Question 1

Long cycle times are chosen to increase throughput rates.

Accepted Answer

Long cycle times typically decrease throughput rates by slowing down the production process. Shorter cycle times usually increase throughput rates.

Question 2

The measure of "inventory turns per year" is increasingly used by retailers in preference to direct measures of profit.

Accepted Answer

This statement is true. Inventory turns per year is becoming a more popular metric for retailers to evaluate their performance and efficiency in managing inventory, as it indicates how quickly they are selling and restocking their products. It is often seen as a more reliable measure of financial health than solely looking at profits.

Question 3

Government regulations apply to design for manufacturability and design for assembly.Both are subject to the conditions of design for safe use by competitors.

Accepted Answer

Government regulations primarily focus on ensuring products are safe, environmentally friendly, and meet specific industry standards. While they may indirectly affect design for manufacturability (DFM) and design for assembly (DFA) by setting certain requirements, they do not directly regulate these processes with the specific intention of making products safe for use by competitors. The main goal is consumer safety and compliance with industry standards, not the competitive dynamics between companies.

Question 4

Industries that have used downsizing extensively have done so because they have never observed signs of dissatisfaction on the part of their stakeholders and employees.

Accepted Answer

This statement is false. Industries that have used downsizing extensively have often done so because of financial pressures or efforts to increase efficiency, regardless of stakeholder or employee satisfaction.

Question 5

If (D × V × P) < C,then change is likely,assuming that no other factors negatively impact the change.

Accepted Answer

The answer of If (D × V × P) <...

Question 6

Benchmarking is useful and effective even when there is no clear correspondence between processes and their purposes.

Accepted Answer

Benchmarking is most effective when there is a clear correspondence between processes and their purposes, as this allows for more accurate comparison and identification of areas for improvement. If there is no clear correspondence, benchmarking may still be useful in providing insight and ideas, but the effectiveness may be limited.

Question 7

Start-up companies are disadvantaged when compared to established companies because they start with old designs and obsolete equipment

Accepted Answer

Start-up companies often have the advantage of starting with new designs and the latest equipment. They are able to incorporate the latest technologies and innovations into their products and services, giving them a competitive edge in the market. Established companies may be burdened with legacy systems that are difficult to upgrade or replace, which can limit their ability to adapt to changing market conditions.

Question 8

Benchmarking can trigger dissatisfaction with the status quo.Conversely,benchmarks have the power to influence behavior in unexpected ways,even counter-productive ways.

Accepted Answer

Benchmarking can reveal areas where improvements are necessary, which can lead to dissatisfaction with the current state. Furthermore, the pressure to meet or exceed benchmarks can potentially cause individuals or organizations to take shortcuts or make decisions that prioritize the benchmark over other important factors, leading to counter-productive outcomes.

Question 9

Companies that would like to benchmark themselves against the competition can only use measures that are available through information in the public domain.

Accepted Answer

Benchmarking against competition is usually done using publicly available information, such as financial reports, news articles, or industry reports. Companies cannot access confidential information of their competitors and must rely on publicly available measures.

Question 10

Change management decreases the capabilities and competencies of the firm.

Accepted Answer

This statement is false. Change management is a process that is focused on improving the capabilities and competencies of a firm by introducing new ideas, technologies, or approaches that can enhance performance and increase productivity. While there may be some initial disruption or resistance to change, the ultimate goal is to create a stronger and more agile organization that can adapt to evolving market conditions and stay competitive over the long term.

Question 11

Inventory turns per year equals net annual sales divided by the total inventory level.

Accepted Answer

Inventory turns per year are calculated by dividing the cost of goods sold (COGS) by the average inventory level, not net annual sales.

Question 12

Two major approaches that are used to accomplish planned change are continuous improvement and sudden new product development.

Accepted Answer

Continuous improvement and sudden new product development are not typically categorized as the two major approaches to planned change. Instead, planned change often involves approaches like Lewin's Change Management Model or Kotter's 8-Step Change Model.

Question 13

The "old" barriers to entry still apply in the automobile industry.

Accepted Answer

The answer of The "old" barriers to entry still apply...

Question 14

Capabilities-based strategies reflect smart management of business processes.

Accepted Answer

Capabilities-based strategies involve identifying and leveraging the key capabilities of a business to achieve its objectives. This requires smart management of business processes, resources, and talent to build and sustain competitive advantage. Therefore, capabilities-based strategies reflect smart management of business processes.

Question 15

Downsizing obscures vision unless it is clearly identified as part of a plan to achieve the vision.

Accepted Answer

Downsizing can often lead to confusion and uncertainty if it is not clearly tied to a larger vision or strategic plan. Without this context, employees may feel demotivated or unsure about the future direction of the organization. Therefore, it is important for leaders to communicate the rationale behind any downsizing decisions and provide a clear path forward towards achieving the organization's goals.

Question 16

Benchmarking plays the guiding role in reengineering business processes.It provides the basis for course corrections on the road to excellence.

Accepted Answer

The answer of Benchmarking plays the guiding role in reengineering...

Question 17

Many "old" barriers to entry have fallen by the wayside.For example,large investments that use to keep competitors out of the market no longer act as deterrents because there is ample capital on a global scale that is constantly searching for good investments.

Accepted Answer

Advances in technology and capital mobility have reduced barriers to entry in many industries, making it easier for new competitors to enter the market. Large investments may have been a significant barrier in the past, but now there are more opportunities for financing and investment.

Question 18

Cycle time,net margins,and return on equity are considered to be target variables in a list of smart benchmarks.

Accepted Answer

Cycle time, net margins, and return on equity are commonly used as target variables in smart benchmarks, as they are important measures of a company's operational efficiency, financial performance, and shareholder value.

Question 19

The Gleicher model has been used in change management.

Accepted Answer

The Gleicher model, also known as the "Formula for Change," is a framework that helps organizations plan and implement change. It has been widely used in change management processes to help leaders identify the necessary factors for successful change.

Question 20

The factors of the conditions for change equation (D × V × P) > C stand for: D = dissatisfaction with the current situation,V = visions of what the future can become,P = practical first steps to achieve the vision,and C = change flexibility.

Accepted Answer

In the equation (D × V × P) > C, D stands for Dissatisfaction with the current situation, V for Vision of what is possible, P for Practical first steps towards achieving this vision, and C for Cost of change, not "change flexibility."

Quiz 19: Change Management With Faster Project Completions