Production and Operations Management Exam

Sample Questions and Answers

• 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
  Answer: B
• 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
  Answer: C
• 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
  Answer: C
• 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
  Answer: C
• 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
  Answer: C
• 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
  Answer: D
• 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
  Answer: D
• 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
  Answer: C
• 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
  Answer: C
• Which of the following is an example of a qualitative forecasting method?
  A) Moving averages
  B) Delphi method
  C) Exponential smoothing
  D) Linear regression
  Answer: B
• 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
  Answer: B
• 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.
  Answer: B
• 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
  Answer: B
• 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
  Answer: A
• 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
  Answer: B
• 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
  Answer: B
• 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
  Answer: B
• 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
  Answer: C
• 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
  Answer: C
• 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
  Answer: B
• 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
  Answer: B
• 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
  Answer: A
• 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
  Answer: B
• 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
  Answer: C
• 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
  Answer: A
• 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
  Answer: A
• 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
  Answer: A
• 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.
  Answer: C
• 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
  Answer: C
• 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
  Answer: B

• 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
  Answer: B
• 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
  Answer: D
• 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
  Answer: A
• 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
  Answer: B
• 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
  Answer: C
• 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
  Answer: C
• 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
  Answer: C