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| Section | Objectives |
|---|---|
| Competency 1: Operations Management Fundamentals | - Product and service design - Operations strategy and competitive priorities - History and evolution of operations management |
| Competency 4: Supply Chain Management | - Inventory management - Logistics and distribution - Sourcing and procurement - Supply chain design and strategy |
| Competency 5: Capacity Planning and Facility Layout | - Location analysis and decisions - Facility layout types (process, product, cellular, fixed-position) - Capacity planning strategies |
| Competency 2: Quality Management | - Malcolm Baldrige National Quality Award criteria - Quality management philosophies (Deming, Juran, Crosby) - Cost of quality (prevention, appraisal, internal/external failure) - Total Quality Management (TQM) |
| Competency 7: Forecasting | - Forecast accuracy measures - Quantitative forecasting methods (moving averages, exponential smoothing) - Qualitative forecasting methods |
| Competency 6: Production Planning and Scheduling | - Just-in-Time (JIT) and Kanban systems - Aggregate planning - Master Production Schedule (MPS) - Material Requirements Planning (MRP) - Theory of Constraints (TOC) |
| Competency 3: Process Improvement and Problem Solving | - Statistical Process Control (SPC) - Cause-and-effect diagrams (fishbone diagrams) - Plan-Do-Study-Act (PDSA) cycle - Lean operations and waste elimination - Six Sigma methodology |
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NEW QUESTION # 58
What is one advantage of a periodic review system?
Answer: C
Explanation:
A key advantage of aperiodic review inventory systemis thatall items are reviewed at the same time interval.
In a periodic review system:
* Inventory levels are checked at fixed intervals (e.g., weekly, monthly)
* Orders are placed to raise inventory to a target level
* Multiple items can be ordered together
This approach simplifies administration and reduces ordering costs, making it especially suitable for:
* Retail environments
* Low-value or slow-moving items
* Situations where continuous monitoring is impractical
The other options describe continuous review systems:
* Individual item handling
* Real-time inventory updates
* Lower safety stock requirements
Operations Management recognizes periodic review as a trade-off between control and simplicity. While it may require higher safety stock, it offers operational efficiency and cost savings in many contexts.
NEW QUESTION # 59
What are two ways management can assist employees' focus in a just-in-time (JIT) processing environment?
Choose 2 answers
Answer: A,B
Explanation:
Management can assist employee focus in a JIT environment byproviding multifunctional trainingand developing incentive systems that reward performance.
Multifunctional trainingenables employees to:
* Perform multiple tasks
* Rotate between roles
* Support flexible staffing
* Respond quickly to disruptions
This flexibility is essential in JIT systems, where minimal buffers exist and disruptions must be resolved immediately.
Incentive systemsreinforce desired behaviors such as problem-solving, quality improvement, teamwork, and waste reduction. Rewards aligned with JIT objectives encourage employees to maintain discipline and continuous improvement.
The incorrect options conflict with JIT philosophy:
* Separating cultures undermines teamwork
* Forcing quality charting during free time creates resistance
Operations Management emphasizes that JIT success depends onpeople-centered management, not just technical tools.
NEW QUESTION # 60
Which capacity planning measurement tells how much capacity a company is using?
Answer: B
Explanation:
Comprehensive and Detailed Explanation (#250 words):
Capacity utilizationmeasures how much of a company's available capacity is actually being used.
It is calculated as:
Capacity Utilization = Actual Output / Design or Effective Capacity
In Operations Management, capacity utilization provides insight into:
* Operational efficiency
* Resource usage
* Potential bottlenecks or underutilization
High utilization may indicate efficiency but can also lead to congestion, fatigue, and quality problems. Low utilization suggests excess capacity and higher unit costs.
The other terms describe different concepts:
* Design capacityis the maximum theoretical output
* Effective capacityaccounts for normal disruptions
* Capacity focusrefers to strategic specialization
Capacity utilization helps managers balance efficiency with flexibility, making it a core performance metric in both manufacturing and service operations.
NEW QUESTION # 61
What would be an organization's next step after it has revised or implemented new operations?
Answer: C
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 # 62
What is a key factor of a location analysis for a service company?
Answer: B
Explanation:
Comprehensive and Detailed Explanation (#250 words):
The most critical factor in a service company's location analysis isproximity to customers.
Service operations differ fundamentally from manufacturing because theservice is often produced and consumed simultaneously. As a result, customer access, convenience, and responsiveness are central determinants of demand and satisfaction.
From an Operations Management perspective, proximity to customers:
* Reduces waiting and travel time
* Increases service usage frequency
* Improves customer perception of reliability and availability
* Enables faster response to service failures
Examples include healthcare facilities, retail stores, hospitality, and professional services. In all cases, distance acts as ademand deterrent.
The other options are secondary:
* Community relations are important but not decisive
* Best operating level and effective capacity are internal capacity measures, not location drivers Thus, service location strategy prioritizesmarket access over production efficiency, reinforcing customer- centric operations.
NEW QUESTION # 63
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