OSCM
Simpler forecasting methods don't require _______________. Sophisticated models are _______________.
A lot of data, data intensive
Which of the following are NOT part of the Process-Improvement Trio?
ABC Classification
Which of the Process Improvement Trio should be employed first?
All of the above, you should employ them all at the same time
Business forecasting is the process of using _____________, _____________, ____________, and experience to make predictions and respond to various business needs.
Analytics, data, insights
Which of the following is Step 1 of the three-step proven path to employing the Process Improvement Trio?
Apply The theory of constraints to identify where you will get the biggest bang for your buck
Customizing basic models is an example of which process?
Batch Process
Which one of the following is NOT a process design?
Bulk Process
What is the maximum output your process can consistently produce over a period of time under normal operating conditions.
Capacity
In the __________ strategy, you can manipulate _________ to match supply and demand.
Chase; workforce size
What are some of the biggest challenges to effective order management?
Complexity, ownership and uncertainty
Research has shown that if you invest in which of the following activities, you will end up with an attitude of continuous and constant improvement.
Create Value for the customer; assure quality at the source
The Maximum output rate that a process can achieve under ideal conditions is what?
Design capacity
In process mapping, the following indicates a decision.
Diamond
In process mapping, the following denotes arrival into the process.
Double arrow
a single database surrounded by application programs that take data from the database and either conduct analysis or collect additional data for the firm.
ERP system
The output rate of a process during normal conditions is what?
Effective capacity
Increase the output of the bottleneck. Remove any non-value adding work or interruptions to the bottleneck. This describes which of the five focusing steps of Theory of Constraints?
Exploit
An ERP system could touch upon which of the following business functions?
Financial management Customer relationship management Cost, planning, and control E-commerce Business analytics & intelligence
Having good data is critical to building accurate forecasts. But, data availability isn't sufficient. You need to choose the right _______________ to make the most of your data.
Forecasting technique
Which of the following are discussed during the S&OP supply review meeting?
How to prevent stockouts Manufacturing capacity Supply chain inventory Logistics/DC capacity
Bottlenecks can usually be easily spotted. They are always busy, with no idle time. Work typically piles up in front of them. Subsequent activates are usually waiting on output from the bottleneck. This describes which of the five focusing steps of Theory of Constraints?
Identify
"People" are what part of the process?
Inputs and resources
What does a successful businesses do to insure that work is finished as expected?
It defines the workflow of tasks
What does process mapping do for you?
It helps you to confront the brutal facts It makes the brutal facts visible It helps you hold fact-based conversations It helps you to conduct a blameless autopsy
Suppose you are a costume manufacturer. You have been producing more products than needed in the summer, so that you would have enough inventory to meet the demand in October. In this scenario, you would be using which of the following strategies to meet market demand?
Level strategy
If your product is relatively new and your data is limited, your best option is to...
Look at sales history of a similar product and use qualitative data
When measuring forecast error, which forecasting error expresses the forecast as a percentage from the mean?
MAPE
When measuring forecast error, which forecasting error expresses the forecast error as a percentage from the mean?
MAPE
What is the difference between design capacity and effective capacity?
Maximum output rate that a process can achieve under ideal conditions vs. output rate of a process during normal conditions
Which of the following is NOT a value-added process?
New product development Engineering change orders Scheduling production Managing freight shipments None of the above, they are all value-added processes
The core benefit of an ERP system is that it:
Offers a single source of truth because it stores all data in one place
Which of the three processes involves carrying out the visions of the business?
Operational Processes
Which of the following is a cost associated with overstock situations?
Opportunity costs Holding costs Markdown costs Disposal costs
Which of the following are intangible benefits of collaborative planning?
Quicker implementation of new ideas More time for strategic planning More trust Better working relationship
Which of the following is used to align plans within your company?
S&OP
If your company's current goal is to minimize the order flow time in the manufacturing facility, you should probably adopt which of the following priority sequence rules:
Shortest processing time
Which of the following activities answer these 3 questions: who are your customers, what are their needs, and how is your company going to meet their needs better than anyone else?
Strategic business plan
Which of the following are parts of the classifications of processes?
Strategic, operational and enabler processes
To make CPFR successful, companies should engage in which of the following collaborative activities?
Strategy & planning Demand & supply management Execution Analysis
Synchronize all other (non-bottleneck) activities in the process to the bottleneck, ensuring that they are aligned with and support the bottleneck's needs. This describes which of the five focusing steps of Theory of Constraints?
Subordinate
In process mapping, each symbol denotes the following:
That something has changed
A forecast error is
The difference between what you predict and what actually happens.
S&OP is used to bring the customer-facing and supply-facing sides of your company together to get everyone to agree to which of the following?
The nature of the business environment and a single forecast
Which of the following emphasizes throughput accounting metrics?
Throughput, Inventory, Operating Expense
Why do you need to put process mapping into your decision-making toolkit?
To give everyone a better understanding of the process To ask questions To share ideas that help solve problems To get better solution
How did Toyota outproduce some of the largest carmakers in the world?
Toyota managed processes not functions
When KFC tested the market's reaction to the plant-based meat burgers at a franchise store in Atlanta, they sold out in 5 hours. If you were the CEO, you should consider using which of the following processes to communicate your constraints to the entire organization, so that your marketing team doesn't make promises to customers that your company can't deliver?
aggregate planning
Which of the following has a planning horizon within 6-18 months?
aggregate planning
Which of the following is a demand-focused option to match supply and demand?
backorders
Which of the following is not a capacity-focused option to match supply and demand?
backorders
The number of products you can produce on an assembly line in one shift is an example of what?
capacity
CPFR helps trading partners work together to build a single, agreed-upon forecast. CPFR argues that someone already knows what your company's sales will be. Who is that someone?
customers
you see a repeating pattern, but it doesn't recur regularly
cyclical
An ERP system is a set of distributed databases surrounded by application programs that take data from the database and either conduct analysis or collect additional data for the firm.
false
Backordering is a good option to match supply and demand because it has no trade-offs.
false
For seasonal products and services, the best option to align supply and demand is to build inventory.
false
Honda and Toyota have been mapping processes for 50 years to understand how a process works so that they can fix problems as they arise
false
In Shortest Processing Time, you process the order with the earliest due date.
false
In the DBR scheduling approach, the "drum" refers to the process of synchronizing the schedule of all other resources.
false
Integrated business planning involves linking or integrating sales and operations planning (S&OP) and time-phased trading partner planning (TPTP).
false
Process management is the art and science of designing work to get non-repeatable tasks done efficiently and effectively.
false
The aggregate planning contains critical information to guide lower-level scheduling and is the starting point of business planning.
false
The great thing about removing one constraint from the system is that the system no longer has resources limiting the capacity of the system.
false
The master production scheduling is updated every semester.
false
You overhear your colleagues in the production area say that, for next month, they need to produce 1,000 products of model A in the color red and 500 in the color blue, and 500 products model B in the color red and another 500 in the color green. Therefore, we can conclude that they are talking about the aggregate planning for next month.
false
the integration of two well-established business processes: Sales and Operations Planning (S&OP) and Collaborative Planning, Forecasting, and Replenishment (CPFR)
integrated business planning (IBP)
your data fluctuates around a consistent mean
level
In order for a company to win the "first moment of truth" it needs to have the right _______ at the right _______ at the right _______ at the lowest possible _______.
product, place, time, cost
During the Monday meeting, your boss asked which machine would have some idle time this week and who was responsible for the maintenance process. To his disappointment, you didn't have the answers right away. After the meeting, you decide to keep track of all the resources and personnel on a weekly basis from now on. Which of the following tools can best assist you?
scheduling Gantt charts
your data plot reveals a regularly repeating pattern
seasonal
Managers making decisions that help them achieve their short-term functional goals without taking into account other functions is called?
silo mentality
you look at a plot of your data and see an upward or downward pattern
trend
Aggregate planning helps you align your production capacity to market demand.
true
Almost every decision you make in business is based on a forecast.
true
Anyone who has access to the Gantt chart can quickly see how resources are being allocated.
true
Even the best forecasts are wrong.
true
Focus on the customer underlies the execution of an organization's strategy
true
If you want to catch new trends quickly and you are using exponential smoothing, your alpha should be larger than .5.
true
In aggregate planning, you need to consider how your strategy will affect other key dimensions of performance, not only costs.
true
Keeping the old systems alive in parallel during the transition to a new ERP system can help mitigate the downsides of unpredictability during implementation.
true
Manufacturing planning and control is a set of business processes that determine how you are going to use resources—e.g., capacity, equipment, people, and technology—to produce what your customers want when they want it.
true
Members of a product family all use the same set of production resources.
true
Predictions based on data are known as forecasts.
true
Processes are to businesses what narratives are to stories.
true
Production control decisions determine the flow of work into and through the production process.
true
Running legacy systems in parallel during the transition to a new ERP system can help mitigate problems during the implementation.
true
Simply applying ERP over existing processes is one of the challenges in implementing an ERP system.
true
Stockouts, also called an out-of-stock event, occur when demand for an item cannot be filled from existing inventory.
true
Suppose you are a production manager at Zara's manufacturing plant. It would make more sense to put men's t-shirt and women's t-shirt in a product family than to put socks and shoes in a product family.
true
The center of gravity model requires that you place locations on a grid coordinate system.
true
The goal of adopting a chase strategy is to keep the inventory level low, even down to zero.
true
You measure the capacity of your production process based on the process bottleneck.
true
Since we know our forecast is going to be __________, we _______________.
wrong, should frequently update it with the most current information
