BUS5115 Operations Management Units 1-4 Test Bank —
Operations Intro, Process Design, Quality, and Supply Chain
Course:
BUS5115 Operations Management — University of the People (UoPeople)
Level:
MBA
Year:
2025/2026
Format:
Comprehensive Test Bank — 60 Q&A with Verified Answers
BUS5115 Units 1-4 Test Bank
60 Questions with Verified Correct Answers | 100% Complete Solutions
Question 1 — Unit 1:
Which of the following best defines the primary function of Operations Management (OM) within
an organization?
A) Maximizing shareholder wealth through financial investments and portfolio diversification.
B) Designing, operating, and improving the systems that create and deliver the firm's primary
products and services.
C) Developing marketing campaigns to increase brand awareness and consumer demand.
D) Managing employee benefits, payroll, and organizational behavior strategies.
Answer: B
Explanation:
Operations Management focuses on the systematic design, direction, and control of processes
that transform inputs into services and products for internal, as well as external, customers. It is
fundamentally about creating value efficiently and effectively.
Question 2 — Unit 1:
,A software development company shifts its business model from selling boxed software (a
tangible good) to offering software as a service (SaaS). How does this shift impact its operations
management?
A) Inventory management of physical goods becomes more complex and requires larger
warehouses.
B) The customer becomes more heavily involved in the production and delivery process.
C) Quality control becomes easier because services are inherently more standardized than
physical goods.
D) The company will no longer need to measure productivity since services cannot be quantified.
Answer: B
Explanation:
Services are typically characterized by high customer interaction and intangibility. In a SaaS
model, operations must be continuously available and highly responsive to user interactions,
making the customer an active participant in the service delivery process.
Question 3 — Unit 1:
A manufacturing plant produces 5,000 units of a product per day. The plant employs 50 workers,
each working an 8-hour shift. What is the labor productivity of the plant?
A) 12.5 units per labor hour
B) 100 units per labor hour
C) 10 units per labor hour
D) 625 units per labor hour
Answer: A
Explanation:
Labor productivity is calculated by dividing total output by total labor hours. Total labor hours = 50
workers * 8 hours = 400 hours. Productivity = 5,000 units / 400 hours = 12.5 units per labor hour.
Question 4 — Unit 1:
In the context of operations strategy, what is the difference between an "order qualifier" and an
"order winner"?
A) Order qualifiers are features that dictate the final purchase decision, while order winners are
basic criteria necessary to be considered.
B) Order qualifiers are used only in manufacturing, while order winners apply only to service
industries.
, C) Order qualifiers are basic screening criteria to be considered by a customer, while order
winners are criteria that differentiate the product and win the bid.
D) Order qualifiers relate to price, while order winners relate strictly to product quality.
Answer: C
Explanation:
Order qualifiers represent the minimum standards a company must meet to even be considered by
a customer. Order winners are the unique characteristics or performance dimensions (like superior
speed or customizability) that actually convince the customer to choose that company over
competitors.
Question 5 — Unit 1:
Which operational approach is most heavily associated with the reduction of waste, continuous
improvement, and the elimination of non-value-added activities?
A) Scientific Management
B) Lean Production
C) Mass Customization
D) Material Requirements Planning (MRP)
Answer: B
Explanation:
Lean Production, originating from the Toyota Production System, focuses on creating more value
for customers with fewer resources by relentlessly eliminating waste (muda) from processes.
Question 6 — Unit 1:
A hospital implements a new triage system that significantly reduces patient wait times without
increasing staff. The hospital's operations strategy is primarily competing on which dimension?
A) Cost
B) Flexibility
C) Quality
D) Time (Delivery Speed)
Answer: D
Explanation:
Operations Intro, Process Design, Quality, and Supply Chain
Course:
BUS5115 Operations Management — University of the People (UoPeople)
Level:
MBA
Year:
2025/2026
Format:
Comprehensive Test Bank — 60 Q&A with Verified Answers
BUS5115 Units 1-4 Test Bank
60 Questions with Verified Correct Answers | 100% Complete Solutions
Question 1 — Unit 1:
Which of the following best defines the primary function of Operations Management (OM) within
an organization?
A) Maximizing shareholder wealth through financial investments and portfolio diversification.
B) Designing, operating, and improving the systems that create and deliver the firm's primary
products and services.
C) Developing marketing campaigns to increase brand awareness and consumer demand.
D) Managing employee benefits, payroll, and organizational behavior strategies.
Answer: B
Explanation:
Operations Management focuses on the systematic design, direction, and control of processes
that transform inputs into services and products for internal, as well as external, customers. It is
fundamentally about creating value efficiently and effectively.
Question 2 — Unit 1:
,A software development company shifts its business model from selling boxed software (a
tangible good) to offering software as a service (SaaS). How does this shift impact its operations
management?
A) Inventory management of physical goods becomes more complex and requires larger
warehouses.
B) The customer becomes more heavily involved in the production and delivery process.
C) Quality control becomes easier because services are inherently more standardized than
physical goods.
D) The company will no longer need to measure productivity since services cannot be quantified.
Answer: B
Explanation:
Services are typically characterized by high customer interaction and intangibility. In a SaaS
model, operations must be continuously available and highly responsive to user interactions,
making the customer an active participant in the service delivery process.
Question 3 — Unit 1:
A manufacturing plant produces 5,000 units of a product per day. The plant employs 50 workers,
each working an 8-hour shift. What is the labor productivity of the plant?
A) 12.5 units per labor hour
B) 100 units per labor hour
C) 10 units per labor hour
D) 625 units per labor hour
Answer: A
Explanation:
Labor productivity is calculated by dividing total output by total labor hours. Total labor hours = 50
workers * 8 hours = 400 hours. Productivity = 5,000 units / 400 hours = 12.5 units per labor hour.
Question 4 — Unit 1:
In the context of operations strategy, what is the difference between an "order qualifier" and an
"order winner"?
A) Order qualifiers are features that dictate the final purchase decision, while order winners are
basic criteria necessary to be considered.
B) Order qualifiers are used only in manufacturing, while order winners apply only to service
industries.
, C) Order qualifiers are basic screening criteria to be considered by a customer, while order
winners are criteria that differentiate the product and win the bid.
D) Order qualifiers relate to price, while order winners relate strictly to product quality.
Answer: C
Explanation:
Order qualifiers represent the minimum standards a company must meet to even be considered by
a customer. Order winners are the unique characteristics or performance dimensions (like superior
speed or customizability) that actually convince the customer to choose that company over
competitors.
Question 5 — Unit 1:
Which operational approach is most heavily associated with the reduction of waste, continuous
improvement, and the elimination of non-value-added activities?
A) Scientific Management
B) Lean Production
C) Mass Customization
D) Material Requirements Planning (MRP)
Answer: B
Explanation:
Lean Production, originating from the Toyota Production System, focuses on creating more value
for customers with fewer resources by relentlessly eliminating waste (muda) from processes.
Question 6 — Unit 1:
A hospital implements a new triage system that significantly reduces patient wait times without
increasing staff. The hospital's operations strategy is primarily competing on which dimension?
A) Cost
B) Flexibility
C) Quality
D) Time (Delivery Speed)
Answer: D
Explanation:
