CME CME Operations Management & Process Improvement 1 — Questions and Answers
Question 1: Which process improvement methodology focuses on reducing defects to fewer than 3.4 per million opportunities?
- Lean Manufacturing
- Six Sigma (Correct answer)
- Kaizen
- Total Quality Management
Correct answer: Six Sigma
Six Sigma aims to reduce process defects to fewer than 3.4 per million opportunities using DMAIC or DMADV frameworks.
Question 2: In operations management, what does the acronym 'JIT' stand for?
- Job Integration Technology
- Just-In-Time (Correct answer)
- Joint Implementation Tactic
- Job Inventory Tracking
Correct answer: Just-In-Time
JIT (Just-In-Time) is an inventory strategy that reduces waste by receiving goods only as they are needed in the production process.
Question 3: Which tool is commonly used in operations management to visually map the flow of materials and information in a production process?
- Gantt Chart
- Value Stream Mapping (Correct answer)
- PERT Chart
- Fishbone Diagram
Correct answer: Value Stream Mapping
Value Stream Mapping is a Lean tool that visually depicts every step in the flow of materials and information to identify waste and improvement opportunities.
Question 4: A manager wants to identify the most frequent causes of defects in a manufacturing process. Which tool would be most appropriate?
- Control Chart
- Scatter Diagram
- Pareto Chart (Correct answer)
- Run Chart
Correct answer: Pareto Chart
A Pareto Chart applies the 80/20 rule to prioritize the most significant defect causes, helping managers focus improvement efforts effectively.
Question 5: What is the primary goal of the 'Theory of Constraints' (TOC) in operations management?
- Eliminate all inventory
- Identify and remove the bottleneck limiting system output (Correct answer)
- Reduce labor costs
- Implement automation throughout production
Correct answer: Identify and remove the bottleneck limiting system output
TOC focuses on identifying and exploiting the single constraint (bottleneck) that limits an organization's ability to achieve its goal.
Question 6: Which operations management concept refers to the maximum output a process can produce in a given period under ideal conditions?
- Effective Capacity
- Design Capacity (Correct answer)
- Actual Output
- Utilization Rate
Correct answer: Design Capacity
Design capacity is the maximum theoretical output achievable under ideal conditions, serving as the upper limit for planning purposes.
CME CME Operations Management & Process Improvement 1
Which process improvement methodology focuses on reducing defects to fewer than 3.4 per million opportunities?