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CIPS L5M9 Exam Syllabus Topics:

CIPS Operations Management Sample Questions:

Question 1

The Balanced Scorecard is a performance management approach which looks at measuring four areas of a business. Of those listed below, which is not an area traditionally measured within the Scorecard?

A. customer
B. business processes
C. finance
D. environment

Question 2

When processing low volumes of a product, specialisation is high and it is therefore possible to create products at a lower unit cost. Is this TRUE?

A. yes- when producing low volumes of a product, cost savings can be transferred to the customer
B. no- creating products in low volumes often leads to a higher unit cost
C. yes- staff gain specialities when there is less products to create
D. no- the volume of products created does not impact upon unit costs as these are fixed in advance

Question 3

Sunshine Ltd is a global manufacturer of confectionary with sales of products in over 30 different countries bringing in a revenue of over £5m. Due to different cultures and tastes, they produce similar products for each country market, but tweak the recipe slightly for each customer base. Which type of manufacturing process is used at Sunshine Ltd?

A. customisation
B. make to order
C. mass customisation
D. mass production

Question 4

Khaled has recently been hired as an Operations Manager at a company providing consultancy services. This is his first role in the service industry, previously he has worked at companies providing goods. He understands that services are intangible and therefore there is a difference in how Operations may be managed. Which of the following sentences about services are true? Select THREE

A. there is no variability in services
B. production and consumption occur simultaneously
C. it is not possible to return a service
D. there is a transfer of ownership when purchasing a service
E. services cannot be stored, unlike goods

Question 5

Below are details of 4 local manufacturing companies. For each company you must decide what the main objective is for the organisation and what layout their manufacturing plant has.
Company 1: This company creates large, delicate products which are hard to move. The main aim of the company is to stand out from competitors due to the superior level of materials used and by using the latest forms of technology to create the items.
Company 2: This company produces 72 different items and has designated zones within its premises for the creation of each item. The zones are organised based on the technology used and some products may be passed between different zones to be completed. The company creates many different items in response to changing customer demands, with many product lines only lasting a single season.
Company 3: Company 3 creates one product which flows along a single production line, with staff members adding to the product on four different occasions. The company must produce a high volume of this singular product in order to break even. Therefore, there is always a steady flow of items through the plant and it is important there is no stoppage in production.
Company 4: This company produces small batches of products, as and when they are ordered by customers. Due to uncertainty in demand, a high profit margin is added to the cost of each item. Teams in the factory are grouped into different areas depending on the technological process they are using.
Complete the table below by listing the objective criteria and plant layout for each company. Each response should only be used once: flexibility, speed, quality, cost, functional layout, cell layout, product layout, fixed-position layout

Which of the following will you put into box 3?

A. cost
B. speed
C. quality
D. flexibility

Solutions: