1. Which three of the following statements are correct?
a) All operations of all types of businesses produce goods or render services, or a
mixture of the two, by a process of transformation.
b) Transformed input resources comprise the following: materials, information
and customer/clients.
c) The difference between transforming and transformed input resources,
respectively, lies in their position in relation to theoutput resources.
d) A dominant transformed material resource, such as a factory plant, would be
found in all types of manufacturing operations.
e) After having gone through either materials, information or customer processing,
outputs emerge in the form of goods or services which are generally different
because of tangibility, storability, transportability and customer/client contact.
1) abc
2) bcd
3) cde
4) ade
5) abe
2. Which three of the following statements are incorrect?
a) The activities of production/operations management encompass five direct
responsibilities, namely to understand the operation=s strategic objectives, to
develop a production/operations strategy, to design, to plan and control, and
to improve the production/operations system.
b) The general model of production/operations management consists of two
components: an input-transformation process-output model, which has a
management overlay consisting of the direct and indirect responsibilities of
production/operations managers.
c) The production/operations system hierarchy consists of the internal reporting
relationships between high-level, middle-level and low-level managers,
supervisors and shop-floor workers.
d) An internal customer is a person or group of people who over many years
has/have reached the status of preferred trading party (ie VIP customer), while an
internal supplier has also reached preferred trading status and acts as an
M.
, extension of the primary business.
e) One of the advantages of buffering the production/operation system against
disruptions originating in the external environment is the business=s ability to
significantly reduce stocks of input and output resources.
1) abc
2) bcd
3) cde
4) abe
5) acd
3. Which one of the following statements is correct?
1) In order to understand the contribution of the production-/operations function to
the business, it is necessary to answer the following questions: What is the role
of or what part is the function expected to play in the business and how much can
personnel working in the production/operations section of the business influence
its budget?
2) The role of the production/operations function in a business is threefold, namely to
support, implement and drive the strategy of the business, and these roles
correspond with the function of acting as a follower@, an factor@ and a Leader.
3) In stage 3 of Hayes and Wheelwright=s four-stage model, the contribution of the
production/operations function to a business=s competitive position is neutral
and principally attempts to avoid making mistakes in its production-/operations
processes.
4) If the production/operations function plays the role of an effector@, this is in line
with Hayes and Wheelwright=s competitive position of internal neutrality.
5) The best@ position or role that the production/operations function may attain is one
where the function becomes bothinternally neutral and supportive and becomes
the best in the marketplace.
4. Which one of the following statements is incorrect?
1) The performance objectives of the production/operation system embody what
the expectations of the business towards this function are and what contribution it
could make to the business=s competitiveness or strategic direction.
2) Achieving the production/operations performance objectives of high quality, speed
and cost and greater flexibility and dependability helps the business to exploit
M.
, so-called Aproduction/operations-based advantages@
3) Production/operations-based advantages may be seen as the result of
something that the production/operations function did well and that contributes
to the long-term survival of the business.
4) A flexibility rather than a speed advantage could be gained by the business if
customers/clients receive their goods and services on the due dates as promised.
5) If the production/operations function of a business is able to reduce the total
transaction time it takes to complete a purchase, the beneficial result could be
regarded as speed advantage.
5. Which two of the following statements are correct?
a) The operation=s competitive role and position, together with the articulation of the
specific performance or strategic objectives it hopes to achieve, largely influence
the content of the production/operations strategy of the business.
b) The hierarchical position of the production/operations strategy in relation to
the corporate or business strategy depends on how management view the
potential of theproduction/operations function in contributing to the long-term
success of the business.
c) The process aspects of the production/operations strategy largely determine the
relative priority of the performance objectives of the business and further relate to
each of the specific decision areas in the design, planning and control, and
improvement of the production/operations management system.
d) The relative importance that a business attaches to specific performance
objectives is determined by the influence that customers/clients may have on the
business, its competitors and the stage of the business=s products or services in
their life cycles.
e) The operation=s infrastructural strategy areas are primarily influenced by the
design activities (ie similar to the Ahardware@ of a computer system) while
the structural strategy areas are influenced by the planning and control and
improvement activities (ie similar to the Asoftware@ of a computer system).
1) ab
2) bc
3) cd
4) ad
5) ae
M.
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