- clex
- May 2, 2024
Welcome to the Operations Management WGU C215 OA: Pre-Assessment Q&A. Here, we’ll thoroughly explore each question from the Pre-Assessment and offer you the right answers. Our goal is to help you prepare for the objective assessment and address any uncertainties you may have about areas where you feel less confident.
Pre Assessment of Operations Management WGU C215 OA consists of 70 questions and you will be given 2 hours to answer all the questions and obtain 70% or more marks to succeed.
Without further ado, let’s discuss the pre-A questions and answers. Happy learning!!
Question 01
A Fitness for use
B Support services
C Value for price paid
D Psychological criteria
Correct answer:
A. Fitness for use
Description:
This definition of quality assesses how effectively a product meets its intended purpose or function. It emphasizes the practical aspect of quality, focusing on the product's ability to satisfy customer needs and expectations. Options B, C, and D refer to other aspects or dimensions of quality, such as customer support, value proposition, and psychological factors, respectively.
Question 02
A Statistical quality control charts
B Fitness quality for use
C 14 points for quality improvement
D Product design quality
Correct answer:
C. 14 points for quality improvement
Description:
The right choice is definitely C: bagging 14 points for quality enhancement. This nifty method, pioneered by the one and only W. Edwards Deming, shines a spotlight on management's pivotal role in boosting quality standards within the organization. It lays down a blueprint of principles and directives aimed at reaching the pinnacle of quality prowess, with a sharp focus on customer satisfaction, perpetual refinement, and active staff engagement. While options A, B, and D toss around other quality management strategies, they fail to home in on the crux: management's direct accountability for quality enhancement
Question 03
A ISO 1400
B ISO 9002
C ISO 9001
D ISO 9000
Correct answer:
D. ISO 9000
Description:
ISO 9000 stands tall as a collection of global standards and directives, rolled out by the International Organization for Standardization (ISO), mapping out the core principles and methodologies of quality management. It serves as a compass for organizations, offering a roadmap to construct robust quality management systems that uphold both customer expectations and regulatory mandates. While options A, B, and C zoom in on individual ISO standards nestled within the expansive ISO 9000 series, they merely scratch the surface of the comprehensive array of standards and guidelines offered.
Question 04
A Scatter diagram
B Control chart
C Flowchart
D Checklist
Correct answer:
D. Checklist
Description:
A control chart emerges as a stalwart quality instrument, wielding its power to oversee and chart the trajectory of process performance across time, as data points find their home on a graph. Its keen eye detects variations within a process, unfurling any trends or patterns that hint at the presence of defects. With control charts in hand, the company can scrutinize defect occurrences, zeroing in on the culprit responsible for hiccups in their shoe manufacturing journey. Option D, a checklist, plays a crucial role in systematically recording and verifying completed tasks or items. However, when it comes to pinpointing and dissecting defects over time, it may not match the prowess of a control chart.
Question 05
A Checklist
B Flowchart
C Control chart
D Scatter diagram
Correct answer:
C. Control chart
Description:
A control chart reigns supreme as the quintessential quality control instrument for monitoring the present state or final outcome of a process. It unfurls the tapestry of process performance across time, offering a window into variations and trends within the output. This pivotal tool aids in gauging whether the process remains within the confines of control limits and aligns with established quality benchmarks. While options A, B, and D each wield their own utility in distinct scenarios — a checklist for task completion verification, a flowchart for visualizing process flow, and a scatter diagram for dissecting variable relationships — none mirror the focused lens of a control chart in monitoring process status or outcomes.
Question 06
A Baseline for managing quality process; investment in preventative costs; budgeting
B Enhance competition; understand consumer preferences; maintain communication with operations
C Review and recommend product changes; satisfy customer needs; open communication
D Reward employees; motivate staff performance; manage operations planned changes
Correct answer:
B. Enhance competition; understand consumer preferences; maintain communication with operations
Description:
Marketing emerges as a linchpin in the total quality management (TQM) journey, orchestrating a symphony of competition by fostering product differentiation and brand identity. It delves deep into the psyche of consumers, unraveling their preferences to synchronize product offerings with market demand. Moreover, marketing serves as the bridge between operations and customers, ensuring seamless communication to align products precisely with customer expectations. While options A, C, and D each spotlight different facets — from managing quality processes and budgets to enhancing product changes and customer satisfaction, and even motivating employees and overseeing operations — they fail to encapsulate the pivotal role that marketing plays in the TQM ecosystem.
Question 07
A To satisfy customer needs
B To enhance management software
C To reward people rather than teams
D To ensure profit from product changes
Correct answer:
A. To satisfy customer needs
Description:
At the heart of total quality management (TQM) lies a unifying principle: the unwavering commitment to fulfilling customer needs. TQM champions a customer-centric philosophy, where every facet of the organization, spanning production, marketing, and management, harmonizes to not only meet but surpass customer expectations. While options B, C, and D touch upon various organizational functions, they miss the mark on capturing the quintessential essence of TQM, which revolves around the paramount goal of ensuring customer satisfaction.
Question 08
A Mean
B Range
C Standard deviation
D Variable
Correct answer:
A. Mean
Description:
The correct choice is indeed A) Mean. This concept of variation zeroes in on the central tendency of a dataset, a role impeccably fulfilled by the mean. Also dubbed as the average, the mean is derived by summing up all data values and dividing the total by the number of values. It serves as a beacon, indicating the central point around which the data gravitates. In contrast, options B) Range, C) Standard deviation, and D) Variable are metrics of dispersion or variability within the dataset, deviating from the core focus of measuring central tendency. Hence, option A stands as the apt selection for the concept of variation that gauges the central tendency of a dataset.
Question 09
A. A computer virus was found in the system.
B. Out-of-control signals were found in the process.
C. Human resources found an operator was at fault.
D. Equipment was found to be out of control.
Correct answer:
B. Out-of-control signals were found in the process.
Description:
The correct choice is indeed B) Out-of-control signals were found in the process. Assignable causes of variation signal the presence of out-of-control signals within the process. These signals hint at something irregular or non-random transpiring, which could impact the quality or efficacy of the process. Conversely, options A), C), and D) delineate particular events or discoveries that might contribute to variation but don't directly signify the presence of out-of-control signals within the process itself. Hence, option B emerges as the fitting selection for what assignable causes of variation indicate.
Question 10
A The most common measurement process
B How close one is to a target and how consistent one is with the average performance
C What a process is capable of and how long it will take to conclude
D Parts per million on the capability index
Correct answer:
B. How close one is to a target and how consistent one is with the average performance
Description:
The accurate choice is indeed B) How close one is to a target and how consistent one is with the average performance. Cpk, a vital capability index, gauges the proximity of a process to its target value and its consistency with average performance. This index offers valuable insights into the process's efficacy in meeting specifications and manufacturing products within tolerance thresholds. Conversely, options A), C), and D) delineate distinct aspects or measurements that do not directly correlate with what Cpk evaluates. Hence, option B stands as the precise choice for the continuous improvement method that Cpk measures.
Question 11
A Technical tools
B People involvement
C Job design
D Facility location
Correct answer:
A. Technical tools / B. People involvement
Description:
The accurate choices are indeed A) Technical tools and B) People involvement. Two pivotal aspects of Six Sigma methodology encompass the utilization of technical tools and methodologies for enhancing processes and the active engagement of individuals within the organization. Technical tools encompass statistical methods, problem-solving techniques, and data-driven approaches utilized to scrutinize processes and pinpoint areas for improvement. People involvement underscores the significance of empowering employees, nurturing a culture of ongoing improvement, and promoting collaboration and teamwork across various organizational levels. Conversely, options C) Job design and D) Facility location typically aren't considered central to the Six Sigma methodology. Hence, options A and B stand as the correct choices for critical aspects of Six Sigma.
Question 12
A Screen patients and schedule follow-up appointments for those who have the most serious injuries
B Screen patients and fast-track those with minor ailments
C Screen patients and send the last 25 to another facility
D See each patient in the order in which they arrived
Correct answer:
B. Screen patients and fast-track those with minor ailments
Description:
To tackle customer frustrations regarding extended waiting periods in emergency rooms, certain facilities implement the strategy of triaging patients and expediting the treatment of those with minor ailments. This method prioritizes patients according to the seriousness of their condition, enabling individuals with less critical needs to receive swift attention and thereby minimizing overall waiting times. Through the effective allocation of resources and optimization of the treatment workflow, emergency rooms can elevate patient satisfaction levels and deliver timely care to those requiring assistance.
Question 13
A Closeness to manufacturing facilities
B Proximity to customers
C Warehouse storage
D Quality-of-life issues
Correct answer:
B. Proximity to customers / D. Quality-of-life
Description:
The right choices are B) Customer Proximity and D) Quality-of-life matters. When deciding on a service location, two crucial factors to weigh are the closeness to customers, ensuring easy access and prompt service, and quality-of-life concerns, encompassing skilled labor availability, cost of living, and general living standards in the vicinity. Proximity to manufacturing plants (A) and warehouse storage (C) are more pertinent to manufacturing and logistics endeavors rather than service location determinations. Hence, options B and D stand out as the apt selections for elements impacting a service location verdict.
Question 14
A Next to restaurants
B Next to a public school
C Next to other medical facilities
D Next to a baseball stadium
Correct answer:
C. Next to other medical facilities
Description:
The right answer is C) Adjacent to other medical facilities. This spot proves optimal for a hospital due to its convenient access to specialized medical resources, fostering collaboration with fellow healthcare providers, and fostering a medical district or hub, thereby elevating the overall standard of care. Conversely, options A) Near restaurants, B) Close to a public school, and D) Adjacent to a baseball stadium are less fitting for a hospital, lacking the requisite infrastructure or proximity to essential medical resources essential for healthcare services. Hence, option C emerges as the prime pick for an ideal hospital location.
Question 15
A Production capacity
B Software development
C Capacity planning
D Current economic conditions
Correct answer:
C. Capacity planning
Description:
The correct choice is C) Capacity planning. Capacity planning assists an organization in pinpointing and strategizing the steps required to fulfill present and future customer demands by evaluating and aligning production or service capabilities with customer requisites. It entails scrutinizing existing capacity levels, forecasting forthcoming demand, and determining the resources essential for efficiently meeting that demand. Conversely, options A) Production capacity, B) Software development, and D) Current economic conditions may impact an organization's ability to satisfy customer demands, but they do not specifically focus on identifying and planning the actions necessary to do so. Hence, option C stands as the apt selection for what aids an organization in identifying and planning the actions necessary to address current and future customer demands.
Question 16
A Design capacity
B Effective capacity
C Capacity focus
D Capacity utilization
Correct answer:
D. Capacity utilization
Description:
The accurate choice is D) Capacity utilization. Option D is used to measure how much capacity a company is utilizing. Capacity utilization is a critical metric in capacity planning that reveals the extent to which a company uses its resources to satisfy production or service demands. On the other hand, options A, B, and C are specific to capacity planning, but they do not measure the extent to which a company is using its capacity. Therefore, D is the best option for the capacity planning measurement that measures how much capacity a company is using.
Question 17
A An effective capacity is lower than design capacity.
B An effective capacity is a permanent measure used to achieve design capacity.
C An effective capacity is a temporary measure used to achieve design capacity.
D An effective capacity maintains a minimum output rate under normal conditions.
Correct answer:
A. An effective capacity is lower than design capacity. / B. An effective capacity is a permanent measure used to achieve design capacity.
Description:
Statement A: True. Effective capacity indeed refers to the maximum achievable output of a system under normal operating conditions, accounting for factors like downtime, maintenance, and process inefficiencies, which can lower it from the design capacity.
Statement B: True. Effective capacity represents a realistic measure of what can be consistently achieved over time, rather than being a temporary measure that fluctuates.
Both statements accurately capture aspects of effective capacity, making them both true.
Question 18
A At the minimum point of the cost curve
B At maximum capacity
C When the average unit cost is minimized
D When the total cost is minimized
Correct answer:
C. When the average unit cost is minimized
Description:
The accurate choice is C) When the average unit cost is minimized. It is when the cost per unit of output is optimized, i.e., the equilibrium between output level and production cost seem to have been achieved. At this point, the organization obtains its most optimal utility of resources, which in turn results in maximum productivity with the least possible costs. Conversely, alternatives A) At the minimum point of the cost curve, B) At maximum capacity, and D) When the total cost is minimized may not always indicate the most efficient operating level in terms of cost per unit of output. Thus, option C stands as the correct selection for when capacity measurement is at its best operating level.
Question 19
A Throughput time
B Proximity to sources of supply
C Building employee relations
D Site considerations
Correct answer:
B. Proximity to sources of supply / D. Site considerations
Description:
When conducting a location analysis, a firm should take into account two capacity measurement concepts: proximity to sources of supply (option B) and site considerations (option D).
Proximity to sources of supply holds significance as it directly affects transportation costs, lead times, and overall supply chain efficiency. Site considerations involve factors such as the availability of land, infrastructure, zoning regulations, and environmental conditions. Each of these plays a critical role in determining whether a business can operate effectively in a particular location.
Hence, options B and D are indeed correct choices when assessing capacity measurement concepts during a location analysis.
Question 20
A Proximity to customers
B Proximity to a community center
C Proximity to parks
D Proximity to labor
Correct answer:
A. Proximity to customers
Description:
The best choice is A) Proximity to customers. This is a crucial factor when deciding where to place a business relative to its main market area. Being close to your customers minimizes transportation costs, accelerates delivery times, and enhances accessibility for customers. These advantages are vital for effectively serving the needs and preferences of your customers.
While being near a community center, parks, or labor sources as indicated in options B, C, and D might be beneficial under certain circumstances, they do not impact the business’s connection to its primary market territory as significantly as proximity to customers. Therefore, option A is the most appropriate selection when considering a major factor that influences the location of a business near its primary market.
Question 21
A The load-distance model
B The transportation method
C The center-of-gravity approach
D The break-even analysis
Correct answer:
C. The center-of-gravity approach
Description:
To ascertain the ideal location for a new distribution center, the manufacturing company should employ the center-of-gravity approach (option C).
The center-of-gravity approach computes the central point of a distribution network by considering the locations of existing facilities and the associated weights, such as demand or transportation costs. Through this method, the company can pinpoint the location that minimizes overall transportation costs to multiple warehouses or stores.
Therefore, option C is indeed the correct choice for determining the optimal location for a new distribution center using the center-of-gravity approach.
Question 22
A Project process
B Line process
C Batch process
D Continuous process
Correct answer:
B. Line process / D. Continuous process
Description:
The correct choices are B) Line process and D) Continuous process. Both line processes and continuous processes involve repetitive operations. In a line process, products move sequentially from one workstation to the next along a fixed path, ensuring a continuous flow of production, typical in assembly lines. Continuous processes run without interruption, often utilizing specialized equipment and automated systems, prevalent in industries such as chemicals and utilities.
However, options A) Project process and C) Batch process do not involve repetitive processes. Project processes entail unique tasks with defined start and end dates, while batch processes produce discrete batches with distinct operations. Therefore, options B and D are correct for operations with repetitive processes.
Question 23
A Project process
B Line process
C Batch process
D Continuous process
Correct answer:
A. Project process / C. Batch process
Description:
While the project process (option A) corresponds well with the customized nature of body and engine repair and custom vehicle paint options, the line process (option B) isn't suitable. Line processes entail a standardized, linear flow of production, which doesn't accommodate the diverse and customized services offered by the shop. Similarly, the continuous process (option D) involves the uninterrupted production of identical products, which doesn't align with the varied and customized nature of automobile repair and painting services. Hence, options B and D are not appropriate for the operational processes of this collision shop.
Question 24
A Two stages operating independently
B The longest task in the process
C The point where production is evened out
D Multiple storage areas
Correct answer:
B The longest task in the process
Description:
The accurate answer is B) The longest task in the process. In a flowchart, a bottleneck denotes the point in the process where the longest task occurs, resulting in a slowdown or restriction in the overall flow of work. This longest task sets the maximum rate at which the process can operate, potentially causing delays or inefficiencies if not resolved.
Options A) Two stages operating independently, C) The point where production is evened out, and D) Multiple storage areas do not accurately define a bottleneck in a flowchart. Therefore, option B stands as the correct choice for identifying what constitutes a bottleneck in a flowchart.
Question 25
A Time a resource is used/time a resource is available
B Actual output/standard output
C Throughput time/value-added time
D Output/input
Correct answer:
C. Throughput time/value-added time
Description:
The correct answer is C) Throughput time divided by value-added time. This formula is used to calculate process velocity, a metric that evaluates the efficiency of a process. It measures this by comparing the total time taken to complete an output (throughput time) to the time genuinely spent enhancing the product’s value (value-added time). Other options such as A) Time a resource is used divided by time a resource is available, B) Actual output divided by standard output, and D) Output divided by input, although relevant in other contexts, do not directly assess process velocity. Hence, option C is the most appropriate choice for determining process velocity.
Question 26
A Time a resource is used/time a resource is available
B Actual output/standard output
C Throughput time/value-added time
D Output/input
Correct answer:
B. Actual output/standard output
Description:
The correct formula to use is "Actual output divided by standard output." This ratio measures the real-life output of a process against the expected output under perfect conditions, which helps in evaluating if a fast-food restaurant is achieving, exceeding, or not meeting its set benchmarks.
Option A: "Time a resource is used divided by time a resource is available" is about how efficiently a resource is utilized and does not measure performance against a preset standard.
Option C: "Throughput time divided by value-added time" focuses on the efficiency of the process itself, calculating how swiftly the process operates from start to finish relative to the time spent adding value.
Option D: "Output divided by input" provides a broad look at productivity but fails to compare the output to any specific standards required by the business.
Therefore, only option B, the actual output divided by the standard output, is specifically designed to assess whether the output level meets, surpasses, or falls below expected standards, making it essential for performance evaluation against benchmarks.
Question 27
A Hybrid
B Fixed
C Process
D Product
Correct answer:
C. Process
Description:
In a process layout, items are organized based on the type of process they undergo rather than by product type. This layout is ideal for environments where there's a variety of products, but similar processes are involved in their production.
Options A (Hybrid) and B (Fixed) don't specifically pertain to organizing items by type, while option D (Product) typically involves organizing items based on their specific product type, which differs from a process layout. Therefore, option C is the most fitting choice for items arranged by type.
Question 28
A Group technology
B Process performance metrics
C Manufacturing technology
D Statistical reduction control
Correct answer:
A. Group technology
Description:
Group technology, also known as cellular manufacturing, is indeed a hybrid layout that organizes workstations into groups or cells based on similar processes or functions. This layout enhances efficiency by minimizing material handling, enhancing production quality, and optimizing space utilization.
Options B, C, and D don't specifically tackle the challenges outlined in the scenario. Therefore, option A, Group technology, emerges as the most suitable choice for addressing the company's needs.
Question 29
A Block plan
B From-to matrix
C Relationship chart (REL)
D Rectilinear distance
Correct answer:
A. Block plan
Description:
In an industrial scenario, a block plan indeed serves as an instrument that employs an allocation process for space requirements. It facilitates the visualization and allocation of space within a facility or layout by representing areas as blocks or sections.
Options B, C, and D aren't specifically linked to space allocation processes in this context. Therefore, option A, Block plan, stands as the most fitting choice for addressing space requirements in an industry scenario.
Question 30
A Follow up to make sure the new operation resolves quality problems
B Reverse the order of the operation to determine that all workers know how to complete the operation
C Revise the order of the operation before putting it into service to ensure the order of the operation
D Conduct a final analysis of the existing operation one more time
Correct answer:
A. Follow up to make sure the new operation resolves quality problems
Description:
After revising or implementing new operations, the organization's next step typically involves following up to ensure that the new operation resolves any quality problems. This entails monitoring the performance of the revised or new operations to identify any issues or areas for improvement.
Option B is incorrect because reversing the order of the operation is not a standard practice after implementation. Option C is incorrect because revising the order of the operation before putting it into service suggests a lack of thorough planning prior to implementation. Option D is incorrect because conducting a final analysis of the existing operation again would not address the changes made during the revision or implementation process.
Therefore, option A is indeed the most appropriate next step for the organization.
Question 31
A They may have suggestions for improving the operation.
B They know how an operation has always been done with no need to change.
C They are experts in their field.
D They may resist training on new machines.
Correct answer:
A. They may have suggestions for improving the operation.
Description:
The accurate answer is indeed A) They may have suggestions for improving the operation. Designated employees can provide valuable insights and suggestions, leveraging their frontline experience to enhance efficiency and effectiveness in a methods analysis. Options B) They know how an operation has always been done, C) They are experts, and D) They may resist training on new machines, and don't fully capture the potential benefits. Therefore, option A underscores the significance of employee input in optimizing operations.
Question 32
A Performance time
B Observed time
C Normal time
D Standard time
Correct answer:
D. Standard time
Description:
The correct answer is indeed D) Standard time. Standard time signifies the predetermined duration for completing a task under optimal conditions, assuming the operator is working at a sustainable pace with the appropriate tools. This measure furnishes a consistent benchmark for evaluating performance and planning schedules.
Options A) Performance time, B) Observed time, and C) Normal time don't specifically consider the predefined conditions and standards necessary for accurate time measurement, making them less suitable for determining task duration.
Question 33
A Job entitlement
B Job enrichment
C Job rotation
D Job rating
Correct answer:
B. Job enrichment
Description:
The most accurate selection is indeed B) Job enrichment. Job enrichment involves giving employees more responsibilities and autonomy, particularly in planning and scheduling their tasks. This method helps decrease the monotony often associated with their roles. By implementing job enrichment, you aim to enhance job satisfaction and motivation through providing opportunities for personal growth and greater involvement in their work.
Options A) Job entitlement, C) Job rotation, and D) Job rating don't specifically concentrate on minimizing repetitiveness through empowering employees in planning and scheduling, making them less suitable choices.
Question 34
A Employee longevity
B Enhanced employee relations
C Labor specialization
D Lower operating cost
Correct answer:
C. Labor specialization
Description:
Labor specialization capitalizes on the benefits of employee proficiency by allocating specific tasks or roles to individuals according to their skills and expertise. This strategy allows employees to focus on areas where they are most skilled, enhancing both efficiency and productivity across the board.By dedicating workers to specific tasks, they become more adept and faster at completing them, which can significantly increase overall operational efficiency. This method not only boosts productivity but also helps in achieving higher quality in the work performed due to the increased skill level of the workers.
Options A) Employee longevity, B) Enhanced employee relations, and D) Lower operating cost don't directly address the recognition of employee proficiency through specialized roles, making them incorrect choices.
Question 35
A Forward scheduling
B Finite loading
C Infinite loading
D Backward scheduling
Correct answer:
A.. Forward scheduling
Description:
The correct answer is indeed A) Forward scheduling. Forward scheduling involves scheduling a job to start as soon as possible, regardless of its due date. This ensures timely completion of tasks and efficient allocation of resources.
Options B) Finite loading, C) Infinite loading, and D) Backward scheduling don't specifically refer to scheduling jobs to start immediately, making them incorrect choices.
Question 36
A Simply organized inventory
B Quality circles
C Respect for people
D Capacity utilization
Correct answer:
C. Respect for people
Description:
The correct answer is indeed C) Respect for people. just-in-time system is respect for people, following total quality management and JIT manufacturing. The principle represents the value attached to the employees towards empowerment in the teams and culturing the constant improvement in every aspect of the organization.
Options A) Simply organized inventory, B) Quality circles, and D) Capacity utilization are not the third fundamental element of the JIT system, rendering them incorrect choices.
Question 37
A By improving lighting
B By increasing simplicity
C By reducing waste
D By enhancing responsibility
Correct answer:
C. By reducing waste
Description:
The correct answer is indeed C) By reducing waste. Just-in-time (JIT) and lean systems add value by concentrating on reducing waste in processes, such as overproduction, excess inventory, waiting times, unnecessary transportation, unnecessary motion, and defects. This results in increased efficiency, cost reduction, improved quality, and shorter lead times.
Options A) By improving lighting, B) By increasing simplicity, and D) By enhancing responsibility are not directly related to the primary value proposition of JIT and lean systems, making them incorrect choices.
Question 38
A Lean systems
B Customer relationship management (CRM)
C Enterprise resource planning (ERP)
D ISO 9001 standards
Correct answer:
A Lean systems
Description:
The correct answer is indeed A) Lean systems. Lean systems adopt a total system approach to establish an efficient operation by incorporating principles such as just-in-time (JIT), total quality management (TQM), and continuous improvement. This approach concentrates on waste elimination, process optimization, and continuous enhancement of efficiency and quality.
Options B) Customer relationship management (CRM), C) Enterprise resource planning (ERP), and D) ISO 9001 standards are not directly linked to the integration of JIT, TQM, and continuous improvement, making them incorrect choices.
Question 39
A It requires that all work items are sized the same.
B It specifies the exact quantity of a product that needs to be produced.
C It is a process that is only for support or maintenance.
D It is a process that highlights the highest-performing organization.
Correct answer:
B. It specifies the exact quantity of a product that needs to be produced.
Description:
The correct answer is indeed B) It specifies the exact quantity of a product that needs to be produced. Kanban is the essence of the pull system and, in its total sense, serves as a signal that initiates production only when required. Hence, products are built in response to actual customer demands, not forecasts of demand. On the other hand, Kanban signals the amount of the product to be produced by this means, synchronizing production with the pace of the customer and helping to clear up overproduction or excess stock.
Options A), C), and D) are incorrect as they do not accurately depict the role of kanban in the pull system.
Question 40
A Push moves the product forward in anticipation for demand.
B Push lowers cost due to overproduction.
C Pull develops additional products.
D Pull eliminates excessive inventory.
E Push enhances employee relations.
F Pull initiates quality control.
Correct answer:
A. Push moves the product forward in anticipation for demand.
/
D. Pull eliminates excessive inventory.
Description:
The correct answers are indeed A) Push moves the product forward in anticipation for demand, and D) Pull eliminates excessive inventory.
In the push system, the production system is one in which products are pushed or propelled through the production system, depending on anticipation of demand derived from forecasts or the company's production schedules. In a pull-based system, however, it is one where production is undertaken only in response to the actual demand by customers and holds no risk of overproduction.
Options B), C), E), and F) are incorrect as they do not accurately depict the differences between push and pull processes.
Question 41
A JIT marketing focuses on producer-driven quality.
B JIT marketing simplifies inventory flow.
C JIT marketing focuses on customer-driven quality.
D JIT marketing synchronizes product demand with assembly.
Correct answer:
C. JIT marketing focuses on customer-driven quality.
Description:
The correct answers are A) Companies are able to reduce waste and B) Companies develop new ways to generate revenue.
The just-in-time (JIT) system has some benefits within a firm. For instance, in the company, it lowers the degree of waste that is capable of interrupting operations; at the same time, it increases efficiency and lowers the associated cost of irrelevance. More so, JIT encourages companies to be more inventive in ways of making money, such as offering the consumers products or services that are customized to suit them and moving with changes in the market.
Options C), D), and E) are incorrect, as none of them correctly mention what the impact of JIT is on all of the above functional areas in the operations of the company.
Question 42
A Companies are able to reduce waste.
B Companies develop new ways to generate revenue.
C Companies enhance workers’ promotion opportunities.
D Companies’ workers demonstrate intrinsic values.
E Companies can participate when it is convenient.
Correct answer:
A. Companies are able to reduce waste. / B. Companies develop new ways to generate revenue.
Description:
The correct answers are A) Ensuring multifunctional training of workers and D) Development of a stimulating system for rewarding workers for their efforts.
Under such just-in-time (JIT) processing conditions, management can facilitate employees' focus through preparation with the required capabilities from multifunctional training to ensure they are in a position of handling the tasks expertly. In addition, one important source of motivation to sustain high levels of productivity and quality is the encouragement of a system of incentives that identifies and rewards employees for what they contribute.
Options B) and C) are incorrect as they do not directly contribute to assisting employees' focus in a JIT environment.
Question 43
A Ensure that workers receive multifunctional training
B Separate the cultures in the organization so there will be no conflicts
C Require workers to use free time to do quality control charting
D Develop an incentive system to reward workers for their efforts
Correct answer:
A. Ensure that workers receive multifunctional training / D. Develop an incentive system to reward workers for their efforts
Description:
The correct answers are A) Ensure that workers receive multifunctional training and D) Develop an incentive system to reward workers for their efforts.
In a just-in-time (JIT) processing environment, management can support employees' focus by equipping them with the required skills through multifunctional training, enabling them to adeptly handle various tasks. Additionally, implementing an incentive system that recognizes and rewards employees for their contributions can serve as a significant motivator, encouraging them to sustain high levels of productivity and quality.
Options B) and C) are incorrect as they do not directly contribute to assisting employees' focus in a JIT environment.
Question 44
A Tier one suppliers
B Tier two suppliers
C Tier three suppliers
D Tier four suppliers
E Tier five suppliers
Correct answer:
A. Tier one suppliers
Description:
The correct answer is A) Tier one suppliers.
Tier one suppliers are those suppliers directly supplying materials or services to a processing and packaging plant. In this, the supplier is proximate to the production process, having direct and significant impact on quality and efficiency of plant operations.
Option B), C), D), and E) are wrong because all these represent suppliers that are further down the supply chain, and do not, therefore, make the supply of materials direct to the plant.
Question 45
A Internal distributors
B External distributors
C Tier two distributors
D Tier three distributors
Correct answer:
B. External distributors
Description:
The correct answer is B) External distributors.
Third-party logistics providers are elements of the supply chain. It's a reference to an independent company that is hired by another to take control of its logistic and distribution functions.
An option A that is out of place because third-party logistics providers do not support the internal and external operations. This also applies to C and D as they are related to each other at a different supplier level to the chain.
Question 46
A When the company can no longer accurately forecast its transportation costs
B When the company’s distribution costs are the lowest in the industry
C When the company determines that distribution is no longer a core function
D When new federal regulations give the company a competitive advantage
Correct answer:
C. When the company determines that distribution is no longer a core function
Description:
The correct answer is C) When the company determines that distribution is no longer a core function.
Outsourcing the distribution operation arises when a firm has clearly decided to stop the management of distribution activity as part of the core activity. It is at this point the company may better place its principal activities and allows partners from outside the company to process the distribution in a more cost-effective way.
Option A) pertains to transportation cost forecasting and does not directly relate to outsourcing distribution. Option B) emphasizes cost competitiveness, which may not always be the primary consideration for outsourcing. Option D) mentions federal regulations, which can influence distribution but does not directly address the core function aspect.
Question 47
A Vertical integration
B Horizontal integration
C Insource integration
D Outsource integration
Correct answer:
A. Vertical integration
Description:
The correct answer is A) Vertical integration.
Vertical integration measures the proportions of activities in the supply chain, from manufacturing to distribution, that are owned or controlled by the manufacturer. This includes activities from the sourcing of raw material through to manufacturing, distribution, and retail.
Option B: Horizontal integration tends to involve expansion by purchasing similar businesses at the same level of the value chain. Option C: Insourcing is simply bringing home activities or processes of a firm that it had sourced to others. Option D) Outsource integration is not a standard term in supply chain management.
Question 48
A Their control over internal operations
B Their influence and leverage over supplies
C Their influence over future legislation and regulations
D Their advertising costs
Correct answer:
A. Their control over internal operations / B. Their influence and leverage over supplies
Description:
Managers should indeed consider their control over internal operations (Option A) to ensure efficiency and effectiveness within the company. Additionally, focusing on their influence and leverage over supplies (Option B) is crucial for managing costs, maintaining quality, and ensuring a smooth supply chain. While Option C may be important for strategic planning, it's not directly related to adapting to business dynamics. Similarly, Option D, advertising costs, may factor into overall budgeting and strategy but is not directly related to adapting to business dynamics.
Question 49
A Increasing cost effectiveness
B Becoming more efficient
C Increasing end-customer demand
D Finding the best distribution location
E Reducing production and delivery times
Correct answer:
A. Increasing cost effectiveness / B. Becoming more efficient
Description:
Two strategic aims for each participant in the supply chain involve boosting cost efficiency (Choice A) to maximize resource utilization and cut down on costs while upholding quality, and improving efficiency (Choice B) to simplify processes, reduce wastage, and amplify productivity. Options C, D, and E could also hold significance in specific scenarios, yet they don't universally apply to every member of the supply chain.
Question 50
A It measures space requirements.
B It measures efficiency.
C It measures compliance.
D It measures capacity utilization.
Correct answer:
B. It measures efficiency.
Description:
The evaluation of overall customer satisfaction plays a pivotal role in advancing supply chain goals by gauging effectiveness (Option B). Customer satisfaction serves as a barometer for assessing the supply chain's performance in meeting customer demands, ensuring timely product delivery, and delivering exceptional service. Although space requirements (Option A), compliance (Option C), and capacity utilization (Option D) hold significance, they lack a direct correlation with customer satisfaction.
Question 51
A SCOR (Supply Chain Operations Reference)
B RFEAU (Reliability Flexibility Expenses and Asset Utilization)
C SCAM (Supply Chain Accreditation Model)
D SCM (Supply Chain Metrics)
Correct answer:
A. SCOR (Supply Chain Operations Reference).
Description:
SCOR, or the Supply Chain Operations Reference, is a great tool for examining various aspects of supply chains such as their reliability, flexibility, costs, and the efficient use of assets. It serves more like a guidebook, aiding companies in enhancing the management of their supply chain operations. On the other hand, options B, C, and D aren't really designed for this kind of detailed supply chain analysis.
Question 52
Correct answer:
C. 7
Description:
To figure out how many weeks of supply you've got, you take the average inventory, divide it by the cost of goods sold, and then multiply the result by 52 (which is how many weeks there are in a year). So, in this case, it's like this: (1,200,000 / 8,400,000) * 52 = 7 weeks. Option C nails it because it gives the right number of weeks of supply based on the info we've got. Options A, B, D, and E? They're off the mark and don't show the correct calculation.
Question 53
A Work-in-progress
B Raw materials
C Finished goods
D Sold goods
Correct answer:
C Finished goods
Description:
Option C, Finished goods, is the correct answer. In inventory management, the percentage of line items shipped on schedule is a crucial metric applied to finished goods. This metric assesses the efficiency of the shipping process and guarantees that products reach customers as per the agreed-upon schedule. Options A, B, and D are incorrect as they do not pertain to the shipping of products to customers.
Question 54
A Service organizations must maintain work in progress types of inventory.
B Manufacturing organizations must maintain tangible inventory.
C “Manufacturing organizations must keep large amounts of product on hand at all times, regardless of demand.”
D Service organizations are concerned with managing idle time due to material and component shortages.
Correct answer:
B. Manufacturing organizations must maintain tangible inventory.
Description:
The correct answer is Option B. Inventory management in manufacturing organizations typically involves handling tangible inventory, including raw materials, work-in-progress items, and finished goods. On the other hand, service organizations often deal with intangible inventory, such as digital assets or service capacity. Option A is incorrect because both manufacturing and service organizations may maintain work-in-progress inventory. Option C is inaccurate as maintaining large inventory levels regardless of demand is not a universal practice for manufacturing organizations. Option D is also incorrect because service organizations primarily focus on managing service capacity and ensuring timely delivery of services rather than managing idle time due to material shortages.
Question 55
A All items are reviewed during the same time interval.
B Items are handled individually.
C Less inventory is needed to protect against stockouts.
D Inventory balances are updated after every transaction.
Correct answer:
A. All items are reviewed during the same time interval..
Description:
The correct answer is Option A. In a periodic review system, all items undergo review at the same time interval, simplifying inventory management and streamlining the review process. Option B is incorrect because items may not necessarily be individually handled in a periodic review system. Option C is inaccurate because the advantage of needing less inventory to guard against stockouts is not unique to periodic review systems. Option D is also incorrect because inventory balances are typically updated periodically rather than after every transaction in a periodic review system.
Question 56
Correct answer:
B. "20,500"
Description:
The correct answer is B. To find the average monthly net widget production demand, sum up the demands for each month and divide by the total number of months:
(20,000 + 17,000 + 19,000 + 21,000 + 22,000 + 24,000) / 6 = 123,000 / 6 = 20,500
So, the average monthly net widget production demand is 20,500 units. Option A is incorrect because it represents the demand for January only, not the average monthly demand. Options C and D are incorrect because they are not the calculated average based on the provided data.
Question 57
A Hire temporary workers
B Build new production facilities
C Subcontract a portion of production capacity
D Hire and train new full-time employees
Correct answer:
A. Hire temporary workers / C. Subcontract a portion of production capacity
Description:
Options A and C are the most effective strategies for the company to quickly address the surge in demand. Hiring temporary workers can significantly increase production capacity overnight without the long-term commitment required for full-time staff. Similarly, subcontracting part of the production workload allows the company to leverage external resources, thus meeting demand without the need for substantial capital investments or the time required to set up new facilities. On the other hand, Options B and D would demand more time and resources, rendering them less ideal for addressing the immediate spike in demand
Question 58
A Overtime results in a buildup of excess inventory.
B Overtime is not a long-term solution.
C Overtime is typically a 50% wage premium.
D Overtime decreases the labor cost per unit.
Correct answer:
B. Overtime is not a long-term solution.
/
C/ Overtime is typically a 50% wage premium.
Description:
Option B rightly points out a valid concern since relying on overtime may provide temporary relief but isn't a sustainable strategy for long-term capacity management. Similarly, Option C hits the mark, as overtime typically leads to higher labor costs due to premium wage rates, which may not fit within the company's budgetary limits or operational goals. Conversely, Options A and D miss the mark because overtime doesn't directly contribute to excess inventory accumulation and may not reduce labor costs per unit; in reality, it often drives them up due to the premium wages tied to overtime hours
Question 59
A It is more risky.
B It is time consuming.
C It negatively affects subcontracting.
D It negatively affects hiring and firing.
Correct answer:
A. It is more risky.
Description:
Depending too much on options like inventory and backorders over a prolonged period can indeed spell trouble for a company. Option A nails it because heavily relying on these methods can ramp up financial risk, leading to potential losses from overstocking or missed sales due to stockouts. Options B, C, and D miss the mark as they don't directly tackle the main worry of heightened risk linked to a prolonged dependence on demand-based options.
Question 60
A Budget projections
B “SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis”
C Product pricing
D Compensation planning
Correct answer:
A. Budget projections
Description:
A financial plan usually lays out budget projections, mapping out the anticipated revenues and expenses for a set duration. Option A nails it because these budget projections are crucial for keeping finances in check and preparing for upcoming expenses. Options B, C, and D miss the mark as they deal with other facets of business planning, like strategic analysis, pricing strategies, and human resource management, respectively.
Question 61
A The actual market demand in the marketing plan is required to make adjustments to other plans.
B Accurate cash flow objectives in the marketing plan are needed to achieve profitability levels.
C The marketing plan provides insight into operations goals and activities for the year.
D Research and development in the marketing plan drives new products.
Correct answer:
C. The marketing plan provides insight into operations goals and activities for the year.
Description:
The marketing plan is a pivotal tool in aggregate planning, providing essential forecasts of sales, product demand, and customer preferences. With this information, the company can align its production schedules, inventory levels, and resource allocation more effectively with market expectations. Option C is particularly accurate as it underscores the importance of the marketing plan in guiding the operational goals and activities for the year.Options A, B, and D miss the mark as they focus on different aspects of business planning, such as adjusting to market demand, financial objectives, and product development, respectively.
Question 62
A The length of time one expects to need the different level of capacity
B The size of the change needed
C The percentage of normal operating capacity
D The fiscal impact of the change on the strategic plan
Correct answer:
A. The length of time one expects to need the different level of capacity
Description:
The term 'duration of the change' refers to how long one expects to maintain the adjusted capacity level. This timeframe is essential for planning and executing changes within the operational framework. Option A nails the definition, while options B, C, and D touch on different aspects that aren't directly related to the specific concept of duration in this context.
Question 63
A. A level aggregate plan
B. A chase aggregate plan
C. A hybrid aggregate plan
D. A modified sales and operations plan
Correct answer:
B. A chase aggregate plan
Description:
The chase aggregate plan is the go-to strategy for handling variable demand and special products like custom equipment or perishable items. With this approach, production can flexibly adapt to changes in demand, ensuring that inventory levels stay balanced without unnecessary excess or shortages. Options A, C, and D don't directly speak to the dynamic demand challenges faced by custom or perishable products
Question 64
A It takes a long time to implement and to see any benefits.
B “It requires extensive, often complex, training.”
C The cost savings or payback is impossible to measure in terms of bottom line
D It must always be customized and too much customization may slow down projects.
Correct answer:
A. It takes a long time to implement and to see any benefits. / B. "It requires extensive, often complex, training."
Description:
When a company decides to implement an enterprise resource planning (ERP) solution, it often encounters several common challenges. These challenges primarily include prolonged implementation periods, which delay the realization of benefits, as well as the requirement for extensive and sometimes complex training to ensure all users can operate the system effectively. While options C and D might also be on the radar, they're not usually the top concerns when it comes to ERP implementation.
Question 65
A To manage the demand for promised deliveries
B To create demand for promised deliveries
C To identify new product demand
D To control the production department
Correct answer:
A To manage the demand for promised deliveries
Description:
The main reason the marketing department uses the master production schedule (MPS) is to keep track of the demand for products they've promised to deliver. It's like making sure the production team can keep up with what the marketing folks have promised to customers. Options B, C, and D don't quite hit the mark when it comes to why the marketing department relies on the MPS.
Question 66
A ERP (enterprise resource planning)
B CRP (capacity requirements planning)
C FMS (flexible manufacturing system)
D MRP (material requirements planning)
Correct answer:
D. MRP (material requirements planning)
Description:
The Material Requirements Planning (MRP) system is the go-to solution for addressing issues like late or incorrect deliveries. It acts as a superhero in inventory management, ensuring that all the necessary materials are available exactly when needed to keep production flowing smoothly. Options A, B, and C don't really fit the bill for fixing delivery problems.
Question 67
A Production capacity is created for future production items.
B Human capital adequacy is analyzed for given work centers and production items.
C Each product item is individually addressed regardless of relevant holistic processes.
D Available capacity is compared to calculated workloads of relevant items.
Correct answer:
D. Available capacity is compared to calculated workloads of relevant items.
Description:
Option D perfectly sums up what Capacity Requirements Planning (CRP) is all about. It's like the conductor of an orchestra, making sure each instrument plays its part without overwhelming the others. The other options just don't hit the right note when it comes to describing CRP.
Question 68
A It is identical to rough-cut capacity planning.
B It enables evaluation of work centers for critical usage.
C Its purpose is to maintain priorities.
D It determines the quantity requirements for materials.
Correct answer:
B. It enables evaluation of work centers for critical usage.
Description:
Option B correctly states that capacity requirements planning (CRP) enables the evaluation of work centers for critical usage. CRP aims to ensure that work centers are utilized optimally and that production schedules align with the available capacity of these centers. This involves analyzing the capacity of each work center to determine its ability to handle the workload effectively. Options A, C, and D do not accurately describe the purpose or function of CRP, making them incorrect.
Question 69
A Planning
B Conception
C Feasibility analysis
D Execution
Correct answer:
B. Conception
Description:
The accurate response is B: Conception. This stage revolves around recognizing the necessity for a project, often stemming from a perceived opportunity or a problem requiring resolution. Throughout conception, the project's initial concept is crafted and assessed to ascertain its feasibility and potential advantages. Options A, C, and D depict subsequent stages in the project life cycle, concentrating on planning, feasibility analysis, and execution, respectively.
Question 70
A Feasibility analysis
B Planning
C Conception
D Execution
Correct answer:
C. Conception
Description:
The accurate answer is C: Conception. This stage encompasses the initial idea generation and recognition of the need for a project. In this scenario, the company's decision to enter a new market represents the conceptualization of a new initiative or project. Options A, B, and D refer to subsequent phases in the project lifecycle, focusing on feasibility analysis, detailed planning, and project execution, respectively.