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CIPS Operations Management Sample Questions:

1. Below are details of five companies who operate a Total Quality Management System (TQM). For each company, select the system used and identify which area of the Balanced Scorecard this relates to.
Company 1: The focus of this company is to gather real-time data to assess the quality of products created during the manufacturing process. There are tight budgets and reworking any defects will affect the bottom line.
Company 2: This company is concerned about how their products are received. They have recently completed market research focused on their client's feelings. The objective is now to improve the product's look and performance to meet these expectations.
Company 3: The focus of this company is defining the customer requirements and translating this into a high-quality specification and effective operational process.
Company 4: Within this company there is a group of 6 employees who meet regularly with the objective of reducing issues that arise in the manufacturing of products.
Complete the table below by listing the TQM System used and the relevant Balanced Scorecard criteria for each company. Each response should only be used once: Quality Circle, Statistical Process Control, Kansei Engineering, Quality Function Deployment, Finance Criteria, Business Process Criteria, Learning and Growth Criteria, Customer Criteria.

Which of the following will you put into box 2?

A) quality circle
B) quality function deployment
C) kansei engineering
D) statistical process control

2. Inventory Management is an important focus of operations within the Construction Industry. Is this TRUE?

A) no- inventory management is a key focus in the manufacturing industry only as raw materials are converted into outputs
B) yes- its important that materials are ordered to the correct timescale to ensure the project remains on track
C) yes- this is the most important aspect of managing a construction project
D) no- the construction industry does not require the storage of inventory

3. Which of the following items created by an organisation are intangible? Select TWO

A) Legal Advice provided by a solicitor
B) A cup of coffee from a restaurant
C) A massage given at a Spa
D) A shirt bought at a retail outlet

4. 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 1?

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

5. Operations Management is concerned with the management of resources in the production of tangible goods. Is this TRUE?

A) yes- operations management is ensuring a company has the correct resources to create goods
B) no - operations management can also be concerned with the creation of intangible goods
C) no- operations management is concerned with ensuring the organisation is profitable
D) yes- operations management ensures there are sufficient goods produced to meet customer demand

Solutions: