BEC Operations Management and Process Improvement 1

Question 1

Just-In-Time (JIT) inventory management aims to:

Accepted Answer

Receive goods only as they are needed in the production process to minimize inventory costs

Answer

Maintain large safety stocks to prevent production stoppages

Answer

Order inventory in the largest possible batch to minimize ordering costs

Answer

Outsource all inventory management to third-party logistics providers

Question 2

The Economic Order Quantity (EOQ) model determines the order size that:

Accepted Answer

Minimizes total inventory costs including ordering and holding costs

Answer

Maximizes gross profit margin on inventory sales

Answer

Eliminates all stockout occurrences

Answer

Reduces the number of suppliers needed

Question 3

A bottleneck in operations management refers to:

Accepted Answer

The step in a process with the least capacity that limits overall throughput

Answer

Excess inventory accumulating at a workstation

Answer

A delay caused by supplier late deliveries

Answer

Equipment that operates above its designed capacity

Question 4

Total Quality Management (TQM) is characterized by:

Accepted Answer

Organization-wide commitment to continuous quality improvement and customer satisfaction

Answer

Quality inspection performed only at the end of the production process

Answer

A one-time quality improvement initiative led by senior management

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Setting a fixed acceptable defect rate as the quality standard

Question 5

Six Sigma's primary goal is to reduce:

Accepted Answer

Process variation and defects to near-zero levels (3.4 defects per million opportunities)

Answer

Employee headcount through automation

Answer

Material costs by 6% per year

Answer

The number of product variants in a product line

Question 6

A Gantt chart is primarily used in project management to:

Accepted Answer

Display project tasks, durations, and timelines visually across a calendar

Answer

Calculate the critical path and identify project dependencies

Answer

Allocate budget across project phases

Answer

Track employee hours worked on project activities