COLLEGE OF ACCOUNTANCY

Preliminary Examination in Operations Management and TQM

NAME: _____________________________________________ SCORE: ___________ RATING: _______
YEAR/COURSE: _____________________________________

DIRECTION:
 You have one (1) hour to finish the examination.
 Use BASIC CALCULATOR for solving problems.
 Read the directions carefully.
 Avoid ERASURES.

TEST I
Direction: Write TRUE if the statement is correct and FALSE if the statement is incorrect on the blanks provided before the number.
________1. The greater the degree of customer involvement, the more challenging the design and management of operations.
________2. Measurement of productivity in service is more straightforward than in manufacturing since it is not necessary to take into
account the cost of materials.
________3. Service involves a much higher degree of customer contact than manufacturing.
________4. A modern firm has two supply chain considerations - external links with suppliers and customers, and an internal network
of flows to and between the operations function itself.
________5. Managers should most often rely on quantitative techniques for important decisions since quantitative approaches result in
more accurate decisions.
________6. Competitiveness relates to the profitability of an organization in the marketplace.
________7. A business that is rated highly by its customers for service quality will tend to be more profitable than a business that is
rated poorly.
________8. Improving efficiency will guarantee a similar improvement in productivity.
________9. Organizations that are capable of responding quickly to changing requirements can use a shorter forecast horizon and
therefore benefit from more accurate forecasts.
________10. The purpose of the forecast should be established first so that the level of detail, amount of resources, and accuracy level
can be understood.
________11. The shorter the forecast period, the more accurately the forecasts tend to track what actually happens.
________12. To save money, it is essential that designers revise the production capabilities to meet the requirements of new products.
________13. Reducing consumer choices makes service more efficient.
________14. Product failures can be easier to remedy with modular design.
________15. Most of the time what is called product or service design is actually a redesign of an existing product or service.

TEST II
Direction: Read and analyze the following statements. Write the letter of the correct answer on the blanks provided before the number.

________16. Technology choices seldom affect:

A. costs.
B. productivity.
C. union activity.
D. quality.
E. flexibility.

________17. The responsibilities of the operations manager are:

A. planning, organizing, staffing, procuring, and reviewing
B. planning, organizing, staffing, directing, and controlling
C. forecasting, designing, planning, organizing, and controlling
D. forecasting, designing, operating, procuring, and reviewing
E. designing and operating

________18. Taking a systems viewpoint with regard to operations in today's environment increasingly leads decision-makers to
consider ______________ in response to the ___________.
A. flexibility; pressure to be more efficient
B. offshoring; need to promote domestic production
C. sustainability; threat of global warming
D. technology; impact of random variation
E. forecasting; stabilization of demand

COURSE CODE: CBME 1 SUBJECT: Operations Management and TQM DATE OF EXAMINATION: ____________________
TIME: _____________________ DAY: ________________ TIME OF EXAMINATION: ____________________
Page 1
________19. Which of the following is not a benefit of using models in decision making?
A. They provide a standardized format for analyzing a problem.
B. They serve as a consistent tool for evaluation.
C. They are easy to use and less expensive than dealing with the actual situation.
D. All of the above are benefits.
E. None of the above is a benefit.

________20. Which of the following is not a key factor of competitiveness?

A. price
B. product differentiation
C. flexibility
D. after-sale service
E. size of organization

________21. For an organization to grow its market share, it must:

A. advertise using multimedia
B. lower prices
C. exceed minimum standards of acceptability for its products or services
D. establish an internet website
E. broaden its mission statement

________22. Which of the following is true?

A. Corporate strategy is shaped by functional strategies.
B. Corporate mission is shaped by corporate strategy.
C. Functional strategies are shaped by corporate strategy.
D. External conditions are shaped by corporate mission.
E. Corporate mission is shaped by functional strategies.

________23. The external elements of SWOT analysis are:

A. strengths and weaknesses
B. strengths and threats
C. opportunities and threats
D. weaknesses and opportunities
E. strengths and opportunities

________24. Which of the following factors would tend to reduce productivity?

A. improvements in workplace safety
B. reductions in labor turnover
C. more inexperienced workers
D. reductions in the scrap rate
E. none of the above

________25. Which of the following is not a step in the forecasting process?

A. determine the purpose and level of detail required
B. eliminate all assumptions
C. establish a time horizon
D. select a forecasting model
E. monitor the forecast

________26. Which of the following would be an advantage of using a sales force composite to develop a demand forecast?
A. The sales staff is least affected by changing customer needs.
B. The sales force can easily distinguish between customer desires and probable actions.
C. The sales staff is often aware of customers' future plans.
D. Salespeople are least likely to be influenced by recent events.
E. Salespeople are least likely to be biased by sales quotas.

________27. One reason for using the Delphi method in forecasting is to:
A. avoid premature consensus (bandwagon effect)
B. achieve a high degree of accuracy
C. maintain accountability and responsibility
D. be able to replicate results
E. prevent hurt feelings

________28. The research and development activity which starts after positive research results are available and attempts to turn these
results into useful commercial applications is:
A. basic research
B. applied research
COURSE CODE: CBME 1 SUBJECT: Operations Management and TQM TIME: ________________ DAY: ___________
Page 2
 C. development
D. redesign
E. commercial research

________29. One possible disadvantage of modular design is that:

A. replacement and repair is more difficult
B. failure diagnosis is more complex
C. number of configurations of modules decreases
D. individual parts lose their identities
E. inventory problems arise

________30. The process of dismantling and inspecting a competitor's new or revised product for the purpose of gleaning design ideas
is called:
A. design by imitation
B. product analysis
C. reverse engineering
D. benchmarking
E. disassembly

________31. Service design generally differs from product design in which of the following ways?
A. Service design tends to focus on tangible factors.
B. There is less latitude in detecting and correcting errors prior to delivery.
C. There is a lesser requirement to be aware of competitors' offerings.
D. There is less visibility to customers.
E. There is no difference.

________32. Which one of the following is not a factor of successful product and service design?
A. be aware of what the competitors are doing
B. be aware of what customers want
C. know what government regulations are
D. use computerized design techniques
E. know what new technologies are available

________33. One of these is not a characteristic of a well-designed service system:

A. User friendly
B. Robust
C. Distributed computer networks
D. Cost effective
E. Easy to sustain

________34. Which of the following is not one of the phases of product design and development?
A. specify product specifications
B. conduct market test
C. specify process specifications
D. conduct design review
E. performance applied research

________35. Which of the following is not true about re-manufacturing?

A. Re-manufactured products can be sold at lower cost.
B. The process requires mostly unskilled and semiskilled workers.
C. There is less depletion of natural resources.
D. It produces high quality products easily.
E. Re-manufacturing is mainly carried out by small and mid-sized companies.

TEST III
Direction: Solve the following. Write your solution at the back page of the test paper.

Sitti Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows:

Month Sales
February 19,000
March 18,000
April 15,000
May 20,000
June 18,000
July 22,000
August 20,000

COURSE CODE: CBME 1 SUBJECT: Operations Management and TQM TIME: ________________ DAY: ___________
Page 3
Forecast September sales volume using each of the following:
A. Appropriate naïve approach (3 points)
B. Five-month moving average (3 points)
C. A weighted average using .60 for August, .30 for July, and .10 for June (3 points)
D. Exponential smoothing with a smoothing constant equal to .20 (6 points)

“Every accomplishment starts with a decision to try.”

Good Luck and God Bless!
Prepared by: Ms. MARIANE ROSE L. LARRAZABAL, CPA
Instructor, Operations Management and TQM (CBME 1)

Checked by: Ms. KATHIA MARCELINA A. ENCARNACION, CPA, MBA

Program Coordinator, College of Accountancy

Noted by: Atty. ALLEN GABRIEL C. JAMILLA, CPA, MSA

Dean, College of Accountancy

COURSE CODE: CBME 1 SUBJECT: Operations Management and TQM TIME: ________________ DAY: ___________
Page 4