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| Section | Objectives |
|---|---|
| Topic 1: Forecasting and Planning | - Aggregate Planning - Demand Forecasting Methods |
| Topic 2: Operations Management Foundations | - Introduction to Operations and Productivity - Operations Strategy and Competitiveness |
| Topic 3: Project and Operations Scheduling | - Scheduling Techniques - Project Management Basics |
| Topic 4: Supply Chain and Inventory Management | - Just-in-Time (JIT) and Lean Operations - Supply Chain Design and Logistics - Inventory Models and Control Systems |
| Topic 5: Process Design and Analysis | - Capacity Planning and Bottlenecks - Process Mapping and Flow |
| Topic 6: Quality Management | - Total Quality Management (TQM) - Six Sigma and Continuous Improvement |
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NEW QUESTION # 27
What are two reasons a company might be hesitant to provide overtime as a capacity-based option?
Choose 2 answers
Answer: C,D
Explanation:
Companies may hesitate to use overtime becauseit is not a long-term solutionandit carries a wage premium
, typically around50% higher than regular pay.
Overtime can quickly increase capacity, but prolonged use leads to:
* Employee fatigue
* Quality deterioration
* Increased absenteeism
* Higher error rates
Additionally, overtime raises labor costs substantially, increasing unit production cost and reducing profitability.
The incorrect options are misleading:
* Overtime does not necessarily build excess inventory
* Overtime increases, not decreases, labor cost per unit
Operations Management views overtime as atemporary capacity buffer, appropriate for short demand spikes but risky if used continuously.
NEW QUESTION # 28
Which function does marketing play in a just-in-time (JIT) organization?
Answer: A
Explanation:
In a just-in-time (JIT) organization,marketing focuses on customer-driven quality.
Marketing provides critical input on:
* Customer expectations
* Demand patterns
* Product features
* Service requirements
This information allows operations to design processes that meet actual customer needs rather than internal assumptions. JIT requires precise alignment between demand and production, and marketing ensures that quality is defined externally by customers.
The other options confuse marketing's role with operational execution:
* Inventory flow is managed by operations
* Assembly synchronization is a production function
* Producer-driven quality contradicts TQM principles
Operations Management stresses that JIT succeeds only whenmarketing and operations are tightly integrated, with marketing acting as the voice of the customer.
NEW QUESTION # 29
Which definition used for quality evaluates how well a product performs its intended function?
Answer: C
Explanation:
The concept ofquality as "fitness for use"evaluates how well a product or service performs itsintended function from the customer's perspective. This definition was strongly emphasized by quality pioneer Joseph Juranand is widely adopted in Operations Management and Total Quality Management (TQM) frameworks.
Fitness for use means that a product must not only meet technical specifications but must alsoperform reliably, safely, and effectively in real customer usage conditions. For example, a shoe that looks attractive but causes discomfort or wears out quickly is not "fit for use," even if it meets internal manufacturing standards.
This definition contrasts with other quality perspectives:
* Support servicesfocus on after-sales service, not the product's core function.
* Value for price paidevaluates perceived value, which includes cost considerations.
* Psychological criteriarelate to image, aesthetics, or brand perception.
Operations Management emphasizes fitness for use because it directly linksdesign, production, and customer satisfaction. Products designed without considering how customers actually use them often lead to defects, complaints, and warranty costs-even if internal quality standards are met.
Fitness for use also reinforcescross-functional coordination, especially between marketing (understanding customer needs), design (translating needs into specifications), and operations (producing consistently). This definition supports continuous improvement by encouraging organizations to reduce variability, improve reliability, and focus on customer-defined quality rather than internally defined metrics alone.
NEW QUESTION # 30
Which total quality management (TQM) process was developed to stress management's responsibility for quality?
Answer: C
Explanation:
The14 Points for Quality Improvement, developed byW. Edwards Deming, explicitly stressmanagement' s responsibility for qualityand form a foundational element of Total Quality Management (TQM).
Deming argued that quality problems aresystemic, meaning they originate primarily from management- controlled processes rather than individual workers. His 14 Points call on leadership to create an environment where quality can thrive throughlong-term thinking, process improvement, and employee involvement.
Key management-focused principles include:
* Creating constancy of purpose
* Adopting a new philosophy of quality
* Eliminating dependence on inspection
* Driving out fear in the workplace
* Breaking down departmental barriers
* Instituting leadership instead of supervision
Unlikestatistical quality control charts, which are technical tools, Deming's points definemanagerial behavior and organizational culture. "Fitness for use" is a definition of quality, not a management system, and product design quality focuses only on one stage of the product lifecycle.
In Operations Management, Deming's framework reshaped how organizations view quality-shifting responsibilityupward to leadership, not downward to operators. This philosophy underpins continuous improvement, employee empowerment, and long-term competitiveness.
By emphasizing leadership accountability, the 14 Points integrate quality into strategy, operations, supplier relationships, and workforce management, making them one of the most influential contributions to modern quality management.
NEW QUESTION # 31
Why is kanban significant to the "pull" system?
Answer: C
Explanation:
Kanbanis significant to the pull system because itspecifies the exact quantity of a product that needs to be produced.
In a pull system, production is triggered byactual demand, not forecasts. Kanban cards or signals authorize the movement or production of a specific quantity only when downstream processes require it.
Kanban supports:
* Inventory reduction
* Flow synchronization
* Waste elimination
* Visual control
Each kanban represents permission to produce or move a defined quantity, preventing overproduction-one of the most costly forms of waste.
The other options are incorrect:
* Work items do not need to be identical
* Kanban applies to core production, not just support
* It does not rank organizations
Kanban is a cornerstone of JIT and lean systems because it operationalizes the pull principle in a simple, visual, and disciplined way.
NEW QUESTION # 32
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