Operations methods practice questions.

State which production method is most suitable for producing a large volume of identical, standardised products at low unit cost.

• Job production
• Batch production
• Flow production
• Cell production

Answer: Flow production

Flow (mass) production makes large quantities of identical, standardised items continuously on an assembly line, giving low unit costs through economies of scale.

A bakery makes a tray of 200 white loaves, then switches the line to make a tray of 200 rye loaves, and so on. Identify the production method being used.

• Job production
• Batch production
• Flow production
• Mass customisation

Answer: Batch production

Batch production makes groups (batches) of identical items, completing one stage for the whole batch before switching to a different product, exactly as with the loaves.

Distinguish between outsourcing and offshoring by selecting the correct description of offshoring.

• Contracting another firm in the same country to perform a business activity
• Relocating a business activity to another country
• Bringing a previously outsourced activity back in-house
• Selling a division of the business to a foreign competitor

Answer: Relocating a business activity to another country

Offshoring means moving a business activity abroad (to another country); outsourcing means contracting the activity to a third party, which may be domestic or overseas.

Explain the main benefit of mass customisation as a production approach.

• It abandons all standardisation to make every item completely unique
• Flexible processes give tailored products at near mass-production cost
• It removes the customer entirely from the design of the product
• It only works for services and never for physical goods

Answer: Flexible processes give tailored products at near mass-production cost

Mass customisation uses flexible, often technology-driven, processes to offer products tailored to customers while retaining much of the low cost and speed of mass production.

Suggest the most likely operations reason a growing craft business would switch from job production to batch production.

• To make each product completely unique to every customer
• To raise output and cut unit costs while keeping some variety
• To eliminate all inventory from the business entirely
• To remove the need for any skilled workers

Answer: To raise output and cut unit costs while keeping some variety

Batch production allows higher volumes and lower unit costs than job production while still permitting different product varieties, suiting a business scaling up demand.

Which condition is required for flow (mass) production to be cost-effective?

• a workforce of highly skilled craftspeople
• frequent changes to the product specification
• small orders that each differ from one another
• high and steady demand for a standard product

Answer: high and steady demand for a standard product

Flow production relies on a continuously running line, so the heavy investment in machinery is only recovered if demand is large and predictable. Skilled craftspeople, varied specifications and small individual orders all point to job or batch production instead.