BSB10192-2 & BSB10214-2 Sample paper Operations Management Date Sample paper Time Allowed 2.00 hours Exam No BSB10192-2 & BSB10214-2 Venue Stoke / Stafford / SURF network Weighted 100% Advised 40 minutes for Section A, 80 minutes for Section B Examiner Roy Edwards Session Sample paper Closed Book Examination Page 1 of 25 BSB10192-2 & BSB10214-2 Sample paper Instructions to candidates: Section A 30 Multiple choice questions @1.5% each 12 Yes/No questions @ .5% each Section B 7 Short answer questions @ 7% each You should answer all questions Section B – Short answer questions (50%) Section B of the examination paper will contain 7 questions only. These questions have been selected, by us, from the pre-published list of 10 possible questions previously available. You will be required to write answers to all 10 of these questions. It is expected that your response to each question would be no more than 150 words, This exam paper has the requisite spaced lines for each of the written answers. Only in exceptional circumstances will additional answer books be accepted and these should be clearly marked in the usual way with your student name and number You will NOT be allowed to take material, notes, articles or books into the examination with you. Please note that higher marks will be given where the exam paper as a whole reflects: Independent thought and ability to apply operations concepts to practical effect. A structured approach that utilises appropriate terminology and relevant models and frameworks where necessary. A good balance between the practical and theoretical aspects. Accuracy and clarity of style in presenting answers. This is a closed book examination and Staffordshire University regulations for examinations apply. Page 2 of 25 BSB10192-2 & BSB10214-2 Sample paper Module: Operations Management Re: Multiple Choice Sections – Section A Instructions to students 1) Enter student name and number at the top of the answer sheet 2) This test paper contains 30 multiple choice questions, each carrying equal marks @ 1.5% each plus 10 yes/no type questions @.5% each 3) Candidates must answer all the questions on this paper. 4) Select the ONE letter corresponding to the MOST APPROPRIATE answer for each question, and place an ‘X‘ in the appropriate box on the answer grid. 5) Stop immediately when time is up. 6) You may not leave the room before the allocated time is up. 7) The answer sheet and the question booklet must be handed in at the end of the test. [Example] 1. The common name for the system which allows employees to choose their starting time, finishing time, and to vary their lunch-break, within agreed parameters is A) Varytime B) Flexitime C) Overtime D) Personal time In this example, the correct answer is ‘B) Flexitime’ and should be indicated as: A Question 1 B x C D Mark If you wish to change your answer, the original answer must be clearly crossed out so that the desired answer is absolutely clear. If there is any doubt as to your desired answer, that response will receive no marks. Page 3 of 25 BSB10192-2 & BSB10214-2 Sample paper Operations Management - Multiple question answer Sheet Please write student name: ___________________________ Student Number: ___________________________ Date of Exam: Sample Paper A B C Assessor: Roy Edwards D Mark A Question 1 Question 21 Question 2 Question 22 Question 3 Question 23 Question 4 Question 24 Question 5 Question 25 Question 6 Question 26 Question 7 Question 27 Question 8 Question 28 Question 9 Question 29 Question 10 Question 30 Question 11 Question 31 Question 12 Question 32 Question 13 Question 33 Question 14 Question 34 Question 15 Question 35 Question 16 Question 36 Question 17 Question 37 Question 18 Question 38 Question 19 Question 39 Question 20 Question 40 SCORE TOTAL SCORE Page 4 of 25 B C D Mark BSB10192-2 & BSB10214-2 Sample paper Operations Management MULTIPLE CHOICE TEST SECTION Note: In questions where the word “NOT” is emphasised, the correct answer is the statement that is not true in the given context. This is often most easily found by first identifying the true statements. 1 Operations can be classified according to the degree of variation in demand and visibility of the operation as well as their volume and variety of production. Which of the following operations would be classified as high variation and high visibility A) B) C) D) A fast food restaurant A carpenter A high street branch of a bank A family doctor 2 Which of the following concerning the term customer in operations management is true Manufacturing systems can have only internal customers because other departments are responsible for serving the external customer All customers are internal in manufacturing and external in services Only service organizations have external customers because service is provided in the presence of a customer. Customers can be internal or external in both manufacturing and service operations A) B) C) D) 3 Which of the characteristics below is NOT typically used to help classify operations: A) B) C) D) Visibility Variety Value-added Variation 4 The ( ) characteristic of a service is best illustrated by an empty airline seat or hotel room not occupied A) B) C) D) Time perishability Labour intensity Intangibility Simultaneous production and consumption 5 Which among the following strategies is used by fast food restaurants to reduce costs? A) B) C) D) Increased advertising via the Internet Allowing customers to play an active part in the service process Increase prices Increasing menu items to cater to varying tastes 6 An order-winning characteristic could be described as : Page 5 of 25 BSB10192-2 & BSB10214-2 Sample paper A) B) C) D) A factor which significantly contributes to winning business A factor which may be of significance in other parts of the organisation A factor which has to be above a particular level to be considered by the customer A factor which is at a higher level than the standard for the industry 7 All of the following are benefits of a multi-site type of expansion except A) B) C) D) Ability to reach a mass market quickly Reduced financial risk from local economic downturn Pre-emption of competitors by capturing premium locations Retention of control 8 Service process can be classified according to each of the following, except A) B) C) The degree of customer satisfaction The degree of customer contact The objective of the service activity defined as goods, information or people The degree of service flexibility, ranging from standard to customised service D) 9 When there is a high volume/ low variety mix, there is typically A) B) C) D) High Customisation High Contact time Small volumes of customer transactions Short customer transaction 10 Which of the following is true of process types? A) B) Mass services are similar to jobbing processes Service shops and batch are in a similar position, but one relates to manufacturing and the other to services Jobbing processes have higher process variety than professional services Professional services have lower variety, but higher volume than service shops C) D) 11 Efficiency in resource usage is hard to obtain in service operations because of A) B) C) D) buffering demand variability intangible components inter-functional co-operation 12 Which of the following phrases best describes a mass process type? Page 6 of 25 BSB10192-2 & BSB10214-2 Sample paper A) B) C) D) Low volume, high variety Finished goods are usually made to order Processes are designed to perform a wide variety of activities High fixed costs, low variable costs 13 Which of the following is NOT a strategy for managing supply? A) B) C) D) Developing complementary services Using part-time employees Forecasting demand Scheduling employee shifts 14 A) B) C) D) Which one of the following conditions favours a level strategy for manufacturing firms. High availability of workers Short shelf life of inventory Highly automated equipment and a make-to-stock strategy High inventory-holding cost 15 Purpose of differential pricing is to: A) B) C) D) Make peak period usage unattractive Charge customers according to their ability to pay Make off-peak usage attractive Adjust capacity to demand 16 Under the ABC system of inventory priorities, a Class A item is : A) The 20% of high-value items that account for around 20% of the total stock value The 80% of high-value items that account for around 20% of the total stock value The 20% of high-value items that account for around 80% of the total stock value The 80% of high-value items that account for around 80% of the total stock value B) C) D) 17 The model of the physical goods supply chain does NOT contain which of the following elements A) B) C) D) Competitor Distributor Retailer Customer 18 Which of the following is NOT a factor that can significantly reduce time to market for a product or service Page 7 of 25 BSB10192-2 & BSB10214-2 Sample paper A) B) C) D) Separation of the design of products and services from the design of the processes which will produce them An early resolution of design conflict and uncertainty Simultaneous development of the various stages in the overall process An organisational structure which reflects the development project 19 In a supply chain for products with low profit margins, the focus is likely to fall on : A) B) C) D) The increase in variety The number of deliveries to end customers The reduction of inventory The reduction of suppliers 20 The benefits of team working do NOT include which one of the following? A) B) C) D) Increasing satisfaction by allowing individuals to contribute more effectively Improving quality and encouraging innovation Eliminating workplace stress Improving productivity through enhanced motivation 21 Job enrichment : A) Means that staff are moved periodically from task to task in order to increase variety and interest Involves allocating a wider range of similar tasks to individuals Increases the amount of money employees are paid for completing a unit of work Involves giving employees work with a greater degree of responsibility and autonomy B) C) D) 22 In an organisation that has empowered its front-line employees the middle managers become A) B) C) D) Obsolete Inspectors Facilitators Supervisors 23 The Hackman Oldham approach to job design is said to produce the following performance outcomes? A) B) C) D) The ability to do a repetitive job very well Commitment to the organisations mission Results orientation through incentives and profit related pay Low absenteeism and turnover 24 Which of the following dimensions of service quality is usually seen as the most important to customers in the Servqual model? Page 8 of 25 BSB10192-2 & BSB10214-2 Sample paper A) B) C) D) Empathy Assurance Reliability Tangibles 25 Warranty service, processing of complaints, and costs of litigation are examples of A) B) C) D) Internal failure costs External failure costs Appraisal costs Prevention costs 26 An operations view of quality is ‘quality is consistent conformance to customers’ expectations’. By this it is meant that : A) B) The product will be seen as synonymous with innate excellence There are clear specifications consistently met that provide customers with what they would realistically believe they should receive The product must be right every time, irrespective of cost to the operation Anything the customer wants and desires should be provided by the organisation C) D) 27 Which of the following is NOT usually considered as a quality characteristic? A) B) C) D) aesthetic appeal reliability durability repeatability 28 The meaning of quality has evolved greatly over the past century. Which of the following statements best exemplifies the current meaning of quality? A) Continuous improvement, competitive advantage and meeting or exceeding customer requirements now and in the future Inspection of every item produced to ensure exact customer specifications are met Production of parts within control limits and use of statistical process control tools to ensure consistent meeting of customer specifications The collaboration of all functional disciplines for the purpose of designing and offering quality products or services B) C) D) 29 The implementation of TQM does NOT involve A) B) C) D) prevention rather than cure strong action to discipline employees who cause poor quality emphasis on process management top management commitment and involvement Page 9 of 25 BSB10192-2 & BSB10214-2 Sample paper 30 The three important management issues for operations managers dealing with their international network of operations are : A) B) C) D) Culture, co-ordination and communication Customers, suppliers and transformation resources Frequently flyer schemes, expense accounts and lightweight luggage None of the above 31 Maintaining the quality of products and services is easier when production or delivery is closer to home True False A) B) 32 A) B) An operations strategy covers a relatively short time horizon, whereas a business strategy covers a relatively long time horizon True False 33 The hierarchical model of strategy in the top-down perspective is intended to represent the way strategies are usually formulated A) B) True False 34 Environment constraints tend to affect the design of products and services, but not the design of the process which delivers them A) B) True False 35 Capacity levels in excess of demand could cause underutilisation. A) B) True False 36 The costs of inventory outweigh the benefits of holding stock A) B) True False 37 A) B) A supply chain encompasses all the activities associated with the flow and transformation of goods and services except information flows True False 38 Jobs that are designed purely on the division of labour, Page 10 of 25 BSB10192-2 & BSB10214-2 Sample paper scientific management or ergonomic principles can alienate the people performing them. A) B) True False 39 Reliability means the total useful life of the product or service, assuming occasional repair or modification. A) B) True False 40 TQM approach asserts that there is an optimum amount of quality effort to be applied in any situation, which minimises the total costs of quality A) B) True False Section B – Short answer questions (50%) Section B of the examination paper will contain 7 questions only. These questions have been selected, by us, from the pre-published list of 10 possible questions previously available. You will be required to write answers to all 7 of these questions. It is expected that your response to each question would be no more than 150 words, This exam paper has the requisite spaced lines for each of the written answers. Only in exceptional circumstances will additional answer books be accepted and these should be clearly marked in the usual way with your student name and number Page 11 of 25 BSB10192-2 & BSB10214-2 Sample paper Question 1 Relate Schroeder’s 5 decision areas to relative operations situations within a retail bank. Page 12 of 25 BSB10192-2 & BSB10214-2 Sample paper Question 2 By using a relevant example briefly explain the concept of time perishability identifying methods that Operations Managers could use to reduce its impact on the organisation. Page 13 of 25 BSB10192-2 & BSB10214-2 Sample paper Question 3 Describe how operations management can contribute to the success of an organisation using IKEA as an example. Page 14 of 25 BSB10192-2 & BSB10214-2 Sample paper Question 4 Relating to an organisation of your choice identify typical differences between strategic and operational decisions Page 15 of 25 BSB10192-2 & BSB10214-2 Sample paper Question 5 Identify a product/service that would typically be produced or delivered within a ‘process layout’ and describe the product/service characteristics together with two of the process design features Page 16 of 25 BSB10192-2 & BSB10214-2 Sample paper Question 6 Explain why the design of products & services and the design of their processes are interrelated and should be carried out concurrently. Page 17 of 25 BSB10192-2 & BSB10214-2 Sample paper Question 7 Use an organisation of your choosing briefly outline the costs/benefits associated with holding inventory Page 18 of 25 BSB10192-2 & BSB10214-2 Sample paper Question 8 Using organisational examples of your choosing, what are some of the consequences of under-utilisation and being over-stretched with respect to the management of capacity? Page 19 of 25 BSB10192-2 & BSB10214-2 Sample paper Question 9 “A major responsibility for all managers in the future will be the support of company based systems designed to ensure the quality of product or services”. Discuss why quality has become such a live issue today? Page 20 of 25 BSB10192-2 & BSB10214-2 Sample paper Page 21 of 25 BSB10192-2 & BSB10214-2 Sample paper Question 10 Briefly explain the importance of corporate social responsibility, with some examples of voluntary actions a business can take to address interests of the business and the wider society. Page 22 of 25 BSB10192-2 & BSB10214-2 Sample paper Spare page in case you need to attempt the question again Not to be used as additional space for other questions Question ___ Page 23 of 25 BSB10192-2 & BSB10214-2 Sample paper Spare page in case you need to attempt the question again Not to be used as additional space for other questions Question ___ Page 24 of 25 BSB10192-2 & BSB10214-2 Sample paper Page 25 of 25