Operations Management Quiz
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Questions and Answers

What is a primary focus of operational strategy?

  • Day-to-day operational activities (correct)
  • Market expansion tactics
  • Long-term corporate goals
  • Financial forecasting
  • How is productivity defined according to the content?

  • The total output of a firm regardless of input costs
  • The volume of sales generated per employee
  • The cost incurred to produce goods or services
  • The measure of effective use of resources expressed as output to input ratio (correct)
  • Which of the following best describes quality-based strategies?

  • Strategies focused on maintaining high quality across all phases of an organization (correct)
  • Strategies that prioritize cost-cutting measures
  • Strategies that emphasize employee satisfaction over customer satisfaction
  • Strategies aimed at increasing the speed of service delivery
  • What does a time-based strategy primarily focus on?

    <p>Reduction of the time needed to accomplish tasks</p> Signup and view all the answers

    Which statement is true regarding productivity?

    <p>Productivity is usually expressed as the ratio of output to input.</p> Signup and view all the answers

    What was the initial labor productivity of the factory producing units?

    <p>62.5 units per hour</p> Signup and view all the answers

    Which machine is underperforming based on the widget production rates?

    <p>Machine B</p> Signup and view all the answers

    What is the current material productivity of the bakery using 100 kg of flour?

    <p>10.5 loaves per kg</p> Signup and view all the answers

    How much energy would the manufacturing unit save if it optimizes its machines by saving 500 kWh?

    <p>4,500 kWh</p> Signup and view all the answers

    What would be the new Multi-Factor Productivity if costs rise by Php 5,000 without increasing output?

    <p>Php 20 per unit</p> Signup and view all the answers

    What is the primary role of operations management?

    <p>To transform inputs into goods and services that add value</p> Signup and view all the answers

    Which of the following is NOT a characteristic of a macro operation?

    <p>It includes detailed transformation activities</p> Signup and view all the answers

    What significant contribution to operations management is attributed to Henry Ford?

    <p>Assembly line manufacturing process</p> Signup and view all the answers

    In the context of operations management, which input transformation is often less obvious?

    <p>Transforming ill patients into healthy patients</p> Signup and view all the answers

    Which management position is typically found at the top of an operations department?

    <p>Director of Operations</p> Signup and view all the answers

    Which of the following best describes a transformation process?

    <p>Activities that change inputs to output while adding value</p> Signup and view all the answers

    What is the formula for calculating labor productivity?

    <p>Outputs / Total Labor Hours</p> Signup and view all the answers

    Which operation would be considered a micro operation in a brewery?

    <p>Filtering the beer to remove spent yeast</p> Signup and view all the answers

    How many jars of jam does one worker produce per hour if five workers produce 420 jars in an 8-hour day?

    <p>10.5 jars per worker/hour</p> Signup and view all the answers

    If a company produces 400 cases of canned peaches with four workers in half an hour, what is the labor productivity?

    <p>200 cases per labor/hour</p> Signup and view all the answers

    Which of the following is an important aspect of understanding competitiveness in operations?

    <p>Management of resource utilization and employee satisfaction</p> Signup and view all the answers

    What is the multifactor productivity of a wrapping-paper company that made 2,000 rolls with a labor cost of P 160, material cost of P 50, and overhead of P 320?

    <p>3.77 rolls per peso output</p> Signup and view all the answers

    If Billco Windows and Doors produced 1,800 units with labor hours totaling 1,975, what is the labor productivity?

    <p>1.14 units per labor hour</p> Signup and view all the answers

    What factors are included in the calculation of multifactor productivity?

    <p>Labor, materials, and overhead</p> Signup and view all the answers

    What is the labor productivity rate for a company that produces 68 pieces in 2 hours?

    <p>34 pieces/hour</p> Signup and view all the answers

    What is the average labor rate given that the average cost is Php 18.00 and 1,800 units were produced?

    <p>Php 0.01 per unit</p> Signup and view all the answers

    What does operations management primarily focus on?

    <p>Designing and improving systems for goods or services</p> Signup and view all the answers

    What is the primary difference between effectiveness and efficiency in operations?

    <p>Effectiveness is about making the right decisions, while efficiency is about doing things at the lowest cost</p> Signup and view all the answers

    Why is competitiveness vital for companies in the marketplace?

    <p>It influences consumer buying decisions and the success of the company</p> Signup and view all the answers

    What role does marketing play in a company's competitiveness?

    <p>It helps identify consumer wants and influences decision-making</p> Signup and view all the answers

    What are core competencies?

    <p>The unique advantages a company has in the marketplace</p> Signup and view all the answers

    Which of the following influences consumer buying decisions the most?

    <p>The trade-off between price and quality</p> Signup and view all the answers

    Which of the following could be considered a core competency of McDonald’s?

    <p>Standardization of product taste and quality</p> Signup and view all the answers

    Which of the following best describes how advertising influences competitiveness?

    <p>It informs potential customers about product features</p> Signup and view all the answers

    What is the formula for calculating productivity growth?

    <p>(Current Productivity - Previous Productivity) / Previous Productivity x 100</p> Signup and view all the answers

    If a machine produced 70 pieces in two hours, and 2 pieces were unusable, what is the effective productivity of that machine?

    <p>34 pieces/hour</p> Signup and view all the answers

    Which of the following measures is used to evaluate machine productivity?

    <p>Units of output per machine hour</p> Signup and view all the answers

    What is a key requirement when calculating multi-factor productivity?

    <p>The unit of measure must be the same for all factors in the denominator</p> Signup and view all the answers

    How is labor productivity typically measured?

    <p>Units of output per labor hour</p> Signup and view all the answers

    What would be the partial productivity of 720 square yards of carpeting installed by 4 workers in 8 hours?

    <p>22.5 yards/hour</p> Signup and view all the answers

    Which of the following is NOT a measure of capital productivity?

    <p>Units of output per labor hour</p> Signup and view all the answers

    In calculating energy productivity, which measure is typically used?

    <p>Units of output per kilowatt-hour</p> Signup and view all the answers

    Study Notes

    NU LiPa Week 1: Fundamental of Quality, Operations, and Total Quality Management

    • The course covers fundamental concepts of quality, operations, and total quality management.
    • Course objectives include defining quality, its history, and importance; distinguishing Deming, Juran, and Crosby philosophies on quality management; extracting different operation management concepts; and summarizing competitiveness, strategy, and productivity.

    Operations Management

    • Operations management involves managing processes that transform inputs into goods and services that add value to the customer.
    • Operations management includes the study of how goods and services are produced.
    • A transformation process takes inputs, transforms them, and provides outputs for customers.
    • Transformation can involve raw materials, information, or even people (e.g., a hospital transforming patients).
    • Often, all three types of input (materials, information, and customers) must be transformed by a single organization.

    Types of Operations

    • Manufacturing: creating physical products (cars).
    • Service: treating customers and storing products (hospitals, warehouses).
    • Supply: changing ownership of goods (retail).
    • Transport: moving materials or customers (taxi services).

    Micro and Macro Operations

    • Macro operation is the overall transformation process.
    • The macro operation can be broken down into micro operations (e.g., beer production involves milling, mixing, cooling, and fermenting).

    The Operations Function

    • Operations management encompasses activities to create and deliver goods/services to customers.
    • Effectiveness focuses on making the right actions to improve business and add value for the customer.
    • Efficiency means doing things well at the lowest possible cost.

    Development of Operations Management

    • Different periods of operations management include Craft Manufacturing (prior to late 1800s), Mass Production (late 1800s-1970s), and the Modern Period (1970s-present).
    • Each period is associated with different production volume, variety, workers, facility, and competition characteristics.

    Competitiveness

    • Companies must be competitive to sell goods and services in the marketplace.
    • Competitiveness involves: identifying consumer needs and wants; understanding the trade-off between price and quality, and using advertising and promotion.
    • Key purchasing criteria include price, quality, variety, and timeliness.

    Core Competencies

    • Core competencies are the resources and capabilities that comprise strategic advantages for a business.
    • Core competencies include a company's people, physical assets, patents, brand equity, and capital.
    • Examples include McDonald's standardization of French fries or Apple's stylish devices.

    Strategy

    • Strategic management is the highest level encompassing corporate values, culture, goals, and missions for the longest time horizon.
    • Tactics are methods and actions used to accomplish strategies, involving corporate, business, and functional strategies.

    Productivity

    • Productivity is a measure of effective resource use, typically expressed as the ratio of output to input.
    • The higher the productivity, the lower the cost of the output.
    • Output reflects production quantity, while input measurement typically uses peso spent.
    • Productivity growth is calculated by comparing current and previous productivity values.
    • Partial productivity measures output against a single input (e.g., labor, machines).
    • Multi-factor productivity measures output against multiple inputs (e.g., labor, materials, energy).

    Productivity Measures

    • Various productivity measures exist, such as units of output per labor hour, value-added per labor hour, units of output per machine hour, and peso value of output per machine hour.

    Examples of Productivity Problems

    • Problems involving labor, machine, material, and energy productivity are presented. Relevant problems and calculations are included.

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    Description

    Test your knowledge on key concepts in operations management with this quiz. Explore topics such as operational strategies, productivity, and quality-based strategies. This challenging set of questions will evaluate your understanding of essential management principles.

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