Upwork OPERATION MANAGEMENT TEST 2016

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1. If a company is commissioned to build a bridge, it will use computer modeling as part of the design process. Which of the following would be benefits of computer modeling in this scenario?
i)It is cheaper than building physical models.
ii)It allows parameters to be rapidly adjusted and tested.
iii)It guarantees that the finished product will perform as intended.
Answers:
  1. None of the above
  2. i only
  3. ii only
  4. iii only
  5. i and ii only
  6. i and iii only
  7. ii and iii only
  8. All of the above
2. Which of the following is NOT an element in the ‘Waterfall Model’?
Answers:
  1. Requirements
  2. Design
  3. Implementation
  4. Verification
  5. Modification
  6. Maintenance
3. Which of the following statements is/are true?
i)The ‘Six Sigma’ methodology developed by Motorola is about reducing time to market.
ii)The ‘Capability Maturity Model’ relates specifically to software engineering.
Answers:
  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.
4. The phenomenon where, in the log run, unit costs increase as the production volume increases is known as:
Answers:
  1. Disparity of costs
  2. Economy of scale
  3. Diseconomy of scale
  4. Elastic pricing
5. Which of the following refers to an approach to reducing production costs developed by Toyota?
Answers:
  1. Raw production
  2. Lean production
  3. Base production
  4. Mass production
6. What does the term ‘kaizen’ refer to?
Answers:
  1. Continuous improvement
  2. Introducing a flatter management structure
  3. Work ethics
  4. Up-skilling employees
7. Which of the following statements is/are true?
i)A manufacturing organization’s responsibility for its product ceases once it has been delivered to a retailer.
ii)’Service integration’ refers to organizations forming partnerships to link their services.
Answers:
  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.
8. Which of the following elements of ‘marketing mix’ relates to distribution?
Answers:
  1. Product
  2. Place
  3. Pricing
  4. Promotion
9. The extent to which a company owns its suppliers and its buyers is known as:
Answers:
  1. monopolization
  2. specialization
  3. vertical integration
  4. diversification
10. Which of the following statements is/are true?
i)Systems engineering relates only to the technical aspects of projects.
ii)IDEF0 is a modeling language for software engineering.
Answers:
  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.
11. Under’ Principles of Organization’, what is meant by the expression ‘Unity of Control’?
Answers:
  1. That there should be a limit to the number of persons that can be supervised effectively by one boss.
  2. That the activities of the enterprise should be divided according to functions and assigned to persons according to their specialization.
  3. That the line of authority from the chief executive at the top to the first line supervisor at the bottom must be clearly defined.
  4. That each subordinate should have only one superior whose orders he has to obey.
12. What process would a design engineer use to ensure a product meets the user’s specifications?
Answers:
  1. Stakeholder Mapping
  2. Customer Relationship Management
  3. Product Attribute Verification
  4. Requirements Management
13. Which of the following is NOT characteristic of a primary industry?
Answers:
  1. Products tend to be sold directly to consumers.
  2. It often has a significant impact on the local environment.
  3. A low percentage of people in developed countries tend to be engaged in it.
  4. Productivity can be dramatically increased through mechanization.
14. Which of the following is NOT a benefit of monitoring performance?
Answers:
  1. Identifying problems becomes easier.
  2. Assessing the impact of new initiatives becomes easier.
  3. It helps the managers take appropriate decisions.
  4. It reduces administrative costs
15. Which of the following initiatives would a company expect to reduce its defect rate?
i)Increased training of staff
ii)Introducing simultaneous engineering
Answers:
  1. Both (i) and (ii)
  2. Only (i)
  3. Only (ii)
  4. Neither (i) nor (ii)
16. Comparing performance with high-performing competitors is known as:
Answers:
  1. benchmarking
  2. rival measurement
  3. market analysis
  4. status check
17. A ‘Just-In-Time’ approach to production involves ________.
Answers:
  1. closely monitoring the employees’ hours.
  2. faster delivery of products to customers.
  3. minimising the amount of unused stock.
  4. prioritising ‘schedule’ above other variables.
18. Which of the following is the best characterization of a decentralized organization?
Answers:
  1. The staff are no longer managed.
  2. The staff work unsupervised.
  3. The staff enjoy significant discretion.
  4. The staff are permitted only limited discretion.
  5. The staff do not have any discretion.
19. For targets to be effective, they should be ‘SMART’. Which of the following is not part of the acronym ‘SMART’?
Answers:
  1. Specific
  2. Measurable
  3. Achievable
  4. Rigid
  5. Time-bound
  6. They are all parts of the acronym.
20. Which of the following is an example of a secondary industry?
Answers:
  1. Mining
  2. Farming
  3. Fishery
  4. Oil refining
21. Which of the following statements is/are true?
i)’Economies of scale’ can be used to increase market share without cutting profit margins.
ii)’Diseconomies of scale’ may enable a company to achieve higher profit margins.
Answers:
  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.
22. Which of the following statements is/are true?
i)Increasing quality inevitably leads to higher production costs.
ii)Pareto charts show the values being plotted arranged in the ascending order
Answers:
  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.
23. The term ‘cell production’ refers to a situation in which:
Answers:
  1. manufacture takes place on an automated assembly line.
  2. workers work alongside others with the same skills.
  3. production is divided into self-contained units undertaken by separate teams.
  4. workers work individually on a particular stage of the production process.
24. A situation where there is one intermediary organization between the manufacturer and the consumer is known as:
Answers:
  1. three-level channel
  2. two-level channel
  3. one-level channel
  4. zero-level channel
25. Which of the following statements is/are true?
i)’Job’ production is associated with low unit costs.
ii)’Job’ production permits customers to request a particular specification.
Answers:
  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.
26. Who developed the fourteen key principles for transforming business effectiveness?
Answers:
  1. W. Edwards Deming
  2. Frederick Winslow Taylor
  3. Walter Shewhart
  4. Malcolm Baldridge
  5. Woodrow Wilson
27. Which of the following is a potential problem /are potential problems associated with benchmarking?
i)It leads to increased production costs.
ii)Necessary information is difficult to obtain.
iii)Organizations may not be directly comparable.
Answers:
  1. None of the above
  2. i only
  3. ii only
  4. iii only
  5. i and ii only
  6. i and iii only
  7. ii and iii only
  8. All of the above
28. Which of the following would be a sensible response/sensible responses to a situation where a company finds that demand for its product is outstripping supply?
i)Start a waiting list.
ii)Decrease prices.
iii)Attempt to boost capacity.
Answers:
  1. None of the above
  2. i only
  3. ii only
  4. iii only
  5. i and ii only
  6. i and iii only
  7. ii and iii only
  8. All of the above
29. Which of the following is a standard indicating a company’s approach to ‘quality’?
Answers:
  1. ISO 6000
  2. ISO 7000
  3. ISO 8000
  4. ISO 9000
30. To what does the term ‘purchasing economies of scale’ refer?
Answers:
  1. Where improved equipment is bought to enhance efficiency.
  2. Where costs are reduced through bulk buying.
  3. Where customers benefit from reduced prices.
  4. Where outside expertise is imported to boost productivity.
31. Which of the following is NOT part of the role of an industrial engineer?
Answers:
  1. Making processes more efficient.
  2. Improving the consistency of manufacturing quality.
  3. Making products easier to manufacture.
  4. Monitoring productivity
32. Which of the following products would be most suited to transportation by an airplane?
Answers:
  1. Canned goods
  2. Mail
  3. Electrical items
  4. Books
33. Which of the following would NOT be addressed as part of a ‘Quality’ improvement initiative?
Answers:
  1. Waste
  2. Target market
  3. Defect levels
  4. Delivery time
34. Organizations often outsource elements of their operations in order to improve profitability. Which of the following activities may NOT be outsourced�?
Answers:
  1. Marketing
  2. Project management
  3. Human Resources
  4. Core business
  5. Sales
35. Which of the following is NOT a stage in the product life cycle?
Answers:
  1. Development
  2. Introduction
  3. Infancy
  4. Growth
  5. Maturity
  6. Decline
36. Which of the following is a statistical measure of the ability of a process to deliver within the specification limits?
Answers:
  1. Capability Maturity Model
  2. Process Capability Index
  3. Production Output Norm
  4. Quality Assurance
37. Which of the following concepts developed by Dr Eliyahu Goldratt asserts that at any given time, there will be at least one factor hindering an organization’s performance?
Answers:
  1. Barriers to entry
  2. Hurdle hypothesis
  3. Problem analysis
  4. Theory of constraints
38. Which of the following statements is/are true?
i)Companies should always seek to hold large quantities of unused stock to ensure that production is not interrupted.
ii)Service-based companies generally hold more stock than manufacturing-based ones.
Answers:
  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.
39. Which of the following statements is/are true?
i)Distribution channels refer only to physical products.
ii)Under ‘selective distribution’, only a very limited number of retailers are allowed to sell a product in order to maintain exclusivity.
Answers:
  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.
40. Which one of the Maslow’s hierarchy of needs would primarily be addressed by introducing ‘team-based management’?
Answers:
  1. Physiological
  2. Social/belonging
  3. Security
  4. Self-actualization
41. Which of the following is an example of ‘job’ production?
Answers:
  1. A print run of 1,000 magazines
  2. Personalized birthday cakes
  3. Soup canning
  4. An order for 100 chairs
42. Which of the following is an alternative term for the ‘Scalar Principle’?
Answers:
  1. Chain of Command
  2. Personal ability
  3. Unity of Command
  4. Span of Control
  5. Unity of Direction
43. Which of the following statements is/are true?
i)A capital intensive production process is one that involves a relatively-high proportion of labor.
ii)Training staff can be an effective method of boosting productivity.
Answers:
  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.
44. Which of the following factors must be balanced against ‘schedule’ to assess the effectiveness of a process?
i)Quality
ii)Scale
iii)Cost
Answers:
  1. None of the above
  2. i only
  3. ii only
  4. iii only
  5. i and ii only
  6. i and iii only
  7. ii and iii only
  8. All of the above
45. Which of the following statements is/are true?
i)Implementing ‘team-based management’ may reduce output.
ii)’Team-based management’ is associated with the ‘Theory X’ approach.
Answers:
  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.
46. Which of the following is/are a benefit/benefits of introducing the ‘kaizen’ techniques?
Business
i)Increased staff motivation
ii)Reduced wastage
iii)More efficient processes
Answers:
  1. None of the above
  2. i only
  3. ii only
  4. iii only
  5. i and ii only
  6. i and iii only
  7. ii and iii only
  8. All of the above
47. What is the correct expansion of the acronym KPI?
Answers:
  1. Kinds of Product Information
  2. Key Performance Indicator
  3. Keen Productivity Implementation
  4. Keeping People Interested
48. A factory can produce 1000 units per day but has only been able to produce 800 units due to a lack of skilled staff. What will its capacity utilization be after a 10% productivity increase?
Answers:
  1. 880 units
  2. 900 units
  3. 960 units
  4. 88%
  5. 90%
  6. 96%
49. Which of the following is/are a disadvantage/disadvantages of gaining a quality award?
i)Loss of administrative time required to prepare and apply for certification.
ii)Increased requirement for record-keeping.
iii)Decreased brand image with customers.
Answers:
  1. None of the above
  2. i only
  3. ii only
  4. iii only
  5. i and ii only
  6. i and iii only
  7. ii and iii only
  8. All of the above
50. Which of the following statements is/are correct?
i)’Time and Motion’ studies seek to improve a process by increasing the number of steps involved.
ii)Decisions should be made only on the basis of quantitative data.
Answers:
  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.
51. Which of the following situations would NOT cause ‘diseconomies of scale’?
Answers:
  1. Increased communication costs
  2. Scarcity of raw materials
  3. Increased management costs
  4. Increased manufacturing output
52. What is meant by the term ‘industrial design’?
Answers:
  1. Making a mass-produced product aesthetically pleasing.
  2. Planning the machinery that will be required to manufacture a product.
  3. Ensuring that a product is simple enough to be suited to mass production.
  4. The visible use of metals in a product to accentuate its high-technology image.
53. Which of the following statements is NOT true?
Answers:
  1. Because errors creep in more easily when decisions are made on the basis of subjective judgement or past experience, using ‘Operations Research Techniques’ improves the likelihood of a good decision.
  2. ‘Operations Research Techniques’ can be effectively applied in many situations where the underlying variables cannot be quantified, e.g. situations involving human qualities and interpersonal relations.
  3. ‘Operations Research Techniques’ permit experimentation to take place without interfering with actual operations.
  4. ‘Operations Research Techniques’ make it possible to break down a complex large-scale problem into smaller parts that can be more easily diagnosed and manipulated.
54. Why would a design engineer perform ‘structural analysis’?
Answers:
  1. To assess whether the manufacturing process is optimized.
  2. To test what causes materials to fail.
  3. To determine whether a product can be simplified.
  4. To identify the individual components of a product.
55. Which of the following terms refers to the comprehensive management of the flow of goods from the producer to the consumer?
  1. Answers:
  2. Supply channel
  3. Logistics
  4. Transportation
  5. Warehousing
56. If a company invests in new equipment to make its production process more efficient, which of the following will be considered ‘opportunity costs’?
i)The cost of the new equipment.
ii)The anticipated additional revenue.
iii)The alternative improvements for which the capital might have been used.
iv)The interest that could have been earned on the capital.
Answers:
  1. i and ii only
  2. i and iii only
  3. i and iv only
  4. ii and iii only
  5. ii and iv only
  6. iii and iv only
57. Which of the following is/are typically qualitative measures?
i)Profit margin
ii)Oral customer feedback
iii)Share price
Answers:
  1. None of the above
  2. i only
  3. ii only
  4. iii only
  5. i and ii only
  6. i and iii only
  7. ii and iii only
  8. All of the above
58. A factory currently produces 1000 units at a unit cost of $3. If doubling output will decrease production costs by 20%, how much would it cost to produce 2000 units then?
Answers:
  1. $4,800
  2. $6,000
  3. $5,000
  4. $5,200
59. Which of the following distribution methods would be best suited to reach the customers who are unable to visit shops and want a broad range of products?
Answers:
  1. Door-to-door
  2. Wholesale
  3. Retail
  4. Catalogue
60. Which of the following is/are a variety/varieties of a ‘prototype’?
i)Visual prototype
ii)Form study prototype
iii)Proof-of-principle prototype
Answers:
  1. None of the above
  2. i only
  3. ii only
  4. iii only
  5. i and ii only
  6. i and iii only
  7. ii and iii only
  8. All of the above
61. Which of the following terms relates to ensuring that different elements of product development are undertaken at the same time rather than consecutively?
Answers:
  1. ‘Just-in-time’ production
  2. ‘Lean production’
  3. ‘Simultaneous engineering’
  4. ‘Concurrent development’
62. Which of the following methods would be used for the production of gas?
Answers:
  1. Batch
  2. One-off
  3. Continuous
  4. Cell
63. A company with 12 employees used to produce 600 units per week. Now with 16 employees, it produces 960 units per week. How much has each employee’s productivity increased?
Answers:
  1. 10%
  2. 15%
  3. 20%
  4. 25%
64. Which of the following is NOT a reason for selling products via wholesalers?
Answers:
  1. Higher prices can be charged by doing so than by selling directly to consumers.
  2. Transport costs for the manufacturer are reduced.
  3. The wholesalers have greater sales expertise.
  4. The manufacturer does not have to store unsold stock.
65. Which of the following statements is/are true?
i)Prototypes should be constructed using the same manufacturing processes as are intended for the final product.
ii)The cost of producing a prototype will generally be higher than the unit cost of the final product.
Answers:
  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.
66. A ‘balanced ________’ is a tool for evaluating organisational performance across the full range of factors.
Answers:
  1. scorecard.
  2. ledger.
  3. matrix.
  4. healthcheck.
67. Which of the following is an ‘output’-related measure?
Answers:
  1. The number of units produced per day
  2. The cost of raw materials
  3. Staff turnover
  4. The amount of investment in a plant
68. Which of the following statements are true?
i)It is not necessary for all measures to be presented to the senior management.
ii)The more KPIs an organization has, the more effective its performance measurement system will be.
Answers:
  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.
69. What is reducing the number of levels within an organization’s hierarchy known as?
Answers:
  1. Smoothing
  2. Delayering
  3. De-verticalization
  4. Simplifying
70. Which of the following describes the term ‘time-based management’?
Answers:
  1. Monitoring staff productivity with a stop-watch.
  2. Using IT-based tools to manage diaries.
  3. Prioritizing schedule above cost and quality.
  4. Reducing the time taken to develop, launch and manufacture a product.
71. Which of the following courses of action would NOT be a sensible response where capacity is being under-utilized due to lack of demand for products?
Answers:
  1. Increase production.
  2. Attempt to boost demand through marketing.
  3. Sell off unused capacity.
  4. Diversify into new products.
72. Which of the following statements is/are true?
i)A firm may choose to subcontract where its capacity exceeds demand.
ii)Subcontracting is an effective way of ensuring a high-quality product.
Answers:
  1. Both (i) and (ii) are true.
  2. Only (i) is true.
  3. Only (ii) is true.
  4. Neither is true.
73. Which two of the following are used to calculate an ‘efficiency ratio’?
i)profit margin
ii)expenses
iii)output
iv)revenue
Answers:
  1. i and ii only
  2. i and iii only
  3. i and iv only
  4. ii and iii only
  5. ii and iv only
  6. iii and iv only
74. Which of the following is NOT a feature of an effective organizational structure?
Answers:
  1. Clear line of authority
  2. Adequate delegation of authority
  3. More managerial levels
  4. Proper span of control
  5. Simple and flexible structure
75. Which of the following is NOT a benefit of ‘hub and spoke’ distribution?
Answers:
  1. Complicated operations can be carried out at the central hub.
  2. It generally leads to higher capacity utilization for the vehicles involved.
  3. It reduces the total number of routes traveled compared to a ‘point-to-point’ network.
  4. It reduces the number of miles traveled by each item.
76. Which of the following is/are a reason/reasons for undertaking ‘reverse engineering’?
i)To check that a product functions properly.
ii)To determine interoperability.
iii)To examine rival products.
Answers:
  1. None of the above
  2. i only
  3. ii only
  4. iii only
  5. i and ii only
  6. i and iii only
  7. ii and iii only
  8. All of the above
77. Which of these is NOT generally associated with a ‘Just-In-Time’ approach to production?
Answers:
  1. Reduced motivation among workers.
  2. Reduced storage costs.
  3. Improved cash flow.
  4. Increased vulnerability to the reliability of suppliers.
78. Which of the following is NOT a stage in the ‘Business Process Re-engineering Cycle’?
Answers:
  1. Identifying processes
  2. Reviewing, updating, analyzing ‘as-is’
  3. Designing ‘to-be’
  4. Testing and implementing ‘to-be’
  5. Reviewing, updating, analyzing ‘to-be’
79. What does the term ‘distribution chain’ refer to?
Answers:
  1. A way of organizing staff to make distribution more effective.
  2. A series of organizations involved in taking a product from the manufacturer to the consumer.
  3. The retail outlets at which a product is sold.
  4. A factor that hinders distribution.


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