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| Section | Objectives |
|---|---|
| Competency 5: Capacity Planning and Facility Layout | - Location analysis and decisions - Facility layout types (process, product, cellular, fixed-position) - Capacity planning strategies |
| Competency 3: Process Improvement and Problem Solving | - Six Sigma methodology - Cause-and-effect diagrams (fishbone diagrams) - Plan-Do-Study-Act (PDSA) cycle - Statistical Process Control (SPC) - Lean operations and waste elimination |
| Competency 4: Supply Chain Management | - Logistics and distribution - Sourcing and procurement - Inventory management - Supply chain design and strategy |
| Competency 2: Quality Management | - Total Quality Management (TQM) - Cost of quality (prevention, appraisal, internal/external failure) - Malcolm Baldrige National Quality Award criteria - Quality management philosophies (Deming, Juran, Crosby) |
| Competency 1: Operations Management Fundamentals | - Operations strategy and competitive priorities - Product and service design - History and evolution of operations management |
| Competency 6: Production Planning and Scheduling | - Theory of Constraints (TOC) - Material Requirements Planning (MRP) - Just-in-Time (JIT) and Kanban systems - Master Production Schedule (MPS) - Aggregate planning |
| Competency 7: Forecasting | - Quantitative forecasting methods (moving averages, exponential smoothing) - Forecast accuracy measures - Qualitative forecasting methods |
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NEW QUESTION # 50
A company decides and makes plans to enter into a new market.
Which project life cycle phase does this strategy directly relate to?
Answer: B
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 # 51
Why is the marketing plan essential to the creation of the aggregate plan?
Answer: A
Explanation:
The marketing plan is essential to the aggregate plan because itprovides insight into operations goals and activities for the year.
Aggregate planning aligns production, workforce, and inventory decisions withexpected demand, which is forecasted by marketing. Marketing defines:
* Sales volume expectations
* Product mix
* Promotional timing
* Market priorities
Operations uses this information to:
* Set capacity levels
* Plan workforce size
* Schedule production rates
* Manage inventory
While demand data and cash flow matter, the key contribution of marketing is translating market strategy into operational requirements.
Operations Management emphasizes cross-functional integration; without marketing input, aggregate plans risk misalignment with actual market needs.
NEW QUESTION # 52
Which design work system minimizes repetitiveness in tasks by assigning employees the role of planning and scheduling?
Answer: A
Explanation:
Job enrichmentminimizes task repetitiveness byexpanding employee responsibilitiesto include planning, scheduling, decision-making, and problem-solving.
In Operations Management, job enrichment increases thedepth of a job, not just the variety of tasks.
Employees gain greater autonomy and control over their work, reducing monotony and increasing motivation.
Key characteristics of job enrichment include:
* Vertical job loading
* Increased responsibility
* Feedback on performance
* Greater task significance
The other options differ:
* Job rotationincreases task variety but does not add responsibility
* Job entitlementandjob ratingare not work design systems
Job enrichment is especially valuable in repetitive environments such as assembly lines, where adding planning and quality responsibilities improves both morale and performance.
NEW QUESTION # 53
How do just-in-time (JIT) and lean systems add value?
Answer: D
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 # 54
What are two reasons a company might be hesitant to provide overtime as a capacity-based option?
Choose 2 answers
Answer: A,C
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 # 55
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