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L5M9 Operations Management Questions and Answers

Questions 4

Where a company produces many different but similar products, what is this dimension known as?

Options:

A.

high variety

B.

low variety

C.

high variation

D.

low variation

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Questions 5

The Public Sector only provides Services not Goods. Is this TRUE?

Options:

A.

yes- the public sector provides services such as education and health care

B.

yes- the private sector is responsible for the production of goods, whereas services can be provided either by the public or private sector

C.

no- the public sector may provide goods as well as services

D.

no- the public sector provides goods rather than services

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Questions 6

Below are details of 4 local manufacturing companies. For each company you must decide what the main objective is for the organisation and what layout their manufacturing plant has.

Company 1: This company creates large, delicate products which are hard to move. The main aim of the company is to stand out from competitors due to the superior level of materials used and by using the latest forms of technology to create the items.

Company 2: This company produces 72 different items and has designated zones within its premises for the creation of each item. The zones are organised based on the technology used and some products may be passed between different zones to be completed. The company creates many different items in response to changing customer demands, with many product lines only lasting a single season.

Company 3: Company 3 creates one product which flows along a single production line, with staff members adding to the product on four different occasions. The company must produce a high volume of this singular product in order to break even. Therefore, there is always a steady flow of items through the plant and it is important there is no stoppage in production.

Company 4: This company produces small batches of products, as and when they are ordered by customers. Due to uncertainty in demand, a high profit margin is added to the cost of each item. Teams in the factory are grouped into different areas depending on the technological process they are using.

Complete the table below by listing the objective criteria and plant layout for each company. Each response should only be used once: flexibility, speed, quality, cost, functional layout, cell layout, product layout, fixed-position layout

Company

Performance objective

Plant layout

Company 1

Box 1

Box 5

Company 2

Box 2

Box 6

Company 3

Box 3

Box 7

Company 4

Box 4

Box 8

Which of the following will you put into box 8?

Options:

A.

functional layout

B.

cell layout

C.

product layout

D.

fixed-position layout

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Questions 7

What is the principal process-improvement purpose of Six Sigma?

Options:

A.

Increase customer satisfaction without measuring performance

B.

Achieve financial break-even

C.

Reduce harmful process variation and associated defects

D.

Reduce waste without addressing process variation

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Questions 8

Elderberry Ltd is an established organisation in the agricultural industry but has recently expanded into manufacturing its own juice range. The company is at the 'Introduction' stage of the product lifecycle and is attempting to bring new products to market. Which of the following performance objectives would be the most dominant at this stage of the lifecycle?

Options:

A.

cost

B.

flexibility

C.

speed

D.

dependability

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Questions 9

Total Productive Maintenance and Just in Time are examples of Total Quality Management (TQM). Is this correct?

Options:

A.

yes- other examples include business process re-engineering

B.

yes- other examples include statistical process control

C.

no- TQM includes quality circles and quality function deployment

D.

no- TQM includes Kansei Engineering

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Questions 10

When quality is used as a foundation to build improvements in other areas such as dependability, what is this theory known as?

Options:

A.

brick-laying theory

B.

wave theory

C.

sand cone theory

D.

bridge theory

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Questions 11

Which improvement theory follows the maxim of 'don't automate, obliterate'?

Options:

A.

BPR

B.

Benchmarking

C.

Continuous Improvement

D.

ERP

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Questions 12

The Balanced Scorecard is a performance management approach which looks at measuring four areas of a business. Of those listed below, which is not an area traditionally measured within the Scorecard?

Options:

A.

business processes

B.

customer

C.

finance

D.

environment

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Questions 13

Which of the following would you require in order to calculate the availability of a piece of equipment used in manufacturing?

Options:

A.

cost of repair

B.

mean time to repair

C.

output of machine

D.

production rate

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Questions 14

There are four manufacturing companies located on Seashell Industrial Estate. Each company creates a different product and employs a different maintenance approach to its operations. For each company, select the corresponding maintenance approach and the key operating process characteristic.

Company 1: This company creates craft beer and offers customers a tour of the brewery for a small charge. The brewing equipment is serviced monthly and the brewery is kept extremely clean. All equipment is labelled with the last service date.

Company 2: This company produces seasonal items such as Easter Eggs and Christmas Cake. The equipment has a control panel where lights will flash red advising staff to check oil levels and components. Staff can then report issues to the maintenance team if remedial work is required. Product demand fluctuates throughout the year.

Company 3: This equipment does not often break down and is only fixed when it is reported by staff as no longer working. Company 3 creates toys, providing a large range of product sizes and colours based on different customer requirements.

Company 4: Parts of the machine are serviced quarterly but in general, the machine is left to run its course and is then replaced when it is no longer financially viable to fix. The company produces cereal and the operating process is focused on the quantity produced and therefore uses standardised processes.

Complete the table below by listing the maintenance approach and operating process characteristic for each company. Each response should only be used once: preventive maintenance, run to breakdown maintenance, condition-based maintenance, mixed maintenance, volume, visibility, variation, variety

Company

Maintenance approach

Operating-process characteristic

Company 1

Box 1

Box 5

Company 2

Box 2

Box 6

Company 3

Box 3

Box 7

Company 4

Box 4

Box 8

Which of the following will you put into box 2?

Options:

A.

preventive maintenance

B.

run-to-breakdown maintenance

C.

condition-based maintenance

D.

mixed maintenance

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Questions 15

Total Quality Management is built on 8 founding principles. Which of the following do these include? Select THREE.

Options:

A.

employee involvement

B.

process improvement

C.

fact-based decision making

D.

bottom-up process design

E.

supply chain integration

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Questions 16

An order-qualifying objective contributes to business success because it guarantees a customer will purchase a product. Is this TRUE?

Options:

A.

Yes, order-qualifying objectives always guarantee a sale.

B.

Yes, order-qualifying objectives mean the product is superior to alternatives.

C.

No, an order qualifier establishes a minimum requirement for consideration but does not guarantee purchase.

D.

No, order qualifying refers to accepting or rejecting customer orders.

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Questions 17

A company should aim to achieve all its performance objectives at the same time to ensure success. Is this TRUE?

Options:

A.

yes- a company should focus on all criteria at each stage of the product lifecycle

B.

yes- focusing on all objectives simultaneously is the only way to achieve a higher profit and market share

C.

no- companies should set performance criteria each month and this may change depending on market conditions

D.

no- companies should select which objectives should take precedent over others depending on the focus of the organisation at that time

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Questions 18

Spotted Elephant Ltd is a confectionery manufacturer whose operations department is headed by Brian. Brian is looking into Total Quality Management and ways of implementing this in the factory. He is considering the introduction of Total Productive Maintenance. What would this involve?

Options:

A.

using a pull inventory system

B.

servicing the machinery more frequently

C.

introducing quality assurance processes for the confectionery items produced

D.

business process re-engineering

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Questions 19

George has recently been hired as the new Operations Manager at a cake factory. He has 10 years; experience but his most recent employment was as an Operations Manager in an accountancy firm. George believes that the skills and responsibilities of an Operations Manager is the same regardless of the organisation he works for. Which of the following would be one of these responsibilities? Select TWO

Options:

A.

increase profit

B.

keep customers happy

C.

create competitive advantage

D.

manage a team

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Questions 20

Tools by Tom is a manufacturer of hardware. They have recently advertised that a new range of hammers would be released shortly, however due to issues in the supply chain and a low-quality delivery of steel, the production of the new hammers has been put on hold. Of the following, which are internal impacts of failure for the company? Select TWO.

Options:

A.

loss of credibility

B.

customer complaints

C.

downtime

D.

wasted resources

E.

decreased market share

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Questions 21

Doug's Doughnuts Ltd is a large manufacturer of doughnuts. They produce in excess of 100,000 doughnuts per day which are boxed and sent to supermarkets and other retail outlets for sale. Large pieces of machinery are used to make the doughnuts. Which form of maintenance would be the most appropriate to use at Doug's Doughnuts?

Options:

A.

run to breakdown

B.

preventative

C.

condition based

D.

reactive

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Questions 22

Which of the following is a computer-based programme which determines the amounts of inputs required into a process?

Options:

A.

Just in Time

B.

MRP

C.

Kaizen

D.

Work Scheduling

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Questions 23

Penny is the Operations Manager at a small furniture manufacturing company that makes tables and chairs, among other wooden household items. In the manufacturing site there is a small warehouse which stores inventory which is used in unforeseen circumstances such as a late delivery. What is the name given to this type of inventory?

Options:

A.

anticipation inventory

B.

buffer stock

C.

work-in progress

D.

transit inventory

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Questions 24

When processing low volumes of a product, specialisation is high and it is therefore possible to create products at a lower unit cost. Is this TRUE?

Options:

A.

yes- staff gain specialities when there is less products to create

B.

yes- when producing low volumes of a product, cost savings can be transferred to the customer

C.

no- creating products in low volumes often leads to a higher unit cost

D.

no- the volume of products created does not impact upon unit costs as these are fixed in advance

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Questions 25

When conducting Failure Mode and Effects Analysis (FMEA), which systems could be used to communicate or assess risks to business operations? Select TWO.

Options:

A.

ABC analysis

B.

Generic colour coding

C.

Red-Amber-Green (RAG) system

D.

A numerical scale from 1 to 10

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Questions 26

According to Juran, there are several options to improve quality- these include which of the following? Select THREE

Options:

A.

repair

B.

reallocate

C.

refine

D.

renovate

E.

remove

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Questions 27

Which of the following are performance objectives which can be applied to the Operations department at any organisation? Select THREE

Options:

A.

cost reduction

B.

dependability

C.

quality

D.

flexibility

E.

innovation

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Questions 28

In which stage of development does the operations department contribute competitive advantage to an organisation?

Options:

A.

internally neutral

B.

externally neutral

C.

internally supportive

D.

externally supportive

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Questions 29

Below are details of five companies who operate a Total Quality Management System (TQM). For each company, select the system used and identify which area of the Balanced Scorecard this relates to.

Company 1: The focus of this company is to gather real-time data to assess the quality of products created during the manufacturing process. There are tight budgets and reworking any defects will affect the bottom line.

Company 2: This company is concerned about how their products are received. They have recently completed market research focused on their client’s feelings. The objective is now to improve the product’s look and performance to meet these expectations.

Company 3: The focus of this company is defining the customer requirements and translating this into a high-quality specification and effective operational process.

Company 4: Within this company there is a group of 6 employees who meet regularly with the objective of reducing issues that arise in the manufacturing of products.

Complete the table below by listing the TQM System used and the relevant Balanced Scorecard criteria for each company. Each response should only be used once: Quality Circle, Statistical Process Control, Kansei Engineering, Quality Function Deployment, Finance Criteria, Business Process Criteria, Learning and Growth Criteria, Customer Criteria.

Company

TQM technique

Balanced Scorecard perspective

Company 1

Box 1

Box 5

Company 2

Box 2

Box 6

Company 3

Box 3

Box 7

Company 4

Box 4

Box 8

Which of the following will you put into box 2?

Options:

A.

quality circle

B.

statistical process control

C.

kansei engineering

D.

quality function deployment

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Questions 30

One of the main differences between Business Process Re-Engineering and Kaizen is that Kaizen is more expensive, is this true?

Options:

A.

yes- Kaizen uses a cross-functional team to implement

B.

yes- Kaizen involves changing an entire process

C.

no- Business Process Re-Engineering is usually more expensive as a Consultant is often hired

D.

no- Business Process Re-engineering is a slow process that involves all members of the team

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Questions 31

Joan is the Operations Manager at a Dentist Surgery and has recently completed a Pareto Analysis with the hopes of improving the quality of service offered. Which of the following would be a possible finding from this analysis?

Options:

A.

80% of complaints are caused by 20% of the dentists

B.

The booking process is very slow and doesn't meet customer expectations

C.

there is a gap between the service expected by customers and the service delivered

D.

customers are twice as likely to recommend the dentist if they had a positive experience

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Questions 32

According to the Taguchi Loss Function there are two types of costs incurred when there is an issue with quality. What are these?

Options:

A.

financial costs and reputational costs

B.

private costs and social costs

C.

social costs and environmental costs

D.

private costs and public costs

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Questions 33

Little Joy Ltd is a large company with several functional departments. Below are details of four departments. For each, you must decide which functional area of the business the department is, as well as the SERVQUAL Gap that each Department Lead is concerned with.

Department 1: This department is concerned with the creation of products. The products are created in line with BS EN 716-1 and undergo rigorous tests before they leave the factory. Many customers are unaware of the additional costs of testing to BS EN 716-1 and complain about the price of this product line.

Department 2: Other departments of the business are internal customers of this functional area and approach the Department Lead when they require something to be bought. Often the internal customers have unrealistic expectations of the timescales involved in the process and the Department Lead spends a lot of time explaining lead times and logistics.

Department 3: This functional area creates the budgets for the company and emails these to the Department Leads at the beginning of every quarter. Due to the complexity of the documents, other functional areas of the business often don’t understand the information provided.

Department 4: This area of the business is concerned with revenue, which has recently slumped. The Department Lead is conducting market surveys to find out the reason for this.

Complete the table below by listing the Functional Area of the business, and the corresponding SERVQUAL Gap. Each response should only be used once: procurement, finance, sales, production, satisfaction gap, delivery gap, standards gap, communication gap.

Department

Functional area

SERVQUAL gap

Department 1

Box 1

Box 5

Department 2

Box 2

Box 6

Department 3

Box 3

Box 7

Department 4

Box 4

Box 8

Which of the following will you put into box 4?

Options:

A.

procurement

B.

finance

C.

sales

D.

production

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Questions 34

Which of the following are operations management activities? Select THREE

Options:

A.

process selection

B.

materials management

C.

development of new products

D.

capacity planning

E.

job design

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Questions 35

Isobel is an Operations Manager at a plastics company and is conducting a Failure Mode and Effects Analysis (FMEA) on some products that the company manufactures. Which of the following areas would malfunctions be detected in when conducting a FMEA? Select TWO

Options:

A.

design

B.

delivery

C.

operations

D.

process

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Questions 36

There are 5 foundational aspects of Total Productive Maintenance. Which of the following do these include? Select THREE

Options:

A.

sorting

B.

sustaining

C.

shining

D.

selling

E.

selecting

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Exam Code: L5M9
Exam Name: Operations Management
Last Update: Nov 14, 2026
Questions: 120
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