WGU C215 Exam - Operations Management 2024

WGU C215 Exam - Operations Management Which definition is used for quality evaluates how well a product performs its intended function?

-Statistical Quality Control Charts -Fitness quality for use -Product design quality -14 points for quality improvement - ✔Fitness for use Which total quality management (TQM) process was developed to stress management's responsibility for quality?

-Statistical Quality Control Charts -Fitness quality for use -Product design quality -14 points for quality improvement - ✔14 points for quality improvement Which total quality management (TQM) process consists of 13 published standards and guidelines?

-ISO 9002 -ISO 9001 -ISO 9000 -ISO 1400 - ✔ISO 9000 A company manufactures shoes using a quality management system. The company needs to put a process in place to measure any defects. The company would like to measure the number of defects and observe the number of occurrences to isolate the particular defect.

Which quality tool should the company use to focus on correcting this particular issue?

-Control Chart -Flowchart -Scatter Diagram -Checklist - ✔checklist Which quality control tool should be used to monitor the current status or end result of a process?

-Control Chart -Flowchart -Scatter Diagram

-Checklist - ✔Flowchart Which group of keywords or phrases describes the crucial role that marketing plays in the total quality management (TQM) process?

-Baseline for managing quality process; investment in preventative costs, budgeting -Enhance competition, understand consumer preferences, maintain communication with operations -Reward employees; motivate staff performance; manage operations planned changes -Review and recommend product changes, satisfy customer needs; open communication - ✔Review and recommend product changes, satisfy customers needs, open communication What is the common theme in total quality management (TQM) across all functions in an organization?

-To enhance management software -To ensure profit from product changes -To satisfy customer needs -To reward people rather than teams - ✔To satisfy customer needs Which concept of variation measures the central tendency of a set of data?

-Range -Variable -Mean -Standard deviation - ✔mean What do assignable causes of variation indicate?

-Equipment was found to be out of control -Human resources found an operator was at fault -Out of control signals were found in the process -A computer virus was found in the system - ✔Equipment was found out of control Which continuous improvement method does Cpk measure?

-What a process is capable of and how long it will take to conclude -How close one is to a target and how consistent one is with the average performance -Parts per million on the capability index -The most common measurement process - ✔How close one is to a target and how consistent one is with the average performance What are two important aspects of Six Sigma?

-People involvement

-Facility location -Technical tools -Job design - ✔people involvement technical tools Which strategy is used by some emergency rooms to overcome customer frustrations about long waiting times?

-See each patient in the order they arrived -Screen patients and fast track minor ailments -Screen and schedule follow up appts for serious injuries -Screen and send the last 25 to another facility - ✔Screen patients and fast-track those with minor ailments Which two factors affect a service location decision?

-Warehouse storage -Proximity to customers -Closeness to manufacturing facilities -Quality of life issues - ✔Proximity to customers Quality of life issues Which is a key factor of a location analysis for a service company?

-Best operation level -Relations with community -Proximity to customers -Effective capacity - ✔Proximity to customers What helps an organization identify and plan the actions necessary to meet current and future customer demands?

-Software development -Production capacity -Current economic conditions -Capacity planning - ✔capacity planning Which capacity planning measurement tells how much capacity a company is using?

-Design Capacity -Capacity Focus -Capacity Utilization -Effective Capacity - ✔Capacity utilization Which two statements are true about effective capacity?

An effective capacity:

-Maintains a minimum output rate under normal conditions -is a temporary measure used to achieve design capacity -is a permanent measure used to achieve design capacity -is lower than design capacity - ✔An effective capacity maintains a minimum output rate under normal conditions.

An effective capacity is lower than design capacity When is capacity measurement at the best operating level?

-At maximum capacity -at the minimum point of the cost curve -When the total cost is minimized -When the average unit cost is minimized - ✔When the average unit cost is minimized Which two capacity measurement concepts should a firm consider when conducting a location analysis?

-Proximity to sources of supply -site considerations -building employee relations -throughput time - ✔proximity to sources of supply site considerations What is a major factor in the decision to locate a business near its primary market territory?

-Proximity to labor -Proximity to customers -Proximity to parks -Proximity to a community center - ✔proximity to customers A manufacturing company decides to open a new distribution center location in order to minimize distribution costs to warehouses or stores.

What tool should the manufacturing company use to determine where the new distribution center should be located?

-By using the break-even analysis -By using the load-distance model -by using the center-of-gravity approach -By using the transportation method - ✔by using the load-distance model Which two types of operations include repetitive processes?

-Continuous process

-Batch process -Line process -Project process - ✔continuous process line process A comprehensive automobile collision shop offers body and engine repair as well as custom vehicle paint options.

Which two operational processes would suit this shop?

-Continuous Process -Batch process -Project proces -Line process - ✔batch process project process What is a bottleneck in a flowchart?

-multiple storage areas -The longest task in the process -two stages operation independently -The point where production is evened out - ✔The longest task in the process Which formula would compute process velocity?

-Time a resources is used/time a resource is available -Throughput time/value-added time -Output/input -Actual output/standard output - ✔throughput time/value-added time Which formula would indicate that a fast-food restaurant was performing at, above, or below its benchmark?

-Time a resources is used/time a resource is available -Throughput time/value-added time -Output/input -Actual output/standard output - ✔actual output/standard output In which organizational layout would one expect to see items arranged by type?

-Fixed -Process -Hybrid -Product - ✔process

A construction company produces pre-fabricated homes. The manager has discovered the following challenges within one of the facilities: -production qualities are low and only a small number of homes are built efficiently -the facility space allows for low handling of materials -there is limited space available for employees to operate Which hybrid layout should be used to address the company's needs?

-Statistical reduction control -Process performance metrics -Group technology -Manufacturing technology - ✔group technology Which instrument would use an allocation process for space requirements in an industry scenario?

-From to matrix -Block plan -Relationship chart (REL) -Rectilinear distance - ✔block plan What would be an organizations next step after it has revised or implemented new operations?

-Follow up to make sure the new operation resolves quality -Reverse the order of the operation to determine that all workers know how to complete the operation -Revise the order of the operation before putting it into service to ensure the order of the operation -Conduct a final analysis of the existing operation one more time - ✔follow up to make sure the new operation resolves quality problems Why is it beneficial for an organization to designate employees to communicate alternative ways to complete a job in a methods analysis?

-They know how an operation has always been done with no need to change -They may have suggestions for improving the operation -They may resist training on new machines -They are experts in their field - ✔they may have suggestions for improving the operation Which factor determines how long it takes a qualified operator to perform a duty of the job requirements under the assumption that the operator is working at a sustainable pace with the proper tools for the process?

-Standard Time -Observed time -Normal Time -Performance time - ✔standard time Which design work system minimizes repetitiveness in tasks be assigning employees the role of planning and scheduling?

-Job Rating -Job enrichment -Job rotation -Job entitlement - ✔job enrichment Which work system acknowledges the benefits of employee proficiency?

-lower operating cost -Enhanced employee relations -Labor specialization -Employee longevity - ✔labor specialization Which term means to schedule a job that starts immediately, regardless of the due date?

-Finite loading -Backward scheduling -Forward scheduling -Infinite loading - ✔forward scheduling What is the third basic element in the just in time (JIT) system if the first element is the total quality management (TQM) and the second is JIT manufacturing?

-Respect for people -Simply organized inventory -Quality circles -Capacity utilization - ✔respect for people How do just in time (JIT) and lean systems add value?

-By increasing simplicity -By improving lighting -By enhancing responsibility -By reducing waste - ✔by reducing waste Which concept takes a total system approach to creating an efficient operation and combines concepts such as just in time (JIT), total quality management (TQM), and continuous improvement?

-ISO 9001 Standards -ERP -CRM -Lean Systems - ✔enterprise resource planning (ERP) Why is kanban significant to the "pull" system?

-It specifies the exact quantity of a product that needs to be produced.

-It is a process that is only for support of maintenance -It requires that all work items are sized the same -It is a process that highlights the highest performance organization - ✔It specifies the exact quantity of a product that needs to be produced What are two product system differences between the push and pull processes?

-Push lowers cost due to overproduction -Pull initiates quality control -Pull eliminates excessive inventory -Push moves the product in anticipation for demand -Push enhances employee relations -Pull develops additional products - ✔push moves the product forward in anticipation for demand pull eliminates excessive inventory Which function does marketing play in a just in time (JIT) organization?

JIT Marketing: -synchronizes produce demand with assembly -focuses on producer driver quality -simplifies inventory flow -focuses on customer driven quality - ✔JIT marketing focuses on customer driven quality How does a just in time (JIT) system influence all functional areas within a company?

-Companies develop new ways to generate revenue -Companies enhance workers ability to perform -Companies workers demonstrate intrinsic value -Companies are able to reduce waste -Companies can participate when it is convenient - ✔companies are able to reduce waste companies enhance workers ability to perform What are two ways management can assist employees focus in a just in time (JIT) processing environment?

-Separate the cultures in the organization so there will be no conflicts -Develop an incentive system to reward workers for their efforts -Require workers to use free time to do quality control charting -Ensure that workers receive multifunctional training - ✔ensure that workers receive multifunctional training develop an incentive system to reward workers for their efforts Which tier-level supplier directly supplies materials or services to a processing and packaging plant?

-Tier one suppliers -Tier two suppliers -Tier three suppliers -Tier four suppliers -Tier five suppliers - ✔tier one suppliers Which role do third party logistics providers play in the supply chain?

-Tier three distributors -Tier two distributors -External distributors -Internal distributors - ✔external distributors A company manufactures and distributes its own products.

When should the company consider outsourcing distribution?

-When new federal regulations give the company a competitive advantage -When the company distribution costs are the lowest in the industry -When the company determines that distribution is no longer a core function -When the company can no longer accurately forecast its transportation costs - ✔when the company determines that distribution is no longer a core function What is the measure of how much supply chain is owned or operated by the manufacturer?

-Horizontal integration -Outsource Integration -Insource integration -Vertical integration - ✔vertical integration Which two areas should managers consider in order to adapt to the business dynamics affecting their company?

(2) -Their influence over future legislation and regulations -Their control over internal operations

-Their influence and leverage over suppliers -Their advertising costs - ✔their control over internal operations their advertising costs What are two strategic objectives for every member of the supply chain? (2) -Increasing cost effectiveness -Finding the best distribution location -Reducing production and delivery times -Increasing end-customer demand -Becoming more efficient - ✔becoming more efficient reducing production and delivery times How does the status of overall customer satisfaction support supply chain objectives?

-It measures capacity utilization -It measures efficiency -It measures compliance -It measures space requirements - ✔it measures efficency What is the name of the model that has been created to examine the four different supply chain perspectives of reliability, flexibility, expenses, and asset/utilization?

-SCAM -SCOR -RFEAU -SCM - ✔SCOR (Supply Chain Operations Reference) The annual cost of goods sold for a company is $8,400,000 and the average inventory is $1,200,000.

What is the number of weeks of supply?

5, 6, 7, 8, 9, - ✔7 A manufacturing firm uses warehouses and shippers in their supply chain.

At which stage of the firm's inventory management system would the statement "percentage of the line items shipped on schedule" be used?

-Work in progress -Finished goods -Sold goods -Raw materials - ✔finished goods

How does inventory management differ for manufacturing organizations compared to service organizations?

-service organizations must maintain work in progress types of inventory -Service organizations are concerned with managing idle time due to material and component shortages -Manufacturing organizations must keep large amounts of product on hand at all times, regardless of demand -Manufacturing organizations must maintain tangible inventory - ✔manufacturing organizations must keep a large amount of product on hand at all times, regardless of demand What is one advantage of a periodic review system?

-Less inventory is needed to protect against stockouts -Items are handled individually -All items are reviewed during the same time interval -Inventory balances are updated after every transaction - ✔less inventory is needed to protect against stockouts A company's monthly widgets demand has been consistent for the past few years but now a variable shift in demand is forecasted.

The demands are predicted to be: -Jan 20,000 units -Feb 17,000 units -Mar 19,000 units -Apr 21,000 units -May 22,000 units June 24,000 units Beginning inventory of 10,000 units should be maintained.

What is the average monthly new widget production demand for the company? ✔20,500 A company suddenly finds demand has increased to 140% of its previous capacity. It has been able to hire only a fraction of the employees previously laid off, and a warehouse fire destroyed 80% of its inventory.

Which two options does the company have to rapidly meet the new demand?

-Hire Temporary workers -Hire and train new full time employees -Build new production facilities

-Subcontract a portion of production capacity - ✔subcontract a portion of production capacity hire temporary workers What are two reasons a company might be hesitant to provide overtime as a capacitybased option?

-Overtime decreases the labor cost per unit -Overtime results in a building of excess inventory -Overtime is not a long term solution -Overtime is typically a 50% wage premium - ✔overtime is not a long term solution overtime is typically a 50% wage premium Why might a company avoid using demand-based options such as inventory and backorders over a long period of time?

-it is time consuming -It negatively affects hiring and firing -It is more risky -It negatively affects subcontracting - ✔it is more risky Which element is part of a financial plan?

-Budget projections -Compensation planning -SWOT -Product pricing - ✔budget projections Why is the marketing plan essential to the creation of the aggregate plan?

-The marketing plan provides insight into operations goals and activities for the year -The actual market demand in the marking plan is required to make adjustments for other plans -Research and development in the marketing plan drives new products -Accurate cash flow objectives in the marketing plan are needed to achieve profitability levels - ✔the marketing plan provides insight into operations goals and activities for the year What is meant by "duration of the change"?

-The fiscal impact of the change in the strategic plan -the length of time one expects to need the different level of capacity -The size of the change needed -The percentage of normal operating capacity - ✔the length of time one expects to need the different level of capacity

Which type of aggregated plan is preferable when a company produces custom or special purpose equipment, one of a kind, or highly perishable products?

-A level aggregate plan -A modified sales and operations plan -A hybrid aggregate plan -A chase aggregate plan - ✔a chase aggregated plan What are two common drawbacks of implementing an enterprise resource planning (ERP) solution?

-The cost savings and/or payback is impossible to measure in terms of bottom line -It takes a long time to implement and see any benefits -It must always be customized and too much customization may slow down projects -It requires extensive, often complex training - ✔it requires extensive , often complex, training it takes a long time to implement and to see any benefits What is the primary purpose in using the master production schedule (MPS) in the marketing department of an organization?

-To identify new product demand -To create demand for promised deliveries -To control the production department -To manage the demand for promised deliveries - ✔to identify new product demand A company is experiencing an unusual amount of deliveries that are either late or an incorrect quantity.

Which type of system is used to identify and manage this type of problem?

-FMS (Flexible manufacturing system) -MRP (material req planning) -CRP ( capacity req planning) -ERP (enterprise resc planning) - ✔CRP (capacity requirements planning) Which statement is true about capacity requirements planning (CRP)?

-Production capacity is created for future production items -Available capacity is compared to calculated workloads of relevant items -each product item is individually address regardless of relevant holistic processes.

-Human capital adequacy is analyzed for given work centers and production items. ✔production capacity is created for future production time Why is capacity requirements planning (CRP) important?

-It coordinates availability of materials for production processes

-It enables an assessment of employee production efficiency -It creates a transparent view of lead time and overtime usage in work centers -It provides the ability to compare available production capabilities - ✔it provides the ability to compare available production capabilities to the planned workload Which project life cycle phase includes identifying the need for a project?

-Execution -Feasibility analysis -Planning -Conception - ✔conception A company decides and makes plans to enter into a new market.

Which project life cycle phase does this strategy relate to?

-Conception -Planning -Execution -Feasibility analysis - ✔feasibility analysis