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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Forecasting and Project Management | 20% | - Demand Forecasting
|
| Topic 2: Quality Management Methods | 25% | - Total Quality Management (TQM)
|
| Topic 3: Supply Chain and Inventory Management | 20% | - Inventory Control
|
| Topic 4: Process Design and Analysis | 20% | - Process Types
|
| Topic 5: Capacity Planning and Facility Layout | 15% | - Layout Design
|
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NEW QUESTION # 21
Which two statements are true about effective capacity?
Choose 2 answers
Answer: A,B
Explanation:
Effective capacityrepresents themaximum output a system can realistically achieve under normal operating conditions. It is alwayslower than design capacity, which assumes ideal, uninterrupted conditions.
StatementAis correct because effective capacity accounts for:
* Scheduled maintenance
* Breaks and shift changes
* Setup times
* Normal inefficiencies
StatementBis also correct because effective capacity is considered astable, ongoing measureused for operational planning and performance evaluation. It reflects how a system is designed to operate sustainably over time, not temporarily.
StatementCis incorrect because effective capacity is not a short-term or temporary measure; it is used consistently for planning, scheduling, and forecasting.
StatementDis incorrect because effective capacity does not define aminimumoutput level-it defines a realistic maximumunder expected conditions.
In Operations Management, effective capacity is essential for:
* Capacity utilization calculations
* Aggregate planning
* Location and facility decisions
* Bottleneck analysis
By distinguishing between design and effective capacity, managers avoid unrealistic expectations and plan resources more accurately, reducing congestion, overtime, and quality problems.
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
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 # 24
What are two product system differences between the push and pull processes?
Choose 2 answers
Answer: C,F
Explanation:
The two correct differences between push and pull systems are:
* Push moves the product forward in anticipation of demand
* Pull eliminates excessive inventory
Push systems rely on forecasts and schedule production in advance, often leading to overproduction and excess inventory if forecasts are inaccurate.
Pull systems, by contrast, produce only what is needed when it is needed, significantly reducing inventory levels and associated costs.
The incorrect options describe misconceptions:
* Overproduction increases cost, not lowers it
* Pull systems do not create additional products
* Employee relations are not defining characteristics
* Quality control exists in both systems
Operations Management favors pull systems in environments where demand variability and cost control are critical, reinforcing lean principles.
NEW QUESTION # 25
Which continuous improvement method does Cpk measure?
Answer: A
Explanation:
The process capability indexCpkmeasureshow close a process is to its target and how consistent it is around the average performance.
Cpk is a key metric inSix Sigma and continuous improvement methodologies. It evaluates both:
* Process centering(distance from specification limits)
* Process variation(spread of data)
Unlike Cp, which assumes the process is centered, Cpk accounts for actual process performance relative to upper and lower specification limits. This makes it a more realistic indicator of quality capability.
In Operations Management, Cpk helps organizations:
* Assess whether a process can meet customer specifications
* Identify improvement priorities
* Reduce defects before they occur
Higher Cpk values indicate better performance:
* Cpk # 1.33 is generally acceptable
* Cpk # 2.0 aligns with Six Sigma performance
The other options confuse Cpk with defect rates or cycle time measures. While defects per million opportunities (DPMO) are related, Cpk specifically evaluatesprocess capability, not output counts.
By focusing on consistency and target alignment, Cpk supports preventive quality management and data- driven continuous improvement.
NEW QUESTION # 26
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