Operations Management: Final Exam Questions and Answers, Exams of Total Quality Management (TQM)

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CORRECTC215 Operations Management PVDC Final

Exam Questions With 100% Precise Answers 2024-

2025 Updated Graded A+ (Actual Exam).

Which definition is used for quality, evaluates how well a product performs its intended function? - Precise answer Fitness for use 14 points for quality improvement - Precise answer Which total quality management (TQM) process was developed to stress management's responsibility for quality? ISO 9000 - Precise 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 - Precise answer A list of common defects and the number of observed occurrences of these defects. scatter diagram - Precise answer a plot of two variables showing whether they are related Control Chart - Precise answer A graph that shows whether a sample of data falls within the common or normal range of variation. mean - Precise answer A statistical measure of central tendency, or average, based on dividing a total by the number of individual cases. assignable causes of variation - Precise answer -Causes can be identified and eliminated -e.g. poor employee training, worn tool, machine needing repair common causes or random - Precise answer Stuff you cannot identify -Random causes that we cannot identify, unavoidable Cpk measures - Precise answer How close one is to a target and how consistent one is with the average performance. -How closely it measures

Six Sigma - Precise 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) - Precise answer a six sigma process that outlines the steps that should be followed to improve an existing business process define stage - Precise answer includes the voice of the customer and value stream Job Design - Precise 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 - Precise 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 - Precise answer -proximity to customers -Quality of life issues proximity to customers - Precise 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 - Precise 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 - Precise 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 - Precise answer facilities that are small, specialized, and focused on a narrow set of objectives. effective capacity - Precise answer

capacity measurement at the best operating level - Precise answer when the average unit cost is minimized center of gravity approach - Precise 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 - Precise 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 - Precise answer classic assembly line. A line process, a continuous process. Project Process - Precise 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 - Precise 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 - Precise 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 - Precise answer Throughput time/value-added time -How fast we are going Actual output/standard output - Precise 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 - Precise answer productivity formula

Throughput time/value-added time - Precise answer How long it takes from the raw materials to become finished goods. Process - Precise answer Each item goes through process Which total quality management (TQM) process was developed to stress management's responsibility for quality? - Precise answer 14 points for quality improvement Hybrid - Precise answer any mix of elements from a product layout and a process layout, to gain the advantages of both eg group technology standard time - Precise 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 - Precise answer How long it actually took observed time - Precise answer Actual time -The time measured from stopwatch infinite loading - Precise 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 - Precise 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 - Precise answer Begins with required delivery date and works in the reverse order to determine when each process step must be preformed.

Respect for people - Precise answer A 3rd element element of JIT that considers human resources as an essential part of the JIT philosophy. Reducing waste is achieved - Precise answer by Just in time and lean system Lean Systems - Precise answer systems that maximize productivity by reducing waste and delays. Not sacrificing productivity -JIT is a part of lean system

Kanban System - Precise 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? - Precise answer ISO 9000 ISO 9000 - Precise 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? - Precise answer checklist Which quality control tool should be used to monitor the current status or end result of a process? - Precise answer Flowchart Which group of keywords or phrases describes the crucial role that marketing plays in the total quality management (TQM) process? - Precise 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? - Precise answer To satisfy customer needs Which concept of variation measures the central tendency of a set of data?

• Precise answer mean What do assignable causes of variation indicate? - Precise answer Equipment was found out of control Which continuous improvement method does Cpk measure? - Precise 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? - Precise answer people involvement technical tools Which strategy is used by some emergency rooms to overcome customer frustrations about long waiting times? - Precise answer Screen patients and fast-track those with minor ailments Which two factors affect a service location decision? - Precise answer Proximity to customers Quality of life issues Which is a key factor of a location analysis for a service company? - Precise answer Proximity to customers What helps an organization identify and plan the actions necessary to meet current and future customer demands? - Precise answer capacity planning Which capacity planning measurement tells how much capacity a company is using? - Precise answer Capacity utilization Design Capacity - Precise answer The maximum output rate or service capacity an operation, process, or facility is designed for. -the maximum designed service capacity or output rate. Effective capacity - Precise 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 - Precise answer when the average unit cost is minimized conducting a location analysis - Precise answer -proximity to sources of supply -site consideration proximity to customers - Precise answer major factor in the decision to locate a business near its primary market territory Which two statements are true about effective capacity? - Precise 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? - Precise answer When the average unit cost is minimized Which two capacity measurement concepts should a firm consider when conducting a location analysis? - Precise 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? - Precise answer proximity to customers load-distance model - Precise 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? - Precise answer by using the load-distance model

Which two types of operations include repetitive processes? - Precise 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? - Precise answer batch process project process What is a bottleneck in a flowchart? - Precise answer The longest task in the process throughput time/value-added time - Precise answer Which formula would compute process velocity? Which formula would compute process velocity? - Precise answer (Throughput time) / (Value Added Time) Which formula would indicate that a fast-food restaurant was performing at, above, or below its benchmark? - Precise answer actual output/standard output process layout - Precise answer similar equipment and functions are grouped together In which organizational layout would one expect to see items arranged by type? - Precise answer process hybrid layout - Precise 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 - Precise 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 - Precise answer higher output rates, lower work-in-process inventories, less material handling, higher labor/equipment utilization, simple planning/control systems group technology - Precise 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? - Precise answer group technology block plan - Precise 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 - Precise answer The shortest distance between two points measured by using only north-south and east-west movements from-to matrix - Precise 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? - Precise answer block plan

What would be an organizations next step after it has revised or implemented new operations? - Precise 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? - Precise 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? - Precise answer standard time Which design work system minimizes repetitiveness in tasks by assigning employees the role of planning and scheduling? - Precise answer job enrichment labor specialization - Precise 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? - Precise answer labor specialization forward scheduling - Precise 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? - Precise answer forward scheduling just-in-time (JIT) system - Precise 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 - Precise answer 1. TQM

2. JIT manufacturing 3. respect for people Push vs. Pull - Precise 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? - Precise answer respect for people How do just in time (JIT) and lean systems add value? - Precise answer by reducing waste Enterprise Resource Planning (ERP) Systems - Precise 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? - Precise answer enterprise resource planning (ERP) Kanban System is a - Precise 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? - Precise 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? - Precise 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? - Precise answer JIT marketing focuses on customer driven quality How does a just in time (JIT) system influence all functional areas within a company? - Precise 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? - Precise answer -ensure that workers receive multifunctional training -develop an incentive system to reward workers for their efforts Supply Chain Management - Precise 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 - Precise 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? - Precise answer tier one suppliers External Distributors - Precise answer transport finished products to appropriate locations -third party logistics providers play in the supply chain Third-party logistics (3PL) provider - Precise 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? - Precise answer external distributors A company manufactures and distributes its own products. When should the company consider outsourcing distribution? - Precise answer when the company determines that distribution is no longer a core function verticle integration - Precise 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? - Precise answer vertical integration

Which two areas should managers consider in order to adapt to the business dynamics affecting their company? - Precise answer -their control over internal operations -their advertising costs What are two strategic objectives for every member of the supply chain? - Precise answer -becoming more efficient -reducing production and delivery times How does the status of overall customer satisfaction support supply chain objectives? - Precise answer it measures efficiency Supply Chain Operations Reference Model (SCOR) - Precise 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? - Precise 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? - Precise answer 7 percentage of line items shipped on schedule - Precise 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? - Precise answer finished goods How does inventory management differ for manufacturing organizations compared to service organizations? - Precise 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? - Precise 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? - Precise 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? - Precise 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? - Precise answer -overtime is not a long term solution -overtime is typically a 50% wage premium demand-based options - Precise 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? - Precise answer it is more risky Which element is part of a financial plan? - Precise answer budget projections Why is the marketing plan essential to the creation of the aggregate plan? - Precise answer the marketing plan provides insight into operations goals and activities for the year What is meant by "duration of the change"? - Precise answer the length of time one expects to need the different level of capacity chase aggregated plan - Precise 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? - Precise answer a chase aggregated plan What are two common drawbacks of implementing an enterprise resource planning (ERP) solution? - Precise 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? - Precise answer to identify new product demand Capacity Requirements Planning (CRP) - Precise 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? - Precise answer CRP (capacity requirements planning)

Which statement is true about capacity requirements planning (CRP)? - Precise answer production capacity is created for future production time Why is capacity requirements planning (CRP) important? - Precise 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? - Precise answer conception A company decides and makes plans to enter into a new market. Which project life cycle phase does this strategy relate to? - Precise answer feasibility analysis