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CIPS Operations Management Sample Questions (Q16-Q21):
NEW QUESTION # 16
Companies that have high-visibility processes require higher levels of customer management skills than companies with low-visibility processes. Is this TRUE?
- A. yes- high visibility companies often have lower operating costs because of this
- B. yes- high visibility companies often have higher operating costs because of this
- C. no- all companies require customer management skills
- D. no- low visibility companies must focus on increasing levels of customer service
Answer: B
Explanation:
Firstly, the sentence is true, so you can discount options 3 and 4. A high-visibility company is one where customers see the operating process. Examples include education- students sit in the classroom so see the teaching process, and the postal service, where customers receive notifications of when parcels will be delivered. Low-visibility means the customer doesn't see the operating process, so an example of this would be agriculture or manufacturingcustomers just see the end result. Where customers see the process, companies require higher levels of customer management skills. Between options 1 and 2, 1 is correct - this is a direct quote from p.50. Where you have highvisibility, you will likely need to employ more staff, deal with customers on the phone/ in person and companies will probably have more complaints- all of which cost money.
NEW QUESTION # 17
Managing Events and Relationships is a key application of Operations Management in which sector?
- A. retail
- B. manufacturing
- C. finance
- D. agriculture
Answer: A
Explanation:
The correct answer is retail. Retail stores will often do promotions for different items at different times of the year (e.g. Trees at Christmas, Chocolate Eggs at Easter, BBQs in the summer). The other sectors listed do not do events in the same way or to the same extent (if at all). See p.63 for more on Operations in the Retail sector.
NEW QUESTION # 18
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.
Which of the following will you put into box 8?
- A. finance criteria
- B. learning and growth criteria
- C. business process criteria
- D. customer criteria
Answer: B
Explanation:
NEW QUESTION # 19
Which of the following situations would use a fixed-position layout?
- A. ship construction
- B. supermarket
- C. vehicle assembly
- D. buffet style restaurant
Answer: A
Explanation:
Ship construction would used a fixed-position layout. This is when you're making something that is too big/ heavy to pass through a traditional factory / conveyor belt set up. So rather than the item passing to different teams/ departments, each team / department comes to the item when it is their time to work on it. In the other examples the item (vehicle, food in the supermarket or buffet) the products get moved around- the ship is the only item that remains where it is. This question is based on the 4 types of Plant Layout on p.17. This could form part of a drag and drop question too.
NEW QUESTION # 20
In order to keep processing costs down, which of the following should a company opt for in terms of operating processes?
- A. low variation, high visibility
- B. high variation, low visibility
- C. low volume, high variety
- D. high volume, low variety
Answer: D
Explanation:
2 is the correct response. This is the only response where both characteristics given keeps costs down. High volume means a lower unit cost and higher profits. Low variety keeps costs down as you don't need to produce many different products. In the other three options high variety, high variation and high visibility all lead to increased costs. P. 50
NEW QUESTION # 21
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