OPERATION MANAGEMENT (OP) EXAM 4
QUESTIONS WITH VERIFIED SOLUTIONS RATED
A.
What is the role of manufacturing planning and control?
To make products your customers want, when they want them, you need to plan
ahead.
Why do companies exist according to Peter Drucker?
To create a customer
What is integrated business planning?
The process used to get every member of your value-added team to pull in the same
direction
S&OP
CPFR - collaborative planning, forecasting, and replenishment
what does aggregate planning do?
Identifies the resources needed to support sales and marketing over the next 6-18
months.
1. master production scheduling
2. materials requirements planning
3. production and purchasing control
1. Breaks down the aggregate plan to create a schedule for producing individual end
items
2. determines the period-by-period plans for producing and buying components
3. once you know what you need, how much, and when, you go but or produce it.
what is the goal of aggregate planning?
,The goal is to make sure you can produce the products needed to support your firm's
sales and marketing plan at the lowest possible costs.
what are the two aggregate planning strategies?
1. Chase - maintain output rates that match what the market demands.
- change using workforce
2. Level - you produce the same output each period.
- change using inventory levels
Capacity focused options to aggregate planning (4)
1. hours worked
2. subcontracting or temporary workers
3. hiring and firing
4. inventory
Demand focused options to aggregate planning (4)
1. price
2. lead time
3. backorders
4. counter-seasonal products
what do you set the chase strategy equal to?
level?
chase: zero
level: aggregate production rate equal to average demand then keep production rate
constant.
what does ERP stand for and do?
Enterprise resource planning
enables you to get every decision-maker across your organization on the same page.
uses the same data to make decisions
what are the common mistakes during the implementation of ERP systems? (4)
,1. automating a bad process
2. ignoring end users
3. cutting corners
4. forgetting people
4 popular ways to decide priority sequence.
1. first come, first serve
2. earliest due date
3. shortest processing time
4. longest processing time
what are the 5 steps in the theory of constraints?
1. identify the system's constraints
2. exploit the constraint
3. subordinate everything to the constraint
4. elevate the constraint
5. prevent inertia
Focus on the customer underlies the execution of an organization's strategy.
True or False
True
Which of the following has a planning horizon within 6-18 months?
a. Production Planning
b. Material Requirements Planning
c. Strategic Business Plan
d. Aggregate Planning
d. Aggregate Planning
The aggregate planning contains critical information to guide lower-level
scheduling and is the starting point of business planning.
True or False
False
, The master production scheduling is updated every semester.
True or False
False
Which of the following is used to align plans within your company?
a. MRP
b. CPFR
c. S&OP
d. CRM
c. S&OP
Aggregate planning helps you align your production capacity to market demand.
True or False
True
Which of the following is not a capacity-focused option to match supply and
demand?
a. Hours worked
b. Laying off
c. Backorders
d. Inventory
e. Temporary labor
c. Backorders
For seasonal products and services, the best option to align supply and demand
is to build inventory.
True or False
False
Which of the following is a demand-focused option to match supply and demand?
a. Inventory
b. Hours worked
c. Backorders
QUESTIONS WITH VERIFIED SOLUTIONS RATED
A.
What is the role of manufacturing planning and control?
To make products your customers want, when they want them, you need to plan
ahead.
Why do companies exist according to Peter Drucker?
To create a customer
What is integrated business planning?
The process used to get every member of your value-added team to pull in the same
direction
S&OP
CPFR - collaborative planning, forecasting, and replenishment
what does aggregate planning do?
Identifies the resources needed to support sales and marketing over the next 6-18
months.
1. master production scheduling
2. materials requirements planning
3. production and purchasing control
1. Breaks down the aggregate plan to create a schedule for producing individual end
items
2. determines the period-by-period plans for producing and buying components
3. once you know what you need, how much, and when, you go but or produce it.
what is the goal of aggregate planning?
,The goal is to make sure you can produce the products needed to support your firm's
sales and marketing plan at the lowest possible costs.
what are the two aggregate planning strategies?
1. Chase - maintain output rates that match what the market demands.
- change using workforce
2. Level - you produce the same output each period.
- change using inventory levels
Capacity focused options to aggregate planning (4)
1. hours worked
2. subcontracting or temporary workers
3. hiring and firing
4. inventory
Demand focused options to aggregate planning (4)
1. price
2. lead time
3. backorders
4. counter-seasonal products
what do you set the chase strategy equal to?
level?
chase: zero
level: aggregate production rate equal to average demand then keep production rate
constant.
what does ERP stand for and do?
Enterprise resource planning
enables you to get every decision-maker across your organization on the same page.
uses the same data to make decisions
what are the common mistakes during the implementation of ERP systems? (4)
,1. automating a bad process
2. ignoring end users
3. cutting corners
4. forgetting people
4 popular ways to decide priority sequence.
1. first come, first serve
2. earliest due date
3. shortest processing time
4. longest processing time
what are the 5 steps in the theory of constraints?
1. identify the system's constraints
2. exploit the constraint
3. subordinate everything to the constraint
4. elevate the constraint
5. prevent inertia
Focus on the customer underlies the execution of an organization's strategy.
True or False
True
Which of the following has a planning horizon within 6-18 months?
a. Production Planning
b. Material Requirements Planning
c. Strategic Business Plan
d. Aggregate Planning
d. Aggregate Planning
The aggregate planning contains critical information to guide lower-level
scheduling and is the starting point of business planning.
True or False
False
, The master production scheduling is updated every semester.
True or False
False
Which of the following is used to align plans within your company?
a. MRP
b. CPFR
c. S&OP
d. CRM
c. S&OP
Aggregate planning helps you align your production capacity to market demand.
True or False
True
Which of the following is not a capacity-focused option to match supply and
demand?
a. Hours worked
b. Laying off
c. Backorders
d. Inventory
e. Temporary labor
c. Backorders
For seasonal products and services, the best option to align supply and demand
is to build inventory.
True or False
False
Which of the following is a demand-focused option to match supply and demand?
a. Inventory
b. Hours worked
c. Backorders
