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CIPS Operations Management Sample Questions (Q94-Q99):
NEW QUESTION # 94
According to the Taguchi Loss Function there are two types of costs incurred when there is an issue with quality. What are these?
- A. private costs and public costs
- B. financial costs and reputational costs
- C. private costs and social costs
- D. social costs and environmental costs
Answer: C
Explanation:
The correct answer is private costs and social costs. Private costs include internal costs to the business (such as downtime, loss of staff/ money etc) and social costs affect the community and environment. P.133
NEW QUESTION # 95
A manufacturing company makes taps which they advertise with a guarantee of durability for 10 years. At which point in time would you expect most defects to be found?
- A. between 1-2 years
- B. Within the first year
- C. between 5-6 years
- D. between 2-5 years
Answer: B
Explanation:
The correct answer is within the first year. Failure rates is depicted as a 'bathtub' curve- most defects are found right at the beginning of an item's lifespan, and right at the end. This is why option 1 is correct. See p.94 for more details.
NEW QUESTION # 96
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. volume
- B. variety
- C. variation
- D. visibility
Answer: D
Explanation:
The correct answers are as follows:
NEW QUESTION # 97
The operating process which ensures projects are completed according to customers' specifications is known as what?
- A. procurement
- B. project management
- C. process selection
- D. quality control
Answer: D
Explanation:
This is quality control. The definition is taken from p.64. It comes under the section on construction, but can be applied to other industries too, particularly manufacturing.
NEW QUESTION # 98
Elderberry Ltd is an established organisation in the agricultural industry but has recently expanded into manufacturing its own juice range. The company is at the 'Introduction' stage of the product lifecycle and is attempting to bring new products to market. Which of the following performance objectives would be the most dominant at this stage of the lifecycle?
- A. speed
- B. flexibility
- C. cost
- D. dependability
Answer: B
Explanation:
This is flexibility. P.40 details the stages of product lifecycle and the dominant performance objective. It states: introduction stage = flexibility, growth stage = speed, maturity = quality and costs, decline stage= cost. Now whether or not you agree with this completely, this is what the study guide says and is worth remembering. (I personally think cost is very important at the introductory stage, because if you don't recoup your costs and break even, you won't ever get to the maturity stage- but CIPS says flexibility is most important at this stage, so that's the correct answer for the exam).
NEW QUESTION # 99
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