C215 Strategic Management - Set 3 - Part 1

Correct Answer: The amount of time allowed for personal time, fatigue, and unavoidable delays

The allowance factor is crucial for accurately estimating total work time by incorporating necessary breaks and potential delays.

Correct Answer: Aligning production and capacity with market demand

Aggregate planning seeks to balance supply and demand by determining the optimal production and staffing levels required to meet anticipated demand.

Correct Answer: Safety stock

Safety stock serves as a buffer to ensure that customer demands can be met even when there are unexpected spikes in demand or supply chain disruptions.

Correct Answer: Production processes that vary based on different product types

Intermittent operations involve producing a variety of products with different processing requirements, typically in lower volumes.

Correct Answer: A strategy that eliminates waste and improves quality

Lean production systems aim to enhance efficiency by removing non-value-adding activities and focusing on quality improvements.

Correct Answer: The transparency of operations and processes throughout the supply chain

Visibility in supply chain management enables organizations to track products and materials at every stage, improving responsiveness and decision-making.

Correct Answer: Enhancing a job by adding more meaningful responsibilities

Job enrichment involves redesigning jobs to make them more rewarding for employees, often increasing their autonomy and sense of ownership.

Correct Answer: A statistic that indicates how well a process meets specifications

The process capability index quantifies how consistently a process produces output within specified limits, providing insights into quality management.

Correct Answer: Orders that cannot be fulfilled at the moment due to stock shortages

Back orders occur when customer orders are placed for items that are not currently in stock, indicating a need for better inventory management.

Correct Answer: Manufacturing products in groups based on demand

Batch production allows for the efficient production of small quantities of items tailored to specific customer orders, optimizing resource use.

Correct Answer: To visualize the sequence of steps in a process

Process flowcharting helps clarify the steps involved in a process, making it easier to identify bottlenecks and areas for improvement.

Correct Answer: Specific tasks that require resources to complete a project

Project activities are the discrete tasks that make up a project, each contributing to the overall goal of successful project completion.

Correct Answer: The overall efficiency of converting inputs into outputs

Total productivity assesses how effectively an organization utilizes all resources to generate outputs, providing a holistic view of operational efficiency.

Correct Answer: The product remains stationary while resources come to it

In a fixed-position layout, the product cannot be moved, requiring all resources and labor to be transported to the product's location for assembly or construction.

Correct Answer: The average time calculated from specific task observations

Mean observed time is crucial for establishing standards and assessing productivity by providing a realistic estimate of task durations based on actual observations.

Correct Answer: To prevent defects from occurring in the first place

Prevention costs are incurred to implement quality measures aimed at reducing the likelihood of defects, thereby improving overall quality.

Correct Answer: Options that respond to changes in customer demand through inventory management

Demand-based options enable organizations to adjust inventory levels and production schedules in response to fluctuations in customer demand.

Correct Answer: Adjusting production levels to match changes in customer demand

The chase aggregate plan aligns production closely with actual demand, minimizing inventory and enhancing responsiveness.

Correct Answer: Coordinating the movement and storage of goods

Logistics is critical in ensuring that materials and products are transported efficiently throughout the supply chain, from suppliers to customers.

Correct Answer: The ratio of sales to inventory

Inventory turnover indicates how efficiently a company manages its inventory, reflecting the number of times inventory is sold and replaced over a specific period.