Academic Year 2026–2027 UNISA Assignment: MNO2502
Operations Management Techniques I Fully Solved Assignment
with Verified Answers | Operations Planning, Process
Management, Productivity Improvement, Quality Control, Capacity
Planning and Business Operations
Question 1: Which of the following best describes the primary objective of process
analysis in operations management?
A. To maximize employee satisfaction through job enrichment
B. To identify and eliminate non-value-added activities in a workflow
C. To increase the number of suppliers in the supply chain
D. To reduce the price of raw materials through bulk purchasing
CORRECT ANSWER: B. To identify and eliminate non-value-added activities in a
workflow
Rationale: Process analysis focuses on mapping, evaluating, and improving operational
workflows. Its core objective is to enhance efficiency and effectiveness by identifying
waste, bottlenecks, and non-value-added steps, aligning with lean operations
principles. Options A, C, and D relate to HR, procurement, or pricing strategies, not the
central purpose of process analysis.
Question 2: In capacity planning, what does the term "design capacity" refer to?
A. The maximum output rate achievable under ideal conditions with no interruptions
B. The actual output achieved during a specific period
C. The minimum output required to break even financially
D. The average output rate considering routine maintenance and breaks
CORRECT ANSWER: A. The maximum output rate achievable under ideal conditions
with no interruptions
Rationale: Design capacity represents the theoretical maximum output a system can
produce under perfect conditions, serving as a benchmark for planning. Effective
capacity (option D) accounts for realistic constraints, while actual output (option B)
reflects real-world performance. Option C relates to financial break-even analysis, not
capacity metrics.
Question 3: Which forecasting technique is most appropriate when historical data
exhibits a consistent upward trend but no seasonality?
A. Simple moving average
B. Exponential smoothing with trend adjustment
C. Naïve forecasting method
D. Qualitative Delphi method
CORRECT ANSWER: B. Exponential smoothing with trend adjustment
,Rationale: Exponential smoothing with trend adjustment (Holt's method) explicitly
models both level and trend components, making it ideal for data with consistent
directional movement. Simple moving average (A) lags behind trends, naïve method (C)
assumes no change, and Delphi (D) is qualitative and unsuitable for quantitative trend
analysis.
Question 4: In the Economic Order Quantity (EOQ) model, which cost component is
minimized when ordering at the EOQ point?
A. Purchase cost per unit
B. Total annual inventory cost (holding + ordering)
C. Stockout cost
D. Transportation cost per shipment
CORRECT ANSWER: B. Total annual inventory cost (holding + ordering)
Rationale: The EOQ model mathematically determines the order quantity that
minimizes the sum of annual holding costs and ordering costs. Purchase cost (A) is
constant if no quantity discounts exist, while stockout (C) and transportation costs (D)
are not explicitly modeled in the basic EOQ framework.
Question 5: A control chart shows seven consecutive points above the centerline.
What action should a quality manager take?
A. Continue monitoring; this is within expected random variation
B. Immediately stop the process and recalibrate equipment
C. Investigate for a potential assignable cause of variation
D. Reduce the sample size for future inspections
CORRECT ANSWER: C. Investigate for a potential assignable cause of variation
Rationale: In statistical process control, seven consecutive points on one side of the
centerline violate the "rule of seven," indicating a likely non-random (assignable) cause.
This warrants investigation before process adjustment. Option A ignores SPC rules; B is
premature without diagnosis; D reduces detection capability.
Question 6: Which layout type is most suitable for a hospital emergency
department where patients follow varied paths based on medical needs?
A. Product layout
B. Process layout
C. Fixed-position layout
D. Cellular layout
CORRECT ANSWER: B. Process layout
Rationale: Process layouts group similar functions or equipment together (e.g., triage,
X-ray, surgery), allowing flexible routing for diverse patient needs. Product layouts (A)
suit standardized high-volume flows; fixed-position (C) is for immobile products like
ships; cellular (D) groups parts into families with dedicated cells.
,Question 7: In project management using PERT, what is the formula for calculating
the expected time (te) of an activity given optimistic (a), most likely (m), and
pessimistic (b) estimates?
A. te = (a + m + b) / 3
B. te = (a + 2m + b) / 4
C. te = (a + 4m + b) / 6
D. te = (2a + 3m + b) / 6
CORRECT ANSWER: C. te = (a + 4m + b) / 6
Rationale: PERT uses a weighted average based on the beta distribution, assigning four
times the weight to the most likely estimate to account for uncertainty. Option A is a
simple average; B and D use incorrect weighting schemes not aligned with standard
PERT methodology.
Question 8: Which of the following is a key principle of Just-In-Time (JIT) production
systems?
A. Maintaining large safety stocks to buffer against demand fluctuations
B. Producing in large batches to maximize machine utilization
C. Pulling production based on actual downstream demand signals
D. Centralizing decision-making to ensure consistency
CORRECT ANSWER: C. Pulling production based on actual downstream demand
signals
Rationale: JIT operates on a pull system (e.g., kanban) where production is triggered by
actual consumption, minimizing waste and inventory. Options A and B represent push-
system characteristics JIT seeks to eliminate; D contradicts JIT's emphasis on
decentralized, empowered teams.
Question 9: What is the primary purpose of aggregate planning in operations
management?
A. To schedule individual employee shifts for the next week
B. To determine the optimal mix of workforce, inventory, and production rates over a
medium-term horizon
C. To select the geographic location for a new facility
D. To design the detailed routing of materials on the shop floor
CORRECT ANSWER: B. To determine the optimal mix of workforce, inventory, and
production rates over a medium-term horizon
Rationale: Aggregate planning balances demand and capacity over 3–18 months using
strategies like level, chase, or hybrid approaches. Option A relates to short-term
scheduling; C to location strategy; D to process design—none address medium-term
resource aggregation.
, Question 10: In a single-server queuing system (M/M/1), if the arrival rate (λ) is 10
customers per hour and the service rate (μ) is 15 customers per hour, what is the
system utilization (ρ)?
A. 0.33
B. 0.50
C. 0.67
D. 1.50
CORRECT ANSWER: C. 0.67
Rationale: Utilization ρ = λ/μ = 10/15 = 0.666..., or 67%. This represents the proportion of
time the server is busy. Option D exceeds 1.0, which would indicate an unstable
system; A and B result from incorrect division or formula application.
Question 11: Which quality management philosophy emphasizes continuous
improvement through small, incremental changes involving all employees?
A. Six Sigma
B. Total Quality Management (TQM)
C. ISO 9001 certification
D. Acceptance sampling
CORRECT ANSWER: B. Total Quality Management (TQM)
Rationale: TQM is a holistic approach focused on organization-wide commitment to
continuous improvement (kaizen), customer satisfaction, and employee involvement.
Six Sigma (A) targets defect reduction via DMAIC; ISO 9001 (C) is a standards
framework; acceptance sampling (D) is an inspection technique.
Question 12: When using the center-of-gravity method for facility location, what is
the primary input data required?
A. Labor cost rates in potential regions
B. Coordinates and shipment volumes of existing demand points
C. Tax incentives offered by local governments
D. Competitor facility locations
CORRECT ANSWER: B. Coordinates and shipment volumes of existing demand
points
Rationale: The center-of-gravity method calculates a location minimizing transportation
costs by weighting geographic coordinates by shipment volumes or frequencies.
Options A, C, and D are relevant to location decisions but are not inputs to this specific
quantitative technique.
Question 13: In Material Requirements Planning (MRP), what does the "bill of
materials" (BOM) specify?
Operations Management Techniques I Fully Solved Assignment
with Verified Answers | Operations Planning, Process
Management, Productivity Improvement, Quality Control, Capacity
Planning and Business Operations
Question 1: Which of the following best describes the primary objective of process
analysis in operations management?
A. To maximize employee satisfaction through job enrichment
B. To identify and eliminate non-value-added activities in a workflow
C. To increase the number of suppliers in the supply chain
D. To reduce the price of raw materials through bulk purchasing
CORRECT ANSWER: B. To identify and eliminate non-value-added activities in a
workflow
Rationale: Process analysis focuses on mapping, evaluating, and improving operational
workflows. Its core objective is to enhance efficiency and effectiveness by identifying
waste, bottlenecks, and non-value-added steps, aligning with lean operations
principles. Options A, C, and D relate to HR, procurement, or pricing strategies, not the
central purpose of process analysis.
Question 2: In capacity planning, what does the term "design capacity" refer to?
A. The maximum output rate achievable under ideal conditions with no interruptions
B. The actual output achieved during a specific period
C. The minimum output required to break even financially
D. The average output rate considering routine maintenance and breaks
CORRECT ANSWER: A. The maximum output rate achievable under ideal conditions
with no interruptions
Rationale: Design capacity represents the theoretical maximum output a system can
produce under perfect conditions, serving as a benchmark for planning. Effective
capacity (option D) accounts for realistic constraints, while actual output (option B)
reflects real-world performance. Option C relates to financial break-even analysis, not
capacity metrics.
Question 3: Which forecasting technique is most appropriate when historical data
exhibits a consistent upward trend but no seasonality?
A. Simple moving average
B. Exponential smoothing with trend adjustment
C. Naïve forecasting method
D. Qualitative Delphi method
CORRECT ANSWER: B. Exponential smoothing with trend adjustment
,Rationale: Exponential smoothing with trend adjustment (Holt's method) explicitly
models both level and trend components, making it ideal for data with consistent
directional movement. Simple moving average (A) lags behind trends, naïve method (C)
assumes no change, and Delphi (D) is qualitative and unsuitable for quantitative trend
analysis.
Question 4: In the Economic Order Quantity (EOQ) model, which cost component is
minimized when ordering at the EOQ point?
A. Purchase cost per unit
B. Total annual inventory cost (holding + ordering)
C. Stockout cost
D. Transportation cost per shipment
CORRECT ANSWER: B. Total annual inventory cost (holding + ordering)
Rationale: The EOQ model mathematically determines the order quantity that
minimizes the sum of annual holding costs and ordering costs. Purchase cost (A) is
constant if no quantity discounts exist, while stockout (C) and transportation costs (D)
are not explicitly modeled in the basic EOQ framework.
Question 5: A control chart shows seven consecutive points above the centerline.
What action should a quality manager take?
A. Continue monitoring; this is within expected random variation
B. Immediately stop the process and recalibrate equipment
C. Investigate for a potential assignable cause of variation
D. Reduce the sample size for future inspections
CORRECT ANSWER: C. Investigate for a potential assignable cause of variation
Rationale: In statistical process control, seven consecutive points on one side of the
centerline violate the "rule of seven," indicating a likely non-random (assignable) cause.
This warrants investigation before process adjustment. Option A ignores SPC rules; B is
premature without diagnosis; D reduces detection capability.
Question 6: Which layout type is most suitable for a hospital emergency
department where patients follow varied paths based on medical needs?
A. Product layout
B. Process layout
C. Fixed-position layout
D. Cellular layout
CORRECT ANSWER: B. Process layout
Rationale: Process layouts group similar functions or equipment together (e.g., triage,
X-ray, surgery), allowing flexible routing for diverse patient needs. Product layouts (A)
suit standardized high-volume flows; fixed-position (C) is for immobile products like
ships; cellular (D) groups parts into families with dedicated cells.
,Question 7: In project management using PERT, what is the formula for calculating
the expected time (te) of an activity given optimistic (a), most likely (m), and
pessimistic (b) estimates?
A. te = (a + m + b) / 3
B. te = (a + 2m + b) / 4
C. te = (a + 4m + b) / 6
D. te = (2a + 3m + b) / 6
CORRECT ANSWER: C. te = (a + 4m + b) / 6
Rationale: PERT uses a weighted average based on the beta distribution, assigning four
times the weight to the most likely estimate to account for uncertainty. Option A is a
simple average; B and D use incorrect weighting schemes not aligned with standard
PERT methodology.
Question 8: Which of the following is a key principle of Just-In-Time (JIT) production
systems?
A. Maintaining large safety stocks to buffer against demand fluctuations
B. Producing in large batches to maximize machine utilization
C. Pulling production based on actual downstream demand signals
D. Centralizing decision-making to ensure consistency
CORRECT ANSWER: C. Pulling production based on actual downstream demand
signals
Rationale: JIT operates on a pull system (e.g., kanban) where production is triggered by
actual consumption, minimizing waste and inventory. Options A and B represent push-
system characteristics JIT seeks to eliminate; D contradicts JIT's emphasis on
decentralized, empowered teams.
Question 9: What is the primary purpose of aggregate planning in operations
management?
A. To schedule individual employee shifts for the next week
B. To determine the optimal mix of workforce, inventory, and production rates over a
medium-term horizon
C. To select the geographic location for a new facility
D. To design the detailed routing of materials on the shop floor
CORRECT ANSWER: B. To determine the optimal mix of workforce, inventory, and
production rates over a medium-term horizon
Rationale: Aggregate planning balances demand and capacity over 3–18 months using
strategies like level, chase, or hybrid approaches. Option A relates to short-term
scheduling; C to location strategy; D to process design—none address medium-term
resource aggregation.
, Question 10: In a single-server queuing system (M/M/1), if the arrival rate (λ) is 10
customers per hour and the service rate (μ) is 15 customers per hour, what is the
system utilization (ρ)?
A. 0.33
B. 0.50
C. 0.67
D. 1.50
CORRECT ANSWER: C. 0.67
Rationale: Utilization ρ = λ/μ = 10/15 = 0.666..., or 67%. This represents the proportion of
time the server is busy. Option D exceeds 1.0, which would indicate an unstable
system; A and B result from incorrect division or formula application.
Question 11: Which quality management philosophy emphasizes continuous
improvement through small, incremental changes involving all employees?
A. Six Sigma
B. Total Quality Management (TQM)
C. ISO 9001 certification
D. Acceptance sampling
CORRECT ANSWER: B. Total Quality Management (TQM)
Rationale: TQM is a holistic approach focused on organization-wide commitment to
continuous improvement (kaizen), customer satisfaction, and employee involvement.
Six Sigma (A) targets defect reduction via DMAIC; ISO 9001 (C) is a standards
framework; acceptance sampling (D) is an inspection technique.
Question 12: When using the center-of-gravity method for facility location, what is
the primary input data required?
A. Labor cost rates in potential regions
B. Coordinates and shipment volumes of existing demand points
C. Tax incentives offered by local governments
D. Competitor facility locations
CORRECT ANSWER: B. Coordinates and shipment volumes of existing demand
points
Rationale: The center-of-gravity method calculates a location minimizing transportation
costs by weighting geographic coordinates by shipment volumes or frequencies.
Options A, C, and D are relevant to location decisions but are not inputs to this specific
quantitative technique.
Question 13: In Material Requirements Planning (MRP), what does the "bill of
materials" (BOM) specify?
