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Exam Paper for Operations Management in BBA
(With Answers)
PAPER # 1
**Operations Management Exam Paper**
**Course**: BBA in Operations Management
**Duration**: 2 hours
**Instructions**:
- Answer all questions
...

- Allocate your time wisely to ensure you can answer all questions
...

- Write your answers in the space provided or on a separate sheet if
necessary
...

**Section A: Multiple Choice Questions (20 marks)**
Choose the correct option for each question and mark it on the answer
sheet
...
Which of the following is NOT a key component of operations
management?
a) Marketing

2

b) Finance
c) Production
d) Human Resources
**Answer**: a) Marketing
2
...
What is the primary goal of Total Quality Management (TQM)?
a) Reducing production costs
b) Maximizing sales revenue
c) Meeting or exceeding customer expectations
d) Minimizing employee turnover
**Answer**: c) Meeting or exceeding customer expectations
4
...
The process of determining the capacity needed to meet future
demand is known as:
a) Forecasting
b) Scheduling
c) Capacity planning
d) Inventory management
**Answer**: c) Capacity planning
**Section B: Short Answer Questions (40 marks)**
6
...

**Answer**: The Product Life Cycle (PLC) is a model that describes
the stages a product goes through from introduction to decline
...
During the
introduction phase, production may be limited, and the focus is on
quality
...
In the maturity phase, cost control and
process optimization are essential
...

7
...


4

**Answer**: Outsourcing involves contracting out certain business
functions to external suppliers
...

Disadvantages include loss of control, potential quality issues, and
dependency on suppliers
...
Explain the key principles of Lean Manufacturing and how they can
be applied to improve operations in a manufacturing company
...
Key
principles include:
- **Elimination of waste:** Identifying and eliminating activities that
do not add value to the product
...

- **Pull production:** Producing based on customer demand to
minimize overproduction
...

These principles can be applied to improve operations by reducing
costs, improving quality, and increasing efficiency
...
Discuss the role of technology in modern operations management
...


5

**Answer**: Technology plays a crucial role in modern operations
management
...

- **Enterprise Resource Planning (ERP) systems:** Streamline
information flow across departments
...

- **Supply chain management software:** Enhances visibility and
coordination in the supply chain
...

**Section D: Case Study (20 marks)**
10
...

*Case Study: XYZ Electronics*
XYZ Electronics is a consumer electronics manufacturer
...
The
management is considering implementing a Just-in-Time (JIT)
production system
...

- Establish strong relationships with key suppliers to ensure a steady
flow of materials
...

- Invest in employee training to promote a culture of continuous
improvement
...


**Section A: Multiple Choice Questions (2 marks each)**
1
...
Just-In-Time (JIT) is a philosophy primarily associated with:
a) Total Quality Management (TQM)
b) Lean Manufacturing

7

c) Six Sigma
d) Theory of Constraints (TOC)
**Answer: b) Lean Manufacturing**
3
...
The PDCA (Plan-Do-Check-Act) cycle is a fundamental concept in:
a) Inventory Management
b) Total Quality Management (TQM)
c) Supply Chain Management
d) Facility Layout
**Answer: b) Total Quality Management (TQM)**
5
...
Explain the concept of 'Total Quality Management' (TQM) and
discuss its importance in operations management
...
It emphasizes the importance
of achieving quality in all aspects of an organization's operations
...

- Continuous Improvement: Organizations should constantly strive to
improve processes, products, and services
...

- Process Orientation: Quality improvement should be processoriented, focusing on identifying and eliminating defects
...

TQM is important in operations management as it helps
organizations enhance product and service quality, reduce waste,
lower costs, increase customer satisfaction, and maintain a
competitive edge in the market
...
Discuss the advantages and disadvantages of outsourcing in the
context of operations management
...

- Focus on Core Competencies: Outsourcing non-core functions
allows an organization to focus on its core competencies and strategic
activities
...

- Scalability: Outsourcing provides flexibility to scale operations up
or down based on business needs
...

- Communication Challenges: Differences in time zones and
languages can lead to communication challenges
...

- Hidden Costs: The initial cost savings can be offset by hidden
costs such as legal fees and management overhead
...
Please adapt the questions and answers to align
with your specific course content and learning objectives
...
Which of the following is not a type of process layout?
a) Product layout
b) Functional layout
c) Cellular layout
d) Fixed position layout
Answer: a) Product layout
2
...
Which of the following is a tool for identifying and eliminating waste
in a process?
a) Value stream mapping
b) Pareto chart
c) Fishbone diagram
d) Gantt chart
Answer: a) Value stream mapping

11

4
...
Which of the following is a method for determining the optimal order
quantity that minimizes the total inventory cost?
a) Economic order quantity
b) Reorder point
c) Safety stock
d) ABC analysis
Answer: a) Economic order quantity
6
...
Which of the following is a strategy for coordinating the flow of
materials and information among the members of a supply chain?
a) Vertical integration
b) Horizontal integration
c) Outsourcing
d) Bullwhip effect
Answer: c) Outsourcing
8
...
Which of the following is a technique for reducing variation and
improving quality by identifying and removing the causes of defects in
a process?
a) Statistical process control
b) Design of experiments
c) Root cause analysis
d) Failure mode and effects analysis
Answer: d) Failure mode and effects analysis
10
...
Explain the difference between efficiency and effectiveness in
operations management
...

2
...

Answer: The four types of processes are:
- Project: A one-time or infrequent set of activities that create a unique
product or service
...

- Job shop: A process that produces small batches of different
products or services
...

- Batch: A process that produces larger batches of similar products or
services
...

- Line: A process that produces standardized products or services at a
high rate
...


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3
...

Answer: The benefits of JIT systems are:
- Reduced inventory costs and space requirements
...

- Faster response to customer demand and market changes
...

The challenges of JIT systems are:
- High initial investment and training costs
...

- Higher risk of disruption due to external factors or internal errors
...

4
...

Answer: Push strategies are based on forecasting demand and
producing goods in advance of customer orders
...
They tend to result in higher inventory levels
and lower responsiveness
...
They are suitable for dynamic and
uncertain markets, where demand is variable and lead times are short
...

5
...

Answer: Sustainability is the ability to meet the needs of the present
without compromising the ability of future generations to meet their
own needs
...

Sustainability is relevant to operations management because it can
help:
- Reduce costs and waste by improving resource efficiency and
minimizing environmental impact
...

- Improve employee engagement and retention by creating a positive
work environment and culture
...

PAPER # 3
Part A: Multiple Choice Questions (20 marks)
1
...
Production planning and control

o

B
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Quality control

o

D
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Which of the following is a type of process layout?
o

A
...
Job shop

o

C
...
Project layout

3
...
Time series analysis

o

B
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Delphi method

o

D
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Which of the following is a type of inventory control system?
o

A
...
Economic order quantity

o

C
...
All of the above

5
...
B
2
...
D
4
...
p-chart

o

B
...
x-bar chart

o

D
...
D
Part B: Short Answer Questions (20 marks)
1
...

2
...

3
...

4
...

5
...
Operations management is the process of designing, planning, and controlling
the activities involved in producing and delivering products and services
...
The four main types of process layouts are:
o

Assembly line layout

o

Job shop layout

o

Batch processing layout

o

Project layout

3
...

Demand planning is the process of determining how to meet that demand
...
The three main types of inventory costs are:
o

Ordering costs

o

Carr

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