Paper 1 & 2

1. 11. Which of the following is the most correct definition of operations management?
   

   1. AAn area of management concerned with the control of production
   2. BThe activity of managing the resources that create and deliver services and products
   3. CThe management of inputs and outputs involved in the provision of services
   4. DRedesigning business operations involved in the production of goods and services
2. 22. In regard to the 4 V profile, which of the following is most likely to be true in relation to a fast food restaurant?
   
   b.
   c.
   

   1. AVolume will be low to medium in order to keep unit costs down
   2. BVisibility is high requiring all staff to be trained in managing customers
   3. CVariation is high as the restaurant caters to seasonal changes in demand
   4. DVariety tends to be reduced in order to standardize processes
3. 33. Which of the following is true regarding core and support functions?
   

   1. AIt is important to maintain strict boundaries between support and core functions
   2. BThere is not always a clear division between core and support functions
   3. CHuman resources and accounting are core functions supported by operations
   4. DProduct/service development is the core function with other areas providing support
4. 4The process hierarchy describes three levels of detail when considering specific operations. Which of the following is the highest level of the process hierarchy?
   

   1. AThe supply network
   2. BThe operation
   3. CThe process flow
   4. DNone of the above
5. 55. Which of the following statements is correct regarding performance at the operational level?
   

   1. AOperations decisions should reflect the interests of stakeholder groups
   2. BPerformance measures should apply to processes as well as products and services
   3. COperations ‘performance objectives’ should support strategic level objectives
   4. DAll of the above
6. 6Which of the following sets contains both transformed and transforming resources?
   
   

   1. APatients and surgeons
   2. BTest equipment and technical staff
   3. CProduction personnel and product designs
   4. DRaw materials and waste products
7. 7The balanced scorecard approach is different to traditional performance measurement systems in that it includes…
   

   1. AA broader range of financial measures with which to evaluate operations
   2. BNo operational measures relating to financial performance
   3. CMeasures that relate exclusively to the interests of external stakeholders
   4. DOperational measures such as customer perspectives in addition to financial measures
8. 8When developing operations strategy which of the following is correct?
   

   1. ATop-down and bottom-up perspectives provides the best operations strategies
   2. BA market requirements perspective provides the best operations strategy
   3. CAn operations resources perspective should be coupled with a market perspective to provide the best operations strategy
   4. DAll four perspectives mentioned above are important when developing strategy
9. 9Which of the following best describes the process of operations strategy?
   

   1. AA one-off process conducted by senior management to guide the operations of the business
   2. BAn iterative process whereby strategy is formulated, implemented, monitored and controlled
   3. CThe engagement of trained consultants aimed at developing an optimal operations strategy
   4. DA process that focusses on past performance and external trends in determining an operations strategy
10. 10When developing scenarios to assist with strategic planning which of the following is correct?
    

    1. AA single, most likely, scenario needs to be developed as a prediction of the future
    2. BA trained consultant should always be engaged to apply both qualitative and quantitative techniques
    3. CSenior decision makers are the customers of the process and should not be engaged in the development of scenarios
    4. DA range of plausible scenarios should be developed to assist strategy development

11. 11When using a framework such as STEEPV to develop scenarios, which of the following is true?
    
    

    1. AA strict interpretation of each of the variables is required
    2. BEach variable should be interpreted appropriately for the business being considered
    3. CAll of the variables should be used when constructing the scenario typology
    4. DYou should always use a framework and not attempt to brainstorm relevant variables
12. 12When conducting planning activities, which of the following statements is correct regarding stakeholders?
    

    1. AOnly stakeholders with a financial investment in the company should be consulted in strategic planning
    2. BExternal stakeholders should only be engaged as a last resort if the expertise does not exist in-house
    3. CA broad range of stakeholder views should be sought to enhance the quality of the planning process
    4. DStakeholder views should only be sought if it is expected that there will be a major change in the business environment
13. 13Which of the following best describes the relationship between operational level performance objectives and the triple bottom line?
    

    1. AThere is no link between the triple bottom line and operational performance
    2. BOperational level performance impacts only on profitability at the societal level
    3. COperational level performance impact risk and learning at societal level
    4. DOperational level performance impacts strategic objectives that influence the triple bottom line
14. 14Which of the following statements is untrue regarding polar representations of performance objectives?
    

    1. AThe polar representation requires a numerical scale for each performance objective
    2. BThe polar representation can be used to compare the performance of two options
    3. CThe polar representation should always use the five operational performance objectives
    4. DThe polar representation can be used to compare current and desired performance
15. 15When developing a process flow model of a system, which of the following is true?
    
    

    1. AA single process model should be developed to show all aspects of the operation
    2. BA set of process models can be developed to show different levels of detail
    3. CA process flow model needs a high level of detail in order to be correct and useful
    4. DProcess flow models are only useful for the redesign of existing processes
16. 16Given the throughput time (TH), cycle time (CT) and work-in-progress (WIP), which of the following is correct?
    
    

    1. ATH = WIP / CT
    2. BWIP = TH x CT
    3. CCT = WIP / TH
    4. DTH = CT x WIP
17. 17A fast food service counter is analysed and on average serves 96 customers every hour. Based on this information what is the cycle time (CT) for the operation?
    

    1. A1.6 minutes per customer
    2. B1.6 customers every minute
    3. C0.625 minutes per customer
    4. D0.625 customers per minute
18. 18In the above example, it is also observed that the average queue length is 4 people. What is the average time that a customer will wait?
    a.
    b.
    c.
    d.
    

    1. A37.5 seconds
    2. B2.5 minutes
    3. C6.4 minutes
    4. D8.2 minutes
19. 1919. Which of the following is not a reason to consider keeping an activity in-house?
    
    

    1. AThe activity is of strategic importance
    2. BThe activity requires specialized knowledge the company possesses
    3. CThe activity is unlikely to provide significant performance improvement
    4. DThe activity is being performed at a level superior to other providers
20. 2020. Little’s law is being used to calculate the required number of staff for an operation. The work content to produce a single ‘item’ has been measured as 45 minutes, and the company requires 8 ‘items’ completed every hour. How many staff are required?
    

    1. A5
    2. B6
    3. C7
    4. D8
21. 2121. Volume and variety are key parameters that can often be used to guide decision on factors of operations such as layout. An operation has high volume and low variety, what basic layout design would most likely be appropriate?
    

    1. AFunctional layout
    2. BFixed position layout
    3. CLine Layout
    4. DCell Layout
22. 2222. When considering layout for an operation, which of the following is true?
    

    1. AThe four basic layout types relate only to product manufacturing and not services
    2. BFixed position is useful in supermarkets where similar products are grouped together
    3. CA cell layout has all the required transforming resources grouped together, it can exist within a functional or line layout
    4. DIn a line layout the recipient of the processing is stationary and transforming resources move as required
23. 23An office worker processes 16 applications every hour for dog licences. Based on this information what is the cycle time (CT) for the processing of each application?
    

    1. A3.75 minutes per application
    2. B3.75 customers per minute
    3. C0.0625 customers per minute
    4. D0.0625 minutes per application
24. 24The counter at a local butcher serves an average of 18 customers every hour. If the average queue length is 3 customers, what is the throughput time (i.e. the average wait time)?
    

    1. A2.5 minutes
    2. B6.0 minutes
    3. C8.0 minutes
    4. D10.0 minutes
25. 25The person serving drinks at a bar takes 24 seconds to serve each customer and the average waiting time for people in the queue is 4 minutes. What is the average length of the queue?
    

    1. A2 people
    2. B4 people
    3. C8 people
    4. D10 people
26. 26The work content to produce a single ‘item’ has been measured at 12 minutes, and the company requires 30 ‘items’ completed every hour. How many staff are required?
    

    1. A4
    2. B5
    3. C6
    4. D8
27. 27Which of the following is a legitimate reason to consider outsourcing an activity?
    
    

    1. AThe activity is of significant strategic importance to the company’s future
    2. BThe activity requires specialized knowledge the company currently possesses
    3. CThe activity is unlikely to provide significant performance improvement
    4. DThe activity is currently being performed at a level superior to other providers
28. 28When considering layout for an operation, which of the following is true?
    

    1. AA fixed position layout is useful in a supermarket where similar products are grouped together
    2. BA line layout is most useful in a high-volume low-variety operation
    3. CA cell layout relates only to provision of manufacturing and is not relevant for services
    4. DA functional layout is only useful in high-volume low-variety operations
29. 29In regard to workplace design, which of the following is correct?
    

    1. AThe culture of an organisation should not influence workplace design
    2. BStaff comfort is an important factor that impacts performance
    3. CErgonomics relates to selecting the right people to fit the job
    4. DThe only way to improve performance is to adopt a ‘google’ office design
30. 30Servicescape is a term used to describe the look and feel of an operation from a customer’s perspective. Which of the following is correct regarding servicescapes?
    

    1. ACustomer responses can be categorised as either emotional or physiological
    2. BServicescapes are particularly important in high visibility operations
    3. CThere is no evidence supporting the impact of servicescapes on performance
    4. DAll factors that affect servicescape can be controlled by an operations manager
31. 31When introducing new technology to an operation, which of the following is true?
    

    1. AIntroducing new technology will always require a complete redesign of an operation
    2. BNew technology will behave as planned if appropriate preparation has occurred
    3. CWhen variety is low and volume is high, automated large scale, relatively inflexible technology will be useful
    4. DAs long as performance is increased, customer acceptance of new technology will be high
32. 32Reducing work related stress is generally seen as a good thing to do (i.e. ethical behaviour). The benefits of a low stress environment include…
    

    1. AIntroducing changes such as new technology is easier in a low stress environment
    2. BAttendance levels will decrease as employees lack the necessary drive to be fully effective
    3. CEmployee disputes occur more often and are less easily resolved
    4. DLow stress environments have been shown to decreases the quality of working life
33. 33Employee feedback, assessment and development schemes are important as they provide which of the following?
    

    1. AA mechanism for employees to track the outputs of senior managers
    2. BA process for establishing clear expectations and responsibilities
    3. CA set of standard working conditions for all staff
    4. DAn automated mechanism for tracking performance
34. 34When considering planning and control, the volume and variety parameters can be used to distinguish between different operations. Which of the following is correct?
    

    1. AA high volume, low variety operation will have a long planning horizon
    2. BA low volume, high variety operation requires aggregated control decisions
    3. CA low volume, high variety operation will have a long planning horizon
    4. DVolume and variety have no impact on planning and control considerations
35. 35Loading can be defined as finite or infinite. Which of the following statements relates correctly to finite loading?
    

    1. AWork above a set limit is managed to achieve the greatest output
    2. BWork above a set limit is not done or is done late
    3. CWork is accepted and allocated regardless of set limits
    4. DIn practice, there is no difference between finite and infinite loading
36. 36When looking at capacity and forecast demand, strategies can be described as capacity leading or capacity lagging. Which of the following is a disadvantage of a capacity lagging strategy?
    
    

    1. ACosts of inventory will be minimised
    2. BCapital spending on capacity will be delayed
    3. CThere is a risk of over-capacity if demand is lower than forecast
    4. DThe operation is not able to exploit short term increases in demand
37. 37Ergonomics covers which of the following concepts in job design;
    

    1. AHow many people are required and for how long to complete a task
    2. BWhat tasks are allocated to each person within a process
    3. CConsidering the environment and its impact on the efficiency of staff
    4. DAll of the above
38. 38Which of the following is a consideration in supply chain management?
    

    1. AThe effect of a small disturbance at one end of the supply chain will diminish as it works its way downstream
    2. BA difficulty in supply chain management is the uncertainty in demand
    3. CSuppliers have no responsibility for developing customer understanding of how supply is managed
    4. DAll of the above

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Business/Economics Quiz on Paper 1 & 2, created by Rosalyn Smith on 25/06/2019.

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Rosalyn Smith

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