Q#1: The hierarchy and sequence of planning and decision-making is mission, organizational strategy, tactics, and operational decisions.
(A) True
(B) False
Answer: (A) True
Q#2: Strategy includes both organizational and functional strategies.
(A) True
(B) False
Answer: (A) True
Q#3: Organizational strategy should be determined without considering functional area strengths and weaknesses.
(A) True
(B) False
Answer: (B) False
Q#4: Mission statements should be as specific as possible regarding how they will be accomplished.
(A) True
(B) False
Answer: (B) False
Q#5: Improving efficiency will guarantee a similar improvement in productivity.
(A) True
(B) False
Answer: (B) False
Q#6: As long as we match a competitor on quality and price we will gain market share.
(A) True
(B) False
Answer: (B) False
Q#7: Environmental scanning is a search for events or trends that present threats or opportunities.
(A) True
(B) False
Answer: (A) True
Q#8: Standardization has the advantage of reducing variability.
(A) True
(B) False
Answer: (A) True
Q#9: Traditional strategies of business organizations have tended to emphasize cost minimization or product differentiation.
(A) True
(B) False
Answer: (A) True
Q#10: The majority of textbook deals with tactical operations supporting functional strategies.
(A) True
(B) False
Answer: (A) True
Q#11: Quality-based strategies focus on inspection of products before delivery.
(A) True
(B) False
Answer: (B) False
Q#12: Time-based strategies focus on reducing time required for activities.
(A) True
(B) False
Answer: (A) True
Q#13: Functional strategies should be designed to directly support a firm’s mission.
(A) True
(B) False
Answer: (B) False
Q#14: Companies are required to use environmental scanning due to regulations.
(A) True
(B) False
Answer: (B) False
Q#15: Balanced Scorecard is an attractive tool for strategy formation.
(A) True
(B) False
Answer: (B) False
Q#16: One major shortcoming of Balanced Scorecard is sustainability issues.
(A) True
(B) False
Answer: (A) True
Q#17: Competitiveness doesn’t include:
(A) Productivity
(B) Effectiveness
(C) Profitability
(D) Operations Strategy
(E) Operations Management
Answer: (D) Operations Strategy
Q#18: Product design and location decisions are examples of:
(A) Strategic
(B) Tactical
(C) Operational
(D) Customer focused
(E) Design
Answer: (A) Strategic
Q#19: Scheduling personnel is an example of:
(A) Mission implementation
(B) Operational decision
(C) Organizational strategy
(D) Functional strategy
(E) Tactical decision
Answer: (B) Operational decision
Q#20: Productivity is expressed as:
(A) Output plus input
(B) Output minus input
(C) Output times input
(D) Output divided by input
(E) Input divided by output
Answer: (D) Output divided by input
MCQs (2nd Set)
Q#21: Which activity is unnecessary in product design process?
(A) Translate customer needs into requirements
(B) Refine existing products
(C) Develop new products
(D) Manage purchasing activities
Answer: (D) Manage purchasing activities
Q#22: Capacity planning focuses on:
(A) Cost
(B) Worker holidays
(C) CEO compensation
(D) None of the above
Answer: (D) None of the above
Q#23: Which is NOT assumption of Cost Volume Analysis?
(A) One product is not involved
(B) Everything produced can be sold
(C) Variable cost per unit is constant
(D) Fixed costs do not change
Answer: (A) One product is not involved
Q#24: Which does NOT fall under EPQ assumptions?
(A) Only two or more items involved
(B) Annual demand is known
(C) Usage rate is constant
(D) Usage occurs continually
Answer: (A) Only two or more items involved
Q#25: Advantage of process layout:
(A) Equipment is less costly
(B) Low unit cost
(C) Labor specialization
(D) Low material handling cost
Answer: (A) Equipment is less costly
Q#26: Common types of operations include:
(A) Continuous processing
(B) Intermittent processing
(C) Automation
(D) All of the above
Answer: (D) All of the above