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| Section | Objectives |
|---|---|
| Topic 1: Competency 4: Supply Chain Management | - Supply chain design and strategy - Logistics and distribution - Inventory management - Sourcing and procurement |
| Topic 2: Competency 1: Operations Management Fundamentals | - Operations strategy and competitive priorities - History and evolution of operations management - Product and service design |
| Topic 3: Competency 2: Quality Management | - Quality management philosophies (Deming, Juran, Crosby) - Malcolm Baldrige National Quality Award criteria - Total Quality Management (TQM) - Cost of quality (prevention, appraisal, internal/external failure) |
| Topic 4: Competency 6: Production Planning and Scheduling | - Aggregate planning - Material Requirements Planning (MRP) - Theory of Constraints (TOC) - Just-in-Time (JIT) and Kanban systems - Master Production Schedule (MPS) |
| Topic 5: Competency 7: Forecasting | - Quantitative forecasting methods (moving averages, exponential smoothing) - Qualitative forecasting methods - Forecast accuracy measures |
| Topic 6: Competency 3: Process Improvement and Problem Solving | - Six Sigma methodology - Lean operations and waste elimination - Plan-Do-Study-Act (PDSA) cycle - Cause-and-effect diagrams (fishbone diagrams) - Statistical Process Control (SPC) |
| Topic 7: Competency 5: Capacity Planning and Facility Layout | - Facility layout types (process, product, cellular, fixed-position) - Location analysis and decisions - Capacity planning strategies |
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NEW QUESTION # 43
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: C
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 # 44
Which two factors affect a service location decision? Choose 2 answers
Answer: A,C
Explanation:
For service organizations,proximity to customersandquality-of-life issuesare two dominant factors in location decisions.
Unlike manufacturing, service operations requiredirect customer contact. Being close to customers reduces travel time, improves convenience, enhances responsiveness, and increases perceived service quality.
Examples include hospitals, banks, restaurants, and consulting offices, where location accessibility directly influences demand.
Quality-of-life issues-such as education, healthcare, housing, safety, climate, and cultural amenities-affect the ability toattract and retain skilled service employees. Human capital is a critical input in service operations, and workforce availability often outweighs cost considerations.
The other options are less relevant:
* Manufacturing proximity matters mainly for production facilities
* Warehouse storage is a logistics concern, not a service driver
Operations Management emphasizes that service location decisions balancecustomer accessandemployee satisfaction, since both directly influence service quality, productivity, and long-term sustainability.
NEW QUESTION # 45
What are two reasons a company might be hesitant to provide overtime as a capacity-based option?
Choose 2 answers
Answer: A,B
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 # 46
What is the common theme in total quality management (TQM) across all functions in an organization?
Answer: C
Explanation:
The unifying and central theme of Total Quality Management (TQM) across all organizational functions isto satisfy customer needs.
TQM is built on the premise thatquality is defined by the customer, not by internal standards alone. Every function-marketing, operations, finance, human resources, procurement, and logistics-contributes directly or indirectly to customer satisfaction.
In Operations Management, this philosophy translates into:
* Designing processes that consistently meet customer requirements
* Reducing variability and defects that impact customer experience
* Aligning internal performance metrics with external satisfaction measures Customer satisfaction goes beyond product features. It includes:
* Reliability
* Timeliness
* Service responsiveness
* Ease of use
* Perceived value
Options such as management software, individual rewards, or profit from changes aresecondary outcomes, not the core objective. Profitability is achievedbecausecustomer needs are met consistently, not as a substitute goal.
TQM frameworks such as Deming's philosophy, ISO standards, and Six Sigma all reinforce customer focus as the guiding principle. Continuous improvement efforts are justified and prioritized based on their impact on customer satisfaction.
Therefore, satisfying customer needs serves as thestrategic anchorthat aligns all functions, drives collaboration, and sustains long-term organizational success.
NEW QUESTION # 47
Which total quality management (TQM) process consists of 13 published standards and guidelines?
Answer: C
Explanation:
ISO 9000is the family of international quality management standards consisting of13 published standards and guidelinesthat define the fundamentals and vocabulary of quality management systems.
The ISO 9000 family provides asystematic frameworkfor ensuring consistent processes, customer satisfaction, and continuous improvement across organizations. It does not certify products; rather, it certifies that an organization'sprocesses are controlled, documented, and continuously improved.
Key distinctions:
* ISO 9000: Overview, concepts, and terminology
* ISO 9001: Certification standard specifying requirements
* ISO 9002: (Now obsolete) Previously focused on production and installation
* ISO 1400: Environmental management standards, not quality
Operations Management values ISO 9000 because it promotes:
* Process standardization
* Documentation and traceability
* Preventive rather than corrective quality control
* Consistency across suppliers and partners
ISO 9000 supports TQM by embedding quality intoorganizational systems, not relying on inspection alone.
Certification signals reliability and discipline to customers and global partners, especially in supply chains.
By establishing a common quality language and structure, ISO 9000 enables organizations to align operations, reduce variability, and sustain long-term operational excellence.
NEW QUESTION # 48
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