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CIPS L5M9 Exam Syllabus Topics:

CIPS Operations Management Sample Questions:

1. An 'Order Qualifying' Objective contributes to the success of a business in that it is a criteria that will guarantee a customer will purchase an item. Is this sentence TRUE?

A) yes- this means the product is superior to that of competitors
B) no- this means a customer will buy from the organisation, but not this particular product
C) yes- these objectives always guarantee a sale
D) no- order qualifying is the process of accepting an order from a client, which may be rejected by the organisation

2. When processing low volumes of a product, specialisation is high and it is therefore possible to create products at a lower unit cost. Is this TRUE?

A) no- creating products in low volumes often leads to a higher unit cost
B) no- the volume of products created does not impact upon unit costs as these are fixed in advance
C) yes- staff gain specialities when there is less products to create
D) yes- when producing low volumes of a product, cost savings can be transferred to the customer

3. 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) flexibility
B) quality
C) speed
D) cost

4. Penny is the Operations Manager at a small furniture manufacturing company that makes tables and chairs, among other wooden household items. In the manufacturing site there is a small warehouse which stores inventory which is used in unforeseen circumstances such as a late delivery. What is the name given to this type of inventory?

A) anticipation inventory
B) buffer stock
C) transit inventory
D) work-in progress

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) yes- operations management ensures there are sufficient goods produced to meet customer demand
C) no - operations management can also be concerned with the creation of intangible goods
D) no- operations management is concerned with ensuring the organisation is profitable

Solutions: