ARE 112 LATEST 2026 STUDY GUIDE QUESTIONS AND
SOLUTIONS RATED A+
✔✔the five focusing steps - ✔✔A process to continuously improve organizational profit
by evaluating the production system and market mix to determine how to make the most
profit using the system constraint
1. Articulate the Goal
-strategy settings step
2. Identify the constraint
-MECE
3. Decide how to exploit the constraint
-supply chain management
4. Subordinate all other processes to the above decision
-management process
5. Elevate the constraint
-strategic investment step
✔✔throughput - ✔✔rate at which the organization achieves this goal (generating
revenue)
✔✔operational expense - ✔✔the money organization invested in raw material or raw
talent used for throughput and the resulting inventory on hand
✔✔inventory/investment - ✔✔money the organization spends to convert inventory into
throughput
✔✔drum-buffer-rope (DBR) - ✔✔The theory of constraints method for scheduling and
managing operations that have an internal constraint or capacity-constrained resource.
✔✔drum - ✔✔physical constraint of the plant:
-the work center or machine or operation that limits the ability of the entire system to
produce more.
-The rest of the plant follows the beat of the drum.
-make sure the drum has work and that anything the drum has processed does not get
wasted.
✔✔buffer - ✔✔protects the drum, so that it always has work flowing to it -Buffers in DBR
have time as their unit of measure, rather than quantity of material.
✔✔rope - ✔✔work release mechanism for the plant. Only a "buffer time" before an order
is due does it get released into the plant. Pulling work into the system earlier than a
buffer time guarantees high work-in-process and slows down the entire system
✔✔industrial revolution - ✔✔-mechanization of work processes
, -items with homogenous appearance could easily be made in large numbers
-improvements in agriculture provided better diets
-need to bring order to manufacturing firm
✔✔classic school of management - fredrick taylor - ✔✔-design jobs with standards
leading to efficency
-select workers to fit job design
-train workers to follow design
-support workers by planning their work
✔✔classic school of management - max weber - ✔✔-beauracracy with logic, order and
legitimate authority, not an organization based on social standing
-division of labor; hierarchy of authority, formal rules, impersonality, promotion on merit
✔✔classic school of managment - henri fayol - ✔✔administration of the firm
-planning, organizing, command, coordination, control, unity of command
✔✔executives - ✔✔markets, products, suppliers, customers, capital expenditures
✔✔managers - ✔✔labor levels, buffers stocks, line balancing, training systems
✔✔supervisors - ✔✔scheduling work, crew assignments, maintenance schedule,
production rates
✔✔workers - ✔✔actual work
✔✔Anthony's Management Hierarchy - ✔✔
✔✔behavioral approach - ✔✔attempt to increase production by understanding people
as it is easier to change to organization than to change people - different than taylor
approach
✔✔hawthorne experiment (elton mayo) - ✔✔They made various changes and
monitored changes within the workforce from this in comparison to no changes.
conclusions made:
- ability does not indicate job performance, more influenced by social factors
-informal organisation affects productivity- better supervisor-worker relationships are
beneficial
-work group norms affect productivity
-workers attitudes and work habits are affected by social demands from both inside and
outside the work place
-the needs of recognition is more important for the workers morale than the physical
condition in which they work.
SOLUTIONS RATED A+
✔✔the five focusing steps - ✔✔A process to continuously improve organizational profit
by evaluating the production system and market mix to determine how to make the most
profit using the system constraint
1. Articulate the Goal
-strategy settings step
2. Identify the constraint
-MECE
3. Decide how to exploit the constraint
-supply chain management
4. Subordinate all other processes to the above decision
-management process
5. Elevate the constraint
-strategic investment step
✔✔throughput - ✔✔rate at which the organization achieves this goal (generating
revenue)
✔✔operational expense - ✔✔the money organization invested in raw material or raw
talent used for throughput and the resulting inventory on hand
✔✔inventory/investment - ✔✔money the organization spends to convert inventory into
throughput
✔✔drum-buffer-rope (DBR) - ✔✔The theory of constraints method for scheduling and
managing operations that have an internal constraint or capacity-constrained resource.
✔✔drum - ✔✔physical constraint of the plant:
-the work center or machine or operation that limits the ability of the entire system to
produce more.
-The rest of the plant follows the beat of the drum.
-make sure the drum has work and that anything the drum has processed does not get
wasted.
✔✔buffer - ✔✔protects the drum, so that it always has work flowing to it -Buffers in DBR
have time as their unit of measure, rather than quantity of material.
✔✔rope - ✔✔work release mechanism for the plant. Only a "buffer time" before an order
is due does it get released into the plant. Pulling work into the system earlier than a
buffer time guarantees high work-in-process and slows down the entire system
✔✔industrial revolution - ✔✔-mechanization of work processes
, -items with homogenous appearance could easily be made in large numbers
-improvements in agriculture provided better diets
-need to bring order to manufacturing firm
✔✔classic school of management - fredrick taylor - ✔✔-design jobs with standards
leading to efficency
-select workers to fit job design
-train workers to follow design
-support workers by planning their work
✔✔classic school of management - max weber - ✔✔-beauracracy with logic, order and
legitimate authority, not an organization based on social standing
-division of labor; hierarchy of authority, formal rules, impersonality, promotion on merit
✔✔classic school of managment - henri fayol - ✔✔administration of the firm
-planning, organizing, command, coordination, control, unity of command
✔✔executives - ✔✔markets, products, suppliers, customers, capital expenditures
✔✔managers - ✔✔labor levels, buffers stocks, line balancing, training systems
✔✔supervisors - ✔✔scheduling work, crew assignments, maintenance schedule,
production rates
✔✔workers - ✔✔actual work
✔✔Anthony's Management Hierarchy - ✔✔
✔✔behavioral approach - ✔✔attempt to increase production by understanding people
as it is easier to change to organization than to change people - different than taylor
approach
✔✔hawthorne experiment (elton mayo) - ✔✔They made various changes and
monitored changes within the workforce from this in comparison to no changes.
conclusions made:
- ability does not indicate job performance, more influenced by social factors
-informal organisation affects productivity- better supervisor-worker relationships are
beneficial
-work group norms affect productivity
-workers attitudes and work habits are affected by social demands from both inside and
outside the work place
-the needs of recognition is more important for the workers morale than the physical
condition in which they work.
