Operations Management: C215 Final Exam with Verified Answers, Exams of Nursing

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C215 OPERATIONS MANAGEMENT PVDC FINAL EXAM-WITH

VERIFIED ANSWERS-

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

• Statistical Quality Control Charts
• Fitness quality for use
• Product design quality
• 14 points for quality improvement
  • ANSWER✔✔Fitness for use Which total quality management (TQM) process was developed to stress management's responsibility for quality?
• Statistical Quality Control Charts
• Fitness quality for use
• Product design quality
• 14 points for quality improvement
• ANSWER✔✔14 points for quality improvement Which total quality management (TQM) process consists of 13 published standards and guidelines?
• ISO 9002
• ISO 9001
• ISO 9000
• ISO 1400
• ANSWER✔✔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 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?
• Control Chart
• Flowchart
• Scatter Diagram
• Checklist
  • ANSWER✔✔checklist Which quality control tool should be used to monitor the current status or end result of a process?
• Control Chart
• Flowchart
• Scatter Diagram
• Checklist
• ANSWER✔✔Flowchart Which group of keywords or phrases describes the crucial role that marketing plays in the total quality management (TQM) process?

• Baseline for managing quality process; investment in preventative costs, budgeting
• Enhance competition, understand consumer preferences, maintain communication with operations
• Reward employees; motivate staff performance; manage operations planned changes
• Review and recommend product changes, satisfy customer needs; open communication - 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?
• To enhance management software
• To ensure profit from product changes
• To satisfy customer needs
• To reward people rather than teams
• ANSWER✔✔To satisfy customer needs Which concept of variation measures the central tendency of a set of data?
• Range
• Variable
• Mean
• Standard deviation
• ANSWER✔✔mean What do assignable causes of variation indicate?
• Equipment was found to be out of control
• Human resources found an operator was at fault
• Out of control signals were found in the process
• A computer virus was found in the system
• ANSWER✔✔Equipment was found out of control Which continuous improvement method does Cpk measure?
• What a process is capable of and how long it will take to conclude
• How close one is to a target and how consistent one is with the average performance
• Parts per million on the capability index
• The most common measurement process - ANSWER✔✔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
• Facility location
• Technical tools
• Job design - ANSWER✔✔people involvement technical tools Which strategy is used by some emergency rooms to overcome customer frustrations about long waiting times?
• See each patient in the order they arrived
• Screen patients and fast track minor ailments
• Screen and schedule follow up appts for serious injuries
• Screen and send the last 25 to another facility - ANSWER✔✔Screen patients and fast-track those with minor ailments

• Proximity to sources of supply
• site considerations
• building employee relations
• throughput time
• 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?
• Proximity to labor
• Proximity to customers
• Proximity to parks
• Proximity to a community center
• ANSWER✔✔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 the break-even analysis
• By using the load-distance model
• by using the center-of-gravity approach
• By using the transportation method
  • ANSWER✔✔by using the load-distance model Which two types of operations include repetitive processes?
• Continuous process
• Batch process
• Line process
• Project process - 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?
• Continuous Process
• Batch process
• Project proces
• Line process
• ANSWER✔✔batch process project process What is a bottleneck in a flowchart?
• multiple storage areas
• The longest task in the process
• two stages operation independently

• The point where production is evened out
  • ANSWER✔✔The longest task in the process Which formula would compute process velocity?
• Time a resources is used/time a resource is available
• Throughput time/value-added time
• Output/input
• Actual output/standard output - ANSWER✔✔throughput time/value-added time Which formula would indicate that a fast-food restaurant was performing at, above, or below its benchmark?
• Time a resources is used/time a resource is available
• Throughput time/value-added time
• Output/input
• Actual output/standard output - ANSWER✔✔actual output/standard output In which organizational layout would one expect to see items arranged by type?
• Fixed
• Process
• Hybrid
• Product - ANSWER✔✔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?
• Statistical reduction control
• Process performance metrics
• Group technology
• Manufacturing technology - ANSWER✔✔group technology Which instrument would use an allocation process for space requirements in an industry scenario?
• From to matrix
• Block plan
• Relationship chart (REL)
• Rectilinear distance - ANSWER✔✔block plan What would be an organizations next step after it has revised or implemented new operations?
• Follow up to make sure the new operation resolves quality problems
• Reverse the order of the operation to determine that all workers know how to complete the operation
• Revise the order of the operation before putting it into service to ensure the order of the operation

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?

• ISO 9001 Standards
• ERP
• CRM
• Lean Systems - ANSWER✔✔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.
• It is a process that is only for support of maintenance
• It requires that all work items are sized the same
• It is a process that highlights the highest performance organization - 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?
• Push lowers cost due to overproduction
• Pull initiates quality control
• Pull eliminates excessive inventory
• Push moves the product in anticipation for demand
• Push enhances employee relations
• Pull develops additional products - 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? JIT Marketing:
• synchronizes produce demand with assembly
• focuses on producer driver quality
• simplifies inventory flow
• focuses on customer driven quality - ANSWER✔✔JIT marketing focuses on customer driven quality How does a just in time (JIT) system influence all functional areas within a company?
• Companies develop new ways to generate revenue
• Companies enhance workers ability to perform
• Companies workers demonstrate intrinsic value
• Companies are able to reduce waste
• Companies can participate when it is convenient - 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?
• Separate the cultures in the organization so there will be no conflicts
• Develop an incentive system to reward workers for their efforts
• Require workers to use free time to do quality control charting
• Ensure that workers receive multifunctional training - ANSWER✔✔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
• Tier two suppliers
• Tier three suppliers
• Tier four suppliers
• Tier five suppliers - ANSWER✔✔tier one suppliers Which role do third party logistics providers play in the supply chain?
• Tier three distributors
• Tier two distributors
• External distributors

• Internal distributors - ANSWER✔✔external distributors A company manufactures and distributes its own products. When should the company consider outsourcing distribution?
• When new federal regulations give the company a competitive advantage
• When the company distribution costs are the lowest in the industry
• When the company determines that distribution is no longer a core function
• When the company can no longer accurately forecast its transportation costs - ANSWER✔✔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?
• Horizontal integration
• Outsource Integration
• Insource integration
• Vertical integration - ANSWER✔✔vertical integration Which two areas should managers consider in order to adapt to the business dynamics affecting their company? (2)
• Their influence over future legislation and regulations
• Their control over internal operations
• Their influence and leverage over suppliers
• Their advertising costs - ANSWER✔✔their control over internal operations their advertising costs What are two strategic objectives for every member of the supply chain? (2)
• Increasing cost effectiveness
• Finding the best distribution location
• Reducing production and delivery times
• Increasing end-customer demand
• Becoming more efficient - ANSWER✔✔becoming more efficient reducing production and delivery times How does the status of overall customer satisfaction support supply chain objectives?
• It measures capacity utilization
• It measures efficiency
• It measures compliance
• It measures space requirements - ANSWER✔✔it measures efficency 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?
• SCAM
• SCOR
• RFEAU
• SCM - 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? 5, 6, 7, 8, 9, - ANSWER✔✔ 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 "percentage of the line items shipped on schedule" be used?
• Work in progress
• Finished goods

• Budget projections
• Compensation planning
• SWOT
• Product pricing - ANSWER✔✔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
• The actual market demand in the marking plan is required to make adjustments for other plans
• Research and development in the marketing plan drives new products
• Accurate cash flow objectives in the marketing plan are needed to achieve profitability levels - ANSWER✔✔the marketing plan provides insight into operations goals and activities for the year What is meant by "duration of the change"?
• The fiscal impact of the change in the strategic plan
• the length of time one expects to need the different level of capacity
• The size of the change needed
• The percentage of normal operating capacity - ANSWER✔✔the length of time one expects to need the different level of capacity Which type of aggregated plan is preferable when a company produces custom or special purpose equipment, one of a kind, or highly perishable products?
• A level aggregate plan
• A modified sales and operations plan
• A hybrid aggregate plan
• A chase aggregate plan - ANSWER✔✔a chase aggregated plan What are two common drawbacks of implementing an enterprise resource planning (ERP) solution?
• The cost savings and/or payback is impossible to measure in terms of bottom line
• It takes a long time to implement and see any benefits
• It must always be customized and too much customization may slow down projects
• It requires extensive, often complex training - 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?
• To identify new product demand
• To create demand for promised deliveries
• To control the production department
• To manage the demand for promised deliveries - ANSWER✔✔to identify new product demand 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 type of problem?
• FMS (Flexible manufacturing system)
• MRP (material req planning)
• CRP ( capacity req planning)
• ERP (enterprise resc planning) - ANSWER✔✔CRP (capacity requirements planning) Which statement is true about capacity requirements planning (CRP)?
• Production capacity is created for future production items
• Available capacity is compared to calculated workloads of relevant items
• each product item is individually address regardless of relevant holistic processes.
• Human capital adequacy is analyzed for given work centers and production items. - ANSWER✔✔production capacity is created for future production time Why is capacity requirements planning (CRP) important?
• It coordinates availability of materials for production processes
• It enables an assessment of employee production efficiency

• It creates a transparent view of lead time and overtime usage in work centers
• It provides the ability to compare available production capabilities - 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?
• Execution
• Feasibility analysis
• Planning
• Conception - ANSWER✔✔conception A company decides and makes plans to enter into a new market. Which project life cycle phase does this strategy relate to?
• Conception
• Planning
• Execution
• Feasibility analysis - ANSWER✔✔feasibility analysis