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| Section | Objectives |
|---|---|
| Supply Chain and Inventory Management | - Supply Chain Design and Logistics - Inventory Models and Control Systems - Just-in-Time (JIT) and Lean Operations |
| Forecasting and Planning | - Aggregate Planning - Demand Forecasting Methods |
| Quality Management | - Total Quality Management (TQM) - Six Sigma and Continuous Improvement |
| Project and Operations Scheduling | - Scheduling Techniques - Project Management Basics |
| Operations Management Foundations | - Operations Strategy and Competitiveness - Introduction to Operations and Productivity |
| Process Design and Analysis | - Capacity Planning and Bottlenecks - Process Mapping and Flow |
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NEW QUESTION # 71
What would be an organization's next step after it has revised or implemented new operations?
Answer: D
Explanation:
After implementing revised or new operations, the correct next step is tofollow up to ensure that the new operation resolves quality problems.
Operations Management emphasizes that implementation alone does not guarantee improvement. Post- implementation follow-up is required to:
* Verify performance improvements
* Detect unintended consequences
* Confirm quality objectives are met
* Ensure process stability
This step is central tocontinuous improvementand aligns with PDCA (Plan-Do-Check-Act) and DMAIC cycles.
The other options are ineffective or redundant:
* Reversing operation order adds no value
* Revising before use contradicts implementation
* Re-analyzing the old process ignores the change
Follow-up transforms change into learning and ensures operational improvements are sustained over time.
NEW QUESTION # 72
What is a major factor in the decision to locate a business near its primary market territory?
Answer: C
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 # 73
A company manufactures and distributes its own products.
When should the company consider outsourcing its distribution?
Answer: A
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 # 74
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 # 75
What are two reasons a company might be hesitant to provide overtime as a capacity-based option?
Choose 2 answers
Answer: A,D
Explanation:
Companies may hesitate to use overtime becauseit is not a long-term solutionandit carries a wage premium
, typically around50% higher than regular pay.
Overtime can quickly increase capacity, but prolonged use leads to:
* Employee fatigue
* Quality deterioration
* Increased absenteeism
* Higher error rates
Additionally, overtime raises labor costs substantially, increasing unit production cost and reducing profitability.
The incorrect options are misleading:
* Overtime does not necessarily build excess inventory
* Overtime increases, not decreases, labor cost per unit
Operations Management views overtime as atemporary capacity buffer, appropriate for short demand spikes but risky if used continuously.
NEW QUESTION # 76
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