Operations Management Quiz

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Questions and Answers

What is the primary purpose of forecasting in production?

To streamline logistics and distribution

To predict future sales revenue accurately

To determine how much product should be produced (correct)

To analyze competitor pricing strategies

Which of the following factors is NOT generally considered when selecting a location for a manufacturing facility?

Proximity to skilled labor

Climate conditions in the region (correct)

Transportation costs

Availability of raw materials

What does decentralized purchasing entail?

A single department handles all purchasing for a company

Each department manages its own purchasing needs (correct)

Purchasing decisions are made exclusively by top management

Coordination of purchasing across multiple regions or branches

What is a key benefit of proper machine maintenance?

It increases workplace safety and reduces unexpected breakdowns Signup and view all the answers

How does effective scheduling in operations management benefit a company?

It allocates resources to achieve quicker production times Signup and view all the answers

What is a central aspect of the purchasing component in operations management?

Ensuring a sufficient supply of raw materials Signup and view all the answers

Which strategy involves a single department being responsible for purchasing across the entire organization?

Centralized purchasing strategy Signup and view all the answers

What type of foreign direct investment (FDI) involves establishing the same business operation in a foreign country as in the home country?

Horizontal FDI Signup and view all the answers

Which company faced significant production and safety concerns due to outsourcing in their development programs?

Boeing Signup and view all the answers

What percentage of the cotton used in Vietnam's textile industry is currently imported?

Nearly all Signup and view all the answers

Which of the following countries is NOT listed as a major investor in Vietnam's textile sector?

India Signup and view all the answers

What was the export turnover of Vietnam’s textile industry in 2023?

$40.3 billion Signup and view all the answers

Which area is NOT mentioned as a leading locality in foreign direct investment attraction in Vietnam's textile and garment sector?

Ho Chi Minh City Signup and view all the answers

What type of activities does Toyota engage in with its suppliers to enhance operations?

Joint improvement activities Signup and view all the answers

What financial term describes a significant and lasting investment made by a company into a foreign enterprise?

Foreign direct investment Signup and view all the answers

What is a primary reason companies might choose to outsource business processes?

To reduce labor costs Signup and view all the answers

Which statement best describes offshoring?

Relocating a business process to another country Signup and view all the answers

What does the term 'tolerance' refer to in manufacturing design?

The range of permissible variation around a target dimension Signup and view all the answers

What is the effect of narrow tolerances in manufacturing?

Higher product functionality and performance Signup and view all the answers

Which of the following is NOT a reason for the rise of the reshoring trend?

Increased manufacturing powerhouses in foreign countries Signup and view all the answers

How can early tolerance planning benefit the manufacturing process?

By identifying potential issues before they become costly Signup and view all the answers

What does the Taguchi Quality Loss Function illustrate?

Any deviation from the ideal can lead to dissatisfaction and loss Signup and view all the answers

What is a negative consequence of delaying tolerance decisions in product design?

Last-minute changes and increased costs Signup and view all the answers

What is the primary benefit of early planning in design?

Optimizes design for manufacturing and reduces waste. Signup and view all the answers

What consequence can arise from neglecting geometric tolerances?

Potential assembly issues despite correct dimensional tolerances. Signup and view all the answers

How can different materials respond to environmental conditions?

Metals may expand or contract differently than plastics under similar conditions. Signup and view all the answers

Why is adherence to international tolerance standards essential?

Ensures parts from different manufacturers fit together consistently. Signup and view all the answers

What key misstep did Boeing make during the development of the 787 Dreamliner?

They outsourced 70% of design and manufacturing tasks. Signup and view all the answers

Which organization's standards ensure global compatibility in manufacturing tolerances?

ISO Signup and view all the answers

What is one of the key factors that can affect the performance of assembled parts?

The aggregate effects of individual tolerances. Signup and view all the answers

What approach did Boeing take to emulate the Toyota development process?

Outsourcing a significant percentage of design and manufacturing. Signup and view all the answers

What is a primary benefit of a social intranet for employees?

It connects employees with their coworkers and the company. Signup and view all the answers

Which statement best reflects the impact of the pandemic on gig workers?

There was an influx of workers which decreased hourly pay. Signup and view all the answers

What type of employment is increasingly being replaced by the gig economy?

Full-time salaried employment Signup and view all the answers

What role does the digital revolution play in the gig economy?

It encourages peer-to-peer exchanges and gig work. Signup and view all the answers

What is a common characteristic of gig economy workers according to the content provided?

They often lack workplace protections. Signup and view all the answers

Which of the following is a possible disadvantage of the gig economy?

Increased competition leading to lower pay. Signup and view all the answers

What is the traditional perception of freelancing as mentioned in the passage?

It is primarily for creative and IT-related positions. Signup and view all the answers

What aspect does Hillary Clinton emphasize about the gig economy?

It raises critical questions about job quality and protections. Signup and view all the answers

Study Notes

Forecasting

Forecasting involves utilizing historical data, facts, figures, and statistics to assist in making decisions about production levels.
It is essential for determining the required amount of specific products to produce, avoiding excessive stock or shortages.

Location Strategies

Operations management includes choosing the right location for a company.
Location selection factors include the availability and proximity of materials, skilled labor, and transportation costs.

Maintenance

Maintenance involves scheduling regular maintenance checks and adjustments for machinery and equipment.
Proper machine maintenance promotes workplace safety, reduces unexpected breakdowns, and prevents production disruptions.

Purchasing

Purchasing ensures there are enough materials to meet demand for products.
Purchasing can be centralized, decentralized, or combined.
Centralized purchasing involves a single department handling procurement for the entire organization.
Decentralized purchasing allows each department or branch to handle its own procurement.

Scheduling

Scheduling in operations management involves assigning tasks to the right location, machine, or labor resource.
Effective scheduling minimizes production time and allows for timely production and shipping of products.

Outsourcing

Outsourcing involves contracting external providers to perform business processes that could be handled internally.

Potential Benefits of Outsourcing

Reduction in labor costs
Access to specialized services
Focus on core competencies
Completion of short-term projects
Acquisition of hard-to-find skills
Business growth stimulation

Offshoring

Offshoring involves relocating a business process from one country to another, including manufacturing or support services.
It is possible to offshore without outsourcing.

Reshoring

Reshoring is a trend where companies move production back to their home country, away from manufacturing centers like China.
This shift is driven by factors like reduced lead times, rising offshore wages, domestic financial incentives, improved responsiveness and coordination, and reduced intellectual property risk.

Tolerance Design

Tolerance design involves specifying a target dimension (nominal) and a range of permissible variation (tolerance) for manufactured goods.
Narrow tolerances improve product functionality and performance but increase manufacturing costs due to the need for higher precision technology.

Early Tolerance Planning

Considering tolerances early in the design process helps identify and address potential issues, leading to smoother manufacturing and higher quality products.
Delaying tolerance decisions can cause last-minute changes, increased costs, and potential product recalls.

Mistakes to Avoid

Ignoring the operating environment's impact on materials, as different materials react differently to conditions like heat.
Neglecting geometric tolerances can lead to assembly issues even if dimensional tolerances are met, for example, a hole drilled at the wrong angle.
Failing to consider the cumulative effect of individual tolerances in multi-component designs, which can lead to significant deviations hindering assembly performance.

International Tolerance Standards

Global manufacturing necessitates adherence to international tolerance standards for consistency and compatibility.
ISO (International Organization for Standardization) and ASME (American Society of Mechanical Engineers) standards provide tolerance design blueprints for global parts compatibility.

Boeing Outsourcing

Boeing outsourced 70% of design, engineering, and manufacturing for the 787 Dreamliner to over 50 partners, some of which further sub-contracted parts.
This outsourcing strategy was intended to mimic the Toyota development process, using external suppliers for rapid and cost-effective development.

Boeing & Toyota Production: Problems

The 787 development program faced significant budget overruns, delays, and production problems leading to safety concerns.
The 737 Max aircraft, also using outsourcing, experienced two crashes in 2018 and 2019 attributed to design and production issues.
One supplier, Spirit AeroSystems, admitted to drilling holes in fuselages below Boeing's specifications.

Foreign Direct Investment (FDI)

FDI is a substantial, lasting investment made by a company or government in a foreign enterprise.
FDI investors typically take controlling positions in domestic firms or joint ventures and actively manage them.
Horizontal FDI involves establishing the same type of business operation in a foreign country as in the home country.
Vertical FDI involves acquiring a complementary business in another country.

Vietnam Textile Industry

Vietnam boasts about 3,500 foreign-invested textile and garment projects worth $37 billion, enhancing production capacity and export turnover.
Major investors are mainly from South Korea, Taiwan, Hong Kong, and China.
Vietnam's textile industry recorded an export turnover of $40.3 billion in 2023.
The US is the largest export market for Vietnamese textile and garment products, followed by the EU, South Korea, China, and Japan.
The industry imports nearly all of its cotton and spends tens of billions of dollars on raw fabrics annually.
Leading localities attracting FDI in the textile and garment sector include Dong Nai, Binh Duong, Tay Ninh, Long An, Nam Dinh, Hai Duong, and Binh Phuoc.
Vietnam National Textile and Garment Group (VINATEX) is the leading textile company in Vietnam.

Circular Products

These are products made with circular materials, including recycled, upcycled, and renewable content.

Gig Economy

The gig economy involves replacing traditional full-time employment with temporary, part-time, and independent contract or freelance work.
This shift is driven by the digital revolution fostering peer-to-peer exchange.
The gig economy is characterized by labor flexibility, with companies hiring independent workers based on real-time demand.
Skilled workers in the gig economy have different experiences compared to unskilled workers.

Pandemic Impact on Gig Economy

The pandemic led to a surge in gig work due to widespread unemployment, but supply exceeding demand resulted in lower hourly wages for gig workers.
Increased competition has forced existing and new gig workers to scramble for work opportunities.

Adjunct Teaching

Adjunct teaching is often characterized by contract-based, temporary employment, with limited or no benefits.

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Description

Test your knowledge on key concepts in operations management, including forecasting, location strategies, maintenance, and purchasing. This quiz will challenge your understanding of how these elements contribute to effective production and supply chain management.