C215 Operations Management
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Free C215 Operations Management Questions
A corporation listens to people who are affected by change and solicits suggestions from people throughout the organization. Which strategy is the corporation using to overcome resistance to change?
- Participation and involvement
- Education and communication
- Negotiation and reward
- Facilitation and support
Explanation
The corporation is using the participation and involvement strategy to overcome resistance to change. This approach involves engaging employees directly in the change process, encouraging them to share ideas and feedback. When people feel heard and included, they are more likely to support the change rather than resist it. Participation increases ownership, builds trust, and leads to more effective and lasting organizational change.
Correct Answer Is:
Participation and involvement
Which competitive force is reduced by the barriers provided by government policies, capital requirements, brand identification, and cost disadvantages?
- Threat of supplier power
- Threat of substitutes
- Threat of new entrants
- Threat of customer power
Explanation
The correct answer is the threat of new entrants. Barriers such as government regulations, high capital requirements, brand loyalty, and cost disadvantages prevent new companies from easily entering an industry. These factors protect established businesses by reducing competition and maintaining market stability. In Porter’s Five Forces model, these barriers directly weaken the competitive pressure from potential new market entrants.
Correct Answer Is:
Threat of new entrants
For production control, lean pull systems are best suited for:
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Repetitive manufacturing
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Job shop production
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Semi-repetitive batch manufacturing
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Unpredictable demand
Explanation
Explanation:
A pull system depends on a stable, predictable workflow where demand is relatively constant, making it ideal for environments with repetitive production of standardized products. Job shops or operations with highly unpredictable demand lack the steady demand signals needed for an effective pull system.
Correct Answer:
Repetitive manufacturing
Why Other Options Are Wrong:
Job shop production
Job shops involve custom work with variable demand, which makes a pull system difficult to manage.
Semi-repetitive batch manufacturing
While more predictable than job shops, batch operations still experience more variability than is optimal for lean pull systems.
Unpredictable demand
Lean pull requires consistent demand; unpredictable demand disrupts the system and can lead to stockouts or excess inventory.
An important lesson from the product-process matrix is:
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Give importance to product choice decisions over process choice decisions
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Give importance to process choice decisions over product choice decisions
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Give importance to aligning product choice decisions and process choice decisions
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Most firms should operate off the diagonal to achieve competitive status
Explanation
Explanation:
The core message of the product-process matrix is that competitive advantage comes from aligning product characteristics—such as volume and standardization—with the appropriate process type. Successful firms adjust both product and process decisions so that they reinforce each other, maintaining a position along the matrix’s diagonal where product and process life cycles match.
Correct Answer:
Give importance to aligning product choice decisions and process choice decisions
Why Other Options Are Wrong:
Give importance to product choice decisions over process choice decisions
Focusing only on product decisions can lead to a process mismatch, undermining efficiency and competitiveness.
Give importance to process choice decisions over product choice decisions
Prioritizing process decisions alone ignores the critical need to match the process to the product’s market demands.
Most firms should operate off the diagonal to achieve competitive status
Operating off the diagonal generally signals misalignment and inefficiency, not competitive strength.
The four major decision responsibilities of operations management are:
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Process, quality, capacity, and human resources
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Process, quality, human resources, and inventory
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Quality, inventory, human resources, and capacity
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Process, capacity, quality, and inventory
Explanation
Explanation:
Operations management focuses on decisions that determine how products and services are produced and delivered. The four key decision responsibilities are process, capacity, quality, and inventory. Process decisions shape the production or service delivery methods. Capacity decisions determine the production capability needed to meet demand. Quality decisions ensure that outputs meet standards and customer expectations. Inventory decisions manage materials and products to balance availability with cost efficiency.
Correct Answer:
Process, capacity, quality, and inventory
Why Other Options Are Wrong:
Process, quality, capacity, and human resources
While managing human resources is important, it is not classified as one of the four primary decision responsibilities in operations management.
Process, quality, human resources, and inventory
This option incorrectly includes human resources instead of capacity, which is a central operations decision area for aligning resources with demand.
Quality, inventory, human resources, and capacity
Replacing processes with human resources omits a fundamental area of operations management that determines how inputs are transformed into outputs.
Why is operations management a more encompassing term than production management?
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Operations management is concerned with multiple products and services
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Operations management refers to service as well as manufacturing organizations
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Operations management is broader including the financing and marketing functions
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Operations management makes use of the tools of quantitative analysis and computer systems
Explanation
Explanation:
Operations management is a more encompassing term because it applies to both service and manufacturing organizations. Production management traditionally focuses on the manufacturing of physical goods, but modern operations management includes services such as healthcare, banking, and hospitality in addition to manufacturing. This broader scope captures planning, organizing, and supervising processes in any environment where goods or services are produced, making the definition more inclusive than just production.
Correct Answer:
Operations management refers to service as well as manufacturing organizations
Why Other Options Are Wrong:
Operations management is concerned with multiple products and services
While operations management can indeed deal with multiple products and services, this alone does not explain why it is more encompassing than production management. Production management can also involve multiple products or variations, so the key distinction lies not in the number of products but in the inclusion of service operations.
Operations management is broader including the financing and marketing functions
Operations management does not subsume financing and marketing functions. These areas remain distinct disciplines. While operations management interacts with finance and marketing, it does not encompass their responsibilities, so this option overstates its scope.
Operations management makes use of the tools of quantitative analysis and computer systems
The use of quantitative analysis and computer systems is common across many business functions, including production management. This is a methodological approach rather than a reason for the broader scope of operations management.
What is the first step of the control process?
- Measuring performance
- Comparing performance against standards
- Setting performance standards
- Taking corrective action
Explanation
The first step of the control process is setting performance standards. These standards establish clear expectations and benchmarks for performance within an organization. They serve as the foundation for evaluating actual outcomes later in the process. Without defined standards, it would be impossible to measure progress or determine whether corrective actions are necessary. Standards can be quantitative (like sales targets) or qualitative (like customer satisfaction goals).
Correct Answer Is:
Setting performance standards
Managing quality in a lean system:
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Is easy
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Means that product and service defects are never defined as waste
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Is done by suppliers
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Requires continuously exposing and correcting quality problems
Explanation
Explanation:
Lean systems view defects as a key form of waste, so quality management must be proactive and ongoing. Rather than inspecting defects after production, lean emphasizes building quality into every step and immediately addressing issues. Continuous improvement (kaizen) and root-cause analysis ensure problems are exposed and corrected quickly.
Correct Answer:
Requires continuously exposing and correcting quality problems
Why Other Options Are Wrong:
Is easy
Quality management in lean is challenging because it demands constant vigilance, worker involvement, and rapid problem-solving.
Means that product and service defects are never defined as waste
Defects are absolutely considered waste in lean, as they result in rework and customer dissatisfaction.
Is done by suppliers
While suppliers play a role, the responsibility for quality lies with everyone in the organization, not solely external suppliers.
Mass customization is defined as:
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Producing whatever the customer wants
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Making a small variety of products by use of mass production
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Producing a large variety of products at approximately the same cost as mass production
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Customizing products using economies of scale
Explanation
Explanation:
Mass customization combines the efficiency of mass production with the flexibility to meet individual customer preferences. The key is producing a large variety of products at costs close to those of standard mass production by using modular designs, postponement, and flexible processes.
Correct Answer:
Producing a large variety of products at approximately the same cost as mass production
Why Other Options Are Wrong:
Producing whatever the customer wants
While customization is part of the concept, it must be done efficiently and within cost constraints, not limitless “whatever” production.
Making a small variety of products by use of mass production
This describes standard mass production with limited variety, not mass customization.
Customizing products using economies of scale
Mass customization relies more on scope and flexible operations than on traditional economies of scale alone.
Capacity decisions:
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Include staffing and scheduling
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Include inventory control
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Include defining product specifications
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None of these
Explanation
Explanation:
Capacity decisions focus on determining the resources required to meet production or service demand. This includes planning for the right amount of labor and equipment to ensure operations can handle current and future workloads. Staffing and scheduling are essential components because they directly influence how much output can be produced within a given timeframe. Effective capacity planning ensures that the organization can meet customer demand without excessive cost or underutilization of resources.
Correct Answer:
Include staffing and scheduling
Why Other Options Are Wrong:
Include inventory control
Inventory control is a separate decision area concerned with managing raw materials, work-in-progress, and finished goods. While capacity planning considers resource availability, it does not directly involve the specific control and management of inventory levels.
Include defining product specifications
Defining product specifications is part of product design and development, not capacity decisions. Capacity planning assumes that the product specifications are already set and focuses on how to meet the required production volumes.
None of these
This is incorrect because staffing and scheduling clearly fall within the scope of capacity decisions, making one of the provided options correct.
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