Operations Management MCQ with anwers

Preparing for exams can be a challenging task, especially when it comes to subjects like Operations Management. With its complex concepts and extensive theories, finding the right resources to aid in exam preparation becomes crucial.

If you are an MBA or BBA student seeking comprehensive practice material, specifically in the form of multiple-choice questions (MCQs) with answers in a convenient PDF format, then look no further. This article aims to provide you with the perfect solution by offering an Operations Management MCQ with answers PDF tailored for students pursuing their MBA or BBA degrees.

Operations Management MCQ with answers

1. Operations Management, deals with the production of ___ and ___.
Ans. Goods and services

2. Through careful planning and control of the ___, the organisation can keep ___ to the minimum and definitely below „revenues‟ obtained from the market.
Ans. Operations, costs

3. Innovations in the 18th century replaced ___ with ___.
Ans. Human power, machine power

4. In the 1930s, three co-workers at Bell Telephone Labs ___, ___ and ___ developed statistical procedures for sampling and quality control.
Ans. Dodge, Romig and Shewart

5. Every Organisation has ___ layers.
Ans. Five

6. What are the two major issues in Operating Management?
Ans. Design, Operational Control Analysis

7. India also has a unique advantage in the abundant availability of ___ and ___.
Ans. Low-cost labour and technical manpower

8. If a system fails to give desirable results, then the fault is not with the ___ or the level of technology or labour.
Ans. Culture

9. Under World Class Manufacturing, the company’s products should have a specification closer to the ___ than those made by any competitor.
Ans. Customers needs,

10. The growth of the service sector in India in the last ___ years has been very significant.
Ans. Five

11. The basic inputs to an operating system are ___, ___ and ___.
Ans. Labour, Capital, Material

12. ___ helps Operations Management to estimate demands for goods and services.
Ans. Forecasting

13. Indian industry enjoyed undue advantages due to ___.
Ans. High import tariffs

14. One of the serious drawbacks of Indian manufacturing organisations operating in a controlled economy was the ___ in their approach to business
Ans. Predominant domestic focus

15. Advancement in ___ and global competition has influenced the major trends.
Ans. IT

16. The three basic activities of organizations are ___, ___ and ___.
Ans. Operations, Marketing and Finance

17. ___ seeks to reduce cost.
Ans. Finance

18. ___ and ___ should be, equal partners in the success of the organisation.
Ans. Marketing and Operations

19. There are ___ dimensions of competitiveness.
Ans. Six

20. ___ was closely related to delivery.
Ans. Speed

21. Price over-recovery replicates a situation where the prices of products are increased more than the costs of resources.
Ans. True

22. Operating system of Apple computers is an example of an order qualifier.
Ans. False

23. Productivity can be simply defined as the ratio of ___.
Ans. Outputs to Inputs

24. Competitiveness of a firm is simply its propensity and ability to ___ with other firms in the industry.
Ans. Compete

25. ___,___,___,___,___,___ are the factors that influence the competitive position of a firm.
Ans. Cost \price, quality, delivery speed, reliable delivery, flexibility in supply, flexibility in new product introduction

26. Competitive Strategy is a combination of the ___for which the firm is striving, and the ___through which it is seeking to get there.
Ans. Goals, Policies

27. Industry opportunities and threats with its attendant risks and potential rewards define the___.
Ans. Competitive environment

28. The Corporate Strategy defines the ___vision of a company.
Ans. The long-term vision

29. ___ form the heart of operations strategy.
Ans. Mission, Distinctive Competencies, Objectives and Policies

30. ___, ___, ___, and ___ are the „four common objectives of Operations‟.
Ans. Cost, Quality, Delivery and Flexibility

31. Due to rapid globalisation, industries in most countries are facing ___.
Ans. Intense competition

32. Consequently, many companies today are no more satisfied with delivering „acceptable quality‟ but strive for ___ & ___.
Ans. Perfect product; Service quality

33. Both Manufacturing, as well as, service industries have experienced a far-reaching impact on their operations because of___.
Ans. Automation

34. ___, ___, ___ have become popular among companies in their attempts to keep costs low.
Ans. Restructuring, Downsizing, Outsourcing

35. A strong and steady ___ is necessary for the growth of the service sector.
Ans. Manufacturing sector

36. ___ and ___ are operations-driven dimensions with a major impact on marketing.
Ans. Delivery time and Delivery consistency

37. Order qualifier is your ticket to go into the race.
Ans. True

38. Kano is a Chinese artist.
Ans. False

39. Product life cycle has five stages.
Ans. False

40. Cell is an intermediate stage between batch and assembly line.
Ans. True

41. Operations strategies and decisions should fulfil the needs of the business and should add ___ to the firm.
Ans. Competitive advantage

42. Productivity is related to Operations Management as it focuses on ___ its resources‟.
Ans. Maximising

43. Is pay-back period analysis a measure of the investment‟s profitability? Answer „Yes‟ or „No‟.
Ans. Owning, maintaining

44. An organisation‟s stakeholders include all individuals, groups, and other entities that either ___ the working of the organisation or are directly ___ by it.
Ans. Influence, influenced

45. Return on Investment (ROI) is a fundamental measure of the ___ with which a firm manages its ___.
Ans. Efficiency, assets

46. Operating Cash Flow measures the ability of the company to generate, through its ___, a flow of ___.
Ans. Operations, cash

47. EVA measures the difference between the ___ and ___ value for the business.
Ans. Pre-investment, post-investment

48. The Cost of an investment is not merely the cost of ___ the ___.
Ans. Acquiring, assets

49. Ownership Cost is the total cost of ___ and ___ an asset over a period of time including the opportunity cost.
Ans. Owning and Maintaining

50. Discounted Cash Flow makes use of the ___ Value concept.
Ans. Present

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51. What the ___ money is worth ___ is called the Present Value.
Ans. Future, today

52. ___, ___, ___ analysis is the most widely used investment appraisal technique.
Ans. Discounted, cash, flow

53. Cost-Benefit Ratio is a ratio between the ___, ___ of a decision, and the Costs likely to be generated by that decision.
Ans. Anticipated Benefits

54. Two versions of the Cost-Benefit Ratio analysis are ___cost-benefit ratio analysis, and ___ cost-benefit ratio analysis.
Ans. Discounted, undiscounted

55. Sensitivity analysis is a technique for assessing the extent to which the success of a preferred investment is dependent on the ___, ___.
Ans. Key, assumptions

56. Sensitivity Analysis is sometimes referred to as ___, ___analysis.
Ans. What, if

57. Break-even Analysis is also known as the___, ___, ___ analysis.
Ans. Cost, volume, profit

58. The point (of the level of production/sales) where the ___, ___ equals the ___, ___ is called the „break-even‟ point.
Ans. Total, costs, total, revenues

59. Fixed Costs (in Production) are costs that remain constant irrespective of the ___ of ___.
Ans. Volume, production

60. Investment should be such that the break-even point is as ___as possible.
Ans. Low

61. ___, ___ comprise those costs which may be identified separately for each good or service produced.
Ans. Direct, costs

62. Operations Cost Management involves ___ and ___ all costs that add up to the Total Operations Cost.
Ans. Planning, controlling

63. Final Cost a product is given by the equation ___.
Ans. Final Cost = Direct Material Cost + Direct Labour Cost + Factory Overheads Materials, labour

64. Operations Overheads can be sub-divided into Indirect ___, Indirect ___ and other expenses.
Ans. Fixed, variable

65. Another division of total Operations Cost would be the ___ Costs and ___ Costs.
Ans. The economy of Scale refers to the reduction in costs achieved in manufacture due to high levels of production.

66. If the scale of operations increases, then the unit cost of manufacture comes down. This theory is called as ___.
Ans. True

67. “At Break-Even point, the operations neither registers a profit nor incurs a loss.” (True / False)
Ans. Fixed, profit, margin

68. The Break-Even quantity of production/sale is obtained by dividing the total ___ cost by the unit ___ ___.
Ans. Limited flexibility

69. In real business situations, if a company is into the manufacture of only one type of product or service, the operations manager has ___ over reducing the cost.
Ans. Leveraging

70. The market has a limit on such ___ since the demand for one single type of product tends to level off, beyond some numbers.
Ans. Variety, products

71. „Economies of Scope‟ is an approach by which higher volumes are sought to be achieved through manufacturing a ___ of ___.
Ans. Flexible, efficient

72. Manufacture of a variety of products is done by developing operations systems which are ___ and still ___.
Ans. Competitive market, broaden, higher

73. Pay-back Analysis tells us how long it will take to ___ ___ the money we spend on the ___.
Ans. Earn, assets

74. An asset with a ___ back period would rank higher than one with ___ paybacks.
Ans. Return on investment


Having access to a comprehensive set of Operations Management MCQs with answers can greatly enhance your exam preparation. Whether you are pursuing an MBA or BBA, these MCQs provide valuable practice and help you gauge your understanding of the subject matter.

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