Which sequence describes operations as a transformation system?
A Customers, profits, taxes
B Plans, budgets, audits
C Prices, sales, dividends
D Inputs, process, outputs
Answer: D. Inputs, process, outputs Operations transform inputs such as materials, labor, and capital through a process into goods or services.
What do operations managers primarily coordinate?
A Tax returns and audits
B Resources and work processes
C Investor votes and dividends
D Brand slogans and campaigns
Answer: B. Resources and work processes Operations managers coordinate people, materials, equipment, and processes to deliver products or services.
Which decision belongs in production planning?
A Where and how work happens
B Which tax rate applies
C Which logo customers prefer
D How dividends are distributed
Answer: A. Where and how work happens Production planning determines how and where work will be performed and what resources are needed.
What is the main purpose of quality control?
A Increase every product feature
B Eliminate customer feedback
C Meet defined quality standards
D Maximize inventory levels
Answer: C. Meet defined quality standards Quality control compares outputs with defined standards and supports corrective action.
Which measure compares actual output with design capacity?
A Market penetration
B Labor turnover
C Inventory turnover
D Capacity utilization
Answer: D. Capacity utilization Capacity utilization expresses the share of design capacity that is actually used.
What usually limits a process’s maximum throughput?
A Value stream
B Bottleneck
C Work instruction
D Safety stock
Answer: B. Bottleneck A bottleneck is the constrained step that limits the output rate of the overall process.
For a high-volume standardized product, which layout often fits?
A Product layout
B Fixed-position layout
C Process layout
D Office layout
Answer: A. Product layout Product layouts arrange workstations in the sequence needed for a standardized, high-volume flow.
Which factor belongs in a facility-location decision?
A Brand color palette
B Quarterly dividend policy
C Access to suppliers and customers
D Employee appraisal frequency
Answer: C. Access to suppliers and customers Location decisions consider access to inputs, labor, customers, and transportation.
When is a process layout often useful?
A Continuous chemical flow
B One repeated assembly line
C Single standardized service
D Low-volume varied work
Answer: D. Low-volume varied work Process layouts group similar resources and suit varied work with lower volumes.
What can distinguish many services from manufactured goods?
A Services always need warehouses
B Production and use may coincide
C Goods cannot be inspected
D Services require no labor
Answer: B. Production and use may coincide Many services are produced and consumed at the same time, making customer contact part of operations.
Why do operations teams use forecasts?
A Estimate future demand
B Measure past quality only
C Choose a company name
D Set employee pension terms
Answer: A. Estimate future demand Demand forecasts help operations plan capacity, materials, staffing, and schedules.
What does aggregate planning balance?
A Audits, hiring, promotions
B Branding, pricing, advertising
C Workforce, output, inventory
D Taxes, dividends, borrowing
Answer: C. Workforce, output, inventory Aggregate planning balances expected demand with production rates, workforce levels, and inventory over a medium-term horizon.
What does production routing specify?
A Customer payment terms
B Employee benefit levels
C Supplier ownership
D Sequence of work steps
Answer: D. Sequence of work steps Routing identifies the path or sequence through which work moves.
Which tool displays project tasks against a timeline?
A Control chart
B Gantt chart
C Pareto table
D Fishbone diagram
Answer: B. Gantt chart A Gantt chart displays activities on a timeline and can show planned duration and progress.
Which method identifies the longest dependent task path?
A Critical path method
B Statistical process control
C ABC inventory analysis
D Value stream mapping
Answer: A. Critical path method The critical path method identifies the longest chain of dependent activities that determines the earliest project finish.
Why track float in a project schedule?
A Increase task costs
B Set supplier prices
C Find delay without finish impact
D Measure product defects
Answer: C. Find delay without finish impact Float indicates how long an activity can be delayed without delaying a dependent milestone or project completion.
How does PERT help with uncertain activity times?
A Sets fixed labor rates
B Counts customer complaints
C Eliminates task dependencies
D Uses optimistic, likely, pessimistic estimates
Answer: D. Uses optimistic, likely, pessimistic estimates PERT uses three time estimates to account for uncertainty when estimating project activity duration.
Why do firms hold inventory?
A Avoid forecasting
B Meet demand between replenishments
C Replace quality standards
D Increase process steps
Answer: B. Meet demand between replenishments Inventory can buffer the time between replenishment and customer or production demand.
What should a reorder point account for?
A Usage during supplier lead time
B Annual appraisal dates
C Product advertising reach
D Quarterly profit targets
Answer: A. Usage during supplier lead time A reorder point should trigger replenishment early enough to cover demand during lead time.
Why keep safety stock?
A Avoid supplier communication
B Replace cycle counting
C Buffer demand or supply uncertainty
D Increase storage indefinitely
Answer: C. Buffer demand or supply uncertainty Safety stock is an extra buffer against uncertainty in demand or replenishment.
What does ABC inventory analysis prioritize?
A Products by color
B Workers by seniority
C Suppliers by location
D Items by annual usage value
Answer: D. Items by annual usage value ABC analysis groups inventory by the relative value of annual usage, helping focus control effort.
What does material requirements planning calculate?
A Customer satisfaction scores
B Component quantities and timing
C Employee performance ratings
D Product advertising budgets
Answer: B. Component quantities and timing MRP calculates the materials and timing needed to support a production schedule.
When should a just-in-time system receive materials?
A When production needs them
B Only after final inspection
C Before demand is forecast
D At each year’s start
Answer: A. When production needs them Just-in-time replenishment seeks to have materials arrive near when they are needed, reducing inventory holding.
Which practice is central to lean operations?
A Repeat unnecessary inspections
B Add extra approvals
C Remove non-value-added work
D Build excess inventory
Answer: C. Remove non-value-added work Lean improves flow by removing steps that do not add value for the customer.
What does a value stream map help teams see?
A Employee promotion history
B Quarterly financial statements
C Brand awareness by region
D Flow from supplier to customer
Answer: D. Flow from supplier to customer Value stream mapping visualizes the flow of materials and information through a process.
Which path is included in a supply chain?
A Only advertising and sales
B Inputs through customer delivery
C Only final product storage
D Only internal payroll approvals
Answer: B. Inputs through customer delivery A supply chain links sourcing, production, and delivery to the customer.
Which criteria matter when evaluating a supplier?
A Quality, reliability, and cost
B Office size, décor, and parking
C Logo, slogan, and color
D Seniority, title, and tenure
Answer: A. Quality, reliability, and cost Supplier evaluation commonly considers quality, delivery reliability, total cost, and responsiveness.
What is procurement responsible for?
A Setting customer preferences
B Rating employee performance
C Obtaining needed goods and services
D Approving company dividends
Answer: C. Obtaining needed goods and services Procurement obtains the goods and services an organization needs to operate.
How does quality control assess an output?
A Compare it with job titles
B Compare it with office layouts
C Compare it with advertisements
D Compare it with standards
Answer: D. Compare it with standards Quality control measures completed goods or services against quality requirements.
How does total quality management treat quality?
A A supplier-only concern
B Everyone’s continuous responsibility
C An inspection team’s task
D A one-time project
Answer: B. Everyone’s continuous responsibility TQM involves organization-wide participation and ongoing improvement of processes and quality.
What does Six Sigma primarily seek to reduce?
A Reduce process defects
B Increase product variety
C Raise inventory buffers
D Shorten every meeting
Answer: A. Reduce process defects Six Sigma uses measurement and analysis to reduce defects and process variation.
In DMAIC, what follows Measure?
A Document
B Delegate
C Analyze
D Deliver
Answer: C. Analyze DMAIC stands for Define, Measure, Analyze, Improve, and Control.
What can a control chart help distinguish?
A Inputs and outputs
B Revenue and profit
C Direct and indirect labor
D Common and unusual variation
Answer: D. Common and unusual variation Control charts help monitor process variation and identify signals that may require investigation.
How does a Pareto chart help a quality team?
A Assign employee pay grades
B Prioritize frequent or costly causes
C Forecast market share
D Schedule every maintenance task
Answer: B. Prioritize frequent or costly causes Pareto analysis helps focus attention on the most significant categories of problems.
Which tool organizes possible causes of a problem?
A Cause-and-effect diagram
B Balance sheet
C Organization chart
D Gantt chart
Answer: A. Cause-and-effect diagram Cause-and-effect diagrams help teams organize potential causes of a problem for investigation.
Why collect customer feedback about a process?
A Set employee tax rates
B Replace all process data
C Identify unmet expectations
D Increase supplier lead times
Answer: C. Identify unmet expectations Customer feedback can reveal unmet needs and guide quality improvements.
How is labor productivity commonly expressed?
A Revenue per customer complaint
B Inventory per supplier
C Defects per advertisement
D Output per labor input
Answer: D. Output per labor input Labor productivity compares output with the labor input used to produce it.
What does capacity utilization show?
A Training hours versus attendance
B Actual output versus design capacity
C Supplier cost versus unit price
D Defects versus customer returns
Answer: B. Actual output versus design capacity Capacity utilization compares actual output with the operation’s design capacity.
Why standardize a repeatable process?
A Improve consistency and predictability
B Prevent employee feedback
C Increase avoidable variation
D Reduce documentation accuracy
Answer: A. Improve consistency and predictability Standard work makes repeatable tasks more consistent and easier to improve.
When is preventive maintenance usually performed?
A Only after a breakdown
B At random intervals
C Before equipment failure
D After products ship
Answer: C. Before equipment failure Preventive maintenance is planned before failure to reduce breakdown risk and downtime.
When is automation especially useful?
A Work needing constant judgment
B Processes without clear inputs
C Unique tasks with changing rules
D Repetitive, predictable tasks
Answer: D. Repetitive, predictable tasks Automation can improve consistency and throughput in repetitive tasks with stable requirements.
Which action can strengthen supply-chain resilience?
A Ignore delivery disruptions
B Prepare alternate supply options
C Remove all safety stock
D Rely on one route
Answer: B. Prepare alternate supply options Alternative sources and contingency plans can help operations respond to supply disruptions.
What does the Plan-Do-Check-Act cycle support?
A Continuous process improvement
B One-time product launch
C Annual salary reviews
D Supplier contract renewal
Answer: A. Continuous process improvement PDCA repeats planning, testing, checking results, and acting on what was learned.
How can appointment scheduling help a service operation?
A Remove customer contact
B Delay service completion
C Match capacity with demand
D Increase idle waiting
Answer: C. Match capacity with demand Scheduling can spread demand and align available staff or equipment with expected customer needs.
Why analyze queue length and waiting time?
A Choose supplier ownership
B Set product brand names
C Calculate employee pensions
D Locate service delays
Answer: D. Locate service delays Queue measures help identify service constraints and opportunities to improve flow.
How can a layout reduce operating waste?
A Increase material handling
B Limit unnecessary movement
C Add extra workstations
D Lengthen travel paths
Answer: B. Limit unnecessary movement A well-designed layout can reduce unnecessary movement of people and materials.
Why monitor process performance after improvement?
A Confirm gains are sustained
B Remove quality standards
C Restore old delays
D Avoid customer measurement
Answer: A. Confirm gains are sustained Ongoing monitoring checks whether a process change delivered lasting improvement.
What is a key project-management trade-off?
A Inventory, sales, and hiring
B Brand, price, and color
C Scope, time, and cost
D Labor, tax, and dividends
Answer: C. Scope, time, and cost Project decisions often balance scope, schedule, and cost constraints.
Why might a firm outsource a process?
A Avoid all supplier risk
B Remove performance measures
C Eliminate customer demand
D Access expertise or capacity
Answer: D. Access expertise or capacity Outsourcing can provide specialized capability or flexible capacity, while requiring supplier oversight.
What does a process flowchart make visible?
A Customer price changes
B Steps and decision points
C Supplier ownership
D Employee pay levels
Answer: B. Steps and decision points A process flowchart shows the sequence of activities and decision points in a process.