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CIPS Operations Management Sample Questions:

1. Companies that have high-visibility processes require higher levels of customer management skills than companies with low-visibility processes. Is this TRUE?

A) yes- high visibility companies often have lower operating costs because of this
B) no- low visibility companies must focus on increasing levels of customer service
C) yes- high visibility companies often have higher operating costs because of this
D) no- all companies require customer management skills

2. 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 2?

A) sales
B) finance
C) procurement
D) production

3. 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) yes- operations management is ensuring a company has the correct resources to create goods
C) no - operations management can also be concerned with the creation of intangible goods
D) no- operations management is concerned with ensuring the organisation is profitable

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

5. 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 a transfer of ownership when purchasing a service
C) there is no variability in services
D) services cannot be stored, unlike goods
E) it is not possible to return a service

Solutions: