WGU C215 OPERATIONS MANAGEMENT FINAL EXAM TEST QUESTIONS WITH 100% CORRECT ANSWERS NEW 2026 UPDATE Study Guide

WGU C215 OPERATIONS MANAGEMENT FINAL EXAM TEST QUESTIONS WITH 100% CORRECT ANSWERS NEW 2026 UPDATE Study Guide Total Quality Management (TQM) Philosophy - - 1. customer focus 2. continuous improvement 3. employee empowerment 4. use of quality tools 5. product design 6. process management 7. managing supplier quality Process Capability Index (Cpk) - -Basic function of Six Sigma. Measures the process potential and performance of processes. The higher the range of Cpk, the improved is the ability of the process to complete its necessities. Six Sigma - -A disciplined, data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process - from manufacturing to transactional and from product to service. Design Capacity - -The theoretical maximum output of a system in a given period under ideal conditions. Location Analysis - -proximity to customers, transportation, source of labor, community attitude, proximity to suppliers, and many other factors. The technique for determining location decisions. Line Processes - -A type of process used to produce a large volume of a standardized product. ■ Limited customization and high volume WGU C215 WGU C215 Batch Processes - -A type of process used to produce a small number of products in groups or batches based on customer orders or specifications. ■ High customization moderate volume Project Processes - -A type of process used to make a one-at-a-time product exactly to customer specifications. ■ Most custom and lowest volume Continuous Processes - -A type of process that operates continually to produce a high volume of a fully standardized product. - No customization and as high a volume as possible Bottleneck - -Longest task in the process. Flexible Manufacturing System (FMS) - -A type of automated system that combines the flexibility of intermittent operations with the efficiency of continuous operations. Output/Input Control - -A technique for monitoring the flow of jobs between work centers. Value-Added - -The net increase created during the transformation of inputs into final outputs. Hybrid Layouts - -Layouts that combine characteristics of process and product layouts. - Group technology layouts. - Cell technology layouts. - Grocery stores use hybrid layouts Relationship Chart (REL) - -Table that reflects opinions of managers with regard to the importance of having any two departments close together. Rectilinear Distance - -The shortest distance between two locations using north-south and east-west movements. From-To Matrix - -Table that gives the number of trips or units of product moved between any pair of departments. Block Plan - -Schematic showing the placement of resources in a facility. Mean Observed Times - -The average of the observation times for each of the work elements. WGU C215 WGU C215 Normal Time - -The mean observed time multiplied by the performance rating factor by the frequency of occurrence. Standard Time - -The length of time it should take a qualified worker using appropriate process and tools to complete a specific job, allowing time for personal fatigue and unavoidable delays. Just-in-Time (JIT) - -A philosophy designed to achieve high-volume production through elimination of waste and continuous improvement. Based on a "pull" system rather than a "push" system. The three elements are just-in-time manufacturing, total quality management, and respect for people. Kanban card - -A card that specifies the exact quantity of product that needs to be produced. Tier One Suppliers - -Supplies materials or services directly to the processing facility. These are the suppliers that put products in specific containers or packages. Internal Functions companies Tier Two Suppliers - -Directly supplies materials or services to a tier-one supplier in the supply chain. Suppliers of the specialty materials for the tier one suppliers to be able to produce the packaging necessary for different products. Think cardboard, plastic, glass, chemicals. Tier Three Suppliers - -Directly supplies materials or services to a tier two supplier in the supply chain. These are companies that extract raw materials. Oil, raw chemical materials, wood. Capacity Requirements Planning (CRP) - -Determines the labor and machine resources needed to fill the open and planned orders generated by the MRP. Basically, checking if there is enough work scheduled for operations Enterprise Resource Planning (ERP) - -Large software programs used for planning and coordinating all resources throughout the entire enterprise. WGU C215 WGU C215 Aggregate Plans - IN A BROAD SENSE - -Includes the budgeted levels of finished products, inventory, backlogs, workforce size, and aggregate production rate needed to support the marketing plan. Marketing Plan, TO, Operating and engineering Plans, TO, Start or revision of the strategic business plan. Third-Party Logistics (3PL) - -Businesses used to outsource elements of the company's distribution and fulfillment services. They typically specialize in integrated operation, warehousing and transportation services which can be scaled and customized to customers' needs based on market conditions, such as the demands and delivery service requirements for their products and materials. Supply Chain Operations Reference model (SCOR) - -the world's leading supply chain framework, linking business processes, performance metrics, practices and people skills into a unified structure. The goals are to increase the speed of system implementations, support organizational learning goals, and improve inventory turns. Project Life Cycle Phases - -Conception, Feasibility/Study analysis, Planning, Execution, Termination Master Production Schedule (MPS) - -A plan for individual commodities to be produced in each time period.It is usually linked to manufacturing where the plan indicates when and how much of each product will be demanded. It gives production, planning, purchasing, and top management the information needed to plan and control the manufacturing operation. Total Quality Management (TQM) - -The meaning of quality as defined by the customer. Advertising revenue model - -Provides users with information on services and products and provides an opportunity for suppliers to advertise Affiliate revenue model - -Companies receive a referral fee for directing business to an affiliate Appraisal cost - -The cost associated with uncovering defects Automated order entry systems - -A method using telephone models to send digital orders to suppliers. Backwards integration - -Owning or controlling sources of raw materials and components. Benchmarking - -Studying other companies business practices for comparison. WGU C215 WGU C215 Bullwhip effect - -Inaccurate or distorted demand information created in the supply chain. Business to Business commerce - -Businesses buying and selling to other businesses. Business to consumer commerce - -Businesses selling to individual consumers. Cause and effect diagrams - -A chart that identifies potential causes of particular quality problems. Checklist - -A list of common defects and the number of observed occurrences of each. Conformance to specifications - TQM - -how well a product or service meets the targets and tolerances set by designers. Continuous improvement - -A philosophy of never-ending improvement. Control charts - -Charts used to evaluate whether a process is operating within expectations. Crossdocking - -Eliminates storage and order picking functions of a distribution warehouse. Customer defined quality - -an integrated effort designed to improve quality performance at every level of the organization. Deming Prize - -Japanese award for companies to recognize efforts in quality improvement. Distribution management - -Responsible for the movement of material from the manufacturer to the customer. Distribution warehouse - -Used for short term storage, consolidation, and product mixing. Distributor crossdocking - -the receiving and consolidating of inbound products from different vendors into a multi-SKU pallet. E-commerce - -Using the internet and web to do business. E-distributors - -Independently owned net marketplaces having catalogs representing thousands of suppliers and designed for spot purchases. E-purchasing - -Companies that connect onlone MRO suppliers to businesses that pay fees to join the market, usually for long term contractual purchasing. WGU C215 WGU C215 Early supplier involment (ESI) - -Involvement of critical suppliers in new product design. Electronic data interchange (EDI) - -A form of computer to computer communications that enables sharing business documents. Electronic requests for quotes (eRFQs) - -An electronic request for a quote on goods and services. Electronic storefront - -online catalogs of products made available to the general public by a single supplier Exchanges - -Marketplaces that focus on spot requirements of larger firms in a single industry External Failure costs - -Costs associated with failures that occur at the customer site. Extranets - -intranets that are linked to the internet so that suppliers and customers can be included in the system. Fitness for use - TQM - -How well the product performs its intended purpose. Flowchart - -A schematic of the sequence of steps involved in a process. Forward integration - -Owning or controlling the channels of distributions General warehouse - -used for long term storage Green supply chain management - -Focucses on the role of the supply chain with regard to its impact on the environment. Histogram - -A chart that shows frequency distribution of observed values of a variable. Incoming inspection - -verifies the quality of incoming goods Industry consortia - -Industry owned markets for purchase of direct inputs from limited number of suppliers. Insourced - -processes and activities completed in house Internal failure costs - -costs associated with discovering poor quality product before it reaches customers. Intranets - -networks internal to the organization ISO 14000 - -Set of standards & certification focused on environmental responsiblity WGU C215 WGU C215 ISO 9000 - -Set of quality standards & certification indicating companies have met that standard. Kaizen - -Japanese term for continuous improvement through learning and problem solving. Logistics - -Obtaining, producing an distributing materials and products. Malcolm Baldridge Award - -Award for demonstrating quality excellence and establishing best practices. Manufacturing crossdocking - -receiving and consolidating inbound supplies and materials for JIT manufacturing. Net Marketplaces - -suppliers and buyers conduct trade in a single internet based environment. Outsourced - -Processes/activities completed by suppliers. Pareto Analysis - -A technique used to identify quality problems based on their degree of importance. Partnering - -A process of developing long term relationships with a supplier based on trust, shared vision, and shared information, and shared risk. Plan-do-study-act (PDSA) cycle - -a diagram that describes the actvities that need to be performed to incorporate continuous improvement. Postponement - -Strategy shifts production differentiation closer to the consumer by postponing final configuration Prevention costs - -Costs associated with preventing poor quality/defects from occurring. Price and availability - -Current prices and whether the quantity is available when needed. Psychological criteria - TQM - -way of defining quality, focuses on judgement of what constitutes product or service excellence. Purchase order - -legal document committing to buy goods and providing details of purchase. Quality at the source - -best to uncover problems at source and correct it. WGU C215 WGU C215 Quality Circle - -Team of volunteer production workers and supervisors who meet regularly to solve quality issue. Quality function deployment (QFD) - -tool to translate preferences of the customer into specific technical requirements. Radio frequency identificaion (RFID) - -unpowered microchips used to transmit encoded info through antennae Reliability - -probability of part, product or services will perform as intended. Requisition request - -indicates the need for an item. Retail crossdocking - -sorting product from multiple vendors onto outbound trucks headed for specific stores. Robust design - -A design that results in a product that can perform over a wide range of conditions. Sales revenue model - -a means of selling goods, information, or services directly to consumers. Scatter diagram - -Graphs that show how two variables relate. Sourcing strategy - -A plan indicating suppliers to be used when making purchases. Subscription revenue model - -a web site that charges a subscription fee for access to its contents and services. Supply Chain - -All the activities involved in delivering a finished product or service to customer Supply chain management (SCM) - -The speed at which product moves through a pipeline from the manufacturer to the customer. Coordinates and manages all the activities of the supply chain Management of the flow of materials from suppliers to customers in order to reduce overall cost and increase responsiveness to customers. Supply chain velocity - -The speed at which product moves through a pipeline from manufacturer to the customer. Support Serviecs - TQM - -Quality defined in terms of the support provided after the product services is purchased. WGU C215 WGU C215 Taguchi loss function - -costs of quality increase as a quadratic function as conformance values move away from target. Tier one suppliers - -Supplies materials directly to processing facility Tier three suppliers - -Directly supplies materials or services to a tier two supplier in the supply chain. Tier two suppliers - -directly supplies tier one suppliers Total quality management - -The meaning of quality as defined by the customer Transaction fee model - -A company receives a fee for executing a transaction Transportation crossdocking - -Consideration of LTL shipments to gain economics of scale. Value for price paid - TQM - -Quality defined in terms of consumer's perception of usefulness of service or product related to prices paid. Vertical integration - -A measure of how much of the supply chain is owned by the manufacturing company. Best Operating level - -the output volume that results in lowest average unit cost. Break even analysis - -used to compute the amount of goods that must be sold just to cover costs. Capacity - -maximum output rate that can be achieved by a facility. Capacity cushions - -additional capacity added to regular capacity requirements for greater flexibility. Capacity planning - -The process of establishing the output rate that can be achieved by a facility Capacity utilization - -Percentage measure of how well available capacity is being used. Decision tree - -Modeling tool used to evaluate independent decisions that must be made in sequence. Design capacity - -the maximum output rate that can be achieved under ideal conditions Diseconomies of scale - -A condition in which the cost of each additional unit made increases. WGU C215 WGU C215 Economies of scale - -A condition in which the cost of each additional unit made decreases. Effective capacity - -maximum output rate under normal conditions, lower than design capacity. The capacity a firm expects to achieve given its current operating constraints. Expected value - -a weighted average of chance events, where each chance event is given a probability of occurrence. Factor rating - Location Analysis - -a procedure that can be used to evaluate multiple alternative locations based on a number of selected factors. Focused factories - -Facilities that are small specialized and focused on narrow set of objectives. Basically, a large facility that is divided into smaller specialized facilities that have separate operations, competitive priorities, technology, and workforce Globalization - Location Analysis - -the process of locating facilities around the world. This is all about the costs of labor and outsourcing making labor more competitive. Also, the fact that other cultures have different value systems that need to be understood and leveraged to make the business successful. Load-distance model - Location Analysis - -a procedure for evaluating location alternatives based on distance. Rectilinear distance. - -The shortest distance between two points measured by using only north-south and east-west movements Beliefs defining JIT philosophy - -Operations, simplicity, continuous improvement, visibility, and flexibility. Bottom-round management - -consensus management by committees or teams. Broad view of JIT - -philosophy that encompasses the entire organization Broad view of the organization - -tasks and procedures are important only if they meet goals. Cell manufacturing - -Placement of dissimilar machines and equipment together to produce a family of products with similar requirements. External setups - -can be performed while the machine is still running WGU C215 WGU C215 Flexible - -A company can quickly adapt to changing customer needs. Jidoka - -Authority given to workers to stop production line if quality problems are detected. JIT system - -Three elements JIT manufacturing, TQM, and respect for people Just-in-time philosophy - -Right quantity, right place, right time JIT manufacturing - -the element of JIT that focuses on production to achieve value added manufacturing. Pull system. Kanban Production. Small lot sizes and quick set-ups. Uniform Plant Loading. Flexible Resources. Facility Layout. Multifunction workers - -Capable of performing more than one job Poka-yoke - -Foolproof devices or mechanisms that prevent defects from occuring. Production cards - -A Kanban card that authorizes production Pull system - -JIT system based on a pull rather than a push system. Respect for people - -An element of JIT that considers human resources as an essential part of the philosophy Setup costs - -Costs incurred when setting up production equipment Simplicity - -The simpler a solution the better it is. Single source suppliers - -Suppliers that supply an entire family of parts to a manufacturer. Small lot production - -The ability to produce small quantities of products Types of waste - -Material, energy, time and space Uniform plant loading - -A constant production plan for a facility with a given planning horizon. Visible - -Problems must be visible to be identified and solved. Waste - -Anything that does not add value WGU C215 WGU C215 Withdrawal Cards - -A Kanban card that authorizes withdrawal of material Automated order entry system - -A method using telephone models to send digital orders to suppliers Backward integration - -Owning or controlling the source of raw materials and components subcontracting - -sending production work outside to another manufacturer or service provider Forecasting Capacity - -Used in Capacity Planning. It is the forecasts of future demand. Long-term investment demand needs Short-term demand needs. Strategic Implications of Capacity Planning - -strategic partnerships where the terms of the partnerships (either joint projects, supplier relationships, subcontracting relationships, etc.) require supply chain information sharing. a statement of long-range strategy and revenue, cost, and profit objectives. Capacity Planning Alternatives. Do Nothing. - -- Subcontracting during times of excess demand requirements. - Overtime requirements. Capacity Planning Alternatives. Expand Small Now. - -Risk/benefit analysis indicating that high future demand forecasts having large std deviations. Indicators that competitors expanding capacity in excess of what future demand forecasts indicate. Capacity Planning Alternatives. Expand Large Now. - -Indications that competitor capacity investments not sufficient to meet foretasted future demand. Decision Tree Chance events - -These are the probabilistic chances that different environments materialize after a decision has been made. A chance node is a branch in the tree which represents a family of possible outcomes which are not under the control (or are only partly under the control) of the decision maker. Probabilities: Probabilities are assigned for each possible outcome of a chance node. WGU C215 WGU C215 Decision Tree - Decision Points - Outcomes - -Costs associated from the decisions that are made from a sequence of decision alternatives, and the resulting outcomes that happen as a result of the decision tree. Location Analysis Quality of Life - -From the perspective of the employees, will the area being considered going to have adequate or good quality of life in terms of like, entertainment prospects, climate, good schools, crime rates, etc Location Analysis - Making Location Decisions - -Step 1 - Identify Dominant Location Factors. Step 2 - Develop Location Alternatives. Step 3 - Evaluate alternative locations per location factor weighting. Center of Gravity Approach - Location Analysis - -Minimizing the distance of the heaviest loads in order to reduce transportation costs of the heaviest loads. Transportation Method - Location Analysis - -Software designed to find optimal locations based off of many factors at once. Intermittent Operations - Process Selection - -Specialty products or services that require a lot of time and effort to produce, think a custom home. Project Process - Think Custom Homes. Batch Processes - Think College Classes. Repetitive Processes - -Standardized product and high volume. Line Processes - Think Assembly lines Continuous Processes - Think oil refineries or water purification plants. Production FlowCharts - -Squares - Stages. Triangles - Signal a decision. Process Flowcharts - -Squares = interactions with customers. Triangles = Situations customers must make decisions. Throughput - Process Performance Metrics - -Standard time it takes for a product to move through the entire system in question. Process velocity - Process Performance Metrics - -throughput/value added time value added time = time spent working on the product. Excludes time products spend between stages. Process velocity = 1 is a system that is always working on the products in ways that add value ( A perfect system, practically impossible). WGU C215 WGU C215 Productivity - Process Performance Metrics - -output/input How well is the company converting its inputs into value adding products. Utilization - Process Performance Metrics - -Time a resource is used/time a resource is available. This is specifically to understand how much of a particular resource is being used vs how much time a resource is available to be used. Efficiency - Process Performance Metrics - -Actual output/standard output To better understand how close a particular process is to what the company expects. Process Layouts - Facility Layouts - -Resources grouped based on process. Process layouts arrange items by type. Product Layouts - -Resources arranged in a 'straight-line' to promote efficient production of the end product. Think Chipotle. Fixed Position layout - -These are for large products that cannot be moved, like bridges, dams, and i think even skyscrapers could get put here. Labor must be brought to the product to produce it. 3 steps to designing a process layout - -1- Gather Material information 2- Develop a block plan 3- Develop a detailed layout Internal functions - Supply Chain - -Processing and packaging facilities External distributors - Supply Chain - -These are the grocery stores and big box stores we as customers are familiar interacting with. JIT Effects the entire Organization - -Accounting. Marketing. Finance. Engineering. Information Systems (IS). Infinite Loading - Scheduling - -Used to identify the resources needed to complete the proposed work load of a job WGU C215 WGU C215 Finite Loading - Scheduling - -This is used in addition to the infinite loading schedule to understand what available capacity can be utilized to cover the needs in the cases of under or over capacity demands on various resources Forward Scheduling - Scheduling - -schedule that determines the earliest possible completion date for a job. Scheduling the job to start immediately. Backward Scheduling - Scheduling - -Shows how late the job can be started and still finished on time. Monitoring workflow - Scheduling - -Provides insight to clarify any potential problems in a work center Theory of Constraints - Scheduling - -This is a focus on constraints in order to improve the effectiveness of a system. TOC procedure - ID system bottleneck exploit bottlenecks Marketing Plan - Aggregate Planning - -Identifying the sales needed to achieve profitability levels, growth rate targets, ROI that will be stated in the Strategic Business Plan. New Product demand insights - REMEMBER THIS Aggregate Plan - Aggregate Planning - -More simplified and high level 'product' that represents a family of products the company is going to produce. This does come from the marketing plan, err well I guess the information necessary to figure out what the needed production rate comes from the marketing plan. Necessary workforce size to accomplish the production rate. Financial Plan - Aggregate Planning - -Figures out the most effective sources of funds for investment Engineering Plan - Aggregate Planning - -Research and Development - Product Design. Level Aggregate Plan - Aggregate Planning - -Small variance in labor force. Causes some inventory buildup WGU C215 WGU C215 Chase Aggregate Plan - Aggregate Planning - -Produces exactly what is needed to satisfy demand during each period. May require constant changes in workforce. Hybrid Aggregate Plan - -a planning approach that uses a combination of level and chase approaches while developing the aggregate plan. Think Assemble-to-order Demand Based Options - Aggregate Planning Options - -a group of options that respond to demand fluctuations through the use of inventory or back orders, or by shifting the demand pattern Capacity Based Options - -a group of options that allow the firm to change its current operating capacity. Overtime, Under-time, Subcontracting, Hiring and Firing. Aggregate Demand Planning Steps - -Step 1 - ID the aggregate plan that matches the company objectives. Level, Chase, Or Hybrid. Step 2 - Determine aggregate production rate. Step 3 - Calculate size of workforce. Step 4 - Test the production Plan. Step 5 -Evaluate the plans performance. 1st Generation ERP - Enterprise Resource Planning. - -These were interface software's that managed routine activities These were also designed for internal purposes only, not to support supply chain 2nd Generation ERP - Enterprise Resource Planning. - -These were designed to help with the decision-making processes necessary to manage company supply chains. Basically, answering the question of whether to do business with a supplier or customer with the ERP software answering the question of how best to do business with them. SCM and ERP software's work together Benefits of ERP - Enterprise Resource Planning - -Operational - Improve inadequate business performance. Technological - Business process integration. Tangible - Reduction of staff. Intangible - Improved visibility of enterprise data. WGU C215 Material Requirements Planning (MRP) Overview - -Is making sure there are enough resources at the right times to meet production requirements Bill of Material - BOM - -Generated by the MRP, because it will let the operators know how much and when materials will be needed Independent Demand - -Demand for the products that the company produces. Dependent Demand - -The resulting demand for the materials that make up the produced products of the company. Walter Shewhart - -Quality Control Charts Edwards Deming - -14 points guy. Very influential in japanese manufacturing (Deming Award). Management is responsible for quality and quality improvement Joseph Duran - -Wrote "Quality Control Handbook". Defined quality as "fitness for use". Also stressed management's responsibility to quality assurance. Armand Feigenbaum - -Wrote "Total Quality Control". Promoted that the entire organization should focus on quality. Philip Crosby - -"zero -Defects" guy. Quality is free Kaoru Ishikawa - -Fishbone diagram dude. "Internal Customers" so like internal products/manufacturing pieces.. Genichi Taguchi - -Taguchi Diagram guy WGU C215