Operations Management Flashcards
Which definition used for quality evaluates how well a product is performing its intended function?
Fitness for use
Which Total Quality Management (TQM) process was developed to stress management’s responsibility for quality?
14 points for quality improvement
Which TQM process consists of 13 published standards and guidelines?
ISO 9000
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??
Checklist
Which quality tool control tool should be used to monitor the current status or end result of a process?
Flowchart
Which group of keywords or phrases describes the critical role marketing plays in the total quality management (TQM) process?
Review and recommend product changes, satisfy customer needs, open communication
What is the common theme in TQM across all functions in an organization??
To satisfy customer needs
Which concept of variation measures the central tendency of a set of data?
Mean
What do assignable causes of variation indicate?
Equipment was found to be o_ut of control_
Which continuous improvement method does Cpk measure?
How close one is to a target and how consistent one is with the average performance?
What are two important aspects of Six Sigma?
People involvement
Technical tools
Which strategy is used by some emergency rooms to overcome customer frustrations about long waiting times?
Screen patients and fast track those with minor ailments
Which two factors affect a service location decision?
Quality of life issues
Proximity to customers
What is a key factor of a location analysis for a service company?
Proximity to customers
What helps an organization identify and plan the actions necessary to meet current and future customer demands?
Capacity planning
Which capacity planning measurement tells how much capacity a company is using?
Capacity utilization
Which two statements are true about effective capacity?
An effective capacity is lower than design capacity
An effective capacity maintains a minimum output rate under normal conditions
When is capacity measurement at the best operating level?
When the average unit cost is minimized
Which two capacity measurement concepts should a firm consider when conducting a location analysis?
Site considerations
Proximity to sources of supplies
What is a major factor in the decision to locate a business near its primary market territory?
Proximity to customers
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?
By using a load-distance model
Which two types of operations include repetitive processes?
Continuous process
Line processing
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?
Batch process
Project process
What is the bottleneck in a flow chart?
The longest task
Which formula would compute process velocity?
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.
Which formula would indicate that a fast-food restaurant was performing at, above, or below its benchmark?
Actual output / standard output
In which organizational layout would one expect to see items arranged by type?
Process
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?
Group technology
Which instrument would use an allocation process for space requirements in an industry scenario?
Block plan
What would be an organization’s next step after it has revised or implemented new operations?
Follow-up to make sure the new operation resolves quality problems
Why is it beneficial for an organization to designate employees to communicate alternative ways to complete a job in a method analysis?
They may have suggestions for improving the operation
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?
Standard time
Which design work system minimizes repetitiveness in tasks by assigning employees the role of planning and scheduling?
Job enrichment
Which work system acknowledges the benefits of employee proficiency?
Labor specialization
Which term means to schedule a job that starts immediately, regardless of the due date?
Forward scheduling
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?
Respect for people
How do JIT and lean systems add value?
By reducing waste
Which concept takes a total system approach to creating an efficient operation and combines concepts such as JIT, TQM, and continuous improvements.
Enterprise resource planning (ERP)
Why is kanban significant to the “pull” system?
It specifies the exact quantity of a product that needs to be produced.
What are two product systems differences between the push and the pull processes?
Push moves the product forward in anticipation for demand
Pull eliminates excessive inventory
Which function does marketing play in a JIT organization?
JIT marketing focuses on customer-driven quality
How does JIT system influence all functional areas within a company? two answers
Companies enhance worker’s ability to perform
Companies are able to reduce waste
What are two ways management can assist employees’ focus in a JIT processing environment?
Ensure that workers receive multifunctional training
Develop an incentive system to reward workers for their efforts
Which tier-level supplier directly supplies materials or services to a processing and packaging plant?
Tier one suppliers
Which role do third-party logistics providers play in the supply chain?
External distributers
A company manufactures and distributes its own products. When should the company consider outsourcing its distribution?
When the company determines that distribution is no longer a core function
What is the measure of how much supply chain is owned or operated by the manufacturer?
Vertical integration
Which two areas should managers consider in order to adapt to the business dynamics affecting their company?
Their control over internal processes
Their advertising cost
What are two strategic objectives for every member of the supply chain objectives?
Become more efficient
Reducing production and delivery times
How does the status of overall customer satisfaction support supply chain objectives?
It measures efficiency
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?
SCOR (supply chain operations reference)
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?.
7
Example: 8,400,000 / 1200,000= 7
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?
Finished goods
How does inventory management differ for manufacturing organizations compared to service organizations?.
Manufacturing organizations must keep large amounts of product on hand at all times, regardless of demand.
What is one advantage of a periodic review system?
Less inventory is needed to protect against stockouts
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.
Take the average of the months
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?
Subcontract a portion of production capacity
Hire temporary workers
What are the two reasons a company might be hesitant to provide overtime as a capacity-based option?
Overtime is not a long-term solution
Overtime is typically a 50% wage premium
Why might a company avoid using demand-based options such as inventory and backorders over a long period of time?
It is more risky
Which element is part of a financial plan?
Budget projections
Why is the marketing plan essential to the creation of the aggregate plan?
The marketing plan provides insight into operations goals and activities for the year.
What is it meant by “duration of the change”?
The length of time one expects to need the different level of capacity
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?
A chase aggregate plan
What are two common drawbacks of implementing an enterprise resource planning (ERP) solution?
It requires extensive, often complex, training
What is the primary purpose in using the master production schedule (MPS) in the marketing department of an organization?
To identify new product demand
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?
CRP (Capacity requirements planning)
Which statement is true about capacity requirements planning (CRP)?
Production capacity is created for future production items
Why is capacity requirements planning (CPR)
It provides the ability to compare available production capabilities to the planned workload.
Which project life cycle phase includes identifying the need for a project?
Conception
A company decides and makes plans to enter into a new market. Which project life cycle phase does this strategy directly relate to?
Feasibility analysis
