MBA Operations Management 2 — Questions and Answers
Question 1: What does 'lean manufacturing' primarily focus on?
- Maximizing production speed regardless of waste
- Eliminating all forms of waste (muda) to create more value with fewer resources (Correct answer)
- Reducing labor costs by automating all processes
- Increasing inventory buffers to prevent stockouts
Correct answer: Eliminating all forms of waste (muda) to create more value with fewer resources
Lean manufacturing, derived from the Toyota Production System, focuses on eliminating seven types of waste (overproduction, waiting, transport, over-processing, inventory, motion, defects).
Question 2: What is a 'critical path' in project management?
- The shortest possible route for raw material delivery
- The longest sequence of dependent tasks that determines the minimum project duration (Correct answer)
- The most expensive series of project activities
- The path with the highest risk of failure
Correct answer: The longest sequence of dependent tasks that determines the minimum project duration
The critical path is the longest chain of dependent activities in a project network, and any delay on it directly delays the entire project completion date.
Question 3: What is 'outsourcing' in operations management?
- Moving production facilities to a rural area
- Contracting specific business functions or processes to external vendors (Correct answer)
- Hiring temporary seasonal workers
- Selling off non-core business divisions
Correct answer: Contracting specific business functions or processes to external vendors
Outsourcing transfers specific business functions — like IT, manufacturing, or customer service — to external providers who can perform them more efficiently or cost-effectively.
Question 4: What does 'yield management' (revenue management) involve?
- Calculating crop yields in agricultural supply chains
- Adjusting prices dynamically based on demand patterns to maximize revenue from a fixed capacity (Correct answer)
- Managing the output quality of manufacturing processes
- Scheduling worker shifts to minimize overtime costs
Correct answer: Adjusting prices dynamically based on demand patterns to maximize revenue from a fixed capacity
Yield management dynamically adjusts pricing for perishable capacity — like airline seats or hotel rooms — to maximize revenue by selling the right unit to the right customer at the right price.
Question 5: What is the purpose of an 'enterprise resource planning' (ERP) system?
- To manage only the accounting functions of a business
- To integrate all core business processes — finance, HR, supply chain, manufacturing — into one unified system (Correct answer)
- To provide customer-facing e-commerce capabilities
- To automate social media marketing campaigns
Correct answer: To integrate all core business processes — finance, HR, supply chain, manufacturing — into one unified system
ERP systems integrate data and processes across departments into a single platform, improving coordination, data accuracy, and decision-making across the entire organization.
Question 6: What is 'process mapping' used for in operations management?
- Tracking geographic distribution routes
- Visually documenting the steps, flows, and decision points in a business process to identify inefficiencies (Correct answer)
- Scheduling project milestones on a timeline
- Mapping out an organization's reporting structure
Correct answer: Visually documenting the steps, flows, and decision points in a business process to identify inefficiencies
Process mapping creates visual representations (flowcharts, swim lane diagrams) of how work flows through a process to identify bottlenecks, redundancies, and improvement opportunities.
MBA Operations Management 2
What does 'lean manufacturing' primarily focus on?