Operations Management

Question 1

Which definition used for quality evaluates how well a product is performing its intended function?

Answer 1

Fitness for use

Question 2

Which Total Quality Management (TQM) process was developed to stress management’s responsibility for quality?

Answer 2

14 points for quality improvement

Question 3

Which TQM process consists of 13 published standards and guidelines?

Answer 3

ISO 9000

Question 4

A company manufactures shoes using a quality management system, the company needs to put a process in place to measure any defects. The company would measure the number of defects and observe the number of occurrences to isolate the particular defects. Which quality tool should the company use to focus on correcting this particular issue??

Answer 4

Checklist

Question 5

Which quality tool control tool should be used to monitor the current status or end result of a process?

Answer 5

Flowchart

Question 6

Which group of keywords or phrases describes the critical role marketing plays in the total quality management (TQM) process?

Answer 6

Review and recommend product changes, satisfy customer needs, open communication

Question 7

What is the common theme in TQM across all functions in an organization??

Answer 7

To satisfy customer needs

Question 8

Which concept of variation measures the central tendency of a set of data?

Answer 8

Mean

Question 9

What do assignable causes of variation indicate?

Answer 9

Equipment was found to be o_ut of control_

Question 10

Which continuous improvement method does Cpk measure?

Answer 10

How close one is to a target and how consistent one is with the average performance?

Question 11

What are two important aspects of Six Sigma?

Answer 11

People involvement

Technical tools

Question 12

Which strategy is used by some emergency rooms to overcome customer frustrations about long waiting times?

Answer 12

Screen patients and fast track those with minor ailments

Question 13

Which two factors affect a service location decision?

Answer 13

Quality of life issues

Proximity to customers

Question 14

What is a key factor of a location analysis for a service company?

Answer 14

Proximity to customers

Question 15

What helps an organization identify and plan the actions necessary to meet current and future customer demands?

Answer 15

Capacity planning

Question 16

Which capacity planning measurement tells how much capacity a company is using?

Answer 16

Capacity utilization

Question 17

Which two statements are true about effective capacity?

Answer 17

An effective capacity is lower than design capacity

An effective capacity maintains a minimum output rate under normal conditions

Question 18

When is capacity measurement at the best operating level?

Answer 18

When the average unit cost is minimized

Question 19

Which two capacity measurement concepts should a firm consider when conducting a location analysis?

Answer 19

Site considerations

Proximity to sources of supplies

Question 20

What is a major factor in the decision to locate a business near its primary market territory?

Answer 20

Proximity to customers

Question 21

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 21

By using a load-distance model

Question 22

Which two types of operations include repetitive processes?

Answer 22

Continuous process

Line processing

Question 23

A comprehensive automobile collision shop offers body and engine repair as well as custom vehicle paint options. Which two operational processes would suit this shop?

Answer 23

Batch process

Project process

Question 24

What is the bottleneck in a flow chart?

Answer 24

The longest task

Question 25

Which formula would compute process velocity?

Answer 25

Throughput of time / value-added time Example: if there are 5 value added process steps with a lead time of 20 hours. 5/20=0.25 steps per hour.

Question 26

Which formula would indicate that a fast-food restaurant was performing at, above, or below its benchmark?

Answer 26

Actual output / standard output

Question 27

In which organizational layout would one expect to see items arranged by type?

Answer 27

Process

Question 28

A construction company produces furnished pre-fabricated manufactured homes. The production manager has discovered the following challenges within one of the facilities. * Production qualities are low and only a small number of homes are built efficiently * The facility space allows for low handling materials * There is limited space available for employees to operate Q: Which hybrid layout should be used to address the company's needs?

Answer 28

Group technology

Question 29

Which instrument would use an allocation process for space requirements in an industry scenario?

Answer 29

Block plan

Question 30

What would be an organization's next step after it has revised or implemented new operations?

Answer 30

Follow-up to make sure the new operation resolves quality problems

Question 31

Why is it beneficial for an organization to designate employees to communicate alternative ways to complete a job in a method analysis?

Answer 31

They may have suggestions for improving the operation

Question 32

Which factor determines how long it takes a qualified operator a duty of the job requirements that the operator s working at a sustainable pace with proper tools for the process?

Answer 32

Standard time

Question 33

Which design work system minimizes repetitiveness in tasks by assigning employees the role of planning and scheduling?

Answer 33

Job enrichment

Question 34

Which work system acknowledges the benefits of employee proficiency?

Answer 34

Labor specialization

Question 35

Which term means to schedule a job that starts immediately, regardless of the due date?

Answer 35

Forward scheduling

Question 36

What is the third basic element in the just-in-time (JIT) system if the first element is total quality management (TQM) and the second is JIT manufacturing?

Answer 36

Respect for people

Question 37

How do JIT and lean systems add value?

Answer 37

By reducing waste

Question 38

Which concept takes a total system approach to creating an efficient operation and combines concepts such as JIT, TQM, and continuous improvements.

Answer 38

Enterprise resource planning (ERP)

Question 39

Why is kanban significant to the “pull” system?

Answer 39

It specifies the exact quantity of a product that needs to be produced.

Question 40

What are two product systems differences between the push and the pull processes?

Answer 40

Push moves the product forward in anticipation for demand Pull eliminates excessive inventory

Question 41

Which function does marketing play in a JIT organization?

Answer 41

JIT marketing focuses on customer-driven quality

Question 42

How does JIT system influence all functional areas within a company? two answers

Answer 42

Companies enhance worker's ability to perform Companies are able to reduce waste

Question 43

What are two ways management can assist employees' focus in a JIT processing environment?

Answer 43

Ensure that workers receive multifunctional training Develop an incentive system to reward workers for their efforts

Question 44

Which tier-level supplier directly supplies materials or services to a processing and packaging plant?

Answer 44

Tier one suppliers

Question 45

Which role do third-party logistics providers play in the supply chain?

Answer 45

External distributers

Question 46

A company manufactures and distributes its own products. When should the company consider outsourcing its distribution?

Answer 46

When the company determines that distribution is no longer a core function

Question 47

What is the measure of how much supply chain is owned or operated by the manufacturer?

Answer 47

Vertical integration

Question 48

Which **two** areas should managers consider in order to adapt to the business dynamics affecting their company?

Answer 48

Their control over internal processes Their advertising cost

Question 49

What are two strategic objectives for every member of the supply chain objectives?

Answer 49

Become more efficient Reducing production and delivery times

Question 50

How does the status of overall customer satisfaction support supply chain objectives?

Answer 50

It measures efficiency

Question 51

What is the name of the model that has been created to examine the four different supply chain perspectives of reliability, flexibility, expenses, and assets/utilization?

Answer 51

SCOR (supply chain operations reference)

Question 52

The annual cost of goods for a company is $8,400,000 and the average inventory is $1,200,000. What is the number of weekly supplies?.

Answer 52

7 Example: 8,400,000 / 1200,000= 7

Question 53

A manufacturing firm uses warehouses and shippers in their supply chain. At which stage of the firm's inventory management system would the statement “percentages of the line items shipped on schedule" be used?

Answer 53

Finished goods

Question 54

How does inventory management differ for manufacturing organizations compared to service organizations?.

Answer 54

Manufacturing organizations must keep large amounts of product on hand at all times, regardless of demand.

Question 55

What is one advantage of a periodic review system?

Answer 55

Less inventory is needed to protect against stockouts

Question 56

A company's monthly widgets demand has been consistent for the past few years but now a variable shift in demand is forecasted. The demands are predicted to be.

Answer 56

Take the average of the months

Question 57

The company suddenly finds demand has increased to 104% of its previous capacity. It has been able to hire only a fraction of the employees previously laid off, and a warehouse fire destroyed 80% of its inventory. Which two options does the company have to rapidly meet the new demand?

Answer 57

Subcontract a portion of production capacity Hire temporary workers

Question 58

What are the **two** reasons a company might be hesitant to provide overtime as a capacity-based option?

Answer 58

Overtime is not a long-term solution Overtime is typically a 50% wage premium

Question 59

Why might a company avoid using demand-based options such as inventory and backorders over a long period of time?

Answer 59

It is more risky

Question 60

Which element is part of a financial plan?

Answer 60

Budget projections

Question 61

Why is the marketing plan essential to the creation of the aggregate plan?

Answer 61

The marketing plan provides insight into operations goals and activities for the year.

Question 62

What is it meant by “duration of the change”?

Answer 62

The length of time one expects to need the different level of capacity

Question 63

Which type of aggregate plan is preferable when a company produces custom or special purpose equipment, one-of-a-kind items, or highly perishable products?

Answer 63

A chase aggregate plan

Question 64

What are two common drawbacks of implementing an enterprise resource planning (ERP) solution?

Answer 64

It requires extensive, often complex, training

Question 65

What is the primary purpose in using the master production schedule (MPS) in the marketing department of an organization?

Answer 65

To identify new product demand

Question 66

A company is experiencing an unusual amount of deliveries that are either late or an incorrect quantity. What type of system is used to identify and manage this type of problem?

Answer 66

CRP (Capacity requirements planning)

Question 67

Which statement is true about capacity requirements planning (CRP)?

Answer 67

Production capacity is created for future production items

Question 68

Why is capacity requirements planning (CPR)

Answer 68

It provides the ability to compare available production capabilities to the planned workload.

Question 69

Which project life cycle phase includes identifying the need for a project?

Answer 69

Conception

Question 70

A company decides and makes plans to enter into a new market. Which project life cycle phase does this strategy directly relate to?

Answer 70

Feasibility analysis