CSM CSM Operations & Supply Chain Management

Question 1

What is the primary focus of lean management?

Accepted Answer

Eliminating waste and creating more value for customers with fewer resources

Answer

Increasing headcount to maximize production output

Answer

Standardizing all processes across global operations

Answer

Reducing product variety to lower manufacturing complexity

Question 2

Which supply chain metric measures the average number of days a company takes to convert inventory into revenue?

Accepted Answer

Days inventory outstanding (DIO)

Answer

Gross margin return on investment

Answer

Perfect order rate

Answer

Supplier on-time delivery rate

Question 3

The 'just-in-time' (JIT) inventory system is designed to:

Accepted Answer

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

Answer

Build large safety stocks to prevent supply disruptions

Answer

Automate purchasing decisions using artificial intelligence

Answer

Synchronize production schedules across multiple international factories

Question 4

What does 'vertical integration' mean in supply chain strategy?

Accepted Answer

A company owning and controlling multiple stages of its supply chain

Answer

Coordinating multiple product lines within a single business unit

Answer

Organizing suppliers by quality tier from top to bottom

Answer

Implementing digital systems that connect all supply chain partners

Question 5

In operations management, 'process capability' refers to:

Accepted Answer

The ability of a process to produce output within specified quality limits consistently

Answer

The maximum number of employees a process can support

Answer

The speed at which a manufacturing line can be reconfigured for new products

Answer

Total investment required to upgrade existing production equipment

Question 6

Which approach to quality improvement focuses on reducing variation and defects to 3.4 defects per million opportunities?

Accepted Answer

Six Sigma

Answer

Total Quality Management (TQM)

Answer

Kaizen

Answer

ISO 9001 certification