C215 Operations Management Practice Questions - Set 5 - Part 3

Test your knowledge of Operations Management concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: What does 'capacity utilization' measure?

a) The total output produced in a specific timeframe

b) The percentage of capacity being used compared to total available capacity

c) The efficiency of labor in production

d) The amount of inventory held at any time

Question 42: Which of the following describes 'cost of quality'?

a) The total production costs incurred

b) Costs associated with ensuring products meet quality standards

c) Financial performance of a product

d) The expense of marketing a quality product

Question 43: What does the term 'work-in-process' (WIP) refer to in manufacturing?

a) Finished goods ready for sale

b) Items that are currently being manufactured but are not yet complete

c) Raw materials awaiting processing

d) Inventory that has been sold but not yet delivered

Question 44: Which of the following is a key principle of 'lean systems'?

a) Maximizing production volume without regard for waste

b) Reducing waste while improving overall efficiency

c) Focusing solely on cost-cutting measures

d) Increasing inventory levels to meet demand

Question 45: Which of the following is an example of 'customer relationship management' (CRM)?

a) A software solution to track sales performance

b) A system for collecting and analyzing customer data

c) A tool for managing inventory levels

d) A method for assessing employee satisfaction

Question 46: What does the term 'speculative inventory' refer to?

a) Inventory held to meet immediate customer demand

b) Stock kept to protect against future events or uncertainties

c) Finished goods ready for sale

d) Raw materials stored for production

Question 47: What is the significance of 'process capability index'?

a) It measures how well a process meets specifications

b) It evaluates the overall efficiency of production

c) It focuses on reducing production costs

d) It determines the time taken for production completion

Question 48: What is the primary goal of 'total quality management' (TQM)?

a) Enhancing employee training

b) Making quality a responsibility of everyone in the organization

c) Improving financial performance

d) Reducing production costs

Question 49: Which of the following describes a 'decision tree'?

a) A tool for assessing supplier performance

b) A visual representation of decisions and their potential consequences

c) A method for evaluating production efficiency

d) A strategy for tracking inventory levels

Question 50: What does 'job rotation' involve in operations management?

a) Assigning employees to the same task for extended periods

b) Shifting employees to different jobs to increase their understanding of the total process

c) Focusing on a single area of expertise

d) Reducing employee engagement in their roles

Go back Home

Struggling With Exams?

Less Time Studying, More Time Living – Finish Your Degree Faster! Pay-After-you-Pass

Get Exam Support