Production and Operations Management Final

RFQ stands for

Request for rotation

___ Management refers to the broad set of activities carried out by organizations to analyze sourcing opportunities, develop sourcing strategies, select suppliers, and carry out all the activities required to procure goods and services.

supply

SCOR Model stands for

supply chain operations reference model

ATO is an acronym for

assemble to order

___ manufacturing gets its name from the fact that items are moved through the different manufacturing steps in groups, or batches

batch

___ layout is a layout in which the resources are physically arranged according to the dominant flow of activities for the product family

cellular

____ Benchmarking is the comparison of an organization's processes with those of competing organizations.

competitive

___ Charts are specialized run charts that help organization track changes in key measures over time.

control

___-based contract is a type of purchasing contract in which the price of a good or services is tied to the cost of some key input(s) or other economic factors, such as interest rates

cost

____ Time is the total elapsed time needed to complete a business process

cycle

...those firms who take Anheuser-Busch's products and move them along to the final consumer are positioned

downstream

___ strategies translate a business strategy into specific actions for functional areas, such as marketing, human resources, and finance.

functional

The use of resources within the firm to provide products or services is called ___

insourcing

A service ___ includes all the value-added physical and intangible activities that a service organization provides to the customer

package

___ Processes address the main value-added activities of an organization.

primary

Structural elements are ___ resources, such as buildings, equipment, and information technology

tangible

TQM stands for

total quality management

From Anheuser-Busch's perspective, the firms whose inputs feed into its operations are positioned

upstream

Order ___ are performance dimensions that differentiate a company's products and services from those of its competitors.

winners

In statistical terms, a process that achieves Six Sigma quality will generate about: A) zero defects per million opportunities. B) six defects per million opportunities. C) three defects per million opportunities. D) thirty-four defects per million opportunities.

C

A set of logically related tasks or activities performed to achieve a defined business outcome is a: A) process. B) primary process. C) support process. D) development process

A

An arrow in a process map represents a: A) move activity. B) start or finish point. C) delay.

A

On the first day of class at a new university you made judgments about the quality of the class before the professor had entered the room. You noted the comfort of the accommodations, the fine works of art in the halls and on the classroom wall and the soothing music piped in over the sound system. This dimension of quality is: A) aesthetic. B) performance. C) features. D) perceived quality.

A

The point where the customer interfaces directly with the service organization is: A) the front room B) the back room. C) onstage. D) the floor.

A

The use of supply chain partners to provide products or services is called: A) outsourcing. B) insourcing. C) offloading. D) partnering.

A

When compared with single sourcing, multiple sourcing has the advantage of: A) spreading risk. B) volume leveraging. C) lower transportation costs. D) reduced quality variability.

A

Which of the following is NOT a core idea of total quality management? A) cost reduction B) leadership involvement C) employee empowerment D) continuous improvement

A

Which of these is a major operations and supply chain infrastructural decision category? A) organization B) facilities C) capacity D) technology

A

A(n) ________ is an example of an infrastructural element. A) building B) organizational structure C) office equipment D) fleet of delivery trucks

B

In the Sweet Action! supply chain, the flowers produce the nectar which is collected by the bees. The busy bees take this nectar and produce honey, which is collected by the beekeeper, who puts it in quart jars and supplies it to the baker. The baker produces a lovely array of confections, which are purchased by the local restaurant. The restaurant sells these confections to their loyal diners, who gleefully consume them and nag the chef for his recipe. Which of these statements about this supply chain is best? A) The busy bees are a second-tier supplier of the local restaurant. B) The beekeeper is a second-tier supplier of the local restaurant C) The baker is a second-tier supplier of the local restaurant. D) The local restaurant is a second-tier supplier of the loyal diners.

B

One advantage of outsourcing is that it: A) gives the company a high degree of control over its operations. B) increases the company's access to state-of-the-art products and processes. C) protects the company's proprietary designs and processes. D) discourages the development of the company's core competencies.

B

Products that are customized only at the very end of the manufacturing process are known as: A) make-to-stock. B) assemble-to-order C) make-to-order. D) engineer-to-order

B

In the Sweet Action! supply chain, the flowers produce the nectar which is collected by the bees. The busy bees take this nectar and produce honey, which is collected by the beekeeper, who puts it in quart jars and supplies it to the baker. The baker produces a lovely array of confections, which are purchased by the local restaurant. The restaurant sells these confections to their loyal diners, who gleefully consume them and nag the chef for his recipe. Which of these statements about this supply chain is best? A) The busy bees are a first-tier supplier of the local restaurant. B) The beekeeper is a first-tier supplier of the local restaurant. C) The baker is a first-tier supplier of the local restaurant D) The local restaurant is a first-tier supplier of the loyal diners.

C

Products that use standard components but the final configuration of those components is customer-specific are known as: A) make-to-stock. B) assemble-to-order. C) make-to-order D) engineer-to-order.

C

Which of the following statements about the operations function is NOT correct? A) Inputs to operations can take many different forms. B) Nearly all operations activities require coordination with other business functions. C) The outputs of an operations function are always tangible D) Operations management activities are information and decision intensive.

C

Which of these is a major operations and supply chain structural decision category? A) organization B) planning and control C) capacity D) product and service development

C

Firms do not compete only against global competitors, but against: A) their suppliers. B) themselves. C) the customers of their competitors. D)their competitors' supply chains.

D

The ________ dimension of quality asks how long a product can go between failures or the need for maintenance. A) warranty B) lifetime C) serviceability D) reliability

D

Which of these statements about flows in a supply chain is best? A) Information and monetary flows move upstream and downstream, but physical flows move downstream only. B) Information flows move upstream and downstream, monetary flows move upstream only, and physical flows move downstream only. C) Information and monetary flows move upstream only and physical flows move downstream only. D) Information, physical and monetary flows move both upstream and downstream

D

A batch process is less flexible than an assembly line and less efficient that a job shop

False

A cellular layout is another name for a functional layout

False

A manufacturer seeking to reduce the variability of the quality of purchased products should use multiple sourcing

False

In a process map, a circle represents a step or activity in the process

False

Money spent training an employee how to do the job mistake-free is an example of an appraisal cost

False

Outsourcing can be risky because it decreases the firm's strategic flexibility

False

The first step of the purchasing process is to select the supplier

False

The primary focus of a swim lane process map is to depict flows of objects, information, and money

False

SQC is an acronym for

statistical quality control

A business is defined by its structural and infrastructural elements

True

A manufacturer that wants to make sure that suppliers do not become complacent should use multiple sourcing

True

A product-based layout arranges resources sequentially according to the steps required to make a product

True

An R chart is used to track how much the individual observations within a sample vary

True

Appraisal costs can occur when a company has NOT produced any defective items

True

Changeover flexibility refers to the ability of a company to change production quickly from one product to another with a minimal downtime in production

True

Conformance quality addresses whether the product was made or the service performed to specifications

True

Cycle time is the total elapsed time needed to complete a business process

True

Every organization has an operations function

True

The mission statement addresses a company's reason for existence, core values, and domain

True

The professional society for persons interested in operations and supply chain management is called APICS

True

The supply chain is a network of manufacturers and service providers that work together to create products or services needed by end users

True