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SECOND SEMESTER EXAMINATION : MAY 2013

MFC

OPERATIONS MANAGEMENT (AMF 202)

Time: 2 Hrs.

Max Marks. 70

Note:
1.
2.

All questions are compulsory. Each question carries 1 mark.

Select appropriate answer from option A, B, C and D given against each
question and mark same on the OMR Sheet.

Q1.

Which of the following has been the main driver to the globalization of business?
(a). The higher standards of living in the U.S. and Europe
(b). Technology
(c). The NAFTA trade agreement
(d). The increasing ethnic diversity within countries

Q2.

Operations management is applicable

(a). mostly to the service sector
(b). to services exclusively
(c). mostly to the manufacturing sector
(d). to manufacturing and service sectors

Q3.

Walter Shewhart is listed among the important people of operations management

because of his contributions to
(a). assembly line production
(b). measuring the productivity in the service sector
(c). Just-in-time inventory methods
(d). statistical quality control

Q4.

Henry Ford is noted for his contributions to

(a). standardization of parts
(b). statistical quality control
(c). assembly line operations
(d). scientific management

Q5.

Taylor and Deming would have both agreed that

(a). Whirlpool's global strategy is a good one
(b). Eli Whitney was an important contributor to statistical theory
(c). management must do more to improve the work environment and its processes so
that quality can be improved
(d). productivity is more important than quality

Q6.

Who among the following is associated with contributions to quality control in

operations management?
(a). Charles Babbage
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(b). Henry Ford

(c). Frank Gilbreth
(d). W. Edwards Deming
Q7.

The field of operations management is shaped by advances in which of the following

fields?
(a). chemistry and physics
(b). industrial engineering and management science
(c). biology and anatomy
(d). all of the above

Q8.

The five elements in the management process are

(a). plan, direct, update, lead, and supervise
(b). accounting/finance, marketing, operations, and management
(c). organize, plan, control, staff, and manage
(d). plan, lead, organize, manage, and control

Q9.

The responsibilities of the operations manager include

(a). planning, organizing, staffing, procuring, and reviewing
(b). forecasting, designing, planning, organizing, and controlling
(c). forecasting, designing, operating, procuring, and reviewing
(d). planning, organizing, staffing, leading, and controlling

Q10.

Which of the following is not an element of the management process?

(a). pricing
(b). staffing
(c). planning
(d). controlling

Q11.

An operations manager is not likely to be involved in

(a). the design of products and services to satisfy customers' wants and needs
(b). the quality of products and services to satisfy customers' wants and needs
(c). the identification of customers' wants and needs
(d). work scheduling to meet the due dates promised to customers

Q12.

All of the following decisions fall within the scope of operations management except for
(a). financial analysis
(b). design of products and processes
(c). location of facilities
(d). quality management

Q13.

Which of the following are the primary functions of all organizations?

(a). operations, marketing, and human resources
(b). marketing, human resources, and finance/accounting
(c). sales, quality control, and operations
(d). marketing, operations, and finance/accounting

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Q14.

Budgeting, paying the bills, and collection of funds are activities associated with the
(a). management function
(b). control function
(c). finance/accounting function
(d). production/operations function

Q15.

Which of the following would not be an operations function in a fast-food restaurant?

(a). making hamburgers and fries
(b). advertising and promotion
(c). maintaining equipment
(d). designing the layout of the facility

Q16.

The three major functions of business organizations

(a). are mutually exclusive
(b). exist independently of each other
(c). overlap
(d). function independently of each other

Q17.

The marketing function's main concern is with

(a). producing goods or providing services
(b). procuring materials, supplies, and equipment
(c). building and maintaining a positive image
(d). generating the demand for the organization's products or services

Q18.

Current trends in operations management include all of the following except

(a). Just-in-time performance
(b). rapid product development
(c). mass customization
(d). mass production

Q19.

The service industry makes up approximately what percentage of all jobs in the United
States?
(a). 20%
(b). 40%
(c). 66%
(d). 74%

Q20.

Typical differences between goods and services do not include

(a). cost per unit
(b). ability to inventory items
(c). timing of production and consumption
(d). customer interaction

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Q21.

Gibson Valves produces cast bronze valves on an assembly line, currently producing
1600 valves each 8-hour shift. If the production is increased to 2400 valves each 8-hour
shift, the productivity will increase by
(a). 10%
(b). 20%
(c). 25%
(d). 50%

Q22.

The Dulac Box plant produces 500 cypress packing boxes in two 10-hour shifts. What is
the productivity of
the plant?
(a). 25 boxes/hr
(b). 50 boxes/hr
(c). 5000 boxes/hr
(d). none of the above

Q23.

Three commonly used productivity variables are

(a). quality, external elements, and precise units of measure
(b). labor, capital, and management
(c). technology, raw materials, and labor
(d). education, diet, and social overhead

Q24.

The service sector has lower productivity improvements than the manufacturing sector
because
(a). the service sector uses less skilled labor than manufacturing
(b). the quality of output is lower in services than manufacturing
(c). services usually are labor intensive
(d). service sector productivity is hard to measure

Q25.

Productivity tends to be more difficult to improve in the service sector because the work
is
(a). often difficult to automate
(b). typically labor intensive
(c). frequently individually processed
(d). all of the above

Q26.

Operations Management is a ___________________ process.

(a). translation
(b). transformation
(c). transaction
(d). transition

Q27.

Which of these Managers would be least likely to be considered in an operations

management role within an organization?
(a). Production Manager
(b). Reservations Manager

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(c). Financial Risk Manager

(d). Quality Manager
Q28.

There are 5 basic organizational forms, simple, functional, divisional, conglomerate and
_______________?
(a). hybrid
(b). complex
(c). corporate
(d). hierarchical

Q29.

Organizing budget hotels within a chain by geographical location is an example of which

type of organizational form?
(a). Conglomerate
(b). Hybrid
(c). Simple
(d). Divisional

Q30.

Which of these would an operations manager not be responsible for?

(a). Safety and maintenance
(b). Sales and marketing
(c). Selecting suppliers
(d). Recruiting employees

Q31.

Operations can be diagnosed by volume, variety, variation and ________________?

(a). validity
(b). variability
(c). value
(d). variance

Q32.

The size of the product range or number of services offered is called _____________?
(a). variability
(b). validity
(c). variety
(d). variation

Q33.

The extent to which a product or service may be customized is called _____________?

(a). variability
(b). validity
(c). variety
(d). variation

Q34.

Services differ from manufactured products in four ways. Intangibility, Inseparability,

Perishability and _______________?
(a). homogeneity
(b). heterogeneity
(c). intractability

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(d). invisibility
Q35.

The Servuction model recognizes that operations can process customers through their
infrastructure or through their ___________?
(a). performance
(b). procedures
(c). staff
(d). systems

Q36.

Inventory is ______________________?
(a). A raw material item used in an operation.
(b). An item stored for later use in an operation.
(c). An item in transit for later use in an operation.
(d). Any of the above.

Q37.

Products which are completed awaiting dispatch to a customer are called

_______________ inventory.
(a). Pipeline
(b). Cycle
(c). Finished Goods
(d). Work in Process

Q38.

Partially processed or finished goods which are sent between factories over large
distances is called ______________ inventory.
(a). Pipeline
(b). Cycle
(c). Finished Goods
(d). Work in Process

Q39.

Batch production such as baked goods produces _______________ inventory.

(a). Pipeline
(b). Cycle
(c). Finished Goods
(d). Work in Process

Q40.

Semi-finished stock is also known as ________________ inventory.

(a). Pipeline
(b). Cycle
(c). Work in Process
(d). Anticipatory

Q41.

Which of these reasons to keep inventory can lead to improved quality?

(a). It allows processes to flow more smoothly.
(b). It makes deliveries more reliable.
(c). It helps to deal with short term demands.
(d). It enables the best material to be sorted prior to production.

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Q42.

Which of these reasons to keep inventory will improve flexibility?

(a). It allows processes to flow more smoothly.
(b). It makes deliveries more reliable.
(c). It helps to deal with short term demands.
(d). It enables the best material to be sorted prior to production.

Q43.

What do the letters EOQ stand for?

(a). Estimated Order Quantity
(b). Economic Order Quantity
(c). Estimated Order Quality
(d). Economic Order Quality

Q44.

The EOQ of an item is calculated using the annual demand together with the
___________ cost and the __________ cost.
(a). Direct and Variable costs
(b). Indirect and Holding costs
(c). Direct and Ordering costs
(d). Ordering and Holding costs

Q45.

Goods in transit can be tracked using RFID technology. RFID stands for?
(a). Remote File Identification
(b). Resource Frequency Identification
(c). Radio Frequency Identification
(d). Radar Frequency Identification

Q46.

The interaction between the customer and the service provider is often referred to as
____________________?
(a). The service operation
(b). The service encounter
(c). The Servicescape
(d). The back office operation

Q47.

Which of these is not one of the four differences between customer processing operations
and materials processing operations?
(a). Perishability
(b). Simultaneity
(c). Homogeneity
(d). Intangibility

Q48.

Which of these is not one of the seven characteristics of a service encounter identified by
Czepiel et al (1985)?
(a). Specific role for the employee only
(b). Mostly task oriented
(c). Narrow in scope
(d). Follow a pre-determined set of rules

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Q49.

The organization of customers for processing through a series of service encounters is

called a ____________________?
(a). Payment system
(b). Planning system
(c). Processing system
(d). Queuing system

Q50.

Which of the following queuing systems appears the most fair to customers?
(a). First in First Out (FIFO)
(b). Serve in Random Order (SIRO)
(c). Last in First Out (LIFO)
(d). Shortest Processed First (SPF)

Q51.

Which of the following queuing systems appears the least fair to customers?
(a). First in First Out (FIFO)
(b). Serve in Random Order (SIRO)
(c). Last in First Out (LIFO)
(d). Shortest Processed First (SPF)

Q52.

Joining a queue and then almost immediately leaving the customer thinks it will take too
long to disperse is called __________________?
(a). Rejecting
(b). Reneging
(c). Balking
(d). Refusing

Q53.

Joining a queue and then leaving after some time before being served is called
__________________?
(a). Rejecting
(b). Reneging
(c). Balking
(d). Refusing

Q54.

Which of the following is one of the usual responses in the psychology of waiting lines
put forward by Maister (1985)?
(a). Unoccupied waiting time feels shorter than occupied time
(b). Anxiety makes waiting times feel shorter
(c). Unexplained waits seem longer than explained waits
(d). Solo waiting feels shorter than group waiting

Q55.

Which of these operations are customers often happy to queue for?

(a). Bank ATM
(b). Supermarket checkout
(c). Restaurant
(d). Airport check-in

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Q56.

A strategy is a set of plans designed for ___________ competitive advantage.

(a). Short-term
(b). Medium-term
(c). Immediate
(d). Long-term

Q57.

An operations strategy is created directly from the _________ strategy

(a). Corporate strategy
(b). Marketing strategy
(c). Business strategy
(d). Human resource strategy

Q58.

Competitive advantage is a term most associated with which author?

(a). Terry Hill
(b). Michael Dell
(c). Robert Lowson
(d). Michael Porter

Q59.

Firms try to achieve competitive advantage by competing on _____________?

(a). Cost only
(b). Order winners
(c). Quality only
(d). Order qualifiers

Q60.

Two different viewpoints on operations strategy are the market-driven view and the
_____________ based view
(a). Operations
(b). Finance
(c). Resource
(d). Capability

Q61.

A system designed for competing effectively in a specific marketplace is called a

______________________?
(a). Strategic model
(b). Business model
(c). Business plan
(d). Strategic plan

Q62.

In the business model outlined by Spring and Mason (2010), Network Architecture
consists of markets, relationships, capabilities and ___________?
(a). Infrastructure
(b). Artefacts
(c). Transactions
(d). Products

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Q63.

In the business model outlined by Spring and Mason (2010), Market Offering consists of
activity, access, value and _____________?
(a). Infrastructure
(b). Artefact
(c). Transaction
(d). Product

Q64.

In the business model outlined by Spring and Mason (2010), Technology consists of core
technology, process, product and ___________________?
(a). Infrastructure
(b). Artefact
(c). Transaction
(d). Capability

Q65.

The operations strategy which refers to service firms distributing their products in many
different forms and places is called ____________?
(a). Servitization
(b). Globalization
(c). Ubiquitization
(d). Mass customization

Q66.

In the craft era there were 3 types of operations process; job shop, batch process and
_____________?
(a). Mass process
(b). Assembly line
(c). Simple project
(d). Complex project

Q67.

In the mass production era there were 4 types of operations process; complex project,
batch production, assembly line and ____________?
(a). Job shop
(b). Simple project
(c). Mass process
(d). Continuous flow process

Q68.

According to Lowson (2003) the two viewpoints of operations strategy are the market
driven view and the ______________?
(a). Operations based view
(b). Resource based view
(c). Quality driven view
(d). Supply chain view

Q69.

In a materials processing operation, which of the following process type is associated

with the highest volume and lowest variety?
(a). Job shop
(b). Batch process

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(c). Mass process

(d). Continuous process
Q70.

In a materials processing operation, which process is associated with the highest variety?
(a). Project
(b). Job shop
(c). Batch process
(d). Mass production

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