D464 Managing Operations
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Free D464 Managing Operations Questions
1. What is a primary benefit of job production that contributes to customer satisfaction?
- The ability to produce goods in bulk at lower costs
- The customization of products to meet individual customer needs
- The use of automated processes to speed up production
- The reliance on low-skilled labor to minimize costs
Explanation
Job production allows for the creation of unique, one-off products tailored to individual customer specifications. This high level of customization ensures that the product meets the specific needs and preferences of the customer, significantly enhancing satisfaction. Unlike mass or batch production, which focuses on efficiency and volume, job production prioritizes quality, personalization, and attention to detail, making it ideal for bespoke products or specialized orders.
2. Which classification of countries primarily relies on the primary sector for income?
- MEDC
- LEDC
- Developing countries
- All of the above
Explanation
Less Economically Developed Countries (LEDCs) and many developing countries typically rely heavily on the primary sector for income. This sector involves the extraction and production of raw materials, such as agriculture, mining, forestry, and fishing. In these countries, a significant portion of the workforce is employed in primary activities, and economic output is largely dependent on natural resources. In contrast, more economically developed countries (MEDCs) derive a smaller share of income from the primary sector and focus more on secondary, tertiary, and quaternary activities.
3. How does quality assurance contribute to a company's competitive advantage?
- By allowing for higher pricing of products
- By preventing poor quality output and reducing the need for rectification
- By increasing the speed of production
- By focusing on customer service improvements
Explanation
Quality assurance (QA) contributes to a company's competitive advantage by ensuring that products meet established quality standards before reaching customers. By preventing defects and reducing the need for rework or rectification, QA minimizes waste, lowers costs, and enhances reliability. Consistently high-quality products build customer trust and loyalty, distinguishing the company from competitors. This focus on quality can also improve brand reputation, reduce returns, and create a more efficient production process, all of which strengthen market position.
4. What is the primary characteristic of mass customised production?
- Products are made to order for each customer.
- Products are mass produced with options for customer customization.
- Products are produced in small batches without customization.
- Products are only available in standard sizes and colors.
Explanation
Mass customized production combines the efficiency of mass production with the flexibility of customization. Products are manufactured on a large scale but allow for certain modifications based on individual customer preferences, such as color, features, or design options. This approach enables businesses to meet diverse customer demands without sacrificing the cost advantages and efficiency associated with high-volume production, bridging the gap between standardization and personalization.
5. Explain how the primary sector contributes to the overall economy. Which industries are typically included in this sector?
- It provides raw materials for manufacturing; includes agriculture, mining, and fishing.
- It focuses on service delivery; includes healthcare and education.
- It involves financial services; includes banking and investment.
- It emphasizes technology development; includes software and hardware industries.
Explanation
The primary sector forms the foundation of an economy by extracting and producing raw materials that are essential for manufacturing and other economic activities. Industries within this sector include agriculture, mining, fishing, and forestry. By supplying these raw resources, the primary sector supports the secondary sector (manufacturing) and provides employment opportunities, contributing to overall economic development and growth.
6. Which of the following best describes the quaternary sector?
- Manufacturing of goods
- Provisioning knowledge-based services
- Agricultural production
- Retail sales
Explanation
The quaternary sector of the economy focuses on knowledge-based services that involve intellectual activities rather than physical goods. This includes sectors such as information technology, research and development, education, consultancy, and other services that rely on expertise and information management. Unlike the primary, secondary, or tertiary sectors, the quaternary sector emphasizes innovation, knowledge creation, and the provision of high-value specialized services.
7. What is the primary purpose of quality control in production?
- To increase production speed
- To ensure quality is maintained by testing samples of the final output
- To reduce the number of employees needed
- To minimize the use of resources
Explanation
The primary purpose of quality control (QC) is to ensure that products meet established quality standards by inspecting and testing samples of the final output. QC identifies defects, deviations, or inconsistencies before products reach customers, helping maintain reliability, customer satisfaction, and compliance with regulatory standards. By monitoring the final output, companies can detect issues and take corrective actions to prevent poor-quality products from affecting the market.
8. Explain the difference between quality control (QC) and quality assurance (QA) in the context of production management.
- QC focuses on the final product, while QA involves checking at every stage of production
- QC is about employee training, while QA is about customer feedback
- QC is a proactive approach, while QA is reactive
- QC is only applicable in service industries, while QA is for manufacturing
Explanation
Quality control (QC) and quality assurance (QA) serve different roles in production management. QC focuses on inspecting the final product to detect defects and ensure it meets quality standards. In contrast, QA is a proactive approach that monitors and evaluates the entire production process to prevent defects from occurring in the first place. QA emphasizes process management, standardization, and continual improvement, whereas QC primarily identifies and addresses issues after they arise in the finished product.
9. What is the primary characteristic of batch production?
- Producing goods continuously without interruption
- Producing identical goods in groups or batches
- Creating unique, one-off products for individual customers
- Mass-producing a single product type indefinitely
Explanation
Batch production is a manufacturing method where goods are produced in specific groups or batches, rather than continuously or as individual items. Each batch goes through the production process together before the next batch begins. This approach allows for some flexibility in production, accommodates variations in product types, and can balance efficiency with customization. It is commonly used when producing moderate quantities of products that require the same production steps.
10. Operations management in the service sector is focused on creating what?
- Good experiences for those who use the service.
- Jobs for the local community.
- Additional customer expectations.
- Inexpensive ways to get things done.
Explanation
In the service sector, operations management aims to design, deliver, and improve services that meet or exceed customer expectations. The primary goal is to create positive experiences for customers by ensuring service quality, efficiency, and reliability. Unlike manufacturing, where tangible products are produced, service operations focus on intangible outcomes and customer satisfaction, which directly influence loyalty and business success.
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