CME CME Operations Management & Process Improvement 2

Question 1

In supply chain management, what does 'bullwhip effect' refer to?

Accepted Answer

Amplification of demand fluctuations as orders move upstream

Answer

The bullwhip effect describes how small demand variations at the retail level get increasingly amplified as orders travel upstream through the supply chain.

Question 2

Which quality management framework uses Plan-Do-Check-Act (PDCA) as its core improvement cycle?

Accepted Answer

Deming Cycle / Kaizen

Answer

The PDCA cycle, also called the Deming Wheel, is central to Kaizen and continuous improvement philosophies in quality management.

Question 3

A company tracks the ratio of actual output to effective capacity. What operations metric is this?

Accepted Answer

Efficiency

Answer

Efficiency is the ratio of actual output to effective capacity, measuring how well a process performs relative to its realistic maximum.

Question 4

What is 'poka-yoke' in the context of quality management?

Accepted Answer

An error-proofing technique that prevents defects at the source

Answer

Poka-yoke is a Lean quality technique that uses design features or mechanisms to prevent errors before they occur or to make defects immediately obvious.

Question 5

Which forecasting method calculates demand estimates based on the average of several past periods, with equal weight given to each?

Accepted Answer

Simple Moving Average

Answer

Simple Moving Average calculates the arithmetic mean of demand over a fixed number of past periods, treating each period with equal weight.

(CME) Certified Management Executive Practice Test

(CME) Certified Management Executive Practice Test

CME CME Operations Management & Process Improvement 2