Deck 20: Managing the Value Chain, Information Technology and E-Business

Question 1

In a fixed-position layout the product under manufacture remains in one location and the required tasks and equipment are brought to it.

Answer 1

True

Question 2

Operations management problems can be hidden with large inventories.

Answer 2

True

Question 3

The fixed-position layout is one in which the equipment remains in one location and the products are brought to it.

Answer 3

False

Question 4

Flexible manufacturing,sometimes called lean production,combines advanced technology with innovative management methods,using highly trained employees who take a painstaking approach to problem solving at every stage of the production process to cut waste and improve quality and productivity.

Question 5

A system that uses advanced technologies,digitally controlled,to allow for adaptation to produce a range of products is known as a digital factory.

Question 6

As supply chain management involves supplier relationships,it relies heavily on the activities known as logistics.

Question 7

The supplier relationships of many organisations involve partnering arrangements in which an organisation spreads purchases among many suppliers,encouraging them to compete with one another to provide the best quality at the lowest price.

Question 8

A service organisation is one that produces both physical and non-physical outputs.

Question 9

Just-in-time (JIT)inventory systems are designed to increase the level of an organisation's inventory and reduce its associated costs.

Question 10

A cellular layout is a facilities layout in which machines dedicated to sequences of production are grouped in accordance with group-technology principles.

Question 11

At Stage 4,the highest level of operations strategy,operations managers are strategically active,with operations strategy in concert with company strategy.

Question 12

A process by which products are produced costs-effectively in high-volume but are customised to meet individual needs is known as mass-customisation.

Question 13

A manufacturing organisation is one that produces both physical and non-physical outputs.

Question 14

The technical core in a car company includes the plants that manufacture cars,while the same in a university includes teaching and research.

Question 15

Supply chain management techniques are being applied to the cattle industry in Australia,where each animal typically has several owners from birth until it is sold as meat.

Question 16

Finished goods,work in process and raw materials are three types of normal inventory.

Question 17

Combining advanced technology and innovative management processes and using highly trained employees to cut waste and improve quality is known as lean thinking.

Question 18

An organisation that produces non-physical goods that require customer involvement and cannot be stored in inventory is a service organisation.

Question 19

With a product layout,the product remains in one location and the required tasks and equipment are brought to it.

Question 20

In a cellular layout machines dedicated to sequences of production are grouped together in accordance with group technology principles.

Question 21

A business that takes place by digital processes over a computer network rather than in a physical space is known as e-commerce.

Question 22

A decision support system (DSS)is an interactive,computer-based information system that relies on decision models and specialised databases to support decision makers.

Question 23

Information technology always reduces the number of management jobs.

Question 24

A group decision support system is a management information system to facilitate strategic decision making at the highest level of management,while an executive information system is an interactive computer-based system that facilitates group decision making.

Question 25

Types of operations information systems include transaction-processing systems,process control systems and information-reporting systems.

Question 26

Information overload is one of the problems associated with advances in technology.

Question 27

A computer-based system that provides information and support for effective managerial decision making is called a management information system.

Question 28

An extranet uses Internet technology but links authorised users inside the organisation with certain outsiders such as customers or vendors.

Question 29

The hardware,software,telecommunications and other technologies used to store,process and distribute information is collectively known as information technology.

Question 30

Useful information tends to have three characteristics: timely,in a form that can be used and content that is ambiguous.

Question 31

Knowledge management refers to efforts to systematically gather knowledge,make it widely available throughout the organisation and foster a culture of learning.

Question 32

A networked information system that collects,processes and provides information about an organisation's entire enterprise,from identification of customer needs and receipt of orders to distribution of products and receipt of payment,is known as an enterprise resource planning system.

Question 33

Business intelligence refers to the high-tech analysis of a company's data in order to make better strategic decisions.

Question 34

The term inventory refers to any items that have passed through the complete production process but have yet to be sold.

Question 35

A system that links people and departments within or among organisations for the purpose of sharing information and data resources is known as a network.

Question 36

Groupware is software that displays documents on more than one user's screen and allows all users to see changes or comments as one person makes them.

Question 37

An intranet is a network that uses Internet technology but limits access to it to all or some of the organisation's employees.

Question 38

Data that have been converted into a meaningful and useful context for the receiver is called information.

Question 39

An interactive computer-based information system that facilitates group communication and decision making is an expert system.

Question 40

Facts that are raw,unsummarised and unanalysed are called data.

Question 41

Which of these is a facilities layout in which machines dedicated to sequences of production are grouped into cells in accordance with group-technology principles?

A) Product layout
B) Process layout
C) Fixed-position layout
D) One-position layout
E) Cellular layout

Question 42

One of your supervisors gives you a report that analyses the latest production counts.This supervisor is giving you:

A) data
B) timely updates
C) Information
D) work that the supervisor should be doing
E) None of these choices.

Question 43

In which of the following ways do service organisations differ from manufacturing organisations?

A) In service organisations, the customer is directly involved in the production process..
B) In service organisations, employees are generally more satisfied.
C) In manufacturing organisations, the manufactured product cannot be placed in inventory.
D) In manufacturing organisations, the customer is directly involved in the production process
E) In service organisations, the final product can be stored in inventory.

Question 44

Managing the sequence of suppliers and purchasers,covering all stages of processing from obtaining raw materials to distributing finished goods to final consumers is known as:

A) manufacturing operations
B) customer relationship management (CRM)
C) supply chain management
D) networking
E) None of these choices.

Question 45

A small or medium-sized automated production line that can be adapted to produce more than one product line is referred to as:

A) materials requirement planning
B) a reliable production system
C) MRPII
D) a dependent demand system
E) a flexible manufacturing system.

Question 46

____________________ uses electronic tags that can identify and track individual items such as books,bottles of laundry detergent,cars,or even people.

A) Flexible manufacturing systems
B) A reliable production system
C) Radio-frequency identification
D)
E) A dependent demand system
None of these choices.

Question 47

Arnott's snack foods division gathers __________ about demographics in various parts of Australia,which it then translates into __________.

A) information; data
B) data; information
C) statistics; internal company reports
D) information; survey statistics
E) None of these choices.

Question 48

The fixed-position layout is necessary for:

A) custom orders
B) when the organisation is producing in huge volumes
C) long production runs
D) mass production
E) miniature items.

Question 49

Which of these is the heart of the organisation's production of its product or service?

A) Manufacturing department
B) Technological environment
C) Technical core
D) Production sector
E) Output

Question 50

Which of these is the recognition of the importance of operations to the organisation's success and the involvement of operations managers in the organisation's strategic planning?

A) Operations strategy
B) Process layout
C) Operations awareness
D) Product layout
E) None of these choices.

Question 51

In a computer manufacturing organisation,the technical core includes:

A) the plants where the computers are manufactured
B) the human resources department
C) the research and development department
D) the marketing department
E) All of these choices.

Question 52

The process layout has which of the following advantages?

A)Potential economies of scale
B)Facilitates group problem solving
C)Facilitates teamwork
D)All of these choices.
E)B and C.

Question 53

The best way to control operations is through:

A) clan control
B) bureaucratic control
C) operations strategy
D) rules and regulations
E) All of these choices.

Question 54

The field of management that specialises in the physical production of goods or services is known as:

A) engineering management
B) quantitative management
C) service management.
D) production management
E) operations management

Question 55

The product layout is most effective when:

A) the organisation produces huge volumes of custom products
B) the flow of raw materials is constant
C) the organisation produces huge volumes of identical products
D) combined with a process layout
E) All of these choices.

Question 56

_________________ is a system that uses advanced technologies,digitally controlled,to allow for adaptation to produce a range of products.

A) Lean manufacturing
B) A reliable production system
C) Radio-frequency identification
D)
E) A dependent demand system
Digital factories

Question 57

_________________ combines advanced technology with innovative management methods,using highly trained employees who take a painstaking approach to problem solving at every stage of the production process to cut waste and improve quality and productivity.

A) Lean manufacturing
B) A reliable production system
C) Radio-frequency identification
D)
E) A dependent demand system
None of these choices.

Question 58

An organisation that produces non-physical outputs that require customer involvement and cannot be stored in inventory is referred to as a(n):

A) manufacturing organisation
B) non-inventory organisation
C) operations management organisation
D) service organisation
E) consumer-driven organisation.

Question 59

In which of the following layouts is staffing flexibility enhanced?

A) Process layout
B) Product layout
C) Cellular layout
D) Fixed-position layout
E) One-position layout

Question 60

Which of the following would not qualify as a manufacturing organisation?

A) General Motors Holden
B) Country Road
C) Ted's Hairdressing Salon
D) Razorback Vehicles
E) All of these choices are manufacturing organisations.

Question 61

Inventory consisting of the basic inputs to the organisation's production process is called __________ inventory.

A) finished goods
B) work-in-progress
C) raw material
D) possessed
E) nonphysical

Question 62

A system that organises information in the form of pre-specified reports that managers use in day-to-day decision making is called a(n):

A) office automation system
B) executive information system
C) group decision support system
D) information reporting system
E) transaction processing system.

Question 63

Which of these is a computer network that uses Internet technology but links authorised users inside the company with certain outsiders such as customers or vendors?

A) GIS
B) Middleware
C) An intranet
D) Groupware
E) An extranet

Question 64

__________ systems typically support the strategic decision-making needs of higher-level managers.

A) Operations information
B) Geographic information
C) Expert
D) Management information
E) Process control

Question 65

A computer network that uses Internet technology but limits access to all or some of the organisation's employees is called:

A) an extranet
B) middleware
C) an intranet
D) groupware
E) GDSS.

Question 66

Which of the following systems is classified as a management information system?

A) Transaction processing system
B) Process control system
C) Office automation system
D) Information reporting system
E) None of these choices.

Question 67

Which of these displays a document on more than one user's screen and allows all the users to see changes or comments as they are made by one person?

A) Groupware
B) Intranet
C) Extranet
D) Middleware
E) Hardware

Question 68

The intranet installed by ANZ bank has allowed its 30,000 plus staff to:

A)provide accurate information to customers
B)keep up-to-date with events in the bank
C)download product knowledge information and training modules onto their desktops
D)keep track of rivals' accounts
E)A,B and C.

Question 69

Which of the following systems is classified as an operations information system?

A) Information reporting system
B) Decision support system
C) Executive information system
D) Transaction processing system
E) Geographic information system

Question 70

Which of the following statements about inventory is not true?

A) Inventory sitting on the shop floor costs money.
B) A company's worth can be measured by the size of its inventory.
C) The best criterion for gauging the effectiveness of manufacturing operations is inventory.
D) Large inventories hide operations management problems.
E) None of these choices.

Question 71

Inventory includes which of the following?

A)Finished goods
B)Work in process
C)Raw materials
D)All of these choices.
E)B and C.
D) All of these choices.

Question 72

A type of information system that supervisors routinely use to help with their record keeping is called a(n):

A) management information system
B) executive information system
C) transaction processing system
D) record keeping system
E) GDSS.

Question 73

__________ is/are defined in your text as systems that link people and departments within or among organisations for the purpose of sharing information resources.

A) Electronic data interchange
B) Networks
C) Electronic bulletin boards
D) Computer meetings
E) EIS

Question 74

A group decision support system is also known as a(n):

A) expert system
B) collaborative work system
C) total organisational system
D) geographic information system
E) GIS.

Question 75

_________________ is a process by which products are produced cost-effectively in high volume but are customised to meet individual needs.

A) Lean manufacturing
B) Mass customisation
C) Lean thinking
D)
E) Inventory control
None of these choices.

Question 76

Why do companies try to keep inventory low?

A) It keeps production stable.
B) It keeps the raw materials market balanced.
C) The lower the inventory, the more flexibility the company is.
D) It keeps the suppliers in competition with one another.
E) Money that is not tied up with inventory can be used for other purposes (increased liquidity).

Question 77

Which of the following is not a requirement of the just-in-time inventory system?

A) Excellent coordination
B) Simple production system
C) A motivated workforce
D) A competitive compensation system
E) All of the above choices are requirements of the JIT inventory system.

Question 78

Bruce is a production manager at a local road works company.He needs data on the anticipated number of orders and the current inventory.He is using a computer-based information system to help him make production decisions.What type of system is he using?

A) Transaction processing system
B) Executive information system
C) Management information system
D) Production information system
E) None of these choices.

Question 79

Which of the following is the most common form of MIS?

A) Office automation system
B) Executive information system
C) Group decision support system
D) Information reporting system
E) Transaction processing system

Question 80

An interactive computer-based system that uses decision models and specialised databases to support organisation decision makers is known as a(n):

A) decision support system
B) office automation system
C) expert system
D) transaction processing system
E) GIS.