MODEL QUESTION PAPER - OPERATIONS MANAGEMENT

SEC A
1.____ refers to the increasing integration of economic activity around the world, evidenced in the growth
in international trade and the increasing interdependence of national economies.
a. Internationalization
b. Nationalization
c. Globalization
d. Expansion

2.The start of the Ohmae stage model is

a. Establishment of a sales subsidiary
b. Complete insiderization
c. Establishment of foreign production
d. Export via agents

3.In a complex supply network, most links are

a. C2B
b. B2C
c. B2B
d. C2C

4.What are main reasons for offshoring?

a. Culture differences and costs saving
b. Higher quality and culture differences
c. Faster response and costs saving
d. Faster response and culture differences

5.Why do some offshore call centers require employees to answer the phone with Chip from Chicago
instead of Akbar from New Delhi.?
a. To save costs
b. To increase the price
c. To minimize cultural bias
d. To change the organization structure
 6.What is a typical offshore managerial concern?
a. Scale
b. High costs
c. High turnover
d. All of the above

7.____ factories are established to innovate and create new processes, products and technologies.
a. Lead
b. Offshore
c. Outpost
d. Source

8.Which of the following is not an advantage of global offshoring and outsourcing?

a. Lower retraining costs
b. Lower total cost of goods and services
c. New business from markets where jobs reside
d. 24/7 customer care and service

9.Which of the following is false?

a. Transportation is more complex in global value chains
b. The transportation infrastructure may vary considerably in foreign countries
c. Global purchasing can be an easy process to manage when sources of supply, regional economies
and even governments change
d. International purchasing can lead to disputes and legal challenges relating to such things as price
fixing and quality defects

10.A focused factory can focus on all the following except

a. A few key products
b. Specific technology
c. A certain process design and capability
d. Diverse competitive priority objectives
11. Of those listed, which is the strongest motivating factor for deciding to franchise?
a. Ability to influence behaviour
b. Need for rapid financial growth
c. Desire to control service delivery
d. Ease of procedure and product modification

12.Which one of the following is not a generic configuration for international operations?
a. Direct export
b. Multi-domestic operations
c. Regional operations
d. Global co-ordinated operations

13.A ____ is one in which operations are internationalized in order to access and serve markets outside
of the home country.
a. Market access strategy
b. Resource seeking strategy
c. Off-shoring
d. Economies of scale

14.____ are reductions in unit cost of output due to increasing production volumes.
a. Global networks
b. Focused operations
c. Economies of scope
d. Economies of scale

15.The O in the acronym BPO stands for

a. Outpost
b. Outsourcing
c. Offshoring
d. Office

16. ____ are reductions in unit costs available from increasing the number of products produced.
a. Global networks
b. Focused operations
c. Economies of scope
d. Economies of scale

17.Mass customization is associated with

a. Postponement
b. Modularization
c. Push-pull boundaries
d. All of the above

18.Each of the following is associated with focused operations except

a. Facilities assigned to a single task
b. Plant within a plant
c. Dell
d. Autonomous units

19.A ____ layout is an arrangement based on the sequence of operations that are performed during
the manufacturing of a good or the delivery of a service.
a. Group
b. Process
c. Product
d. Fixed position

20.Which one of the following fits better with a process focus?

a. Skilled workers
b. Standardization
c. Specialized equipment
d. Little work-in-process inventories

SEC B
1.Which of the following is not a major activity in designing a goods-producing or service-providing process?
a. Utilize creative destruction
b. Flow chart the current process
c. Flow chart future state
d. Define appropriate performance measures
 2.A serpentine line (one line feeding into several servers) used in banks and some fast food restaurants is an
example of
a. One or more parallel servers fed by a single queue
b. Several parallel servers fed by their own queue
c. A combination of several queues in servers
d. Littles Law

3.The location decision is both a ____ and ____ decision for many services.
a. Fundamental; frequent
b. Easy; frequent
c. Easy; infrequent
d. Fundamental; infrequent

4. Location decisions should consider all of the following except

a. Product cost
b. Access to markets
c. Access to labour skills
d. Local government tax incentives

5.Which of the following is not one of the steps used when determining site selection for a delivered service?
a. Mathematically represent a service area
b. Establish a service goal
c. Deterministic simulation
d. List potential sites and determine relationship of sites to demand

6. In an outsourcing decision, looking at only wage rate differences can be misleading because
a. Transportation costs are ignored
b. Higher training costs are ignored
c. Different tax rates are ignored
d. All of the above
 7.Diseconomies of scale are
a. Collections of resources brought together at one geographic location
b. Quantities of goods and services produced in a given location
c. Used to determine market accessibility
d. Increases in the unit cost of output that occur when production volumes increase too much

8. Factors such as mangers preferences, services and taxes, available transportation systems,
banking services and environmental impacts would be most closely related to which level of the facility
location hierarchy?
a. Global (National) location
b. Regional location
c. District or community location
d. Local site selection

9.The quantitative location model that seeks to determine a minimum-cost distribution plan that satisfies all
demands at warehouses while ensuring that shipments from manufacturing plants do not exceed the available
supplies is?
a. Scoring model
b. Center-of-gravity method
c. Transportation model
d. Network location model

10.When selecting a transportation service, the mode that is most accessible is

a. Rail
b. Truck
c. Air
d. Water

11.The three ways a facility can be focused are

a. Market, product, process
b. Customer, service, good
c. Operation, facility, network
d. Layout, location, aisle
 12.The strategic capabilities of an international network of facilities can derive from all but one of the following
a. Strategic targets accessibility
b. Thriftiness ability
c. Operations mobility
d. Teaching ability

13.Which facility types are missing from the following list: offshore, server, contributor and outpost?
a. Network and division
b. Scope and scale
c. Process and product
d. Source and lead

14.A measure of capacity that generally does not include adjustments for preventive maintenance or
unplanned downtime is called
a. Sustainable capacity
b. Effective capacity
c. Theoretical capacity
d. Safety capacity
SEC C

1. The D in the acronym QFD stands for

a. Development
b. Deployment
c. Design
d. Devolution

2.Regarding the first House of Quality, the interrelationship between any pair of technical features is found in
a. The voice of the customer
b. The relationship matrix
c. The roof
d. Technical requirement priorities

3.Which of the following is a chronological representation of stages within the NPD process?
a. Idea selection, preliminary design, testing, prototype
b. Testing, final design, preliminary design, prototype
c. Idea generation, idea selection, prototype, testing
d. Idea selection, prototype, testing, preliminary design

4.The NPD process ends with

a. Final design
b. Testing
c. Prototype
d. Idea selection

5. An approach to the reduction of complexity is

a. Polarity
b. Seasonality
c. Modularity
d. Simplicity

6.An approach to the reduction of complexity is

a. Standardization
b. Maximization
c. Rationalization
d. Polarization

7.____ is a systematic technique that seeks to identify the cause and effect of product failures.
a. FMEA
b. QFD
c. VE
d. RPN

8.The tools and techniques for NPD include all of the following except
a. DFM
b. PTMS
c. Taguchi
d. QFD