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| Section | Objectives |
|---|---|
| Topic 1: Competency 2: Quality Management | - Quality management philosophies (Deming, Juran, Crosby) - Total Quality Management (TQM) - Cost of quality (prevention, appraisal, internal/external failure) - Malcolm Baldrige National Quality Award criteria |
| Topic 2: Competency 7: Forecasting | - Forecast accuracy measures - Qualitative forecasting methods - Quantitative forecasting methods (moving averages, exponential smoothing) |
| Topic 3: Competency 5: Capacity Planning and Facility Layout | - Facility layout types (process, product, cellular, fixed-position) - Location analysis and decisions - Capacity planning strategies |
| Topic 4: Competency 1: Operations Management Fundamentals | - Product and service design - Operations strategy and competitive priorities - History and evolution of operations management |
| Topic 5: Competency 6: Production Planning and Scheduling | - Theory of Constraints (TOC) - Just-in-Time (JIT) and Kanban systems - Aggregate planning - Material Requirements Planning (MRP) - Master Production Schedule (MPS) |
| Topic 6: Competency 3: Process Improvement and Problem Solving | - Plan-Do-Study-Act (PDSA) cycle - Lean operations and waste elimination - Six Sigma methodology - Cause-and-effect diagrams (fishbone diagrams) - Statistical Process Control (SPC) |
| Topic 7: Competency 4: Supply Chain Management | - Supply chain design and strategy - Logistics and distribution - Inventory management - Sourcing and procurement |
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NEW QUESTION # 15
A manufacturing firm uses warehouses and shippers in their supply chain.
At which stage of the firm's inventory management system would the statement
"percentage of line items shipped on schedule" be used?
Answer: C
Explanation:
The performance measure"percentage of line items shipped on schedule"applies tofinished goods inventory.
Finished goods inventory represents completed products ready for shipment to customers. On-time shipment is a critical service-level indicator at this stage because it directly affects:
* Customer satisfaction
* Order fulfillment performance
* Distribution efficiency
Work-in-progress and raw materials inventories are internal to production and do not involve customer shipment commitments. "Sold goods" is not an inventory classification used in Operations Management.
Supply chain metrics for finished goods typically include:
* On-time delivery rate
* Order accuracy
* Fill rate
* Shipment reliability
By tracking shipment performance at the finished goods stage, firms ensure that downstream distribution aligns with customer expectations and supply chain objectives.
NEW QUESTION # 16
What is a key factor of a location analysis for a service company?
Answer: A
Explanation:
Comprehensive and Detailed Explanation (#250 words):
The most critical factor in a service company's location analysis isproximity to customers.
Service operations differ fundamentally from manufacturing because theservice is often produced and consumed simultaneously. As a result, customer access, convenience, and responsiveness are central determinants of demand and satisfaction.
From an Operations Management perspective, proximity to customers:
* Reduces waiting and travel time
* Increases service usage frequency
* Improves customer perception of reliability and availability
* Enables faster response to service failures
Examples include healthcare facilities, retail stores, hospitality, and professional services. In all cases, distance acts as ademand deterrent.
The other options are secondary:
* Community relations are important but not decisive
* Best operating level and effective capacity are internal capacity measures, not location drivers Thus, service location strategy prioritizesmarket access over production efficiency, reinforcing customer- centric operations.
NEW QUESTION # 17
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: D
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 # 18
Which factor determines how long it takes a qualified operator to perform a duty of the job requirements under the assumption that the operator is working at a sustainable pace with the proper tools for the process?
Answer: D
Explanation:
Standard timeis the measure that determines how long it should take a qualified operator to perform a jobat a sustainable pace using proper tools and methods.
In Operations Management and work measurement, standard time represents theallowed timeto complete a task, including:
* Normal time (observed time adjusted for performance rating)
* Allowances for fatigue
* Personal needs
* Unavoidable delays
Standard time is essential for:
* Scheduling work
* Determining labor requirements
* Establishing production standards
* Capacity planning
* Incentive wage systems
The other options represent intermediate concepts:
* Observed timeis the raw measured time
* Normal timeadjusts observed time for performance rating
* Performance timeis not a standard OM term
By incorporating allowances, standard time ensures that expectations arerealistic and sustainable, protecting both productivity and employee well-being. It is a foundational element of work system design and labor planning.
NEW QUESTION # 19
Which two types of operations include repetitive processes?
Choose 2 answers
Answer: C,D
NEW QUESTION # 20
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