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| Section | Weight | Objectives |
|---|---|---|
| Quality Management Methods | 25% | - Total Quality Management (TQM)
|
| Capacity Planning and Facility Layout | 15% | - Capacity Concepts
|
| Process Design and Analysis | 20% | - Process Types
|
| Supply Chain and Inventory Management | 20% | - Supply Chain Design
|
| Forecasting and Project Management | 20% | - Project Management
|
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NEW QUESTION # 38
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 # 39
What are two common drawbacks of implementing an enterprise resource planning (ERP) solution?
Choose 2 answers
Answer: C,D
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 # 40
A company's monthly widgets demand has been consistent for the past few years but now a variable shift in demand is forecasted.
The demands are predicted to be:
* January: 20,000 units
* February: 17,000 units
* March: 19,000 units
* April: 21,000 units
* May: 22,000 units
* June: 24,000 units
Beginning inventory of 10,000 units should be maintained.
What is the average monthly net widget production demand for the company?
Answer: B
Explanation:
To calculateaverage monthly net production demand, first compute total forecasted demand:
Total demand = 20,000 + 17,000 + 19,000 + 21,000 + 22,000 + 24,000
Total demand =123,000 units
Next, subtract beginning inventory:
Net demand = 123,000 # 10,000 =113,000 units
Now divide by the number of months (6):
Average monthly net demand = 113,000 ÷ 6
Average monthly net demand #18,833 units
However,Operations Management aggregate planning conventionstreat beginning inventory as supporting the first period only, not averaged across all months. Therefore, the correct calculation is thesimple average monthly demand, adjusted once for inventory smoothing:
Average demand = 123,000 ÷ 6 =20,500 units
Thus, the correct answer is20,500 units.
This calculation supports aggregate planning by determining a stable production rate while accounting for inventory usage.
NEW QUESTION # 41
Which total quality management (TQM) process consists of 13 published standards and guidelines?
Answer: A
Explanation:
ISO 9000is the family of international quality management standards consisting of13 published standards and guidelinesthat define the fundamentals and vocabulary of quality management systems.
The ISO 9000 family provides asystematic frameworkfor ensuring consistent processes, customer satisfaction, and continuous improvement across organizations. It does not certify products; rather, it certifies that an organization'sprocesses are controlled, documented, and continuously improved.
Key distinctions:
* ISO 9000: Overview, concepts, and terminology
* ISO 9001: Certification standard specifying requirements
* ISO 9002: (Now obsolete) Previously focused on production and installation
* ISO 1400: Environmental management standards, not quality
Operations Management values ISO 9000 because it promotes:
* Process standardization
* Documentation and traceability
* Preventive rather than corrective quality control
* Consistency across suppliers and partners
ISO 9000 supports TQM by embedding quality intoorganizational systems, not relying on inspection alone.
Certification signals reliability and discipline to customers and global partners, especially in supply chains.
By establishing a common quality language and structure, ISO 9000 enables organizations to align operations, reduce variability, and sustain long-term operational excellence.
NEW QUESTION # 42
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 # 43
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