chapter 1
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1. (p. 11) Efficiency means doing the right things to create the most value for the company.
FALSE
10. (p. 4) Fashion retailers, in particular, need to have plenty of inventory on hand because demand is so unpredictable.
TRUE
11. (p. 4) Today's leading retailers use operations and supply chain management techniques to match supply and demand as closely and quickly as possible.
FALSE
12. (p. 4) "Concept-to-cash" refers to the idea of generating revenue from licensing of patent rights or other intellectual property.
FALSE
13. (p. 4) OSCM is concerned with management of the trickiest parts of the system that produces a good or delivers a service.
TRUE
14. (p. 4) OSCM is a functional field of business with clear line management responsibilities.
FALSE
15. (p. 4) The supply network can be thought of as a pipeline through which cash, material and information flows.
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16. (p. 4) Supply networks cannot be constructed for every product or service.
TRUE
17. (p. 6) "Operations" refers to manufacturing and service processes used to transform resources employed by a firm into products desired by customers.
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18. (p. 6) "Supply Chain" refers to supply chain processes that move information and material to and from the manufacturing and service processes of the firm.
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19. (p. 6) "Supply Chain" includes inbound freight and inventory only.
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2. (p. 11) Effectiveness means doing the right things to create the most value for the company.
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20. (p. 6) It is critical that a sustainable strategy meet the needs of shareholders and employees. It is also highly desirable that it preserves the environment.
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21. (p. 6) Supply and demand planning is needed to coordinate the manufacturing, service, and supply chain processes.
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22. (p. 6) Supply and demand planning involves forecasting demand, making intermediate term plans for how demand will be met, controlling different types of inventory, but not the detailed weekly scheduling of processes.
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23. (p. 6) All managers should understand the basic principles that guide the design of transformation processes.
TRUE
24. (p. 7) Operations and supply management changes constantly because of the dynamic nature of competing in global business and the constant evolution of information technology.
FALSE
25. (p. 7) Internet technology has made the sharing of reliable real-time information expensive.
FALSE
26. (p. 7) Use of systems like point-of-sale, radio-frequency identification tags, bar-code scanners, and automatic recognition has made it more difficult to understand what all the information is saying.
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27. (p. 7) Operations and supply chain processes can be conveniently categorized as planning, sourcing, making, and delivering.
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28. (p. 7) A major aspect of planning involves developing a set of metrics to monitor the supply chain.
FALSE
29. (p. 8) Returning involves processes for receiving worn-out, defective, and excess products back from customers but does not involve support for customers who have problems with the product.
TRUE
3. (p. 11) A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we could refer to this doctor as being efficient but not effective.
FALSE
30. (p. 8) Delivering is not considered in supply chain analysis when outside carriers are contracted to move products to customers.
TRUE
31. (p. 8) Services are intangible processes that cannot be weighed or measured.
FALSE
32. (p. 8) Service innovations can be patented.
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33. (p. 9) Services are homogeneous.
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34. (p. 9) Services are defined and evaluated as a package of features that affect the five senses.
FALSE
35. (p. 9) Automobiles and appliances are classified as "pure goods."
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36. (p. 10) Core service providers integrate tangible goods into their product.
TRUE
37. (p. 10) Servitization refers to a company building service activities into its product offerings for current users.
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38. (p. 10) Servitization is a nonsense word invented to describe the disappearance of manufacturing from the US economy.
TRUE
39. (p. 12-13) In contrast to careers in finance and marketing, careers in OSCM involve hands-on involvement with people and processes.
TRUE
4. (p. 11) A worker can be efficient without being effective.
FALSE
40. (p. 13) A bank branch manager position is not an OSM-type of job.
FALSE
41. (p. 13) A supply chain manager is an OSCM job while a purchasing manager is not.
TRUE
42. (p. 14) Just in time (JIT) production was a major breakthrough in manufacturing philosophy pioneered by the Japanese.
TRUE
43. (p. 14) Lean manufacturing refers to just in time production coupled with total quality control.
TRUE
44. (p. 15) The Baldrige National Quality Award was started under the direction of the National Institute of Standards and Technology.
FALSE
45. (p. 15) The approach that advocates making revolutionary changes as opposed to evolutionary changes is called creation theory.
TRUE
46. (p. 15) The approach that advocates making revolutionary changes as opposed to evolutionary changes is called "business process reengineering."
TRUE
47. (p. 15) Business process reengineering is contrasted to total quality management which commonly advocates incremental change.
TRUE
48. (p. 17) The "triple bottom line" relates to the economic, employee, and environmental impact of a firm's strategy.
FALSE
49. (p. 17) Sustainability is the ability to maintain profits in a system.
TRUE
5. (p. 11) A process can be effective without being efficient.
FALSE
50. (p. 17) Raising senior management awareness of operations as a competitive weapon is not an issue on OSCM.
FALSE
51. (p. 15) "Green belt" programs are coordinated public works projects aimed at placing an environmentally friendly zone around major cities.
TRUE
52. (p. 15) Green and black belt programs teach six-sigma quality tools to managers at many corporations.
TRUE
53. (p. 16) The central idea of supply chain management is to apply a total system approach to managing the flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer.
FALSE
54. (p. 16) The term "electronic commerce" refers to the buying and selling of electronic products and devices.
TRUE
55. (p. 16) The term "electronic commerce" refers to the use of the Internet as an essential element of business activity.
FALSE
56. (p. 16) SSME is an acronym standing for "Service Sector Management Economics."
TRUE
57. (p. 16) Science Management and Engineering aims to apply the latest concepts in information technology to continue to improve service productivity of technology-based organizations.
C. All managers should understand the basic principles that guide the design of transformation processes.
58. (p. 6) A reason for studying operations and supply chain management (OSCM) is which of the following?
B. Pure goods, core goods, core services, pure services
59. (p. 9) The Goods-Services Continuum consists of which set of the following categories?
TRUE
6. (p. 4) Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services.
C. Data storage systems
60. (p. 9) Which of the following are defined as core goods?
E. Increasing global servitization networks.
61. (p. 10 & 17) Current issues in OSCM do not include:
C. Hospital administrator
62. (p. 13) Which of the following is not listed in the text as jobs in OSCM?
A. Service jobs are unskilled.
63. (p. 8-9) Which of the following is not a characteristic that distinguishes services from goods?
D. Selecting
64. (p. 7) Which of the following is not a way that operations and supply processes are categorized?
B. Facilitating goods
65. (p. 9) One of the package of features that make up a service are:
TRUE
7. (p. 11) The term "value" refers to the relationship between quality and the price paid by the consumer.
TRUE
8. (p. 11) Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict between the two goals.
TRUE
9. (p. 15) Central to the concept of operations strategy are the notions of operations focus and trade-offs.
