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| Section | Objectives |
|---|---|
| Topic 1: Competency 3: Process Improvement and Problem Solving | - Cause-and-effect diagrams (fishbone diagrams) - Six Sigma methodology - Lean operations and waste elimination - Plan-Do-Study-Act (PDSA) cycle - Statistical Process Control (SPC) |
| 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 4: Supply Chain Management | - Supply chain design and strategy - Sourcing and procurement - Inventory management - Logistics and distribution |
| Topic 4: Competency 5: Capacity Planning and Facility Layout | - Capacity planning strategies - Location analysis and decisions - Facility layout types (process, product, cellular, fixed-position) |
| Topic 5: Competency 6: Production Planning and Scheduling | - Just-in-Time (JIT) and Kanban systems - Theory of Constraints (TOC) - Aggregate planning - Material Requirements Planning (MRP) - Master Production Schedule (MPS) |
| Topic 6: Competency 2: Quality Management | - Cost of quality (prevention, appraisal, internal/external failure) - Total Quality Management (TQM) - Malcolm Baldrige National Quality Award criteria - Quality management philosophies (Deming, Juran, Crosby) |
| Topic 7: Competency 7: Forecasting | - Quantitative forecasting methods (moving averages, exponential smoothing) - Forecast accuracy measures - Qualitative forecasting methods |
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NEW QUESTION # 12
Which two factors affect a service location decision? Choose 2 answers
Answer: A,B
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 # 13
How does a just-in-time (JIT) system influence all functional areas within a company?
Choose 2 answers
Answer: D,E
Explanation:
A just-in-time (JIT) system influences all functional areas byreducing wasteanddeveloping new ways to generate revenue.
First,waste reductionis the most visible and immediate effect of JIT across the organization. JIT eliminates excess inventory, waiting time, overproduction, unnecessary movement, and defects. These improvements require coordination across operations, purchasing, logistics, marketing, and finance, ensuring that all functions align with lean principles.
Second, JIT enablesnew revenue-generation opportunitiesby improving responsiveness, quality, and delivery speed. When an organization becomes more flexible and reliable, it can:
* Offer shorter lead times
* Improve customer satisfaction
* Support customization
* Compete in higher-value market segments
The remaining options are either indirect outcomes or incorrect:
* Enhancing worker ability is a supporting mechanism, not the primary systemic influence
* Demonstrating intrinsic values is cultural, not an operational outcome
* Convenience-based participation contradicts JIT discipline
Operations Management highlights that JIT is anenterprise-wide system, not a production-only method. Its benefits materialize only when all functional areas operate in synchronization.
NEW QUESTION # 14
What is the common theme in total quality management (TQM) across all functions in an organization?
Answer: B
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 # 15
Why is capacity requirements planning (CRP) important?
Answer: A
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 # 16
A company suddenly finds demand has increased to 140% of its previous capacity. It has been able to hire only a fraction of the employees previously laid off, and a warehouse fire destroyed 80% of its inventory.
Which two options does the company have to rapidly meet the new demand?
Choose 2 answers
Answer: A,B
Explanation:
When demand rises suddenly to140% of existing capacity, the firm must rely onshort-term, flexible capacity optionsto respond quickly.
The two appropriate options are:
* Hiring temporary workers
* Subcontracting a portion of production capacity
Temporary workers can be deployed rapidly with minimal onboarding time, allowing the firm to increase output without long-term labor commitments. This option is especially effective when the demand surge may be temporary or uncertain.
Subcontracting provides immediate access toexternal capacitywithout requiring capital investment. It allows the firm to meet demand while avoiding the risks associated with permanent expansion.
The other options are not viable in the short term:
* Building new facilities is capital-intensive and slow
* Hiring and training full-time employees requires time and long-term commitment Operations Management distinguishescapacity-based optionsinto short-term (temporary labor, overtime, subcontracting) and long-term (facilities, permanent workforce). In crisis situations, speed and flexibility dominate decision-making.
NEW QUESTION # 17
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