BEC Operations Management and Process Improvement 2

Question 1

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

Accepted Answer

The binding constraint that limits the system's overall output

Answer

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.

Question 2

Lean manufacturing primarily focuses on eliminating:

Accepted Answer

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

Answer

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

Question 3

Supply chain management coordinates which of the following activities?

Accepted Answer

Procurement, production, inventory, logistics, and customer delivery

Answer

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

Question 4

Kaizen is a Japanese business philosophy that refers to:

Accepted Answer

Continuous, incremental improvement involving all employees

Answer

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

Question 5

A master budget in operations typically includes:

Accepted Answer

All functional area budgets integrated into a comprehensive financial plan

Answer

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.

BEC - Business Environment and Concepts Practice Test

BEC - Business Environment and Concepts Practice Test

BEC Operations Management and Process Improvement 2