Operations Management Exam Review

1. What is the role of benchmarking in total quality management (TQM)?

• It helps in decreasing waste by eliminating errors and overproduction.
• It helps employees identify quality issues and solve them.
• It allows for continuous planning, doing, studying, and acting to solve problems.
• It assesses how others do things to build an environment of continuous improvement.

2. Which ISO standard was established to verify that organizations have met all specified quality standards?

• ISO 9000
• ISO 26000
• ISO 9004
• ISO 14000

3. Which quality management tool translates customer needs into product design features?

• Pareto analysis
• Cause-and-effect diagram
• Quality function deployment
• Check sheet

4. Which quality management tool monitors whether a process remains within acceptable limits?

• Scatter diagram
• Check sheet
• Cause-and-effect diagram
• Control chart

5. Which chart helps monitor the proportion of defects in samples?

• C-chart
• P-chart
• R-chart
• S-chart

6. Which term defines the maximum output rate a facility can achieve under ideal conditions?

• Design capacity
• Capacity utilization
• Effective capacity
• Capacity planning

7. Which of the following points to a reduction in average cost per unit as production increases?

• Focused factories
• Diseconomies of scale
• Best operating level
• Economies of scale

8. Which layout is best suited for assembling identical gift baskets in large quantities?

• Fixed position layout
• Hybrid layout
• Product layout
• Process layout

9. Which system generates the gross requirements of each part in inventory?

• Enterprise resource planning
• Material requirements planning
• Master production schedule
• Manual inventory system

10. Which planning process determines overall production capacity over a medium-term period?

• Demand planning
• Aggregate planning
• Master scheduling
• Materials requirements planning

11. Which aggregate planning strategy uses inventories and backorders with a constant production rate?

• Level plan
• Chase plan
• Layout plan
• Hybrid plan

12. Which activity involves production and distribution at the appropriate time?

• Traffic management
• Distribution management
• Supply chain management
• Logistics

13. What is the main purpose of supply chain management?

• Conducting and integrating the flow of goods and services
• Enhancing the quality of a product or service
• Providing customer satisfaction
• Increasing productivity levels

14. Which phase of the project life cycle carries out the activities that make up the project?

• Execution
• Planning
• Concept
• Feasibility study

15. Which is the correct sequence of project life cycle phases?

• Concept, Planning, Study, Execution, Termination
• Concept, Study, Planning, Execution, Termination
• Planning, Concept, Study, Execution, Termination
• Study, Concept, Planning, Execution, Termination

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