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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Process Design and Analysis | 20% | - Process Performance
|
| Topic 2: Forecasting and Project Management | 20% | - Demand Forecasting
|
| Topic 3: Quality Management Methods | 25% | - Total Quality Management (TQM)
|
| Topic 4: Supply Chain and Inventory Management | 20% | - Supply Chain Design
|
| Topic 5: Capacity Planning and Facility Layout | 15% | - Capacity Concepts
|
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NEW QUESTION # 61
Why is capacity requirements planning (CRP) important?
Answer: B
Explanation:
Capacity Requirements Planning (CRP) is important because itcompares available production capacity to planned workloads, ensuring feasibility.
Once demand has been translated into production and material plans, CRP validates whether:
* Machines are available
* Labor hours are sufficient
* Work centers are not overloaded
Without CRP, organizations risk releasing production plans that cannot be executed, resulting in:
* Bottlenecks
* Overtime
* Missed delivery dates
* Poor resource utilization
The incorrect options describe other functions:
* Employee efficiency is evaluated through performance metrics
* Lead time transparency is a scheduling outcome, not CRP's core purpose
* Material coordination is handled by MRP
CRP ensures alignment betweenwhat is plannedandwhat is possible, making it a critical link between planning and execution in Operations Management.
NEW QUESTION # 62
What are two ways management can assist employees' focus in a just-in-time (JIT) processing environment?
Choose 2 answers
Answer: A,D
Explanation:
Management can assist employee focus in a JIT environment byproviding multifunctional trainingand developing incentive systems that reward performance.
Multifunctional trainingenables employees to:
* Perform multiple tasks
* Rotate between roles
* Support flexible staffing
* Respond quickly to disruptions
This flexibility is essential in JIT systems, where minimal buffers exist and disruptions must be resolved immediately.
Incentive systemsreinforce desired behaviors such as problem-solving, quality improvement, teamwork, and waste reduction. Rewards aligned with JIT objectives encourage employees to maintain discipline and continuous improvement.
The incorrect options conflict with JIT philosophy:
* Separating cultures undermines teamwork
* Forcing quality charting during free time creates resistance
Operations Management emphasizes that JIT success depends onpeople-centered management, not just technical tools.
NEW QUESTION # 63
What are two product system differences between the push and pull processes?
Choose 2 answers
Answer: C,D
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 # 64
Which two areas should managers consider in order to adapt to the business dynamics affecting their company?
Choose 2 answers
Answer: A,C
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 # 65
A company is experiencing an unusual amount of deliveries that are either late or an incorrect quantity.
Which type of system is used to identify and manage this type of problem?
Answer: D
Explanation:
Comprehensive and Detailed Explanation (#280 words):
The correct system to identify and manage frequent issues such aslate deliveries or incorrect quantitiesis MRP (Material Requirements Planning)(AnswerD).
MRP is designed to translate demand into detailed plans forwhat materials are needed, in what quantities, and when-and then to time-phased plan purchase and production orders accordingly. The document states that MRP combines detailed demand forecasts and actual requests, translates higher-level forecasts into more detailed requirements, and tracks customer requests. It also emphasizes that the MPS (which sets specific dates) is used to plan material requirements.
When deliveries are late or wrong quantities are shipped, a frequent root cause is that materials were not available when needed, orders were not released correctly, or priorities were mismanaged. MRP directly addresses these by:
* Exploding bills of materials into components
* Time-phasing planned orders
* Coordinating purchasing and production schedules
* Updating plans when demand or system status changes
ERP is broader (enterprise-wide integration), CRP focuses on comparing capacity vs workloads, and FMS is a production technology-not a planning system for material timing and quantities. Because the symptoms described are classic planning/coordination failures in materials and order timing,MRP is the best fit.
NEW QUESTION # 66
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