A Level Business (A2) chapter 4: Operations management MCQs with answers
By Team Megalecture · Updated 4 Nov 2026
90 exam-style questions on Operations management, each with the answer and a short explanation. Ten of them are below to try. The chapter test draws ten fresh questions each time and is marked the moment you finish, with your score by topic.
Try each one, then open the answer. These ten stay the same; the test draws new ones every time.
1. Which of the following is a common problem when a business introduces TQM?
A
Employees resist the changes to their working methods and responsibilities
B
Employees are given less training than before
C
Quality problems are hidden until they are found at final inspection by managers
D
Customers complain more about delivery times
Show answer
Answer: A. TQM needs a change of culture, which can meet resistance, and it requires more training and involvement rather than less. It aims to find problems early rather than at final inspection.
2. A firm with three factories uses ERP to see machine usage in each plant and moves orders to the plant with spare capacity. Which improvement is this?
A
Faster payment of dividends
B
Lower rates of taxation
C
Better capacity utilisation
D
A wider product range
Show answer
Answer: C. Shared data on capacity lets the firm balance the workload between sites, so less capacity is idle. It does not affect tax or dividends.
3. Which of the following best describes Total Quality Management (TQM)?
A
A separate quality department inspects all output before it is sold
B
A method of comparing the firm’s performance with that of its best competitor in the industry
C
Every employee shares responsibility for meeting customer requirements and preventing defects
D
A system of random testing of a small sample from each batch
Show answer
Answer: C. TQM makes quality the responsibility of everyone in the organisation, aiming for continuous improvement and no defects. Departmental inspection and sampling are quality control; comparison with the best is benchmarking.
4. A factory uses sensors and artificial intelligence (AI) to analyse machine data so that repairs are carried out before breakdowns occur. What is the main operational benefit?
A
Fewer sales transactions
B
A lower rate of corporation tax on the firm’s annual profits
C
Less unplanned downtime and higher capacity utilisation
D
Higher wages for operators
Show answer
Answer: C. Predictive maintenance reduces unexpected stoppages, so machines produce for more of the time. It has no direct effect on tax, wages or the number of sales.
5. Which is a limitation of cell production as a way of achieving lean production?
A
Workers have less responsibility for their work than they had on a conventional line
B
Workers must be multi-skilled, so more training is needed and pay may rise
C
Inventory levels rise sharply
D
Quality becomes harder to monitor
Show answer
Answer: B. Team-based cells need workers who can do several tasks, which costs training and often pay. The approach normally increases responsibility and reduces inventory.
6. A firm plans to introduce complex computer-controlled machinery, but only 3 of its 30 operators have the skills to run it. Which operations decision is most directly affected by this human resource constraint?
A
The timing and speed of introducing the new process
B
The colour and design of the packaging used for the product
C
The price of the finished product
D
The firm’s choice of brand name
Show answer
Answer: A. Without trained staff the new process cannot run effectively, so the firm must recruit or train first and this determines when the change can happen. Packaging, price and brand are marketing decisions.
7. Which best describes kaizen?
A
A single large project to replace all of the equipment in the factory
B
A system for delivering materials just before they are needed
C
Continuous small improvements suggested and carried out by all employees
D
A team that designs a product at the same time as production is planned
Show answer
Answer: C. Kaizen is the continuous improvement approach involving everyone in small, regular changes. Delivering materials when needed is JIT and parallel design and planning is simultaneous engineering.
8. Which is a limitation of critical path analysis?
A
It cannot identify the minimum project duration or the critical path itself
B
Activity durations are estimates, so the critical path can change as work proceeds
C
It cannot show how activities depend on each other or which come first
D
It guarantees that the project will be finished on time if every estimate is used
Show answer
Answer: B. CPA depends on time estimates that can be wrong, and delays to non-critical activities may create a new critical path. It does show dependencies and minimum duration but cannot guarantee completion.
9. A family firm could expand but the owner prefers to stay small in order to keep full control of the business. Which factor influencing scale does this illustrate?
A
The size of the market
B
The availability of finance
C
The owner’s objectives
D
The number of competitors
Show answer
Answer: C. When an owner limits growth to retain control, the size of the business is being set by the owner’s own aims. The market or finance may allow growth, but the owner is choosing not to use it.
10. Relocating a factory has one-off costs of $480 000. It will save $120 000 a year in rent and $40 000 a year in wages, but add $30 000 a year in distribution costs. What is the payback period for the relocation?
A
About 3.0 years
B
About 4.0 years
C
About 2.5 years
D
About 3.7 years
Show answer
Answer: D. Net annual saving = 120 000 + 40 000 − 30 000 = $130 000, so payback = 480 000 ÷ 130 000 = 3.69 years. Ignoring the extra distribution cost gives 3.0 years; ignoring the wage saving gives 4.0.
90, each with the answer and a short explanation, across 3 topics: Location and scale, Quality management, Operations strategy. Every chapter test draws ten of them, so you can take it many times.
Is the A Level Business (A2) chapter 4 test free?
Yes. The test, the answers and the explanations are free and need no sign-up. Sign in only if you want your scores kept across devices.
How is the chapter test marked?
The moment you press Finish: your score, the right answer and an explanation for every question, and the ones you got wrong saved in My mistakes to retry.
