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| Section | Objectives |
|---|---|
| Process Design and Analysis | - Capacity Planning and Bottlenecks - Process Mapping and Flow |
| Project and Operations Scheduling | - Project Management Basics - Scheduling Techniques |
| Supply Chain and Inventory Management | - Just-in-Time (JIT) and Lean Operations - Supply Chain Design and Logistics - Inventory Models and Control Systems |
| Operations Management Foundations | - Introduction to Operations and Productivity - Operations Strategy and Competitiveness |
| Quality Management | - Total Quality Management (TQM) - Six Sigma and Continuous Improvement |
| Forecasting and Planning | - Demand Forecasting Methods - Aggregate Planning |
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NEW QUESTION # 37
What are two common drawbacks of implementing an enterprise resource planning (ERP) solution?
Choose 2 answers
Answer: A,C
Explanation:
Comprehensive and Detailed Explanation (#270 words):
Two widely recognized drawbacks of ERP implementations are that theytake a long time to implement (and to realize benefits)andrequire extensive, often complex training-optionsAandB.
ERP systems integrate data and processes across functions (planning, procurement, production, inventory, finance, distribution). That integration is valuable, but it also makes implementation complex: processes must be aligned, data standardized, roles clarified, and change managed across departments. As a result, organizations often experience long project timelines before stable adoption and measurable benefits occur.
Training is a major burden because ERP changes how people work day-to-day. Users must learn new transaction flows, reporting logic, and discipline in data entry. Without strong training, adoption collapses into workarounds, bad data, and loss of trust in the system.
This connects to the operations principle that planning and control systems are "mechanisms and operating logics" used to manage resources and supplies over time to meet requests. ERP is one such enabling infrastructure-but it must support operations rather than become a constraint.
While customization can be an issue in some cases, the most universal drawbacks across organizations remain time-to-valueandtraining complexity, makingA and Bthe best answers.
NEW QUESTION # 38
What is a major factor in the decision to locate a business near its primary market territory?
Answer: A
Explanation:
Comprehensive and Detailed Explanation (#250 words):
The dominant factor in locating a business near its primary market territory isproximity to customers.
From an Operations Management perspective, closeness to customers:
* Reduces transportation and delivery time
* Improves service responsiveness
* Enhances customer satisfaction
* Supports demand growth
This is especially critical for service organizations and distribution-intensive businesses, where customer access and speed are competitive advantages.
While proximity to labor is important, it does not define market territory. Community centers and parks are not operational drivers.
Locating near customers aligns capacity with demand, minimizes logistics complexity, and strengthens market presence.
NEW QUESTION # 39
Which work system acknowledges the benefits of employee proficiency?
Answer: B
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Labor specializationacknowledges the benefits of employee proficiency by allowing workers to focus on specific tasks, increasing skill, speed, and consistency.
In Operations Management, labor specialization:
* Reduces learning time
* Increases productivity
* Improves quality consistency
* Lowers unit costs
Employees become highly proficient through repetition and experience. This principle underpins early scientific management and remains relevant in many high-volume environments.
The other options are outcomes or enablers, not work systems:
* Employee longevity is a result, not a system
* Enhanced relations support performance but do not define task design
* Lower operating cost is a consequence of specialization
While specialization can create efficiency, it must be balanced with job design strategies (e.g., enrichment or rotation) to avoid fatigue and disengagement.
NEW QUESTION # 40
Which formula would compute process velocity?
Answer: C
Explanation:
Process velocityis computed using the ratio:
Process Velocity = Throughput Time / Value-Added Time
This metric measures how efficiently time is used within a process. A high ratio indicates excessivenon- value-added time, such as waiting, moving, or rework.
Operations Management focuses on reducing throughput time while maximizing value-added activities.
Process velocity highlights inefficiencies that are often invisible in traditional productivity measures.
The other formulas measure different concepts:
* Resource utilization (A)
* Performance efficiency (B)
* Productivity (D)
A low process velocity (closer to 1) indicates a lean, efficient process, while high values suggest opportunities for improvement.
NEW QUESTION # 41
A company manufactures and distributes its own products.
When should the company consider outsourcing its distribution?
Answer: C
Explanation:
A company should consider outsourcing distributionwhen it determines that distribution is no longer a core function.
Operations Management defines core functions as activities that:
* Create competitive advantage
* Differentiate the firm
* Require proprietary knowledge or capabilities
If distribution does not meet these criteria, outsourcing can:
* Lower costs
* Improve service reliability
* Increase scalability
* Allow management to focus on strategic priorities
The other options do not justify outsourcing:
* Forecasting difficulty is a management issue
* Lowest-cost operators should retain distribution
* Regulations do not eliminate strategic relevance
Outsourcing decisions must align with long-term operations strategy, not short-term cost fluctuations.
NEW QUESTION # 42
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