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C215 Operations Management PVDC Final Exam Questions With 100% EXACT Answers 2024 Latest Updated Graded A+. C215 Operations Management PVDC Final Exam Questions With 100% EXACT Answers 2024 Latest Updated Graded A+.
Typology: Exams
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Which definition is used for quality, evaluates how well a product performs its intended function? - EXACT ANSWER Fitness for use 14 points for quality improvement - EXACT ANSWER Which total quality management (TQM) process was developed to stress management's responsibility for quality? ISO 9000 - EXACT ANSWER Set of international standards on quality management and quality assurance, critical to international business -TQM process consists of 13 published standards and guidelines -Like when joint commission shows up at the hospitals Checklist - EXACT ANSWER A list of common defects and the number of observed occurrences of these defects. scatter diagram - EXACT ANSWER a plot of two variables showing whether they are related Control Chart - EXACT ANSWER A graph that shows whether a sample of data falls within the common or normal range of variation. mean - EXACT ANSWER A statistical measure of central tendency, or average, based on dividing a total by the number of individual cases. assignable causes of variation - EXACT ANSWER -Causes can be identified and eliminated -e.g. poor employee training, worn tool, machine needing repair common causes or random - EXACT ANSWER Stuff you cannot identify -Random causes that we cannot identify, unavoidable Cpk measures - EXACT ANSWER How close one is to a target and how consistent one is with the average performance. -How closely it measures
Six Sigma - EXACT ANSWER Technical tolls and people involvement The empirical rule, 3 standard deviations. This is 3 sigma's. 6 sigmas and you are almost at 100% DMAIC DMAIC (Define, Measure, Analyze, Improve, Control) - EXACT ANSWER a six sigma process that outlines the steps that should be followed to improve an existing business process define stage - EXACT ANSWER includes the voice of the customer and value stream Job Design - EXACT ANSWER It does not have anything to do with people. -The process by which managers decide how to divide tasks into specific jobs waiting time - EXACT ANSWER -Screen patients and fast track those with minor ailments -amount of time a process has been waiting in the ready queue Service location decisions - EXACT ANSWER -proximity to customers -Quality of life issues proximity to customers - EXACT ANSWER -key factor of a location analysis for a service company -if you need to have a car repaired, you wont drive too far. Capacity Planning - EXACT ANSWER Hospital- Capacity is beds and output is the patients. If you have 1 pt for 2 days and one for 3 days. The output is how many patients and not how many beds we have. capacity utilization - EXACT ANSWER are you using more workers and what are your resources? Measures how much of the available capacity is actually being used. Measures effectiveness. Capacity Focus - EXACT ANSWER facilities that are small, specialized, and focused on a narrow set of objectives.
effective capacity - EXACT ANSWER capacity measurement at the best operating level - EXACT ANSWER when the average unit cost is minimized center of gravity approach - EXACT ANSWER an approach for locating a single facility that minimizes the distance to existing facilities. -use the breakeven analysis -how many units needed to manufacture to breakeven. break-even analysis - EXACT ANSWER the process of determining the number of units a firm must sell to cover all costs. Considers fixed costs, variable costs.eg Fed EX is in Tennessee so it will be in the middle repetitive process - EXACT ANSWER classic assembly line. A line process, a continuous process. Project Process - EXACT ANSWER make a one-at-a-time product exactly to customer specifications, expensive. Like an automobile collision shop that does body and engine repair as well as custom vehicle paint job. Batch Process - EXACT ANSWER a process in which goods or services are produced in groups (batches) and not in a continuous stream eg. auto shop offers body repair, engine repair, and custom vehicle paint options Bottleneck in a flowchart - EXACT ANSWER the longest part in the process eg manufacturing a car and the car needs to be painted or the time the cake in the oven. compute process velocity - EXACT ANSWER Throughput time/value- added time -How fast we are going Actual output/standard output - EXACT ANSWER Which formula would indicate that a fast-food restaurant was performing at, above, or below its benchmark? -We know how many burgers were making and what the standard is output/input - EXACT ANSWER productivity formula
Throughput time/value-added time - EXACT ANSWER How long it takes from the raw materials to become finished goods. Process - EXACT ANSWER Each item goes through process Which total quality management (TQM) process was developed to stress management's responsibility for quality? - EXACT ANSWER 14 points for quality improvement Hybrid - EXACT ANSWER any mix of elements from a product layout and a process layout, to gain the advantages of both eg group technology standard time - EXACT ANSWER Determines how long it takes a qualified operator to perform a duty of the job requirements under the assumption that the operator is working at a sustainable pace with the proper tools for the process. -How long t takes somebody to finish the work performance time - EXACT ANSWER How long it actually took observed time - EXACT ANSWER Actual time -The time measured from stopwatch infinite loading - EXACT ANSWER A scheduling approach that ignores capacity constraints. -Working backwards -ex Amazon doesn't have the computer you want but they have a network where they can send you to someone who can give it to you finite loading - EXACT ANSWER -Working forward. -Jobs are assigned to work centers taking into account the work center capacity and job processing times. -Have fixed capacity -ex I go to a bike shop to buy a bike. They know what people will want. They offer repair, the can say I need this employee for repair shop. They have resources to manage Backwards Scheduling - EXACT ANSWER Begins with required delivery date and works in the reverse order to determine when each process step must be preformed.
Respect for people - EXACT ANSWER A 3rd element element of JIT that considers human resources as an essential part of the JIT philosophy. Reducing waste is achieved - EXACT ANSWER by Just in time and lean system Lean Systems - EXACT ANSWER systems that maximize productivity by reducing waste and delays. Not sacrificing productivity -JIT is a part of lean system
Kanban System - EXACT ANSWER a pull system that uses cards to visually signal the need for inventory. -Exact quantity that needs to be produced -small lot and shorten manufacturing lead time -forecast how much inventory your going to need Which total quality management (TQM) process consists of 13 published standards and guidelines? - EXACT ANSWER ISO 9000 ISO 9000 - EXACT ANSWER total quality management (TQM) process consists of 13 published standards and guidelines 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 like to measure the number of defects and observe the number of occurrences to isolate the particular defect. Which quality tool should the company use to focus on correcting this particular issue? - EXACT ANSWER checklist Which quality control tool should be used to monitor the current status or end result of a process? - EXACT ANSWER Flowchart Which group of keywords or phrases describes the crucial role that marketing plays in the total quality management (TQM) process? - EXACT ANSWER Review and recommend product changes, satisfy customers needs, open communication
What is the common theme in total quality management (TQM) across all functions in an organization? - EXACT ANSWER To satisfy customer needs Which concept of variation measures the central tendency of a set of data?
Effective capacity - EXACT ANSWER Design capacity minus allowances such as personal time and maintenance. -Lower than design capacity. -eg on the average, the bakery can make 20 custom cakes but during Christmas can do30 custom cakes Capacity measurement at the best operating level - EXACT ANSWER when the average unit cost is minimized conducting a location analysis - EXACT ANSWER -proximity to sources of supply -site consideration proximity to customers - EXACT ANSWER major factor in the decision to locate a business near its primary market territory Which two statements are true about effective capacity? - EXACT ANSWER An effective capacity maintains a minimum output rate under normal conditions. An effective capacity is lower than design capacity When is capacity measurement at the best operating level? - EXACT ANSWER When the average unit cost is minimized Which two capacity measurement concepts should a firm consider when conducting a location analysis? - EXACT ANSWER proximity to sources of supply site considerations What is a major factor in the decision to locate a business near its primary market territory? - EXACT ANSWER proximity to customers load-distance model - EXACT ANSWER a model used in designing functional layouts where movement is minimized e.g. open a new distribution center location in order to minimize distribution costs 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? - EXACT ANSWER by using the load-distance model Which two types of operations include repetitive processes? - EXACT ANSWER continuous process line process 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? - EXACT ANSWER batch process project process What is a bottleneck in a flowchart? - EXACT ANSWER The longest task in the process throughput time/value-added time - EXACT ANSWER Which formula would compute process velocity? Which formula would compute process velocity? - EXACT ANSWER (Throughput time) / (Value Added Time) Which formula would indicate that a fast-food restaurant was performing at, above, or below its benchmark? - EXACT ANSWER actual output/standard output process layout - EXACT ANSWER similar equipment and functions are grouped together In which organizational layout would one expect to see items arranged by type? - EXACT ANSWER process hybrid layout - EXACT ANSWER any mix of elements from a product layout and a process layout, to gain the advantages of both eg group technology Process Layout Advantages - EXACT ANSWER -can handle a variety of processing requirements
-not particularly vulnerable to equipment failures -general-purpose equipment is often less costly than the specialized equipment used in product layouts -it is possible to use individual incentive plans Product Layout Advantages - EXACT ANSWER higher output rates, lower work-in-process inventories, less material handling, higher labor/equipment utilization, simple planning/control systems group technology - EXACT ANSWER 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 of materials -there is limited space available for employees to operate -hybrid layout -is where you have a number of facilities and each facility is responsible for a particular process. A construction company produces pre-fabricated homes. The 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 of materials -there is limited space available for employees to operate Which hybrid layout should be used to address the company's needs? - EXACT ANSWER group technology block plan - EXACT ANSWER a plan that allocates space and indicates the placement of each operation. -would use an allocation process for space requirements in an industry scenario. -A From to Matrix gives the number of trips between departments. -Use Rectilinear distance rectilinear distance - EXACT ANSWER The shortest distance between two points measured by using only north-south and east-west movements from-to matrix - EXACT ANSWER A table that gives the number of trips or units of product moved between any pair of departments.
Which instrument would use an allocation process for space requirements in an industry scenario? - EXACT ANSWER block plan What would be an organizations next step after it has revised or implemented new operations? - EXACT ANSWER -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 methods analysis? - EXACT ANSWER they may have suggestions for improving the operation Which factor determines how long it takes a qualified operator to perform a duty of the job requirements under the assumption that the operator is working at a sustainable pace with the proper tools for the process? - EXACT ANSWER standard time Which design work system minimizes repetitiveness in tasks by assigning employees the role of planning and scheduling? - EXACT ANSWER job enrichment labor specialization - EXACT ANSWER The division of labor into specialized activities that allow individuals to be more productive. - acknowledges the benefits of employee proficiency? Which work system acknowledges the benefits of employee proficiency? - EXACT ANSWER labor specialization forward scheduling - EXACT ANSWER Starting an activity as soon as possible, regardless of its deadline. Which term means to schedule a job that starts immediately, regardless of the due date? - EXACT ANSWER forward scheduling just-in-time (JIT) system - EXACT ANSWER An inventory management and control system whose objective is to reduce waste throughout the production and delivery of a product or service; in manufacturing, also known as lean production or value-added manufacturing. Use a pull system
basic element in the just in time (JIT) system are - EXACT ANSWER 1. TQM 2. JIT manufacturing 3. respect for people Push vs. Pull - EXACT ANSWER Push: workflow idea that you make something even if no one is buying it Pull: you use what you need but get enough just in time --> continuous work flow, Kanban system What is the third basic element in the just in time (JIT) system if the first element is the total quality management (TQM) and the second is JIT manufacturing? - EXACT ANSWER respect for people How do just in time (JIT) and lean systems add value? - EXACT ANSWER by reducing waste Enterprise Resource Planning (ERP) Systems - EXACT ANSWER the concept takes a total system approach to create an efficient operation and combines concepts such as just in time (JIT), total quality management (TQM), and continuous improvement a software system that integrates information from across the entire company, Which concept takes a total system approach to creating an efficient operation and combines concepts such as just in time (JIT), total quality management (TQM), and continuous improvement? - EXACT ANSWER enterprise resource planning (ERP) Kanban System is a - EXACT ANSWER a pull system that uses cards to visually signal the need for inventory. It specifies the exact quantity of a product that needs to be produced kanban significant to the "pull" system? - EXACT ANSWER It specifies the exact quantity of a product that needs to be produced What are two product system differences between the push and pull processes? - EXACT ANSWER push moves the product forward in anticipation for demand pull eliminates excessive inventory
Which function does marketing play in a just in time (JIT) organization? - EXACT ANSWER JIT marketing focuses on customer driven quality How does a just in time (JIT) system influence all functional areas within a company? - EXACT ANSWER -companies are able to reduce waste -companies enhance workers ability to perform What are two ways management can assist employees focus in a just in time (JIT) processing environment? - EXACT ANSWER -ensure that workers receive multifunctional training -develop an incentive system to reward workers for their efforts Supply Chain Management - EXACT ANSWER managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, re-sellers, and final consumers Tier one supplier - EXACT ANSWER Supplies materials or services directly to the processing facility. Which tier-level supplier directly supplies materials or services to a processing and packaging plant? - EXACT ANSWER tier one suppliers External Distributors - EXACT ANSWER transport finished products to appropriate locations -third party logistics providers play in the supply chain Third-party logistics (3PL) provider - EXACT ANSWER an independent logistics provider that performs any or all of the functions required to get a client's product to market. transport finished products to appropriate locations eg fed ex Which role do third party logistics providers play in the supply chain? - EXACT ANSWER external distributors A company manufactures and distributes its own products. When should the company consider outsourcing distribution? - EXACT ANSWER when the company determines that distribution is no longer a core function
verticle integration - EXACT ANSWER the measure of how much supply chain is owned or operated by the manufacturer. Gaining control of all the steps used to change raw materials into finished products What is the measure of how much supply chain is owned or operated by the manufacturer? - EXACT ANSWER vertical integration Which two areas should managers consider in order to adapt to the business dynamics affecting their company? - EXACT ANSWER -their control over internal operations -their advertising costs What are two strategic objectives for every member of the supply chain? - EXACT ANSWER -becoming more efficient -reducing production and delivery times How does the status of overall customer satisfaction support supply chain objectives? - EXACT ANSWER it measures efficiency Supply Chain Operations Reference Model (SCOR) - EXACT ANSWER the model that has been created to examine the four different supply chain perspectives of reliability, flexibility, expenses, and asset/utilization What is the name of the model that has been created to examine the four different supply chain perspectives of reliability, flexibility, expenses, and asset/utilization? - EXACT ANSWER SCOR (Supply Chain Operations Reference) The annual cost of goods sold for a company is $8,400,000 and the average inventory is $1,200,000. What is the number of weeks of supply? - EXACT ANSWER 7 percentage of line items shipped on schedule - EXACT ANSWER When there are Finished Goods a customer service measure appropriate when customer orders vary in number of line items ordered A manufacturing firm uses warehouses and shippers in their supply chain.
At which stage of the firm's inventory management system would the statement "percentage of the line items shipped on schedule" be used? - EXACT ANSWER finished goods How does inventory management differ for manufacturing organizations compared to service organizations? - EXACT ANSWER manufacturing organizations must keep a large amount of product on hand at all times, regardless of demand What is one advantage of a periodic review system? - EXACT ANSWER 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: -Jan 20,000 units -Feb 17,000 units -Mar 19,000 units -Apr 21,000 units -May 22,000 units June 24,000 units Beginning inventory of 10,000 units should be maintained. What is the average monthly new widget production demand for the company? - EXACT ANSWER 20, A company suddenly finds demand has increased to 140% 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? - EXACT ANSWER -subcontract a portion of production capacity -hire temporary workers What are two reasons a company might be hesitant to provide overtime as a capacity-based option? - EXACT ANSWER -overtime is not a long term solution
-overtime is typically a 50% wage premium demand-based options - EXACT ANSWER A group of options that respond to demand fluctuations through the use of inventory or back orders, or by shifting the demand pattern. IT IS RISKY Why might a company avoid using demand-based options such as inventory and backorders over a long period of time? - EXACT ANSWER it is more risky Which element is part of a financial plan? - EXACT ANSWER budget projections Why is the marketing plan essential to the creation of the aggregate plan? - EXACT ANSWER the marketing plan provides insight into operations goals and activities for the year What is meant by "duration of the change"? - EXACT ANSWER the length of time one expects to need the different level of capacity chase aggregated plan - EXACT ANSWER is preferable when a company produces custom or special purpose equipment, one of a kind, or highly perishable products Which type of aggregated plan is preferable when a company produces custom or special purpose equipment, one of a kind, or highly perishable products? - EXACT ANSWER a chase aggregated plan What are two common drawbacks of implementing an enterprise resource planning (ERP) solution? - EXACT ANSWER -it requires extensive, often complex, training -it takes a long time to implement and to see any benefits What is the primary purpose in using the master production schedule (MPS) in the marketing department of an organization? - EXACT ANSWER to identify new product demand Capacity Requirements Planning (CRP) - EXACT ANSWER
A company is experiencing an unusual amount of deliveries that are either late or an incorrect quantity. Which type of system is used to identify and manage this typ of problem? - EXACT ANSWER CRP (capacity requirements planning) Which statement is true about capacity requirements planning (CRP)? - EXACT ANSWER production capacity is created for future production time Why is capacity requirements planning (CRP) important? - EXACT ANSWER 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? - EXACT ANSWER conception A company decides and makes plans to enter into a new market. Which project life cycle phase does this strategy relate to? - EXACT ANSWER feasibility analysis