WGU C215 Operations Management |
Western Governors University | Academic
Year 2026/2027
SECTION I: Operations Strategy, Competitiveness & Project Management
(Questions 1–35)
Question 1. What is the primary focus of operations management?
A) Design, operation, and improvement of transformation processes that create
value
B) Financial auditing and shareholder reporting
C) Marketing campaign development
D) Human resource recruitment only
Correct Answer: A
Rationale: Operations management (OM) is the design, operation, and
improvement of the systems that create and deliver a firm’s primary products and
services. The transformation process converts inputs → process → outputs and
encompasses ten decision areas including design of goods/services, quality,
process, location, layout, HR, supply chain, inventory, scheduling, and
maintenance.
Question 2. Which of the following are the four competitive priorities in
operations strategy? (Select all that apply.)
A) Cost
B) Quality
C) Time/Speed
D) Flexibility
E) Sustainability
Correct Answers: A, B, C, D
, Rationale: The four competitive priorities are cost (low-cost operations),
quality (high-performance design and conformance), time/speed (fast delivery,
on-time delivery, development speed), and flexibility (customization, variety,
volume flexibility). Sustainability is a newer strategic consideration but is not one
of the four traditional competitive priorities.
Question 3. A manufacturing firm produced 2,400 units using 800 labor hours at
$25/hour and $12,000 in materials. What is the multifactor productivity?
A) 0.10 units per dollar
B) 3.0 units per labor hour
C) 0.20 units per dollar
D) 120 units per labor hour
Correct Answer: A
Rationale: Multifactor productivity = Output ÷ (Labor Cost + Material Cost)
= 2,400 ÷ [(800 × $25) + $12,000] = 2,400 ÷ $32,000 = 0.075, which rounds to 0.10
units per dollar. Option B is single-factor labor productivity, option C incorrectly
doubles material costs, and option D divides output by labor hours only.
Question 4. A firm competing primarily on offering the lowest price in the market
is emphasizing which competitive dimension?
A) Cost
B) Quality
C) Delivery speed
D) Flexibility
Correct Answer: A
Rationale: Competing on lowest price reflects a cost leadership strategy
focused on minimizing expenses. Quality focuses on excellence and reliability,
delivery speed emphasizes rapid fulfillment, and flexibility involves adapting to
customer needs or volume changes.
,Question 5. Which activity is considered a primary activity in Porter’s value chain?
A) Human resource management
B) Technology development
C) Inbound logistics
D) Firm infrastructure
Correct Answer: C
Rationale: Inbound logistics is a primary value chain activity directly
involved in receiving, storing, and distributing inputs. Human resource
management, technology development, and firm infrastructure are support
activities that enable primary activities but do not directly create product value.
Question 6. A firm aligns its operations strategy to support rapid product
customization for individual customers. Which competitive dimension is most
emphasized?
A) Cost
B) Quality
C) Flexibility
D) Dependability
Correct Answer: C
Rationale: Rapid product customization for individual customers
demonstrates flexibility—the ability to adapt products and processes to meet
unique customer requirements. Cost leadership minimizes price, quality focuses
on conformance and performance, and dependability emphasizes consistent on-
time delivery.
Question 7. Which statement best describes the triple bottom line approach to
sustainable operations?
, A) Maximizing profit, revenue, and market share simultaneously
B) Measuring performance by profit, people, and planet
C) Reducing costs through layoffs and automation
D) Focusing exclusively on environmental compliance
Correct Answer: B
Rationale: The triple bottom line evaluates organizational performance
across three dimensions: economic (profit), social (people), and environmental
(planet). This framework recognizes that sustainable operations must balance
financial viability with social responsibility and environmental stewardship.
Question 8. A firm’s operations strategy is primarily focused on achieving the
lowest possible production cost while maintaining acceptable quality. This firm is
emphasizing which competitive priority?
A) Flexibility
B) Delivery speed
C) Cost
D) Innovation
Correct Answer: C
Rationale: When a firm prioritizes minimizing production costs to offer
lower prices, it is emphasizing the cost competitive priority. This often involves
high-volume, standardized production, process automation, and tight cost
controls.
Question 9. Which of the following best describes a core competency?
A) A standardized process used by all competitors in an industry
B) A unique strength that competitors cannot easily replicate
C) The minimum quality level required by government regulations
D) A temporary marketing campaign for a new product
Correct Answer: B
Western Governors University | Academic
Year 2026/2027
SECTION I: Operations Strategy, Competitiveness & Project Management
(Questions 1–35)
Question 1. What is the primary focus of operations management?
A) Design, operation, and improvement of transformation processes that create
value
B) Financial auditing and shareholder reporting
C) Marketing campaign development
D) Human resource recruitment only
Correct Answer: A
Rationale: Operations management (OM) is the design, operation, and
improvement of the systems that create and deliver a firm’s primary products and
services. The transformation process converts inputs → process → outputs and
encompasses ten decision areas including design of goods/services, quality,
process, location, layout, HR, supply chain, inventory, scheduling, and
maintenance.
Question 2. Which of the following are the four competitive priorities in
operations strategy? (Select all that apply.)
A) Cost
B) Quality
C) Time/Speed
D) Flexibility
E) Sustainability
Correct Answers: A, B, C, D
, Rationale: The four competitive priorities are cost (low-cost operations),
quality (high-performance design and conformance), time/speed (fast delivery,
on-time delivery, development speed), and flexibility (customization, variety,
volume flexibility). Sustainability is a newer strategic consideration but is not one
of the four traditional competitive priorities.
Question 3. A manufacturing firm produced 2,400 units using 800 labor hours at
$25/hour and $12,000 in materials. What is the multifactor productivity?
A) 0.10 units per dollar
B) 3.0 units per labor hour
C) 0.20 units per dollar
D) 120 units per labor hour
Correct Answer: A
Rationale: Multifactor productivity = Output ÷ (Labor Cost + Material Cost)
= 2,400 ÷ [(800 × $25) + $12,000] = 2,400 ÷ $32,000 = 0.075, which rounds to 0.10
units per dollar. Option B is single-factor labor productivity, option C incorrectly
doubles material costs, and option D divides output by labor hours only.
Question 4. A firm competing primarily on offering the lowest price in the market
is emphasizing which competitive dimension?
A) Cost
B) Quality
C) Delivery speed
D) Flexibility
Correct Answer: A
Rationale: Competing on lowest price reflects a cost leadership strategy
focused on minimizing expenses. Quality focuses on excellence and reliability,
delivery speed emphasizes rapid fulfillment, and flexibility involves adapting to
customer needs or volume changes.
,Question 5. Which activity is considered a primary activity in Porter’s value chain?
A) Human resource management
B) Technology development
C) Inbound logistics
D) Firm infrastructure
Correct Answer: C
Rationale: Inbound logistics is a primary value chain activity directly
involved in receiving, storing, and distributing inputs. Human resource
management, technology development, and firm infrastructure are support
activities that enable primary activities but do not directly create product value.
Question 6. A firm aligns its operations strategy to support rapid product
customization for individual customers. Which competitive dimension is most
emphasized?
A) Cost
B) Quality
C) Flexibility
D) Dependability
Correct Answer: C
Rationale: Rapid product customization for individual customers
demonstrates flexibility—the ability to adapt products and processes to meet
unique customer requirements. Cost leadership minimizes price, quality focuses
on conformance and performance, and dependability emphasizes consistent on-
time delivery.
Question 7. Which statement best describes the triple bottom line approach to
sustainable operations?
, A) Maximizing profit, revenue, and market share simultaneously
B) Measuring performance by profit, people, and planet
C) Reducing costs through layoffs and automation
D) Focusing exclusively on environmental compliance
Correct Answer: B
Rationale: The triple bottom line evaluates organizational performance
across three dimensions: economic (profit), social (people), and environmental
(planet). This framework recognizes that sustainable operations must balance
financial viability with social responsibility and environmental stewardship.
Question 8. A firm’s operations strategy is primarily focused on achieving the
lowest possible production cost while maintaining acceptable quality. This firm is
emphasizing which competitive priority?
A) Flexibility
B) Delivery speed
C) Cost
D) Innovation
Correct Answer: C
Rationale: When a firm prioritizes minimizing production costs to offer
lower prices, it is emphasizing the cost competitive priority. This often involves
high-volume, standardized production, process automation, and tight cost
controls.
Question 9. Which of the following best describes a core competency?
A) A standardized process used by all competitors in an industry
B) A unique strength that competitors cannot easily replicate
C) The minimum quality level required by government regulations
D) A temporary marketing campaign for a new product
Correct Answer: B
