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| Section | Objectives |
|---|---|
| Competency 1: Operations Management Fundamentals | - History and evolution of operations management - Product and service design - Operations strategy and competitive priorities |
| Competency 5: Capacity Planning and Facility Layout | - Capacity planning strategies - Location analysis and decisions - Facility layout types (process, product, cellular, fixed-position) |
| 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 3: Process Improvement and Problem Solving | - Six Sigma methodology - Plan-Do-Study-Act (PDSA) cycle - Cause-and-effect diagrams (fishbone diagrams) - Lean operations and waste elimination - Statistical Process Control (SPC) |
| Competency 6: Production Planning and Scheduling | - Aggregate planning - Master Production Schedule (MPS) - Just-in-Time (JIT) and Kanban systems - Theory of Constraints (TOC) - Material Requirements Planning (MRP) |
| Competency 4: Supply Chain Management | - Sourcing and procurement - Inventory management - Logistics and distribution - Supply chain design and strategy |
| Competency 7: Forecasting | - Quantitative forecasting methods (moving averages, exponential smoothing) - Qualitative forecasting methods - Forecast accuracy measures |
>> Sample Operations-Management Questions Pdf <<
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NEW QUESTION # 10
Which role do third-party logistics providers play in the supply chain?
Answer: C
Explanation:
Third-party logistics (3PL) providers act asexternal distributorsin the supply chain.
They perform logistics functions such as:
* Transportation
* Warehousing
* Distribution
* Order fulfillment
These providers operate outside the firm but integrate closely with its operations. Organizations use 3PLs to:
* Reduce capital investment
* Increase flexibility
* Access logistics expertise
* Improve service levels
Operations Management recognizes outsourcing logistics as a strategic decision that allows firms to focus on core competencies while maintaining efficient distribution networks.
NEW QUESTION # 11
Which two types of operations include repetitive processes?
Choose 2 answers
Answer: B,D
NEW QUESTION # 12
What are two reasons a company might be hesitant to provide overtime as a capacity-based option?
Choose 2 answers
Answer: B,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 # 13
A construction company produces furnished pre-fabricated manufactured homes. The production manager has discovered the following challenges within one of the facilities:
* Production quantities are low and only a small number of homes are built efficiently.
* The facility space allows for low handling of materials.
* There is limited space available for employees to operate.
Which hybrid layout should be used to address the company's needs?
Answer: D
Explanation:
The appropriate hybrid layout isgroup technology.
Group technology combines the efficiency of product layouts with the flexibility of process layouts by grouping similar products into familiesand arranging workstations intocells. Each cell is designed to handle a specific family of products from start to finish.
In the case of prefabricated homes:
* Production volumes are low
* Product designs share similarities
* Space is constrained
* Material handling must be minimized
Group technology reduces:
* Movement of materials
* Setup times
* Work-in-process inventory
* Congestion in limited spaces
The other options are not layouts:
* Process performance metrics are measurement tools
* Manufacturing technology refers broadly to automation
* Statistical reduction control is not a recognized layout concept
Operations Management promotes group technology as an effective solution forlow-volume, moderate- variety environments, especially where space efficiency and flow improvement are critical.
NEW QUESTION # 14
Why is the marketing plan essential to the creation of the aggregate plan?
Answer: D
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 # 15
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