Exam 1 Supply Chain

A well-designed scorecard should consist of about ______________ distinctive measures. 5-10 20-25 50 100+

20-25

Which of the following is not a service statement found on L.L. Bean's customer service mantra? A customer is not an interruption of our work. He is the purpose for it. A customer represents a moment of truth. A customer is not dependent on us . . . we are dependent on him. A customer is not someone to argue or match wits with. Nobody ever won an argument with a customer. A customer is a person who brings us his wants.

A customer represents a moment of truth

What are the two types of touch points? Acquisition; Utilitarian Acclimated; Utilization Acclimated; Utilitarian Accidental; Utilitarian Acquisition; Utilization Accidental; Universal

Acquistion;Utilization

Which of the following is not one of the steps in the DMAIC quality methodology?

Act Control Improve Define Measure answer-act

Which of the following is a characteristic of a pet project program? a. Only high-potential employees are given the resources needed to pursue a pet project. b. Pet-project champions recruit team members to join the team. c. The pet-project team sets its own performance goals. d. The pet-project team builds its own plan, including the identification of performance milestones. f. B, C, and D only

B,C, and D only

Which of the following primary technology systems is needed to make sense of data by making hidden relationships visible? Data Analytics Big Data Data Display Data Capture

Data Display

When productivity growth is good, you need to ________________. When productivity growth is bad, you need to ___________________. Hire a consultant; Fix things yourself Hire a consultant; Hire a consultant Disseminate the practice elsewhere; Share the best practice Take corrective action; Learn what not to do Take corrective action; Disseminate the practice elsewhere Disseminate the practice elsewhere; Take corrective action

Disseminate the practice elsewhere; take corrective action

Which of the following is not a key benefit of a measurement strategy that is based on the use of balanced scorecards? Drives a fundamental focus on financial performance Imposes discipline Communicates top management's vision Links behavior to strategy Promotes future capability development

Drives a fundamental focus on finacail performance

Which of the following approaches to gathering information about customers provides the best insight into how customers really use a product? Focus Groups Ethnographic Studies In-depth Interviews Surveys Expert Panels

Ethnographic Studies

Which of the following is not a critical design decision?

Facility Location Product Design Facility Layout Inventory Management Process Design Answer-Inventory Management

According to Scott Adams, creator of the Dilbert comic strip, "Employees are our most valuable asset" is the great management truth.(T/f)

False

Aggressive benchmarking will enable you to become the best-in-class company on the practice/process you are benchmarking.(t/f)

False

Although it is difficult, serious service providers can control customer behavior in a way consistent with how a manufacturer controls the physical dimensions of a product.(T/F)

False

Although service industries account for about 80% of jobs in the U.S. economy, they only represent about 40% of the U.S. GDP.(T/F)

False

Consistent repeat business is a clear and unambiguous signal that a customer is loyal.(T/F)

False

Control decisions determine where and how you deploy your assets—especially plant and equipment (i.e., your infrastructure)—to create value over the long haul.(T/F)

False

Henry Ford invented the assembly line.(T/F)

False

If you deliver to promise, exceed industry standards, and meet customers' a priori expectations, you will definitely impress the customer and entice repeat purchase.(T/F)

False

In the Internet age, delivery has been called the most vital factor to long-term competitive success.(T/F)

False

Productivity growth, by definition, is good.(t/f)

False

Project-planning tools are used to schedule production in low-volume job shops.(T/F)

False

Retaining customers is often a more profitable approach than acquiring new customers since it costs 20 times more to make sales to a new customer than to an existing customer.(T/f)

False

The industrial revolution marked the beginning of good operations management practice.

False

To really execute a customer satisfaction strategy, you need to find out how customers both perceive and measure your firm's performance.(T/f)

False

Toyota's lean production system has documented that there is a single best or perfect way to make things. TrueFalse

False

When it comes to data capture, bricks-and-mortar stores like Walmart have a distinct advantage over their online rivals.(T/F)

False

Total costing is hard because relevant costs can arise in _________________ or at other ________________. Functions; Domains Accounts; Functions Functions; Times Functions; Locations Resources; Functions

Functions;times

The balanced scorecard was developed to help companies take a more ______________ and ______________ approach to measurement. Functional; Long-term Holistic; Strategic Short-term; Tactical Holistic; Functional Financial; Strategic

Holistic; Strategic

Which of the following is not a fundamental question you should ask as you design your company's balanced scorecard? How can we maximize share price? What are our goals? What skills do we need? What metrics do we need? None of the above; i.e., they are all fundamental questions

How was we maximize share price?

By changing the manufacturing environment it is possible to achieve higher levels of performance across all value dimensions. Which of the following is a critical aspect of improving the environment?

Increase process visibility b. Better share information c. Build a flexible workforce d. All of the above answer-all of the above

Too often, companies sacrifice __________ measurement on the altar of __________ measurement. Insightful; Elegant Insightful; Easy Thoughtful; Esoteric Easy; Elegant Easy; Insistent

Insightful; Easy

Which of the following practices/techniques helps to eliminate poorly designed jobs that alienate workers, reduce productivity, and stifle learning?

Job Enrichment b. Job Enlargement c. Employee Involvement d. All of the above answer-all of the above

Which of the following is not a process in the SCOR model/methodology?

Make Activate Plan Deliver Source answer-activate

Which of the following is not a functional area that should be included in a well-designed rotation program designed to cultivate the cross-experienced supply chain manager? Assembly line Production control Logistics Purchasing Finance None of the above; that is, they should all be included

None of the above

_______________ and _______________ are primarily responsible for creating form utility.

Operations; Purchasing Research & Development; Finance Marketing; Research & Development Operations; Human Resources Purchasing; Marketing Finance; Operations answer-Operations; purchasing

An ____________________ makes you distinctive, helping you differentiate yourself from rivals. Order Loser Order Qualifier Order Innovator Order Winner

Order Winner

What are the two primary types of scanning?

Passive and Proactive

Which of the following represents the dark side of modern data analytics and the trend toward customer profiling? Predictive analytics reveals causality. People never believe the data and the stories they tell. Although huge amounts of data can be collected, the tools for analyzing data are still rather unsophisticated. Past buying behavior does not always predict future behavior.

Past buying behavior does not always predict future behavior

As you look at a supply chain map, you can be confident you are looking at a winning supply chain if it depicts the right ______________ and the right _________________.

Price; Promotion Products; Price Players; Relationships Players; Products Players; Price answer-players;relationships

Which of the following is not an objective of proactive scanning?

Promote an adaptable, forward-looking mind-set among managers and employees. Detect important cultural, economic, legal, political, and technological events and trends. Help managers understand the company's strengths and weaknesses. Identify and define potential opportunities and threats. Paint a picture of the future 20+ years into the future. answer-Paint a picture of the future 20+ years into the future

Which of the following is not one of the eight factors used to assess quality? Conformance Performance Features Reliability Aesthetics Statistics

Statistics

Which of the following accurately describe the bullwhip effect?

The bullwhip effect argues that small changes in retail-level demand get magnified as they ripple upstream toward suppliers. The bullwhip effect argues that sharing point-of-sales information immediately with upstream members of the supply chain can reduce costs and improve service. The bullwhip effect argues that collaborative forecasting with supply chain partners can reduce costs and improve service. -All of the above answer-all of the above

Which of the following accurately describes the bullwhip effect?

The bullwhip effect argues that variations in supply magnify as they move downstream toward the customer. b. The bullwhip effect argues that variations in demand magnify as they move upstream toward suppliers. c. The bullwhip effect argues that every company needs to hold ample just-in-case inventory. d. The bullwhip effect argues that it is better to stock out than to hold inventory. e. All of the above f. c and d only answer-the bullwhip effect argues that variations in demand magnify as they move upstream toward suppliers.

Value can only be realistically assessed from the standpoint of _________________. The Customer The Shareholder The CEO The Stock Price Senior Management The Worker

The customer

Which of the following is not one of the characteristics of an indispensable supply chain manager? Cross functionalist Topper Coach Catalyst Choreographer

Topper

Which of the following companies invented the lean six sigma paradigm shift?

Toyota

A bad scorecard is worse than no scorecard.

True

A successful supply chain leader achieves key goals through the people you work with. TrueFalse

True

ABC classification relies on the Pareto principle. The Pareto principle observes that 20% of a firm's customers drive 80% of sales and/or profits. TrueFalse

True

ABC classification relies on the Pareto principle. The Pareto principle observes that 80% of your customers drive 20% of the benefits.(T/F)

True

An open systems view reiterates that companies operate in a dynamic, ever-changing environment, requiring managers to constantly adapt in order to remain competitive.(T/F)

True

As an operations manager, you need to remember Darwin's Law: Only the adaptable survive. After all, Constant adaptation is the only way to establish and maintain world-class operations.(T/F)

True

As an operations manager, your job is to create customer value. (T/F)

True

At companies that value proactive scanning, scanning is part of everyone's job.(T/F)

True

Big data gets its name from the reality that about 90% of the world's data was created in the past two years—a fact that is changing the way companies view and manage data..(T/F)

True

Cross training only works when you 1) give workers the chance to make real decisions that make an impact and 2) reward them for the value they create.(t/f)

True

Forecasting is the tool you use to guess what products are going to sell—and when they will sell.(T/F)

True

People mold their expectations and behavior to measures; therefore, you need to measure the right things..(t/f)

True

Performed well, a SWOT analysis tells a compelling story that motivates change, drives learning, and improves performance.(T/F)

True

Process design focuses on the technology and work design used to make products or deliver services.(T/F)

True

Supply chain management involves working closely with key suppliers (and customers) to co-create customer value.(T/F)

True

Tangibility of Offerings refers to the fact that you can't hold a service in your hand—i.e., you can only experience it as you consume it.(T/F)

True

The choreographer rigorously analyzes design tradeoffs and executes with discipline while cultivating creative and collaborative relationships.(t/f)

True

Which of the following is the missing phrase in this extended measurement mantra: "If you can't measure it, _________________________, therefore, you can't manage it." You are in a world of hurt You don't understand it You will lose sleep at night You're only guessing

You do not understand it

Which of the following are steps in ABC classification? a. Classify companies by sales b. Define line responsibility for each customer c. Modify classifications based on strategic issues d. Restructure companies based on size e. a and c only

a and c only

Which of the following characterizes a goal-setting culture? a. Innovation and change happen without coercion. b. Change is viewed as a threat to job security. c. Personal autonomy is restricted. d. Passion emerges and people achieve higher levels of personal growth e. All of the above f. a and d only

a and d only

Which of the following hobbies illustrates a transformation process?

a. Art b. Cooking c. Do-it-yourself projects d. Mountain biking e. All of the above f. a, b, and c only answer-F

Which of the following are ways to manage the fact that services are perishable—i.e., they cannot be inventoried?

a. Buy a bigger warehouse b. Build capacity for peak demand and live with excess capacity during off-peak demand c. Automate your existing warehouses d. Build capacity for average demand and be willing to lose sales when demand is higher e. Try to influence consumer behavior to match demand to supply—e.g., discounts for non-peak times. f. All of the above g. b, d, and e only answer- b,d, and e only

Which of the following are the two characteristics that distinguish service operations?

a. Customer contact b. Inevitability c. Tangibility d. Capital intensity g. a & c only answer-a and c only

Which of the following accurately depict elements of a proactive scanning process?

a. Look everywhere—both inside and outside the firm. b. Use a variety of tools—both formal and informal. c. Synthesize insights by looking for common themes and trends d. Communicate persuasively by creating a sticky message. e. All of the above answer-all of the above

Which of the following activities play a key, but interconnected role in the value chain?

a. Operations b. Logistics c. Marketing d. Finance e. Human Resources f. All of the above Answer- All of the above

Why should you care about needing to learn how to effectively manage services?

a. Services are a small part of the economy b. Services are very different from manufacturing operations. c. Services productivity growth and innovation are critical to future prosperity. d. Services are overrated, but they are still important. e. All of the above f. b & c only Answer-b&c only

Which of the following accurately describe a supply chain map?

a. To read a supply chain map, you start with the focal firm. b. Suppliers are mapped on the left side of the focal firm. c. Customers are depicted on the right side of the focal firm. d. Suppliers and customers are organized in columns called tiers. e. All of the above answer-all of the above

Which of the following is a type of team you are likely to encounter in today's supply chain decision-making environment? a. Advisory Councils b. Commodity Team c. Customer Relationship Management Team d. Problem-solving Team e. Supplier Development Team f. All of the above

all of the above

Which of the following is one of the fundamental steps in resource orchestration? a. Scan the environment b. Select team members c. Assign team roles d. Identify free agents e. b and c only

b and c only

Which of the following is a reason or rationale for the development of the balanced scorecard concept? a. Existing measures were too short-term focused. b. Managers wanted to maintain the status quo. c. Existing measures were to financially oriented. d. Existing measures focused too much on value creation and customer satisfaction. e. Both A & C

both A & C

Which of the following initiatives represents a true customer-success strategy? a. At the customer, for the customer b. New ways of working together c. Six sigma at the customer d. The customer-driven kaizen burst e. Both a and c

both a and c

Which of the following is a primary technology system employed in customer relationship management suites? a. Enterprise Resource Planning b. Data Capture c. Data Storage d. Inventory Management System g. both b and c

both a and c

Which of the following is an important mantra that helps explain why effective measurement is so important to supply chain management? a. What gets measured gets done b. Measure thrice cut twice c. If you can't measure it, you can't manage it d. Time tells e. Both A & C

both a and c

Focusing on the 3M fish story, which of the following are benefits of empowerment? a. Empowerment increases employee turnover. b. Empowerment is an essential element of the learning organization. c. Empowerment can lead to innovation and better new products. d. Empowerment helps increase managerial control over value-added processes. e. Both b and c

both b and c

Which of the following measurement mantras focuses on what you should measure? a. Measure twice; cut once b. What gets measured gets done c. If you can't measure it, you can't manage it e. Both b and c

both b and c

About 75% of the world's data was created in the past two years—a fact that is changing the way companies view and manage data.(t/f)

false

Empowerment gives employees autonomy over and responsibility for decision-making related to every aspect of the value-creation process.(t/f)

false

Empowerment programs/strategies are best suited for companies in high-tech, high-fashion, or other fast-past, so-called glamor industries.(t/f)

false

Everyone engages in, and ultimately thrives, in an empowerment culture.(t/f)

false

Because services can't be shipped, you lose decision-making flexibility. ___________________ and _____________________ are everything.

location;timing

Which of the following measurement mantras focuses on how you should measure? Rome wasn't built in a day If you can't measure it, you can't manage it What gets measured gets done Measure twice; cut once

measure twice; cut once

When it comes to achieving corporate goals, which of the following is more important than measurement? Setting the right strategy Hiring the right people Providing the right training All of the above None of the above

none of the above

Which of the following is not true of expectancy disconfirmation theory? When customers buy something, expectations and experiences interact. Experiences that don't meet expectations lead to dissatisfaction. Experiences that exceed expectations achieve delight and lead to repeat business. Feelings of satisfaction (or dissatisfaction) influence future purchase decisions. None of the above, that is, they are all implications of expectancy disconfirmation theory

none of the above, they are all implications of expectacy theory

Which of the following is not one of the three fundamental steps in resource orchestration? Scan the environment Select team members Assign team roles Build team cohesion None of the above

scan the environment

The balanced scorecard was developed to help companies avoid the counterproductive decisions that emerged from too much emphasis on ______________ and ______________ measures. Static; Change-oriented Long-term; Financially Oriented Financially; Functionally Oriented Short-term; Financially Oriented Change-oriented; Functionally Oriented

short-term; financally oriented

Effective measurement helps managers make better decisions by helping them understand how processes work.(t/f)

true

Empowerment programs/strategies can work in almost any industry, improving worker engagement and learning(t/f)

true

Which of the following is not a synthesis tool commonly used in scanning initiatives?

Cluster analysis Trend diagrams ABC classification Simple graphs Frequency charts answer-ABC Classification

_______________ processes influence how you deal with information; ________________ processes influence how you react to experiences. Affective; Cognitive Conative; Affective Affective; Conative Cognitive; Affective Cognitive; Conative

Cognitive;Affective

Which of the following companies made the advertising tagline, "Everyday low price," famous?

Compaq Computer Pan-AM A&P Intel Circuit City answer-A&P

Which of the following are commonly used types of benchmarking? Non-Competitive, internal and global benchmarking Internal, global and competitive benchmarking Global, competitive and non-competitive benchmarking Competitive, non-competitive and internal benchmarking

Competitive, non-competitive and internal benchmarking

Which of the following is not one of the core value dimensions?

Cost Agility Process Improvement Quality Delivery Innovation None of the above; that is, they are all core value propositions. answer-process improvement

The lack of total costing negatively influences investments needed to improve service levels, _______________, and lifetime stream of profits. Customer Satisfaction Accounting Performance Relevant Costs Short-term Organizational Performance Functional Efficiencies

Customer Satisfaction

Which of the following customer-service strategies focuses on meeting industry standards in key operational areas like product quality, productivity, product availability, on-time delivery, and service reliability? Customer Satisfaction Strategy Customer Success Strategy Customer Loyalty Strategy Customer Service Strategy Customer Delight Strategy

Customer Service Strategy