Ultimate Study Guide EXAM QUESTIONS
COMPLETE QUESTIONS WITH
ELABORATED CORRECT SOLUTIONS
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Section 1: Operations Management & Strategy
1. What is the primary function of Operations Management?
ANSWER ✓ To design, operate, and improve the systems that create and deliver a firm's
primary products and services.
2. Define a "customer benefit package" (CBP).
ANSWER ✓ A clearly defined set of tangible and intangible features that a customer
recognizes, pays for, uses, or experiences.
3. What is the difference between a tangible good and a service?
ANSWER ✓ A tangible good is a physical product you can touch (e.g., a car). A service is
an intangible process or experience (e.g., a car wash).
4. What are the three major functional areas of business?
ANSWER ✓ Operations, Marketing, and Finance.
5. Define "value" in an operations context.
, ANSWER ✓ The perceived benefit a customer receives from a product/service, weighed
against the cost of obtaining it.
6. What is a "process"?
ANSWER ✓ A system of activities that transforms inputs into valuable outputs.
7. What is a "value chain"?
ANSWER ✓ A network of interconnected activities a firm uses to create value by
transforming inputs into outputs.
8. What is the difference between a core process and a support process?
ANSWER ✓ A core process is directly related to creating customer value (e.g.,
manufacturing). A support process provides necessary assistance to core processes (e.g.,
accounting, HR).
9. Define "Operations Strategy."
ANSWER ✓ The means by which operations implements the firm's corporate strategy
and builds a long-term capability for competitive advantage.
10. What are competitive priorities?
ANSWER ✓ The critical operational dimensions a process or supply chain must possess
to satisfy internal or external customers. They are the key strategic choices.
11. List the four common competitive priorities.
ANSWER ✓ Cost (low-price operation), Quality (high-performance design and/or
consistent conformance), Time (fast delivery time and/or on-time
delivery), Flexibility (customization and/or variety).
12. What are order qualifiers?
, ANSWER ✓ The minimum characteristics required for a firm to even be considered as a
potential source for a product or service.
13. What are order winners?
ANSWER ✓ The specific criteria that ultimately win the customer's order. They
differentiate one firm from another.
14. What is productivity?
ANSWER ✓ A measure of how efficiently inputs are converted into outputs. (Output /
Input).
15. Calculate productivity: A factory produces 1000 units a day with 50 workers.
What is the labor productivity?
ANSWER ✓ Productivity = Output / Input = 1000 units / 50 labor-hours = 20 units per
labor-hour.
16. What is a multi-factor productivity measure?
ANSWER ✓ Productivity calculated using multiple inputs (e.g., Labor + Materials +
Energy).
Section 2: Product & Process Design
17. What is Quality Function Deployment (QFD)?
ANSWER ✓ A structured process for translating customer requirements into detailed
technical specifications for a product or service.
18. What is the House of Quality?