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CHAPTER 8: OPERATIONS MANAGEMENT WITH LEAN AND SIX SIGMA questions with correct answers 100% 2024

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CHAPTER 8: OPERATIONS
MANAGEMENT WITH LEAN AND SIX
SIGMA questions with correct answers
100% 2024
Operation Management refers to managing the process to ___________, in alignment with the
company's business strategy as efficiently and effectively as possible, while also controlling costs. -
Correct Answer convert resources into goods and services

Manufacturing involves processing or making __________, especially by means of a large-scale industrial
operation, ex. mass production - Correct Answer raw materials/components into a finished product;

includes the machines used, the personnel involved, inventory handling, warehousing, etc.

Manufacturing Management is the - Correct Answer management of all the processes which are
involved in manufacturing.

Companies must develop a manufacturing strategy that suits the _________ that they produce, their
______, and their _____. - Correct Answer types of products, customer's expectations, and their
strengths

Make to Stock (MTS) is - Correct Answer manufacturing products for stock based on demand forecasts

=> Push System

=> accurate forecast prevents creating excess inventory and avoid stock outs

=>most daily necessities such as foods, sundries, and textiles

The challenge of MTS is to _____________. - Correct Answer avoid having excess inventory;

,companies with MTS model tend to hold more inventory in case they need it; struggle to ensure that
inventory levels don't get out of control

Make to Order (MTO) is - Correct Answer manufacturing strategy where production starts ONLY when
the customer places an order;

=>creates additional wait time for customer but allows for customized products

The MTO strategy relieves the problems of _________ that is common in MTS strategy - Correct Answer
excessive inventory;

=> however not appropriate for all types of product; appropriate for highly configure products such as
aircraft, ocean vessels, bridges, or products that are very expensive to keep in inventory

Assemble to Order (ATO) is - Correct Answer manufacturing strategy where products ordered are put
together quickly and are customizable to a certain extend

=> requires basic parts for the product already manufactured but not yet assembled

=> once order received, parts are assembled quickly into the finished product

ATO is a hybrid strategy attempting to combine the benefits of both ______ and _____ strategies. -
Correct Answer MTS and MTO; getting products to customers quickly while allowing for some
customization to take place

Engineer to Order (ETO) is - Correct Answer manufacturing strategy where product is Designed,
Engineered, and Built to the customer's specifications after receipt of the order;

=> building a unique product every time; may be some common components but the finished product is
different each time

In the ETO strategy, ________ can be very high. - Correct Answer cost of poor quality;

, the warranty costs and the cost of rework to replace an item in a complex assembly, can have a serious
negative effect on profit margins

Based on the common characteristics in manufacturing processes, they can be grouped into Two Broad
Categories - Correct Answer Intermittent Processes

=> used to produce a large variety of products with different processing requirements in Lower Volumes

Repetitive Processes

=> used to produce one, or a few, standardized products in High Volumes

(Intermittent) Project Process - Correct Answer Product Variety: Very High

Volume: Very Low

Strategy: ETO/MTO

Customer LT: Very Long

(Intermittent) Batch Process - Correct Answer Product Variety: High

Volume: Low

Strategy: MTO/ATO/MTS

Customer LT: Long

(Repetitive) Line Process - Correct Answer Product Variety: Limited

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