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| Section | Objectives |
|---|
| Operations Processes and Systems | - Process design and analysis
- 1. Types of operations: manufacturing and services
- 2. Input–transformation–output model
- Four Vs of operations
- 1. Variety
- 2. Visibility
- 3. Variation in demand
- 4. Volume
|
| 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
|
| Performance Improvement in Operations | - Continuous improvement approaches
- 1. Business process re-engineering
- 2. Process improvement methodologies
- Performance measurement and benchmarking
- 1. Benchmarking techniques
- 2. Setting performance targets
|
| Operations Management Concepts | - Definition and scope of operations management
- 1. Operations as transformation process (input–transformation–output)
- 2. Role of operations in supply chain efficiency and effectiveness
- Performance objectives of operations
- 1. Dependability
- 2. Quality
- 3. Flexibility
- 4. Cost
- 5. Speed
|
| Quality and Reliability Management | - Total Quality Management (TQM)
- 1. Quality assurance vs total quality
- Failure prevention and recovery
- 1. Maintenance strategies and reliability improvement
- 2. Failure Mode and Effects Analysis (FMEA)
- 3. Failure measurement and impact
|
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CIPS Operations Management Sample Questions (Q57-Q62):
NEW QUESTION # 57
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. services cannot be stored, unlike goods
- B. there is no variability in services
- C. it is not possible to return a service
- D. there is a transfer of ownership when purchasing a service
- E. production and consumption occur simultaneously
Answer: A,C,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 # 58
When quality is used as a foundation to build improvements in other areas such as dependability, what is this theory known as?
- A. bridge theory
- B. sand cone theory
- C. wave theory
- D. brick-laying theory
Answer: B
Explanation:
This is the Sand Cone Theory from p.84. The other options are not real. The Sand Cone theory is about building a strong base, and then building something up one bit at a time, i.e. once you've got quality you then add in dependability, then you add in cost etc.
NEW QUESTION # 59
Below are details of five companies who operate a Total Quality Management System (TQM). For each company, select the system used and identify which area of the Balanced Scorecard this relates to.
Company 1: The focus of this company is to gather real-time data to assess the quality of products created during the manufacturing process. There are tight budgets and reworking any defects will affect the bottom line.
Company 2: This company is concerned about how their products are received. They have recently completed market research focused on their client's feelings. The objective is now to improve the product's look and performance to meet these expectations.
Company 3: The focus of this company is defining the customer requirements and translating this into a high-quality specification and effective operational process.
Company 4: Within this company there is a group of 6 employees who meet regularly with the objective of reducing issues that arise in the manufacturing of products.
Complete the table below by listing the TQM System used and the relevant Balanced Scorecard criteria for each company. Each response should only be used once: Quality Circle, Statistical Process Control, Kansei Engineering, Quality Function Deployment, Finance Criteria, Business Process Criteria, Learning and Growth Criteria, Customer Criteria.

Which of the following will you put into box 5?
- A. customer criteria
- B. finance criteria
- C. business process criteria
- D. learning and growth criteria
Answer: B
Explanation:
The correct answers are as follows:

NEW QUESTION # 60
Which of the following is a benefit to a company of introducing TQM?
- A. higher profit margins
- B. increased customer loyalty
- C. benchmarking is made easier
- D. improved supplier relations
Answer: B
Explanation:
Increased customer loyalty is a benefit of TQM (p.107). This is because the focus of TQM is customer satisfaction and this in turn will lead to customer loyalty.
NEW QUESTION # 61
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. finance
- C. environment
- D. business processes
Answer: C
Explanation:
Environment is not traditionally measured- the other missing criteria is learning and development. This is an approach developed by Kaplan and Norton and there's often at least one question in the exam on this. I recommend learning this as it does also come up in other modules at Level 5 too. For a rounded view of the Balanced Scorecard framework check out this YouTube video: https://www.youtube.com/watch?v=lGJ-25hikHA
NEW QUESTION # 62
......
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