Production and Operation Management MCQs and Notes

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📊 Production and Operation Management
Q. Productivity tends to be more difficult to improve in the service sector because the work is _________________.
  • (A) often difficult to automate .
  • (B) typically labor intensive .
  • (C) frequently individually processed and customised.
  • (D) often an intellectual task performed by professionals.
💬 Discuss
✅ Correct Answer: (C) frequently individually processed and customised.
📊 Production and Operation Management
Q. The service sector has lower productivity improvements than the manufacturing sector because ___________.
  • (A) the service sector uses less skilled labor than manufacturing .
  • (B) the quality of output is lower in services than manufacturing .
  • (C) services usually are labor intensive .
  • (D) service sector productivity is hard to measure .
💬 Discuss
✅ Correct Answer: (C) services usually are labor intensive .
📊 Production and Operation Management
Q. Productivity can be improved by __________.
  • (A) increasing inputs while holding outputs steady .
  • (B) decreasing outputs while holding inputs steady .
  • (C) increasing inputs and outputs in the same proportion .
  • (D) decreasing inputs while holding outputs steady .
💬 Discuss
✅ Correct Answer: (D) decreasing inputs while holding outputs steady .
📊 Production and Operation Management
Q. Which of the following inputs has the greatest potential to increase productivity?
  • (A) labor .
  • (B) globalization .
  • (C) management .
  • (D) capital .
💬 Discuss
✅ Correct Answer: (C) management .
📊 Production and Operation Management
Q. The total of all outputs produced by the transformation process divided by the total of the inputs is __________.
  • (A) utilization .
  • (B) greater in manufacturing than in services .
  • (C) defined only for manufacturing firms .
  • (D) multi-factor productivity .
💬 Discuss
✅ Correct Answer: (D) multi-factor productivity .
📊 Production and Operation Management
Q. Productivity measurement is complicated by _____________.
  • (A) the competition\s output .
  • (B) the fact that precise units of measure are often unavailable .
  • (C) stable quality .
  • (D) the workforce size .
💬 Discuss
✅ Correct Answer: (B) the fact that precise units of measure are often unavailable .
📊 Production and Operation Management
Q. Capacity decisions have a direct influence on performance of production system in respect of ________
  • (A) delivery performance
  • (B) quality control
  • (C) plant size
  • (D) manpower
💬 Discuss
✅ Correct Answer: (A) delivery performance
📊 Production and Operation Management
Q. Current trends in operations management include all of the following except ______.
  • (A) just-in-time performance.
  • (B) rapid product development.
  • (C) mass customization.
  • (D) mass production.
💬 Discuss
✅ Correct Answer: (D) mass production.
📊 Production and Operation Management
Q. Budgeting, paying the bills, and collection of funds are activities associated with the _________________.
  • (A) management function.
  • (B) control function.
  • (C) finance/accounting function.
  • (D) production/operations function.
💬 Discuss
✅ Correct Answer: (C) finance/accounting function.
📊 Production and Operation Management
Q. The first activity of purchasing cycle is _________.
  • (A) communicating requirement to the purchase.
  • (B) source selection and development.
  • (C) recognizing the need for procurement.
  • (D) inspection of goods.
💬 Discuss
✅ Correct Answer: (C) recognizing the need for procurement.

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