Production and Operations Management – section 1
Multiple-Choice Questions (MCQs)
1. What is operations management?
a) Management of financial assets
b) Management of systems that create goods and services
c) Marketing management
d) Human resource management
Answer: b) Management of systems that create goods and services
2. Which of the following is an example of a service?
a) Automobile
b) Oven
c) Haircut
d) Shampoo
Answer: c) Haircut
3. In the transformation process, what is the role of "control"?
a) It measures outputs.
b) It compares feedback with standards to determine corrective action.
c) It only focuses on labor costs.
d) It measures raw materials.
Answer: b) It compares feedback with standards to determine corrective action.
4. Which of the following is NOT a primary function of a business organization?
a) Operations
b) Finance
c) Marketing
d) Human resources
Answer: d) Human resources
5. The degree of customer contact is higher in:
a) Manufacturing
b) Services
c) Production
d) Retail
Answer: b) Services
6. Which of the following processes involves converting inputs into outputs?
a) Financial analysis
b) Process management
c) Marketing
d) Recruitment
Answer: b) Process management
7. Which organization is NOT related to operations management professional societies?
a) ASQ (American Society for Quality)
b) APICS
c) PMI (Project Management Institute)
d) AMA (American Medical Association)
Answer: d) AMA (American Medical Association)
8. What is "supply chain management"?
a) Managing internal processes only
b) Managing the sequence of activities that produce and deliver goods or services
c) Managing inventory
d) Managing finance and marketing
Answer: b) Managing the sequence of activities that produce and deliver goods or services
9. Who led the scientific management movement?
a) Elton Mayo
b) Frederick Winslow Taylor
c) Abraham Maslow
d) William Ouchi
Answer: b) Frederick Winslow Taylor
10. Which concept states that a few factors account for a large percentage of occurrences?
a) Supply chain management
b) Pareto Phenomenon
c) Operations decision-making
d) System design
Answer: b) Pareto Phenomenon
True/False Questions
1. Operations management only applies to manufacturing industries.
Answer: False
2. Services are intangible and do not involve any physical product.
Answer: True
3. The supply chain includes only direct suppliers and producers.
Answer: False
4. Process variation can disrupt supply chain processes and increase costs.
Answer: True
5. Finance and operations in a business organization have no overlap in activities.
Answer: False
6. The operations manager is responsible for guiding the system through decision-making.
Answer: True
7. System operation decisions are typically long-term and strategic.
Answer: False
8. Human relations movement emphasizes the human element in job design.
Answer: True
9. Sustainability in operations focuses only on environmental concerns.
Answer: False
10. Models used in decision-making are simplifications of real-life phenomena.
Answer: True
Fill-in-the-Blank Questions
1. The part of a business organization that is responsible for producing goods or services is called the
________.
Answer: Operations
2. The comparison of feedback against standards to determine if corrective action is needed is known
as ________.
Answer: Control
3. A key concept in operations management that focuses on reducing waste and improving quality is
________.
Answer: Lean
4. The ________ process transforms inputs into outputs in an organization.
Answer: Transformation
5. The management of interconnected activities in the production and delivery of goods and services
is called ________.
Answer: Supply chain management
