MBA Operations Management 2

Question 1

What does 'lean manufacturing' primarily focus on?

Accepted Answer

Eliminating all forms of waste (muda) to create more value with fewer resources

Answer

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?

Accepted Answer

The longest sequence of dependent tasks that determines the minimum project duration

Answer

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?

Accepted Answer

Contracting specific business functions or processes to external vendors

Answer

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?

Accepted Answer

Adjusting prices dynamically based on demand patterns to maximize revenue from a fixed capacity

Answer

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?

Accepted Answer

To integrate all core business processes — finance, HR, supply chain, manufacturing — into one unified system

Answer

ERP systems integrate data and processes across departments into a single platform, improving coordination, data accuracy, and decision-making across the entire organization.

MBA - Degree Master of Business Administration Practice Test

MBA - Degree Master of Business Administration Practice Test

MBA Operations Management 2