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| Section | Objectives |
|---|---|
| Topic 1: Competency 1: Operations Management Fundamentals | - Product and service design - Operations strategy and competitive priorities - History and evolution of operations management |
| Topic 2: Competency 5: Capacity Planning and Facility Layout | - Capacity planning strategies - Location analysis and decisions - Facility layout types (process, product, cellular, fixed-position) |
| Topic 3: Competency 6: Production Planning and Scheduling | - Aggregate planning - Just-in-Time (JIT) and Kanban systems - Master Production Schedule (MPS) - Theory of Constraints (TOC) - Material Requirements Planning (MRP) |
| Topic 4: Competency 3: Process Improvement and Problem Solving | - Plan-Do-Study-Act (PDSA) cycle - Six Sigma methodology - Lean operations and waste elimination - Cause-and-effect diagrams (fishbone diagrams) - Statistical Process Control (SPC) |
| Topic 5: Competency 2: Quality Management | - Cost of quality (prevention, appraisal, internal/external failure) - Malcolm Baldrige National Quality Award criteria - Total Quality Management (TQM) - Quality management philosophies (Deming, Juran, Crosby) |
| Topic 6: Competency 7: Forecasting | - Quantitative forecasting methods (moving averages, exponential smoothing) - Forecast accuracy measures - Qualitative forecasting methods |
| Topic 7: Competency 4: Supply Chain Management | - Inventory management - Sourcing and procurement - Logistics and distribution - Supply chain design and strategy |
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NEW QUESTION # 30
Which two types of operations include repetitive processes?
Choose 2 answers
Answer: B,D
NEW QUESTION # 31
Which function does marketing play in a just-in-time (JIT) organization?
Answer: A
Explanation:
In a just-in-time (JIT) organization,marketing focuses on customer-driven quality.
Marketing provides critical input on:
* Customer expectations
* Demand patterns
* Product features
* Service requirements
This information allows operations to design processes that meet actual customer needs rather than internal assumptions. JIT requires precise alignment between demand and production, and marketing ensures that quality is defined externally by customers.
The other options confuse marketing's role with operational execution:
* Inventory flow is managed by operations
* Assembly synchronization is a production function
* Producer-driven quality contradicts TQM principles
Operations Management stresses that JIT succeeds only whenmarketing and operations are tightly integrated, with marketing acting as the voice of the customer.
NEW QUESTION # 32
A company suddenly finds demand has increased to 140% of its previous capacity. It has been able to hire only a fraction of the employees previously laid off, and a warehouse fire destroyed 80% of its inventory.
Which two options does the company have to rapidly meet the new demand?
Choose 2 answers
Answer: A,C
Explanation:
When demand rises suddenly to140% of existing capacity, the firm must rely onshort-term, flexible capacity optionsto respond quickly.
The two appropriate options are:
* Hiring temporary workers
* Subcontracting a portion of production capacity
Temporary workers can be deployed rapidly with minimal onboarding time, allowing the firm to increase output without long-term labor commitments. This option is especially effective when the demand surge may be temporary or uncertain.
Subcontracting provides immediate access toexternal capacitywithout requiring capital investment. It allows the firm to meet demand while avoiding the risks associated with permanent expansion.
The other options are not viable in the short term:
* Building new facilities is capital-intensive and slow
* Hiring and training full-time employees requires time and long-term commitment Operations Management distinguishescapacity-based optionsinto short-term (temporary labor, overtime, subcontracting) and long-term (facilities, permanent workforce). In crisis situations, speed and flexibility dominate decision-making.
NEW QUESTION # 33
In which organizational layout would one expect to see items arranged by type?
Answer: B
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 # 34
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: A
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 # 35
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