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Which formula would compute process velocity?
A. Output / input
B. Actual output / standard output
C. Throughput time / value-added time
D. Time a resource is used / time a resource is available
Answer: C
Explanation:
Process velocityis computed using the ratio:
Process Velocity = Throughput Time / Value-Added Time
This metric measures how efficiently time is used within a process. A high ratio indicates excessivenon- value-added time, such as waiting, moving, or rework.
Operations Management focuses on reducing throughput time while maximizing value-added activities.
Process velocity highlights inefficiencies that are often invisible in traditional productivity measures.
The other formulas measure different concepts:
* Resource utilization (A)
* Performance efficiency (B)
* Productivity (D)
A low process velocity (closer to 1) indicates a lean, efficient process, while high values suggest opportunities for improvement.
NEW QUESTION # 60
What is the third basic element in the just-in-time (JIT) system if the first element is total quality management (TQM) and the second is JIT manufacturing?
A. Capacity utilization
B. Quality circles
C. Simply organized inventory
D. Respect for people
Answer: D
Explanation:
The third foundational element of theJust-In-Time (JIT) systemisrespect for people.
JIT is not merely a production technique; it is asocio-technical systembuilt on:
* Total Quality Management (TQM)
* JIT manufacturing (waste elimination, pull systems)
* Respect for people
Respect for people emphasizes:
* Employee involvement
* Continuous improvement (Kaizen)
* Training and skill development
* Empowerment to stop processes and solve problems
Operations Management recognizes that JIT cannot function without engaged, knowledgeable employees.
Workers are expected to identify problems, suggest improvements, and maintain quality at the source.
The other options are tools or outcomes, not core principles. Respect for people integrates human capability with operational excellence, making JIT sustainable and effective.
NEW QUESTION # 61
Which total quality management (TQM) process consists of 13 published standards and guidelines?
A. ISO 1400
B. ISO 9001
C. ISO 9000
D. ISO 9002
Answer: C
Explanation:
ISO 9000is the family of international quality management standards consisting of13 published standards and guidelinesthat define the fundamentals and vocabulary of quality management systems.
The ISO 9000 family provides asystematic frameworkfor ensuring consistent processes, customer satisfaction, and continuous improvement across organizations. It does not certify products; rather, it certifies that an organization'sprocesses are controlled, documented, and continuously improved.
Key distinctions:
* ISO 9000: Overview, concepts, and terminology
* ISO 9001: Certification standard specifying requirements
* ISO 9002: (Now obsolete) Previously focused on production and installation
* ISO 1400: Environmental management standards, not quality
Operations Management values ISO 9000 because it promotes:
* Process standardization
* Documentation and traceability
* Preventive rather than corrective quality control
* Consistency across suppliers and partners
ISO 9000 supports TQM by embedding quality intoorganizational systems, not relying on inspection alone.
Certification signals reliability and discipline to customers and global partners, especially in supply chains.
By establishing a common quality language and structure, ISO 9000 enables organizations to align operations, reduce variability, and sustain long-term operational excellence.
NEW QUESTION # 62
Which two factors affect a service location decision? Choose 2 answers
A. Quality-of-life issues
B. Warehouse storage
C. Proximity to customers
D. Closeness to manufacturing facilities
Answer: A,C
Explanation:
For service organizations,proximity to customersandquality-of-life issuesare two dominant factors in location decisions.
Unlike manufacturing, service operations requiredirect customer contact. Being close to customers reduces travel time, improves convenience, enhances responsiveness, and increases perceived service quality.
Examples include hospitals, banks, restaurants, and consulting offices, where location accessibility directly influences demand.
Quality-of-life issues-such as education, healthcare, housing, safety, climate, and cultural amenities-affect the ability toattract and retain skilled service employees. Human capital is a critical input in service operations, and workforce availability often outweighs cost considerations.
The other options are less relevant:
* Manufacturing proximity matters mainly for production facilities
* Warehouse storage is a logistics concern, not a service driver
Operations Management emphasizes that service location decisions balancecustomer accessandemployee satisfaction, since both directly influence service quality, productivity, and long-term sustainability.
NEW QUESTION # 63
Which group of keywords or phrases describes the critical role that marketing plays in the total quality management (TQM) process?
A. Reward employees; motivate staff performance; manage operations planned changes
B. Baseline for managing quality process; investment in preventative costs; budgeting
C. Review and recommend product changes; satisfy customer needs; open communication
D. Enhance competition; understand consumer preferences; maintain communication with operations
Answer: D
Explanation:
In Total Quality Management (TQM),marketing plays a critical boundary-spanning rolebetween customers and internal operations. The correct set of keywords-enhance competition; understand consumer preferences; maintain communication with operations-captures this role precisely.
From an Operations Management perspective, marketing is responsible foridentifying customer needs, expectations, and perceptions of quality. These insights become essential inputs for product design, process planning, and continuous improvement initiatives. Without accurate market information, operations risk producing outputs that meet specifications but fail to satisfy customers.
Marketing also enhances competitiveness by:
* Monitoring competitor offerings and quality levels
* Translating customer requirements into measurable quality attributes
* Supporting differentiation strategies based on quality, reliability, and service Equally important isongoing communication with operations. TQM emphasizes cross-functional integration, and marketing ensures that quality is defined externally (by customers) rather than internally (by engineers or managers alone). Feedback from customers-complaints, satisfaction surveys, returns, and warranty data-feeds directly into operational improvement cycles.
The other options fail to capture marketing's core function:
* Budgeting and preventive costs are managerial/financial roles
* Product change reviews are primarily engineering activities
* Employee rewards fall under human resources
Thus, marketing's TQM role is strategic, integrative, and customer-focused, ensuring that quality efforts align with market expectations and competitive realities.
NEW QUESTION # 64
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