Penny is the Operations Manager at a small furniture manufacturing company that makes tables and chairs, among other wooden household items. In the manufacturing site there is a small warehouse which stores inventory which is used in unforeseen circumstances such as a late delivery. What is the name given to this type of inventory?

• A. transit inventory
• B. buffer stock
• C. anticipation inventory
• D. work-in progress

There are four manufacturing companies located on Seashell Industrial Estate. Each company creates a different product and employs a different maintenance approach to its operations. For each company, select the corresponding maintenance approach and the key operating process characteristic.
Company 1: This company creates craft beer and offers customers a tour of the brewery for a small charge. The brewing equipment is serviced monthly and the brewery is kept extremely clean. All equipment is labelled with the last service date.
Company 2: This company produces seasonal items such as Easter Eggs and Christmas Cake. The equipment has a control panel where lights will flash red advising staff to check oil levels and components. Staff can then report issues to the maintenance team if remedial work is required. Product demand fluctuates throughout the year.
Company 3: This equipment does not often break down and is only fixed when it is reported by staff as no longer working. Company 3 creates toys, providing a large range of product sizes and colours based on different customer requirements.
Company 4: Parts of the machine are serviced quarterly but in general, the machine is left to run its course and is then replaced when it is no longer financially viable to fix. The company produces cereal and the operating process is focused on the quantity produced and therefore uses standardised processes.
Complete the table below by listing the maintenance approach and operating process characteristic for each company. Each response should only be used once: preventative maintenance, run to breakdown maintenance, condition-based maintenance, mixed maintenance, volume, visibility, variation, variety

Which of the following will you put into box 3?

• A. mixed maintenance
• B. preventative maintenance
• C. run-to-breakdown maintenance
• D. condition-based maintenance

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. there is no variability in services
• B. there is a transfer of ownership when purchasing a service
• C. production and consumption occur simultaneously
• D. services cannot be stored, unlike goods
• E. it is not possible to return a service

Which of the following situations would use a fixed-position layout?

• A. buffet style restaurant
• B. vehicle assembly
• C. ship construction
• D. supermarket

The goal of Operations Management is to create processes which ensure the three Es: Efficiency, Effectiveness and Efficacy. What is meant be Efficacy?

• A. the process meets the intended purpose
• B. the process produces as little waste as possible
• C. the process is cost-effective
• D. the process is optimised