2026 L5M9: Updated Operations Management Valid Test Notes

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CIPS L5M9 Exam Syllabus Topics:

Section	Objectives
Topic 1: Operations Management Concepts	- Definition and scope of operations management 1. Role of operations in supply chain efficiency and effectiveness 2. Operations as transformation process (input–transformation–output) - Performance objectives of operations 1. Cost 2. Dependability 3. Quality 4. Speed 5. Flexibility
Topic 2: Operations Strategy and Performance	- Operations strategy development 1. Stages of operations strategy evolution 2. Top-down vs bottom-up strategy perspectives - Order winners and order qualifiers 1. Competitive positioning through operations capability
Topic 3: Performance Improvement in Operations	- Performance measurement and benchmarking 1. Benchmarking techniques 2. Setting performance targets - Continuous improvement approaches 1. Business process re-engineering 2. Process improvement methodologies
Topic 4: Quality and Reliability Management	- Failure prevention and recovery 1. Failure measurement and impact 2. Maintenance strategies and reliability improvement 3. Failure Mode and Effects Analysis (FMEA) - Total Quality Management (TQM) 1. Quality assurance vs total quality
Topic 5: Operations Processes and Systems	- Four Vs of operations 1. Visibility 2. Variety 3. Variation in demand 4. Volume - Process design and analysis 1. Types of operations: manufacturing and services 2. Input–transformation–output model

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CIPS Operations Management Sample Questions (Q104-Q109):

NEW QUESTION # 104
Which of the following will increase 'order winning' objectives of a retail organisation?

A. increased costs
B. streamlined operations procedures
C. improved supplier relations
D. customer loyalty

Answer: D

Explanation:
4 is the correct answer. Here you're looking for the answer which will ensure a customer always picks this business over competitors. Of the four options given, loyalty is the only one that would make sense. Remember 'order winners' are the 'customers' justification for their purchase of a product or service'- this is a direct quote from P.43

NEW QUESTION # 105
Which of the following items created by an organisation are intangible? Select TWO

A. A massage given at a Spa
B. A cup of coffee from a restaurant
C. A shirt bought at a retail outlet
D. Legal Advice provided by a solicitor

Answer: A,D

Explanation:
Legal Advice and a massage are intangible. This means you can't physically hold or see the item. There is a lot in this module on the differences between services and goods- it's important to remember that goods are tangible and services are intangible. P.56

NEW QUESTION # 106
Shireen is an Operations Manager at a cake factory. She has been asked by her manager to create a list of the transforming resources used within the factory. Which of the following would appear on her list? Select TWO

A. raw materials such as flour and sugar
B. facilities such as mixing equipment and ovens
C. employees who work on the production line
D. Information such as recipes

Answer: B,C

Explanation:
Employees and Facilities are 'transforming resources'. Raw Materials and Information are 'transformed resources'. TransformING means they do the work of converting something into something else. TransformED means they change into something. See p.45 of the study guide for more information on this.

NEW QUESTION # 107
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. no- creating products in low volumes often leads to a higher unit cost
B. no- the volume of products created does not impact upon unit costs as these are fixed in advance
C. yes- when producing low volumes of a product, cost savings can be transferred to the customer
D. yes- staff gain specialities when there is less products to create

Answer: A

Explanation:
3 is the correct answer. Firstly we look at if the sentence is true or not. It is not- so we can discount options 1 and 2. The study guide states that low volume = less specialisation and higher unit costs. It gives the example of McDonaldsbecause of the high volume of meals they produce, they have Standard Operating Procedures and staff specialising in different areas of the kitchen to ensure efficiency (one person takes the order, another person fries the burger, another makes the drinks). The higher the volume of items produced, the lower the unit cost is. This means that Option 4 is therefore incorrect.

NEW QUESTION # 108
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. production and consumption occur simultaneously
B. there is no variability in services
C. there is a transfer of ownership when purchasing a service
D. services cannot be stored, unlike goods
E. it is not possible to return a service

Answer: A,D,E

Explanation:
The correct sentences are 2, 3 and 5. This is from the table comparing services and goods on p.47. Note that you can ask for a refund if you're unhappy with a service, but you can't physically return the service you've received. Option 1 is incorrect- there is no transfer of ownership with services (there is with goods). Option 4 is incorrect as every service is different- there is a high level of variability in delivery.

NEW QUESTION # 109
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