Deck 1: Introduction to Operations and Supply Chain Management

Question 1

The adaptation of mass production to emphasize quality and flexibility, rather than efficiency, is known as lean production.

Answer 1

True

Question 2

Globalization requires that firms compete only on cost and not quality, speed or flexibility.

Answer 2

False

Question 3

Because of a global recession in the late 2000s ,companies started focusing on the most critical factors to sustain their business during the downturn.

Answer 3

True

Question 4

A supply chain is a series of activities from supplier to customer that adds value to a product or service.

Question 5

The four primary functional areas of a firm are marketing, finance, operations, and legal.

Question 6

Human resources management provides product demand estimates that are used in production decisions.

Question 7

Globalization has affected manufacturing but not service operations.

Question 8

Globalization of the supply chain has many pros and few, if any, cons.

Question 9

Operations management is only concerned with the day-to-day operations of a firm's productive systems.

Question 10

Lean production refers to high-volume production of a standardized product.

Question 11

A retail operation is an example of an exchange transformation process.

Question 12

The systematic analysis of work methods is known as operations research.

Question 13

The European Union requires that strict quality and environmental standards be met before companies can do business with member countries.

Question 14

The set of activities that creates and delivers products to the customer is known as the supply chain.

Question 15

An operations manager benefits from an integrated view of business organizations.

Question 16

Operations management designs, operates, and improves marketing systems.

Question 17

Two-thirds of today's businesses operate globally.

Question 18

The most current era in the evolution of operations and supply chain management is sustainability.

Question 19

A warehouse operation is an example of a physical transformation process.

Question 20

A major challenge and opportunity for many firms is the globalization of the supply chain.

Question 21

Productivity is the most common measure of competitiveness.

Question 22

Order qualifiers are the characteristics of a product that have to be satisfied just to be considered for purchase by a customer.

Question 23

Order winners and order qualifiers change over time in response to the dynamics of changing market conditions.

Question 24

China has reshaped the way firms compete globally.

Question 25

Increases in productivity enable a nation to raise its standard of living.

Question 26

Positioning is a step in strategy formulation that defines how firms will compete in the marketplace.

Question 27

Companies that compete on winnovation establish a corporate culture that discourages risk taking.

Question 28

Deployment is a step in strategy formulation that evaluates the alignment between core competencies and order winners.

Question 29

An order qualifier is the characteristic of a product that wins orders in the marketplace.

Question 30

Core competencies tend to be processes and not products or technologies.

Question 31

All of the following are transformation processes discussed in the text except

A) physiological.
B) locational.
C) exchange.
D) spiritual.

Question 32

Single factor productivity measures compare output to an individual input.

Question 33

Which of the following is not one of the four primary functional areas of a firm?

A) human resources
B) legal
C) marketing
D) operations

Question 34

In 2010, the US surpassed China as the world's largest manufacturer.

Question 35

The transformation process associated with health care is best described as

A) locational
B) exchange
C) physiological
D) informational

Question 36

The first of five basic steps in strategy formulation is determining a firm's order winners and order qualifiers.

Question 37

Which of the following is not an event or concept associated with the quality revolution?

A) TQM (total quality management)
B) Internet
C) Six Sigma
D) JIT

Question 38

Firms compete in the marketplace based on cost, speed, quality and flexibility.

Question 39

All of the following are responsibilities of operations managers except

A) acquiring financial resources
B) managing inventories
C) planning production
D) scheduling production

Question 40

Operations management is concerned with the _________ of a firm's productive systems.

A) design
B) operation
C) improvement
D) All of these answer choices are correct.

Question 41

Dividing a job into a series of small tasks, each performed by a different worker, is known as

A) craft production
B) scientific management
C) division of labor
D) interchangeable parts

Question 42

A manager of a global supply chain is concerned with all the following except

A) timeliness.
B) quality.
C) social issues.
D) All of these answer choices are correct.

Question 43

Mass production is well suited to all of the following except

A) producing large volumes of goods quickly.
B) adapting quickly to changes in market demand.
C) producing standardized products for a large market.
D) All of these answer choices are correct.

Question 44

_____________ are the characteristics of a product that qualify it to be considered for purchase by a customer.

A) Order winners
B) Order qualifiers
C) Core competency
D) Positioning

Question 45

The production system that prizes flexibility and quality over efficiency and quantity is known as

A) mass production.
B) craft production.
C) lean production.
D) electronic commerce.

Question 46

_____________ represents what the firm is in the business of doing.

A) Primary task
B) Core competency
C) Positioning
D) Deploying

Question 47

Companies go global to

A) take advantage of favorable costs.
B) to keep abreast of trends and access new technologies.
C) to build reliable sources of supply.
D) All of these answer choices are correct.

Question 48

_____________ is what the firm does better than anyone else.

A) Primary task
B) Core competency
C) Positioning
D) Deploying

Question 49

The major factors impacting globalization of the supply chain include all the following except

A) falling trade barriers.
B) the Internet.
C) declining union membership.
D) All these answer choices are correct.

Question 50

Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From the following raw data calculate the multifactor productivity. Labor rate $20
Machine rate $15
Units produced 50,000
Labor hours 4,000
Machine hours 2,000
Cost of materials $20,000
Cost of energy $5,000

A) 0.370
B) 0.625
C) 1.500
D) 1.667

Question 51

Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From the following data calculate the machine productivity. Labor rate $20
Machine rate $15
Units produced 50,000
Labor hours 4,000
Machine hours 2,000
Cost of materials $20,000
Cost of energy $5,000

A) 0..370
B) 0.625
C) 1.500
D) 1.667

Question 52

Snacknow, a food service firm, is calculating its monthly productivity report. From the following data calculate the energy productivity. Labor rate $10
Units produced 10,000
Labor hours 1,000
Cost of materials $2000
Cost of energy $500

A) 0.220
B) 2
C) 10
D) 20

Question 53

Snacknow, a food service firm, is calculating its monthly productivity report. From the following data calculate the multifactor productivity. Labor rate $20
Units produced 10,000
Labor hours 1,000
Cost of materials $2000
Cost of energy $500

A) 0.220
B) 0.476
C) 0.800
D) 1.000

Question 54

_____________ is how the mission of a firm is accomplished.

A) Strategy
B) Design
C) An operational decision
D) None of these answer choices is correct.

Question 55

Sustainability, in it's broadest sense, include(s)

A) using resources wisely.
B) treating workers with respect.
C) establishing a business model of shared values.
D) All of these answer choices are correct.

Question 56

The most recent era in the evolution of operations and supply chain management is

A) Internet Revolution
B) Sustainability
C) Globalization
D) Quality Revolution

Question 57

Linear programming, waiting line, simulation, and PERT/CPM are all elements of which era of operations and supply chain management? a) Quality Research
B) Operations Research
C) Internet Revolution
D) Globalization

Question 58

The ratio of a firm's monthly output to the number of labor hours used in the same month would be a measure of

A) labor productivity.
B) capital productivity.
C) machine productivity.
D) multifactor productivity.

Question 59

Telco Inc., a manufacturing firm, is calculating its monthly productivity report. From the following data calculate the labor productivity. Labor rate $20
Machine rate $15
Units produced 50,000
Labor hours 4,000
Machine hours 2,000
Cost of materials $20,000
Cost of energy $5,000

A) 0.370
B) 0.625
C) 1.500
D) 1.667

Question 60

Snacknow, a food service firm, is calculating its monthly productivity report. From the following raw data calculate the labor productivity. Labor rate $10
Units produced 10,000
Labor hours 1,000
Cost of materials $2000
Cost of energy $500

A) 0.220
B) 0.476
C) 0.800
D) 1.000

Question 61

The ____________ function helps strategy evolve by creating new ways of delivering a firm's competitive priorities.

A) finance
B) marketing
C) operations
D) None of the answer choices is correct.

Question 62

The balanced scorecard examines a firm's performance in all the following critical areas except

A) finances
B) customers
C) processes
D) All of these answer choices are correct.

Question 63

Companies that compete on ______________ are able to produce a wide variety of products in response to customer needs.

A) cost
B) speed
C) flexibility
D) quality

Question 64

A(n) ____________ strategy involves a series of integrated decisions on processes, facilities, technology, quality, capacity, etc.

A) finance
B) marketing
C) operations
D) None of these answer choices is correct.

Question 65

Companies that compete on ______________ pursue the elimination of all waste.

A) cost
B) speed
C) flexibility
D) quality

Question 66

Briefly describe how operations can be viewed as a transformation process.
Operations is often defined as a transformation process. Inputs such as raw materials, labor, equipment, and capital are transformed into outputs (goods and services). Customer feedback is used to adjust the transformation process. An objective of the operations manager is to ensure that the transformation process operates efficiently and the outputs of the process have greater value than the sum of the inputs. In this way the transformation process creates value, making it possible to view the transformation process as a value chain extending from supplier to customer.

Question 67

Briefly describe the four primary functional areas of a firm. How is operations related to them?
The four primary functional areas of a firm are marketing, finance, operations, and human resources. For most firms, operations is the technical core or "hub" of the organization, interacting with the other functional areas and suppliers to produce goods and services for customers. For example, marketing provides sales forecasts to operations and operations provides marketing with product availability information, lead time estimates and delivery schedules. Operations provides finance with inventory and production data, capital budgeting and equipment requests, and technology plans. Finance provides the capital resources for financing inventory and securing more capital equipment. Operations relies on human resources to meet its personnel needs-hiring, training, and evaluating workers.

Question 68

_________________is what the firm does better than anyone else.

A) Order qualifiers
B) Core competency
C) Positioning
D) Deploying

Question 69

_____________ is the characteristic of a product that wins the order in the marketplace.

A) Order winners
B) Order qualifiers
C) Core competency
D) Positioning

Question 70

Companies that compete on _________________ establish a corporate culture that encourages risk.

A) Innovation
B) Quality
C) Flexibility
D) Cost

Question 71

Companies that compete on ______________ recognize the advantages of time-based competition.

A) cost
B) speed
C) flexibility
D) quality

Question 72

______________ focus(es) the organization on common goals that can be translated into measurable objectives.

A) Order winners
B) Core competency
C) Positioning
D) Deploying the strategy

Question 73

Companies that compete on ______________ focus on pleasing customers and satisfying their expectations.

A) cost
B) speed
C) flexibility
D) quality

Question 74

What can lead to increases in productivity?
Productivity increases when firms become more efficient, expand, achieve breakthroughs that enable output increases to occur with reduced inputs, downsize while maintaining output with fewer inputs, and retrench with output and inputs decreasing, but inputs decreasing at a faster rate than output.