OPERATION MANAGEMENT c) Scientific Management era

d) Digital era
8. Who is known as the father of
Part 1 scientific management?
a) Henry Ford
b) Frederick Winslow Taylor
1. What is the main goal of operations c) Adam Smith
management? d) Peter Drucker
a) To increase marketing reach 9. What system did Henry Ford
b) To maximize efficiency while introduce to improve mass production?
meeting customer needs a) Kaizen
c) To improve sales performance b) Assembly line
d) To focus only on finance c) Six Sigma
management d) Agile manufacturing
2. Which of the following is NOT a stage 10. Which of the following does NOT
in production and operations belong to modern operations
management? management approaches?
a) Production control a) Mass customization
b) Marketing strategy b) Just-in-time (JIT)
c) Production planning c) Taylorism
d) Improving operations d) Lean production
3. Operations management involves 11. The Toyota Production System
transforming inputs into ____. focuses on eliminating:
a) Machinery a) Excess marketing expenses
b) Goods and services b) All forms of waste
c) Financial resources c) Employee wages
d) Business plans d) Customer service operations
4. Which of the following functions is 12. The transformation process in
NOT directly linked to operations operations management consists of:
management? a) Inputs, processes, and outputs
a) Human resources b) Costs, revenues, and profits
b) Production c) Suppliers, customers, and
c) Sales management employees
d) Process design d) Warehousing, logistics, and retail
5. What is one of the key 13. Which of the following is NOT a core
responsibilities of an operations business process?
manager? a) Manufacturing
a) Managing financial audits b) IT support
b) Overseeing activities related to c) Marketing
process design and planning d) Sales
c) Creating marketing campaigns 14. Lean production primarily aims to:
d) Hiring employees a) Increase product costs
6. Operations management is considered b) Eliminate waste and inefficiencies
a ______________ function in an c) Expand advertising campaigns
organization. d) Reduce workforce size
a) Primary strategic 15. The Just-in-Time (JIT) system is most
b) Secondary support useful for:
c) Non-essential a) Reducing inventory costs
d) Optional b) Increasing warehouse space
7. Which era introduced scientific c) Creating excess product stock
management to improve factory d) Enhancing customer service
efficiency? operations
a) Pre-industrial age 16. Which of the following is an example of
b) Industrial Revolution an upper-management process?
1
 a) Organizational governance c) Random variation
b) Product packaging d) Economic variation
c) Order fulfillment 25. The Industrial Revolution changed
d) Customer service production by introducing:
17. Process management involves: a) Craft production
a) Hiring and training employees b) Standard gauging systems
b) Transforming inputs into outputs c) Manual labor-intensive processes
efficiently d) Exclusive product customizations
c) Expanding financial markets 26. Which metric helps quantify variation
d) Conducting external audits in operations?
18. Which of the following is a soft skill a) Profit margin
required for an operations manager? b) Standard deviation
a) Machine programming c) Market share
b) Communication skills d) Return on investment
c) Financial modeling 27. Agile manufacturing allows
d) Structural engineering companies to:
19. What is Mass Customization? a) Adapt quickly to market changes
a) Standardized production with minor b) Standardize all products
customizations c) Eliminate customer interactions
b) Fully unique products for every d) Reduce employee workload
customer 28. Economic analysis of investment
c) Producing in large quantities without proposals is a joint responsibility of:
customization a) Marketing and operations
d) A method to improve logistics b) Finance and operations
20. The feedback loop in operations c) Sales and IT
management is used for: d) HR and accounting
a) Managing customer payments 29. Which factor leads to operational
b) Controlling the transformation inefficiencies?
process a) Poor demand forecasting
c) Increasing costs b) Standardized training
d) Reducing product variety c) High-quality production
21. Which system helps businesses d) Lean inventory management
forecast and manage variations in 30. What does Total Quality
demand? Management (TQM) focus on?
a) Six Sigma a) Advertising strategies
b) Economic order quantity (EOQ) b) Customer satisfaction through
c) Demand planning continuous improvement
d) Outsourcing c) Increasing product prices
22. The Five Whys methodology is used d) Expanding market reach
to:
a) Optimize financial reporting 31. Which of the following is a key
b) Identify root causes of problems component of the Input/Output
c) Train new employees Transformation Model?
d) Improve software management a) Demand forecasting
23. Kaizen refers to: b) Supplier selection
a) Sudden major improvements c) Feedback loop
b) Continuous incremental d) Marketing segmentation
improvement 32. Random variation in operations refers
c) Reducing employee benefits to:
d) Increasing raw material usage a) Unpredictable fluctuations in
24. What type of process variation is demand or production
caused by defective inputs? b) Defects caused by poor-quality
a) Structural variation materials
b) Assignable variation
2
 c) Seasonal trends in the market 40. Which function is NOT typically
d) Variations that can be controlled by involved in operations management?
management a) Quality control
33. Which of the following is an example of b) Logistics
structural variation in demand? c) Financial auditing
a) Sudden machine failure d) Production planning
b) Customer complaints about quality 41. An example of an operational
c) Seasonal demand changes process in a restaurant is:
d) Employee turnover a) Employee payroll processing
34. Which of the following best defines Six b) Cooking and serving food
Sigma? c) Creating TV advertisements
a) A financial planning method d) Planning an annual budget
b) A methodology that minimizes 42. What is one disadvantage of mass
defects and process variation production?
c) A legal compliance strategy a) High labor costs
d) A product pricing model b) Low output
35. The goal of Just-in-Time (JIT) c) Limited product variety and flexibility
inventory management is to: d) High dependence on skilled workers
a) Increase storage costs 43. Which business model focuses on
b) Reduce inventory waste and collaboration among companies to
improve efficiency produce products?
c) Stockpile excess inventory a) Mass production
d) Expand factory size b) Flexible specialization
36. Which concept involves breaking c) Standardization
down complex processes into smaller, d) Lean production
more efficient steps? 44. Which type of variation in a process
a) Lean production is caused by poor work methods or
b) Mass customization defective inputs?
c) Agile manufacturing a) Random variation
d) Process reengineering b) Assignable variation
37. What is a primary characteristic of c) Structural variation
mass production? d) Economic variation
a) Low volume, high customization 45. Which principle involves consistently
b) High volume, standardized finding and eliminating waste in
production production?
c) Highly flexible processes a) TQM
d) Production based on customer b) Lean production
demand c) Scientific management
38. Total Quality Management (TQM) d) Mass customization
promotes: 46. The Toyota Production System
a) Reducing employee workload (TPS) introduced which concept?
b) Continuous improvement across all a) Assembly line manufacturing
departments b) Lean production
c) Outsourcing all operations c) Craft production
d) Relying only on technology for d) Financial forecasting
quality control 47. Which process ensures that the
39. The primary function of process capacity of operations meets customer
management in operations is to: demand?
a) Increase marketing efficiency a) Market segmentation
b) Ensure smooth transformation of b) Demand planning
inputs into outputs c) Employee engagement
c) Monitor social media engagement d) Public relations
d) Develop financial strategies 48. Which industry is most likely to use
agile manufacturing?
3
 a) Agriculture c) Scientific management
b) Automotive d) Traditional mass production
c) Fast fashion 57. Which of the following is NOT a
d) Traditional book publishing characteristic of lean production?
49. What is the main advantage of a) Reducing inventory waste
using mass customization? b) Continuous process improvement
a) No production costs c) Producing goods in excess
b) High efficiency with personalized d) Streamlining workflow
products 58. Which of the following is an
c) Producing identical goods for all example of a feedback loop?
customers a) Customer complaints leading to
d) Eliminating product variety product modifications
50. Which of the following is a key b) Increased production without
benefit of process standardization? reviewing demand
a) Greater product flexibility c) Hiring employees without
b) Reduced costs and increased performance evaluation
efficiency d) Delaying changes in business
c) Higher employee turnover strategy
d) Decreased customer satisfaction 59. A key component of total quality
51. Which strategy focuses on reducing management (TQM) is:
defects to near perfection? a) Increasing inventory levels
a) Kaizen b) Involving all employees in quality
b) Six Sigma improvement
c) Mass customization c) Reducing customer feedback
d) Random variation d) Eliminating customer service
52. Which of the following is an functions
example of an upper-management 60. Agile manufacturing helps
process? businesses:
a) Employee scheduling a) Reduce flexibility in production
b) Customer service training b) Quickly adapt to changes in market
c) Organizational governance demand
d) Equipment maintenance c) Maintain static production methods
53. Kaizen is a philosophy of: d) Lower overall product quality
a) Continuous improvement
b) Quick-fix solutions
c) Financial cost-cutting
d) Outsourcing manufacturing Part 2
54. What is the key challenge in
operations capacity planning? 1. What is the main objective of process
a) Overestimating demand management?
b) Balancing supply with demand a) Reducing labor costs
variations b) Driving incremental improvements
c) Increasing unnecessary costs in all processes
d) Reducing production quality c) Eliminating all manual processes
55. Which process is an example of a d) Outsourcing all operations
supporting business process? 2. What is the first step in conducting a
a) Manufacturing raw materials process efficiency audit?
b) Customer relationship management a) Identifying end-users
c) Direct product sales b) Establishing performance measures
d) Employee payroll management c) Establishing the process owner/s
56. Which system is designed to d) Breaking down the process into
minimize delays and inefficiencies? tasks
a) Just-in-Time (JIT)
b) Craft production
4
3. Which of the following is NOT a step in b) Deciding employee compensation
a process efficiency audit? c) Selecting the best marketing
a) Identifying process inputs strategy
b) Ensuring quality of inputs d) Choosing the organization’s
c) Reducing employee wages leadership team
d) Establishing performance measures 12. A grocery store managing checkout
4. In operations management, strategic lanes is an example of:
decisions: a) Strategic decision-making
a) Have long-term consequences b) Capacity planning
b) Can be easily reversed c) Inventory control
c) Only focus on short-term efficiency d) Supply chain management
d) Require no resource commitments 13. What is a key requirement for quality
5. Tactical operations decisions: improvement?
a) Are long-term and difficult to change a) Lowering prices
b) Have a short to medium-term b) Increasing employee turnover
impact c) Continuous improvement efforts
c) Do not affect costs or profits d) Reducing supply chain partners
d) Focus only on strategic planning 14. Which decision type involves
6. What is the role of models in decision- scheduling surgeries in a hospital?
making? a) Inventory decision
a) To complicate processes b) Capacity decision
b) To simplify real-life problems c) Quality decision
c) To eliminate human intervention d) Scheduling decision
d) To increase costs 15. Master scheduling determines:
7. Which of the following is a physical a) Employee salaries
model? b) Annual production for all products
a) A scale-model of a building c) The number of each product to be
b) A mathematical formula produced in a specific period
c) A process flowchart d) Warehouse locations
d) A decision tree 16. Which of the following is NOT an
8. Which of the following is a example of a repetitive process?
mathematical model? a) Car manufacturing
a) A factory blueprint b) Fast food service
b) A bar chart c) Automatic car washes
c) A profit-loss equation d) Customized furniture making
d) A scaled-down airplane prototype 17. Cellular process layouts:
9. What is the key question in inventory a) Are always arranged in a straight
management? line
a) Where will production occur? b) Allow for efficient production with
b) How much inventory should be flexibility
held? c) Do not allow any product
c) Who will manage inventory? customization
d) What is the price of raw materials? d) Are ineffective for manufacturing
10. Excess inventory can lead to: 18. What is the biggest advantage of
a) Lower storage costs automation in technology decisions?
b) Increased efficiency a) Higher labor costs
c) High storage and obsolescence b) Increased accuracy and efficiency
costs c) No need for human supervision
d) Immediate customer service d) Reduced production speed
improvements 19. Location decisions are primarily
11. Which of the following best describes influenced by:
capacity decisions? a) The availability of customers only
a) Determining how much production b) The ability to avoid competition
capacity is needed
5
 c) Proximity to supply and customers a) Stage 1
d) Aesthetics of the location b) Stage 2
20. A key labor factor in location c) Stage 3
decisions is: d) Stage 4
a) Proximity to beaches 29. Which of the following is NOT a
b) The local climate strategic operations decision?
c) The prevailing wage rate a) Facility location
d) The presence of competitors b) Workforce scheduling
21. What is a key concern in layout c) Technology selection
decisions? d) Long-term capacity planning
a) Proximity to airports 30. Tactical decisions are generally:
b) Efficiency of resource flow a) Difficult to change
c) Eliminating all manual tasks b) Costly and permanent
d) Cost of rent c) Short to medium-term in impact
22. Which of the following is NOT a d) Focused only on competition
general objective of layout decisions?
a) Clarity of flow 31. Which of the following is NOT a
b) Accessibility step in conducting a process efficiency
c) Future flexibility audit?
d) Increasing production waste
23. Which factor does NOT influence
a) Establishing process owners
supply chain management?
b) Identifying customers and their needs
a) Transportation providers
c) Ignoring performance measures
b) Internal departments
d) Analyzing areas for improvements
c) Social media trends
d) Information systems
32. What type of process is highly
24. What is the main role of operations
strategy? efficient but lacks flexibility in
a) Implementing strategic decisions accommodating product variety?
b) Setting marketing objectives
c) Hiring employees a) Intermittent process
d) Designing logos b) Repetitive process
25. Stage 1 of Hayes and Wheelwright’s c) Cellular process
Model describes an operation that: d) Batch process
a) Provides competitive advantage
b) Matches industry best practices 33. What is the main goal of operations
c) Holds the organization back strategy?
d) Leads industry innovation
26. Stage 4 of Hayes and Wheelwright’s a) To increase complexity in decision-
Model describes operations that: making
a) Only support competitive strategy b) To define the role and objectives of
b) Drive entire company strategy operations
c) Are just as good as competitors c) To eliminate competition
d) Are internally neutral d) To limit resource allocation
27. What is the main goal of process
efficiency audits? 34. Which factor is NOT considered in
a) Identify areas for improvement
facility location decisions?
b) Reduce employee count
c) Increase costs
d) Avoid compliance checks a) Proximity to customers
28. A company that shifts its entire b) Employee hobbies
competitive strategy to operations c) Labor factors
is in which stage of Hayes and d) Community incentives
Wheelwright’s Model?
6
35. Which of the following describes a 40. What does “continuous
Stage-4 operation in the Hayes and improvement” mean in operations
Wheelwright model? management?

a) Struggling to meet market requirements a) A one-time change to increase

b) Adopting best practices but without efficiency
competitive advantage b) A strategy of constant small
c) The operation drives the entire improvements to enhance performance
organizational strategy c) A process of completely overhauling
d) Only focusing on cost-cutting the business every year
d) A focus only on short-term gains
36. The role of an operations manager
includes which of the following? 41. Tactical operations decisions
typically involve:
a) Making key decisions affecting the
organization a) Long-term planning with large resource
b) Ignoring production schedules commitments
c) Avoiding workforce management b) Short- to medium-term changes that
d) Focusing only on financial reports can be easily adjusted
c) Corporate-level strategic investments
37. What is a key characteristic of d) Legal and regulatory issues only
schematic models?
42. Which is NOT an example of a
a) They are physical representations of location factor in operations
real-life objects management?
b) They are mathematical formulas
c) They include graphs, charts, and a) Access to transportation
blueprints b) Tax incentives
d) They are the most abstract type of c) Employee height requirements
model d) Community factors

38. What is the main purpose of 43. Which of the following decisions is
inventory management? strategic in nature?

a) To minimize inventory at all costs a) Workforce scheduling

b) To balance inventory levels to meet b) Inventory control
demand without excessive costs c) Facility location selection
c) To increase storage costs d) Day-to-day maintenance
d) To prevent all inventory losses
44. A mathematical model in decision-
39. Which is an example of a quality making includes:
decision in operations management?
a) Physical representations
a) Choosing a facility location b) Numbers, formulas, and symbols
b) Deciding on workforce schedules c) Schematic diagrams
c) Implementing a continuous d) 3D prototypes
improvement plan
d) Selecting a supply chain partner

7
45. The primary concern in scheduling 50. What is a key advantage of
decisions is: automation in operations
management?
a) Optimizing labor and machines to meet
efficiency and customer service goals a) Increased labor costs
b) Reducing employee work hours only b) Reduced speed and efficiency
c) Increasing product costs c) Improved accuracy and consistency
d) Expanding without planning d) More reliance on manual work

46. What is the purpose of a supply

chain?

a) To manage all activities involving Answer Key (PART 1)

suppliers, production, and logistics
b) To focus only on manufacturing
efficiency 1. b
c) To reduce customer involvement 2. b
d) To eliminate vendor contracts 3. b
4. c
5. b
47. What is a characteristic of a cellular
6. a
process layout? 7. c
8. b
a) It minimizes setup times and 9. b
inventories 10. c
b) It only applies to manufacturing 11. b
environments 12. a
c) It reduces product customization 13. b
d) It follows a strict linear arrangement 14. b
15. a
48. In the Hayes and Wheelwright 16. a
model, a Stage-2 organization is: 17. b
18. b
a) Lagging behind competitors 19. a
b) Implementing industry best practices 20. b
but lacking unique advantages 21. c
c) Leading the market with innovative 22. b
strategies 23. b
d) Disorganized in operations 24. b
25. b
49. What does “capacity decision” 26. b
primarily determine? 27. a
28. b
a) The number of employees hired 29. a
b) The maximum output an organization 30. b
can produce 31. c
c) The financial status of the company 32. a
d) The legal requirements for production 33. c
34. b
35. b
36. d
37. b
38. b

8
 39. b 29. b
40. c 30. c
41. b 31. c
42. c 32. b
43. b 33. b
44. b 34. b
45. b 35. c
46. b 36. a
47. b 37. c
48. c 38. b
49. b 39. c
50. b 40. b
51. b 41. b
52. c 42. c
53. a 43. c
54. b 44. b
55. d 45. a
56. a 46. a
57. c 47. a
58. a 48. b
59. b 49. b
60. b 50. c

Answer Key (PART 2)

1. b
2. c
3. c
4. a
5. b
6. b
7. a
8. c
9. b
10. c
11. a
12. b
13. c
14. d
15. c
16. d
17. b
18. b
19. c
20. c
21. b
22. d
23. c
24. a
25. c
26. b
27. a
28. d