WGU C720 Operations and Supply Chain
Management (OA) exam, structured with key
concepts, definitions, and examples to ensure a deep
understanding for the 2025/2026 academic year.
#### **1. Operations Management Fundamentals**
* **Operations Management:** The management of processes that transform
inputs (labor, materials, capital) into outputs (goods and services) to create value
for customers.
* **Triple Bottom Line:** A framework that evaluates organizational
performance based on three criteria:
1. **Planet (Environmental):** Sustainable practices, minimizing
environmental impact.
2. **People (Social):** Ethical treatment of employees, customers, and the
community.
3. **Profit (Economic):** Traditional financial performance.
* **Productivity:** The ratio of outputs to inputs.
* **Formula:** Productivity = Output / Input
* **Example:** A factory produces 1000 units (output) using 200 labor hours
(input). Productivity = 1000/200 = 5 units per labor hour.
* **Efficiency vs. Effectiveness:**
* **Efficiency:** Doing things right (minimizing waste, cost, time).
* **Effectiveness:** Doing the right things (achieving goals, customer
satisfaction).
, #### **2. Process & Quality Management**
* **Process Types:**
* **Project:** Unique, one-time output (e.g., building a bridge).
* **Job Shop:** Low volume, high variety (e.g., custom cabinet maker,
hospital ER).
* **Batch:** Moderate volume, moderate variety (e.g., bakery, printing shop).
* **Assembly Line (Repetitive):** High volume, low variety (e.g., automobile
assembly).
* **Continuous Flow:** Very high volume, non-discrete (e.g., oil refinery,
chemical plant).
* **Process Analysis & Improvement:**
* **Flowchart/Process Map:** A diagram that shows the steps in a process.
* **Bottleneck:** The slowest step in a process, which limits the overall
capacity.
* **Cycle Time:** The average time between completing successive units.
* **Throughput Time:** The total time it takes for one unit to go through the
entire process from start to finish.
* **Quality Management:**
* **Total Quality Management (TQM):** A management philosophy focused
on continuous improvement, customer focus, and employee involvement.
* **Six Sigma:** A data-driven methodology for eliminating defects (aiming
for 3.4 defects per million opportunities). Uses the **DMAIC** process:
* **D**efine
* **M**easure
* **A**nalyze
Management (OA) exam, structured with key
concepts, definitions, and examples to ensure a deep
understanding for the 2025/2026 academic year.
#### **1. Operations Management Fundamentals**
* **Operations Management:** The management of processes that transform
inputs (labor, materials, capital) into outputs (goods and services) to create value
for customers.
* **Triple Bottom Line:** A framework that evaluates organizational
performance based on three criteria:
1. **Planet (Environmental):** Sustainable practices, minimizing
environmental impact.
2. **People (Social):** Ethical treatment of employees, customers, and the
community.
3. **Profit (Economic):** Traditional financial performance.
* **Productivity:** The ratio of outputs to inputs.
* **Formula:** Productivity = Output / Input
* **Example:** A factory produces 1000 units (output) using 200 labor hours
(input). Productivity = 1000/200 = 5 units per labor hour.
* **Efficiency vs. Effectiveness:**
* **Efficiency:** Doing things right (minimizing waste, cost, time).
* **Effectiveness:** Doing the right things (achieving goals, customer
satisfaction).
, #### **2. Process & Quality Management**
* **Process Types:**
* **Project:** Unique, one-time output (e.g., building a bridge).
* **Job Shop:** Low volume, high variety (e.g., custom cabinet maker,
hospital ER).
* **Batch:** Moderate volume, moderate variety (e.g., bakery, printing shop).
* **Assembly Line (Repetitive):** High volume, low variety (e.g., automobile
assembly).
* **Continuous Flow:** Very high volume, non-discrete (e.g., oil refinery,
chemical plant).
* **Process Analysis & Improvement:**
* **Flowchart/Process Map:** A diagram that shows the steps in a process.
* **Bottleneck:** The slowest step in a process, which limits the overall
capacity.
* **Cycle Time:** The average time between completing successive units.
* **Throughput Time:** The total time it takes for one unit to go through the
entire process from start to finish.
* **Quality Management:**
* **Total Quality Management (TQM):** A management philosophy focused
on continuous improvement, customer focus, and employee involvement.
* **Six Sigma:** A data-driven methodology for eliminating defects (aiming
for 3.4 defects per million opportunities). Uses the **DMAIC** process:
* **D**efine
* **M**easure
* **A**nalyze
