CERTIFICATION SCRIPT 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◍ 4 Types of Demand.
Answer: o Peako Seasonalo Unexpectedo Chase
◍ Ishikawa/ Fishbone Diagram.
Answer: Helps establish cause-and-effect by identifying factors that
contribute to outcomes or problems; the factors are categories as People,
Machines, Methods, Measurements, Materials, and Environment and
include intentional and unintentional consequences and influence quality
performance.Shows impact of various inputs into the results of a process.
◍ Material Requirements Planning (MRP).
Answer: Acomputerized information system used for planning and
managing inventory for dependent demand items. Inputs include: Master
schedule file, Bill of materials file, Inventory file. Deals with getting the
right amount of raw material to the right place at the right time to support
production. Systematically designed to plan for production and deliver
product. MRP is widely considered to stop when materials are received
◍ Logistics.
Answer: Managing the movement of materials, components and information
from point to point in the supply chain.
◍ Total Cost Formula.
Answer: TC = VC(x) + FCo VC = variable costo x = number of unitso FC =
fixed costs. Total Cost = variable cost * number of units plus fixed costs.
◍ ABC analysis.
Answer: Has been developed to determine which inventory items should
, receive the highest level of control. By multiplying the dollar value of each
item by its annual usage, a dollar usage value can be obtained. Dollar usage
follows the Pareto Principle in that frequently, only 20% of all the items
account for 80% of the total dollar usage, while the remaining items
frequently account for only 20% of the dollar usage. This principle leads to
the _____ classification, which is based on focusing efforts where the payoff
is highest
◍ Primary Constraints in a System.
Answer: Market (Demand),Process (throughput)Product (Supply)
◍ Lead time.
Answer: Amount of time it takes to plan, produce, and deliver a product
◍ Quality Circles.
Answer: A team from all levels who meet to discuss, analyze, and eliminate
quality issues using Deming's 14 points; a senior manager overseas their
progress and approves their changes.
◍ Perpetual Inventory System.
Answer: Perpetual Inventory System or Continuous Review system An
inventory system that continuously monitors of inventory levels, such as
using barcode scanners at grocery stores. Adv. Always have a good
inventory countDisadv. cost to maintain
◍ Performance.
Answer: Primary operating characteristics of a product.
◍ The goal of firms using the EOQ & EPQ model.
Answer: Minimize the total annual costs of ordering and holding inventory
by varying the order quantity.
◍ Safety Stock.
Answer: A level of inventory to protect against unexpected demand or
supplier delays as to keep overall production levels constant. (safety cushion
of inventory)
,◍ Pull system.
Answer: Moves materials through a system to work-stations as they are
needed. Daily builds are scheduled only when there are orders for the
products.
◍ Work-in-process (WIP).
Answer: These are partly finished parts, components, sub-assemblies, or
modules.
◍ Replacement parts inventory.
Answer: These are maintained to replace other parts in machinery or
equipment as those parts wear out
◍ Service Level.
Answer: The percentage of replenishment orders that are received before a
stock-out occurs; considers the probability of a stock-out vs the costs of
inventory to find the right percentage.
◍ Joseph
M. Juran.
Answer: 1950s "Cost of quality approach (lowering prevention costs)
Suggested Pareto Principle (80/20 rule) He defined quality as "fitness for
use", from the customer's perspective; he emphasized the need for
continuous improvement and stressed that quality must be built on 3 quality
elements: planning, control, and improvement. Emphasized management's
responsibility for ensuring quality.
◍ Dependent demand.
Answer: Usually demand for an item that is generated by a company's
production process.
◍ Six Sigma: Improve.
Answer: The current process is changed by addressing the root causes
identified to ________ process performance through simulations, or in
real-time through Design of Experiments (DOE). Often made through
kaizen teams.
, ◍ Dual Card Kanban.
Answer: The two-kanban system, which combines the C-kanban and the
P-kanban, is known as a dual-card kanban system. Its major advantage over
single-card kanban is that it allows greater control over production, as well
as over inventory, because both production and withdrawal of inventory are
directly connected to need.
◍ 3 Costs of Quality.
Answer: Failure cost Appraisal costPrevention Costs
◍ Quantity discount model.
Answer: A discount offered in price for ordering above a specified amount
◍ Control charts.
Answer: A graphical depiction of process outputs where the raw data is
plotted in real-time within upper control limits (UCL) and lower control
limits (LCL);This allows one to determine if a process is stable or trending
towards instability and take corrective action before variations result in
non-conforming products
◍ Revenue Sharing.
Answer: When 2+ companies partner and divides the profits received based
on an agreement between all parties involved.
◍ Chase Demand.
Answer: Demand that occurs when a company has to adjust production by
rates to match demand by varying the workforce and using overtime.
Companies vary the workforce by adding or reducing the number of
employees on duty at any given time. And they may choose to provide
overtime by asking workers to stay on the job beyond their normally
scheduled time.
◍ Check Sheets.
Answer: Used to record data points in real time at the site where the data is
generated; raw data is collected without interpretation and then depicted
using a different statistical tool.