WGU C720 OA Exam Study
Guide – Practice Questions with
Verified Answers. GRADED A+.
Latest 2026/2027 Update
A new, energy-efficient furnace is being installed in a steel factory. Because it
would have added 10% to the cost of the furnace, management has decided not to
install the optional safety override for the furnace. This decision is most likely to
lead to which of the following? - Answer -An increase in legal costs
Refers to the organizational issue of balancing financial profitability with
environmental responsibility - Answer -sustainability
Operations managers rarely become involved with worker safety or environmental
pollution complaints because such ethical issues are only handled by an
organizations legal department. True or False - Answer -False
SWOT analysis is used as a tool when a firm crafts a strategy that helps distinguish
itself among competitors, develops competitive advantages, and avoids barriers
within the business environment. - Answer -strategic
The difference between the lowest cost producer of a good and the next lowest cost
producer of the same good is known as a - Answer -Relative advantage
Characteristics associated with a perpetual inventory system - Answer --when a
company needs to know exact inventory balances at all times
-when a company wants accurate financial statements
Under what two conditions should I periodic review system be adopted -
ANSWER- -When a supplier will only deliver at a specific interval
-when a company must manually track inventory levels
,SWOT analysis is used as a tool when used to uncover exploitable opportunities
within the competitive landscape. - Answer -simple
What best describes a competitive advantage? - Answer -A capability valued by
customers that gives a firm in edge over its rivals
A technique used to analyze the flow of materials, ideas, and information to
understand how processes function. Each activity in the process is defined as a
value added or non-value added - Answer -Value stream mapping
planning horizon. - In a JIT environment, the master schedule usually has a
ANSWER- 2-3 month
What production system uses general purpose machinery and is level scheduled? -
Answer -JIT
What indicates the quantities of component parts that will be made each day ,
because leadtimes are usually short in a JIT environment - Answer -Final assembly
schedule
Which technique should a company adopt to keep a smooth production process? -
Answer -Level schedule
What helps to reduce set up time in a JIT system? - Answer -Placing the needed
tools and equipment in predetermined locations and shortening the downtime of
equipment
Why is the movement of materials simplified in a JIT system? - Answer -Parts
are moved by hand
What types of waste are related to JIT? - Answer -Inventory
Waiting
Motion and movement
Transportation
Overproduction
Overprocessing
Defects
A firm that uses JIT would most likely use a group technology production system to
? - Answer -A group technology production system may be used to make several
different, but related, parts. The idea behind GT is that each part follows the same
essential processing sequence which can reduce set up time.
, Employee empowerment - Answer -Extending employee responsibility and
authority to the lowest levels of an organization
Crosby - Answer -Quality is Free, Zero Defects, Do it right the first time
Juran - Answer -fitness for use, Pareto
Taguchi - Answer -Robust Design and Parabolic Quality Loss Function
Higher quality products and processes
Quality must be designed into a product
Deming - Answer -14 points, system caused defects not employees
Ishikawa - Answer -fishbone diagram; cause and effect diagram to diagnose
quality problems, quality circles
A key advantage of team problem-solving is that team members . - Answer -share
(workload)
A , which is also known as a box chart, illustrates the frequency of data
observations within a preset range of values. - Answer -histogram
Benchmarking - Answer -The purpose of benchmarking is to set a standard based
upon the company that is recognized as the best at a certain activity but those other
companies need not be competitors, nor be within the same industry.
Which tool is used in the six sigma define phase to provide an overview of an
entire process and identify what is necessary to meet customer needs? - Answer -
Value Stream Mapping
Value Stream Mapping - Answer -a process that helps managers understand
how to add value in the flow of material and information through the entire
production process
Employee training that focuses on the use of Pareto charts will most likely enable
employees to? - Answer -Determine the likely causes of quality problems
Guide – Practice Questions with
Verified Answers. GRADED A+.
Latest 2026/2027 Update
A new, energy-efficient furnace is being installed in a steel factory. Because it
would have added 10% to the cost of the furnace, management has decided not to
install the optional safety override for the furnace. This decision is most likely to
lead to which of the following? - Answer -An increase in legal costs
Refers to the organizational issue of balancing financial profitability with
environmental responsibility - Answer -sustainability
Operations managers rarely become involved with worker safety or environmental
pollution complaints because such ethical issues are only handled by an
organizations legal department. True or False - Answer -False
SWOT analysis is used as a tool when a firm crafts a strategy that helps distinguish
itself among competitors, develops competitive advantages, and avoids barriers
within the business environment. - Answer -strategic
The difference between the lowest cost producer of a good and the next lowest cost
producer of the same good is known as a - Answer -Relative advantage
Characteristics associated with a perpetual inventory system - Answer --when a
company needs to know exact inventory balances at all times
-when a company wants accurate financial statements
Under what two conditions should I periodic review system be adopted -
ANSWER- -When a supplier will only deliver at a specific interval
-when a company must manually track inventory levels
,SWOT analysis is used as a tool when used to uncover exploitable opportunities
within the competitive landscape. - Answer -simple
What best describes a competitive advantage? - Answer -A capability valued by
customers that gives a firm in edge over its rivals
A technique used to analyze the flow of materials, ideas, and information to
understand how processes function. Each activity in the process is defined as a
value added or non-value added - Answer -Value stream mapping
planning horizon. - In a JIT environment, the master schedule usually has a
ANSWER- 2-3 month
What production system uses general purpose machinery and is level scheduled? -
Answer -JIT
What indicates the quantities of component parts that will be made each day ,
because leadtimes are usually short in a JIT environment - Answer -Final assembly
schedule
Which technique should a company adopt to keep a smooth production process? -
Answer -Level schedule
What helps to reduce set up time in a JIT system? - Answer -Placing the needed
tools and equipment in predetermined locations and shortening the downtime of
equipment
Why is the movement of materials simplified in a JIT system? - Answer -Parts
are moved by hand
What types of waste are related to JIT? - Answer -Inventory
Waiting
Motion and movement
Transportation
Overproduction
Overprocessing
Defects
A firm that uses JIT would most likely use a group technology production system to
? - Answer -A group technology production system may be used to make several
different, but related, parts. The idea behind GT is that each part follows the same
essential processing sequence which can reduce set up time.
, Employee empowerment - Answer -Extending employee responsibility and
authority to the lowest levels of an organization
Crosby - Answer -Quality is Free, Zero Defects, Do it right the first time
Juran - Answer -fitness for use, Pareto
Taguchi - Answer -Robust Design and Parabolic Quality Loss Function
Higher quality products and processes
Quality must be designed into a product
Deming - Answer -14 points, system caused defects not employees
Ishikawa - Answer -fishbone diagram; cause and effect diagram to diagnose
quality problems, quality circles
A key advantage of team problem-solving is that team members . - Answer -share
(workload)
A , which is also known as a box chart, illustrates the frequency of data
observations within a preset range of values. - Answer -histogram
Benchmarking - Answer -The purpose of benchmarking is to set a standard based
upon the company that is recognized as the best at a certain activity but those other
companies need not be competitors, nor be within the same industry.
Which tool is used in the six sigma define phase to provide an overview of an
entire process and identify what is necessary to meet customer needs? - Answer -
Value Stream Mapping
Value Stream Mapping - Answer -a process that helps managers understand
how to add value in the flow of material and information through the entire
production process
Employee training that focuses on the use of Pareto charts will most likely enable
employees to? - Answer -Determine the likely causes of quality problems
