Which of the following is NOT a characteristic of service operations?
A) Direct customer involvement
B) High tangibility of output
C) Intangible product
D) Variability in demand - Which of the following is most closely associated with the concept of “lean manufacturing”?
A) Reducing waste in the production process
B) Increasing inventory levels
C) Reducing worker involvement
D) Decreasing the number of product varieties - Which method is used to determine the most cost-effective way of ordering inventory?
A) Lean manufacturing
B) Economic Order Quantity (EOQ)
C) Value Stream Mapping
D) Process mapping - In project management, what is the primary purpose of a Gantt chart?
A) To define the scope of a project
B) To track the cost of project activities
C) To display the timeline and sequence of tasks
D) To estimate project resources - What does the “bullwhip effect” refer to in supply chain management?
A) Increased inventory management costs due to fluctuating demand
B) Reduced demand due to supply chain inefficiencies
C) Unnecessary transportation costs in the supply chain
D) A reduction in production capacity due to market conditions - Which of the following tools is used to prioritize projects or problems in operations management?
A) Pareto analysis
B) Fishbone diagram
C) Critical path method
D) Flowcharting - What is the primary advantage of using a cell layout in manufacturing?
A) Minimizes transportation time
B) Maximizes production variety
C) Reduces the need for specialized equipment
D) Increases the flexibility of the production process - Which of the following is a characteristic of a service blueprint?
A) It outlines the steps involved in producing a physical product.
B) It is used to manage the flow of materials in a manufacturing setting.
C) It describes the service process and the interaction with customers.
D) It is used only for the production of tangible products. - Which of the following is typically the focus of the aggregate planning process in production management?
A) Developing a short-term forecast for customer demand
B) Managing inventory to avoid stockouts
C) Aligning production capacity with fluctuating demand
D) Increasing the workforce for peak demand periods - What is the purpose of a supply chain management system?
A) To increase the cost of production
B) To optimize the flow of materials and information across the production network
C) To eliminate all forms of inventory
D) To reduce the number of suppliers used
- Which of the following is a characteristic of a “make-to-order” production system?
A) Production is based on forecasted demand
B) Products are made after receiving customer orders
C) Products are manufactured in large batches for inventory
D) Products are made to stock - What is the main goal of process improvement in operations management?
A) To decrease the cost of raw materials
B) To enhance the product design
C) To increase the production rate
D) To eliminate waste and improve efficiency - Which of the following is an example of “capacity utilization”?
A) The ratio of actual production to the maximum possible production
B) The total number of units produced in a given period
C) The time it takes to complete a production cycle
D) The amount of raw materials consumed in the process - In which of the following strategies does the company produce as much as possible to minimize production costs per unit?
A) Make-to-order strategy
B) Mass production strategy
C) Just-in-time production
D) Batch production strategy - Which of the following is NOT a benefit of lean production?
A) Reduced production lead time
B) Increased operational flexibility
C) Decreased employee involvement
D) Reduced waste - Which of the following is considered a “push” system in production management?
A) Just-in-time (JIT)
B) Kanban system
C) MRP (Material Requirements Planning)
D) Lean manufacturing - What is the first step in the process of designing a production system?
A) Setting up quality control standards
B) Selecting a layout type
C) Identifying the demand and required capacity
D) Hiring the production staff - Which of the following is the main difference between a process layout and a product layout?
A) A process layout focuses on the efficiency of production, while a product layout focuses on product variety.
B) A product layout is used for continuous production, while a process layout is used for customized production.
C) A process layout is used for high-volume production, while a product layout is used for low-volume production.
D) A product layout is more flexible, while a process layout is more rigid. - Which of the following is NOT a common type of inventory used in production management?
A) Raw materials
B) Work-in-progress (WIP)
C) Finished goods
D) Promotional inventory - What does “JIT” stand for in operations management?
A) Just-in-time
B) Job inventory tracking
C) Joint inventory transfer
D) Jump-in transfer - Which of the following is a key disadvantage of mass production?
A) High unit costs
B) Limited product variety
C) High flexibility
D) Low fixed costs - Which of the following methods is used to measure the performance of a production process?
A) Key performance indicators (KPIs)
B) Sales and profit analysis
C) Customer satisfaction surveys
D) Break-even analysis - What is the primary focus of a “make-to-stock” production strategy?
A) Minimizing production time
B) Reducing product costs
C) Producing goods based on customer orders
D) Producing goods in advance and maintaining inventory - What is the main goal of demand forecasting in operations management?
A) To predict customer demand and adjust production accordingly
B) To predict the cost of raw materials
C) To determine the production capacity required
D) To forecast market trends - Which of the following tools is primarily used for evaluating the time and resources required for completing a project in operations management?
A) PERT (Program Evaluation and Review Technique)
B) SWOT analysis
C) Fishbone diagram
D) Gantt chart - Which of the following describes the “economies of scope” in operations management?
A) The cost advantages gained by producing multiple products at a single facility
B) The ability to standardize processes across different production lines
C) The reduction of production cost through bulk purchasing of materials
D) The advantage of producing a product in large quantities - Which of the following is a key principle of Total Productive Maintenance (TPM)?
A) Maintenance activities are only scheduled when machines break down.
B) Employees should be involved in the maintenance and improvement of production equipment.
C) TPM focuses only on reducing employee turnover.
D) TPM is a reactive approach to production. - What is the “critical path” in project management?
A) The path that takes the longest time to complete
B) The path that requires the least amount of resources
C) The path that is the shortest
D) The path that has the highest cost - Which of the following is an example of process control in production management?
A) Cost-benefit analysis
B) Monitoring production variables such as temperature and speed
C) Training employees on operational procedures
D) Setting up a marketing campaign - In operations management, what is “value stream mapping” primarily used for?
A) To design the product
B) To visualize and analyze the flow of materials and information
C) To calculate the break-even point
D) To prioritize marketing efforts - What is the primary advantage of flexible manufacturing systems (FMS)?
A) High production costs
B) Increased production speed with less setup time
C) Standardized product output
D) Lower production volume - Which of the following is a key characteristic of a service system?
A) Inventory can be stored for later use.
B) Production is highly standardized.
C) Services are intangible and cannot be stored.
D) Customer involvement is minimal. - Which of the following is the main focus of process design in production management?
A) The physical layout of production lines
B) The method of ensuring product quality
C) The flow of materials and information throughout the system
D) The scheduling of production orders - What is a key challenge in managing global supply chains?
A) Managing a single distribution center
B) The unpredictability of customer preferences
C) Coordination across multiple time zones and cultures
D) Maintaining a small inventory - Which of the following is a characteristic of a “mixed-model” production system?
A) The production of only one model of a product
B) The simultaneous production of multiple models on the same assembly line
C) The production of products in large quantities for inventory
D) The production of products based on customer demand - Which of the following strategies focuses on continuously improving processes to reduce waste and inefficiencies?
A) Six Sigma
B) Total quality management (TQM)
C) Lean manufacturing
D) Just-in-time (JIT) - What is the main focus of the “MRP” system in production management?
A) To track sales and customer orders
B) To calculate the materials required for production and when to order them
C) To forecast demand for raw materials
D) To schedule the production of finished goods - Which of the following is a characteristic of a “product” layout?
A) The layout is designed to maximize the variety of products produced.
B) Production processes are arranged to produce standardized products in a sequence.
C) Workers are responsible for multiple tasks across the production line.
D) It is used in job shops and custom production environments. - Which of the following is a key benefit of using an “assembly line” production method?
A) Increased product customization
B) High efficiency and reduced unit costs for large production volumes
C) Flexibility in the production of various products
D) Increased product variety - Which of the following operations management tools is used to identify the root cause of a problem?
A) Pareto analysis
B) Fishbone diagram
C) Gantt chart
D) Control chart
- Which of the following is an example of a “pull” system in production management?
A) Just-in-time (JIT)
B) Material Requirements Planning (MRP)
C) Economic Order Quantity (EOQ)
D) Batch production - What is the main advantage of outsourcing in operations management?
A) Increased control over production quality
B) Lower production costs due to access to specialized skills and economies of scale
C) Increased production flexibility
D) Greater flexibility in product design - Which of the following methods helps in minimizing inventory levels while ensuring enough materials are available for production?
A) MRP
B) EOQ
C) JIT
D) ABC analysis - Which of the following is NOT a component of Total Quality Management (TQM)?
A) Continuous improvement
B) Employee involvement
C) Randomized quality testing
D) Customer focus - Which production strategy is best for products that are highly standardized and produced in large quantities?
A) Make-to-order
B) Mass production
C) Custom production
D) Just-in-time production - Which of the following is the key principle behind the concept of “Kaizen”?
A) Continuous improvement through small, incremental changes
B) Standardization of work processes
C) Training employees for better skills
D) Minimization of product defects - Which of the following best describes “batch production”?
A) Products are made to order for specific customers
B) Large quantities of a single product are produced in stages
C) Products are manufactured in continuous production lines
D) Production is stopped after each batch is completed - Which of the following is the main purpose of a production schedule?
A) To identify production costs
B) To allocate resources and plan the flow of materials and labor
C) To determine demand forecasts
D) To set inventory control levels - Which of the following methods is used to minimize production downtime due to machine failure?
A) Poka-yoke
B) Preventive maintenance
C) Statistical Process Control (SPC)
D) Process redesign - In operations management, what does the term “lead time” refer to?
A) The time it takes to manufacture a product
B) The time between the receipt of an order and the delivery of the product
C) The time taken for inventory replenishment
D) The time it takes for production to reach full capacity - Which of the following production strategies is focused on maintaining high product quality and low costs by eliminating waste and improving efficiency?
A) Lean manufacturing
B) Mass production
C) Agile manufacturing
D) Make-to-order production - What is the purpose of “capacity planning” in production management?
A) To determine the maximum amount of product that can be produced in a given time frame
B) To forecast customer demand
C) To plan for employee training and development
D) To decide on the mix of products to be produced - Which of the following best describes a “fixed-position layout” in production?
A) Workers and equipment are grouped according to similar processes
B) Equipment and workers are located in a fixed position due to the size of the product
C) Products move through production stages along a fixed path
D) Products are processed in large batches before moving to the next stage - What is “Six Sigma” primarily used for in operations management?
A) To improve product design
B) To achieve product variety
C) To reduce defects and improve process quality
D) To determine the optimal production quantity - Which of the following is a key feature of a “job shop” production system?
A) High product variety, low volume
B) Mass production of identical products
C) Standardized production of high-demand products
D) Flexible manufacturing of a few product lines - Which of the following is a core principle of “Just-in-Time” (JIT) inventory management?
A) Production is done in large batches to minimize setup times
B) Inventory is ordered only when it is needed for production
C) Inventory is produced in advance to ensure that stock is available at all times
D) The production process is based on demand forecasts - Which of the following is an example of a qualitative forecasting method?
A) Moving averages
B) Delphi method
C) Exponential smoothing
D) Linear regression - Which of the following is a characteristic of a “service blueprint”?
A) It helps to visualize the flow of services and identify customer touchpoints
B) It is used to design a production line for physical products
C) It focuses on the raw materials required for service delivery
D) It is primarily used in inventory management - Which of the following is an advantage of “mass customization”?
A) Low unit cost for high volumes
B) Ability to offer products that are highly tailored to customer needs
C) No need for customer input
D) Standardized mass production techniques - What is the “bullwhip effect” in supply chain management?
A) The tendency for small fluctuations in customer demand to cause larger fluctuations in orders placed to suppliers
B) The ability to quickly adjust production capacity based on demand
C) The process of reducing supply chain complexity by outsourcing
D) The phenomenon where demand forecasts are always accurate - What is a key feature of a “cellular layout” in manufacturing?
A) Equipment and workstations are arranged by process type
B) Machines are grouped together to form production cells based on product families
C) Products move along a continuous production line
D) Workers perform specialized tasks on different products - Which of the following describes “demand forecasting” in production management?
A) The process of calculating the optimal inventory levels
B) The process of estimating future customer demand for a product
C) The process of evaluating the capacity of a production facility
D) The process of setting up a production schedule - Which of the following is a key challenge in “supply chain management”?
A) Ensuring that raw materials are delivered just in time for production
B) Determining the exact number of workers needed for each stage of production
C) Balancing production efficiency with customer satisfaction
D) Predicting the future price of raw materials accurately - Which of the following strategies focuses on achieving operational efficiency by minimizing the time it takes to respond to changes in customer demand?
A) Agile manufacturing
B) Mass production
C) Lean manufacturing
D) Batch production - What is the primary goal of “process redesign” in operations management?
A) To improve the flow of materials and reduce costs
B) To introduce new product lines
C) To reduce employee turnover
D) To automate production lines completely - Which of the following is a characteristic of “batch production”?
A) Products are produced continuously without interruption
B) High flexibility in production quantities and types
C) All products are identical and produced in high volumes
D) Low cost per unit for small quantities of custom products - Which of the following is the purpose of “forecasting” in operations management?
A) To predict customer demand and plan production accordingly
B) To evaluate the effectiveness of past production cycles
C) To control production costs
D) To ensure that inventory levels are minimized - Which of the following is a characteristic of “continuous production”?
A) High product variety and low volume
B) Standardized products produced in large volumes
C) Custom products made in small batches
D) Production is halted frequently for maintenance - What does “inventory turnover” measure in operations management?
A) The time taken to manufacture a product
B) The number of times inventory is sold and replaced in a given period
C) The amount of inventory held by a company at any given time
D) The cost of maintaining inventory - Which of the following is a key characteristic of “mass production”?
A) Customization of products based on customer needs
B) Production of high volumes of standardized products
C) Low initial investment in machinery and equipment
D) High product variety and low inventory levels
- Which of the following is the primary purpose of “statistical process control” (SPC)?
A) To reduce inventory levels
B) To monitor and control the quality of the production process
C) To determine the optimal production schedule
D) To forecast future demand - In a production system, what is the “bottleneck” process?
A) The process that consumes the least amount of resources
B) The process that has the highest rate of defects
C) The process that limits the overall output of the system
D) The process that operates at maximum efficiency - Which of the following is a key principle of “lean manufacturing”?
A) Maximizing inventory to prevent stockouts
B) Minimizing waste and improving process efficiency
C) Focusing on producing high volumes of identical products
D) Maximizing the use of automation in production processes - What is the main focus of “capacity planning” in operations management?
A) To predict demand for future products
B) To determine the resources needed to meet production goals
C) To evaluate the quality of raw materials
D) To identify the production bottlenecks - Which of the following is a key advantage of using a “make-to-order” production strategy?
A) High production flexibility and low inventory costs
B) High production volume and low setup costs
C) Standardized production of identical products
D) Ability to achieve economies of scale - What is the purpose of “aggregate planning” in production management?
A) To determine the best production technology
B) To establish production schedules for raw materials
C) To balance supply and demand over a medium-term horizon
D) To forecast future customer demand - Which of the following describes “cross-docking” in logistics and distribution?
A) Storing goods in a warehouse until they are needed for production
B) Transferring goods directly from inbound to outbound transportation, bypassing storage
C) Sorting goods at a central location for final delivery
D) Repacking goods into smaller quantities for retail distribution - In operations management, what is the primary objective of “work study”?
A) To develop a production schedule
B) To determine the best location for a production facility
C) To analyze and improve the efficiency of work processes
D) To design new products and services - Which of the following methods is commonly used for “forecasting” demand for a new product?
A) Moving averages
B) Delphi method
C) Exponential smoothing
D) Regression analysis - Which of the following is a key feature of “job enrichment” in work design?
A) Increasing employee task variety and responsibility
B) Standardizing work procedures for consistency
C) Minimizing employee interaction with production systems
D) Reducing the number of workers in a team - Which of the following is NOT a component of the “Toyota Production System” (TPS)?
A) Kanban
B) Jidoka
C) Just-in-time production
D) Six Sigma - In production and operations management, what does “line balancing” aim to achieve?
A) Ensuring equal distribution of tasks across production stations
B) Minimizing inventory levels
C) Maximizing the number of production lines
D) Standardizing the equipment used across production stations - Which of the following is a key characteristic of a “flexible manufacturing system” (FMS)?
A) High volume of standardized products
B) Capability to produce a variety of products with minimal setup time
C) Limited production flexibility
D) Use of a continuous flow production system - Which of the following is a benefit of “vertical integration” in operations management?
A) Increased dependence on suppliers
B) Greater control over the production process and supply chain
C) Increased need for outsourcing
D) Limited product variety - Which of the following is a characteristic of “make-to-stock” production systems?
A) Production is based on customer orders
B) High levels of customization for each product
C) Products are manufactured based on forecasted demand
D) Inventory is minimized by producing only when demand is certain - What is the primary goal of “supply chain management” in operations?
A) To maximize production volume
B) To improve communication and coordination among suppliers, manufacturers, and distributors
C) To reduce customer demand fluctuations
D) To increase employee productivity - In operations management, what is “cycle time”?
A) The time taken to produce a single unit of product
B) The time between the start and end of a production shift
C) The time it takes for raw materials to be delivered to production
D) The total amount of time to complete an entire batch of products - Which of the following is the primary advantage of “continuous production”?
A) High flexibility in producing different product types
B) Low production costs due to economies of scale
C) Ability to customize products for each customer
D) Ability to stop and start production frequently - Which of the following is NOT a goal of “Total Productive Maintenance” (TPM)?
A) Increasing machine uptime and availability
B) Involving workers in maintenance activities
C) Reducing defects by improving process efficiency
D) Increasing production volume by reducing downtime - Which of the following describes “batch processing” in production management?
A) The process of producing a product in a continuous flow
B) The production of products in small, distinct batches with the same setup
C) The production of customized products based on customer orders
D) The processing of products individually, with no interruption - What is the main purpose of “inventory control” in operations management?
A) To ensure that production schedules are met
B) To maintain the optimal balance between stock availability and cost
C) To determine the selling price of products
D) To improve supplier relationships - Which of the following is a major disadvantage of “make-to-order” production systems?
A) High levels of inventory
B) Longer lead times to fulfill customer orders
C) Low product customization
D) High production flexibility - In a production system, which of the following best describes “lean thinking”?
A) Maximizing product variety while minimizing costs
B) Reducing waste and improving value for the customer
C) Focusing on creating highly complex products
D) Increasing production cycles to meet demand quickly - What does “FIFO” (First In, First Out) mean in inventory management?
A) The most recently produced products are sold first
B) Products are sold in the order they are produced or received
C) The oldest products are stored in the front of the warehouse
D) Inventory is replenished by a specific amount at regular intervals - Which of the following is the best strategy to manage fluctuations in customer demand?
A) Increase production in response to higher demand
B) Use forecasting and flexible production capacity to match demand
C) Maintain a high inventory of finished products
D) Focus on reducing product variety - Which of the following best describes “process mapping” in operations management?
A) A visual representation of the steps involved in a production process
B) A process used to allocate resources across multiple production lines
C) A method for calculating the total time taken for production
D) A system for forecasting future product demand - In production, what is the purpose of “productivity improvement”?
A) To increase the volume of products produced with the same or fewer resources
B) To increase the level of customization in products
C) To reduce the time taken to produce each product
D) To lower labor costs per unit produced - What is “modular design” in product development?
A) Designing products in fixed components that can be easily combined into different configurations
B) Focusing on creating a single product design for mass production
C) Making products from a single material to reduce complexity
D) Customizing each product according to the customer’s preferences - Which of the following is a key feature of “just-in-case” inventory management?
A) Inventory is kept to meet unexpected demand
B) No inventory is kept; products are ordered only as needed
C) All products are standardized to avoid excess stock
D) Inventory levels are set to zero in anticipation of demand fluctuations - Which of the following strategies focuses on the continuous improvement of processes and products?
A) Lean manufacturing
B) Agile manufacturing
C) Six Sigma
D) Total quality management
- What does the “push system” in production scheduling involve?
A) Producing items based on customer orders
B) Producing items based on forecasted demand
C) Responding to customer demand as it arises
D) Creating a production schedule with no input from the sales team - Which of the following is NOT a characteristic of “just-in-time” (JIT) inventory systems?
A) Minimal inventory held at any given time
B) Production is triggered by customer demand
C) High levels of finished goods inventory
D) Close coordination with suppliers for timely deliveries - What is the primary purpose of “capacity utilization” in operations management?
A) To increase the production rate
B) To ensure optimal use of production resources
C) To predict future demand for products
D) To reduce inventory costs - Which of the following best defines “total quality management” (TQM)?
A) A process for achieving maximum production speed
B) A strategy to reduce costs through automation
C) A comprehensive approach to improving quality at all levels of the organization
D) A method for managing supply chain costs - What does the “kanban” system in production management focus on?
A) Standardizing work processes
B) Managing production scheduling with minimal inventory
C) Ensuring product quality through testing
D) Forecasting demand for new products - Which of the following best describes a “job shop” production process?
A) A high-volume, low-variety production system
B) A system where products are made to order in small batches
C) A highly automated system producing standardized products
D) A production system with continuous flow and no interruptions - Which type of production system is characterized by continuous, high-volume, and standardized products?
A) Batch production
B) Make-to-order
C) Project-based production
D) Continuous production - Which of the following describes “process reengineering” in operations management?
A) Improving employee satisfaction
B) Radical redesign of business processes to improve performance
C) Implementing technology to streamline production
D) Reducing inventory levels - What is the primary goal of “operations research” in production management?
A) To forecast market trends
B) To apply mathematical models to optimize production processes
C) To minimize employee turnover
D) To reduce customer wait times - Which of the following is the main focus of “service operations management”?
A) Streamlining production workflows
B) Designing processes to deliver services efficiently
C) Managing raw material supply chains
D) Increasing product shelf life - Which of the following describes the “lean production” philosophy?
A) Maximizing product variety
B) Minimizing waste and improving efficiency
C) Focusing on automation to increase production speed
D) Centralizing all manufacturing operations - What is the purpose of “time and motion studies” in production management?
A) To analyze the time it takes to complete tasks and improve productivity
B) To predict customer demand patterns
C) To measure the effectiveness of advertising campaigns
D) To reduce product costs through material substitutions - What does the term “economies of scale” refer to?
A) The cost advantage that arises from increased production
B) The costs associated with maintaining a large inventory
C) The advantages of producing high-quality products
D) The reduction in product customization - In the context of operations management, what is “production scheduling”?
A) A system for determining long-term capacity requirements
B) A process for selecting suppliers
C) The process of planning and coordinating production activities
D) A tool for forecasting market demand - Which of the following best describes the “service blueprint” in service operations management?
A) A detailed map of customer interactions and service processes
B) A flowchart of the production process for goods
C) A system for tracking inventory
D) A forecasting tool for future service demand - Which of the following is the key advantage of “mass customization”?
A) High flexibility to produce personalized products at low cost
B) High volume production of standardized products
C) Ability to reduce product variety
D) Minimizing supply chain disruptions - In the context of operations, what does “lead time” refer to?
A) The time it takes to set up equipment
B) The time between the receipt of an order and its fulfillment
C) The time it takes to produce a batch of products
D) The time it takes to receive raw materials from suppliers - What does the “make-to-stock” production strategy emphasize?
A) Producing items only after customer orders are received
B) Producing products based on customer specifications
C) Producing products based on demand forecasts and holding them in inventory
D) Focusing on product customization - Which of the following is an example of “economies of scope”?
A) Reducing unit costs by increasing production volume of a single product
B) Reducing costs by producing a variety of related products together
C) Increasing the use of automation to lower labor costs
D) Increasing inventory to achieve cost efficiency - What is the purpose of “inventory turnover” in operations management?
A) To assess how quickly raw materials are consumed
B) To determine how often inventory is sold and replaced within a given period
C) To evaluate employee productivity in managing inventory
D) To calculate the total cost of holding inventory - Which of the following best describes “six sigma” in operations management?
A) A method for maximizing production volume
B) A set of techniques to improve process quality and minimize defects
C) A way of forecasting future market demand
D) A strategy to reduce inventory levels - Which of the following is a key component of “supply chain management”?
A) Maximizing inventory levels to prevent stockouts
B) Coordinating activities from raw material sourcing to product delivery
C) Increasing the number of suppliers for a product
D) Reducing the time it takes to design new products - What is the main purpose of “work-in-progress” (WIP) inventory management?
A) To maintain inventory levels of raw materials
B) To ensure that semi-finished goods are ready for the next production step
C) To store finished products for distribution
D) To track inventory turnover rates - What is the primary focus of “operations strategy” in production management?
A) Developing marketing strategies to increase sales
B) Designing processes that align production capabilities with business goals
C) Increasing the variety of products offered by a company
D) Focusing on automation to reduce labor costs - Which of the following is a common method for “forecasting” demand in production?
A) Pareto analysis
B) Moving averages
C) Process mapping
D) Lean Six Sigma - What is “capacity planning” in operations management?
A) The process of evaluating how much production is needed to meet demand
B) The process of designing product features
C) The process of reducing production costs
D) The process of forecasting future sales trends - In operations management, what does “standardization” refer to?
A) Customizing products based on customer specifications
B) Producing products with a fixed set of features and processes
C) Reducing production costs through bulk purchases
D) Minimizing the variety of products produced - Which of the following is an example of “product line balancing”?
A) Ensuring that all workers perform the same task
B) Designing a product portfolio with varied features and prices
C) Allocating tasks across production lines to ensure even workloads
D) Focusing on producing a single product at a time - What does “lead time reduction” focus on in production management?
A) Increasing the total amount of finished goods inventory
B) Reducing the time it takes to fulfill customer orders from start to finish
C) Improving the quality control process in production
D) Minimizing the number of suppliers used in production - Which of the following is an example of “job enlargement”?
A) Adding more variety to the tasks performed by workers
B) Increasing the responsibility and decision-making power of employees
C) Reducing the number of tasks performed by workers
D) Assigning workers to perform specialized tasks
- Which of the following best defines “supply chain integration”?
A) The process of aligning and coordinating all functions involved in the supply chain to improve efficiency
B) The process of contracting with suppliers for raw materials
C) The act of optimizing individual processes in a supply chain
D) The use of technology to automate the supply chain - In a “make-to-order” production environment, what determines when production starts?
A) The availability of raw materials
B) The forecasted demand for products
C) A customer’s order
D) The number of products in inventory - What is the purpose of a “master production schedule” (MPS)?
A) To determine the materials needed for production
B) To control inventory levels for raw materials
C) To plan the quantities and timing of finished goods production
D) To allocate production resources between different departments - Which of the following describes a “fixed-position layout” in production?
A) A system where products move through fixed stages of production
B) A layout used for large, bulky products that remain in one location
C) A system where products are mass-produced in large batches
D) A layout where workstations are arranged in a straight line - What does “just-in-case” inventory management aim to achieve?
A) Minimizing inventory levels to reduce holding costs
B) Ensuring inventory levels are sufficient in case of unexpected demand
C) Reducing the time taken to reorder materials
D) Reducing the complexity of the production process - Which of the following is a key benefit of “automation” in production?
A) Reduced labor costs
B) Increased product variety
C) Improved employee satisfaction
D) More flexible production processes - What is the “bullwhip effect” in supply chain management?
A) A situation where small changes in consumer demand lead to large fluctuations in order quantities along the supply chain
B) The effect of inventory shortages on production schedules
C) A process for controlling quality in the supply chain
D) A reduction in product quality due to inconsistent supplier deliveries - Which of the following is a characteristic of “batch production”?
A) Products are made in large volumes without interruption
B) Production is based on customer orders
C) Products are produced in small quantities with different configurations
D) The production process is continuous, with no need for changeovers - Which of the following best describes “sustainability” in operations management?
A) Maximizing short-term profits
B) Designing processes that have minimal negative environmental and social impacts
C) Reducing production costs by using cheaper raw materials
D) Focusing on high-volume production and cost efficiency - What is the main goal of “demand forecasting” in production management?
A) To predict future customer demand to ensure the right amount of products are available
B) To determine the best suppliers for materials
C) To reduce production costs through automation
D) To increase product variety and customization - Which of the following is a key principle of “lean manufacturing”?
A) Increasing production flexibility
B) Reducing waste and improving efficiency
C) Increasing product customization
D) Maximizing inventory to avoid stockouts - What is the function of “forecasting” in a supply chain?
A) To estimate the future needs for products or services
B) To calculate the cost of materials
C) To determine the optimal production layout
D) To identify new suppliers for raw materials - What is the “economies of scale” effect in production?
A) Reducing production costs by increasing the volume of production
B) Reducing raw material costs through bulk purchases
C) Minimizing waste in the production process
D) Increasing product customization to meet customer demand - What is the main goal of “capacity planning” in production management?
A) To maximize product quality
B) To determine the necessary production resources to meet future demand
C) To calculate the optimal inventory levels
D) To forecast future customer demand - Which of the following describes the concept of “workflow” in production management?
A) The amount of time taken for an employee to complete a task
B) The sequence of processes and operations involved in producing a product
C) The number of workstations used in a production system
D) The time it takes to produce one unit of a product - Which of the following is a primary objective of “aggregate planning”?
A) To balance production capacity with customer demand over a specific period
B) To allocate production resources to individual products
C) To reduce customer wait times
D) To forecast future sales of products - In operations management, what does “productivity” refer to?
A) The total output produced per unit of input
B) The efficiency of individual workers
C) The cost of raw materials used in production
D) The time it takes to produce a product - What does the “Pareto principle” (80/20 rule) suggest in operations management?
A) 80% of production costs come from 20% of the processes
B) 20% of products account for 80% of sales
C) 80% of resources should be allocated to the most important activities
D) 20% of customers account for 80% of complaints - Which of the following is a key characteristic of “make-to-stock” production?
A) Production is triggered by customer orders
B) Products are made based on forecasts and stored in inventory
C) Production is based on individual product specifications
D) Production is flexible and customized to meet customer needs - What is “capacity utilization” in operations management?
A) The percentage of production capacity that is actually used
B) The amount of inventory held to prevent stockouts
C) The maximum production output a company can achieve
D) The time taken to complete production processes - Which of the following is a common method used for “inventory control”?
A) The Economic Order Quantity (EOQ) model
B) The Pareto analysis
C) The Total Quality Management (TQM) system
D) The Break-Even Analysis - Which of the following best defines “quality control” in production management?
A) The process of ensuring that all products meet specified standards of quality
B) The process of planning production schedules
C) The method used to increase the volume of products produced
D) The system for minimizing production costs - What is a “production bottleneck”?
A) The most efficient part of the production process
B) A stage in production where capacity is less than demand, causing delays
C) A process used to speed up production
D) The stage where raw materials are stored before production - Which of the following is a key advantage of “modular design” in production?
A) Reduced variety in product offerings
B) Increased flexibility and easier customization of products
C) Reduced production costs by standardizing products
D) Faster time to market for new products - What does “process optimization” aim to achieve in production?
A) Maximizing customer satisfaction through product variety
B) Improving production efficiency and reducing costs
C) Increasing product inventory to meet demand
D) Reducing the use of technology in production - Which of the following is a key advantage of “batch production”?
A) Low levels of inventory are maintained at all times
B) High flexibility to produce a variety of products
C) Continuous flow of production without changeovers
D) Low customization of products - What is the main objective of “lean production”?
A) To reduce costs by increasing automation
B) To eliminate waste and improve value for customers
C) To increase the variety of products produced
D) To produce products faster than competitors - In which of the following systems is production triggered by customer orders?
A) Make-to-stock
B) Make-to-order
C) Engineer-to-order
D) Just-in-time - Which of the following is a characteristic of “continuous production”?
A) The production process runs without interruption to produce a standardized product
B) The production process is highly flexible and produces customized products
C) Products are made in batches of varying sizes
D) Production is based on customer orders rather than forecasts - Which of the following is a tool used in “quality management”?
A) Work breakdown structure
B) Fishbone diagram
C) Gantt chart
D) Economic order quantity
- Which of the following best describes “service blueprinting” in service operations management?
A) The process of designing a service based on customer feedback
B) The method of visualizing and documenting all steps in a service delivery process
C) The system of measuring service quality using customer surveys
D) The technique for forecasting service demand - Which of the following is the primary goal of “inventory management” in operations?
A) To minimize the total amount of inventory while meeting demand
B) To store excess materials to prevent stockouts
C) To increase the variety of products produced
D) To ensure that raw materials are always available on the production floor - In the context of production management, what does “capacity” refer to?
A) The maximum amount of work that can be performed in a given time period
B) The total amount of inventory that can be stored
C) The number of products that can be sold to customers
D) The total workforce required to meet demand - Which of the following is a common characteristic of “job-shop production”?
A) Large-scale, continuous production of standardized products
B) The production of customized products in small batches
C) The mass production of goods with no variation
D) The production of goods based on customer demand in real-time - What does “total quality management” (TQM) focus on in operations?
A) Reducing production costs by increasing automation
B) Improving the quality of products and services by involving all employees in the process
C) Maximizing the number of products produced per day
D) Focusing on customer service rather than product quality - Which of the following is the primary objective of “just-in-time” (JIT) production?
A) To produce large quantities of products and store them for later sale
B) To minimize inventory levels and produce items only when needed
C) To increase product variety and customization
D) To reduce the number of employees involved in production - Which of the following is a major benefit of “automation” in production?
A) Increased labor costs
B) Enhanced flexibility in product design
C) Consistent product quality and reduced human error
D) Reduced production capacity - Which of the following describes “lead time” in production management?
A) The time it takes to receive payment from customers after delivery
B) The time required to design and develop a product
C) The time between ordering raw materials and receiving them
D) The total time taken from order placement to the final product delivery - In “aggregate production planning,” what is the primary focus?
A) To control and optimize the production schedules for individual products
B) To manage the total production capacity and workforce over a specified period
C) To design production processes for new products
D) To evaluate customer demand for production planning purposes - Which of the following is an example of a “pull system” in production?
A) The production of goods based on forecasted demand
B) Producing goods only when a customer places an order
C) The creation of products based on inventory levels
D) A system that manufactures in large quantities to reduce unit cost - Which of the following is a common method for calculating “economic order quantity” (EOQ)?
A) The number of orders per year multiplied by the order cost
B) The square root of the total cost of inventory divided by the holding cost per unit
C) The difference between the maximum and minimum inventory levels
D) The total production time divided by the number of workstations - What is the primary goal of “process reengineering” in production?
A) To standardize all processes and eliminate variation
B) To redesign processes to improve efficiency and reduce costs
C) To automate manual processes
D) To reduce the number of suppliers used in production - In a “make-to-stock” production system, what drives the production schedule?
A) Customer orders and demand
B) Predictions based on historical demand and forecasts
C) The availability of raw materials
D) Real-time orders from retailers - Which of the following is a characteristic of “continuous flow” production?
A) The production process is flexible and allows for customization of products
B) Products are made in discrete batches and processed at different stations
C) The production process runs 24/7 without interruption for continuous output
D) Products are produced based on individual customer specifications - Which of the following is an example of a “push system” in production?
A) Producing goods based on customer demand and sales orders
B) Manufacturing products in anticipation of future demand
C) Creating products based on real-time orders from customers
D) Using customer forecasts to plan production schedules - What is “inventory turnover” in operations management?
A) The rate at which inventory is sold and replaced within a given period
B) The time it takes to receive raw materials from suppliers
C) The number of products produced each day
D) The amount of inventory held by a company at any given time - What is “capacity planning” in the context of operations management?
A) The process of deciding the size of the workforce required for production
B) The estimation of the maximum output a system can produce in a given time
C) The process of designing a facility for efficient production
D) The process of determining the optimal inventory levels for raw materials - What is the purpose of “line balancing” in assembly line production?
A) To ensure that each workstation has an equal amount of work to do
B) To minimize the amount of work-in-progress inventory
C) To optimize the placement of workstations on the production floor
D) To increase the variety of products produced on the assembly line - Which of the following is an example of “process costing”?
A) Tracking the costs associated with the production of a single custom item
B) Allocating overhead costs based on the amount of time spent on each job
C) Tracking the cost of producing large quantities of a standardized product
D) Calculating the total costs involved in distributing products to customers - Which of the following is the primary focus of “capacity utilization”?
A) Minimizing production costs through automation
B) Maximizing the output of a production system relative to its design capacity
C) Ensuring that raw materials are always available for production
D) Determining the best layout for production facilities - What is “simulation” used for in operations management?
A) To reduce the complexity of the production process
B) To model different production scenarios and assess potential outcomes
C) To forecast future product demand
D) To test the effectiveness of a new inventory control system - What is the purpose of a “kanban” system in production?
A) To reduce lead time by controlling the flow of materials based on demand
B) To automatically reorder materials when inventory reaches a certain level
C) To forecast demand for raw materials over a specified period
D) To store excess inventory for future production runs - What is the main goal of “lean manufacturing”?
A) To maximize customer satisfaction by offering more product options
B) To improve product quality by reducing variability and waste
C) To increase production volumes by minimizing labor costs
D) To decrease the time taken for production by using automation - What is the primary benefit of “modular design” in product development?
A) It allows for a wide variety of products with minimal customization
B) It reduces the total cost of production by standardizing components
C) It simplifies the design process for new products
D) It enables companies to produce products in smaller quantities - What does “product life cycle management” (PLM) focus on?
A) The management of product designs and prototypes through their life cycle
B) The process of ensuring products meet customer expectations during production
C) The forecast of future product sales and demand
D) The management of inventory levels for product materials
- Which of the following is a key feature of “mass customization” in production?
A) High-volume production of standardized products
B) A flexible production system that allows for individualized products
C) Production of high-cost, low-volume products
D) Producing products based on long-term forecasts - In the context of operations management, what is a “bullwhip effect”?
A) A decrease in production cost due to improved forecasting
B) The amplification of demand fluctuations along the supply chain
C) A strategy to synchronize production schedules
D) A method of reducing lead times across suppliers - What is the purpose of “supply chain management”?
A) To forecast demand based on historical data
B) To manage the movement of goods and materials from suppliers to customers
C) To design efficient production processes
D) To optimize inventory levels within the production system - Which of the following is a characteristic of a “make-to-order” production system?
A) Products are manufactured in anticipation of customer demand
B) Production begins only after a customer places an order
C) Large batches of standardized products are produced
D) Products are produced based on forecasted demand - What is the main advantage of using a “functional layout” in production?
A) It allows for the production of customized products at a low cost
B) It organizes machines and workers according to similar functions
C) It optimizes the flow of materials by grouping similar products together
D) It minimizes the number of workers needed on the production floor - In the context of operations management, what does “line-flow production” refer to?
A) A system where production occurs in a series of discrete steps with separate workstations
B) The continuous production of identical products in a straight line sequence
C) The use of flexible production systems to allow for customization
D) A production method that focuses on reducing waste through lean principles - What is the purpose of “forecasting” in operations management?
A) To determine the number of employees needed for production
B) To predict future demand for products and materials
C) To assess the efficiency of current production methods
D) To evaluate the performance of suppliers - Which of the following is a key principle of “Six Sigma” methodology?
A) To increase production volumes while minimizing costs
B) To identify and eliminate defects in processes to improve quality
C) To focus on customer satisfaction at the expense of process efficiency
D) To implement automation for mass production of standardized products - What is the role of “work-in-progress” (WIP) inventory in production?
A) To store raw materials before they are needed for production
B) To hold finished products before they are shipped to customers
C) To track products that are in various stages of the production process
D) To store products that are awaiting final quality inspection - What is “process capacity” in the context of operations management?
A) The total amount of inventory required for production
B) The maximum output that a production system can achieve in a given time period
C) The total number of employees required to operate production equipment
D) The amount of time it takes to complete a production run - In “lean production,” what is the goal of “5S”?
A) To ensure products are delivered just in time for customer needs
B) To create a standardized process for managing supply chains
C) To organize the workplace by eliminating waste and improving efficiency
D) To increase the speed of product production by eliminating unnecessary tasks - Which of the following best describes the “theory of constraints” (TOC)?
A) A production strategy that emphasizes eliminating bottlenecks in the system
B) A method for forecasting future product demand
C) A technique for improving the speed of production through automation
D) A strategy for minimizing inventory by focusing on lean principles - What is the “Pareto principle” in operations management?
A) The principle that 80% of production defects are caused by 20% of the causes
B) The idea that all customers should be treated equally
C) The concept that processes should be divided into 20% of core activities
D) The approach to forecasting demand using historical data and trends - Which of the following is a key feature of a “cellular manufacturing” system?
A) Products are made in large batches and then stored for future use
B) The production process is organized into cells based on product families
C) Products are made to stock based on demand forecasts
D) Each product is produced by a dedicated team of workers with specialized skills - What is the main purpose of “total productive maintenance” (TPM)?
A) To improve the efficiency of the workforce
B) To increase production by adding more workstations
C) To reduce downtime and prevent equipment breakdowns through proactive maintenance
D) To develop training programs for new employees - What is the key feature of a “continuous improvement” (CI) culture in operations management?
A) A focus on reducing product variety to simplify production processes
B) The ongoing effort to improve products, services, and processes incrementally
C) The implementation of advanced technology to automate all production processes
D) A strategy of reducing labor costs by cutting employee benefits - Which of the following best describes “batch production”?
A) The continuous production of goods without interruption
B) The production of customized products one at a time
C) The production of goods in distinct batches or groups
D) The use of robots to produce goods in large quantities - What is “capacity planning” used for in operations management?
A) To forecast demand for raw materials
B) To optimize inventory levels in a production system
C) To determine the maximum output that can be achieved within a given time frame
D) To allocate resources based on customer orders - In the context of operations management, what is “overproduction”?
A) Producing too many goods to meet customer demand
B) A production process where all employees work overtime
C) The process of producing too few goods, resulting in stockouts
D) Using too much raw material during production, causing waste - Which of the following describes the “value stream mapping” (VSM) technique in lean production?
A) A tool used to monitor and measure the performance of individual workstations
B) A method of identifying and eliminating waste from the production process
C) A technique for tracking the flow of materials and information through the supply chain
D) A method for creating standardized work processes for employees - Which of the following is a characteristic of a “service blueprint”?
A) It maps out the physical layout of the production floor
B) It tracks the movement of raw materials in the supply chain
C) It visualizes the customer experience and service interactions
D) It predicts future demand for service workers - What does “line flow production” emphasize in the context of manufacturing?
A) The use of large, flexible workstations to produce a wide variety of products
B) The continuous and highly standardized production of goods in a specific sequence
C) The production of customized products based on individual customer preferences
D) The integration of high levels of automation to speed up production - What is “cost of quality” in operations management?
A) The cost of managing supply chains and logistics
B) The total cost incurred to produce high-quality products
C) The cost of training employees to improve production techniques
D) The cost associated with preventing and correcting defects in production - Which of the following best defines “outsourcing” in operations management?
A) The process of producing all goods in-house without involving external suppliers
B) The act of hiring external companies to provide goods or services at lower costs
C) The use of technology to automate all production processes
D) The process of producing goods only when customer orders are received - Which of the following is an example of “value-added” activity in a production process?
A) Storing raw materials in inventory
B) Performing unnecessary quality checks
C) Assembling components into a finished product
D) Waiting for machines to be repaired
- Which of the following is a characteristic of “just-in-time” (JIT) inventory management?
A) Holding large amounts of inventory to prevent stockouts
B) Ordering materials only when they are needed in the production process
C) Focusing on batch production to reduce lead time
D) Relying on forecasts to determine inventory levels - What is the goal of “capacity utilization” in production management?
A) To increase production levels above the maximum capacity
B) To minimize downtime and maximize the use of available production capacity
C) To reduce the cost of producing goods by decreasing the production output
D) To hire additional workers to increase production capacity - What is the “make-or-buy” decision in operations management?
A) Deciding whether to make a product in-house or purchase it from an external supplier
B) Deciding whether to increase production or reduce costs
C) Deciding whether to manufacture a product for stock or on a made-to-order basis
D) Deciding whether to automate a production process or use manual labor - Which of the following is an example of “economies of scale”?
A) Reducing production costs by producing goods in larger quantities
B) Increasing product variety to meet customer needs
C) Reducing the size of the production facility to lower overhead costs
D) Relying on manual labor instead of automation to save costs - What does the “critical path” in project management represent?
A) The path that takes the longest time to complete in the project schedule
B) The sequence of tasks that can be performed simultaneously without affecting the project deadline
C) The path that allows for the most efficient use of resources in the project
D) The sequence of tasks that must be completed first in the project timeline - What is the main purpose of “aggregate planning” in production management?
A) To balance supply and demand by adjusting production rates and inventory levels
B) To forecast long-term demand for products based on historical data
C) To select the best suppliers for raw materials
D) To optimize the layout of production facilities - Which of the following best describes “modular production”?
A) The production of goods using standardized, interchangeable components
B) The creation of products in large, uniform batches
C) The production of highly customized products for individual customers
D) A flexible manufacturing system that adapts to changing demand patterns - What is “value engineering” in the context of operations management?
A) A method of increasing production volume to reduce costs
B) A technique for reducing production costs by analyzing and improving the product design
C) A strategy for improving worker productivity through training programs
D) A tool for managing supplier relationships and negotiating better contracts - Which of the following best describes a “pull” production system?
A) Products are produced based on forecasted demand
B) Products are made in advance and stocked in inventory
C) Production is triggered by customer demand or orders
D) A process where the production schedule is rigid and does not change - In “lean manufacturing,” what is the main focus of “kaizen”?
A) Increasing production by adding more machines to the system
B) Improving efficiency through continuous, incremental improvements in processes
C) Reducing production costs by outsourcing non-core activities
D) Reducing product defects through advanced technology and automation - What does “cycle time” refer to in production management?
A) The total time taken to complete a production run from start to finish
B) The time it takes for raw materials to be converted into finished goods
C) The time it takes for a product to move through each stage of production
D) The time required for the machinery to be serviced between production runs - What is the “capacity cushion” in operations management?
A) The amount of time reserved for maintenance between production runs
B) The extra capacity built into the system to handle unexpected demand
C) The difference between maximum production capacity and current output
D) The amount of inventory held in reserve to prevent stockouts - Which of the following is a characteristic of “fixed-position layout” in production?
A) Equipment is arranged in a linear sequence, with each step of production performed at a separate workstation
B) Products are produced at different workstations based on customer orders
C) Workers and equipment move around the product as it is being assembled
D) The production facility is arranged around specific functional departments - What is “total cost of ownership” (TCO) in supply chain management?
A) The cost of raw materials and labor required to produce a product
B) The total cost of producing goods, including both fixed and variable costs
C) The total cost of acquiring and using a product, including maintenance, disposal, and other hidden costs
D) The cost of the product at the time of purchase, without considering additional expenses - What is “production smoothing” in operations management?
A) Adjusting production schedules to prevent overproduction and underproduction
B) The process of increasing production capacity to meet peak demand
C) Reducing inventory levels to avoid excess stock
D) Standardizing production methods across all workstations - Which of the following best describes “lean production”?
A) A system that focuses on minimizing waste while maximizing value for the customer
B) A strategy that prioritizes high-volume production over customization
C) A production process that relies on advanced robotics and automation
D) A method of increasing worker productivity through extensive overtime - What is the role of “demand forecasting” in operations management?
A) To determine the price at which products should be sold to maximize profit
B) To predict future demand for products in order to plan production and inventory levels
C) To assess the capacity requirements of the production system
D) To evaluate the performance of suppliers and manufacturers - In the context of operations management, what does “inventory turnover” measure?
A) The rate at which raw materials are converted into finished products
B) The speed at which inventory is sold and replaced in a given time period
C) The total cost of holding inventory over a specific time frame
D) The average number of days it takes to produce a product from start to finish - What is the main purpose of “strategic sourcing” in supply chain management?
A) To negotiate the lowest possible price with suppliers
B) To improve relationships with key suppliers and reduce costs through collaboration
C) To centralize procurement activities and standardize product offerings
D) To implement just-in-time inventory practices across the supply chain - Which of the following is a key characteristic of a “service-oriented” production system?
A) Production is focused on high-volume, low-cost manufacturing of tangible goods
B) The focus is on providing intangible services that are customized for individual customers
C) The production process is highly automated to reduce the need for human labor
D) Production is carried out in large-scale batches for cost efficiency
- What is “supply chain management” (SCM)?
A) The process of designing and planning the production schedule
B) The management of all activities involved in sourcing, procurement, conversion, and logistics
C) The process of hiring and training workers for production
D) The method of determining the prices of products based on market conditions - Which of the following is an example of “process layout” in production?
A) Workstations are arranged according to the flow of materials in a continuous process
B) The production line is set up in a specific order to facilitate mass production
C) Machines are grouped by their functions in a process, such as cutting, welding, or painting
D) Products are manufactured in batches based on customer orders - What is the goal of “total quality management” (TQM)?
A) To maximize the number of units produced by improving employee productivity
B) To eliminate waste by using fewer resources in production
C) To improve the quality of products and services through continuous improvement
D) To reduce production costs by outsourcing manufacturing processes - Which of the following is the main focus of “six sigma” in production management?
A) Reducing defects and variability in processes to improve product quality
B) Increasing production volume to meet customer demand
C) Standardizing production methods to reduce costs
D) Increasing inventory levels to prevent stockouts - Which of the following is a key principle of “sustainability” in operations management?
A) Focusing solely on maximizing profits without regard for the environment
B) Reducing waste and conserving resources in the production process
C) Prioritizing the production of high-quality goods over cost reduction
D) Ignoring social and environmental factors in decision-making - What does “batch production” refer to in manufacturing?
A) Producing a large number of identical products in a continuous flow
B) Producing products in small groups or batches based on demand
C) Customizing products to individual customer specifications
D) The production of highly standardized goods in large quantities - In operations management, what does “lead time” refer to?
A) The time it takes to complete one cycle of production
B) The amount of time required to manufacture a product from start to finish
C) The time taken to order and receive raw materials for production
D) The total time it takes to fulfill a customer order, from order to delivery - Which of the following is an example of “forward integration” in operations management?
A) A company expands its operations to include raw material production
B) A company begins to provide customer service for products after the sale
C) A company enters a new market to sell its products
D) A company acquires its competitors to increase market share - What is the purpose of “inventory management” in production?
A) To ensure the production process is automated and efficient
B) To reduce lead time and make products available when customers need them
C) To manage relationships with suppliers to reduce costs
D) To standardize the design of products to simplify production - What is the primary purpose of “workflow analysis” in operations management?
A) To determine the cost of producing products
B) To analyze the sequence of activities involved in production and identify inefficiencies
C) To create new products based on customer preferences
D) To calculate the optimal inventory levels needed to meet demand - What does “ERP” (Enterprise Resource Planning) software help organizations manage?
A) Only customer orders and sales
B) The integration of business functions such as finance, HR, supply chain, and manufacturing
C) The management of product designs and prototypes
D) The relationship between employees and management - What is the “fixed-order quantity” model in inventory management?
A) A system that orders inventory when a specific minimum level is reached
B) A system where inventory is ordered in fixed quantities at regular intervals
C) A method of determining the best time to replenish inventory based on demand forecasts
D) A model that eliminates the need for any safety stock - Which of the following is an example of “mass customization”?
A) Offering a product that is mass-produced in standard sizes but allows for personal engraving
B) Producing custom-made products for each individual customer
C) Creating a product line that only targets a niche market
D) Using robots and automation to standardize the production process - What does “lean inventory” mean in production management?
A) Holding as much inventory as possible to ensure availability
B) Minimizing inventory levels by receiving materials just in time for production
C) Increasing inventory levels to prevent stockouts
D) Focusing on long-term storage of products rather than immediate production - What is the “bullwhip effect” in supply chain management?
A) When a small change in consumer demand causes large fluctuations in inventory and production
B) A method of managing inventory that focuses on predicting long-term demand
C) A strategy for controlling costs by reducing excess production
D) The process of speeding up production to meet unexpected demand - Which of the following is a key function of “operations scheduling”?
A) To determine how much raw material is needed for production
B) To allocate resources and determine the timeline for production activities
C) To manage supplier relationships and order materials
D) To track customer orders and ensure on-time delivery - Which of the following is true of “project management” in operations?
A) It involves managing routine, repetitive tasks in a standardized process
B) It focuses on controlling production schedules and minimizing costs
C) It requires managing a series of interconnected tasks with specific goals and deadlines
D) It primarily focuses on mass-producing identical products for large-scale markets - What does “JIT” (Just-In-Time) production emphasize?
A) Maintaining large inventories to prevent stockouts
B) Producing only what is needed when it is needed, with minimal waste
C) Ordering raw materials in bulk to take advantage of discounts
D) Producing in large batches to increase efficiency and reduce costs - What is a “product life cycle” in operations management?
A) The time it takes to design and launch a new product
B) The stages a product goes through from introduction to decline, impacting production decisions
C) The manufacturing process for a product from raw materials to finished goods
D) The cost breakdown of producing a single unit of a product - Which of the following is a key feature of “flexible manufacturing systems” (FMS)?
A) Using rigid, pre-programmed production schedules that do not change
B) Allowing the production process to quickly adapt to different products and production volumes
C) Focusing on producing a single type of product in large quantities
D) Standardizing production across all product lines to reduce variability
- What is the primary goal of “capacity planning” in production?
A) To maximize the production cost
B) To ensure the production process runs without interruptions
C) To determine the necessary resources to meet future production demand
D) To minimize the number of employees required for production - Which of the following describes “make-to-order” production?
A) Products are made in large quantities based on forecasts
B) Products are manufactured only after customer orders are received
C) Products are made to stock, ready for sale without customization
D) Products are mass-produced and kept in inventory for future orders - What is the purpose of “total productive maintenance” (TPM) in production systems?
A) To increase the number of products produced per hour
B) To minimize machine downtime through regular maintenance and employee involvement
C) To manage inventory levels and reduce stockouts
D) To eliminate waste by reducing material usage - What does the term “economies of scale” mean in production?
A) Reducing production costs by increasing production volume and spreading fixed costs over more units
B) The strategy of making each unit of production more expensive in order to enhance product quality
C) Increasing flexibility and customization while reducing production volume
D) Lowering production costs by reducing the number of suppliers used in the process - Which of the following is a key feature of “continuous production”?
A) Large batches of a product are produced in a batch processing system
B) Products are made continuously with little to no interruptions in the production process
C) Production processes are halted periodically for maintenance and adjustments
D) Products are produced in small, customized quantities based on customer orders - Which of the following is an example of “service blueprinting” in service operations management?
A) Creating a visual map of the service process that outlines customer interactions and internal operations
B) Designing a product prototype before moving to mass production
C) Planning inventory levels for a product based on sales forecasts
D) Identifying opportunities for automation in service delivery - What does “demand forecasting” help a business determine?
A) The optimal number of employees required for production
B) The best price point for a product based on customer preferences
C) The quantity of goods needed to meet customer demand at a future date
D) The level of customer satisfaction with existing products - What does “process reengineering” aim to achieve in operations management?
A) Standardizing processes to minimize customization
B) Eliminating non-value-added activities to improve efficiency and reduce costs
C) Increasing inventory levels to meet unpredictable demand
D) Outsourcing production activities to reduce labor costs - What does “cycle time” refer to in production management?
A) The time it takes to complete the entire product life cycle
B) The time taken to produce a product from start to finish
C) The time required to design a new product
D) The period between when a customer places an order and when it is delivered - What is “lean production” primarily focused on?
A) Increasing production volume to achieve economies of scale
B) Minimizing waste, reducing costs, and improving quality in the production process
C) Customizing products for each individual customer
D) Maximizing product variety and flexibility in manufacturing - Which of the following is a key characteristic of “mass production”?
A) The production of large quantities of standardized products using automated equipment
B) The use of highly skilled labor to produce custom-made products
C) The focus on flexibility and customization for small production runs
D) The use of low-tech equipment and simple assembly processes - What does the “Gantt chart” primarily help with in operations management?
A) Calculating the cost of production
B) Scheduling and visualizing the timing of production tasks
C) Managing the inventory of raw materials
D) Tracking employee performance and productivity - In “process strategy,” what is the main consideration when choosing a process type?
A) The desired level of product customization and production volume
B) The number of suppliers to use for sourcing materials
C) The technological advancements needed for automation
D) The cost of raw materials required for production - Which of the following is the primary focus of “service operations management”?
A) Reducing production costs through automation
B) Optimizing the production of tangible goods
C) Managing the delivery of services to customers and ensuring high service quality
D) Managing inventory levels for physical products - What is the main objective of “capacity utilization”?
A) To reduce the cost of raw materials used in production
B) To increase the volume of production without exceeding the facility’s capacity
C) To ensure that machines are operating at full capacity regardless of demand
D) To determine the optimal number of employees required to meet demand - What does “production scheduling” primarily deal with in manufacturing?
A) Ordering raw materials in advance based on sales forecasts
B) Deciding the sequence of production tasks and allocating resources to ensure timely delivery
C) Determining the price of the product based on demand and supply
D) Analyzing customer feedback to make design changes to the product - What is the purpose of “batch processing” in manufacturing?
A) To produce large quantities of identical products without interruptions
B) To produce small, customized orders based on individual customer requests
C) To group similar products into batches and manufacture them together
D) To continuously produce products without halting the production process - Which of the following is the main goal of “total cost of ownership” (TCO) in supply chain management?
A) To determine the price of the product based on market conditions
B) To calculate the total costs of acquiring and maintaining products throughout their lifecycle
C) To reduce inventory levels by just-in-time ordering
D) To identify cost-cutting measures during the production process - What is a “just-in-time” (JIT) system designed to do?
A) Increase inventory levels to ensure materials are always available
B) Minimize waste by producing goods only when needed, in the necessary quantities
C) Maximize batch production and reduce cycle time
D) Increase production volume to reduce per-unit costs - Which of the following is an example of “vertical integration” in production?
A) A company purchases raw materials and controls every stage of production up to distribution
B) A company sells its products through third-party retailers
C) A company outsources part of its manufacturing process to reduce costs
D) A company diversifies its product line to target different customer segments - Which of the following is a key advantage of “modular production”?
A) It allows for the quick changeover between product types with minimal downtime
B) It increases production costs by using non-standardized components
C) It limits product variety by focusing on a few standardized designs
D) It requires a large number of specialized machines to produce each module - What is the main focus of “project-based production”?
A) Producing a large quantity of products in a continuous process
B) Managing unique, complex projects with specific goals and timelines
C) Manufacturing products in large batches based on forecasts
D) Standardizing processes for high-volume production - Which of the following is a key principle of “agile manufacturing”?
A) Using automated systems to achieve mass production of standardized products
B) Ensuring flexibility and responsiveness to customer needs and market changes
C) Focusing on reducing costs by outsourcing production processes
D) Maximizing production volume to achieve economies of scale - What is the purpose of “ABC analysis” in inventory management?
A) To calculate the average cost of inventory per unit
B) To categorize inventory items based on their importance and value
C) To determine the most efficient production schedule
D) To forecast future demand for products - What does “resource leveling” aim to achieve in production scheduling?
A) Ensuring that production is completed at the lowest possible cost
B) Balancing production workloads to avoid overburdening resources
C) Reducing lead time by speeding up the production process
D) Maximizing machine utilization during peak demand periods