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| Section | Objectives |
|---|---|
| Competency 2: Quality Management | - Quality management philosophies (Deming, Juran, Crosby) - Cost of quality (prevention, appraisal, internal/external failure) - Malcolm Baldrige National Quality Award criteria - Total Quality Management (TQM) |
| Competency 1: Operations Management Fundamentals | - History and evolution of operations management - Product and service design - Operations strategy and competitive priorities |
| Competency 5: Capacity Planning and Facility Layout | - Facility layout types (process, product, cellular, fixed-position) - Location analysis and decisions - Capacity planning strategies |
| Competency 4: Supply Chain Management | - Logistics and distribution - Supply chain design and strategy - Sourcing and procurement - Inventory management |
| Competency 3: Process Improvement and Problem Solving | - Cause-and-effect diagrams (fishbone diagrams) - Plan-Do-Study-Act (PDSA) cycle - Lean operations and waste elimination - Statistical Process Control (SPC) - Six Sigma methodology |
| Competency 7: Forecasting | - Qualitative forecasting methods - Forecast accuracy measures - Quantitative forecasting methods (moving averages, exponential smoothing) |
| Competency 6: Production Planning and Scheduling | - Just-in-Time (JIT) and Kanban systems - Master Production Schedule (MPS) - Aggregate planning - Theory of Constraints (TOC) - Material Requirements Planning (MRP) |
>> Operations-Management Free Sample Questions <<
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NEW QUESTION # 62
Why might a company avoid using demand-based options such as inventory and backorders over a long period of time?
Answer: A
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Demand-based options such asinventory accumulation and backordersare avoided long term becausethey are more risky.
Maintaining high inventory levels increases:
* Holding costs
* Obsolescence risk
* Damage and theft
* Cash flow constraints
Backorders, while avoiding inventory buildup, risk:
* Customer dissatisfaction
* Lost sales
* Damage to brand reputation
Operations Management categorizes these options asshort-term demand smoothing tools, not sustainable strategies. Over time, uncertainty in demand magnifies the risks associated with inventory imbalances or unmet demand.
The other options are incorrect:
* These methods are not inherently time consuming
* They do not directly affect subcontracting or labor policies
Thus, firms avoid long-term reliance on demand-based options to maintain stability and customer trust.
NEW QUESTION # 63
What helps an organization identify and plan the actions necessary to meet current and future customer demands?
Answer: D
Explanation:
Capacity planningis the process that helps organizations identify and plan the actions required to meet current and future customer demand.
In Operations Management, capacity planning ensures that an organization has theright amount of resources at the right time. These resources may include labor, equipment, facilities, and technology.
Capacity planning involves:
* Forecasting demand
* Evaluating existing capacity
* Identifying capacity gaps
* Selecting capacity adjustment strategies (e.g., overtime, subcontracting, expansion) Without capacity planning, organizations risk:
* Excess capacity and high costs
* Insufficient capacity and lost sales
* Poor service levels and customer dissatisfaction
Production capacity alone is static, while capacity planning isdynamic and forward-looking. Economic conditions influence demand but do not provide actionable operational plans.
Capacity planning aligns operations strategy with business strategy and supports sustainable growth.
NEW QUESTION # 64
Why is it beneficial for an organization to designate employees to communicate alternative ways to complete a job in a methods analysis?
Answer: C
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Employees are designated in methods analysis becausethey may have valuable suggestions for improving the operation.
Frontline employees:
* Perform tasks daily
* Understand practical constraints
* Observe inefficiencies and waste
* Identify improvement opportunities
Operations Management recognizes that sustainable improvement requiresemployee involvement. Workers often know better ways to reduce motion, time, or effort that are invisible to managers.
The other options are incorrect:
* Tradition alone does not justify current methods
* Expertise alone does not guarantee improvement ideas
* Resistance to training is a risk, not a benefit
Methods analysis seeks to simplify, standardize, and improve work. Employee input enhances acceptance of change and improves implementation success.
NEW QUESTION # 65
Which two factors affect a service location decision? Choose 2 answers
Answer: C,D
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 # 66
How does inventory management differ for manufacturing organizations compared to service organizations?
Answer: A
Explanation:
Manufacturing organizations differ from service organizations because they mustmaintain tangible inventory
.
In manufacturing, inventory includes:
* Raw materials
* Work-in-progress
* Finished goods
These physical items require storage, handling, tracking, and capital investment. Inventory management is therefore a central operational concern in manufacturing.
Service organizations, by contrast, typically do not produce tangible goods. Their primary "inventory" consists of:
* Labor availability
* Time
* Capacity
Idle capacity in services cannot be stored for future use, making demand management more critical than inventory storage.
The incorrect options misrepresent service and manufacturing realities:
* Services do not maintain physical WIP
* Manufacturers do not hold inventory regardless of demand
* Idle time in services is not caused by material shortages
Operations Management highlights inventory as afundamental structural differencebetween manufacturing and service systems.
NEW QUESTION # 67
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