Overview

Question 1

What is the definition of Operations Management (OM)?

Answer 1

Involves designing, overseeing, and controlling business operations in the production of goods or services.

Question 2

What are the key objectives of Operations Management?

Answer 2

• Efficiency
• Effectiveness
• Quality
• Continuous improvement

Question 3

Why is Operations Management important?

Answer 3

Aligns operations with strategic goals, optimizes resources, and ensures customer satisfaction.

Question 4

What are the types of processes in process design and analysis?

Answer 4

• Job shop
• Batch
• Assembly line
• Continuous flow

Question 5

What is process mapping?

Answer 5

Visualizing workflows to identify inefficiencies.

Question 6

What does capacity planning involve?

Answer 6

Determining production capacity to meet demand.

Question 7

Define supply chain management.

Answer 7

Coordination of production, inventory, location, and transportation.

Question 8

What are key strategies in supply chain management?

Answer 8

• Just-in-Time (JIT)
• Lean Supply Chain
• Agile Supply Chain

Question 9

What does inventory management include?

Answer 9

• Economic Order Quantity (EOQ)
• Safety stock
• Reorder points

Question 10

What is Total Quality Management (TQM)?

Answer 10

Continuous improvement and customer satisfaction.

Question 11

What is Six Sigma and its methodology?

Answer 11

Reducing defects through DMAIC methodology.

Question 12

What are ISO Standards?

Answer 12

International benchmarks for quality assurance.

Question 13

What are quantitative methods in forecasting?

Answer 13

• Moving averages
• Exponential smoothing
• Regression analysis

Question 14

What are qualitative methods in forecasting?

Answer 14

• Delphi method
• Market research

Question 15

Why is forecasting important in operations management?

Answer 15

Aligns production with market demand to reduce waste.

Question 16

What tools are used in project management?

Answer 16

• Gantt charts
• Critical Path Method (CPM)
• Program Evaluation Review Technique (PERT)

Question 17

What are the phases of project management?

Answer 17

• Initiation
• Planning
• Execution
• Monitoring
• Closure

Question 18

What is the Product-Process Matrix?

Answer 18

Aligns product life cycle with process choice.

Question 19

What is the Theory of Constraints (TOC)?

Answer 19

Identifies and manages bottlenecks.

Question 20

What is Lean Production focused on?

Answer 20

Waste reduction and value creation.

Question 21

What does Just-in-Time (JIT) aim to achieve?

Answer 21

Minimizes inventory by producing only what is needed.

Question 22

What are the root causes of operational inefficiencies in the sample case study?

Answer 22

• Inefficient Processes
• Poor Inventory Management

Question 23

What recommendations were made to improve the case study scenario?

Answer 23

• Implement Lean Manufacturing to reduce waste
• Adopt JIT inventory systems for better stock control
• Upgrade equipment and introduce automation

Question 24

Explain the role of operations management in achieving competitive advantage.

Answer 24

OM improves efficiency, reduces costs, ensures quality, and enhances customer satisfaction.

Question 25

How can Lean Manufacturing benefit an organization?

Answer 25

Reduces waste, lowers costs, improves quality, and increases responsiveness to customer needs.

Question 26

Discuss the importance of capacity planning in operations management.

Answer 26

Ensures that production capabilities meet market demand, preventing stockouts or excess inventory.

Question 27

Differentiate between push and pull production systems.

Answer 27

Push systems produce based on forecasted demand; pull systems produce in response to actual demand.

Question 28

What are the key principles of Total Quality Management (TQM)?

Answer 28

* Customer focus * Continuous improvement * Employee involvement * Process-centered approaches

Question 29

Calculate the Economic Order Quantity (EOQ) given D = 5,000 units, S = $100 per order, H = $5 per unit per year.

Answer 29

EOQ = √((2 * 5,000 * 100) / 5) ≈ 447 units

Question 30

What is the Break-Even Point formula?

Answer 30

Break-Even Point (Units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)

Question 31

Calculate the Break-Even Point given Fixed Costs = $50,000, Selling Price = $25, Variable Cost = $15.

Answer 31

Break-Even Point = 5,000 units

Question 32

What is the Capacity Utilization Rate formula?

Answer 32

Capacity Utilization = (Actual Output / Potential Output) × 100%

Question 33

Calculate the Capacity Utilization Rate given Actual Output = 8,000 units, Potential Output = 10,000 units.

Answer 33

Capacity Utilization = 80%

Question 34

What is the Productivity formula?

Answer 34

Productivity = Output / Input

Question 35

Calculate productivity given Output = 1,000 units, Input = 500 labor hours.

Answer 35

Productivity = 2 units per labor hour

Question 36

What is the Critical Path Method (CPM)?

Answer 36

A project management technique used to determine the longest path through a project.

Question 37

Identify the critical path given tasks A (2 days), B (4 days), C (3 days after A), D (5 days after B and C).

Answer 37

A → C → D (10 days)

Question 38

What are the root causes of delivery delays in the logistics case study?

Answer 38

* Manual routing processes * Lack of GPS tracking

Question 39

What strategies were suggested to reduce delivery delays?

Answer 39

* Implement route optimization software * Introduce real-time GPS tracking

Question 40

Calculate the potential cost savings from reduced fuel consumption by 10% saving $20,000 annually.

Answer 40

Cost savings of $20,000 annually.