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CIPS Operations Management Sample Questions (Q123-Q128):

NEW QUESTION # 123
According to the Taguchi Loss Function there are two types of costs incurred when there is an issue with quality. What are these?

Answer: B

Explanation:
The correct answer is private costs and social costs. Private costs include internal costs to the business (such as downtime, loss of staff/ money etc) and social costs affect the community and environment. P.133


NEW QUESTION # 124
An 'Order Qualifying' Objective contributes to the success of a business in that it is a criteria that will guarantee a customer will purchase an item. Is this sentence TRUE?

Answer: A

Explanation:
3 is correct- the sentence is false. 'Order Qualifying' is 'not a major factor in determining business success but plays a role in determining whether a customer will consider buying from the business or not'. This is a direct quote from p.43. 'Order Winners' is something that will guarantee a customer buys that product.


NEW QUESTION # 125
Below are details of 4 local manufacturing companies. For each company you must decide what the main objective is for the organisation and what layout their manufacturing plant has.
Company 1: This company creates large, delicate products which are hard to move. The main aim of the company is to stand out from competitors due to the superior level of materials used and by using the latest forms of technology to create the items.
Company 2: This company produces 72 different items and has designated zones within its premises for the creation of each item. The zones are organised based on the technology used and some products may be passed between different zones to be completed. The company creates many different items in response to changing customer demands, with many product lines only lasting a single season.
Company 3: Company 3 creates one product which flows along a single production line, with staff members adding to the product on four different occasions. The company must produce a high volume of this singular product in order to break even. Therefore, there is always a steady flow of items through the plant and it is important there is no stoppage in production.
Company 4: This company produces small batches of products, as and when they are ordered by customers. Due to uncertainty in demand, a high profit margin is added to the cost of each item. Teams in the factory are grouped into different areas depending on the technological process they are using.
Complete the table below by listing the objective criteria and plant layout for each company. Each response should only be used once: flexibility, speed, quality, cost, functional layout, cell layout, product layout, fixed-position layout

Which of the following will you put into box 4?

Answer: B

Explanation:
The correct answers are as follows:


NEW QUESTION # 126
Many companies choose locations for manufacturing facilities in low-cost countries. What is the benefit for a company of doing this?

Answer: A

Explanation:
2 is the correct answer- this is taken from p.54 'site selection'. Option 1 is incorrect because low-cost countries are not located close to customers- products have to be shipped internationally. Option 3 is incorrect as low-cost countries tend to have lower environmental and ethics standards. Option 4 is incorrect because being far from customers isn't a benefit.


NEW QUESTION # 127
Which of the following are considered 'transformed resources' and an input into the Operations Process (input- processoutput)?
Select THREE

Answer: A,C,D

Explanation:
Customers, Raw Materials and Information are inputs. This is from p.44-45. Raw materials is the obvious one- it's the input in manufacturing and is transformed into a finished good. Information is an input in the service industry- for example a lawyer or an accountant requires information in order to prepare their case. Customers is the other correct answer and is an input in things like hairdressing (you can't cut hair without a customer's head!). Employees are considered transforming inputs not transformed resources (p.45). Money is also not an input as it isn't converted into an output.


NEW QUESTION # 128
......

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