Deck 1: Creating Customer Value

Question 1

Which of the following is NOT fundamental to supply chain management?

A) The flow of materials
B) Supply provider
C) Services
D) Information with customer demand

Answer 1

Supply provider

Question 2

In new service development, competitive priorities will include the which of following?

A) Substitute
B) Quantity
C) Customization
D) Variety

Answer 2

Customization

Question 3

Which one of the following statements is TRUE?

A) The absolute number of Canadian manufacturing jobs has decreased since the late 1950s because the percentage of service jobs in the economy increased.
B) Service- sector organizations generally cannot utilize operations management techniques.
C) Because outputs from service organizations typically cannot be inventoried, inventories are of little importance to service systems.
D) The share of the workforce in service jobs in countries such as Canada, France, Britain, Japan, and the United States is well above 60 percent.

Answer 3

The share of the workforce in service jobs in countries such as Canada, France, Britain, Japan, and the United States is well above 60 percent.

Question 4

In countries such as Canada, the United States, Japan and Germany, productivity gains in the service sector

A) have tended to lag gains in labour productivity in manufacturing.
B) have accelerated with greater international competition in areas such as financial services.
C) have improved recently with widespread adoption of the Internet as a means to service customers more directly.
D) all the above

Question 5

what is the relative emphasis or weighting of the dimensions of customer value that operations management must possess to outperform its competitors?

A) Competitive priorities
B) Market differentiation
C) Suppliers' bargain
D) Customers' promo

Question 6

The text views operations management in several different ways. One acceptable view of operations management is as a

A) set of decisions related to budgeting the annual resources between different functional areas.
B) set of decisions related to product pricing and marketing.
C) corporate function in which the best way to finance corporate assets is determined.
D) system wherein inputs pass through one or more operations and are transformed into outputs (goods or services).

Question 7

A firm can form strategic alliance abroad through which of the following arrangement?

A) Global discount
B) Internationalization
C) Nationalization
D) Collaborative effort

Question 8

The percentage of the workforce in service jobs in some industrialized countries such as Canada, France, Japan, and Britain is

A) higher than that in the manufacturing sector now, but shows a declining trend.
B) much lower than that of the manufacturing sector in these countries.
C) lower than that in the manufacturing sector now, but shows a rising trend.
D) more than 60 percent of the total workforce in these countries.

Question 9

Competitive priorities define the dimensions on which the firm should excel with its products or services. Which one of the following statements regarding this concept is TRUE?

A) McDonald's restaurants emphasize high- performance design quality rather than consistent quality.
B) Often there are trade- offs among competitive priorities; thus, the best emphasis is situational.
C) The strategy of emphasizing lower price is most appropriate when the product is highly differentiated.
D) All eight dimensions of competitive priorities should be equally emphasized in order to service the increasingly competitive market of the 1990s.

Question 10

Which of the following is NOT one of the possible competitive priorities for customer relationship?

A) Consistent quality
B) Delivery speed
C) Low- cost operations
D) High- performance design

Question 11

Which of the following refers to the interconnected network of processes across different firms that produce a service or product to the satisfaction of customers ?

A) General process
B) Chain reaction
C) Supply chain
D) Demand factor

Question 12

Which of the following is NOT of the six broad dimensions of customer value that collectively create the customer benefit bundle?

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

Question 13

From an operations perspective, a corporate strategy involves which of the following?

A) Monitoring and evaluation of the chain
B) Targeting resources of the competitors
C) Developing the firm's operations with a global perspective
D) Accounting for the sale activities of the firm

Question 14

Which of the following is NOT one of the five developments that encourage sound global strategies?

A) increasing international trade barriers due from regional trading blocs
B) Increased demand for imported services and goods
C) Improved transportation and communications technologies
D) Loosened regulations on financial institutions

Question 15

Which one of the following statements concerning productivity is TRUE?

A) Productivity improvement is achieved by increasing the inputs used to produce a given level of output.
B) Accounting for several inputs simultaneously is not possible.
C) Multifactor productivity is an index of the output provided by more than one of the resources used in production.
D) The low growth in service productivity has had little effect on overall productivity in countries such as Canada and the U.S..

Question 16

In order fulfilment, which of the following is NOT one of the nested processes and competitive priorities?

A) Variety
B) On- time delivery
C) Consistent quantity
D) High- performance design

Question 17

Which of the following skill areas is NOT fundamental to operations managers?

A) quantitative analysis
B) advertising tactics
C) knowledge of information systems
D) understanding of international business

Question 18

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?

A) Bank: tellers- computer equipment- deposits
B) Furniture manufacturer: wood- sanding- chair
C) Telephone company: satellites- cables- communication
D) Airline: pilots- planes- transportation

Question 19

Which of the following is NOT one of the views of a firm's sustainability triple bottom line performance?

A) Financial
B) Social
C) General
D) Environmental

Question 20

Processes have inputs and customer outputs, such input might include which of the following?

A) Materials
B) Products
C) Tariffs
D) Taxes

Question 21

Which of the following is NOT one of the measures of productivity?

A) human productivity
B) Multifactor productivity
C) machine productivity
D) labour productivity

Question 22

Which of the following process is NOT one of the four core processes in the supply chain?

A) Demand relationship process
B) Customer relationship process
C) Order fulfilment process
D) New product development

Question 23

Competitive priorities state the dimensions on which a firm can excel. Which one of the following statements about each dimension is TRUE?

A) A firm that intends to excel at high- performance design quality can succeed only when its production volume is very high.
B) For a firm that gives top priority to customization, volumes for any individual product tend to be low.
C) Emphasizing low price is most appropriate for differentiated products in the growth stage of demand.
D) McDonald's is a typical example of an organization that excels at volume flexibility rather than quality consistency.

Question 24

Which of the following is a strategy to gain presence of a firm's business overseas?

A) Joint Venture
B) Negotiation
C) Demand alliance
D) Localization

Question 25

Which of the following statements is TRUE?

A) A market analysis divides the firm's customers into market segments.
B) Firms can only improve their competitive pricing.
C) Processes cannot be broken down into subprocesses.
D) An operations strategy is a single initiative for controlling the markets' entrance.

Question 26

Which of the following is the responsibility of operations?

A) interpret financial information
B) transform inputs into new products and services
C) develop new products and services
D) transport inputs and outputs

Question 27

Competitive priorities define the dimensions on which companies should excel in producing their products or services. Which one of the following statements is TRUE?

A) A firm that competes on the dimension of volume flexibility is more likely to manufacture products that experience a seasonal demand variation.
B) A firm offering little customization cannot compete simultaneously on the dimension of consistent quality.
C) A firm that competes on the dimension of customization tends have operating systems that are inflexible.
D) It is impossible for a firm to improve cost and quality simultaneously.

Question 28

What is the function of support process?

A) To offer benefits to others in the supply chain
B) To provide vital resources and inputs to the core processes
C) To discharge customers from the supply chain
D) To assist with the analysis of the core processes

Question 29

Which one of the following statements regarding operations management is TRUE?

A) Customer participation and information on performance are two special types of inputs to a production system.
B) Operations management deals only with manufacturing organizations because service organizations do not have tangible outputs.
C) Inputs to a production system include capital and materials, but not human resources.
D) Typical inputs to a production system are processes and consumer goods.

Question 30

A form of strategic alliance in which one company licenses its service or production methods to another is called ______ .

Question 31

Which of the following statements is best?

A) Global competition is putting additional pressures on operations managers.
B) Productivity in the service sector has kept pace with the manufacturing sector.
C) Operations managers have little interaction with other functional areas.
D) Operations management refers primarily to manufacturing.

Question 32

An ethnic restaurant, in serving a lovely, four- hour, seven- course dinner for two for $150, is giving particular emphasis to which dimension of competitive priorities?

A) consistent quality
B) fast delivery time
C) high- performance quality
D) price

Question 33

In supplier relationship, which of the following is NOT included in competitive priorities?

A) variety
B) Development speed
C) On- time delivery
D) Low- cost operation

Question 34

Which of the following is one of the four core processes?

A) New product development
B) Manager relationship
C) Employee relationship
D) Order requirement

Question 35

One of the main outputs from any processes should include which of the following?

A) Interest
B) Standard
C) Service
D) Price

Question 36

Which of the following statements is best? Operations management can be made more effective by

A) coordinating all activities related to operations, directly or indirectly, both within and outside the organization.
B) making products early enough so that stock outs do not occur.
C) coordinating operations with other functional areas that impact operations.
D) focusing on aspects of operations that are directly related to production.

Question 37

Which of the following technologies is least likely to help companies to improve their competitiveness?

A) automated robots
B) electronic mail
C) the Internet
D) keypunch cards

Question 38

Which one of the following statements is TRUE?

A) The process of concurrent engineering requires design engineers, manufacturing specialists, and marketers to work jointly in designing a product and selecting a production process.
B) Increased market segmentation and technological advances mandate long development cycles.
C) Firms like Ford and Honda found that the concept of concurrent engineering is not cost effective.
D) Recent trends are for manufacturing firms not to involve operations until the final design stage has been reached.

Question 39

Which of the following statements about competitive priorities is TRUE?

A) To survive, all firms in an industry must compete on the same dimensions of competitive priority.
B) A good delivery time is less than a few weeks, irrespective of the industry under consideration.
C) Club Med competes on the dimension of high- performance design in part by offering excellent entertaining, dining, and recreational facilities.
D) Firms emphasizing low price have slack capacity and hold large inventories in order to be efficient.

Question 40

Which one of the following statements concerning measures of productivity is FALSE?

A) Measures of labour productivity are generally more informative than multifactor measures of productivity.
B) Multifactor measures of productivity must convert the quantities being measured to a common unit of measure such as dollars.
C) The number of insurance claims processed per week by employees in an insurance company is a valid measure of productivity.
D) Productivity is measured as the ratio of outputs divided by inputs.

Question 41

______ is a set of activities that delivers value to external customers.

Question 42

Name the three competitive priorities for time, and give an example of each.

Question 43

______ is the frequency with which the product or service meets design specifications.

Question 44

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

Question 45

Name the two competitive priorities for quality, and give an example of each.

Question 46

______ is how industrial buyers often refer to fast delivery time.

Question 47

______ is the synchronization of a firm's processes with those of its suppliers and customers to match the flow of materials, services, and information with customer demand.

Question 48

Explain what an operations strategy is and the importance of competitive priorities. Give an example from an organization (public or private, manufacturing or service).

Question 49

A form of strategic alliance when one firm has resources and capabilities that another needs but is unwilling (or unable) to duplicate is called _______ .

Question 50

What skill areas contribute to the success of an operations manager?

Question 51

An organization is only as effective as its ______

Question 52

Operations management refers to the direction and control of _______ that transform
into products and services.

Question 53

The designing and managing of process to ensure that we meet humanity's needs today without hurting the ability of future generations to meet their own needs. is called______
.

Question 54

______ is a demonstrated level of performance of an order winner that is required for a firm to do business in a particular market segment.

Question 55

______ refers to an alliance where two firms agree to produce a service or good jointly.

Question 56

______ is the ability to accelerate or decelerate the rate of production quickly to handle large fluctuations in demand.

Question 57

______ is the elapsed time between receiving a customer's order and filling it.

Question 58

______ measures how quickly a new product or service is introduced, covering the elapsed time from idea generation through final design and production.

Question 59

Identify and describe three different trends in operations management.

Question 60

______ measures the frequency with which delivery- time promises are met.

Question 61

An operations strategy is a pattern of decisions and investments over time that develop a competitive advantage.

Question 62

A process involves transforming inputs into outputs.

Question 63

Processes do not necessarily add value to every customer along the supply chains.

Question 64

Productivity is defined as ______ over ______ .

Question 65

Nationalization is a political risk in which a government may take over a firm's assets without paying compensation.

Question 66

Functions within an organization are characterized by having their own knowledge and skill areas, primary responsibilities, processes, and decision domains.

Question 67

Multifactor productivity measures are determined by measuring more than one of the input resources used to produce outputs.

Question 68

Order qualifier refers to the demonstrated level of performance of an order winner that is required for a firm to do business in a particular market segment.

Question 69

Competitive priorities are the means by which operations implements the firm's corporate strategies.

Question 70

______ is an index of the output per person or hour worked.

Question 71

Consistent quality is the frequency with which the product or service meets any specification.

Question 72

One factor used to determine market segments is psychological factors.

Question 73

A support process provides ______ and ______ to the core processes.

Question 74

Support processes provide key resources, capabilities, or other inputs that allow the core processes to function.

Question 75

Labour productivity is an index of the output per person or hour worked.

Question 76

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

Question 77

The principles of operations management is strictly for the supervisor to direct customers' traffic.

Question 78

The concept of a process within a process is referred to as a(n)______ .

Question 79

Flexibility is a possible competitive priority.

Question 80

The combination of quality, time, flexibility, customer experience, and innovation relative to price for a particular customer benefit bundle of goods and services is described as ______
.