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CIPS Operations Management Sample Questions:

1. 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 5?

A) cell layout
B) functional layout
C) product layout
D) fixed-position layout

2. Operations Management is concerned with the management of resources in the production of tangible goods. Is this TRUE?

A) yes- operations management ensures there are sufficient goods produced to meet customer demand
B) no - operations management can also be concerned with the creation of intangible goods
C) yes- operations management is ensuring a company has the correct resources to create goods
D) no- operations management is concerned with ensuring the organisation is profitable

3. There are four manufacturing companies located on Seashell Industrial Estate. Each company creates a different product and employs a different maintenance approach to its operations. For each company, select the corresponding maintenance approach and the key operating process characteristic.
Company 1: This company creates craft beer and offers customers a tour of the brewery for a small charge. The brewing equipment is serviced monthly and the brewery is kept extremely clean. All equipment is labelled with the last service date.
Company 2: This company produces seasonal items such as Easter Eggs and Christmas Cake. The equipment has a control panel where lights will flash red advising staff to check oil levels and components. Staff can then report issues to the maintenance team if remedial work is required. Product demand fluctuates throughout the year.
Company 3: This equipment does not often break down and is only fixed when it is reported by staff as no longer working. Company 3 creates toys, providing a large range of product sizes and colours based on different customer requirements.
Company 4: Parts of the machine are serviced quarterly but in general, the machine is left to run its course and is then replaced when it is no longer financially viable to fix. The company produces cereal and the operating process is focused on the quantity produced and therefore uses standardised processes.
Complete the table below by listing the maintenance approach and operating process characteristic for each company. Each response should only be used once: preventative maintenance, run to breakdown maintenance, condition-based maintenance, mixed maintenance, volume, visibility, variation, variety

Which of the following will you put into box 5?

A) visibility
B) variation
C) volume
D) variety

4. Blue Slipper Ltd is a multi-national organisation that produces a variety of cosmetic products. A team has been put together to create a strategy for the Marketing Department in order to increase sales and thus profitability. What level of strategy is being created?

A) corporate level strategy
B) business level strategy
C) functional level strategy
D) operational level strategy

5. Little Joy Ltd is a large company with several functional departments. Below are details of four departments. For each, you must decide which functional area of the business the department is, as well as the SERVQUAL Gap that each Department Lead is concerned with.
Department 1: This department is concerned with the creation of products. The products are created in line with BS EN 716-1 and undergo vigorous tests before they leave the factory. Many customers are unaware of the additional costs of testing to BS EN 716-1 and complain about the price of this product line.
Department 2: Other departments of the business are internal customers of this functional area and approach the Department Lead when they require something to be bought. Often the internal customers have unrealistic expectations of the timescales involved in the process and the Department Lead spends a lot of time explaining lead times and logistics.
Department 3: This functional area creates the budgets for the company and emails these to the Department Leads at the beginning of every quarter. Due to the complexity of the documents, other functional areas of the business often don't understand the information provided.
Department 4: This area of the business is concerned with revenue, which has recently slumped. The Department Lead is conducting market surveys to find out the reason for this.
Complete the table below by listing the Functional Area of the business, and the corresponding SERVQUAL Gap. Each response should only be used once: procurement, finance, sales, production, satisfaction gap, delivery gap, standards gap, communication gap.

Which of the following will you put into box 7?

A) standards gap
B) communication gap
C) delivery gap
D) satisfaction gap

Solutions: