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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Forecasting and Project Management | 20% | - Project Management
|
| Topic 2: Capacity Planning and Facility Layout | 15% | - Capacity Concepts
|
| Topic 3: Process Design and Analysis | 20% | - Process Performance
|
| Topic 4: Quality Management Methods | 25% | - Total Quality Management (TQM)
|
| Topic 5: Supply Chain and Inventory Management | 20% | - Supply Chain Design
|
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NEW QUESTION # 64
Which type of aggregate plan is preferable when a company produces custom or special purpose equipment, one-of-a-kind items, or highly perishable products?
Answer: B
Explanation:
Comprehensive and Detailed Explanation (#270 words):
Achase aggregate planis preferable for environments withcustom, one-of-a-kind, special-purpose, or highly perishable outputsbecause production is designed to"chase" (match) demandrather than build inventory.
In a level plan, the firm maintains a constant production rate and uses inventory/backorders to absorb demand fluctuation. That works best when products can be stored economically and demand variability can be buffered. For one-of-a-kind and highly perishable items, inventory is either impossible (custom items) or risky and costly (perishability, obsolescence). Therefore, the operationally sound strategy is to adjust capacity to align output with demand.
This links directly to aggregate planning's purpose: validating whether the system has sufficient capacity to meet expected requests and defining the most appropriate combination of resources. The document also highlights that one aggregate planning mechanism is to"produce reactively (react to demand) - requires flexibility."That is the core logic of a chase strategy.
A chase plan typically uses capacity levers like hiring/layoffs, subcontracting, flexible staffing, and overtime-chosen based on the duration and magnitude of demand changes. It prioritizes responsiveness and minimal inventory, which is essential when holding finished goods is undesirable or infeasible.
NEW QUESTION # 65
Which quality control tool should be used to monitor the current status or end result of a process?
Answer: B
Explanation:
Acontrol chartis the primary quality control tool used tomonitor the current status and end results of a process over time.
Control charts, a core component ofStatistical Process Control (SPC), distinguish between:
* Common-cause variation(natural process variation)
* Assignable-cause variation(abnormal, correctable issues)
By plotting data points against upper and lower control limits, control charts help operations managers determine whether a process isstable or out of control.
Why control charts are ideal:
* They provide real-time monitoring
* They detect trends before defects occur
* They support preventive quality management
* They reduce reliance on inspection
Other tools serve different purposes:
* Checklistscollect data
* Flowchartsmap processes
* Scatter diagramsanalyze correlations
Operations Management emphasizes control charts because they supportprocess-based quality, aligning with TQM and Six Sigma philosophies. Instead of fixing defects after they occur, organizations canintervene early
, reducing cost and improving consistency.
Control charts reinforce continuous improvement by enabling data-driven decisions, reducing variability, and stabilizing production processes-making them indispensable in modern quality management systems.
NEW QUESTION # 66
What are two ways management can assist employees' focus in a just-in-time (JIT) processing environment?
Choose 2 answers
Answer: B,C
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 # 67
What is a bottleneck in a flowchart?
Answer: A
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Abottleneckis thelongest task in the process, limiting the overall system throughput.
In Operations Management, the bottleneck determines themaximum capacity of the entire system. No matter how efficient other stages are, output cannot exceed the bottleneck's capacity.
Bottlenecks cause:
* Queue buildup
* Increased waiting time
* Underutilization of downstream resources
Identifying bottlenecks through flowcharts and process mapping is essential for process improvement. Once identified, managers can:
* Add capacity
* Reallocate resources
* Improve task methods
* Reduce variability
The other options do not define bottlenecks:
* Independent stages do not restrict flow
* Production leveling smooths output
* Storage areas indicate inventory, not constraints
TheTheory of Constraintsreinforces that improving non-bottleneck stages has little impact unless the bottleneck is addressed.
NEW QUESTION # 68
Which term means to schedule a job that starts immediately, regardless of the due date?
Answer: D
Explanation:
Forward schedulingmeans scheduling workas soon as resources are available, regardless of the job's due date.
In Operations Management:
* Forward scheduling starts at the current time
* Jobs are scheduled sequentially into the future
* Completion dates are determined after scheduling
This method is commonly used when:
* Capacity utilization is the priority
* Due dates are flexible
* Make-to-stock environments exist
In contrast:
* Backward schedulingstarts from the due date and works backward
* Finite loadingrespects capacity limits
* Infinite loadingignores capacity constraints
Forward scheduling ensures continuous resource use but may result in early job completion and higher inventory levels.
NEW QUESTION # 69
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