CHAPTER 8: OPERATIONS
MANAGEMENT WITH LEAN AND SIX
SIGMA questions with correct answers
100% 2024
Operation Management refers to managing the process to ___________, in alignment with the
company's business strategy as efficiently and effectively as possible, while also controlling costs. -
Correct Answer convert resources into goods and services
Manufacturing involves processing or making __________, especially by means of a large-scale industrial
operation, ex. mass production - Correct Answer raw materials/components into a finished product;
includes the machines used, the personnel involved, inventory handling, warehousing, etc.
Manufacturing Management is the - Correct Answer management of all the processes which are
involved in manufacturing.
Companies must develop a manufacturing strategy that suits the _________ that they produce, their
______, and their _____. - Correct Answer types of products, customer's expectations, and their
strengths
Make to Stock (MTS) is - Correct Answer manufacturing products for stock based on demand forecasts
=> Push System
=> accurate forecast prevents creating excess inventory and avoid stock outs
=>most daily necessities such as foods, sundries, and textiles
The challenge of MTS is to _____________. - Correct Answer avoid having excess inventory;
,companies with MTS model tend to hold more inventory in case they need it; struggle to ensure that
inventory levels don't get out of control
Make to Order (MTO) is - Correct Answer manufacturing strategy where production starts ONLY when
the customer places an order;
=>creates additional wait time for customer but allows for customized products
The MTO strategy relieves the problems of _________ that is common in MTS strategy - Correct Answer
excessive inventory;
=> however not appropriate for all types of product; appropriate for highly configure products such as
aircraft, ocean vessels, bridges, or products that are very expensive to keep in inventory
Assemble to Order (ATO) is - Correct Answer manufacturing strategy where products ordered are put
together quickly and are customizable to a certain extend
=> requires basic parts for the product already manufactured but not yet assembled
=> once order received, parts are assembled quickly into the finished product
ATO is a hybrid strategy attempting to combine the benefits of both ______ and _____ strategies. -
Correct Answer MTS and MTO; getting products to customers quickly while allowing for some
customization to take place
Engineer to Order (ETO) is - Correct Answer manufacturing strategy where product is Designed,
Engineered, and Built to the customer's specifications after receipt of the order;
=> building a unique product every time; may be some common components but the finished product is
different each time
In the ETO strategy, ________ can be very high. - Correct Answer cost of poor quality;
, the warranty costs and the cost of rework to replace an item in a complex assembly, can have a serious
negative effect on profit margins
Based on the common characteristics in manufacturing processes, they can be grouped into Two Broad
Categories - Correct Answer Intermittent Processes
=> used to produce a large variety of products with different processing requirements in Lower Volumes
Repetitive Processes
=> used to produce one, or a few, standardized products in High Volumes
(Intermittent) Project Process - Correct Answer Product Variety: Very High
Volume: Very Low
Strategy: ETO/MTO
Customer LT: Very Long
(Intermittent) Batch Process - Correct Answer Product Variety: High
Volume: Low
Strategy: MTO/ATO/MTS
Customer LT: Long
(Repetitive) Line Process - Correct Answer Product Variety: Limited
MANAGEMENT WITH LEAN AND SIX
SIGMA questions with correct answers
100% 2024
Operation Management refers to managing the process to ___________, in alignment with the
company's business strategy as efficiently and effectively as possible, while also controlling costs. -
Correct Answer convert resources into goods and services
Manufacturing involves processing or making __________, especially by means of a large-scale industrial
operation, ex. mass production - Correct Answer raw materials/components into a finished product;
includes the machines used, the personnel involved, inventory handling, warehousing, etc.
Manufacturing Management is the - Correct Answer management of all the processes which are
involved in manufacturing.
Companies must develop a manufacturing strategy that suits the _________ that they produce, their
______, and their _____. - Correct Answer types of products, customer's expectations, and their
strengths
Make to Stock (MTS) is - Correct Answer manufacturing products for stock based on demand forecasts
=> Push System
=> accurate forecast prevents creating excess inventory and avoid stock outs
=>most daily necessities such as foods, sundries, and textiles
The challenge of MTS is to _____________. - Correct Answer avoid having excess inventory;
,companies with MTS model tend to hold more inventory in case they need it; struggle to ensure that
inventory levels don't get out of control
Make to Order (MTO) is - Correct Answer manufacturing strategy where production starts ONLY when
the customer places an order;
=>creates additional wait time for customer but allows for customized products
The MTO strategy relieves the problems of _________ that is common in MTS strategy - Correct Answer
excessive inventory;
=> however not appropriate for all types of product; appropriate for highly configure products such as
aircraft, ocean vessels, bridges, or products that are very expensive to keep in inventory
Assemble to Order (ATO) is - Correct Answer manufacturing strategy where products ordered are put
together quickly and are customizable to a certain extend
=> requires basic parts for the product already manufactured but not yet assembled
=> once order received, parts are assembled quickly into the finished product
ATO is a hybrid strategy attempting to combine the benefits of both ______ and _____ strategies. -
Correct Answer MTS and MTO; getting products to customers quickly while allowing for some
customization to take place
Engineer to Order (ETO) is - Correct Answer manufacturing strategy where product is Designed,
Engineered, and Built to the customer's specifications after receipt of the order;
=> building a unique product every time; may be some common components but the finished product is
different each time
In the ETO strategy, ________ can be very high. - Correct Answer cost of poor quality;
, the warranty costs and the cost of rework to replace an item in a complex assembly, can have a serious
negative effect on profit margins
Based on the common characteristics in manufacturing processes, they can be grouped into Two Broad
Categories - Correct Answer Intermittent Processes
=> used to produce a large variety of products with different processing requirements in Lower Volumes
Repetitive Processes
=> used to produce one, or a few, standardized products in High Volumes
(Intermittent) Project Process - Correct Answer Product Variety: Very High
Volume: Very Low
Strategy: ETO/MTO
Customer LT: Very Long
(Intermittent) Batch Process - Correct Answer Product Variety: High
Volume: Low
Strategy: MTO/ATO/MTS
Customer LT: Long
(Repetitive) Line Process - Correct Answer Product Variety: Limited
