CME Operations Management & Process Improvement Flashcards

A manager uses statistical control charts to monitor a process. If data points fall outside the control limits, this indicates:

Answer: A special cause of variation requiring investigation

Points outside control limits signal special-cause variation — an unusual event or systemic issue that warrants investigation and corrective action.

What is the primary purpose of an 'Operations Dashboard' in a management context?

Answer: Provide real-time visibility into key operational metrics

An operations dashboard consolidates real-time key performance indicators so managers can quickly assess performance and make informed decisions.

Which inventory management model determines the order quantity that minimizes total holding and ordering costs?

Answer: Economic Order Quantity (EOQ)

The EOQ model calculates the optimal order quantity that balances inventory holding costs against ordering costs to minimize total inventory expense.

Business Process Reengineering (BPR) differs from incremental improvement in that it:

Answer: Radically redesigns processes from scratch for dramatic improvement

BPR involves fundamentally rethinking and redesigning business processes to achieve dramatic improvements in cost, quality, speed, or service.

In project operations, which scheduling technique shows task dependencies and identifies the critical path?

Answer: PERT/CPM Network Diagram

PERT/CPM network diagrams map task dependencies and calculate the critical path — the longest sequence of tasks determining the minimum project duration.

A CME candidate is reviewing a facility layout decision. Which layout type groups similar equipment or functions together, best suited for low-volume, high-variety production?

Answer: Process Layout

A process layout (functional layout) groups similar machines or functions together, offering flexibility for custom, low-volume, high-variety jobs.