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| Section | Objectives |
|---|---|
| Topic 1: Competency 7: Forecasting | - Qualitative forecasting methods - Forecast accuracy measures - Quantitative forecasting methods (moving averages, exponential smoothing) |
| Topic 2: Competency 4: Supply Chain Management | - Inventory management - Supply chain design and strategy - Sourcing and procurement - Logistics and distribution |
| Topic 3: Competency 5: Capacity Planning and Facility Layout | - Location analysis and decisions - Facility layout types (process, product, cellular, fixed-position) - Capacity planning strategies |
| Topic 4: Competency 3: Process Improvement and Problem Solving | - Cause-and-effect diagrams (fishbone diagrams) - Six Sigma methodology - Lean operations and waste elimination - Plan-Do-Study-Act (PDSA) cycle - Statistical Process Control (SPC) |
| Topic 5: Competency 1: Operations Management Fundamentals | - Product and service design - Operations strategy and competitive priorities - History and evolution of operations management |
| Topic 6: Competency 2: Quality Management | - Total Quality Management (TQM) - Quality management philosophies (Deming, Juran, Crosby) - Malcolm Baldrige National Quality Award criteria - Cost of quality (prevention, appraisal, internal/external failure) |
| Topic 7: Competency 6: Production Planning and Scheduling | - Theory of Constraints (TOC) - Aggregate planning - Material Requirements Planning (MRP) - Just-in-Time (JIT) and Kanban systems - Master Production Schedule (MPS) |
>> Operations-Management New Questions <<
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NEW QUESTION # 56
Which two types of operations include repetitive processes?
Choose 2 answers
Answer: A,C
Explanation:
Line processesandcontinuous processesare the two operational process types characterized byhighly repetitive activities.
Aline processinvolves standardized products moving through a fixed sequence of steps. Each workstation performs the same task repeatedly, making it ideal for high-volume, low-variety production. Examples include automobile assembly lines and consumer electronics manufacturing.
Acontinuous processgoes a step further, operating24/7 with extremely high volume and minimal variation
. Production flows continuously rather than in discrete units. Industries such as oil refining, chemicals, and paper manufacturing use continuous processes.
The other options are not primarily repetitive:
* Project processesare unique, one-time efforts (e.g., construction projects)
* Batch processesinvolve moderate repetition but frequent changeovers between batches Operations Management classifies processes based onvolume and variety. Line and continuous processes sit at the high-volume, low-variety end of the spectrum, making repetition unavoidable and necessary for efficiency.
Repetitive processes enable:
* High labor productivity
* Low unit cost
* Process automation
* Consistent quality
However, they also require careful work system design to avoid worker fatigue and quality drift.
NEW QUESTION # 57
Which definition used for quality evaluates how well a product performs its intended function?
Answer: C
Explanation:
The concept ofquality as "fitness for use"evaluates how well a product or service performs itsintended function from the customer's perspective. This definition was strongly emphasized by quality pioneer Joseph Juranand is widely adopted in Operations Management and Total Quality Management (TQM) frameworks.
Fitness for use means that a product must not only meet technical specifications but must alsoperform reliably, safely, and effectively in real customer usage conditions. For example, a shoe that looks attractive but causes discomfort or wears out quickly is not "fit for use," even if it meets internal manufacturing standards.
This definition contrasts with other quality perspectives:
* Support servicesfocus on after-sales service, not the product's core function.
* Value for price paidevaluates perceived value, which includes cost considerations.
* Psychological criteriarelate to image, aesthetics, or brand perception.
Operations Management emphasizes fitness for use because it directly linksdesign, production, and customer satisfaction. Products designed without considering how customers actually use them often lead to defects, complaints, and warranty costs-even if internal quality standards are met.
Fitness for use also reinforcescross-functional coordination, especially between marketing (understanding customer needs), design (translating needs into specifications), and operations (producing consistently). This definition supports continuous improvement by encouraging organizations to reduce variability, improve reliability, and focus on customer-defined quality rather than internally defined metrics alone.
NEW QUESTION # 58
Which two statements are true about effective capacity?
Choose 2 answers
Answer: B,D
Explanation:
Effective capacityrepresents themaximum output a system can realistically achieve under normal operating conditions. It is alwayslower than design capacity, which assumes ideal, uninterrupted conditions.
StatementAis correct because effective capacity accounts for:
* Scheduled maintenance
* Breaks and shift changes
* Setup times
* Normal inefficiencies
StatementBis also correct because effective capacity is considered astable, ongoing measureused for operational planning and performance evaluation. It reflects how a system is designed to operate sustainably over time, not temporarily.
StatementCis incorrect because effective capacity is not a short-term or temporary measure; it is used consistently for planning, scheduling, and forecasting.
StatementDis incorrect because effective capacity does not define aminimumoutput level-it defines a realistic maximumunder expected conditions.
In Operations Management, effective capacity is essential for:
* Capacity utilization calculations
* Aggregate planning
* Location and facility decisions
* Bottleneck analysis
By distinguishing between design and effective capacity, managers avoid unrealistic expectations and plan resources more accurately, reducing congestion, overtime, and quality problems.
NEW QUESTION # 59
A manufacturing company decides to open a new distribution center location in order to minimize distribution costs to warehouses or stores.
What tool should the manufacturing company use to determine where the new distribution center should be located?
Answer: B
Explanation:
Thecenter-of-gravity approachis the most appropriate tool for determining the optimal location of a distribution center when the goal is tominimize total transportation costs.
This method calculates a weighted average location based on:
* Geographic coordinates of demand points
* Volume shipped to each location
The result identifies a location that minimizes the overall distance-weighted transportation cost.
Other options serve different purposes:
* Load-distance models compare alternative sites
* Transportation methods optimize shipping routes, not facility location
* Break-even analysis compares cost structures, not spatial efficiency
In Operations Management, the center-of-gravity approach is widely used for strategic distribution planning because it provides aquantitative, objective basisfor location decisions.
NEW QUESTION # 60
Which two areas should managers consider in order to adapt to the business dynamics affecting their company?
Choose 2 answers
Answer: B,C
Explanation:
Managers must considercontrol over internal operationsandinfluence and leverage over suppliersto adapt effectively to changing business dynamics.
Internal operational control determines how quickly a firm can:
* Adjust capacity
* Improve quality
* Reduce cost
* Respond to demand changes
Supplier influence is equally critical in modern supply chains. Strong supplier relationships improve:
* Reliability
* Cost stability
* Innovation
* Responsiveness
Operations Management emphasizes that competitiveness increasingly depends onsupply chain coordination
, not isolated firm performance.
The other options are less relevant:
* Firms rarely influence future legislation
* Advertising costs relate to marketing strategy, not operational adaptability Thus, effective supply chain management requires both internal excellence and external collaboration.
NEW QUESTION # 61
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