Deck 1: Using Operations to Create Value

Question 1

A process involves transforming inputs into outputs.

Answer 1

True

Question 2

Contact with the customer is usually higher in a manufacturing process than in a service process.

Answer 2

False

Question 3

What are the three key functions of a firm and what is each responsible for?

Answer 3

The three main functions of a firm are operations, finance, and marketing. The operations function transforms material and service inputs into product and service outputs. The finance function generates resources, capital and funds from investors and sales of the firm's goods and services in the marketplace. The marketing function is responsible for producing sales revenue of the outputs.

Question 4

Which of these statements about processes is not True?

A) A process can have its own set of objectives.
B) A process can involve work flow that cuts across departmental boundaries.
C) A process can require resources from several departments.
D) A process can exist without customers.

Question 5

Which of these Great Moments in Operations and Supply Chain Management did not occur in the 20th century?

A) invention of the assembly line
B) publication of the Toyota Production Systems book
C) establishment of railroads
D) strategic planning for achieving product variety

Question 6

A nested process refers to a process within a process.

Question 7

Every process has a customer.

Question 8

The three mainline functions of any business are ________, ________, and ________.

Question 9

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

Question 10

At the level of the firm, service providers offer just services and manufacturers offer just products.

Question 11

At the level of the firm, service providers do not just offer services and manufacturers do not just offer products.

Question 12

Support functions in an organization include Accounting, Human Resources and Engineering.

Question 13

The three main line functions of any business include Operations, Finance and Marketing.

Question 14

The foundations of modern manufacturing and technological breakthroughs were inspired by the creation of the mechanical computer by:

A) Charles Babbage.
B) James Watt.
C) Eli Whitney.
D) Frederick Taylor.

Question 15

Regardless of how departments like Accounting, Engineering, Finance, and Marketing function in an organization, they are all linked together through:

A) management.
B) processes.
C) customers.
D) stakeholders.

Question 16

Quality is more easily measured in a service process than in a manufacturing process.

Question 17

As a functional area of a business, Operations translates materials and services into outputs.

Question 18

Manufacturing processes tend to be capital intensive.

Question 19

Operations management refers to the systematic design, direction, and control of ________ that transform ________ into products and services.

Question 20

At the process level, it is much easier to distinguish whether the process is providing a service or manufacturing a product.

Question 21

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

A) supply chain.
B) core process.
C) support process.
D) system.

Question 22

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

Question 23

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

A) Short-term demand tends to be highly variable.
B) Operations are more capital intensive.
C) Outputs are more intangible.
D) Quality is more difficult to measure.

Question 24

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

A) At the start of the new semester, a student first pays tuition and then goes to the bookstore.
B) A customer service representative verifies a caller's account information.
C) A candidate's intent to graduate is checked for financial holds by the Bursar and for degree requirements by Advising before the diploma mill prints their sheepskin.
D) A stockbroker calls a client and advises her to sell silver short.

Question 25

Budgeting, recruiting, and scheduling are examples of a:

A) development.
B) core process.
C) support process.
D) system.

Question 26

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

Question 27

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.

Question 28

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:

A) the lumber company.
B) the Receiving Department at ABC.
C) the Customer Service Department at ABC.
D) the toy store at the mall.

Question 29

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

A) customer relationship process.
B) new service development process.
C) order fulfillment process.
D) supplier relationship process.

Question 30

Manufacturing processes usually have:

A) physical, durable output.
B) high levels of customer contact.
C) output that cannot be inventoried.
D) low levels of capital intensity.

Question 31

Service processes usually have:

A) physical, durable output.
B) low levels of customer contact.
C) output that can be inventoried.
D) shorter response times.

Question 32

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.

Question 33

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

Question 34

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

Question 35

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:

A) the lumber company.
B) the Receiving Department at ABC.
C) the Shipping Department at ABC.
D) the toy store at the mall.

Question 36

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

A) Output can be inventoried.
B) The response time is longer.
C) There is less customer contact.
D) Quality is not easily measured.

Question 37

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:

A) the lumber company.
B) the Customer Service Department at ABC.
C) the Shipping Department at ABC.
D) the toy store at the mall.

Question 38

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

Question 39

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

A) customer relationship process.
B) new service development process.
C) order fulfillment process.
D) supplier relationship process.

Question 40

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:

A) the lumber company.
B) the Receiving Department at ABC.
C) the Shipping Department at ABC.
D) the toy store at the mall.

Question 41

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

Question 42

The framework for carrying out all of an organization's functions is:

A) the competitive priority.
B) the corporate strategy.
C) the market analysis.
D) the organizational design.

Question 43

A firm's core competencies should determine its core processes.

Question 44

A company realizes that recent layoffs at its primary company reflect potential falling demands for its customers' products, and hence for its own products. The company has engaged in:

A) flow strategy.
B) market segmentation.
C) mission statement redefinition.
D) environmental scanning.

Question 45

Flexibility is a possible competitive priority.

Question 46

Which of these business processes typically lies within the realm of operations?

A) complaint handling
B) customer relationship
C) help desks
D) waste management

Question 47

Which of the following is an example of a core competency?

A) facilities
B) top quality
C) low-cost operations
D) on-time delivery

Question 48

In response to social and political moves to discourage cigarette smoking, major cigarette manufacturers have had to diversify into other products. Identifying the pressures against smoking is an example of:

A) environmental scanning.
B) market segmentation.
C) flow strategy.
D) mission statement development.

Question 49

Admission to the prestigious school had become so competitive that a high GPA is no longer enough to separate one fresh-faced high school student from another. Today's outstanding candidate must also demonstrate their involvement in a myriad of extracurricular activities in order to be admitted. It seems that good grades are now:

A) a needs assessment.
B) order qualifiers.
C) order winners.
D) a mission statement.

Question 50

A firm once made purchasing decisions based on which supplier had the lowest cost. But once cash flow was healthy, purchasing decisions were made based on the fastest delivery of goods and services by firms. In this case, delivery speed is clearly the order qualifier.

Question 51

The cumulative work of the processes of a firm is a(n) ________.

Question 52

Core competencies are:

A) product or service attributes that represent the needs of a particular market segment.
B) another name for competitive priorities.
C) various flow strategies.
D) the unique resources and strengths that management considers when formulating strategy.

Question 53

One form of strategic alliance is the ________, in which two firms agree to cooperate to produce a product or service together.

Question 54

You are interested in buying a laptop computer. Your list of considerations include the computer's speed in processing data, its weight, screen size, and price. You consider a number of different models, and narrow your list based on speed and monitor screen size, then finally select a model to buy based on its weight and price. In this decision, weight and price are examples of:

A) order qualifiers.
B) a needs assessment.
C) order winners.
D) a mission statement.

Question 55

What are four core processes in a firm and how are they related?

Question 56

Price, quality, and the degree of customization are all examples of:

A) volume needs.
B) other needs.
C) product needs.
D) delivery system needs.

Question 57

The first three cars I bought all fell apart around 50,000 miles. It was called planned obsolescence and no one seemed to care until companies entered the market that promised 70,000, then 80,000, and finally 100,000 mile warranties. What sets a great car apart from a good one now is not the quality, which is assumed, but performance, safety and fuel economy. A car that can achieve all three is highly sought after. In the automotive market, performance, safety and fuel economy are sterling examples of:

A) order winners.
B) a needs assessment.
C) order qualifiers.
D) a mission statement.

Question 58

________ provide vital resources and inputs to core processes.

Question 59

Firm A wants to enter a foreign market and has a skill that is difficult to duplicate. Firm B desires this skill, so Firm A works with Firm B in an arrangement known as a joint venture.

Question 60

The Gap, Inc. has targeted teenagers and young adults in need of casual clothes, and through its GapKids stores, the parents or guardians of infants through 12-year-olds. This is an example of:

A) market segmentation.
B) a collaborative effort between the company and its customers.
C) a needs assessment.
D) a mission statement.

Question 61

A popular haberdashery could take a customer's measurements in the afternoon and produce a dandy suit ready for customer pickup by next morning. Their competitive priority was:

A) variety.
B) top quality.
C) delivery speed.
D) on-time delivery.

Question 62

A firm gains competitive advantage by outperforming competitors in terms of competitive priorities, which fall into four major groups: ________, ________, ________, and ________.

Question 63

You are interested in buying a laptop computer. Your list of considerations include the computer's speed in processing data, its weight, screen size and price. You consider a number of different models, and narrow your list based on its speed and monitor screen size, then finally select a model to buy based on its weight and price. In this decision, speed and monitor screen size are examples of:

A) order winners.
B) a mission statement.
C) a needs assessment.
D) order qualifiers.

Question 64

Most products today are composites of global materials and services from throughout the world.

Question 65

Competitive priorities:

A) may change over time.
B) are the cost, quality, time and flexibility dimensions that a process or supply chain actually possesses and is able to deliver.
C) are used to distinguish between a service that is considered and one that is actually purchased.
D) are developed by a review of internal operations capabilities.

Question 66

The increased global presence of many firms has lessened the burden to behave ethically.

Question 67

For students not wanting a traditional major in marketing or accounting, for example, the college decided to create a general business major, which allowed any combination of the easiest business courses to comprise the program. The competitive priority achieved in this example is:

A) customization.
B) delivery speed.
C) consistent quality.
D) low-cost.

Question 68

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

Question 69

A business focusing on increasing the efficiency of its operations is more directly addressing:

A) volume flexibility.
B) variety.
C) consistent quality.
D) low-cost.

Question 70

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 71

The Internet of Things is a trend that affects operations and supply chain management in a minor way.

Question 72

A company's ability to quickly introduce a new service or product would be best described as:

A) volume flexibility.
B) variety.
C) consistent quality.
D) development speed.

Question 73

Using an airline example for competitive priorities, the process capability of handling service needs of all market segments and promotional programs would be best described by:

A) top quality.
B) variety.
C) consistent quality.
D) delivery speed.

Question 74

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

Question 75

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

Question 76

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

Question 77

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

Question 78

While other suppliers bidding for the contract brought bids with lower per unit costs, Orchard wanted to take delivery based on the fact that the components they were using were machined to their exacting specifications 99.99999% of the time. Orchard's competitive priority was:

A) top quality.
B) consistent quality.
C) on-time delivery.
D) delivery speed.

Question 79

Every sub-contractor knew that their quality had to be excellent to be considered for the project; it was their ability to deliver on time that would secure the lucrative contract. Quality was recognized as being an ________, but on-time delivery was the ________.

Question 80

A company's ability to support varying rates of production is best described as:

A) volume flexibility.
B) variety.
C) consistent quality.
D) development speed.