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| Section | Objectives |
|---|---|
| Topic 1: Competency 4: Supply Chain Management | - Inventory management - Supply chain design and strategy - Logistics and distribution - Sourcing and procurement |
| Topic 2: Competency 2: Quality Management | - Total Quality Management (TQM) - Quality management philosophies (Deming, Juran, Crosby) - Malcolm Baldrige National Quality Award criteria - Cost of quality (prevention, appraisal, internal/external failure) |
| Topic 3: Competency 7: Forecasting | - Forecast accuracy measures - Quantitative forecasting methods (moving averages, exponential smoothing) - Qualitative forecasting methods |
| Topic 4: Competency 3: Process Improvement and Problem Solving | - Plan-Do-Study-Act (PDSA) cycle - Lean operations and waste elimination - Six Sigma methodology - Statistical Process Control (SPC) - Cause-and-effect diagrams (fishbone diagrams) |
| Topic 5: Competency 1: Operations Management Fundamentals | - Operations strategy and competitive priorities - History and evolution of operations management - Product and service design |
| Topic 6: Competency 6: Production Planning and Scheduling | - Theory of Constraints (TOC) - Material Requirements Planning (MRP) - Just-in-Time (JIT) and Kanban systems - Aggregate planning - Master Production Schedule (MPS) |
| Topic 7: Competency 5: Capacity Planning and Facility Layout | - Capacity planning strategies - Location analysis and decisions - Facility layout types (process, product, cellular, fixed-position) |
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NEW QUESTION # 18
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: C
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 # 19
Which project life cycle phase focuses on determining whether the proposed project is technically, financially, and operationally viable?
Answer: C
Explanation:
Thefeasibility analysis phaseevaluates whether a proposed project istechnically, financially, and operationally viable.
During feasibility analysis, organizations assess:
* Cost-benefit justification
* Resource availability
* Technical constraints
* Operational impact
* Risk and uncertainty
This phase prevents organizations from committing to projects that:
* Are too costly
* Lack capability support
* Conflict with operational capacity
* Fail to deliver strategic value
Planning and execution only proceed if feasibility criteria are satisfied.
In Operations Management, feasibility analysis is especially critical for projects involving:
* Capacity expansion
* New facilities
* System implementations
* Process redesign
It serves as a decision gate that protects organizational resources and ensures disciplined project selection.
NEW QUESTION # 20
Which formula would indicate that a fast-food restaurant was performing at, above, or below its benchmark?
Answer: A
Explanation:
Comprehensive and Detailed Explanation (#250 words):
The formulaActual output / standard outputindicates whether a fast-food restaurant is performingat, above, or below its benchmark.
This ratio compares real performance against a predefined standard. A value:
* Equal to 1 means performance meets the benchmark
* Greater than 1 means performance exceeds expectations
* Less than 1 indicates underperformance
Benchmarks are critical in Operations Management for:
* Performance evaluation
* Labor productivity measurement
* Process control
The other formulas measure utilization, velocity, or productivity, but do not directly reference a benchmark.
By comparing actual output to standard output, managers can quickly assess operational effectiveness and identify areas requiring corrective action.
NEW QUESTION # 21
Why is kanban significant to the "pull" system?
Answer: A
Explanation:
Kanbanis significant to the pull system because itspecifies the exact quantity of a product that needs to be produced.
In a pull system, production is triggered byactual demand, not forecasts. Kanban cards or signals authorize the movement or production of a specific quantity only when downstream processes require it.
Kanban supports:
* Inventory reduction
* Flow synchronization
* Waste elimination
* Visual control
Each kanban represents permission to produce or move a defined quantity, preventing overproduction-one of the most costly forms of waste.
The other options are incorrect:
* Work items do not need to be identical
* Kanban applies to core production, not just support
* It does not rank organizations
Kanban is a cornerstone of JIT and lean systems because it operationalizes the pull principle in a simple, visual, and disciplined way.
NEW QUESTION # 22
A company decides and makes plans to enter into a new market.
Which project life cycle phase does this strategy directly relate to?
Answer: C
Explanation:
Entering a new market directly relates to theconception phaseof the project life cycle.
At this stage, management identifies:
* Strategic opportunities
* Market gaps
* Growth options
* Alignment with organizational goals
Deciding to enter a new market represents theinitial recognition of opportunity, which triggers project consideration.
Feasibility analysis occurs afterward to evaluate financial, technical, and operational viability. Planning and execution only begin once the project is approved.
Operations Management relies on clear conception decisions to ensure resources are committed only to strategically aligned initiatives.
NEW QUESTION # 23
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