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| Section | Objectives |
|---|---|
| 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) |
| Competency 1: Operations Management Fundamentals | - History and evolution of operations management - Product and service design - Operations strategy and competitive priorities |
| Competency 4: Supply Chain Management | - Supply chain design and strategy - Sourcing and procurement - Logistics and distribution - Inventory management |
| Competency 7: Forecasting | - Quantitative forecasting methods (moving averages, exponential smoothing) - Forecast accuracy measures - Qualitative forecasting methods |
| Competency 5: Capacity Planning and Facility Layout | - Capacity planning strategies - Location analysis and decisions - Facility layout types (process, product, cellular, fixed-position) |
| 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) |
| Competency 3: Process Improvement and Problem Solving | - Lean operations and waste elimination - Plan-Do-Study-Act (PDSA) cycle - Statistical Process Control (SPC) - Cause-and-effect diagrams (fishbone diagrams) - Six Sigma methodology |
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NEW QUESTION # 24
Which continuous improvement method does Cpk measure?
Answer: B
Explanation:
The process capability indexCpkmeasureshow close a process is to its target and how consistent it is around the average performance.
Cpk is a key metric inSix Sigma and continuous improvement methodologies. It evaluates both:
* Process centering(distance from specification limits)
* Process variation(spread of data)
Unlike Cp, which assumes the process is centered, Cpk accounts for actual process performance relative to upper and lower specification limits. This makes it a more realistic indicator of quality capability.
In Operations Management, Cpk helps organizations:
* Assess whether a process can meet customer specifications
* Identify improvement priorities
* Reduce defects before they occur
Higher Cpk values indicate better performance:
* Cpk # 1.33 is generally acceptable
* Cpk # 2.0 aligns with Six Sigma performance
The other options confuse Cpk with defect rates or cycle time measures. While defects per million opportunities (DPMO) are related, Cpk specifically evaluatesprocess capability, not output counts.
By focusing on consistency and target alignment, Cpk supports preventive quality management and data- driven continuous improvement.
NEW QUESTION # 25
What is a major factor in the decision to locate a business near its primary market territory?
Answer: B
Explanation:
Comprehensive and Detailed Explanation (#250 words):
The dominant factor in locating a business near its primary market territory isproximity to customers.
From an Operations Management perspective, closeness to customers:
* Reduces transportation and delivery time
* Improves service responsiveness
* Enhances customer satisfaction
* Supports demand growth
This is especially critical for service organizations and distribution-intensive businesses, where customer access and speed are competitive advantages.
While proximity to labor is important, it does not define market territory. Community centers and parks are not operational drivers.
Locating near customers aligns capacity with demand, minimizes logistics complexity, and strengthens market presence.
NEW QUESTION # 26
Why is capacity requirements planning (CRP) important?
Answer: C
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 # 27
A company manufactures and distributes its own products.
When should the company consider outsourcing its distribution?
Answer: B
Explanation:
A company should consider outsourcing distributionwhen it determines that distribution is no longer a core function.
Operations Management defines core functions as activities that:
* Create competitive advantage
* Differentiate the firm
* Require proprietary knowledge or capabilities
If distribution does not meet these criteria, outsourcing can:
* Lower costs
* Improve service reliability
* Increase scalability
* Allow management to focus on strategic priorities
The other options do not justify outsourcing:
* Forecasting difficulty is a management issue
* Lowest-cost operators should retain distribution
* Regulations do not eliminate strategic relevance
Outsourcing decisions must align with long-term operations strategy, not short-term cost fluctuations.
NEW QUESTION # 28
Which strategy is used by some emergency rooms to overcome customer frustrations about long waiting times?
Answer: C
Explanation:
Emergency rooms often usescreening and fast-tracking patients with minor ailmentsto reduce perceived and actual waiting times. This strategy is a well-establishedservice operations capacity-management technique.
From an Operations Management perspective, emergency departments facehigh variability in demand and processing times, which leads to congestion and long queues. Treating all patients strictly in arrival order (first-come, first-served) is operationally inefficient because patients require very different levels of care.
Fast-tracking works by:
* Separating low-complexity cases from critical cases
* Allocating dedicated resources to minor treatments
* Reducing bottlenecks at key treatment stages
This approach improvesflow efficiency, patient satisfaction, and throughput without increasing total capacity.
It aligns with queue management principles and the concept ofsegmented service design, where different customer needs are handled through different process paths.
The other options are inferior operationally:
* Scheduling follow-ups for severe cases is clinically unsafe
* Sending patients elsewhere shifts the problem, not solves it
* Strict arrival order ignores service-time variability
Fast-tracking addresses bothoperational efficiencyandperceived service quality, which is particularly critical in high-contact service systems such as healthcare.
NEW QUESTION # 29
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