30 percentage Mcq

70 percentage structure


Chapter 1
Focus on definition of production or productivity
Productivity challenges and
New challenges in operation management
The international Operational strategies

Chapter 4 operation strategy
Mainly MCQ
Step in forecasting system
The classification and duration in forecasting time horizon
Qualitative forecasting technique

Chapter 5 or topic 4
The objective of Product decision
The Document needed for production
New product opportunities

Chapter 6 or topic 5
qualitative management
Definition of quality and Total quality management
Category of cost
Tools in TQM
Major variable of cost

Chapter 12
Functions of Inventory
Types of inventory
Independence vs dependence demand

Chapter 1

Production
Production is the creation of goods and services which measure of output only and not a
measure of efficiency
Production refers to the volume, value or quantity of goods and services produced by a
worker, plant, firm or economy. Its the sum total of the results achieved by the various
factors together

Productivity
Productivity shows us the efficiency of the production by dividing outputs with inputs.
Productivity is the ratio of outputs (goods and services) divided by the inputs (resources
such as labor and capital) Which shows us the efficiency of the production.

New Challenges in OM
From To
Local or national focus Global focus
Batch shipments Just-in-time
Low bid purchasing Supply-chain partnering
Lengthy product development Rapid product development, alliances
Standard products Mass customization
Job specialization Empowered employees, teams


The international Operational strategies

International Strategy
uses exporting and licensing usually without opening a branch in other
country and solely based on global with low local responsiveness.
Multidomestic Strategy
decentralized authority which adjust to local preferences accordingly with
little or none interference from home country
For example: franchise, joint ventures, subsidiaries
Global Strategy
Centralization, have economic of scale, uses cross-cultural learning,
and have standardize product which is not depend on local preference
Transnational Strategy
Combination of multidomestic strategy and global strategy which involved
in having a central corporate facility but also giving decision-making, R&D
and marketing powers to each individual foreign market.
o to exploit many features of strategy, economies of scale, cross-
cultural learning
o The best strategy among these four

Chapter 4
What is the Step in Forecasting?
1) Determine the use of the forecast

2) Select the items to be forecasted

3) Determine the time horizon of the forecast

4) Select the forecasting model(s)

5) Gather the data

6) Make the forecast

7) Validate and implement results

Define and explains Forecasting Time Horizons
1. Short-range forecast
a. Up to 1 year, generally less than 3 months
b. Purchasing, job scheduling, workforce levels, job assignments,
production levels
2. Medium-range forecast
a. 3 months to 3 years
b. Sales and production planning, budgeting
3. Long-range forecast
a. 3 ++ years
b. New product planning, facility location, research and development

Qualitative forecasting technique
1) Jury of executive opinion method
a) Involves small group of high-level experts and managers estimates demand by
working together using their experience
2) Delphi method
a) Interactive forecasting method which involved in panel of experts such as Decision
makers, Staff and Respondents to forecast demand using
3) Sales force composite
a) Using total amount of each salesperson estimated sales in each region to predict
future demand for a good or service.
4) Consumer Market Survey
a) uses interviews and surveys to know their purchasing plans.

Chapter 5

What is the objective of Product decision
The objective of the product decision is to develop and implement a product
strategy that meets the demands of the marketplace with a competitive advantage
Anything that can be offered to a market for attention, acquisition, use or
consumption and that might satisfy a want or need.
Such as Physical object, service, person, place, organization, idea
What is the document needed for production
1) Assembly Drawing
a) Shows how to assembly the product
2) Assembly Chart
a) Show the flow of components into subassemblies and ultimately into final
product
3) Route Sheet
a) Shows the operations and times needed to produce a component
4) Work Order
a) Instruction given to produce a given quantity of a particular item usually
to a schedule
5) Engineering Change Notice
a) A correction or modification to a products definition or documentation
(1) Engineering
(2) Bill of material

New Product Opportunities
1. Understanding the customer
1. By understand the customer you know what they want.
2. Economic change
3. Sociological and demographic change
4. Technological change
5. Political/legal change
6. Market practice, professional standards, suppliers, distributors

Chapter 6
Quality Management


What is Quality? Define Quality
The totality of features and characteristics of a product or service that bears on its ability to
satisfy stated or implied needs
Quality is about meeting the needs and expectations of customers

What is total quality management (TQM)
Total quality management (TQM) is an approach to long-term success through customer
satisfaction by improving its ability to deliver high-quality products and services.
consists of organization-wide efforts to install and make permanent a climate in which an
organization continuously improves its ability to deliver high-quality products and services to
customers.

What are the costs of quality?
1. Prevention costs
a. reducing the potential for defects
2. Appraisal costs
a. evaluating products, parts, and services
3. Internal failure
a. producing defective parts or services before delivery
4. External costs
a. defects discovered after delivery

Tools for TQM total quality management
Check Sheet: An organized method of recording data
1) Scatter graph
a) A graph of the value of one variable vs. another variable
2) Pareto Chart
a) : A graph to identify and plot problems or defects in descending order of frequency
3) Flowchart (Process Diagram)
a) A chart that describes the steps in a process
4) Statistical Process Control Chart
a) A chart with time on the horizontal axis to plot values of a statistic
5) Cause-and-Effect Diagram:
a) A tool that identifies process elements (causes) that might affect an outcome
6) Histogram
a) A distribution showing the frequency of occurrences of a variable

Chapter 12
What is the Functions of Inventory?
1. To decouple the firm from variations in demand and provide a
stock of goods that will provide a selection for customers
1. To meet anticipated customer demand
2. to protect against shortage
2. to take advantage of quantity discount
3. to hedge against inflation
4. To separate various parts of the production process
http://ids355.wikispaces.com/Ch.12+Inventory+Management



List down and explains the types of inventory
1) Raw material
a) Purchased but not processed
2) Work-in-process
a) Undergone some change but not completed
b) A function of cycle time for a product
3) Maintenance/repair/operating (MRO)
a) Necessary to keep machinery and processes productive
4) Finished goods
a) Completed product awaiting shipment

What is the different between Independence and dependence demand
Independent demand
the demand for item is independent of the demand for any other item in
inventory
has no relationship with the demand for any other item.
a furniture company may sell products like couches,
which are sold independently. People dont need to buy
anything else to use a couch, nor do they need to
purchase a couch in order to use another item
Dependent demand
the demand for item is dependent upon the demand for some other item
in the inventory
company may also sell kitchen chairs, which usually
purchased to go with a kitchen table, which is considered the
parent item. The practice of selling both items together in most
cases creates a relationship between the two.