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Data Analysis & Decision Making Flashcards

7 cards from real COM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Data Analysis & Decision Making flashcards as text
  1. An operations manager reviews a box-and-whisker plot of supplier delivery times. What does the interquartile range (IQR) represent?

    Answer: The spread of the middle 50% of delivery time observations

    The IQR is the difference between the 75th and 25th percentiles, capturing the spread of the central half of the data while ignoring extremes.

  2. What is the key difference between leading and lagging indicators in operations performance measurement?

    Answer: Leading indicators predict future performance while lagging indicators measure past results

    Leading indicators (e.g., training completion, maintenance compliance) signal future outcomes, while lagging indicators (e.g., defect rates) reflect historical results.

  3. A production facility's OEE (Overall Equipment Effectiveness) score is 62%. Which three components are multiplied to calculate OEE?

    Answer: Availability, Performance, and Quality

    OEE = Availability × Performance × Quality, measuring equipment effectiveness across planned uptime, speed, and defect-free output.

  4. When analyzing operational data, what is the danger of only focusing on average (mean) performance metrics?

    Answer: Averages can mask high variability and outliers that indicate process instability

    The mean can appear acceptable even when extreme values indicate serious process problems, making variability measures equally important.

  5. A logistics manager wants to determine if there is a linear relationship between delivery distance and shipping cost. Which tool should be used first?

    Answer: Scatter plot

    A scatter plot visualizes the relationship between two continuous variables, helping identify whether a linear or other pattern exists before applying regression.

  6. In operations management, what is 'analysis paralysis' and how should it be avoided?

    Answer: Delaying decisions by over-analyzing data; avoided by setting decision deadlines and using satisficing

    Analysis paralysis occurs when excessive data collection delays necessary decisions; setting time-bound criteria and accepting 'good enough' solutions helps managers act.

  7. An operations manager must allocate limited budget across five improvement projects. Which analytical method optimally allocates constrained resources to maximize total benefit?

    Answer: Benefit-cost ratio ranking with capital rationing

    Ranking projects by benefit-cost ratio and selecting the highest-ratio projects until the budget is exhausted maximizes total return under capital constraints.