DBA Operations Management and Supply Chain Strategy 1 — Questions and Answers
Question 1: What is the core principle of 'lean manufacturing' as applied in US operations management?
- Maximizing production output at any cost
- Eliminating waste (muda) to improve flow and create value for customers (Correct answer)
- Reducing workforce to minimize labor costs
- Outsourcing all non-core activities
Correct answer: Eliminating waste (muda) to improve flow and create value for customers
Lean manufacturing, derived from the Toyota Production System, focuses on identifying and eliminating all forms of waste — overproduction, waiting, transportation, inventory, motion, over-processing, and defects.
Question 2: In supply chain management, what does 'the bullwhip effect' describe?
- The cracking sound in a whip-like conveyor belt
- The amplification of demand variability as orders move up the supply chain from retailer to manufacturer (Correct answer)
- A management technique for motivating workers
- Rapid market fluctuations caused by social media
Correct answer: The amplification of demand variability as orders move up the supply chain from retailer to manufacturer
The bullwhip effect occurs when small fluctuations in consumer demand cause increasingly larger oscillations in orders at each upstream stage of the supply chain.
Question 3: What is 'Six Sigma' in operations management?
- A project management methodology for IT teams
- A data-driven quality management approach targeting no more than 3.4 defects per million opportunities (Correct answer)
- A financial reporting standard for manufacturers
- A supply chain optimization software platform
Correct answer: A data-driven quality management approach targeting no more than 3.4 defects per million opportunities
Six Sigma is a disciplined, statistical methodology (using DMAIC: Define, Measure, Analyze, Improve, Control) aimed at reducing process variation and defects to near-zero levels.
Question 4: Which inventory management model determines the optimal order quantity that minimizes total inventory costs?
- ABC analysis
- Economic Order Quantity (EOQ) model (Correct answer)
- Just-in-Time (JIT) system
- Material Requirements Planning (MRP)
Correct answer: Economic Order Quantity (EOQ) model
The EOQ model balances ordering costs against holding costs to find the quantity that minimizes the total cost of managing inventory.
Question 5: In US supply chain management, what is 'nearshoring'?
- Moving production to the cheapest offshore location globally
- Relocating production or sourcing to geographically close countries (e.g., Mexico for US firms) (Correct answer)
- Bringing manufacturing back to the US from overseas
- Establishing regional distribution centers within the US
Correct answer: Relocating production or sourcing to geographically close countries (e.g., Mexico for US firms)
Nearshoring moves operations to nearby countries rather than distant locations, reducing lead times, transportation costs, and supply chain risk while maintaining some cost advantages.
Question 6: What is 'total quality management' (TQM)?
- An inventory counting system
- An organization-wide philosophy and set of practices focused on continuous quality improvement involving all employees (Correct answer)
- A government-mandated quality inspection program
- A software quality assurance testing protocol
Correct answer: An organization-wide philosophy and set of practices focused on continuous quality improvement involving all employees
TQM is a management approach where every member of the organization participates in improving processes, products, services, and culture to enhance customer satisfaction.
DBA Operations Management and Supply Chain Strategy 1
What is the core principle of 'lean manufacturing' as applied in US operations management?