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| Section | Objectives |
|---|---|
| Competency 4: Supply Chain Management | - Logistics and distribution - Supply chain design and strategy - Inventory management - Sourcing and procurement |
| Competency 5: Capacity Planning and Facility Layout | - Facility layout types (process, product, cellular, fixed-position) - Location analysis and decisions - Capacity planning strategies |
| Competency 7: Forecasting | - Forecast accuracy measures - Qualitative forecasting methods - Quantitative forecasting methods (moving averages, exponential smoothing) |
| Competency 6: Production Planning and Scheduling | - Just-in-Time (JIT) and Kanban systems - Material Requirements Planning (MRP) - Master Production Schedule (MPS) - Aggregate planning - Theory of Constraints (TOC) |
| Competency 3: Process Improvement and Problem Solving | - Lean operations and waste elimination - Plan-Do-Study-Act (PDSA) cycle - Statistical Process Control (SPC) - Cause-and-effect diagrams (fishbone diagrams) - Six Sigma methodology |
| Competency 1: Operations Management Fundamentals | - History and evolution of operations management - Product and service design - Operations strategy and competitive priorities |
| Competency 2: Quality Management | - Malcolm Baldrige National Quality Award criteria - Total Quality Management (TQM) - Cost of quality (prevention, appraisal, internal/external failure) - Quality management philosophies (Deming, Juran, Crosby) |
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NEW QUESTION # 23
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: B,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 # 24
The annual cost of goods sold for a company is $8,400,000 and the average inventory is $1,200,000.
What is the number of weeks of supply?
Answer: D
Explanation:
Weeks of supplymeasures how long inventory will last based on average usage. It is calculated using the formula:
Weeks of Supply = (Average Inventory / Annual Cost of Goods Sold) × 52
Substituting the given values:
Weeks of Supply = (1,200,000 / 8,400,000) × 52
Weeks of Supply = 0.142857 × 52
Weeks of Supply #7.43 weeks
When rounded to the nearest whole number, the answer is7 weeks.
In Operations and Supply Chain Management, weeks of supply is a key inventory performance metric because it:
* Indicates inventory efficiency
* Helps balance service levels and holding costs
* Supports cash flow management
* Enables comparison across products or firms
Too many weeks of supply signal excess inventory and high holding costs, while too few weeks increase the risk of stockouts and service failures.
Managers use this metric alongside inventory turnover to evaluate how effectively inventory supports demand while minimizing waste.
NEW QUESTION # 25
Which factor determines how long it takes a qualified operator to perform a duty of the job requirements under the assumption that the operator is working at a sustainable pace with the proper tools for the process?
Answer: C
Explanation:
Standard timeis the measure that determines how long it should take a qualified operator to perform a jobat a sustainable pace using proper tools and methods.
In Operations Management and work measurement, standard time represents theallowed timeto complete a task, including:
* Normal time (observed time adjusted for performance rating)
* Allowances for fatigue
* Personal needs
* Unavoidable delays
Standard time is essential for:
* Scheduling work
* Determining labor requirements
* Establishing production standards
* Capacity planning
* Incentive wage systems
The other options represent intermediate concepts:
* Observed timeis the raw measured time
* Normal timeadjusts observed time for performance rating
* Performance timeis not a standard OM term
By incorporating allowances, standard time ensures that expectations arerealistic and sustainable, protecting both productivity and employee well-being. It is a foundational element of work system design and labor planning.
NEW QUESTION # 26
Which concept takes a total system approach to creating an efficient operation and combines concepts such as just-in-time (JIT), total quality management (TQM), and continuous improvement?
Answer: C
Explanation:
Lean systemstake atotal system approachto operational efficiency by integrating just-in-time (JIT), total quality management (TQM), and continuous improvement (Kaizen).
Lean is not a single tool but amanagement philosophyfocused on:
* Eliminating waste
* Improving flow
* Engaging employees
* Delivering customer-defined value
JIT ensures materials and work arrive only when needed, TQM ensures quality at every step, and continuous improvement drives ongoing enhancement. Lean systems coordinate these elements into a coherent operating model.
The other options are narrower in scope:
* CRM focuses on customer data and relationships
* ERP integrates information systems
* ISO 9001 provides quality standards but not operational design
Operations Management views lean systems as the umbrella framework that aligns people, processes, and technology to achieve efficiency and competitiveness.
NEW QUESTION # 27
How do just-in-time (JIT) and lean systems add value?
Answer: B
Explanation:
Just-in-time (JIT) and lean systems add valueby reducing wasteacross all operational processes.
Lean Operations define value strictly from thecustomer's perspective. Any activity that does not add value to the product or service is considered waste (muda). JIT and lean systems systematically identify and eliminate this waste to improve efficiency, quality, and responsiveness.
Common types of waste targeted include:
* Overproduction
* Waiting time
* Excess inventory
* Unnecessary motion
* Transportation
* Defects and rework
* Overprocessing
By reducing waste, organizations achieve:
* Shorter lead times
* Lower costs
* Improved quality
* Greater flexibility
Options such as improving lighting or enhancing responsibility may support efficiency indirectly but do not define the core value mechanism of JIT and lean systems. Increasing simplicity is a result of waste reduction, not the primary method.
Operations Management emphasizes waste elimination as the foundation of sustainable operational excellence, making optionCthe correct answer.
NEW QUESTION # 28
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