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| Section | Objectives |
|---|---|
| Competency 6: Production Planning and Scheduling | - Material Requirements Planning (MRP) - Theory of Constraints (TOC) - Aggregate planning - Just-in-Time (JIT) and Kanban systems - Master Production Schedule (MPS) |
| Competency 1: Operations Management Fundamentals | - Operations strategy and competitive priorities - Product and service design - History and evolution of operations management |
| Competency 7: Forecasting | - Forecast accuracy measures - Qualitative forecasting methods - Quantitative forecasting methods (moving averages, exponential smoothing) |
| Competency 4: Supply Chain Management | - Sourcing and procurement - Inventory management - Supply chain design and strategy - Logistics and distribution |
| Competency 3: Process Improvement and Problem Solving | - Six Sigma methodology - Cause-and-effect diagrams (fishbone diagrams) - Statistical Process Control (SPC) - Lean operations and waste elimination - Plan-Do-Study-Act (PDSA) cycle |
| Competency 5: Capacity Planning and Facility Layout | - Facility layout types (process, product, cellular, fixed-position) - Capacity planning strategies - Location analysis and decisions |
| Competency 2: Quality Management | - Quality management philosophies (Deming, Juran, Crosby) - Total Quality Management (TQM) - Malcolm Baldrige National Quality Award criteria - Cost of quality (prevention, appraisal, internal/external failure) |
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NEW QUESTION # 18
Why is the marketing plan essential to the creation of the aggregate plan?
Answer: A
Explanation:
The marketing plan is essential to the aggregate plan because itprovides insight into operations goals and activities for the year.
Aggregate planning aligns production, workforce, and inventory decisions withexpected demand, which is forecasted by marketing. Marketing defines:
* Sales volume expectations
* Product mix
* Promotional timing
* Market priorities
Operations uses this information to:
* Set capacity levels
* Plan workforce size
* Schedule production rates
* Manage inventory
While demand data and cash flow matter, the key contribution of marketing is translating market strategy into operational requirements.
Operations Management emphasizes cross-functional integration; without marketing input, aggregate plans risk misalignment with actual market needs.
NEW QUESTION # 19
Which role do third-party logistics providers play in the supply chain?
Answer: D
Explanation:
Third-party logistics (3PL) providers act asexternal distributorsin the supply chain.
They perform logistics functions such as:
* Transportation
* Warehousing
* Distribution
* Order fulfillment
These providers operate outside the firm but integrate closely with its operations. Organizations use 3PLs to:
* Reduce capital investment
* Increase flexibility
* Access logistics expertise
* Improve service levels
Operations Management recognizes outsourcing logistics as a strategic decision that allows firms to focus on core competencies while maintaining efficient distribution networks.
NEW QUESTION # 20
What are two product system differences between the push and pull processes?
Choose 2 answers
Answer: A,B
Explanation:
The two correct differences between push and pull systems are:
* Push moves the product forward in anticipation of demand
* Pull eliminates excessive inventory
Push systems rely on forecasts and schedule production in advance, often leading to overproduction and excess inventory if forecasts are inaccurate.
Pull systems, by contrast, produce only what is needed when it is needed, significantly reducing inventory levels and associated costs.
The incorrect options describe misconceptions:
* Overproduction increases cost, not lowers it
* Pull systems do not create additional products
* Employee relations are not defining characteristics
* Quality control exists in both systems
Operations Management favors pull systems in environments where demand variability and cost control are critical, reinforcing lean principles.
NEW QUESTION # 21
Why is it beneficial for an organization to designate employees to communicate alternative ways to complete a job in a methods analysis?
Answer: D
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Employees are designated in methods analysis becausethey may have valuable suggestions for improving the operation.
Frontline employees:
* Perform tasks daily
* Understand practical constraints
* Observe inefficiencies and waste
* Identify improvement opportunities
Operations Management recognizes that sustainable improvement requiresemployee involvement. Workers often know better ways to reduce motion, time, or effort that are invisible to managers.
The other options are incorrect:
* Tradition alone does not justify current methods
* Expertise alone does not guarantee improvement ideas
* Resistance to training is a risk, not a benefit
Methods analysis seeks to simplify, standardize, and improve work. Employee input enhances acceptance of change and improves implementation success.
NEW QUESTION # 22
Which capacity planning measurement tells how much capacity a company is using?
Answer: A
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Capacity utilizationmeasures how much of a company's available capacity is actually being used.
It is calculated as:
Capacity Utilization = Actual Output / Design or Effective Capacity
In Operations Management, capacity utilization provides insight into:
* Operational efficiency
* Resource usage
* Potential bottlenecks or underutilization
High utilization may indicate efficiency but can also lead to congestion, fatigue, and quality problems. Low utilization suggests excess capacity and higher unit costs.
The other terms describe different concepts:
* Design capacityis the maximum theoretical output
* Effective capacityaccounts for normal disruptions
* Capacity focusrefers to strategic specialization
Capacity utilization helps managers balance efficiency with flexibility, making it a core performance metric in both manufacturing and service operations.
NEW QUESTION # 23
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