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| Section | Objectives |
|---|---|
| Topic 1: Competency 1: Operations Management Fundamentals | - History and evolution of operations management - Product and service design - Operations strategy and competitive priorities |
| Topic 2: Competency 3: Process Improvement and Problem Solving | - Lean operations and waste elimination - Cause-and-effect diagrams (fishbone diagrams) - Statistical Process Control (SPC) - Plan-Do-Study-Act (PDSA) cycle - Six Sigma methodology |
| Topic 3: Competency 7: Forecasting | - Quantitative forecasting methods (moving averages, exponential smoothing) - Forecast accuracy measures - Qualitative forecasting methods |
| Topic 4: Competency 2: Quality Management | - Malcolm Baldrige National Quality Award criteria - Total Quality Management (TQM) - Cost of quality (prevention, appraisal, internal/external failure) - Quality management philosophies (Deming, Juran, Crosby) |
| Topic 5: Competency 6: Production Planning and Scheduling | - Theory of Constraints (TOC) - Just-in-Time (JIT) and Kanban systems - Master Production Schedule (MPS) - Aggregate planning - Material Requirements Planning (MRP) |
| Topic 6: Competency 5: Capacity Planning and Facility Layout | - Facility layout types (process, product, cellular, fixed-position) - Location analysis and decisions - Capacity planning strategies |
| Topic 7: Competency 4: Supply Chain Management | - Sourcing and procurement - Logistics and distribution - Inventory management - Supply chain design and strategy |
>> Operations-Management Test Answers <<
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NEW QUESTION # 56
Which concept takes a total system approach to creating an efficient operation and combines concepts such as just-in-time (JIT), total quality management (TQM), and continuous improvement?
Answer: B
Explanation:
Lean systemstake atotal system approachto operational efficiency by integrating just-in-time (JIT), total quality management (TQM), and continuous improvement (Kaizen).
Lean is not a single tool but amanagement philosophyfocused on:
* Eliminating waste
* Improving flow
* Engaging employees
* Delivering customer-defined value
JIT ensures materials and work arrive only when needed, TQM ensures quality at every step, and continuous improvement drives ongoing enhancement. Lean systems coordinate these elements into a coherent operating model.
The other options are narrower in scope:
* CRM focuses on customer data and relationships
* ERP integrates information systems
* ISO 9001 provides quality standards but not operational design
Operations Management views lean systems as the umbrella framework that aligns people, processes, and technology to achieve efficiency and competitiveness.
NEW QUESTION # 57
Which definition used for quality evaluates how well a product performs its intended function?
Answer: A
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 # 58
Which factor determines how long it takes a qualified operator to perform a duty of the job requirements under the assumption that the operator is working at a sustainable pace with the proper tools for the process?
Answer: D
Explanation:
Standard timeis the measure that determines how long it should take a qualified operator to perform a jobat a sustainable pace using proper tools and methods.
In Operations Management and work measurement, standard time represents theallowed timeto complete a task, including:
* Normal time (observed time adjusted for performance rating)
* Allowances for fatigue
* Personal needs
* Unavoidable delays
Standard time is essential for:
* Scheduling work
* Determining labor requirements
* Establishing production standards
* Capacity planning
* Incentive wage systems
The other options represent intermediate concepts:
* Observed timeis the raw measured time
* Normal timeadjusts observed time for performance rating
* Performance timeis not a standard OM term
By incorporating allowances, standard time ensures that expectations arerealistic and sustainable, protecting both productivity and employee well-being. It is a foundational element of work system design and labor planning.
NEW QUESTION # 59
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: B
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 # 60
Which two areas should managers consider in order to adapt to the business dynamics affecting their company?
Choose 2 answers
Answer: A,B
Explanation:
Managers must considercontrol over internal operationsandinfluence and leverage over suppliersto adapt effectively to changing business dynamics.
Internal operational control determines how quickly a firm can:
* Adjust capacity
* Improve quality
* Reduce cost
* Respond to demand changes
Supplier influence is equally critical in modern supply chains. Strong supplier relationships improve:
* Reliability
* Cost stability
* Innovation
* Responsiveness
Operations Management emphasizes that competitiveness increasingly depends onsupply chain coordination
, not isolated firm performance.
The other options are less relevant:
* Firms rarely influence future legislation
* Advertising costs relate to marketing strategy, not operational adaptability Thus, effective supply chain management requires both internal excellence and external collaboration.
NEW QUESTION # 61
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