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web.groovymark@gmail.com
- December 12, 2024
Question 41
What is meant by ‘tier one suppliers’?
a) Suppliers who provide services rather than products
b) Suppliers who provide materials directly to the manufacturer
c) Suppliers who only distribute finished products to consumers
d) Suppliers who handle raw materials from the source
Answer: b) Suppliers who provide materials directly to the manufacturer
Explanation: Tier one suppliers deliver materials directly to manufacturers for processing.
Question 42
What does the term ‘productivity’ measure in operations management?
a) The total revenue generated from sales
b) The efficiency of converting inputs into outputs
c) The number of employees required to meet production goals
d) The percentage of profit per unit sold
Answer: b) The efficiency of converting inputs into outputs
Explanation: Productivity measures how efficiently a company uses its resources to produce outputs.
Question 43
What does ‘utilization’ measure?
a) The total number of units produced per day
b) The proportion of time a resource is actually used
c) The number of hours worked by employees
d) The total output of all production resources combined
Answer: b) The proportion of time a resource is actually used
Explanation: Utilization measures how effectively a resource, such as machinery or labor, is being used during production.
Question 44
What is ‘vertical integration’ in a business context?
a) Acquiring companies in the same industry
b) Merging with suppliers or distributors in different industries
c) Acquiring a competitor in the same field
d) Expanding into unrelated markets
Answer: b) Merging with suppliers or distributors in different industries
Explanation: Vertical integration involves acquiring suppliers or distributors, helping a company control its supply chain more effectively.
Question 45
What is the purpose of a ‘feasibility analysis’ in project management?
a) To determine the skills needed for a project
b) To identify the stakeholders involved in the project
c) To evaluate the cost, benefits, and risks of a project
d) To create a detailed project timeline
Answer: c) To evaluate the cost, benefits, and risks of a project
Explanation: A feasibility analysis helps to determine if a project is viable by evaluating its costs, benefits, and potential risks.
Question 46
What is a ‘job enrichment’ strategy?
a) Assigning more responsibility and authority to an employee
b) Hiring more employees to perform the same job
c) Reducing the workload of overburdened employees
d) Offering employees higher salaries for performing the same tasks
Answer: a) Assigning more responsibility and authority to an employee
Explanation: Job enrichment aims to increase employee satisfaction by providing more challenging tasks and greater responsibility.
Question 47
What is ‘Six Sigma’?
a) A methodology for enhancing creativity in project management
b) A set of standards for managing environmental responsibility
c) A technique focused on minimizing defects in production
d) A strategy for reducing overall project costs
Answer: c) A technique focused on minimizing defects in production
Explanation: Six Sigma is a method used to improve processes by reducing the number of defects to as low as 3.4 per million.
Question 48
What does ‘effective capacity’ refer to?
a) The maximum output under ideal operating conditions
b) The expected capacity under current operating constraints
c) The total available capacity in a production plant
d) The amount of output that is delivered to consumers
Answer: b) The expected capacity under current operating constraints
Explanation: Effective capacity is the realistic output that can be achieved given current operational limitations, as opposed to ideal conditions.
Question 49
What is a ‘control chart’?
a) A graph that shows whether a process is in control or out of control
b) A chart that displays project deadlines
c) A diagram that shows production flow
d) A tool to measure employee performance
Answer: a) A graph that shows whether a process is in control or out of control
Explanation: Control charts help track the stability of processes over time by showing whether the process stays within acceptable limits.
Question 50
What does ‘horizontal integration’ refer to?
a) Acquiring companies that operate at different stages of production
b) Expanding into different industries unrelated to the current business
c) Acquiring companies that operate in the same industry
d) Merging with suppliers or distributors
Answer: c) Acquiring companies that operate in the same industry
Explanation: Horizontal integration involves merging with or acquiring companies in the same industry to expand market share and reduce competition.
