Operations-Management Reliable Exam Sims, Operations-Management Latest Dumps Sheet
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WGU Operations Management (C215, VDC2) Sample Questions (Q65-Q70):
NEW QUESTION # 65
Why is capacity requirements planning (CRP) important?
- A. It enables an assessment of employee production efficiency.
- B. It provides the ability to compare available production capabilities to the planned workload.
- C. It creates a transparent view of lead time and overtime usage in work centers.
- D. It coordinates availability of materials for production processes.
Answer: B
Explanation:
Capacity Requirements Planning (CRP) is important because itcompares available production capacity to planned workloads, ensuring feasibility.
Once demand has been translated into production and material plans, CRP validates whether:
* Machines are available
* Labor hours are sufficient
* Work centers are not overloaded
Without CRP, organizations risk releasing production plans that cannot be executed, resulting in:
* Bottlenecks
* Overtime
* Missed delivery dates
* Poor resource utilization
The incorrect options describe other functions:
* Employee efficiency is evaluated through performance metrics
* Lead time transparency is a scheduling outcome, not CRP's core purpose
* Material coordination is handled by MRP
CRP ensures alignment betweenwhat is plannedandwhat is possible, making it a critical link between planning and execution in Operations Management.
NEW QUESTION # 66
Which factor determines how long it takes a qualified operator to perform a duty of the job requirements under the assumption that the operator is working at a sustainable pace with the proper tools for the process?
- A. Standard time
- B. Observed time
- C. Normal time
- D. Performance time
Answer: A
Explanation:
Standard timeis the measure that determines how long it should take a qualified operator to perform a jobat a sustainable pace using proper tools and methods.
In Operations Management and work measurement, standard time represents theallowed timeto complete a task, including:
* Normal time (observed time adjusted for performance rating)
* Allowances for fatigue
* Personal needs
* Unavoidable delays
Standard time is essential for:
* Scheduling work
* Determining labor requirements
* Establishing production standards
* Capacity planning
* Incentive wage systems
The other options represent intermediate concepts:
* Observed timeis the raw measured time
* Normal timeadjusts observed time for performance rating
* Performance timeis not a standard OM term
By incorporating allowances, standard time ensures that expectations arerealistic and sustainable, protecting both productivity and employee well-being. It is a foundational element of work system design and labor planning.
NEW QUESTION # 67
What is the measure of how much supply chain is owned or operated by the manufacturer?
- A. Horizontal integration
- B. Vertical integration
- C. Insource integration
- D. Outsource integration
Answer: B
Explanation:
Vertical integrationmeasures how much of the supply chain isowned or controlled by the manufacturer.
In Operations and Supply Chain Management, vertical integration refers to the degree to which a firm performs activities upstream (suppliers) or downstream (distribution, retail) rather than relying on external partners. A highly vertically integrated company may own raw material sources, manufacturing plants, distribution centers, and even retail outlets.
Vertical integration affects:
* Cost structure
* Control over quality
* Lead times
* Supply reliability
* Strategic flexibility
The other options are not standard measures:
* Horizontal integration refers to acquiring competitors at the same stage
* "Insource" and "outsource integration" are not formal OM terms
Operations strategy evaluates vertical integration carefully because while it increases control, it also:
* Requires high capital investment
* Reduces flexibility
* Increases managerial complexity
Thus, vertical integration directly quantifies how much of the supply chain the manufacturer owns or operates.
NEW QUESTION # 68
What are two reasons a company might be hesitant to provide overtime as a capacity-based option?
Choose 2 answers
- A. Overtime results in a buildup of excess inventory.
- B. Overtime decreases the labor cost per unit.
- C. Overtime is typically a 50% wage premium.
- D. Overtime is not a long-term solution.
Answer: C,D
Explanation:
Companies may hesitate to use overtime becauseit is not a long-term solutionandit carries a wage premium
, typically around50% higher than regular pay.
Overtime can quickly increase capacity, but prolonged use leads to:
* Employee fatigue
* Quality deterioration
* Increased absenteeism
* Higher error rates
Additionally, overtime raises labor costs substantially, increasing unit production cost and reducing profitability.
The incorrect options are misleading:
* Overtime does not necessarily build excess inventory
* Overtime increases, not decreases, labor cost per unit
Operations Management views overtime as atemporary capacity buffer, appropriate for short demand spikes but risky if used continuously.
NEW QUESTION # 69
How does inventory management differ for manufacturing organizations compared to service organizations?
- A. Manufacturing organizations must keep large amounts of product on hand at all times, regardless of demand.
- B. Service organizations must maintain work-in-progress types of inventory.
- C. Service organizations are concerned with managing idle time due to material and component shortages.
- D. Manufacturing organizations must maintain tangible inventory.
Answer: D
Explanation:
Manufacturing organizations differ from service organizations because they mustmaintain tangible inventory
.
In manufacturing, inventory includes:
* Raw materials
* Work-in-progress
* Finished goods
These physical items require storage, handling, tracking, and capital investment. Inventory management is therefore a central operational concern in manufacturing.
Service organizations, by contrast, typically do not produce tangible goods. Their primary "inventory" consists of:
* Labor availability
* Time
* Capacity
Idle capacity in services cannot be stored for future use, making demand management more critical than inventory storage.
The incorrect options misrepresent service and manufacturing realities:
* Services do not maintain physical WIP
* Manufacturers do not hold inventory regardless of demand
* Idle time in services is not caused by material shortages
Operations Management highlights inventory as afundamental structural differencebetween manufacturing and service systems.
NEW QUESTION # 70
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