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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Forecasting and Project Management | 20% | - Demand Forecasting
|
| Topic 2: Capacity Planning and Facility Layout | 15% | - Layout Design
|
| Topic 3: Quality Management Methods | 25% | - Total Quality Management (TQM)
|
| Topic 4: Supply Chain and Inventory Management | 20% | - Inventory Control
|
| Topic 5: Process Design and Analysis | 20% | - Process Types
|
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NEW QUESTION # 36
Which project life cycle phase focuses on determining whether the proposed project is technically, financially, and operationally viable?
Answer: B
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 # 37
In which organizational layout would one expect to see items arranged by type?
Answer: D
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Aprocess layoutarranges itemsby type of activity or function, making it the correct answer.
In a process layout, similar resources-such as machines, skills, or functions-are grouped together. For example, all drilling machines are located in one area, all painting stations in another, and all inspection activities in another. Items move through the facility based on the specific operations they require.
This layout is commonly used when:
* Product variety is high
* Production volume is low to moderate
* Customization is required
Examples include hospitals (radiology, surgery, labs), machine shops, and repair facilities.
The other layouts differ fundamentally:
* Product layoutarranges items by sequence of operations
* Fixed layoutkeeps the product stationary (e.g., construction)
* Hybrid layoutcombines elements of process and product layouts
Operations Management favors process layouts for flexibility, but they often suffer from longer lead times, higher material handling costs, and complex scheduling. Despite these drawbacks, they are essential where customization and functional specialization dominate.
NEW QUESTION # 38
What are two strategic objectives for every member of the supply chain?
Choose 2 answers
Answer: A,C
Explanation:
Two universal strategic objectives for all supply chain members areincreasing cost effectivenessand becoming more efficient.
Every organization in the supply chain-suppliers, manufacturers, distributors, and retailers-must manage costs while improving operational efficiency to remain competitive.
Cost effectiveness ensures:
* Sustainable margins
* Competitive pricing
* Resource optimization
Efficiency focuses on:
* Process improvement
* Waste reduction
* Throughput enhancement
* Reliable delivery
While reducing lead times and increasing demand are desirable outcomes, they are not universal strategic objectives for every participant. Distribution location decisions apply only to specific nodes.
Operations Management views supply chains asinterdependent systems, where overall performance depends on efficiency and cost discipline at each stage.
NEW QUESTION # 39
How does a just-in-time (JIT) system influence all functional areas within a company?
Choose 2 answers
Answer: B,C
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 # 40
Which project life cycle phase includes identifying the need for a project?
Answer: A
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Theconception phaseof the project life cycle includesidentifying the need for a project.
During conception, organizations:
* Recognize problems or opportunities
* Define high-level objectives
* Align projects with strategic goals
* Decide whether a project should be considered
This phase precedes detailed planning and feasibility analysis. It focuses onwhya project is needed rather than howit will be executed.
The other phases occur later:
* Planning defines scope, schedule, and resources
* Feasibility analysis evaluates viability
* Execution implements the project
Project Management integrates with Operations Management when projects involve capacity expansion, process redesign, or system implementation.
NEW QUESTION # 41
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