Operations Management | Grade A | Pass
Guaranteed - A+ Graded
SECTION 1: Operations Strategy & Competitiveness (Q1-Q8)
Q1: A company produced 12,000 units using 4,000 labor hours. What is the labor
productivity in units per labor hour?
A. 2.0 units/hour
B. 3.0 units/hour [CORRECT]
C. 4.0 units/hour
D. 5.0 units/hour
Correct Answer: B
Rationale: Productivity = Output / Input = 12,000 units / 4,000 hours = 3.0 units per hour.
Option A incorrectly divides hours by units, while C and D result from arithmetic errors
or confusion with revenue productivity.
Q2: A manufacturing firm wants to compete primarily on delivering customized
products within 48 hours. Which competitive priority should dominate its operations
strategy?
A. Cost leadership
B. Quality excellence
C. Delivery speed and flexibility [CORRECT]
D. Standardization
Correct Answer: C
Rationale: Delivery speed and flexibility prioritize rapid response to customer
specifications and demand variation. Cost leadership focuses on low price, quality
excellence on defect reduction, and standardization contradicts customization.
Q3: Which term describes the unique strengths that give an organization a competitive
advantage and are difficult for competitors to imitate?
,A. Competitive priorities
B. Core competencies [CORRECT]
C. Value-added activities
D. Order qualifiers
Correct Answer: B
Rationale: Core competencies are distinctive capabilities that provide sustainable
competitive advantage. Competitive priorities are strategic focuses, value-added
activities transform inputs into outputs, and order qualifiers are minimum requirements
to enter a market.
Q4: A furniture company adds hand-carved details and custom staining to standard
wood frames. Which operations concept best describes this activity?
A. Outsourcing
B. Value-added processing [CORRECT]
C. Process standardization
D. Capacity buffering
Correct Answer: B
Rationale: Value-added processing transforms materials into products that customers
value and are willing to pay for. Outsourcing delegates work externally, standardization
reduces variation, and capacity buffering adds excess capacity.
Q5: In operations strategy, which of the following is considered an order qualifier rather
than an order winner?
A. Lowest price in the industry
B. Meeting minimum quality standards to be considered by customers [CORRECT]
C. Fastest delivery time in the market
D. Most flexible customization options
Correct Answer: B
Rationale: Order qualifiers are minimum requirements that allow a firm to be considered
by customers, whereas order winners differentiate competitors. Minimum quality
standards are typically qualifiers, while superior price, speed, or flexibility can be order
winners.
Q6: A hospital processed 2,880 laboratory tests last month using 12 technicians
working 160 hours each. What is the labor productivity in tests per labor hour?
, A. 1.25 tests/hour
B. 1.50 tests/hour [CORRECT]
C. 2.00 tests/hour
D. 2.25 tests/hour
Correct Answer: B
Rationale: Productivity = Output / Input = 2,880 tests / (12 technicians × 160 hours) =
2,,920 = 1.50 tests per labor hour. Distractors incorrectly calculate total hours or
divide input by output.
Q7: Which term refers to the ratio of outputs to inputs used to measure operational
efficiency?
A. Capacity utilization
B. Productivity [CORRECT]
C. Throughput rate
D. Efficiency ratio
Correct Answer: B
Rationale: Productivity is defined as outputs divided by inputs. Capacity utilization
measures actual output relative to design capacity, throughput rate is output per unit
time, and efficiency ratio is not a standard operations management term.
Q8: When an organization's operations strategy directly supports its mission and
long-term goals, this alignment is called:
A. Process integration
B. Strategic fit [CORRECT]
C. Operational benchmarking
D. Value chain optimization
Correct Answer: B
Rationale: Strategic fit ensures operations capabilities and resources support
organizational objectives. Process integration links internal processes, benchmarking
compares performance against standards, and value chain optimization focuses on
supply chain activities.
SECTION 2: Process Design & Analysis (Q9-Q18)