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| Section | Objectives |
|---|---|
| Topic 1: Competency 3: Process Improvement and Problem Solving | - Six Sigma methodology - Lean operations and waste elimination - Cause-and-effect diagrams (fishbone diagrams) - Plan-Do-Study-Act (PDSA) cycle - Statistical Process Control (SPC) |
| Topic 2: Competency 1: Operations Management Fundamentals | - Product and service design - Operations strategy and competitive priorities - History and evolution of operations management |
| Topic 3: Competency 2: Quality Management | - Total Quality Management (TQM) - Cost of quality (prevention, appraisal, internal/external failure) - Malcolm Baldrige National Quality Award criteria - Quality management philosophies (Deming, Juran, Crosby) |
| Topic 4: Competency 4: Supply Chain Management | - Supply chain design and strategy - Inventory management - Logistics and distribution - Sourcing and procurement |
| Topic 5: Competency 5: Capacity Planning and Facility Layout | - Location analysis and decisions - Capacity planning strategies - Facility layout types (process, product, cellular, fixed-position) |
| Topic 6: Competency 7: Forecasting | - Forecast accuracy measures - Qualitative forecasting methods - Quantitative forecasting methods (moving averages, exponential smoothing) |
| Topic 7: Competency 6: Production Planning and Scheduling | - Just-in-Time (JIT) and Kanban systems - Material Requirements Planning (MRP) - Aggregate planning - Theory of Constraints (TOC) - Master Production Schedule (MPS) |
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NEW QUESTION # 69
How does inventory management differ for manufacturing organizations compared to service organizations?
Answer: C
Explanation:
Manufacturing organizations differ from service organizations because they mustmaintain tangible inventory
.
In manufacturing, inventory includes:
* Raw materials
* Work-in-progress
* Finished goods
These physical items require storage, handling, tracking, and capital investment. Inventory management is therefore a central operational concern in manufacturing.
Service organizations, by contrast, typically do not produce tangible goods. Their primary "inventory" consists of:
* Labor availability
* Time
* Capacity
Idle capacity in services cannot be stored for future use, making demand management more critical than inventory storage.
The incorrect options misrepresent service and manufacturing realities:
* Services do not maintain physical WIP
* Manufacturers do not hold inventory regardless of demand
* Idle time in services is not caused by material shortages
Operations Management highlights inventory as afundamental structural differencebetween manufacturing and service systems.
NEW QUESTION # 70
What is the name of the model that has been created to examine the four different supply chain perspectives of reliability, flexibility, expenses, and assets/utilization?
Answer: D
Explanation:
TheSCOR (Supply Chain Operations Reference) modelevaluates supply chains across four key dimensions:
reliability, responsiveness/flexibility, cost, and asset utilization.
Developed by the Supply Chain Council, SCOR provides:
* Standardized performance metrics
* Best-practice process definitions
* A common supply chain language
Operations Management uses SCOR to benchmark performance, identify gaps, and align supply chain strategy with business objectives.
The other options are not recognized industry models.
NEW QUESTION # 71
What is a major factor in the decision to locate a business near its primary market territory?
Answer: B
Explanation:
Comprehensive and Detailed Explanation (#250 words):
The dominant factor in locating a business near its primary market territory isproximity to customers.
From an Operations Management perspective, closeness to customers:
* Reduces transportation and delivery time
* Improves service responsiveness
* Enhances customer satisfaction
* Supports demand growth
This is especially critical for service organizations and distribution-intensive businesses, where customer access and speed are competitive advantages.
While proximity to labor is important, it does not define market territory. Community centers and parks are not operational drivers.
Locating near customers aligns capacity with demand, minimizes logistics complexity, and strengthens market presence.
NEW QUESTION # 72
A company manufactures and distributes its own products.
When should the company consider outsourcing its distribution?
Answer: C
Explanation:
A company should consider outsourcing distributionwhen it determines that distribution is no longer a core function.
Operations Management defines core functions as activities that:
* Create competitive advantage
* Differentiate the firm
* Require proprietary knowledge or capabilities
If distribution does not meet these criteria, outsourcing can:
* Lower costs
* Improve service reliability
* Increase scalability
* Allow management to focus on strategic priorities
The other options do not justify outsourcing:
* Forecasting difficulty is a management issue
* Lowest-cost operators should retain distribution
* Regulations do not eliminate strategic relevance
Outsourcing decisions must align with long-term operations strategy, not short-term cost fluctuations.
NEW QUESTION # 73
What is a key factor of a location analysis for a service company?
Answer: C
Explanation:
Comprehensive and Detailed Explanation (#250 words):
The most critical factor in a service company's location analysis isproximity to customers.
Service operations differ fundamentally from manufacturing because theservice is often produced and consumed simultaneously. As a result, customer access, convenience, and responsiveness are central determinants of demand and satisfaction.
From an Operations Management perspective, proximity to customers:
* Reduces waiting and travel time
* Increases service usage frequency
* Improves customer perception of reliability and availability
* Enables faster response to service failures
Examples include healthcare facilities, retail stores, hospitality, and professional services. In all cases, distance acts as ademand deterrent.
The other options are secondary:
* Community relations are important but not decisive
* Best operating level and effective capacity are internal capacity measures, not location drivers Thus, service location strategy prioritizesmarket access over production efficiency, reinforcing customer- centric operations.
NEW QUESTION # 74
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