OPERATION MANAGEMENT EXAMINATION QUESTION AND CORRECT ANSWER WITH EXPLANATION GRADED A+ STUDY GUIDE

OPERATION MANAGEMENT EXAMINATION QUESTION
AND CORRECT ANSWER WITH EXPLANATION GRADED
A+ STUDY GUIDE SOUTHERN NEW HAMPSHIRE
UNIVERSITY
1. Operations management is the process of:
A. Managing production of goods and services
B. Ignoring production
C. Only marketing products
D. Only budgeting
Answer: A
Rationale: It focuses on production and service delivery.

2. The main goal of operations management is to:
A. Improve efficiency and productivity
B. Increase waste
C. Reduce quality
D. Stop production
Answer: A
Rationale: Efficiency is key objective.

3. Operations involve:
A. Transformation of inputs into outputs
B. Only selling products
C. Only finance
D. Only HR
Answer: A
Rationale: Input-output transformation.

4. Inputs in operations include:
A. Labor, materials, capital
B. Only profit
C. Only customers
D. Only marketing
Answer: A
Rationale: Resources used in production.

,5. Outputs in operations are:
A. Goods and services
B. Only money
C. Only data
D. Only risks
Answer: A
Rationale: Final products.

6. Productivity is measured as:
A. Output per unit input
B. Cost only
C. Time only
D. Risk only
Answer: A
Rationale: Efficiency measure.

7. Efficiency means:
A. Doing things right
B. Doing wrong things
C. Increasing waste
D. Ignoring quality
Answer: A
Rationale: Proper use of resources.

8. Effectiveness means:
A. Doing the right things
B. Ignoring goals
C. Reducing output
D. Increasing cost
Answer: A
Rationale: Goal achievement.

9. Operations strategy focuses on:
A. Long-term production decisions
B. Random production
C. Marketing only
D. HR only
Answer: A
Rationale: Strategic planning.

, 10. Capacity refers to:
A. Maximum output level
B. Budget limit
C. Risk level
D. Schedule only
Answer: A
Rationale: Production capability.

11. Design capacity is:
A. Maximum possible output
B. Actual output
C. Minimum output
D. Zero output
Answer: A
Rationale: Theoretical maximum.

12. Effective capacity is:
A. Realistic output considering constraints
B. Maximum output only
C. Budget output
D. Random output
Answer: A
Rationale: Practical capacity.

13. Utilization is:
A. Actual output / design capacity
B. Cost ratio
C. Risk ratio
D. Budget ratio
Answer: A
Rationale: Capacity usage measure.

14. Efficiency in operations is:
A. Actual output / effective capacity
B. Cost only
C. Risk only
D. Schedule only
Answer: A
Rationale: Performance measure.