Operations Management L5M9 paper 1

L5M9 paper 1 – Free

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Question 1 of 34

1 A manufacturing organisation may decide to use which of the following production methods in the manufacturing of goods?

1. Make to order
2. Volume production
3. Mass customisation
4. Mass production

2 and 4 1 and 2 3 and 4 2 and 3

2 In the manufacturing organisation, operations management function focuses on which of the following. Select any THREE that apply.

Production control Staff management Customer service Quality control Service selection Production planning

3 Dependability is one of the most important performance objectives to be considered when implementing an operations management strategy. Which of the following should be included to ensure Dependability in the operations strategy? Select TWO that apply.

All documentation provided should be relevant and accurate Procedures should be standardised and applied consistent Obtaining inputs at the lowest cost possible Ability to adapt to changes and trends and customer demand Ensuring minimum time between order receiving and fulfilment

4 Which of the following is a key difference between business process re-engineering (BPR) and Kaizen’s continuous improvement theory?

BPR is undertaken by employees and lower level management within the organisation while Kaizen requires the intervention of highly experienced consultant BPR is used for simpler process while Kaizen is implemented on complex processes BPR is undertaken on a project basis while Kaizen is a continuous and never-ending process The speed of change in BPR is slower to the incremental nature of change while with Kaizen the pace of change is faster

5 WTEFC is a manufacturing company involved in the production of wide range of products. Abel who is the company’s operations manager has decided to use continuous method of operations process. Is this a suitable decision?

Yes because continuous operations are highly effective when produced diverse products Yes because continuous operations focus on a mass customisation of wide range of products No because continuous operations are highly costly due to the need to focus on a wide range of products No because continuous operations are used for producing standardised products in high volumes

6 Which of the following two statements are correct about the ‘make-to-order’ production method?

1. Products are made based on customer specifications.
2. Goods are produced in large quantities in anticipation of future demand.
3. It is mostly used by tailors
4. Examples include production of canned foods, mobile phones and other electronics.

1 and 4 2 and 4 1 and 3 2 and 3

7 When Georgio spends time with the procurement team, what is he trying to understand about the ordering process?

Whether they use a Lean approach Whether they use an e-procurement process Whether they use a JIT system

8 In the service, organisation scheduling focuses on which of the following?

Forecasting demand to determine how much is needed Storing and managing of the inputs received from suppliers Ensuring employees are available when needed to handle variations in customer demand Allocation of resources to ensure timely production

9 Lincolnshire University has realised that the number of undergraduates enrolling for their programmes have increased in recent years. However, they are experiencing a shortage of lecture rooms due to a large number of students. They have decided to extend their school premises so that they can accommodate all the students who wish to study with them. ABC Limited, a construction company has been contracted by Lincolnshire University to undertake this extension project. The project managers of ABC Limited together with their operations managers work towards identifying all the tasks that need to be performed, the resources that will be required as well as the time frames by which the tasks have to be completed. Which of the following is an operations process that the two parties are focusing on?

Capacity management Safety measures Scheduling of work Quality control

10 Daniel, the operations manager is making a decision on how the equipment and staff will be arranged in their production facilities. He also has a decision to make regarding the type of stock they need the quantities and when they will need to reorder to avoid any operational disruptions. Daniel is said to be undertaking which of the following activities?

1. Facility location
2. Plant layout
3. Inventory management
4. Maintenance and replacement

1 and 3 2 and 4 1 and 2 2 and 3

11 WJHDG Appliances is a new formed company which specialises in the production of a wide range of electrical appliances. The top level management is looking is looking to implement a strategy that the company will be using in its operations. In their conclusion, they have decided that their strategy development will begin at the functional level rather than the corporate level. Which approach is the willing to adopt?

Top down strategy Tactical strategy Functional strategy Bottom up strategy

12 Inventory management is one of the most important operational activities that the manager has carefully make decisions on. Decisions on inventory management involve which of the following. Select THREE that may apply.

The type of stock to carry The quantities to use when filling up stock Avoid the breakdown of capital equipment Number of staff to permit in the production facility Keeping machinery in good working condition The time when to replenish the materials in the warehouse

13 Taking into consideration the maximum level of operation that a company will be able to undertake at a specific time is referred to as which of the following?

Capacity management Operations scheduling Plant layout Quality control

14 What other aspect would Georgio have to integrate into his TQM work?

Commitment Cash Culture

15 The following key performance objectives have to be taken into account when devising an operations management strategy. Select THREE that apply

Cost Place Time Flexibility Dependability Quantity

16 Which of the following are the benefits of using business process re-engineering in improving operations processes?

1. reduced proximity of the marketplace to the potential customers
2. reduction of waste and cost by eliminating inefficient processes
3. achievement of varying lead times to ensure customer satisfaction
4. improved productivity due to increased effectiveness and efficiency

1 and 4 2 and 3 2 and 4 1 and 3

17 What are the three aspects of the process that maps the entire production process?

Input, transformation, output Input, translation, output Input, transportation, output

18 What is the term used to describe the key departments that Georgio should engage with?

Stakeholder groups Management team Core functions

19 What is the name of the analysis that Georgio will conduct which involves four factors including customer perspective?

Stakeholder mapping Balanced scorecard Weighted analysis

20 At which stage is operation process of the organisation said to be contributing competitive advantage for the organisation?

Externally supportive Internally neutral Internally supportive Externally neutral

21 What type of team should Georgio look to create to get optimum buy-in?

Laissez-faire Single-sourced Cross-functional

22 The customer’s direct experience of the company’s processes relates to which ONE of the following dimensions?

Volume dimension Variation dimension Variety dimension Visibility dimension

23 How might Georgio conduct an analysis on the failures he uncovers?

Perform a STEEPLED Perform an FMEA Perform a KPI

24 What piece of work is Georgio planning to produce to map potential causes of quality problems?

A cause-and-effect diagram A Kraljic matrix A sandcone model of improvement

25 Why should Georgio ensure that the objectives are aligned to the overall vision?

For reducing prices For consistency of strategy For continuity of supply

26 What is the name of the process that includes three key aspects mapping the entire production process?

Objectives process Organisational process Operations process

27 An effective balanced scorecard model looks at which of the following to measure the performance of a company?

1. Financial perspective
2. Shareholder perspective
3. Performance of competitors
4. Business process perspective

1 and 3 1 and 4 2 and 3 2 and 4

28 Which of the following is true when using intermittent operations?

1. It focuses on a high variety of products
2. Use of forecasting is essential
3. Labour intensive
4. High extent of standardisation

2 and 4 1 and 2 1 and 4 1 and 3

29 Clinton has recently been appointed as QUIBCS Limited operations manager. When formulating a company’s strategy he realised that his company may not always be the best in every aspect of the operations and that there is other high performing companies in and outside their industries that he need to compare their activities with. What process is Clinton willing to implement into their strategy?

Effective comparison Benchmarking Continuous improvement Business process re-engineering

30 What is production control?

Scheduling and monitoring of the production activities. Deciding on what products to be produced by the organisation. Ensuring goods are manufactured based on the predetermined specifications. The process of inspecting goods against quality standards.

31 Which of the following decisions undertaken by operations managers helps ensuring high level of efficiency in the production operations?

Quality control Facility location Production control Facility layout

32 A balanced scorecard approach is an effective method for the company to use in measuring their performance. Is this statement TRUE?

No, because a balanced scorecard has never been a model for measuring performance. Yes, because it only indicates what the customer says about the performance of the company No, because the financial performance is the only important measure to indicate a company’s performance Yes, because it gives a true and comprehensive picture about the performance of the company as a whole.

33 In the SERVQUAL model, which of the following are the gaps that service providers need to take identify, measure and manage in order to minimise their occurrence.

Delivery gap, service gap, knowledge gap, quality gap, standards gap Service gap, quality gap, knowledge gap, standards gap and relationship gap Satisfaction gap, quality gap, standards gap, communications gap and service gap Communications gap, knowledge gap, standards gap, satisfaction gap and delivery gap

34 Implementing lean methodologies in operations in a company’s strategy always provide potential benefits.

False because, lean methodologies only focus on achieving higher profits for the organisation without taking into account how they are achieved True, because will help ensure that a high variety of products are introduced by the company False because lean methodologies are expensive and requires technical expertise True, because any inefficiencies will be eliminated from processes hence reduction in costs

L5M9 paper 1 – Free

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