HAWASSA UNIVERSTY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTEMENT OF MANAGEMENT

OPERATIONS MANAGEMENT MODEL QUESTIONS

PREPARED BY AMANUEL SHIBRU(MBA)

CHOOSE THE BEST ANSWER FROM GIVEN ALTERNATIVES

Note: the alternative which is bolded or colored is answer

1. Marketing Strategist of Beza Water predicted in the next 6 Years the demand of Beza Water will
increase by 20% annually. But the current capability and availability of water supply may serve
only for the coming two year only. As per the recommendation of marketing strategist top
management of the firm purchase additional location around Wondo Genet Woreda where there
is huge water resource and meet the next 6 and more than years demand of customer. What kind
of Operations Management Decisions it is?
A. Strategic decision
B. Tactical decision
C. Operational planning and control decision
D. none programmed
Answer: A
2. Assume that you produce Wheat Floor. You use five resources to produce it. When you measure
productivity you use more than one resources but not all production input, what kind of
productivity measurement methods do you use?
A. Trend analysis
B. Total productivity
C. Multifactor productivity
D. Capital/labor ratio
Answer: C
3. Assume Beza Water Open Sales Shop in front of Hawassa University Awada Campus. The
sailing price of Beza Watar is cheap relative to competitive water. Which competitive advantage
helps you to differentiate Beza Water from others?
A. Delivery
B. Cost
C. Quality
D. Flexibility
Answer: B
4. In Ethiopia to open business organization, it is mandatory to have trade license. Which one is
shortly express the statement?
A. Order Winner
B. Order Development
C. Order qualifier
D. order monopoly

PREPARED BY: AMANUEL SHIBRU(MBA)

 Answer: C
5. Which of the following is the least likely decision to be made by Operations Managers?
A. Deciding which market areas to manufacture products for.
B. How to use quality techniques to reduce waste.
C. How much capacity is required to balance demand.
D. Selecting the location and layout of a facility
Answer: A
6. What is operations management?
A. What all managers do when they deal with day-to-day activities.
B. An organizational function which produces products and services
C. The process of satisfying the needs of internal and external customers.
D. The activity of producing products and services
Answer: D
7. Which of the following is/are not be advantages of Product Layout?
A. Fairly inflexible to changes in volume
B. High rate of output and Low unit cost
C. Labor specialization and Low material handling cost
D. High utilization of labor and equipment
Answer: A
8. Layout which is Suitable when one or a few pieces of identical heavy products are to be
manufactured implies ---
A. Process layout
B. Product layout
C. Fixed position layout
D. Combination Layout
Answer: C
9. Which of the is not be limitation of Process Layout
A. Higher utilization of production facilities
B. Material handling cannot be mechanized which adds to cost.
C. Lowered productivity due to number of set-ups.
D. Space and capital are tied up by work-in-process
Answer: A
10. The sequence of operations remains same with the variety of products and sizes implies
A. Combination Layout
B. Process layout
C. Product layout
D. Fixed position layout
Answer: A
11. one of the following types of service is Often difficult to mechanize and automate
A. Hair cut
B. Counseling and teaching
C. Medical diagnosis
D. Investment advice
Answer: A

PREPARED BY: AMANUEL SHIBRU(MBA)

 12. the operation’s ability to change its level of output or activity to produce different
quantities of products and services over time is called
A. Volume Flexibility
B. Mix Flexibility
C. Product/service flexibility
D. Delivery Flexibility
Answer: C
13. Strategies are formulated based on the ___ of the organization and the environment in
which it is carrying on the business.
A. Mission
B. Objectives
C. Vision
D. Goals
Answer: A
14. Productivity increases when
A. inputs increase while outputs remain the same
B. inputs decrease while outputs remain the same
C. outputs decrease while inputs remain the same
D. inputs and outputs increase proportionately
Answer: B
15. In model of decision making under different conditions, what is the difference between
risk and uncertainty?
A. Under risk, choices are clear and the chances of different outcomes can be measured;
under uncertainty, neither applies.
B. Under risk, probabilities can be measured; under uncertainty, they cannot.
C. Under risk, there is a well-defined problem; under uncertainty, the definition is unclear.
D. Under risk, information is reliable; under uncertainty, it is not.
Answer B
16. One of the following statements about organizational mission is false
A. It reflects company’s purpose
B. They indicate what a company intends to contribute for society
C. They are formulated after strategies are known
D. The define company’s reason for existence
Answer: C
17. Which one of the following statement best characterize delivery speed
A. A company that use airline, not trucks, to move its goods
B. A company that delivers frequently
C. A company that delivers faster than its competitors’
D. A company that always delivers on promised due date
Answer: C

PREPARED BY: AMANUEL SHIBRU(MBA)

 18. The multifactor productivity measure for an eight-hour day in which the usable output
was 300 units, produced by three workers who used 600 pounds of materials. Workers
have an hourly wage of $20, and material cost is $1 per pound. Overhead is 1.5 times
labor cost.
A. 0.671
B. 0.0191
C. 2.772
D. 1.77
Answer: B
19. _____________ focus on detecting and correcting error at production floor, distribution
center before reaching market
A. Strategic approach
B. Aesthetics
C. Quality Assurance
D. Safety
Answer: C
20. --- is a list of what end products are to be produced, how many of each product is to be
produced, and when the products are to be ready for shipment.
A. Master Production Schedule
B. Cumulative lead time
C. Bill of materials
D. Inventory records File
Answer: A
21. In which approach quality of product design improving by combining customer
specification with the cross functional team?
A. Benchmarking
B. Reverse Engineering
C. Quality Function Deployment
D. Product design
Answer: C
22. In ___________________ job sequencing, production calculating with shortest due date
first.
A. First come, first served
B. Shortest processing time
C. Earliest due date first
D. Critical ratio
Answer: C
23. Etab detergent company decided to produce more than 20,000 liter of liquid soap because
of winning of a bid to Ethiopia National Defense to the coming summer. Which
production scheduling the firm should used to meet the production properly?
A. Finite loading
B. Infinite loading
C. Forward loading
D. Backward loading

PREPARED BY: AMANUEL SHIBRU(MBA)

 Answer: A
24. _____________________ exists when a demand for a particular item is related to a
demand for other item.
A. Independent demand
B. Dependent demand
C. Materials requirements planning
D. Aggregate production planning
Answer: B
25. A mission statement is
A. an action plan
B. a set of goals
C. the decisions that must be made to achieve goals
D. the purpose of an organization
Answer: D
26. What type of process would a paper mill be most likely to use?
A. Continuous flow
B. Project
C. Job shop
D. Flow shop
Answer: A
27. When the flow of materials is variable,
A. layout by process is most suitable
B. layout by product is most suitable
C. layout by fixed position is most suitable
D. line balancing is most suitable
Answer: A
28. At the completion of the forward and backward passes, the slack for an activity is
given by the
A. difference between early start and early finish
B. difference between early start and latest finish
C. difference between latest start and early finish
D. amount of idle labor on the critical path
Answer: A
29. _ has become fundamental for an organization’s existence.
A. Customized product
B. Variability in product
C. Cost-effectiveness
D. Assurance of quality
Answer: D
30. ___ means the positioning of various types of equipment, pieces of machinery,
departments facilities to maximize productivity and space utilization.
A. Layout

PREPARED BY: AMANUEL SHIBRU(MBA)

 B. Blueprint
C. Portfolio
D. Process selection
Answer: A
31. Operations can be classified according to the degree of variation in demand and visibility
of the operation as well as their volume and variety of production. Which of the
following operations would be classified as high variation and high visibility?
A. A front office bank
B. A fast food restaurant
C. A family doctor
D. A carpenter
Answer: C

38. Which one of the following is an example of site related factors that affect location decision?
A. Transportation
B. Quality of life
C. Location of new markets
D. Location of raw materials
Answer: A

39. Regional factors for location planning include all of the following except:

A. Raw materials
B. Markets
C. Labor considerations
D. Attitudes
Answer: D

40. In which of the following approaches location decision is based on personal opinions and quantitative
information?

A. Factor rating
B. Market area plant strategy
C. Currency fluctuations
D. Product plant strategy
Answer: A
41. Which kind of production system is undertaken by JIT (Just In Time) production?
A. Intermittent processing
B. Job shop processing
C. Repetitive processing
D. Batch processing
Answer: C
42. Which of the following would not normally be considered a general characteristic of a service?
A. Production and consumption are simultaneous

PREPARED BY: AMANUEL SHIBRU(MBA)

 B. Low contact services can often be made more efficient than high contact services
C. Many services involve both tangible and intangible outputs
D. Production and sales cannot easily be separated functionally
Answer: D
43. Which of the following activities is NOT a direct responsibility of operations management?
A. Determining the exact mix of products and services that customers will want.
B. Designing the operation’s products, services and processes.
C. Developing an operations strategy for the operation.
D. Planning and controlling the operation
Answer: A
44. What are the input resources to any transformation process?
A. Information, materials and customers.
B. Staff, facilities, materials, information and customers.
C. Processes, people and parts.
D. People and machines
Answer: C
45. Operations can be classified according to their volume and variety of production as well as the degree
of variation and visibility. Which of the following operations would be classified as high volume, low
variety?
A. A fast food restaurant
B. A family doctor
C. A carpenter
D. A front office bank
Answer: A
46. Which of the following functions of an organization consists of all activities directly related to
production of a good or service?
A. Operations
B. Marketing
C. Accounting
D. Finance
Answer: A
47. Transformations are the operations that -----------inputs into output
A. Convert
B. Divert
C. Revert
D. Coordinate
E. Answer: A
48. Which one of the following is the correct order of layout types from low volume/high variety to high
volume/low variety?
A. Fixed position, process, cell, product
B. Fixed position, cell, process, product
C. Fixed position, process, product, cell
D. Process, fixed position, cell, product
Answer: D

PREPARED BY: AMANUEL SHIBRU(MBA)

49. Which of the following would NOT be normally considered as a key feature of Operations
Management?
A. Operations are the area of a business where most people work.
B. Most new technology is implemented in Operations areas.
C. World class Operations can give an organization competitive advantage.
D. Operations is the part of an organization which creates wealth through the
management of the transformation process
Answer: D
50. Which of the following functions is not a core function of an organization?
A. The product/service development function.
B. The operations function.
C. The marketing (including sales) function.
D. The accounting and finance function
Answer: A
51. Quality function deployment is largely focus on
A. To reduce the number of parts on products
B. Testing the strength of design
C. Ensuring that the eventual design of a product and service meets customer needs
D. Reducing costs and preventing unnecessary costs prior to production
Answer: C
52. Which one of the following facility layout is best suited for the intermittent type of
production
A. Product layout
B. Process layout
C. Fixed position layout
D. Cellular manufacturing layout
Answer: B
53. In which of the following layout type, materials are fed into first machine and finished
product come out last machine?
A. Fixed position layout
B. Cellular layout
C. process layout
D. product layout
Answer: D
54. One of the following capacity expansion timing strategies calls for expansion investments
only after confirmation of rises in demand in order to maintain high utilization rate.
A. Capacity lead strategy

PREPARED BY: AMANUEL SHIBRU(MBA)

 B. Capacity lag strategy
C. Capacity straddle strategy
D. capacity expansion strategies
Answer: B
55. The process of determine which job is started first on a particular machine or work center
is known as
A. Scheduling in manufacturing
B. Priority sequencing rules
C. Job shop scheduling
D. Scheduling system
Answer: B
56. Among aggregate production planning strategies, one of the following does not conduct
hiring or laying off workers except at the beginning of the planning horizon
A. Level strategy
B. Chase strategy
C. Mixed strategy
D. Design strategy
Answer:A
57. Greatest level of output that the firm can reasonably sustain by using realistic employee work
schedules and the equipment currently in place.
A. Effective Capacity
B. Design Capacity
C. peak capacity
D. Actual or Operating Capacity
Answer: A
58. is a manufacturing firm’s aggregate plan, which generally focuses on production rate and
inventory holdings
A. Production plan
B. Aggregate plan
C. Operations planning
D. Operations control
Answer: A

PREPARED BY: AMANUEL SHIBRU(MBA)

59. One of the following is not objectives of scheduling
A. To meet the due date
B. To minimize job lateness
C. To minimize wok-in-process inventory
D. To minimize resource utilization
Answer: D
60. Is an approach that brings many people together in the early phase of product design in order
to simultaneously design the product and the process?
A. Reverse engineering
B. group technology
C. Concurrent engineering
D. Benchmarking
Answer: C
61. Is a series of guidelines that we should follow to produce a product easily and profitably
A. Design simplification
B. Design standardization
C. Design for Manufacture
D. Design for robust
Answer: B
62. physical location where two or more identical work stations are located
A. work place
B. work station
C. work center
D. work situation
Answer: C
63. is the maximum time allowed for work on a unit at each work station
A. Operating time
B. Task length
C. Cycle time
D. Productive time per hour
Answer: C
64. one of the following cost of quality categorize under appraisal cost
A. cost of working with vendors

PREPARED BY: AMANUEL SHIBRU(MBA)

 B. cost of field testing
C. cost of extra attention in both the design and production
D. cost of handling complaints
Answer: B
65. one of the following is incorrectly matched regard with priority rules for sequencing jobs
A. First come, first served----------- the oldest first rule.
B. Shortest processing time---------- shortest operating time first.
C. Critical ratio------------------------- Orders with the greatest CR are run first.
D. Earliest due date---------------------- run the job with earliest due date first
Answer: C
66. is the total amount of time required to complete a group of job.
A. Utilization
B. Tardiness
C. Make span time
D. Job flow time
Answer: C
67. short-term scheduling activity called loading
A. specifies the order in which jobs should be done at each center
B. Assigns jobs to work centers.
C. assigns workers to jobs
D. assigns workers to machines
Answer: B
68. Assume you are Operations Manager for a high-end furniture manufacturer. Your marketing
department has introduced a line of custom, made-to-order products that vary in style and
will be sold in small quantities due to the high cost of the products. You decide to use this
type of facility layout for the production:
A. Cellular Layouts
B. Fixed-position layout.
C. Process layout
D. Product layout
Answer: C

PREPARED BY: AMANUEL SHIBRU(MBA)

69. strategy tries to keep abreast of growing demand by matching average capacity to average
demand
A. Capacity lag strategy
B. Capacity straddle strategy
C. Capacity lead strategy
D. Capacity Expansion timing strategies
Answer: B
70. having the ability to rapidly increase or decrease production levels, or to shift production
capacity quickly from one product or service to another is called
A. Capacity flexibility
B. Capacity utilization
C. Capacity efficiency
D. Capacity planning
Answer: A
71. If operated around the clock under ideal conditions, the fabrication department of an engine
manufacturer can make 100engines per day. Management believes that a maximum output
rate of only 45 engines per day can be sustained economically over a long period of time.
Currently, the department is producing 50 engines per day. What is the utilization of the
department related to designed capacity?
A. 45%
B. 60%
C. 50%
D. 60%
Answer: C
72. One of the following location options can be attractive if there is adequate room for desirable
features that are not readily available elsewhere.
A. Adding new location
B. Expanding an existing facility
C. Shutting down
D. Doing nothing
Answer: B
73. One of the following factors is not the basic factors that influence site selection.
A. Drainage and soil condition
B. Community facilities
C. Utilities
D. Land development cost
Answer: B
74. which one of the following layouts are widely used in metal fabricating, computer chip
manufacture, and assembly works
A. Cellular
B. Process
C. Product
D. Fixed position

PREPARED BY: AMANUEL SHIBRU(MBA)

 Answer: A
75. a physical location where a particular set of tasks is performed
A. Work station
B. Work center
C. Task length
D. Operating time
Answer: A
76. One of the following cost is associated with preventing defects before they happen
A. Information Costs
B. Cost of testing or inspecting incoming raw materials
C. Cost of product inspection
D. Cost of scrap or rejections.
Answer: A
77.Which one of the following is a disadvantage of a process layout?
A. A variety of processing requirements
B. Use of individual incentive system
C. Minimizing material handling costs
D. Equipment utilization rate is high
Answer: B
78.Which one of the following operating levels is best with respect to capacity?
A. The maximum point of the cost curve
B. The level of capacity for which average unit cost is minimized
C. The level of capacity for which average unit cost is maximized
D. The level of capacity for which total cost is minimized
Answer: B
79.Regional factors for location planning include all of the following except:
A. Raw materials
B. Markets
C. Labor considerations
D. Attitudes
Answer: D
80.What type of process would a Cement plant be most likely to use?
A. Continuous flow
B. Project
C. Job shop
D. Flow shop
Answer: A
81. Which of the following would not be an operations activity in a fast-food restaurant?
A. Advertising new salad dishes
B. Purchasing tomatoes
C. Planning the layout of the serving areas
D. Adding salt

PREPARED BY: AMANUEL SHIBRU(MBA)

 Answer: A
82. Which of the following is not a characteristic of service operations?
A. High customer contact
B. Intangible output
C. Easy measurement of productivity
D. High labor content
Answer:C
83. Which of the following terms best defines the nature of Total Quality Management?
A. An art
B. A philosophy
C. A science
D. A social activity
Answer: B
84. Which of these layouts is most suitable for processing sugar from sugar cane?
A. process-oriented layout
B. fixed-position layout
C. focused factory
D. product-oriented layout
Answer: A
85. All of the following are differences between manufacturing and service operations EXCEPT
A. Quality is more easily measured in service operations.
B. productivity is easier to measure in manufacturing operations
C. contact with customers is more prevalent with persons working in service operations
D. accumulation or decrease in inventory of finished products is more easily in
manufacturing operations
Answer: A
86. Which of the following is not an objective of operation management?
A. To improve product quality
B. To reduce cost of production
C. Material cost control
D. Trading on equity
Answer: D
87. Which of the following is NOT a process input?
A. Aircraft for an airline
B. Transported passengers for a train service
C. Information for the police
D. Sales staff for a department store
Answer: B
88. The initial decision whether a manufacturer fabricates in-house or uses an outside
supplier is known as
A. An Offshoring decision
B. A Make-or-Buy decision

PREPARED BY: AMANUEL SHIBRU(MBA)

 C. An Outsourcing decision
D. A Purchasing decision
Answer: B
89. Which of these layout types is most associated with a project process?
A. Fixed position layout
B. Process layout
C. Product layout
D. Cell layout
Answer: B
90. Which of the following is the first step in making a correct location choice?
A. Develop location alternatives
B. Decide the criteria for evaluating location alternatives
C. Evaluate the alternatives
D. Make a decision and select the location
Answer: A
91. Abe decides to only increase his firm's capacity when there's actual demand sufficient to
justify it. What strategy is he employing?
A. Demand strategy
B. Lag strategy
C. Lead strategy
D. Average strategy
Answer: A
92. Which of the following statement defines process re-design?
A. It is collecting information, identifying each step and finding inputs and outputs of
process
B. It is collecting information about cost reduction and improving the defects
C. It relates to asking questions about process flow and identifying missing or duplicating
activities
D. It relates with taking a fresh approach to solve an issue on hand
Answer: D
93. Forecasts
A. Become more accurate with longer time horizons.
B. Are rarely perfect.
C. Are more accurate for individual items than for groups of items.
D. are more accurate for new products than for existing products
Answer: B
94. Reasons to study Operations Management include
A. studying why people organize themselves for free enterprise
B. knowing how goods and services are consumed
C. understanding what human resource managers do
D. learning about a costly part of the enterprise
Answer: D

PREPARED BY: AMANUEL SHIBRU(MBA)

95. An operations manager is not likely to be involved in

A. the design of goods and services to satisfy customers' wants and needs
B. the quality of goods and services to satisfy customers' wants and needs
C. the identification of customers' wants and needs
D. work scheduling to meet the due dates promised to customers
Answer: C
96. Which is not true regarding differences between goods and services?
A. Services are generally produced and consumed simultaneously; tangible goods are not.
B. Services tend to be more knowledge-based than products.
C. Services tend to have a more inconsistent product definition than goods.
D. Goods tend to have higher customer interaction than services.
Answer: D
97. According to the authors, which of the following strategic concepts allow firms to achieve
their missions?
A. productivity, efficiency, and quality leadership
B. differentiation, cost leadership, and quick response
C. differentiation, quality leadership, and quick response
D. differentiation, distinctive competency, quality leadership, and capacity
Answer: C
98. The ability of an organization to produce goods or services that have some uniqueness in
their characteristics is
A. Time-based competition
B. Competing on productivity
C. Competing on flexibility
D. Competing on differentiation
Answer: C
99. A strategy is
A. Set of opportunities in the marketplace
B. Broad statement of purpose
C. Simulation used to test various product line options
D. An action plan to achieve the mission
Answer: D
100. Which of the following is an example of competing on the basis of differentiation?
A. A firm manufactures its product with less raw material waste than its competitors do. b
B. A firm's products are introduced into the market faster than its competitors’ products are.
C. A firm's distribution network routinely delivers its product on time.
D. A firm offers more reliable products than its competitors do
Answer: D
101. Which of the following is the best example of competing on low-cost leadership?
A. A firm produces its product with less raw material waste than its competitors.

PREPARED BY: AMANUEL SHIBRU(MBA)

 B. A firm offers more reliable products than its competitors.
C. A firm's products are introduced into the market faster than its competitors’ products.
D. A firm's research and development department generates many ideas for new products
Answer: A
102. Which of the following is an example of competing on quick response?
A. A firm produces its product with less raw material waste than its competitors.
B. A firm offers more reliable products than its competitors.
C. A firm's products are introduced into the market faster than its competitors’
products.
D. A firm's research and development department generates many ideas for new products.
Answer: C
103. In assembly line balancing, cycle time (the ratio of available production time to
scheduled production) is the
A. Minimum time that a product is allowed at each workstation
B. Maximum time that a product is allowed at each workstation
C. Optimum time that a product is allowed at each workstation
D. Desired cycle time that a product is allowed at each workstation
Answer: B
104. In the make-or-buy decision, which of the following is not a reason for buying?
A. Inadequate capacity
B. To obtain desired quality
C. Patents or trade secrets
D. Lower inventory costs
Answer: B
105. Which of these Managers would be least likely to be considered in an operations management
role within an organization?
A. Production Manager
B. Reservations Manager
C. Financial Risk Manager
D. Quality Manager
Answer: C
106. ___________is a standardized layout arranged according to a fixed sequence of assembly tasks
A. Assembly line
B. Quantitative technique
C. Focus group
D. Fixed Position
Answer: D
107. Which of the following statement defines process re-design?
A. It is collecting information, identifying each step and finding inputs and outputs of process
B. It is collecting information about cost reduction and improving the defects
C. It relates to asking questions about process flow and identifying missing or duplicating activities
D. It relates with taking a fresh approach to solve an issue on hand

PREPARED BY: AMANUEL SHIBRU(MBA)

 Answer: D
108. Which of the following terms reflects Japanese view of continuous improvement?
A. Kaizen
B. Poka-yoke
C. Six sigma
D. Control limits
Answer: A
109. A product performing consistently refers to which of the following dimensions of quality:
A. Safety
B. Conformance
C. Durability
D. Reliability
Answer: D
110. reducing the number of parts and features of the product whenever possible is called
A. Design simplification
B. Design standardization
C. Concurrent Engineering
D. Robust design
Answer: A
111. types of operations production which is used to produce many different products with
varying processing requirements in lower volume
A. Intermittent
B. continuous
C. line
D. batch
Answer: A
112. Which of the following best describes strategic planning?
A. Time horizon: Long-term Level of detail: Summarized Source: Mainly internal
B. Level of detail: Summarized Source: Mainly external Degree of certainty: Certain
C. Time horizon: Long-term Level of detail: Summarized Degree of certainty: Uncertain
D. Time horizon: Long-term Level of detail: Highly detailed Source: Mainly external
Answer: C
113. Which of the following policies is advisable in case of low product variety and large volumes?
A. Skilled labor, special purpose machines
B. Low skilled labor, general purpose machine
C. Low Skilled Labor, Special Purpose Machines
D. Low skilled and highly educated

Answer: C

114. W' in SWOT stands for

A. What do you do well?
B. What could you improve?

PREPARED BY: AMANUEL SHIBRU(MBA)

 C. What doors are open to you?
D. What threats could harm you

Answer: B
115. In a materials processing operation, the effective capacity of a machine is defined as
_________________?
A. the minimum output per given time
B. The aggregate annual output.
C. The theoretical maximum output in a given time.
D. The most likely output in a given time.
Answer: C
116. Adjusting inputs to an operation so that outputs match demand is known as
A. A level capacity strategy
B. A demand management strategy
C. A chase demand strategy
D. A yield management strategy
Answer: A
117. is concerned with setting broad policies and plans for using the resources of the firm to best
support the firm’s long-term competitive strategy.
A. Operations strategy
B. Operations competitiveness
C. Corporate strategy
D. Business strategy
Answer: A
118. the ability to accelerate or decelerate the rate of production quickly to handle fluctuations
and demand
A. Volume flexibility
B. Customization
C. On time delivery
D. Development speed
Answer: A
119. elapsed time between receiving a customer order and filling it
A. On time delivery
B. Development speed
C. Fast delivery time
D. Delivery speed
Answer: C
120. ----- can be defined as the minimum elements or characteristics that a firm or its products
must have to even be considered as a potential supplier or source.
A. Order qualifier
B. Order Winner
C. Volume flexibility
D. Strategies
Answer: A

PREPARED BY: AMANUEL SHIBRU(MBA)

121. Defines a product’s characteristics, such as its appearance, the materials it is made of,
its dimensions and tolerances, and its performance standards.
A. Service design
B. Product design
C. New Product development
D. product customization
Answer: B
122. process will help the company to determine the important characteristics of the product to
the customer and to evaluate the company's product with others
A. Value Engineering
B. Quality Function Deployment
C. Design for Manufacture
D. Reverse engineering
Answer: B
123. ----- means reducing the number of parts and features of the product whenever possible.
A. Design for Manufacture
B. Design standardization
C. Design simplification
D. Concurrent Engineering
Answer: C
124. are used to produce many different products with varying processing requirements in
lower volumes
A. Intermittent Operations
B. product standardization
C. batch processes
D. continuous operations
Answer: A
125. One of the following types of processes are designed to produce a large volume of a
standardized product for mass production.
A. Continuous processes
B. Line processes
C. Batch processes
D. Project processes
Answer: A
126. the ability to rapidly increase or decrease production levels, or to shift production
capacity quickly from one product or service to another
A. Flexible plants
B. Flexible process
C. Flexible workers
D. Capacity flexibility
Answer: B

PREPARED BY: AMANUEL SHIBRU(MBA)

127. Which of the following is the first step in making a correct location choice?
A. Develop location alternatives
B. Decide the criteria for evaluating location alternatives
C. Evaluate the alternatives
D. Make a decision and select the location
Answer: B
128. Which of the following does not cause to production delay?
A. Shortage of space
B. Long distance movement of materials
C. Spoiled work
D. Minimum material handling
Answer: D
129. Which of the following facility layout is best suited for the intermittent type of production, which is
a method of manufacturing several different products using the same production line?
A. Product layout
B. Process layout
C. Fixed position layout
D. Cellular manufacturing layout
Answer: B
130. The following type of layout is preferred to manufacture a standard product in large quantity?
A. Product layout
B. Process layout
C. Fixed position layout
D. Combination layout
Answer: A
131. The following type of layout is preferred for low volume production of non standard products
A. Product layout
B. Process layout
C. Fixed position layout
D. Combination layout
Answer: B
132. In ship manufacturing, the type of layout preferred is
A. Product layout
B. Process layout
C. Fixed position layout
D. Combination layout
E.Answer: C
133. Which of the following is not among the ethical and social challenges facing operations
managers?
A. honoring community commitments
B. maintaining a clean environment
C. efficiently developing and producing safe quality products
D. increasing executive pay
Answer: D
134. The service sector has lower productivity improvements than the manufacturing sector because.
A. the service sector uses less skilled labor than manufacturing
B. the quality of output is lower in services than manufacturing
C. services usually are labor-intensive
D. Service sector productivity is hard to measure

PREPARED BY: AMANUEL SHIBRU(MBA)

 Answer: C
135. Three commonly used productivity variables are
A. quality, external elements, and precise units of measure
B. labor, capital, and management
C. technology, raw materials, and labor
D. quality, efficiency, and low cost
Answer: B
136. A foundry produces circular utility access hatches (manhole covers). If 120 covers are produced
ina 10-hour shift, the productivity of the line is
A. 1.2 covers/hr
B. 2 covers/hr
C. 12 covers/hr
D. 1200 covers/hre.
Answer: C
137. Which of the following is not a typical service attribute?
A. intangible product
B. easy to store
C. customer interaction is high
D. simultaneous production and consumption
Answer: B
138. The total of all outputs produced by the transformation process divided by the total of the inputs
is
A. Utilization
B. Greater in manufacturing than in services
C. Defined only for manufacturing firms
D. Multifactor productivity
Answer: D
139. An operations task performed at XYZ Café is should be
A. borrowing funds to build a new restaurant
B. advertising changes in the restaurant menu
C. calculating restaurant profit and loss
D. preparing employee schedules
Answer: D
140. Operations management is applicable
A. Mostly to the service sector
B. To services exclusively
C. Mostly to the manufacturing sector
D. To all firms, whether manufacturing and service
Answer: D
141. Which of the following are the primary functions of all organizations?
A. Operations, marketing, and human resources
B. Marketing, human resources, and finance/accounting
C. Sales, quality control, and operations
D. Marketing, operations, and finance
Answer: D
142. Budgeting, paying the bills, and collection of funds are activities associated with the
A. Management function
B. Control function
C. Finance/accounting function

PREPARED BY: AMANUEL SHIBRU(MBA)

 D. Production/operations function
Answer: C
143. Which of the following would not be an operations function in a fast-food restaurant?
A. advertising and promotion
B. designing the layout of the facility
C. maintaining equipment
D. purchasing ingredient
Answer: A
144. An operations manager is not likely to be involved in
A. the design of goods and services to satisfy customers' wants and needs
B. The quality of goods and services to satisfy customers' wants and needs
C. The identification of customers' wants and needs
D. Work scheduling to meet the due dates promised to customers
Answer: C
145. Which of the following is not one of The Ten Critical Decisions of Operations Management?
A. Layout strategy
B. Maintenance
C. Process and capacity design
D. Mass customization
Answer: D
146. Which of the following statements is true?
A. Almost all services and almost all goods are a mixture of a service and a tangible product.
B. A pure good has no tangible product component.
C. A pure service has only a tangible product component.
D. There is no such thing as a pure good
Answer: A
147. Typical differences between goods and services do not include
A. Cost per unit
B. Ability to inventory items
C. Timing of production and consumption
D. Customer interaction
Answer: A
148. Which is not true regarding differences between goods and services?
A. Services are generally produced and consumed simultaneously; tangible goods are not.
B. Services tend to be more knowledge-based than products.
C. Services tend to have a more inconsistent product definition than goods.
D. Goods tend to have higher customer interaction than services.
Answer: D
149. Which of the following is not a typical attribute of goods?
A. Output can be inventoried
B. Often easy to automate
C. Aspects of quality difficult to measured.
D. Output can be resold
Answer: C
150. Which of the following services is least likely to be unique, i.e., customized to a particular
individual's needs?
A. Dental care
B. Hairdressing
C. Legal services

PREPARED BY: AMANUEL SHIBRU(MBA)

 D. Elementary education
Answer: D
151. The ABC plant works two 8-hour shifts each day. In the past, 500 cypress packing boxes were
produced by the end of each day. The use of new technology has enabled them to increase
productivity by 30%. Productivity is now approximately
A. 32.5 boxes/hr
B. 40.6 boxes/hr
C. 62.5 boxes/hr
D. 81.25 boxes/hr
Answer: A
152. Defined as the function of specifying the work activities of an individual or group in an
organizational setting.
A. Job design
B. job enrichment
C. job specification
D. job measurement
Answer: A
153. one of dimension of service involves politeness, respect, consideration, and friendliness of
contact personal
A. Courtesy
B. Consistency
C. Completeness
D. Accuracy
Answer: A
154. is the elapsed time between receiving a customer order and filling it
A. On time delivery
B. Fast delivery time
C. Development speed
D. Customization
Answer: B
155. Way of using competitors’ ideas is to buy a competitor’s new product and study its
design features.
A. Reverse Engineering
B. Benchmarking
C. Quality Function Deployment
D. Value Engineering
Answer: A
156. reducing the number of parts and features of the product whenever possible is called
A. Design simplification
B. Design standardization
C. Concurrent Engineering
D. Design for Manufacture

PREPARED BY: AMANUEL SHIBRU(MBA)

 Answer: A
157. an approach when a firm begins product development with a market opportunity and
when uses whatever available technologies are required to satisfy the market need.
A. Market pull View
B. Inter functional view
C. Technology push view
D. Product design
Answer: A
158. one of the following statement is true about batch process
A. are used to make one-at-a-time products exactly to customer specifications
B. These processes are used when there is high customization and low product volume
C. With batch processes the customer is usually involved in deciding on the design of the
product.
D. in these process, the volumes of each product produced are still small and there can
still be a high degree of customization
Answer: D
159. one of the following is false statement
A. Batch processes are designed to produce a large volume of a standardized product
for mass production.
B. The products produced by continuous processes are usually in continual rather than
discrete units,
C. Continuous operations are used to produce one or a few standardized products in high
volume
D. Intermittent operations are used to produce many different products with varying
processing requirements in lower volumes
Answer: A
160. fitness for intended use is implies
A. Quality management
B. Total quality management
C. Quality
D. Service satisfaction
Answer: C
161. Prevention costs are costs associated with preventing defects before they happen.one of
the following is cannot included in prevention cost
A. Cost of providing quality engineering,
B. Information Costs
C. The cost of redesigning the process to remove the cause of poor quality.
D. Cost of testing or inspecting incoming raw materials
Answer: D
162. ----- refers to the amount by which completion time exceeds the due date of a job.
A. Utilization
B. Tardiness
C. Make span time
D. Job flow time
Answer: B

PREPARED BY: AMANUEL SHIBRU(MBA)

163. One of the following is false about Scheduling in manufacturing
A. Scheduling is challenging if the task variety is high.
B. Scheduling in manufacturing is the process of assigning priorities to manufacturing
orders and allocating workloads to a specific work centers.
C. Sequencing is difficult if work centers are lightly loaded and need the same
processing time.
D. To minimize the waiting and idle time, we must prioritize the tasks by using priority
rules.
Answer: C
164. one of the following is not Objectives of scheduling
A. To meet the due date
B. To minimize job lateness
C. To maximize wok-in-process inventory
D. To maximize resource utilization
Answer: C
165. one of the following is true about Finite loading
A. is loading activity without regard to capacity
B. is loading activities with regard to capacity
C. occurs when work is assigned to a work center simply based on what is needed over time
D. It is simply the process of assigning work to individual workers or machine.
Answer: B
166. ----is the analysis and comparisons of items to group them into families with similar
characteristics.
A. Group technology
B. Line balancing
C. Job design
D. Layout
Answer: A
167. A health-check clinic has five employees and ‘processes’ 200 patients per week. Each employee
works 35 hours per week. The clinic’s total wage bill is £3,900 and its total overhead expenses are
£2,000 per week. What are the clinic’s single-factor labor productivity and its multi-factor
productivity respectively?
A. 1.143 & .0339
B. 1.897& 0.933
C. 0.412 &0.39786

PREPARED BY: AMANUEL SHIBRU(MBA)

 D. 0.339&1.143
Answer: A
168. Among Hayes and Wheelwright’s four stages models of operations contribution.one of the
following is the very poorest level of contribution by the operations function.
A. Externally neutrality
B. Internally supportive
C. Internal neutrality
D. Externally supportive.
Answer: C
169. The purpose of back ward loading is
A. To determine the approximate completion date of each job and the capacity required in
each time period.
B. To calculate the capacity required in each work center for each time period.
C. To assign a work center simply based on what is needed over time.
D. To determine exactly what will be done by each resource at every moment during the
working day.
Answer: B
170. Shortest processing time means
A. The oldest first rule.
B. Earliest due date first.
C. Shortest operating time first.
D. Is calculated as the difference between the due date and the current date divided by the
work remaining.
Answer: C
171. the processes of determining the starting and completion times to jobs is called
A. Operations scheduling
B. Scheduling
C. Sequencing
D. Loading
Answer: B
172. One of the following dimensions of product quality indicates how a product looks, feels,
sounds, smells, or tastes.
A. Conformance

PREPARED BY: AMANUEL SHIBRU(MBA)

 B. Performance
C. Aesthetics
D. Durability
Answer: C
173. One of the following is not dimension of service quality.
A. Consistency
B. Courtesy
C. Completeness
D. Features
Answer: D
174. a cost of quality relate to inspection, testing, and other activities intended to uncover defective
products or services, or to assure that there are no defectives is
A. Prevention Costs:
B. Appraisal Costs
C. Failure costs
D. Costs of Quality
Answer: B
175. Regional Factors that Affect Location Decisions include all of the following except
A. location of raw materials
B. location of markets:
C. labor factors
D. room for future expansion
Answer: D
176. LINE BALANCING
A. Is a procedure that can be used to optimize the assignment of tasks to work centers.
B. Is the spatial arrangement of physical resources used to create the product.
C. Is a type of layout in which machines are grouped into what is referred to as a cell.
D. Is the process of identifying the best geographic location for a service or production
facility.
Answer: A
177. the amount of time required to complete a single task is called
A. Task
B. Cycle time
C. Operating time
D. Task length
Answer: D

PREPARED BY: AMANUEL SHIBRU(MBA)

178. the process of defining all the features and characteristics of just about anything
you can think of.
A. Product design
B. Product Development
C. Prototype Testing
D. idea Generation
Answer: A
179. how well the product quality performance and costs confirm to the design objectives
implies
A. Market feasibility:
B. Financial (economic) feasibility
C. Technical feasibility
D. Preliminary feasibility
Answer: B
180. one of the following is not main objectives prototype testing
A. To verifying marketing and technical performance.
B. The purpose of a test market is to gather quantitative data on customer acceptance of the
new product.
C. Testing is important in uncovering any problems and correcting them prior to full scale
production.
D. It helps to determines if changes are needed & refine forecasts; handled by
marketing
Answer: D
181. ---- refers to a design activity that reduce variety amount a group of product or parts.
A. Standardization
B. Specifications
C. Simplifications
D. Design for Manufacturability
Answer: A
182. One of the following is not Advantages of Standardization
A. Design costs are generally lower
B. Increased training costs and time
C. Opportunities for long production runs and automation
D. Fewer parts to deal with in inventory & manufacturing
Answer: B
183. one of the following is not true about value analysis and value engineering

PREPARED BY: AMANUEL SHIBRU(MBA)

 A. The basic objective of them is to achieve equivalent or better performance at a lower cost
while maintaining all functions and quality requirements.
B. Value analysis and value engineering treated as a mere cost reduction
techniques or cheapening of the product.
C. They largely focus on identifying and eliminating hidden, invisible, and unnecessary
cost.
D. The term value analysis and value engineering are used almost interchangeably but
they are not identical.
Answer: B
184. The elements of TQM that involves identifying companies or other organizations that are the best
at something and studying how they do it to learn how to improve your operation.
A. Continual Improvement
B. Employee Empowerment
C. Team Approach
D. Competitive Benchmarking
Answer: D
185. technique for classifying problem areas according to degree of importance, and focusing
on the most important
A. Control Chart
B. Cause-and-Effect Diagram
C. Pareto Analysis
D. Scatter Diagram
Answer: C
186. a fact-finding tool used to collect data about quality problems
A. Histogram
B. Flowchart
C. Check Sheets
D. Control Chart
Answer: C
187. the TQM approaches describe as following except
A. Find out what customers want
B. Design a product or service that will meet or exceed what customer want
C. Never stop trying to improve.

PREPARED BY: AMANUEL SHIBRU(MBA)

 D. Involves meeting beyond customer expectations.
Answer: D
188. one of the following is not characteristics of batch process
A. Skilled labor in specific trades
B. Flexibility of production schedules
C. Continuous flow of material
D. General purpose machines and process type of layout
Answer: C
189. The Primary input for hospitals is
A. Patients
B. nurses medical and supplies
C. Health care
D. Healthy individuals
Answer: A
190. one of the following quantitative approaches to problem solving is used under uncertainity

A. Algebra and Breakeven analysis

B. Statistical analysis -

C. Game theory
D. Cost benefit analysis
Answer: C
191. A situation in which a decision maker knows all of the possible outcomes of a decision
and also knows the probability associated with each outcome is referred to as
A. Uncertainty
B. Certainty
C. Risk
D. Strategies
Answer: C
192. A manager has developed a payoff list that indicates the profits associated with a set of al
ternatives under two possible states of nature: Alternatives (A, B and C); State of Nature 1 (
A = $10,000 ; B = $2,000; C = $8,000) ; State of Nature 2 ( A = $2,000; B = $8,000; C = $5,
000) If the manager uses maximin as the decision criterion, which of the alternatives should
be Chosen?

PREPARED BY: AMANUEL SHIBRU(MBA)

 A. Alternative B
B. Alternative C
C. Alternative A
D. Either alternative A OR B
Answer: B
193. A company that produces fruits and vegetable is able to produce 400 cases of canned peaches in
one half hour with two workers. What is labor productivity?
A. 400 cases per hour
B. 340 cases per hour
C. 300 cases per hour
D. 410 cases per hour
Answer: A
194. A wrapping paper Company produced 2000 rolls of paper one day at a standard price of Br. 1 per
roll. Labor cost was Br. 160, material cost was Br. 50, and overhead was Br. 320. Determine the
multifactor productivity.
A. 3.77
B. 4.77
C. 5.77
D. 7.77
Answer: A
195. The ability of a product to perform as expected under normal conditions with out excessive
frequency of failure.
A. Reproducibility
B. Reliability
C. Maintainability
D. Functionality
Answer: B
196. Standardization is
A. A systematic organizational effort to reduce the costs of materials and purchased parts for
producing a product, without sacrificing aesthetic or functional requirements.
B. a means of achieve lower production and assembly costs through reducing variety.
C. The elimination of the complex features of a product so that the intended function is performed
but with reduced costs, higher quality and more custom satisfaction.
D. The proliferation of product designs or an increase in the types, qualities, sizes, and colors of a
particular product.
Answer: B
197. ------- refers to the ability of the production system to quickly change from producing one product
to producing another
A. Product flexibility
B. volume flexibility.
C. Automation

PREPARED BY: AMANUEL SHIBRU(MBA)

 D. Speed flexibility
Answer: A
198. ------Refers to production of discrete parts moving from workstation to workstation at a
controlled rate, following the sequence steps needed to build the product.
A. Assembly line process
B. Continues process
C. Intermittent Processing
D. Batch Processing
Answer: A
199. One of the following is not true about service design
A. Products are generally tangible; service is generally intangible.
B. Services are often produced and received at the same time.
C. Service can be inventoried.
D. Some services have low barriers to entry and exit
Answer: C

PREPARED BY: AMANUEL SHIBRU(MBA)

PREPARED BY: AMANUEL SHIBRU(MBA)
PREPARED BY: AMANUEL SHIBRU(MBA)
PREPARED BY: AMANUEL SHIBRU(MBA)
PREPARED BY: AMANUEL SHIBRU(MBA)