Question 1

A set of activities that delivers value to external customers is a:

Accepted Answer

Core processes are the primary activities within an organization that create value for external customers. Supply chain refers to the network of organizations involved in the creation and delivery of a product or service, support processes provide support to core processes, and systems are the tools and technologies used to support business operations.

Question 2

One distinction between core processes and support processes is that core process can cut across the organization while support processes do not.

Accepted Answer

Core processes are the critical processes that directly deliver value to customers and are central to the organization's mission, while support processes provide necessary resources and services to maintain the core processes but do not directly deliver value to customers. Both types of processes can cut across different parts of the organization, but the distinction lies in their direct contribution to delivering value to customers.

Question 3

Which of the following statements is more of a general characteristic of a manufacturing organization, as compared to a service organization?

Accepted Answer

Manufacturing organizations typically require a significant amount of capital investment in equipment and facilities, making their operations more capital intensive than service organizations. Short-term demand variability, intangibility of outputs, and difficulty in measuring quality are characteristics that can apply to both manufacturing and service organizations.

Question 4

Which of the following is an example of a nested process?

Accepted Answer

The process of checking a candidate's intent to graduate involves multiple steps that are carried out by different departments (Bursar and Advising) before finally printing the diploma. This is an example of a nested process. The other options do not involve multiple levels of processes.

Question 5

Budgeting, recruiting, and scheduling are examples of a:

Accepted Answer

Budgeting, recruiting, and scheduling are examples of support processes in an organization. Support processes do not directly generate revenue but are important for the smooth running of core processes.

Question 6

List and briefly describe five differences between services and manufacturing. Processes provide examples to illustrate your arguments.

Accepted Answer

The answer of List and briefly describe five differences between...

Question 7

The supplier relationship process selects the suppliers of services, materials and information, while the order fulfillment process facilitates the timely and efficient flow of these items into the firm.

Accepted Answer

The answer of The supplier relationship process selects the suppliers...

Question 8

Table 1.1
You are the Production Manager for the toy manufacturing process at the ABC Company.
 
-Use the information provided in Table 1.1. An example of an external supplier is:

Accepted Answer

An external supplier is a company or person outside of the organization that provides goods or services to the organization. In this case, the lumber company is an external supplier as they provide the raw materials (wood) needed for the toy manufacturing process at ABC Company. The other options (B, C, and D) are all internal departments or locations within ABC Company and do not fit the definition of an external supplier.

Question 9

The process that includes the activities required to produce and deliver the service or product to the external customer is called the:

Accepted Answer

The order fulfillment process includes all activities required to produce and deliver the service or product to the external customer. This process includes activities such as manufacturing, assembly, packaging, and shipping. It is a critical process as it ensures that the customer receives their order in a timely and efficient manner, meeting their expectations and ensuring customer satisfaction.

Question 10

Manufacturing processes usually have:

Accepted Answer

Manufacturing processes typically produce physical, durable output in the form of goods or products. Option B is incorrect because manufacturing processes generally have low levels of customer contact. Option C is also incorrect because the output of manufacturing processes can be inventoried, unlike some service processes. Option D is incorrect because manufacturing processes require significant capital investment in machinery, equipment, and facilities.

Question 11

Service processes usually have:

Accepted Answer

Service processes typically have shorter response times compared to manufacturing processes because they often involve direct interaction with the customer and the service is performed upon request. Services cannot be inventoried like physical products, and they usually involve high levels of customer contact. The output of a service process is not physical or durable.

Question 12

A(n) ________ is any activity or group of activities that takes one or more inputs, transforms and adds value to them, and provides one or more outputs for its customers.

Accepted Answer

The answer of A(n) ________ is any activity or group...

Question 13

A core process is a set of activities that delivers value to external customers.

Accepted Answer

A core process is specifically focused on delivering value to external customers. This is generally distinguished from support processes which are focused on enabling the core processes to operate effectively.

Question 14

Operations management is part of a production system that can be described in the following manner: Organization: inputs→processes→outputs.
Which one of the following correctly describes a production system?

Accepted Answer

The furniture manufacturer example follows the organization of inputs, processes, and outputs. The inputs are wood, processes include sanding, and the output is a chair. The other examples do not fit this organization as neatly.

Question 15

Table 1.1
You are the Production Manager for the toy manufacturing process at the ABC Company.
 
-Use the information provided in Table 1.1. An example of an internal customer is:

Accepted Answer

The answer of Table 1.1
You are the Production Manager for...

Question 16

Which one of the following statements is more of a general characteristic of a service organization, as compared to a manufacturing organization?

Accepted Answer

Services are intangible and are often produced and consumed simultaneously, making the quality of the service more subjective and harder to measure compared to the quality of manufactured goods, which can be more easily quantified through specific metrics.

Question 17

Table 1.1
You are the Production Manager for the toy manufacturing process at the ABC Company.
 
-Use the information provided in Table 1.1. An example of an external customer is:

Accepted Answer

The external customer in this scenario would be the toy store at the mall who purchases the finished products from the ABC Company. The other options listed (lumber company, Customer Service Department at ABC, Shipping Department at ABC) are either suppliers or internal departments within the ABC Company.

Question 18

Identify a large employer in your hometown. Describe this organization's inputs, processes, and outputs.

Accepted Answer

The answer of Identify a large employer in your hometown....

Question 19

The process that facilitates the placement of orders and identifies, attracts, and builds relationships with external customers is called the:

Accepted Answer

The customer relationship process is designed to identify, attract, and build relationships with external customers, as well as facilitate the placement of orders. This process focuses on managing interactions with customers to meet their needs and enhance their satisfaction and loyalty.

Question 20

Table 1.1
You are the Production Manager for the toy manufacturing process at the ABC Company.
 
-Use the information provided in Table 1.1. An example of an internal supplier is:

Accepted Answer

An internal supplier is a department or division within the same company that provides materials or services to another department or division. In this scenario, the Receiving Department at ABC is an internal supplier because they provide materials (raw materials, parts, and components) to the Production Department for the toy manufacturing process. The other options are not internal suppliers. The lumber company is an external supplier as they provide the raw materials to the Receiving Department, the Shipping Department is also an internal supplier as they provide shipping services to the Production Department, but they do not provide materials or components for the manufacturing process. Finally, the toy store at the mall is an external customer, as they buy and sell the final product of the manufacturing process.

Quiz 1: Using Operations to Create Value