Bule Hora University
Management Department
Operation Management Final Exam for Management 3rd Year Students(W).
Time Allowed :- 1:30 Minutes Maximum Mark :- 50%
Name _________________________________ID No______________Sign_____
I. Write true if the statement is correct or write false if it’s incorrect( 1 point each).
1. The process selection significantly influences the long-term flexibility and quality
of products produced.
2. Job processes are designed for high volumes of standardized products and
typically involve low customization.
3. Continuous processes are characterized by their ability to handle a wide variety of
products efficiently.
4. Design capacity represents the maximum output that can be achieved under ideal
conditions.
5. Service blueprinting is primarily used to visualize the various stages of service
delivery and identify areas for improvement.
6. The main goal of Value Engineering is to reduce costs while maintaining or
improving product quality.
7. Effective capacity is usually higher than actual output due to operational
efficiencies achieved in production.
II. Choice the best answer from the given alternatives ( 1.5 each question).
1. What is the primary strategic role of product and service design in an
organization?
A) Enhancing employee productivity C) Reducing operational costs
B) Increasing customer satisfaction D) Improving market share
2. Which step in the product design process involves evaluating the potential for
success?
A) Final design C) Product screening
B) Idea development D) Preliminary design
3. What major factor does NOT influence the initiation of product redesign?
A) Economic shifts C) Corporate culture
B) Technological advancements D) Competitive pressures
4. DFM aims to enhance which aspect of product development?
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A) Aesthetic appeal C) Marketability
B) Manufacturability D) Cost-effectiveness
5. The main objective of Quality Function Deployment (QFD) is to ensure what?
A) Lower production costs C) Higher profit margins
B) Customer needs are addressed D) Faster market entry
6. What distinguishes a batch process from a job process?
A) Higher volume of production C) Lower variety of products
B) Continuous flow of materials D) Customization levels
7. What is the maximum output under ideal conditions referred to as?
A) Effective capacity C) Design capacity
B) Actual output D) Utilization
8. Capacity utilization is calculated by which formula?
A) Actual output / Effective capacity C) Design capacity / Effective capacity
B) Actual output / Design capacity D) Effective capacity / Actual output
9. Which process type is characterized by high customization and low volume?
A) Job process C) Continuous process
B) Batch process D) Line process
10. Which of the following is a characteristic of a line process?
A) High customization C) Discontinuous flow of materials
B) Low skilled labor D) Large work-in-progress
11. Continuous processes are typically used for which type of products?
A) Custom-made items C) Seasonal goods
B) Highly standardized products D) Limited edition products
12. In the make or buy decision, which of the following is NOT typically considered?
A) Expertise C) Employee satisfaction
B) Available capacity D) Cost
13. When demand exceeds capacity, which tactic can be used?
A) Increase employee shifts C) Decrease production quality
B) Raise prices D) Hire more staff
14. Which process choice typically involves high flexibility and customization?
A) Continuous process C) Line process
B) Project process D) Batch process
15. The focus of Value Engineering is to achieve what during the design phase?
A) Cost reduction B) Quality enhancement
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C) Market research D) Production efficiency
16. What does effective capacity typically reflect?
A) Maximum output achievable C) Actual output achieved
B) Output under normal conditions D) Design capacity limits
17. What does the term "actual output" refer to?
A) Output achieved during maximum efficiency C) The actual rate of production achieved
B) The rate of output typically expected D) Maximum theoretical output
18. Which of the following is NOT a step in capacity planning?
A) Monitor results C) Develop marketing strategy
B) Conduct financial analysis D) Evaluate existing capacity
19. Which service design technique analyzes the delivery process visually?
A) Value Engineering C) Total Quality Management
B) Service Blueprinting D) Concurrent Engineering
20. What is a critical factor in planning service capacity?
A) Ability to store services C) Standardization of services
B) Location proximity to customers D) Seasonal demand patterns
21. What is the primary objective of process selection in operations management?
A) Minimize labor costs C) Transform resources into goods/services
B) Maximize product quality D) Increase market share
22. Which of the following is a characteristic of a batch process?
A) High volume C) Short production runs
B) Low variety D) Continuous flow
23. Early Supplier Involvement (ESI) is intended to enhance what aspect of product
design?
A) Cost efficiency C) Market analysis
B) Collaborative innovation D) Workforce training
24. In the product life cycle, which stage is characterized by high productivity
emphasis?
A) Introduction C) Maturity
B) Growth D) Decline
25. Which design strategy focuses on interchangeable components for ease of
assembly?
A) Modular Design C) Robust Design
B) Group Technology D) Value Analysis
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III. Descriptive
IV. ( show each steps and with formula).
If a facility's design capacity is 1,000 units per day and its effective capacity is 800
units per day, what is the capacity utilization percentage when the actual output is 600
units? 5.5%
