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CIPS Operations Management Sample Questions:

1. Terrance is an Operations Director at a pharmaceutical company which produces vaccines. He has been made aware of a malfunctioning piece of equipment with a Mean Time between Failures rating of 2 days. What characteristic of the machinery is being measured?

A) availability
B) cost
C) reliability
D) durability

2. Which of the following do you need to know in order to work out the gross profit margin of an item? Select TWO

A) sales volume
B) costs of goods sold
C) revenue
D) net profit

3. George has recently been hired as the new Operations Manager at a cake factory. He has 10 years; experience but his most recent employment was as an Operations Manager in an accountancy firm. George believes that the skills and responsibilities of an Operations Manager is the same regardless of the organisation he works for. Which of the following would be one of these responsibilities? Select TWO

A) create competitive advantage
B) manage a team
C) keep customers happy
D) increase profit

4. Which of the following would you likely find on a Process Control Chart which is being used to monitor the quality of products manufactured in a factory?

A) frequency of defects
B) upper and lower control limits
C) different activities completed and the amount of slack available in each activity
D) arrows showing the flow of goods

5. 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 2?

A) cost
B) quality
C) speed
D) flexibility

Solutions: