Operations Management and Process Improvement Flashcards

The Theory of Constraints (TOC) recommends focusing improvement efforts on:

Answer: The binding constraint that limits the system's overall output

TOC states that a system's output is limited by its single binding constraint, so improvement efforts should focus on identifying and elevating that constraint before moving on to others.

Lean manufacturing primarily focuses on eliminating:

Answer: Waste (non-value-adding activities) from production processes

Lean manufacturing identifies and systematically eliminates eight categories of waste (overproduction, waiting, transport, over-processing, inventory, motion, defects, underutilized talent) to maximize value delivery.

Supply chain management coordinates which of the following activities?

Answer: Procurement, production, inventory, logistics, and customer delivery

Supply chain management integrates the flow of materials, information, and finances from raw material suppliers through production to the final customer delivery.

Kaizen is a Japanese business philosophy that refers to:

Answer: Continuous, incremental improvement involving all employees

Kaizen ('change for the better') is a philosophy of ongoing small, incremental improvements made by all employees at every level of the organization.

A master budget in operations typically includes:

Answer: All functional area budgets integrated into a comprehensive financial plan

The master budget integrates all subsidiary budgets (sales, production, direct materials, direct labor, overhead, SG&A, capital) into a comprehensive financial plan including projected financial statements.

Project risk management involves which of the following key steps?

Answer: Identifying, assessing, and developing responses to potential project risks

Project risk management is a structured process of identifying potential risks, analyzing their probability and impact, and developing strategies to avoid, mitigate, transfer, or accept them.