Operations Management Quiz

Operations in Manufacturing

• The role of operations in a manufacturing firm is transforming resources into finished products.
• Operations involves moving materials and information, but its primary focus is on transforming resources.

Efficiency Measures

• Receivables Turnover is an efficiency measure calculated by dividing net credit sales by average accounts receivable.
• It measures the efficiency of a company's accounts receivable management.

Triple Bottom Line

• The triple bottom line is a concept that focuses on social, economic, and environmental aspects of a company's performance.
• The environmental aspect focuses on reducing environmental impact.

Capacity Planning

• Capacity planning involves adjusting capacity for seasonal demand fluctuations over a short-range duration.
• Short-range capacity planning focuses on adjusting capacity to meet seasonal demand fluctuations.

Economies of Scale

• When a company experiences reduced per-unit costs due to increased production, it is benefiting from economies of scale.
• Economies of scale occur when a company's production increases, leading to a reduction in per-unit costs.

Project Management Approaches

• A Pure Project approach involves a project manager having full authority over the project and team members.
• This approach gives the project manager complete control over the project.

Critical Path Method (CPM)

• The primary purpose of CPM is to identify critical activities and project completion time.
• CPM helps project managers identify the critical activities that determine the minimum duration required to complete a project.

Earned Value Management (EVM)

• EVM primarily measures project progress and performance.
• It helps project managers track the progress of their projects and identify any deviations from the planned schedule.

Project Scheduling

• A Gantt Chart is a visual representation of the sequence and timing of project activities.
• It is a tool used to schedule and track project activities.

Project Risk Analysis

• The Z score helps calculate the probability of project completion.
• It is a statistical measure used to assess the probability of completing a project.

Production Types

• Assemble-to-order is a production type where products are assembled only after receiving a customer order.
• It is a production strategy that involves assembling products based on customer orders.

Lean Manufacturing

• The main goal of lean manufacturing is to minimize inventory while maintaining high service levels.
• It involves reducing waste and optimizing production processes to improve efficiency.

Service Process Variability

• Arrival variability involves differences in the time customers arrive.
• It is a type of variability that affects service processes.

Service Process Metrics

• Cycle time is the time it takes to respond to a customer order.
• It is a metric used to measure the efficiency of service processes.

Service Process Characteristics

• Simultaneous production and consumption is a characteristic of service processes compared to product processes.
• Service processes involve simultaneous production and consumption, whereas product processes involve separate production and consumption stages.

Demand Analysis

• Time Series Analysis is a type of analysis that uses historical data to predict future demand.
• It involves analyzing historical data to identify patterns and trends in demand.

Forecasting Components

• Trend is a component of demand that involves regular, predictable patterns.
• It is a long-term pattern in demand that can be predicted using time series analysis.

Forecasting Models

• Simple Moving Average is a forecasting model that gives equal weight to all past observations.
• It is a model that uses the average of past observations to forecast future demand.

Forecasting Error Measurement

• Mean Absolute Deviation (MAD) is a measurement that assesses forecast quality by averaging the absolute errors.
• It is a metric used to evaluate the accuracy of forecasting models.

Inventory Models

• Single-period Inventory Model is best for items with unpredictable demand that can only be ordered once.
• It is an inventory model used for items with uncertain demand that can only be ordered once.

Demand Types

• Dependent Demand is a type of demand that is directly influenced by the demand for another item.
• It is a type of demand that is dependent on the demand for another item.

Inventory Management

• Safety Stock is the excess of inventory over the expected demand.
• It is a buffer stock held to protect against stockouts and uncertainty in demand.