MQM 227 Actual Questions and Correct Answers
Q1
Why is operations
Answer: B. Operations management refers to service as well as
Q2
The four decision areas in operations management are: Planning, technology, inventory, and
control Process, quality, capacity, and inventory Process, quality, technology, and capacity
None of these
Answer: B. Process, quality, capacity, and inventory
Q3
The contemporary operations themes signify that: More emphasis should be placed on
manufacturing than on service industries Every operation should be externally directed to meet
the customers' requirements Operations decisions should precede decisions in other functions
in an organization To be competitive, strategies for operations should exclude broader supply
chain issues
Answer: B. Every operation should be externally directed to meet the customers'
requirements
Q4
The essence of operations management can be described by: Process, capacity, and people
Decisions, function, and process Planning, control, and organization Integrated planning and
control
Answer: B. Decisions, function, and process
Q5
The three primary functions that exist in most business organizations are: Operations,
accounting, and finance Operations, production, and finance Production, marketing, and human
resources Operations, finance, and marketing
Answer: D. Operations, finance, and marketing
,Q6
T / F - The process view provides a basis for viewing an entire business as a system of
interconnected processes.
Answer: True
Q7
T / F - As price increases and benefits remain constant, the value of a product increases.
Answer: False
Q8
T / F - Best practices in operations are best for all organizations.
Answer: False
Q9
At Disney, "making people happy" is an example of: Operations Mission Corporate Strategy
Business Strategy Operations Strategy
Answer: B. Corporate Strategy
Q10
The four elements that form the heart of operations strategy include: Mission, distinctive
competence, objectives, and internal analysis Mission, distinctive competence, internal
analysis, and external analysis Mission, objectives, internal analysis, and external analysis
Mission, distinctive competence, objectives, and strategic decisions
Answer: D. Mission, distinctive competence, objectives, and strategic decisions
Q11
The operation objectives of quality, cost, delivery, and flexibility are: Mutually exclusive
Independent of each other Connected Unique
Answer: C. Connected
Q12
Make or buy is an example of what type of strategic decision? Inventory Process Quality
Capacity
Answer: B. Process
, Q13
A decision is made that suppliers will be chosen based on quality rather than cost. This is an
example of which of the following? Objective Mission Distinctive Competence Strategic decision
Answer: D. Strategic decision
Q14
T / F - A corporate strategy drives the business strategy, which in turn drives the operations
strategy in an organization.
Answer: True
Q15
T / F - The business strategy can be derived from a firm's distinctive competence that is difficult
for competitors to copy or imitate.
Answer: True
Q16
T / F - Imitative products have low profit margins and fairly predictable demand.
Answer: True
Q17
The market-pull view of new product innovation is to: "Pull" the products into the market as fast
as possible Develop products that the company can sell, based on customer needs Market
whatever the company makes best Make new products appealing through innovative packaging
Answer: B. Develop products that the company can sell, based on customer needs
Q18
Which of the following is NOT part of the new-product development process? Concept
development Product design Development of the marketing strategy Pilot production/testing
Answer: C. Development of the marketing strategy
Q19
Process design: Is the way new product ideas are developed Is the next stage after product
design Is considered less important to a company than product design Should occur at the
same time as product design
Answer: D. Should occur at the same time as product design
Q1
Why is operations
Answer: B. Operations management refers to service as well as
Q2
The four decision areas in operations management are: Planning, technology, inventory, and
control Process, quality, capacity, and inventory Process, quality, technology, and capacity
None of these
Answer: B. Process, quality, capacity, and inventory
Q3
The contemporary operations themes signify that: More emphasis should be placed on
manufacturing than on service industries Every operation should be externally directed to meet
the customers' requirements Operations decisions should precede decisions in other functions
in an organization To be competitive, strategies for operations should exclude broader supply
chain issues
Answer: B. Every operation should be externally directed to meet the customers'
requirements
Q4
The essence of operations management can be described by: Process, capacity, and people
Decisions, function, and process Planning, control, and organization Integrated planning and
control
Answer: B. Decisions, function, and process
Q5
The three primary functions that exist in most business organizations are: Operations,
accounting, and finance Operations, production, and finance Production, marketing, and human
resources Operations, finance, and marketing
Answer: D. Operations, finance, and marketing
,Q6
T / F - The process view provides a basis for viewing an entire business as a system of
interconnected processes.
Answer: True
Q7
T / F - As price increases and benefits remain constant, the value of a product increases.
Answer: False
Q8
T / F - Best practices in operations are best for all organizations.
Answer: False
Q9
At Disney, "making people happy" is an example of: Operations Mission Corporate Strategy
Business Strategy Operations Strategy
Answer: B. Corporate Strategy
Q10
The four elements that form the heart of operations strategy include: Mission, distinctive
competence, objectives, and internal analysis Mission, distinctive competence, internal
analysis, and external analysis Mission, objectives, internal analysis, and external analysis
Mission, distinctive competence, objectives, and strategic decisions
Answer: D. Mission, distinctive competence, objectives, and strategic decisions
Q11
The operation objectives of quality, cost, delivery, and flexibility are: Mutually exclusive
Independent of each other Connected Unique
Answer: C. Connected
Q12
Make or buy is an example of what type of strategic decision? Inventory Process Quality
Capacity
Answer: B. Process
, Q13
A decision is made that suppliers will be chosen based on quality rather than cost. This is an
example of which of the following? Objective Mission Distinctive Competence Strategic decision
Answer: D. Strategic decision
Q14
T / F - A corporate strategy drives the business strategy, which in turn drives the operations
strategy in an organization.
Answer: True
Q15
T / F - The business strategy can be derived from a firm's distinctive competence that is difficult
for competitors to copy or imitate.
Answer: True
Q16
T / F - Imitative products have low profit margins and fairly predictable demand.
Answer: True
Q17
The market-pull view of new product innovation is to: "Pull" the products into the market as fast
as possible Develop products that the company can sell, based on customer needs Market
whatever the company makes best Make new products appealing through innovative packaging
Answer: B. Develop products that the company can sell, based on customer needs
Q18
Which of the following is NOT part of the new-product development process? Concept
development Product design Development of the marketing strategy Pilot production/testing
Answer: C. Development of the marketing strategy
Q19
Process design: Is the way new product ideas are developed Is the next stage after product
design Is considered less important to a company than product design Should occur at the
same time as product design
Answer: D. Should occur at the same time as product design
