OPM 3000 Exam 2025 Questions and
Answers
Operations Management - ANS Match supply with demand while making a profit and being
efficient
How to make profit - ANS drive up demand or by using resources more efficiently
How to match supply with demand - ANS Predict/react to consumer demand and allocate
resources efficiently to meet those predictions
Why might it be hard to match supply with demand - ANS demand is fluid, supply is generally
inflexible
Utility - ANS measure of customers preferences. Consumption utility, price, and
inconvenience
Consumption utility - ANS a measurement of how much you like a service ignoring the
effects of price and its inconvenience
Inconvenience - ANS reduction in utility that results from the effort of obtaining the product
or service
Pg. 1 Copyright © 2025 Jasonmcconell. ALL RIGHTS RESERVED.
,Pareto dominated - ANS when a firm's product or service is inferior to competitors on ALL
dimensions of the customer utility function
Efficient frontier - ANS the set of firms that are not pareto dominated
Inefficiency frontier - ANS the gap between a firm and the efficient frontier
How to overcome inefficiency - ANS being mindful of waste, variability and inflexibility
Waste - ANS the consumption of inputs and resources that do not add value to the customer
Variability - ANS predictable or unpredictable changes in the demand or the supply process
Inflexibility - ANS the inability to adjust to either changes in the supply process or changes in
customer demand
Questions managers face everyday - ANS is our process performing well? How can we make
it better?
Process - ANS a set of activities that take a collection of inputs, perform some work or
activities with those inputs, and then yield a set of outputs
Process scope - ANS the set of activities and processes included in the process
Flow unit - ANS the unit of analysis that is considered in a process analysis (riders at an
amusement park)
Pg. 2 Copyright © 2025 Jasonmcconell. ALL RIGHTS RESERVED.
, Process metric - ANS something we can measure that informs us about the performance and
capability of a process
Inventory - ANS number of flow units that's in process. Takes up space and costs money
Flow rate - ANS the rate at which flow units travel through a process (customers per minute).
The minimum of demand or process capacity
Flow time - ANS the time a flow unit spends in a process, from start to finish
Littles law - ANS the law that describes the relationship between three key process metrics:
Inventory = flow rate * flow time
Process Analysis - ANS a rigorous framework for understanding the detailed operations of a
business
Process flow diagram - ANS graphical way to describe the process. Boxes depict resources
arrows depict the direction of flow units and triangles to depict inventory location
Upstream - ANS the parts of the process that are at the beginning of the process flow
Downstream - ANS the parts of the process that are at the end of the process flow
Processing time - ANS the time it takes a resource to complete one flow unit
Capacity - ANS the maximum number of flow units that can flow through a resource per unit
of time
Pg. 3 Copyright © 2025 Jasonmcconell. ALL RIGHTS RESERVED.
Answers
Operations Management - ANS Match supply with demand while making a profit and being
efficient
How to make profit - ANS drive up demand or by using resources more efficiently
How to match supply with demand - ANS Predict/react to consumer demand and allocate
resources efficiently to meet those predictions
Why might it be hard to match supply with demand - ANS demand is fluid, supply is generally
inflexible
Utility - ANS measure of customers preferences. Consumption utility, price, and
inconvenience
Consumption utility - ANS a measurement of how much you like a service ignoring the
effects of price and its inconvenience
Inconvenience - ANS reduction in utility that results from the effort of obtaining the product
or service
Pg. 1 Copyright © 2025 Jasonmcconell. ALL RIGHTS RESERVED.
,Pareto dominated - ANS when a firm's product or service is inferior to competitors on ALL
dimensions of the customer utility function
Efficient frontier - ANS the set of firms that are not pareto dominated
Inefficiency frontier - ANS the gap between a firm and the efficient frontier
How to overcome inefficiency - ANS being mindful of waste, variability and inflexibility
Waste - ANS the consumption of inputs and resources that do not add value to the customer
Variability - ANS predictable or unpredictable changes in the demand or the supply process
Inflexibility - ANS the inability to adjust to either changes in the supply process or changes in
customer demand
Questions managers face everyday - ANS is our process performing well? How can we make
it better?
Process - ANS a set of activities that take a collection of inputs, perform some work or
activities with those inputs, and then yield a set of outputs
Process scope - ANS the set of activities and processes included in the process
Flow unit - ANS the unit of analysis that is considered in a process analysis (riders at an
amusement park)
Pg. 2 Copyright © 2025 Jasonmcconell. ALL RIGHTS RESERVED.
, Process metric - ANS something we can measure that informs us about the performance and
capability of a process
Inventory - ANS number of flow units that's in process. Takes up space and costs money
Flow rate - ANS the rate at which flow units travel through a process (customers per minute).
The minimum of demand or process capacity
Flow time - ANS the time a flow unit spends in a process, from start to finish
Littles law - ANS the law that describes the relationship between three key process metrics:
Inventory = flow rate * flow time
Process Analysis - ANS a rigorous framework for understanding the detailed operations of a
business
Process flow diagram - ANS graphical way to describe the process. Boxes depict resources
arrows depict the direction of flow units and triangles to depict inventory location
Upstream - ANS the parts of the process that are at the beginning of the process flow
Downstream - ANS the parts of the process that are at the end of the process flow
Processing time - ANS the time it takes a resource to complete one flow unit
Capacity - ANS the maximum number of flow units that can flow through a resource per unit
of time
Pg. 3 Copyright © 2025 Jasonmcconell. ALL RIGHTS RESERVED.
