Question 1

Worldwide uniformity or standardization in manufacturing methods hinders headquarters' effectiveness in keeping production specifications current.

Accepted Answer

Standardization in manufacturing methods actually enhances the effectiveness of headquarters in keeping production specifications current, as it simplifies communication, reduces complexity, and ensures consistency across different locations.

Question 2

Manufacturing rationalization is a division of production among a number of production units, thus enabling each to produce only a limited number of components for all of a firm's assembly plants.

Accepted Answer

Manufacturing rationalization involves dividing production among different units in order to specialize in producing specific components for all assembly plants.

Question 3

Unless a product or service is purchased from a company that is registered to the appropriate ISO 9000 standard, a buyer cannot be assured that the quality of what was received will be what was expected.

Accepted Answer

ISO 9000 registration is a sign of a company's commitment to quality management practices, but it is not the only way to assure quality. Companies can still maintain high-quality products or services through other quality assurance methods and standards.

Question 4

Generally, it is easier for international firms to standardize the concepts of total quality management and synchronous manufacturing in their foreign plants than it is to standardize the actual production facilities.

Accepted Answer

Total quality management and synchronous manufacturing are management concepts that can be easily standardized and implemented in foreign plants with minimal modifications. However, the actual production facilities may require significant modifications to adapt to local laws, regulations, and technological infrastructure.

Question 5

The effectiveness of supply chain management efforts is strongly influenced by how a company manages the interface of logistics with sourcing and manufacturing.

Accepted Answer

Effective supply chain management requires a coordinated effort between logistics, sourcing, and manufacturing. Failure to properly manage this interface can lead to inefficiencies and disruptions in the supply chain.

Question 6

Emerging industry-based B2B exchanges can help optimize the supply chain across an entire network of organizations, not merely within a single company.

Accepted Answer

Emerging industry-based B2B exchanges facilitate collaboration and communication between different firms in a particular industry or supply chain, leading to supply chain optimization across multiple organizations. This goes beyond traditional B2B transactions within a single company, resulting in greater efficiency, cost savings, and streamlined processes across the supply chain.

Question 7

Some of the reasons for the global standardization of a firm's manufacturing system are the effects on organization and staffing.

Accepted Answer

Global standardization of a firm's manufacturing system can have significant effects on the organization and staffing, such as streamlining processes and reducing the need for local customization or adaptation. This can lead to changes in job roles, responsibilities, and skills required, as well as potential restructuring of the organization to align with the standardized processes.

Question 8

Although international firms maintain manufacturing facilities in countries at various levels of development, manufacturing systems should not vary significantly within the same company.

Accepted Answer

Manufacturing systems within the same company can vary significantly due to differences in local regulations, labor skills, infrastructure, supply chain logistics, and market needs across countries at various levels of development.

Question 9

When production equipment is similar, home office control of quality in foreign affiliates is more difficult because management must ensure that all plants adhere to the same standard.

Accepted Answer

When production equipment is similar across foreign affiliates, it generally makes home office control of quality easier, not more difficult, because standardized equipment facilitates uniform production processes and quality standards.

Question 10

In many companies, the purchasing function has been viewed as a prime candidate for outsourcing to other firms, a trend encouraged by rapid developments in e-procurement.

Accepted Answer

The statement is true. Many companies have outsourced their purchasing function to other firms, and this trend has been facilitated by advancements in e-procurement technology.

Question 11

International freight, insurance, and packing can add as much as 8 to 10 percent to the quoted price, depending on the sales term used.

Accepted Answer

The answer of International freight, insurance, and packing can add...

Question 12

To avoid an increase in price because the U.S. dollar has lost value versus the euro, an American importer should require European exporters to quote their products in euros.

Accepted Answer

Quoting products in euros does not protect an American importer from the impact of the U.S. dollar losing value versus the euro; it actually exposes them to currency risk. To avoid an increase in price, they might prefer to lock in exchange rates or use financial instruments like futures or options.

Question 13

For purchases of capital goods such as manufacturing equipment, many U.S. buying organizations now use "business-cycle costing" to analyze purchasing decisions.

Accepted Answer

The answer of For purchases of capital goods such as...

Question 14

Packaging and transportation requirements for a product can significantly influence logistics costs, and these factors should be addressed during the postdesign steps in a company's value chain.

Accepted Answer

Packaging and transportation requirements should be considered during the design phase, not just postdesign, to optimize logistics costs and efficiency in the value chain.

Question 15

The traditional functions of purchasing, such as supplier determination, analysis, and selection, have to be accomplished before the actual purchasing via e-procurement.

Accepted Answer

The traditional functions of purchasing, such as supplier determination, analysis, and selection, still have to be done before implementing e-procurement. E-procurement is just a method of carrying out the purchasing process electronically.

Question 16

While indirect production-oriented goods have been the focus of management attention for many years, the purchasing of goods and services that are part of finished goods-termed indirect procurement-is also critical.

Accepted Answer

The statement incorrectly labels the procurement of goods and services that are part of finished goods as "indirect procurement." In fact, this describes "direct procurement." Indirect procurement refers to purchasing goods and services not directly incorporated into a finished product, such as office supplies or consulting services.

Question 17

The standardization of processes and machinery provides a reasonable guarantee that parts manufactured in the firm's various plants will be interchangeable.

Accepted Answer

Standardization ensures that the same processes and machinery are used in all plants, resulting in parts that are interchangeable between them.

Question 18

Logistics refers to managerial functions associated with the movement of raw materials and work in progress, but not finished goods.

Accepted Answer

Logistics includes the movement of raw materials, work in progress, and finished goods.

Question 19

Standards are documented agreements containing general guidelines, rules, or definitions of the characteristics of a product, process, or service.

Accepted Answer

The answer of Standards are documented agreements containing general guidelines,...

Question 20

Indirect procurement includes such items as maintenance, repair, raw materials and components, office equipment, and other services and supplies.

Accepted Answer

Indirect procurement refers to the acquisition of goods and services that are not directly incorporated into a product being manufactured, such as office supplies, maintenance and repair services, and software. Raw materials and components, however, are considered direct procurement because they are directly used in the production of goods.

Quiz 16: Global Operations and Supply Chain Management