Business Operations and Quality Management Quiz

Identify 3 operational targets?

• Increase production efficiency

• Enhance customer satisfaction

• Reduce operational costs

• Expand market reach

What is meant by capacity and capacity utilisation?

• Capacity refers to the maximum output a company can produce, while capacity utilisation measures how much of that capacity is being used.

• Capacity is the amount of resources a company has, and capacity utilisation is the efficiency of resource usage.

• Capacity is the total number of employees, and capacity utilisation is the number of employees actively working.

• Capacity is the total production cost, and capacity utilisation is the cost efficiency.

What is the formula for capacity utilisation?

• (Actual Output / Maximum Possible Output) x 100

• (Maximum Possible Output / Actual Output) x 100

• (Actual Output + Maximum Possible Output) / 2

• (Maximum Possible Output - Actual Output) x 100

What is the formula for labour productivity?

• Labour productivity = Total output / Total input

• Labour productivity = Total input / Total output

• Labour productivity = Total output * Total input

• Labour productivity = Total input - Total output

What is the formula for unit costs (average costs)?

• Total Cost / Quantity

• Total Revenue / Quantity

• Total Profit / Quantity

• Total Variable Cost / Quantity

What might a business do in case of capacity shortage?

• Increase prices

• Outsource production

• Reduce marketing efforts

• Lay off employees

Why is demand not easy to predict?

• Because of constant market changes

• Due to stable consumer preferences

• Because of predictable economic conditions

• Due to fixed supply levels

What action can a business take to manage supply to match demand?

• Increase production capacity

• Implement demand forecasting

• Reduce workforce

• Ignore market trends

What is meant by productivity?

• The amount of goods and services produced per unit of labor

• The total number of hours worked in a week

• The level of satisfaction among employees

• The number of tasks completed in a day

Which of the following is a method a business can use to increase its productivity?

• Implementing new technology

• Reducing employee benefits

• Increasing working hours without breaks

• Ignoring employee feedback