BBM Operations Management 2 — Questions and Answers
Question 1: What is the 'critical path' in project management?
- The most expensive sequence of project tasks
- The longest sequence of dependent tasks that determines the minimum project duration (Correct answer)
- The sequence of tasks most likely to face delays
- The path taken by the project manager during oversight visits
Correct answer: The longest sequence of dependent tasks that determines the minimum project duration
The critical path is the longest sequence of dependent project tasks, determining the shortest possible project completion time.
Question 2: Which process improvement methodology uses DMAIC (Define, Measure, Analyze, Improve, Control)?
- Lean Manufacturing
- Total Quality Management
- Six Sigma (Correct answer)
- Agile
Correct answer: Six Sigma
Six Sigma uses the DMAIC framework — Define, Measure, Analyze, Improve, Control — to systematically reduce process variation and defects.
Question 3: What is 'outsourcing' in operations management?
- Moving production overseas
- Contracting specific business functions or processes to external service providers (Correct answer)
- Purchasing new equipment to replace labor
- Selling excess inventory to competitors
Correct answer: Contracting specific business functions or processes to external service providers
Outsourcing involves contracting non-core business functions (like IT, manufacturing, or customer service) to external providers to reduce costs or access expertise.
Question 4: What is the purpose of quality control in manufacturing?
- To increase production speed at any cost
- To ensure products meet specified standards before reaching customers (Correct answer)
- To eliminate all production costs
- To monitor employee attendance
Correct answer: To ensure products meet specified standards before reaching customers
Quality control uses inspection, testing, and process monitoring to ensure products meet defined quality standards before they reach customers.
Question 5: Which inventory model calculates the optimal order quantity to minimize total inventory costs?
- FIFO Model
- ABC Analysis
- Economic Order Quantity (EOQ) (Correct answer)
- Safety Stock Model
Correct answer: Economic Order Quantity (EOQ)
The Economic Order Quantity (EOQ) model calculates the ideal order size that minimizes the combined costs of ordering and holding inventory.
Question 6: What does 'throughput' measure in operations?
- The quality of finished products
- The rate at which a system produces its final output over time (Correct answer)
- The total cost of production
- The number of defects per production run
Correct answer: The rate at which a system produces its final output over time
Throughput measures the rate at which a system or process generates finished goods or completes work over a given time period.
BBM Operations Management 2
What is the 'critical path' in project management?