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CIPS Operations Management Sample Questions (Q78-Q83):

NEW QUESTION # 78
Which of the following will increase 'order winning' objectives of a retail organisation?

Answer: D

Explanation:
4 is the correct answer. Here you're looking for the answer which will ensure a customer always picks this business over competitors. Of the four options given, loyalty is the only one that would make sense. Remember 'order winners' are the 'customers' justification for their purchase of a product or service'- this is a direct quote from P.43


NEW QUESTION # 79
Continuous Operations is a manufacturing methodology which is driven by forecasted customer numbers and has a low level of work-in-progress inventory. Is this true?

Answer: D

Explanation:
Firstly, look to see if the statement is true or false. It is true (this is taken from the table comparing continuous operations to intermittent operations on p.15). Therefore you can automatically discount options 3 and 4. Between 1 and 2, option 1 is incorrect as there is a high level of automation in continuous operations.


NEW QUESTION # 80
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?

Answer: C

Explanation:
This is buffer stock because it is being used as a safety for if something goes wrong with the current planned production schedule.. Anticipation Inventory is when you order extra materials in anticipation that something in the future will affect the level of production, such as a labour strike or a sharp price increase. These two are quite similar but the difference is buffer stock is held all the time and you don't anticipate something drastic is going to change in the future- you're just holding the extra stock because you're risk adverse. Anticipation Inventory isn't always held, it's collected when you think something bad is going to happen in the future and you'll need it. Work-in-progress is half-finished products and transit inventory is products that are currently being moved, for example on a delivery truck so these two are obvious wrong answers. See p.25 for different types of inventory


NEW QUESTION # 81
At Red Glass Ltd a strategy has been developed by the Operations Department to reduce costs and streamline supply chain operations. This is being incorporated into the organisation's overarching corporate strategy. What is the name given to this type of strategy development?

Answer: A

Explanation:
The correct answer is bottom-up. There are 2 forms of strategy development: top down and bottom up. Bottom up is when a department within an organisation makes a strategy and it is passed up the ladder for implementation. Top down is the opposite (it is filtered down the ladder from senior management to individual departments). See p.42.


NEW QUESTION # 82
Which of the following would you likely find on a Process Control Chart which is being used to monitor the quality of products manufactured in a factory?

Answer: D

Explanation:
2 is the correct answer. A Process Control Chart shows changes in a process over time (for example how hot the oven is). There are three horizontal lines; an upper control limit, a central line, and a lower control line. The idea is that the temperature is measured regularly and always falls between the upper and lower lines, and as close to the central line as possible. P.127


NEW QUESTION # 83
......

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