Exam Prep | 100% Accurate Answers
1. What is the definition of expected value in operations management?
The average of all outcomes without considering their probabilities.
A weighted average of potential outcomes, where each outcome is
assigned a probability of occurrence.
The minimum outcome that can occur in a decision-making process.
The maximum possible outcome in a given scenario.
2. Describe how cell manufacturing enhances flexibility and responsiveness in
production.
Cell manufacturing limits production to a fixed schedule and reduces
variability.
Cell manufacturing requires extensive training for workers to adapt to
changes.
Cell manufacturing allows for quick adjustments to production
processes and better adaptation to changes in demand.
Cell manufacturing focuses solely on reducing costs without
considering flexibility.
3. What is the primary focus of Six Sigma in operations management?
Enhancing employee satisfaction
Reducing defects and improving quality
Lowering operational costs
Increasing production speed
,4. What are the primary activities involved in logistics within operations
management?
Conducting financial audits and assessments
Managing human resources and employee relations
Obtaining, producing, and distributing materials and products
Designing and implementing marketing strategies
5. A customer finds out that it had shipped defective products to customers
what kind or costs does this result In
Internal failure
Prevention
External failure
Appraisal
6. Factor rating method
The procedure for evaluating location alternatives based on distance
The technique used to compute the amount of goods that must be
sold just to cover costs.
The way to find other locations that may give lower load-distance
score by testing the locations at the center of gravity of the target
area.
The procedure that can be used to evaluate multiple alternative
locations based on a number of selected factors.
7. What is the primary purpose of Pareto Analysis in quality management?
To forecast future sales.
, To measure customer satisfaction levels.
To analyze production costs.
To identify quality problems based on their degree of importance.
8. Which of the following statements is TRUE regarding tier 1 suppliers?
Tier 1 suppliers are the primary suppliers to retailers.
Tier 1 suppliers are the starting point of a supply chain.
Tier 1 suppliers are the primary suppliers to manufacturers.
Tier 1 suppliers are the primary suppliers to tier 2 suppliers.
9. Describe the significance of measuring capacity utilization in operations
management.
Measuring capacity utilization assesses employee performance.
Measuring capacity utilization determines the total cost of production.
Measuring capacity utilization helps identify how efficiently
resources are being used.
Measuring capacity utilization evaluates customer satisfaction.
10. What is the purpose of the Malcolm Baldridge Award?
To award organizations for their financial performance.
To recognize organizations for demonstrating quality excellence
and establishing best practices.
To honor individuals for lifetime achievements in management.
To certify organizations in environmental sustainability.
, 11. What elements are included in aggregate plans within operations
management?
Sales forecasts, marketing strategies, and customer feedback.
Supplier contracts, transportation logistics, and quality control
measures.
Employee training programs, technology upgrades, and maintenance
schedules.
Budgeted levels of finished products, inventory, workforce size, and
production rates.
12. Describe how TQM relates to customer satisfaction in operations
management.
TQM does not consider customer feedback in its approach.
TQM focuses on defining quality through customer satisfaction and
emphasizes continuous improvement.
TQM is solely concerned with the efficiency of manufacturing
processes.
TQM prioritizes cost reduction over customer satisfaction.
13. What type of materials do Tier Three Suppliers deliver to Tier Two Suppliers
in the supply chain?
Components
Finished products
Packaging materials
Raw materials