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CIPS Operations Management Sample Questions:

1. A company should aim to achieve all its performance objectives at the same time to ensure success. Is this TRUE?

A) no- companies should set performance criteria each month and this may change depending on market conditions
B) yes- focusing on all objectives simultaneously is the only way to achieve a higher profit and market share
C) no- companies should select which objectives should take precedent over others depending on the focus of the organisation at that time
D) yes- a company should focus on all criteria at each stage of the product lifecycle

2. Which of the following are operations management activities? Select THREE

A) development of new products
B) process selection
C) job design
D) capacity planning
E) materials management

3. Where a company produces many different but similar products, what is this dimension known as?

A) high variety
B) low variation
C) high variation
D) low variety

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

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

5. There are four manufacturing companies located on Seashell Industrial Estate. Each company creates a different product and employs a different maintenance approach to its operations. For each company, select the corresponding maintenance approach and the key operating process characteristic.
Company 1: This company creates craft beer and offers customers a tour of the brewery for a small charge. The brewing equipment is serviced monthly and the brewery is kept extremely clean. All equipment is labelled with the last service date.
Company 2: This company produces seasonal items such as Easter Eggs and Christmas Cake. The equipment has a control panel where lights will flash red advising staff to check oil levels and components. Staff can then report issues to the maintenance team if remedial work is required. Product demand fluctuates throughout the year.
Company 3: This equipment does not often break down and is only fixed when it is reported by staff as no longer working. Company 3 creates toys, providing a large range of product sizes and colours based on different customer requirements.
Company 4: Parts of the machine are serviced quarterly but in general, the machine is left to run its course and is then replaced when it is no longer financially viable to fix. The company produces cereal and the operating process is focused on the quantity produced and therefore uses standardised processes.
Complete the table below by listing the maintenance approach and operating process characteristic for each company. Each response should only be used once: preventative maintenance, run to breakdown maintenance, condition-based maintenance, mixed maintenance, volume, visibility, variation, variety

Which of the following will you put into box 1?

A) preventative maintenance
B) run-to-breakdown maintenance
C) mixed maintenance
D) condition-based maintenance

Solutions: