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| Section | Objectives |
|---|---|
| Topic 1: Competency 7: Forecasting | - Quantitative forecasting methods (moving averages, exponential smoothing) - Qualitative forecasting methods - Forecast accuracy measures |
| Topic 2: Competency 2: Quality Management | - Cost of quality (prevention, appraisal, internal/external failure) - Malcolm Baldrige National Quality Award criteria - Quality management philosophies (Deming, Juran, Crosby) - Total Quality Management (TQM) |
| Topic 3: Competency 5: Capacity Planning and Facility Layout | - Location analysis and decisions - Capacity planning strategies - Facility layout types (process, product, cellular, fixed-position) |
| Topic 4: Competency 3: Process Improvement and Problem Solving | - Lean operations and waste elimination - Six Sigma methodology - Statistical Process Control (SPC) - Cause-and-effect diagrams (fishbone diagrams) - Plan-Do-Study-Act (PDSA) cycle |
| Topic 5: Competency 4: Supply Chain Management | - Sourcing and procurement - Inventory management - Supply chain design and strategy - Logistics and distribution |
| Topic 6: Competency 1: Operations Management Fundamentals | - History and evolution of operations management - Operations strategy and competitive priorities - Product and service design |
| Topic 7: Competency 6: Production Planning and Scheduling | - Aggregate planning - Just-in-Time (JIT) and Kanban systems - Material Requirements Planning (MRP) - Master Production Schedule (MPS) - Theory of Constraints (TOC) |
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NEW QUESTION # 33
What is a key factor of a location analysis for a service company?
Answer: D
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 # 34
Which statement is true about capacity requirements planning (CRP)?
Answer: B
Explanation:
The correct statement aboutCapacity Requirements Planning (CRP)is thatavailable capacity is compared to calculated workloads of relevant items.
CRP is a planning technique used after material requirements planning (MRP). While MRP determineswhat andwhenmaterials are needed, CRP verifies whether the organization hassufficient capacity-in terms of machines, labor, and work centers-to execute the planned production schedule.
CRP works by:
* Translating planned orders into workload requirements
* Assigning those workloads to specific work centers
* Comparing required capacity with available capacity
* Identifying overloads or underutilization
The incorrect options misrepresent CRP:
* CRP does not create capacity; it evaluates feasibility
* Human capital adequacy is part of workforce planning, not CRP's primary role
* CRP evaluates workloads in relation to the whole system, not isolated items Operations Management emphasizes CRP as afeasibility check, ensuring that production plans are realistic and executable before release to the shop floor.
NEW QUESTION # 35
A construction company produces furnished pre-fabricated manufactured homes. The production manager has discovered the following challenges within one of the facilities:
* Production quantities are low and only a small number of homes are built efficiently.
* The facility space allows for low handling of materials.
* There is limited space available for employees to operate.
Which hybrid layout should be used to address the company's needs?
Answer: D
Explanation:
The appropriate hybrid layout isgroup technology.
Group technology combines the efficiency of product layouts with the flexibility of process layouts by grouping similar products into familiesand arranging workstations intocells. Each cell is designed to handle a specific family of products from start to finish.
In the case of prefabricated homes:
* Production volumes are low
* Product designs share similarities
* Space is constrained
* Material handling must be minimized
Group technology reduces:
* Movement of materials
* Setup times
* Work-in-process inventory
* Congestion in limited spaces
The other options are not layouts:
* Process performance metrics are measurement tools
* Manufacturing technology refers broadly to automation
* Statistical reduction control is not a recognized layout concept
Operations Management promotes group technology as an effective solution forlow-volume, moderate- variety environments, especially where space efficiency and flow improvement are critical.
NEW QUESTION # 36
Which total quality management (TQM) process was developed to stress management's responsibility for quality?
Answer: B
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 # 37
The annual cost of goods sold for a company is $8,400,000 and the average inventory is $1,200,000.
What is the number of weeks of supply?
Answer: A
Explanation:
Weeks of supplymeasures how long inventory will last based on average usage. It is calculated using the formula:
Weeks of Supply = (Average Inventory / Annual Cost of Goods Sold) × 52
Substituting the given values:
Weeks of Supply = (1,200,000 / 8,400,000) × 52
Weeks of Supply = 0.142857 × 52
Weeks of Supply #7.43 weeks
When rounded to the nearest whole number, the answer is7 weeks.
In Operations and Supply Chain Management, weeks of supply is a key inventory performance metric because it:
* Indicates inventory efficiency
* Helps balance service levels and holding costs
* Supports cash flow management
* Enables comparison across products or firms
Too many weeks of supply signal excess inventory and high holding costs, while too few weeks increase the risk of stockouts and service failures.
Managers use this metric alongside inventory turnover to evaluate how effectively inventory supports demand while minimizing waste.
NEW QUESTION # 38
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