Introduction COM Certification Hand Book

AIBMC American Institute for Business Management and Communication

COM Exam Hand Book

COM®
Certified Operations Manager

Second Edition
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AIBMC American Institute for Business Management and Communication. All rights reserved.
 Introduction COM Certification Hand Book

Introduction
Welcome to the COM Exam prep, second edition. Whether this is the first Exam Prep book you’ve ever
picked up, or whether you’ve used our exam prep resources before, you’ll find that this book will
provide valuable information and perspective insights, as well as helpful suggestions as you prepare to
take the Certified Operations Manager (COM) exam.

About the Exam

Performing Operations Management related transactions well is important – but, by itself, it’s not
enough. Those of us who truly want to succeed in the ever-evolving Operations Management
Profession must thoroughly understand the Operations Management body of knowledge and be well
equipped and well prepared to apply that knowledge in effective, meaningful, impactful and
appropriate ways. Passing the COM exam is one way that Operations Management professionals can
demonstrate to themselves, their employers, and their potential employers that they do, in fact,
possess this fluency, knowledge and application.

It also serves to establish a foundation of credibility with other Operations Management colleagues—
in a sense, even before one is personally acquainted with them. Separate and apart from how others
might perceive this accomplishment, earning the COM certification also represents a level of
professionalism and will inspire a measure of self-confidence that is uniquely attainable through this
achievement.

The COM exam is administered by the American Institute for Business Management and
Communication. AIBMC is one of the most if not the most preeminent professional organization with
which Business, Operations, Quality and Business Communication professionals can align themselves
to. AIBMC enjoys the full measure of respect that comes along with its close affiliation with many of
the well known Business Management, Quality and Operations Management Communication
Associations. Since 1970, AIBMC certified more than 80000 business professionals and in so doing has
contributed immeasurably to the advancement of the profession.

COM Preparation Hand Book, 2nd Edition

An AIBMC Professional Publication, All rights reserved.

All rights reserved to AIBMC (American Institute for Business Management and Communication). No
part of this book shall be reproduced, stored in a retrieval system, or transmitted by any means,
electronic, mechanical, photocopying, recording or otherwise, without written permission from the
publisher. No patent liability is assumed with respect to the use of the information contained herein.
Although every precaution has been taken in the preparation of this book, the publisher and author
assume no responsibility for errors or omissions, Nor is any liability for damages resulting from the use
of the information contained herein.

For more detailed information about exam requirements, fees, dates and deadlines please go to
www.aibmc.org.
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AIBMC American Institute for Business Management and Communication. All rights reserved.
 Introduction COM Certification Hand Book

General Study Tips

There’s no one “best” way to study for the COM exam. There are, however, some general test-
preparation strategies and guidelines that have worked well for many test takers, and that might work
well for you, too.

Study Strategies
Although each of us learns and processes information somewhat differently, certain basic learning
principles apply to everyone. You might find these principles helpful to keep in mind as you develop
your own personal study plan. For instance, one important principle is that learning can be broken
into various depths:

• Recognition (of terms, for example) represents a somewhat superficial or “surface” level of learning
in which you rely on a prompt of some sort to elicit recall.

• Comprehension or understanding (of concepts behind the terms, for example) represents a deeper
level of learning than recognition does.

• Analysis of a concept, along with the ability to apply your newly expanded understanding of that
concept, represents an even deeper level of learning.

This is not to say that recognition is not important, It is – particularly for multiple choice exams, and
particularly for the CQC exam.

Note:
The COM exam consists only of multiple choice questions. Questions address strategic applications
and address issues that needs analysis and focused answers.

In addition to ensuring that you are able to recognize terms, you should build a study strategy
through which you will develop the ability to process, digest, and absorb the materials at a level or
two deeper than that. In this way, you’ll know that material so thoroughly that you’ll be able to
perform well on a variety of types of questions – for instance, on questions that require you to apply
your knowledge to specific problems, as well as on questions that only require you to be able to
recognize and identify the correct (meaning, the “best”) answer from among a series of possible
answers. The COM exam contains questions of both types, along with a variety of other types of
questions but mostly questions that need strategic analysis and application.

Commonsense Strategies
As you study your test prep materials, use good common sense. For instance, study when you are
alert. Reduce or eliminate distractions. And take breaks when you get tired. “Pushing through” when
your body really needs a break can sometimes result in frustration, anxiety, and physical exhaustion –
non of which will enhance your performance on the exam.
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AIBMC American Institute for Business Management and Communication. All rights reserved.
 Introduction COM Certification Hand Book

Table of Contents at a glance

Module 1 Operations Strategies Page 5

Module 2 Quality and Operations Page 13

Module 3 Decision Making and Operations Page 14

Module 4 Just-in-Time Operations Page 15

Module 5 Product Demand Management and Forecasting Page 26

Module 6 Product, Service and Process Design Page 48

Module 7 Physical Supply Chain Management Page 50

Module 8 Manufacturing Planning and Scheduling Page 76

Module 9 Manufacturing Capacity Management Page 106

Module 10 Inventory Management Page 113

Module 11 Materials Management Page 136

Module 12 Purchasing Management Page 149

Module 13 Electronic Procurement Page 196

Module 14 Logistical Management Page 206

Module 15 Service Strategy Page 210

Module 16 Service Capacity Management Page 218

Module 17 Waiting Time Management in Services Page 222

Module 18 Managing Service Experiences Page 224

Module 19 Engineering and Operations Page 228

Module 20 Economics and Operations Page 230

Module 21 Law and Purchasing Page 232

Module 22 Quantitative Techniques and Operations Page 248

Module 23 Ethics and Purchasing Page 249

Module 24 International Issues Page 255

Study Questions, Answers and Explanations Page 264

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