C720 Operations and Supply Chain Management Practice Questions - Set 5 - Part 3

Test your knowledge of Operations and Supply Chain Management concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: When using a cause-and-effect diagram, which category is typically NOT included as a primary factor?

a) Materials

b) Methods

c) Environment

d) Inventory levels

Question 42: In the Theory of Constraints (TOC), which of the following is the primary focus to optimize production?

a) Reducing total production time

b) Increasing throughput by addressing bottlenecks

c) Lowering the costs of raw materials

d) Enhancing product quality

Question 43: A company is implementing statistical methods to detect when its processes are nearing an unacceptable level of defects. This approach is known as:

a) Six Sigma

b) Lean manufacturing

c) Statistical Process Control (SPC)

d) Total Quality Management (TQM)

Question 44: A company using "cross-docking" in logistics is likely trying to:

a) Increase warehousing capacity

b) Reduce lead times by transferring goods directly from incoming to outgoing shipments

c) Store products longer in inventory

d) Improve product quality through inspections

Question 45: Which lean tool is used to analyze every step in a process to distinguish between value-added and non-value-added activities?

a) Value stream mapping

b) Control chart

c) Fishbone diagram

d) Run chart

Question 46: What is the primary function of Total Productive Maintenance (TPM) in a production facility?

a) To reduce setup times

b) To prevent machinery breakdowns through proactive maintenance

c) To improve employee productivity

d) To streamline production scheduling

Question 47: A company that uses standardized symbols to document and analyze a process flow is using which tool?

a) Value stream mapping

b) Flowchart

c) Pareto chart

d) Scatter plot

Question 48: When analyzing costs, which type of cost is directly associated with holding inventory in a warehouse?

a) Opportunity cost

b) Carrying cost

c) External failure cost

d) Setup cost

Question 49: In a dual-card Kanban system, what is the primary purpose of the production Kanban card?

a) Authorize the shipment of finished goods

b) Signal a new batch of items to be produced

c) Trigger an order for raw materials

d) Track daily production levels

Question 50: When calculating the total time it takes for a product to move through production from start to finish, this measure is known as:

a) Throughput

b) Cycle time

c) Lead time

d) Processing time

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