PRACTICE EXAM 2026/2027 | 150 QUESTIONS
& ANSWERS WITH RATIONALES | WESTERN
GOVERNORS UNIVERSITY EXAM PREP | INSTANT
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1. Which statement best describes the primary purpose of operations management?
A. Increasing advertising expenditures
B. Transforming inputs into valuable goods and services efficiently
C. Eliminating all employee involvement
D. Maximizing financial investments only
Answer: B. Transforming inputs into valuable goods and services efficiently
Rationale: Operations management focuses on designing, managing, and improving
processes that transform resources such as labor, materials, information, and capital into
goods or services.
2. Which competitive priority refers to an organization's ability to consistently meet
customer requirements and specifications?
A. Quality
B. Flexibility
C. Speed
D. Cost
Answer: A. Quality
Rationale: Quality means consistently meeting or exceeding established customer
requirements, specifications, and performance expectations.
3. A company produces 2,000 units using 500 labor hours. What is its labor
productivity?
A. 2 units per labor hour
B. 4 units per labor hour
C. 500 units per labor hour
D. 2,500 units per labor hour
,Answer: B. 4 units per labor hour
Rationale: Labor productivity = Output ÷ Labor input. Therefore, 2,000 ÷ 500 = 4 units per
labor hour.
4. Which process layout is most appropriate when a company produces a wide variety
of customized products?
A. Product layout
B. Process layout
C. Continuous-flow layout
D. Fixed-position layout
Answer: B. Process layout
Rationale: A process layout groups similar types of equipment or activities together and is
appropriate for high-variety, lower-volume production with customized routing.
5. What is a bottleneck in an operating system?
A. A process with unlimited capacity
B. The stage that restricts the overall throughput of the system
C. An activity with the lowest labor cost
D. A process with excess inventory
Answer: B. The stage that restricts the overall throughput of the system
Rationale: A bottleneck has insufficient capacity relative to demand and limits the amount the
entire system can produce.
6. Which capacity strategy increases capacity in anticipation of future demand?
A. Lag strategy
B. Lead strategy
C. Chase strategy
D. Level strategy
Answer: B. Lead strategy
Rationale: A lead capacity strategy adds capacity before demand actually occurs, allowing
an organization to prepare for anticipated increases.
,7. Which term describes the maximum theoretical output of an operation under ideal
conditions?
A. Effective capacity
B. Actual output
C. Design capacity
D. Utilization
Answer: C. Design capacity
Rationale: Design capacity represents the maximum output an operation is designed to
achieve under ideal conditions.
8. Which quality tool is particularly useful for identifying potential causes of a
problem?
A. Fishbone diagram
B. Histogram
C. Control chart
D. Check sheet
Answer: A. Fishbone diagram
Rationale: A fishbone, or cause-and-effect, diagram organizes potential causes of a problem
into categories to support root-cause analysis.
9. What is the primary purpose of a Pareto chart?
A. To calculate inventory turnover
B. To identify and prioritize the most significant causes of problems
C. To determine employee compensation
D. To schedule production jobs
Answer: B. To identify and prioritize the most significant causes of problems
Rationale: Pareto analysis applies the principle that a relatively small number of causes
often account for a large proportion of problems, helping managers prioritize improvement
efforts.
10. Which philosophy emphasizes organization-wide involvement in continuous quality
improvement?
A. TQM
B. EOQ
, C. MRP
D. JIT
Answer: A. TQM
Rationale: Total Quality Management is an organization-wide approach emphasizing
customer satisfaction, employee involvement, process improvement, and continuous quality
improvement.
11. Which phase of DMAIC involves determining the underlying causes of a process
problem?
A. Define
B. Measure
C. Analyze
D. Control
Answer: C. Analyze
Rationale: During the Analyze phase, collected data are examined to identify relationships,
patterns, and root causes of process problems.
12. In Six Sigma, what is the primary objective of process improvement?
A. Increase process variation
B. Reduce defects and variation
C. Increase inventory levels
D. Eliminate all inspections
Answer: B. Reduce defects and variation
Rationale: Six Sigma seeks to reduce process variation and defects through data-driven
process improvement.
13. Which type of variation results from identifiable and unusual causes?
A. Common-cause variation
B. Special-cause variation
C. Random variation only
D. Seasonal variation
Answer: B. Special-cause variation