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Introduction to Operations Management Complete Exam Study Guide 2026/2027 | Key Concepts & Practice Questions

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Introduction to Operations Management Complete Exam Study Guide 2026/2027 | Key Concepts & Practice Questions

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Introduction to operations
management

What are the three major functional areas or basic functions of a business? -
ANswer✅✅marketing, finance, and operations

What is operations management? -ANswer✅✅management of systems and processes
that create goods or services

What is a process? -ANswer✅✅one or more actions that transform various inputs into
desired outputs

What is a system? -ANswer✅✅set of inter-related parts that must work together to be
successful

What is a transformation process? -ANswer✅✅process that converts inputs into
outputs

What does the term value added mean? -ANswer✅✅its the difference between inputs
and outputs of a process

What is a supply chain? -ANswer✅✅the sequence of activities and enterprises
involved in producing or delivering a service

What are the two key areas of decision making for an operations manager? -
ANswer✅✅system design, system operations

Of the two areas of decision making, which is strategic, and which is tactical? -
ANswer✅✅system design is strategic, and systems operations are tactical

How did the nature of operations and their management change in the industrial
revolution? -ANswer✅✅movement from craft production by artisans to machine
production in factories

How did the nature of operations and their management change with scientific
management -ANswer✅✅first widespread use of mass production

How did the nature of operations and their management change in the human relations
movement? -ANswer✅✅emphasized importance of people in design process for work
and jobs

, How did the nature of operations and their management change with management
science -ANswer✅✅first widespread use of quantitative methods and decision models
for managing operations

How did the nature of operations and their management change with influence of
Japanese manufacturers -ANswer✅✅development of new management practices
aimed at improving both productivity and quality

During what stage in the evolution of operations management were following key
concepts first developed? Machine Production -ANswer✅✅late 18th, early 19th century

During what stage in the evolution of operations management were following key
concepts first developed? Division of labor? -ANswer✅✅1776

During what stage in the evolution of operations management were following key
concepts first developed? Interchangeable parts -ANswer✅✅1972

During what stage in the evolution of operations management were following key
concepts first developed? Mass production -ANswer✅✅late 19th, early 20th century

What are the seven key questions in operations management decision-making? -
ANswer✅✅what resources are needed, when are resources needed, how will
resources be allocated, where will work be done, how will work be done, who will do the
work, when must work be done

What are the 7 key aspects of operations management decision-making? -
ANswer✅✅models, quantitative methods, performance metrics, trade off analysis,
degree of customization, systems approach, establishing priorities



What are the three major functional areas or basic functions of a business? -
ANswer✅✅marketing, finance, and operations

What is operations management? -ANswer✅✅management of systems and processes
that create goods or services

What is a process? -ANswer✅✅one or more actions that transform various inputs into
desired outputs

What is a system? -ANswer✅✅set of inter-related parts that must work together to be
successful

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