Managing Business Operations Practice Test

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• Which process pushes decision-making authority down the organizational hierarchy?
• What is the critical path method (CPM) and how does it help in project scheduling?
• Distinguish between push and pull production systems and give an example of each.
• Which statement best describes the role of root cause analysis in continuous improvement?
• In lean manufacturing, what does establishing a pull system mean?
• Which statement best describes the difference between DMAIC and DMADV in Six Sigma?
• In capital budgeting, what does IRR measure?
• Which planning approach focuses on the day-to-day operations and the use of resources to implement plans?
• Which term best fits a structure where tasks are subdivided into smaller jobs to permit specialization?
• Leaders who encourage discussion about issues and require that all parties agree to the final decision are called what?
• What is a bill of materials (BOM) and why is it critical for manufacturing planning?
• The degree to which group members want to stay in the group and resist outside influences.
• The complete redesign of business structures and processes in order to improve operations.
• Which perspectives are included in the balanced scorecard framework?
• Sustainability in operations considers which trio of impact areas?
• A group that is like a work group but also pools knowledge, skills, and resources to achieve a common goal describes which term?
• Which practice aligns with applying Agile methods in operations planning and execution?
• Kaizen is best described as what?
• The management concept that centers on roles involving gathering and distributing information is called?
• Which concept describes members from the same organizational level but from different functional areas?
• What is a potential risk of vendor-managed inventory (VMI)?
• In queuing theory for service operations, which metric is used to measure service level?
• An organizational structure that includes both line and staff positions.
• Which concept describes a manager's capability to function effectively in multicultural environments?
• Which organizational form includes both line and staff positions?
• Which term describes the ability to view interdependencies and the organization’s place in the broader environment?
• What is the term for the process of giving employees increased autonomy and discretion to make decisions, as well as control over the resources needed to implement those decisions?
• In capacity planning, what distinguishes manufacturing capacity from services capacity?
• Which statement correctly differentiates preventive maintenance from predictive maintenance and includes a basic example?
• Explain the difference between capacity flexibility and demand management.
• Which document best describes an organization's purpose and guiding principles?
• Managers who design and carry out operation plans for ongoing daily activities belong to which level of management?
• What are the core components of a service blueprint and how does it aid service design?
• What is the core objective of Six Sigma in quality management?
• Which concept describes the degree to which formal authority is concentrated in one area or level of an organization, with top management making most decisions?
• What is the EOQ model, and what assumptions does it make about demand, lead time, and costs?
• Departmentalization based on the primary functions performed within an organizational unit.
• Which term describes the grouping of positions by primary functions such as marketing, finance, and production?
• Which technique helps prioritize problems by frequency and impact in root cause analysis?
• Positions in an organization that provide administrative and support services to help line staff achieve goals describe which term?
• Explain capacity planning for project-based operations and its relationship to resource leveling.
• Explain the differences between internal benchmarking and external benchmarking in operations.
• Groups that share resources and coordinate to help members perform their jobs better describe which concept?
• What are the main elements of change management in operations initiatives?
• Power derived from an individual's ability to threaten negative outcomes is known as what?
• Which type of power is based on the perception that a person has authority because of their role in the organization?
• Which organizational structure is characterized by a relatively low degree of job specialization, loose departmentalization, few levels of management, wide spans of control, decentralized decision-making, and a short chain of command?
• A manager's activities as a figurehead, company leader, or liaison.
• A leader who tends to give explicit instructions and expects compliance with little to no input from followers demonstrates which leadership style?
• The order and design of relationships within a firm; consists of two or more people working together with a common objective and clarity of purpose.
• In risk management, what is a typical next step after identifying risks and assessing probability and impact?
• Which type of power is based on an individual's ability to reward others?
• Which statement best captures the difference between quality assurance (QA) and quality control (QC)?
• Describe the difference between yield and waste in a manufacturing context.
• Departmentalization based on the production process used by the organizational unit.
• Which type of departmentalization is based on the primary type of customer served by the organizational unit?
• What is a service level agreement (SLA) and how is it used in supplier management?
• Which statement best describes the Ishikawa (fishbone) diagram and its use in root cause analysis?
• Power derived from an individual's personal charisma is called?
• What does days sales of inventory (DSI) estimate?
• In a pull-based Kanban system, what signals trigger the movement of the next work item?
• A manager's interpersonal skills that are used to accomplish goals through the use of human resources.
• Safety stock is determined by which set of factors?
• Managers who design and carry out tactical plans in specific areas of the company are typically at which level of management?
• Which concept is defined as using the least amount of resources to accomplish the organization's goals?
• Power that is derived from an individual's position in an organization is called which type of power?
• A manager's activities as an information gatherer, an information disseminator, or a spokesperson for the company.
• Which statement best describes nearshoring in relation to offshoring?
• An arrangement where individuals coordinate and share resources to help each other with their tasks is best described as which?
• What are the benefits and risks of implementing automation and robotics in operations?
• Power derived from control over rewards is called?
• The order and design of relationships within a firm; consists of two or more people working together with a common objective and clarity of purpose.
• Which statement is included in the classic EOQ model assumptions regarding replenishment?
• The set of attitudes, values, and standards that distinguishes one organization from another is called?
• Vendor-managed inventory (VMI) involves which arrangement?
• The number of employees a manager directly supervises is called what?
• In which organizational arrangement is decision-making authority distributed among a group rather than concentrated in one person?
• Explain throughput accounting and how it differs from traditional costing.
• A manager's activities as an entrepreneur, resource allocator, conflict resolver, or negotiator are referred to as?
• Which term refers to a manager's activities as a figurehead, company leader, or liaison?
• Which term refers to the line of authority that extends from one level of an organization's hierarchy to the next, from top to bottom, clarifying who reports to whom?
• Which management level is primarily responsible for designing and carrying out operation plans for daily activities?
• What is demand shaping and how does it differ from demand management?
• Which term describes the process of guiding the development, maintenance, and allocation of resources to attain organizational goals?
• A visual representation of the structured relationships among tasks and the people given the authority to do those tasks.
• Which leadership style involves seeking input from all members but still giving the final decision to the group through voting?
• Plans that identify alternative courses of action for unusual or crisis situations and specify chain of command and SOPs are known as?
• Teams without formal supervision that plan, select alternatives, and evaluate their own performance.
• Which statement best describes DMADV?
• A network of independent firms linked by information technology to share skills and access markets is known as what?
• Which term refers to the highest level of managers who develop strategic plans?
• Which metric best indicates how quickly a supplier responds to changes in demand?
• Which process involves giving others some authority and responsibility to perform tasks lower in the chain of command?
• Explain the role of data analytics and dashboards in optimizing operations decisions.
• Which term describes a team that collaborates intensively to achieve a common goal?
• Which form of departmentalization organizes by the stages of production rather than by product lines?
• Leaders who share decision-making with group members and encourage discussion of issues and alternatives include which leadership style?
• What is takt time and how is it used to synchronize production with demand?
• Which statement best describes intrinsic motivation?
• Selecting a leadership style based on the maturity and competency level of those who will complete the task is known as which approach?
• Which concept is defined as the process of guiding and motivating others toward organizational goals?
• The concept describing dividing work into smaller tasks to be performed separately is called what?
• Which concept involves improving operations by redesigning both processes and structures?
• Which approach most effectively integrates environmental, social, and economic impacts into operations decisions?
• The network of connections and channels of communication based on the informal relationships of individuals inside an organization.
• What is a Gantt chart and what are its limitations in complex operations?
• What is the purpose of stakeholder analysis in change management?
• Which organizational structure features authority and responsibility held by a group rather than an individual?
• Strategic planning typically covers a horizon of how many years?
• Which metrics are central to throughput accounting?
• Decisions made in response to frequently occurring routine situations are called?
• What is total cost of ownership (TCO) in sourcing decisions?
• Leaders who solicit input from all members and then allow the members to make the final decision through a vote are known as?
• Lean focuses on value from the customer’s perspective. From whose perspective does lean prioritize value?
• Which statement about external benchmarking is true?
• Which statement best describes cross-docking compared with traditional warehousing?
• The levels of management within an organization; typically includes top, middle, and supervisory management.
• What is the role of an ERP system in operations management and which modules are commonly included?
• The administrative and support staff that aid line workers are best described by which term?
• An organizational structure with direct, clear lines of authority and communication flowing from the top managers downward.
• In an Ishikawa diagram, which category is commonly used to classify potential causes?
• An organization's purpose and long-term goals are described by which concept?
• Which organizational structure combines functional and product departmentalization by bringing together people from different functional areas to work on a special project?
• What is service recovery and how can operations design influence it?
• Define lead time and cycle time; how do they differ in a manufacturing process?
• What term describes power derived from an individual's extensive knowledge in one or more areas?
• What is a primary capability of data dashboards in operations?
• A formal document that states an organization's purpose and reason for existing and describes its basic philosophy is called what?
• A leadership style in which the leader turns over all authority and control to subordinates.
• Which type of departmentalization groups activities by geographic areas such as regions or countries?
• Which term describes dividing work into separate jobs and assigning tasks to workers?
• A manager's ability to operate in diverse cultural environments.
• Which of the following is typically included in a service level agreement (SLA)?
• Which structure is defined by direct, clear lines of authority from the top down, with no separation of staff and line?
• What term defines a manager's ability to apply specialized knowledge to organizational tasks?
• What term describes the ability to produce the desired result or good?
• Differentiate between push-based and pull-based scheduling in project management.
• Which term best describes legitimate power granted by the organization that enables leaders to request action and expect compliance from subordinates?
• Which process involves creating long-range goals for the organization and determining resources to accomplish them?
• How does the Theory of Constraints guide production improvement?
• The process of creating specific standards, methods, policies, and procedures used in specific functional areas of the organization to guide the implementation of tactical plans is called what?
• Which leadership style prefers to make decisions with little input from subordinates?
• The process of assessing progress toward goals, including monitoring implementation and correcting deviations, is called?
• A group that blends members' knowledge and skills to accomplish a shared objective is called what?
• Which structure is most associated with a short chain of command and decentralized decision-making?
• If a manager has 25 employees directly reporting to them, this is referred to as what?
• Which concept refers to the formal arrangement of tasks and reporting relationships designed to achieve a common objective?
• Which is a core principle of lean manufacturing?
• A manager's ability to view the organization as a whole, understand interdependencies, and assess the external environment reflects which skill?
• A manager's specialized areas of knowledge and the ability to apply that knowledge are called?
• In a manufacturing setting, increasing efficiency by breaking down work into smaller steps is an example of which principle?
• Which form of departmentalization groups units by the primary customer served?
• What does the inventory turnover ratio measure?
• Explain the purpose of KPI cascades and give examples of top-level vs operational KPIs in operations.
• Which type of plan is designed to guide actions during emergencies by specifying command and communication channels?
• Which organizational structure would be most effective for a company undertaking a major cross-functional project?
• What term describes a team composed of members from different functional areas working together?
• What distinguishes process design from process improvement in operations management?
• Departmentalization based on the geographic segmentation of the organizational units.
• Compare make-to-stock, make-to-order, and assemble-to-order strategies and their impacts on lead times and inventory.
• Which planning type has a shorter time frame and more specific objectives than strategic planning?
• Which type of leadership involves giving subordinates full control and authority?
• In capacity planning, what do capacity utilization and capacity cushion represent and why are both important?
• Which option describes groups that operate without formal supervision and are empowered to manage themselves?
• Which process involves grouping jobs together so that similar or associated tasks and activities can be coordinated?
• Which metric is commonly used as a top-level KPI in manufacturing operations?
• Which concept describes a network of firms collaborating through IT to quickly enter changing markets?
• The relatively consistent way that leaders attempt to influence the behavior of others is known as which concept?
• Which planning process begins to implement a strategic plan by addressing coordination and resource allocation with a shorter time frame and more specific objectives?
• Usually members of the same department who meet regularly to suggest ways to improve operations and solve specific problems.
• In a managerial framework, which category of roles includes deciding how to allocate resources and resolve conflicts?
• What is safety stock and which factors determine its level?
• Which term describes the process of deciding what needs to be done to achieve organizational objectives, identifying when and how it will be done, and determining who should do it?
• Describe the capital budgeting analysis for operations improvements and the key metrics used.
• Which term describes legitimate power granted by the organization that allows a person to request action and expect compliance?
• What term refers to the ability to influence others to behave in a particular way?
• Which leadership form emphasizes consensus-building and final agreement before action?
• Leaders who confer with subordinates before making a decision but retain the final decision-making authority are known as?
• The process of coordinating and allocating a firm's resources in order to carry out its plans is known as which management function?
• Which is a common statistical process control chart used to monitor process variation?
• What is demand forecasting and which methods are commonly used in operations planning?
• Which term refers to the assignment of some degree of authority and responsibility to persons lower in the chain of command?
• In service blueprinting, describe the distinction between front-stage and back-stage actions.
• Which level of management is primarily responsible for designing and carrying out tactical plans in specific areas of the company?
• Departmentalization based on the goods or services produced or sold by the organizational unit.
• All positions in the organization directly concerned with producing goods and services and that are directly connected from top to bottom.
• Which of the following is NOT a typical ERP module?
• What is the primary purpose of a service blueprint in service design?
• Queuing theory primarily analyzes which aspects of service operations?
• In a service blueprint, what does the line of visibility indicate?
• The process of guiding and motivating others toward the achievement of organizational goals.
• Which organizational structure is characterized by a relatively high degree of job specialization, rigid departmentalization, many layers of management, narrow spans of control, centralized decision-making, and a long chain of command?
• How do you evaluate supplier reliability and supplier performance using metrics?
• Responses to infrequent, unforeseen, or very unusual problems and opportunities where there is no precedent to follow are known as which type of decisions?