D464 Managing Operations - Set 3 - Part 1

Correct Answer: The ease with which a product can be produced efficiently

Manufacturability refers to how easily a product can be produced with minimal cost and complexity, ensuring efficient use of resources during production.

Correct Answer: Reduced material handling and faster throughput

A cellular layout groups different workstations for similar products into cells, which reduces material handling and speeds up production, increasing overall efficiency.

Correct Answer: The percentage of available capacity that is actually used

Capacity utilization measures the percentage of the total available capacity that is being effectively used, indicating how well a company is using its resources.

Correct Answer: Perpetual Review System

The perpetual review system continuously updates inventory records after each transaction, ensuring that the inventory levels are always current and accurate.

Correct Answer: Adjusting production to match demand fluctuations

The chase strategy involves adjusting production rates to match fluctuating demand, minimizing excess inventory and reducing carrying costs.

Correct Answer: By customizing small batches based on specific orders

In a job shop, products are produced in small, customized batches based on specific customer orders, allowing for high customization and flexibility.

Correct Answer: Produces items based on sales forecasts

A push system produces items based on sales forecasts and pushes them through the supply chain in anticipation of customer demand.

Correct Answer: To visually display project tasks along a timeline

A Gantt chart is a visual tool used in project management to represent tasks, their duration, and scheduling along a timeline, providing an overview of the project's progress.

Correct Answer: Value Stream Mapping

Value stream mapping is used to analyze the flow of materials and information, helping to identify value-added activities and eliminate non-value-added activities to enhance efficiency.

Correct Answer: Determining labor and machine resources needed for production

Capacity requirements planning focuses on determining the amount of labor and machine resources needed to meet production schedules and achieve desired outputs.

Correct Answer: Pareto Chart

A Pareto chart illustrates the frequency of defects and helps prioritize corrective actions by focusing on the most significant issues first, following the 80/20 rule.

Correct Answer: Economies of Scale

Economies of scale refer to the cost advantage gained by producing at a larger scale, where higher volumes lead to reduced production costs per unit.

Correct Answer: Matrix Structure

A matrix organizational structure involves dual reporting relationships where employees work on projects while still maintaining ties to their respective functional departments.

Correct Answer: Reduce variation to improve quality and minimize defects

Six Sigma focuses on reducing process variation and defects to improve quality, resulting in higher customer satisfaction and efficiency.

Correct Answer: A qualitative approach based on expert opinions

Judgmental forecasting relies on the expertise, intuition, and opinions of experts when historical data is limited or not available.

Correct Answer: Returning empty trucks to their point of origin

Backhaul refers to the return trip made by a truck or vehicle after delivering a load, often without cargo, which presents opportunities for cost savings by utilizing available capacity.

Correct Answer: Pull Strategy

A pull strategy uses actual customer demand to initiate the production of goods, synchronizing supply with demand to reduce inventory and enhance responsiveness.

Correct Answer: Cause-and-Effect Diagram

A cause-and-effect diagram, also known as a fishbone diagram, helps identify the potential causes of defects in a process and enables corrective action to be taken.

Correct Answer: The percentage of available time a resource is actually used

Utilization rate measures the extent to which a resource is used compared to its available capacity, indicating operational efficiency.

Correct Answer: Poka-Yoke

Poka-Yoke is a technique used to prevent human errors in processes by designing features that make mistakes either impossible or immediately detectable, thereby reducing defects.