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| Section | Objectives |
|---|---|
| Topic 1: Quality Management | - Total Quality Management (TQM) - Six Sigma and Continuous Improvement |
| Topic 2: Process Design and Analysis | - Capacity Planning and Bottlenecks - Process Mapping and Flow |
| Topic 3: Project and Operations Scheduling | - Project Management Basics - Scheduling Techniques |
| Topic 4: Forecasting and Planning | - Aggregate Planning - Demand Forecasting Methods |
| Topic 5: Operations Management Foundations | - Introduction to Operations and Productivity - Operations Strategy and Competitiveness |
| Topic 6: Supply Chain and Inventory Management | - Supply Chain Design and Logistics - Just-in-Time (JIT) and Lean Operations - Inventory Models and Control Systems |
>> Key Operations-Management Concepts <<
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NEW QUESTION # 29
What are two common drawbacks of implementing an enterprise resource planning (ERP) solution?
Choose 2 answers
Answer: B,D
Explanation:
Comprehensive and Detailed Explanation (#270 words):
Two widely recognized drawbacks of ERP implementations are that theytake a long time to implement (and to realize benefits)andrequire extensive, often complex training-optionsAandB.
ERP systems integrate data and processes across functions (planning, procurement, production, inventory, finance, distribution). That integration is valuable, but it also makes implementation complex: processes must be aligned, data standardized, roles clarified, and change managed across departments. As a result, organizations often experience long project timelines before stable adoption and measurable benefits occur.
Training is a major burden because ERP changes how people work day-to-day. Users must learn new transaction flows, reporting logic, and discipline in data entry. Without strong training, adoption collapses into workarounds, bad data, and loss of trust in the system.
This connects to the operations principle that planning and control systems are "mechanisms and operating logics" used to manage resources and supplies over time to meet requests. ERP is one such enabling infrastructure-but it must support operations rather than become a constraint.
While customization can be an issue in some cases, the most universal drawbacks across organizations remain time-to-valueandtraining complexity, makingA and Bthe best answers.
NEW QUESTION # 30
What is the measure of how much supply chain is owned or operated by the manufacturer?
Answer: C
Explanation:
Vertical integrationmeasures how much of the supply chain isowned or controlled by the manufacturer.
In Operations and Supply Chain Management, vertical integration refers to the degree to which a firm performs activities upstream (suppliers) or downstream (distribution, retail) rather than relying on external partners. A highly vertically integrated company may own raw material sources, manufacturing plants, distribution centers, and even retail outlets.
Vertical integration affects:
* Cost structure
* Control over quality
* Lead times
* Supply reliability
* Strategic flexibility
The other options are not standard measures:
* Horizontal integration refers to acquiring competitors at the same stage
* "Insource" and "outsource integration" are not formal OM terms
Operations strategy evaluates vertical integration carefully because while it increases control, it also:
* Requires high capital investment
* Reduces flexibility
* Increases managerial complexity
Thus, vertical integration directly quantifies how much of the supply chain the manufacturer owns or operates.
NEW QUESTION # 31
Which formula would compute process velocity?
Answer: B
Explanation:
Process velocityis computed using the ratio:
Process Velocity = Throughput Time / Value-Added Time
This metric measures how efficiently time is used within a process. A high ratio indicates excessivenon- value-added time, such as waiting, moving, or rework.
Operations Management focuses on reducing throughput time while maximizing value-added activities.
Process velocity highlights inefficiencies that are often invisible in traditional productivity measures.
The other formulas measure different concepts:
* Resource utilization (A)
* Performance efficiency (B)
* Productivity (D)
A low process velocity (closer to 1) indicates a lean, efficient process, while high values suggest opportunities for improvement.
NEW QUESTION # 32
What is a bottleneck in a flowchart?
Answer: C
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Abottleneckis thelongest task in the process, limiting the overall system throughput.
In Operations Management, the bottleneck determines themaximum capacity of the entire system. No matter how efficient other stages are, output cannot exceed the bottleneck's capacity.
Bottlenecks cause:
* Queue buildup
* Increased waiting time
* Underutilization of downstream resources
Identifying bottlenecks through flowcharts and process mapping is essential for process improvement. Once identified, managers can:
* Add capacity
* Reallocate resources
* Improve task methods
* Reduce variability
The other options do not define bottlenecks:
* Independent stages do not restrict flow
* Production leveling smooths output
* Storage areas indicate inventory, not constraints
TheTheory of Constraintsreinforces that improving non-bottleneck stages has little impact unless the bottleneck is addressed.
NEW QUESTION # 33
A company suddenly finds demand has increased to 140% of its previous capacity. It has been able to hire only a fraction of the employees previously laid off, and a warehouse fire destroyed 80% of its inventory.
Which two options does the company have to rapidly meet the new demand?
Choose 2 answers
Answer: B,C
Explanation:
When demand rises suddenly to140% of existing capacity, the firm must rely onshort-term, flexible capacity optionsto respond quickly.
The two appropriate options are:
* Hiring temporary workers
* Subcontracting a portion of production capacity
Temporary workers can be deployed rapidly with minimal onboarding time, allowing the firm to increase output without long-term labor commitments. This option is especially effective when the demand surge may be temporary or uncertain.
Subcontracting provides immediate access toexternal capacitywithout requiring capital investment. It allows the firm to meet demand while avoiding the risks associated with permanent expansion.
The other options are not viable in the short term:
* Building new facilities is capital-intensive and slow
* Hiring and training full-time employees requires time and long-term commitment Operations Management distinguishescapacity-based optionsinto short-term (temporary labor, overtime, subcontracting) and long-term (facilities, permanent workforce). In crisis situations, speed and flexibility dominate decision-making.
NEW QUESTION # 34
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