OPERATIONS MANAGEMENT CAPSTONE
EXAMINATION|QUESTIONS AND CORRECT
ANSWER WITH EXPLANATION GRADED A+
STUDY GUIDE SOUTHERN NEW HAMPSHIRE
UNIVERSITY
Question 1
Operations management primarily focuses on:
A. Financial auditing
B. Efficient production and service delivery
C. Political decision-making
D. Advertising campaigns
Correct Answer: B
Rationale: Operations management is concerned with designing and
controlling processes that produce goods and services efficiently.
Question 2
Which of the following best defines a transformation process?
A. Converting inputs into outputs
B. Increasing marketing reach
C. Hiring employees
D. Reducing taxes
Correct Answer: A
Rationale: Operations transform inputs (materials, labor) into outputs
(goods/services).
Question 3
Which is an example of an input in operations management?
A. Finished product
B. Customer feedback only
,C. Raw materials
D. Sales revenue
Correct Answer: C
Rationale: Inputs include resources like raw materials, labor, and energy.
Question 4
What is the primary goal of operations management?
A. Maximize advertising
B. Maximize efficiency and effectiveness
C. Increase political influence
D. Reduce customer demand
Correct Answer: B
Rationale: The goal is to produce goods/services efficiently and
effectively.
Question 5
Which system integrates all business operations?
A. ERP system
B. Social media platform
C. Email system
D. Payroll-only system
Correct Answer: A
Rationale: ERP integrates all core business functions into one system.
Question 6
What is capacity in operations management?
A. Employee salary level
B. Maximum output a system can produce
C. Marketing budget
D. Customer satisfaction level
, Correct Answer: B
Rationale: Capacity refers to the maximum production capability.
Question 7
Which is a key objective of capacity planning?
A. Reduce production
B. Match capacity with demand
C. Increase idle time
D. Ignore forecasting
Correct Answer: B
Rationale: Capacity planning ensures resources meet demand levels.
Question 8
What does a bottleneck represent in operations?
A. Fastest process step
B. Slowest step limiting overall output
C. Marketing issue
D. Financial gain
Correct Answer: B
Rationale: A bottleneck restricts workflow and reduces efficiency.
Question 9
Which principle is central to lean operations?
A. Waste elimination
B. Increasing inventory
C. Adding complexity
D. Reducing efficiency
Correct Answer: A
Rationale: Lean focuses on eliminating waste in all forms.
EXAMINATION|QUESTIONS AND CORRECT
ANSWER WITH EXPLANATION GRADED A+
STUDY GUIDE SOUTHERN NEW HAMPSHIRE
UNIVERSITY
Question 1
Operations management primarily focuses on:
A. Financial auditing
B. Efficient production and service delivery
C. Political decision-making
D. Advertising campaigns
Correct Answer: B
Rationale: Operations management is concerned with designing and
controlling processes that produce goods and services efficiently.
Question 2
Which of the following best defines a transformation process?
A. Converting inputs into outputs
B. Increasing marketing reach
C. Hiring employees
D. Reducing taxes
Correct Answer: A
Rationale: Operations transform inputs (materials, labor) into outputs
(goods/services).
Question 3
Which is an example of an input in operations management?
A. Finished product
B. Customer feedback only
,C. Raw materials
D. Sales revenue
Correct Answer: C
Rationale: Inputs include resources like raw materials, labor, and energy.
Question 4
What is the primary goal of operations management?
A. Maximize advertising
B. Maximize efficiency and effectiveness
C. Increase political influence
D. Reduce customer demand
Correct Answer: B
Rationale: The goal is to produce goods/services efficiently and
effectively.
Question 5
Which system integrates all business operations?
A. ERP system
B. Social media platform
C. Email system
D. Payroll-only system
Correct Answer: A
Rationale: ERP integrates all core business functions into one system.
Question 6
What is capacity in operations management?
A. Employee salary level
B. Maximum output a system can produce
C. Marketing budget
D. Customer satisfaction level
, Correct Answer: B
Rationale: Capacity refers to the maximum production capability.
Question 7
Which is a key objective of capacity planning?
A. Reduce production
B. Match capacity with demand
C. Increase idle time
D. Ignore forecasting
Correct Answer: B
Rationale: Capacity planning ensures resources meet demand levels.
Question 8
What does a bottleneck represent in operations?
A. Fastest process step
B. Slowest step limiting overall output
C. Marketing issue
D. Financial gain
Correct Answer: B
Rationale: A bottleneck restricts workflow and reduces efficiency.
Question 9
Which principle is central to lean operations?
A. Waste elimination
B. Increasing inventory
C. Adding complexity
D. Reducing efficiency
Correct Answer: A
Rationale: Lean focuses on eliminating waste in all forms.
