2026 — COMplete Oa revieW fOr BUsiness &
ManaGeMent stUdents | sUpply Chain,
prOCess OptiMizatiOn, lean & six siGMa,
inventOry COntrOl, fOreCastinG, QUality
ManaGeMent, perfOrManCe MetriCs & hiGh-
yield praCtiCe QUestiOns fOr first-atteMpt
sUCCess
Question 1:
What is the primary purpose of utilizing Lean principles in operations
management?
A. To increase employee satisfaction
B. To maximize waste and inefficiencies
C. To streamline processes and eliminate waste
D. To ensure compliance with regulations
Correct Answer: C. To streamline processes and eliminate waste
Rationale:
Lean principles focus on enhancing customer value by minimizing waste within
manufacturing systems. By eliminating non-value-adding activities, organizations can
improve quality, reduce lead times, and enhance overall efficiency. This approach
fosters continuous improvement and operational agility, leading to greater competitive
advantage.
Question 2:
In the context of supply chain management, what is the Role of Just-In-Time (JIT)
inventory systems?
A. To maintain high inventory levels for emergency supply
B. To deliver materials as they are needed in the production process
C. To randomly store large quantities in anticipation of demand
D. To provide a buffer stock for unexpected surges
Correct Answer: B. To deliver materials as they are needed in the production
process
Rationale:
Just-In-Time (JIT) is an inventory management strategy that aligns raw-material orders
from suppliers directly with production schedules. By implementing JIT, organizations
reduce the costs associated with holding inventory, thereby increasing efficiency and
,reducing waste. This maximizes operational efficiency and responsiveness to customer
demand.
Question 3:
Which of the following best describes the Theory of Constraints (TOC) in operations
management?
A. Focus on minimizing costs across all processes
B. Identifying and managing the weakest link in the production chain
C. Increasing production rates without regard to bottlenecks
D. Implementing automation in every stage of the process
Correct Answer: B. Identifying and managing the weakest link in the production
chain
Rationale:
The Theory of Constraints posits that every system has at least one constraint that limits
its performance. By identifying this bottleneck and systematically improving it,
organizations can achieve significant enhancements in overall system throughput and
productivity. This method emphasizes focused improvements rather than spreading
resources thin across all areas.
Question 4:
What analytical tool is primarily used to visualize the flow of materials and
information in a production system?
A. Gantt Chart
B. Fishbone Diagram
C. Value Stream Mapping
D. Pareto Chart
Correct Answer: C. Value Stream Mapping
Rationale:
Value Stream Mapping is a powerful lean-management tool that helps visualize the flow
of materials and information required to bring a product or service to a consumer. It
identifies value-adding and non-value-adding steps in the process. By mapping these
flows, organizations can identify inefficiencies and implement plans for process
improvement.
Question 5:
,How does Total Quality Management (TQM) differ from traditional quality control
methods?
A. TQM only focuses on quality inspections at the end of the production process
B. TQM fosters involvement from all levels of an organization
C. TQM eliminates the need for training and employee development
D. TQM does not consider customer feedback in quality assessment
Correct Answer: B. TQM fosters involvement from all levels of an organization
Rationale:
Total Quality Management is a holistic management approach that seeks to improve
quality across all organizational processes. Unlike traditional quality control methods
that may focus heavily on end-product testing, TQM emphasizes proactive measures,
employee training, and a collective team approach, where all employees, from top
management to the operational floor, are engaged in the quality improvement process.
This culture promotes consistent excellence and customer satisfaction.
Question 6:
Which of the following is a benefit of implementing a robust ERP (Enterprise
Resource Planning) system in manufacturing?
A. Isolates departments to focus on their specific outcomes
B. Streamlines processes by integrating all facets of operations
C. Reduces communication between teams
D. Decreases the need for data analytics
Correct Answer: B. Streamlines processes by integrating all facets of operations
Rationale:
An ERP system integrates various business processes, including supply chain,
manufacturing, and accounting into a unified system. This streamlining allows for better
information flow and decision-making across departments, subsequently improving
overall efficiency and responsiveness to market demands.
Question 7:
What is the main focus of a Six Sigma initiative?
A. Increasing output at any cost
B. Reducing variation and improving process quality
C. Enhancing product design without regard for production processes
D. Maximizing employee output through incentives
Correct Answer: B. Reducing variation and improving process quality
Rationale:
Six Sigma is a data-driven approach aimed at eliminating defects and variability in
, processes. With methodologies such as DMAIC (Define, Measure, Analyze, Improve,
Control), Six Sigma focuses on delivering quality by minimizing errors, thereby achieving
near-perfect processes that enhance customer satisfaction.
Question 8:
In operations management, which model is used to determine the optimal order
quantity that minimizes total inventory costs?
A. Economic Order Quantity (EOQ)
B. Just-In-Time (JIT) Model
C. Reorder Point (ROP)
D. ABC Analysis
Correct Answer: A. Economic Order Quantity (EOQ)
Rationale:
The Economic Order Quantity model determines the ideal order quantity a company
should purchase to minimize inventory costs, which includes holding and ordering
costs. This model helps in finding a balance between ordering frequency and storage
costs, thus optimizing inventory management.
Question 9:
What key performance indicator (KPI) would be most appropriate for assessing
production efficiency in a manufacturing environment?
A. Customer Satisfaction Score
B. Cycle Time
C. Employee Turnover Rate
D. Supplier Lead Time
Correct Answer: B. Cycle Time
Rationale:
Cycle Time measures the total time from the beginning to the end of a process,
providing insights into production efficiency. Reducing cycle time typically indicates
improved operational performance, allowing for faster production and delivery times,
which is critical in a competitive marketplace.
Question 10:
Which of the following approaches emphasizes total organizational involvement
for improving quality?