C215 Objective Assessment Prep Guide
Note: This document should be used solely as a guide in preparation for taking the objective assessment (OA)
for the C215 Operations Management course. Students must work through the course material as outlined in
the course of study and study from the Wiley Plus Textbook. There are supplemental videos in the Course Tips
to help with understanding certain OM concepts.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++Competency 1: Quality
Management Methods (16%)
Review Chapter 5: Total Quality Management
o Total Quality Management (TQM) Philosophy (See Table 5:3) The meaning of quality as defined
by the customer. Total, Whole Org, Quality: Specific Definitions of customer requirements,
Management: System of managing the entire process.
o Quality Gurus and their Contributions to TQM (See Table 5:2)
Walter A. Shewhart, W. Edwards Deming, Joseph M. Juran, Armand V. Feigenbaum,
Philip
B. Crosby, Kaoru Ishikawa, Genichi Taguchi
o Definitions of Quality
According to Dr. Taguchi’s view of quality, as conformance values move away from
the target, loss increases as a quadratic function
o Four Costs of Quality (See Figure 5:1): There are four categories of quality costs. The first two are
prevention and appraisal costs, which are incurred by a company in attempting to improve
quality. The last two costs are internal and external failure costs, which are the costs of quality
failures that the company wishes to prevent.
o The Organizational impact of quality
o Plan-Do-Act-Study Cycle- A diagram that describes the activities that need to be performed to
incorporate continuous improvement into the operation.
o ISO 9000 Standards-Yr. 2000, 13 published standards A set of international quality standards and
a certification demonstrating that companies have met all the standards specified
o ISO 14000 Standards-A set of international standards and a certification focusing on a company's
environmental responsibility.
Review Chapter 6: Statistical Quality Control
o Definition of Statistical Quality Control- The general category of statistical tools used to evaluate
organizational quality
o Sources of Variation
Common (Random Variation) and Assignable Causes
o Process Capability: The ability of a production process to meet or exceed preset specifications
o Process Capability Index (Cpk) An index used to measure process capability
Cp:6~O, formula: specification width / process width
Cp) value of 1 means that what percent of products produced will fall within the
specification limits? 99.74%
What is the relationship between Cp and Cpk? Cp ≥ Cpk
Which continuous improvement method does C pk measure? How close one is to a
target and how consistent one is with the average performance
o Six Sigma- A high level of quality associated with approx. 3.4 defective parts per million
Five-Step Plan The Six Sigma approach is organized around a _______ plan known as
________. five step DMAIC
Six-sigma quality implies how many average defects per million? 3.4
o Acceptance Sampling- The process of randomly inspecting a sample of goods and deciding whether
to accept the entire lost based on the results.
Sampling Plan
This study source was downloaded by 100000860579690 precisely specifies
from CourseHero.com the parameters
on 06-02-2023 of-05:00
15:44:43 GMT the sampling process and the
acceptance/rejection criteria
https://www.coursehero.com/file/69790029/C215-Objective-Assessment-Prep-Guide-With-Notes-and-responsesdocx/
, o Control Charts-A graph that shows whether a sample of data falls within the common or
normal range of variation.
Types of control charts
Variables- a product characteristic that can be measured and has a continuum
of values.
Attributes- A product characteristic that has a discrete value and can be
counted.
C-charts and P-charts (what they are and used for)
• C Charts: A control chart used to monitor the number of defects per
unit.
• P Charts: A control chart that monitors the proportion of defects in a
sample.
Competency 2: Capacity Planning& Location Analysis (26%)
Review Chapter 9: Capacity Planning and Facility Location
o Capacity Planning: is deciding on the maximum output rate of a facility.
Definition and Importance to an organization
is the process of establishing the max output rate that can be achieved by a
facility
If a company does not plan its capacity correctly, it may find that it either does
not have enough output capability to meet customer demands or has too much
capacity sitting idle
o Design and Effective Capacity
Design capacity
is the maximum output rate that can be achieved by a facility under ideal conditions. In our
example, this is 30 pies per day. Design capacity can be sustained only for a relatively short
period of time. A company achieves this output rate by using many temporary measures, such as
overtime, overstaffing, maximum use of equipment, and subcontracting.
Effective capacity
is the maximum output rate that can be sustained under normal conditions. These conditions
include realistic work schedules and breaks, regular staff levels, scheduled machine maintenance,
and none of the temporary measures that are used to achieve design capacity. Note that effective
capacity is usually lower than design capacity. In our example, effective capacity is 20 pies per
day.
o Capacity Utilization
o Selecting an ideal location
o Location analysis: deciding on the best location for a facility
Factors affecting location decisions
Key factors in location analysis include proximity to customers, transportation, source of labor, community attitude,
and proximity to supplies. Service and manufacturing firms focus on different factors. Profit-making and nonprofit
organizations also focus on different factors.
o Decision support tools
o Globalization
Advantages and Disadvantages
Review Chapter 3: Product Design and Process Selection
o Product Design
Services Versus Goods
Steps in Product Design
by Factors
This study source was downloaded Impacting
100000860579690 fromProduct Designon 06-02-2023 15:44:43 GMT -05:00
CourseHero.com
https://www.coursehero.com/file/69790029/C215-Objective-Assessment-Prep-Guide-With-Notes-and-responsesdocx/
Note: This document should be used solely as a guide in preparation for taking the objective assessment (OA)
for the C215 Operations Management course. Students must work through the course material as outlined in
the course of study and study from the Wiley Plus Textbook. There are supplemental videos in the Course Tips
to help with understanding certain OM concepts.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++Competency 1: Quality
Management Methods (16%)
Review Chapter 5: Total Quality Management
o Total Quality Management (TQM) Philosophy (See Table 5:3) The meaning of quality as defined
by the customer. Total, Whole Org, Quality: Specific Definitions of customer requirements,
Management: System of managing the entire process.
o Quality Gurus and their Contributions to TQM (See Table 5:2)
Walter A. Shewhart, W. Edwards Deming, Joseph M. Juran, Armand V. Feigenbaum,
Philip
B. Crosby, Kaoru Ishikawa, Genichi Taguchi
o Definitions of Quality
According to Dr. Taguchi’s view of quality, as conformance values move away from
the target, loss increases as a quadratic function
o Four Costs of Quality (See Figure 5:1): There are four categories of quality costs. The first two are
prevention and appraisal costs, which are incurred by a company in attempting to improve
quality. The last two costs are internal and external failure costs, which are the costs of quality
failures that the company wishes to prevent.
o The Organizational impact of quality
o Plan-Do-Act-Study Cycle- A diagram that describes the activities that need to be performed to
incorporate continuous improvement into the operation.
o ISO 9000 Standards-Yr. 2000, 13 published standards A set of international quality standards and
a certification demonstrating that companies have met all the standards specified
o ISO 14000 Standards-A set of international standards and a certification focusing on a company's
environmental responsibility.
Review Chapter 6: Statistical Quality Control
o Definition of Statistical Quality Control- The general category of statistical tools used to evaluate
organizational quality
o Sources of Variation
Common (Random Variation) and Assignable Causes
o Process Capability: The ability of a production process to meet or exceed preset specifications
o Process Capability Index (Cpk) An index used to measure process capability
Cp:6~O, formula: specification width / process width
Cp) value of 1 means that what percent of products produced will fall within the
specification limits? 99.74%
What is the relationship between Cp and Cpk? Cp ≥ Cpk
Which continuous improvement method does C pk measure? How close one is to a
target and how consistent one is with the average performance
o Six Sigma- A high level of quality associated with approx. 3.4 defective parts per million
Five-Step Plan The Six Sigma approach is organized around a _______ plan known as
________. five step DMAIC
Six-sigma quality implies how many average defects per million? 3.4
o Acceptance Sampling- The process of randomly inspecting a sample of goods and deciding whether
to accept the entire lost based on the results.
Sampling Plan
This study source was downloaded by 100000860579690 precisely specifies
from CourseHero.com the parameters
on 06-02-2023 of-05:00
15:44:43 GMT the sampling process and the
acceptance/rejection criteria
https://www.coursehero.com/file/69790029/C215-Objective-Assessment-Prep-Guide-With-Notes-and-responsesdocx/
, o Control Charts-A graph that shows whether a sample of data falls within the common or
normal range of variation.
Types of control charts
Variables- a product characteristic that can be measured and has a continuum
of values.
Attributes- A product characteristic that has a discrete value and can be
counted.
C-charts and P-charts (what they are and used for)
• C Charts: A control chart used to monitor the number of defects per
unit.
• P Charts: A control chart that monitors the proportion of defects in a
sample.
Competency 2: Capacity Planning& Location Analysis (26%)
Review Chapter 9: Capacity Planning and Facility Location
o Capacity Planning: is deciding on the maximum output rate of a facility.
Definition and Importance to an organization
is the process of establishing the max output rate that can be achieved by a
facility
If a company does not plan its capacity correctly, it may find that it either does
not have enough output capability to meet customer demands or has too much
capacity sitting idle
o Design and Effective Capacity
Design capacity
is the maximum output rate that can be achieved by a facility under ideal conditions. In our
example, this is 30 pies per day. Design capacity can be sustained only for a relatively short
period of time. A company achieves this output rate by using many temporary measures, such as
overtime, overstaffing, maximum use of equipment, and subcontracting.
Effective capacity
is the maximum output rate that can be sustained under normal conditions. These conditions
include realistic work schedules and breaks, regular staff levels, scheduled machine maintenance,
and none of the temporary measures that are used to achieve design capacity. Note that effective
capacity is usually lower than design capacity. In our example, effective capacity is 20 pies per
day.
o Capacity Utilization
o Selecting an ideal location
o Location analysis: deciding on the best location for a facility
Factors affecting location decisions
Key factors in location analysis include proximity to customers, transportation, source of labor, community attitude,
and proximity to supplies. Service and manufacturing firms focus on different factors. Profit-making and nonprofit
organizations also focus on different factors.
o Decision support tools
o Globalization
Advantages and Disadvantages
Review Chapter 3: Product Design and Process Selection
o Product Design
Services Versus Goods
Steps in Product Design
by Factors
This study source was downloaded Impacting
100000860579690 fromProduct Designon 06-02-2023 15:44:43 GMT -05:00
CourseHero.com
https://www.coursehero.com/file/69790029/C215-Objective-Assessment-Prep-Guide-With-Notes-and-responsesdocx/
