SCM Exam 1
An assembly chart shows an exploded view of the product, usually a 3D or isometric drawing. true or false
false
Core competencies are good candidates for outsourcing a) true b) false
false
Boeing's development of the 787 Dreamliner is an example of a company obtaining a competitive advantage through product differentiation/innovation a) true b) false
a) true
Which of the following is the FINAL step in a forecasting system? a) validate and implement the results b) make the forecast c) select the forecast model d) gather the data needed to make the forecast
a) validate and implement the results
The person who believed that mgt must do more to improve the work environment and processes so that quality can be improved wasL a) W. Edwards Deming b) Walter Shewhart c) Eli Whitney d) Henry Ford
a)W. Edwards Deming
SWOT analysis refers to
strengths, opportunities, weaknesses, and threats
A house of quality would depict the strength of the relationship between which of the following two items? a) The customer's desire for a durable wallet and the company's choice of material for the wallet. b) The design team's choice of material for a wallet and the materials that were considered but rejected by the design team. c) The customer's need for a sealable change pocket and the customer's need for plastic inserts to display pictures. d) The stitching used in your company's new product and the stitching used in a competitor's wallet.
A
Does Boeing practice a multinational operations strategy, a global operations strategy, or a transnational operations strategy?
Global
Which of the following is a qualitative forecasting method? a) Delphi method b) naive approach c) linear regression d) trend projection
a) Delphi method
Which of the following is an example of competing on quick response? a) a firm's products are introduced into the market faster than its competitors' products b) a firm produces its product with less raw material waste than its competitors do c) a firm offers more reliable products than its competitors do d) a firm utilizes its capacity more effectively than its competitors do e) a firm advertises more than its competitors do
a) a firm's products are introduced into the market faster than its competitors products
Competing on cost is a) achieving maximum value as perceived by the customer b) concerned with reliability of scheduling c) based upon flexibility d) concerned with uniqueness
a) achieving maximum value as perceived by the customer
Which of the following does not represent competing on response? a) based on providing uniqueness b) concerned with reliability scheduling c) based on flexibility d) based on quickness
a) based on providing uniqueness
Which of the following is the FIRST step in a forecasting system? a) determine the use of the forecast b) select the forecast model c) determine the time horizon of the forecast d) select the items to be forecasted
a) determine the use of the forecast
According to the authors, which of the following strategic concepts allows firms to achieve their missions? a) differentiation, cost leadership, and response b) differentiation, quality leadership, and response c) productivity, efficiency, and quality leadership d) differentiation, distinctive competency, quality leadership, and capacity e) distinctive competency, cost leadership and experience
a) differentiation, cost leadership, and response
An international business is a firm that a) engages in international trade or investment b) hires non-US citizen c) is not from the US d) produces a wide range of products
a) engages in international trade or investment
Which of the following tasks would NOT typically represent an operations mgt activity at Hard Rock Cafe? a) filing a tax return b) receiving a shipment of incoming food ingredients c) preparing an employee schedule d) designing an efficient layout
a) filing a tax return
What is the difference between a multinational corporation (MNC) and an international business a) for the multinational firm, the business done outside the country is especially significant b) the international business has sites in a larger number of countries c) the international business has been in existence longer than the multi-national firm d) there is no difference
a) for the multinational firm, the business done outside the country is especially significant
Which of the following international operations strategies involves a high degree of centralization? a) global b) multidomestic c) transnational d) international
a) global
In which stage of the product life cycle should product strategy focus on process modifications as the product is being fine tuned for the market? a) introduction b) maturity c) incubation d) decline e) growrth
a) introduction
Which of the following phases of the product life cycle has negative cash flow and increasing spending on development and production? a) introductory phase b) maturity phase c) growth d) decline phase
a) introductory
Which of these is NOT one of the 10 strategic OM decisions? a) marketing b) managing quality c) scheduling d) layout strategies
a) marketing
What appears to provide the best opportunity for increases in productivity? a) mgt b) labor c) raw materials d) capital
a) mgt
"Today's forecast equals yesterday's actual demand" is referred as: a) the naive approach b) the Delphi method c) exponential smoothing d) a moving average
a) naive approach
A large percentage of the revenue of most firms is spent on which function a) operations b) finance c) research and development d) marketing
a) operations
Which of the following is a reality each company faces regarding its forecasting system? a) Outside factors that we cannot predict or control often impact the forecast. Your answer is correct.B. b) Most forecasting techniques assume there is no underlying stability in the system. c) After automating their predictions using computerized forecasting software, firms closely monitor only the product items whose demand is stable. d) Product family forecast are less accurate than individual product forecasts.
a) outside factors that we cannot predict or control often impact the forecast
Which of the following OM decisions determines how a good or service is produced and commits mgt to specific technology, quality, human resources, and capital investments? a) process & capacity design b) managing quality c) human resources and job design d) design of goods and services
a) process & capacity design
Which of the following did the authors not suggest as a reason for globalizing operations? a) pursue stockholder approval ratings b) attract and retain global talent c) reduce costs d) understand markets e) improve the supply chain
a) pursue stockholder approval ratings
An assembly drawing: a) shows an exploded view of the product b) provides detailed instructions on how to perform a given task c) shows in schematic form, how the product is assembled d) describes the dimensions and finish of each component e) lists the operations, including assembly and inspection, necessary to produce the component with the material specified in the bill of material
a) shows an exploded view of the product
An assembly chart: a) shows graphically how the product is assembled b) lists the operations, including assembly and inspection, necessary to produce the component with material specified in the bill of material c) provides detailed instructions on how to perform a given task d) shows an exploded view of the product e) describes the dimensions and finish of each component
a) shows graphically how the product is assembled
Which of the following is NOT a characteristic of services? a) standardized product b) unique c) intangible d) produced and consumed simultaneously
a) standardized product
A global network of organizations and activities that supply a firm with goods and services is referred to as: a) a supply chain b) business functions c) operations mgt d) production
a) supply chain
In general, the supply chain starts with a) the provider of basic raw materials b) a distributor c) final customers at the retail store d) research and development
a) the provider of basic raw materials
The father of scientific mgt is: a) Eli Whitney b) Frederick W. Taylor c) Henry Ford d) Henry Gantt
b) Frederick W. Taylor
The Japanese method of organizing for product design features: a) distinct departments with assigned tasks b) a single organization without subdivision or individual teams c) teams d) product managers e) none of the above
b) a single organization without subdivision or individual teams
What is a graphical link of competitive advantage, KSFs and supporting activities? a) key success factor network b) activity map c) competitive success grid d) product life cycle
b) activity map
A strategy is a) the purpose for which an organization is established b) an action plan to achieve a mission c) established prior to establishing a mission d) a functional area of the firm
b) an action plan to achieve a mission
A set of skills, talents, and capabilities in which a firm is particularly strong is referred to as a) differentiation b) core competencies c) experience differentiation d) key success factors (KSFs)
b) core competencies
When should product strategy focus on forecasting capacity requirements? a) at the introduction stage of the product life cycle b) at the growth stage c) maturity stage d) decline stage e) saturation stage
b) growth stage of the product life cycle
Which operations function at a manufacturing facility strives for the efficient use of machines, space and personnel? a) process analysis b) industrial engineering c) production and inventory control d) design
b) industrial engineering
Which of 10 OM decisions applied at Hard Rock Cafe focuses on maximizing the customer experience and driving customers toward revenue-generating activities? a) scheduling b) layout design c) supply chain mgt d) location selection
b) layout design
Which of the following represents an internal product development strategy? a) alliances b) migration of existing products c) joint ventures d) purchase technology or expertise by acquiring the developer
b) migration of existing products
Which of the following is the purpose or rationale for an organization's existence? a) charter b) mission c) articles of incorporation d) strategy
b) mission
The ration of all resources to the goods and services produced is referred as: a) labor productivity b) multi factor productivity c) single-factor productivity d) productivity growth
b) multi factor productivity
Which of the following international operations strategies uses decentralized authority with substantial autonomy at each business a) international b) multidomestic c) transnational d) global
b) multidomestic
The stated purposed of NAFTA is to a) increase product innovation in the wireless communication sector b) phase out all trade and tariff barriers among Canada, Mexico, and US c) reduce the outsourcing of jobs to foreign countries d) gain membership in the WTO
b) phase out all trade and tariff barriers among Canada, Mexico and US
Listing products in descending order of their individual dollar contribution to the firm is called: a) brainstorming b) product-by-value analysis c) product decision d) product life cycle
b) product-by-value analysis
What is a date pattern that repeats itself after a period of days, weeks, months or quarters? a) cycle b) seasonality c) trend d) random variation
b) seasonality
Which of the following forecasting steps comes directly after determining the time horizon of the forecast? a) make the forecast b) select the forecasting model c) gather the data d) select the items to be forecasted
b) select the forecasting model
The forecasting time horizon that would typically be easiest to predict for would be the a) intermediate range b) short range c) long range d) medium range
b) short range
Competition in the 21st century is no longer between companies; it is between a) countries b) supply chains c) individuals d) technologies
b) supply chains
A graphic technique for defining the relationship between customer desires and product (or service) is: a) the moment of truth b) the house of quality c) modular design d) the assembly drawing e) product lifecycle management
b) the house of quality
A document for production that gives the instruction to make a given quantity of a particular item, usually to a given schedule is a: a) bill of information b) work order c) route sheet d) value analysis e) assembly chart
b) work order
Defining a product means a) to identify components by a coding scheme that specifies size, shape, and the type of processing. b) to decide to produce a component or service or purchase from an outside source. c) to define the new good's or service's function. d) to list the hiearchy of components, their description, and the quantity of each required to make one unit of a product
c
Which of the following typically shows the hierarchy of components, their description, and the quantity of each required to make one unit of a product? a) an assembly chart b) an assembly drawing c) a bill of material d) an engineering drawing e) a route sheet
c) a bill of material
A forecast that projects a company's sales is a) an environmental forecast b) an economic forecast c) a demand forecast d) a technological forecast
c) a demand forecast
Which of the following is an example of an external product development strategy? a) enhancements to existing products b) new internally developed products c) alliances d) migrations of existing products e) All of the above are examples of internal product development strategy.
c) alliances
A restaurant kitchen contains a wall poster that shows, for each sandwich on the menu, a sketch of the ingredients and how they are arranged to make the sandwich. This is an example of a(n): a) bill of material b) assembly chart c) assembly drawing d) route sheet e) work order
c) assembly drawing
Competing on differentiation is a) concerned with reliability of scheduling b) based upon low cost leadership c) concerned with uniqueness d) based upon flexibility
c) concerned with uniquness
As compared to long-range forecasts, short-range forecasts: a) are less accurate b) employ similar methodologies c) deal with less comprehensive issues supporting management decisions d) all of the above d) none of the above
c) deal with less comprehensive issues supporting mgt decisions
A product's life cycle is divided into four stages, which are: a) introduction, growth, saturation, and maturity b) introduction, maturity, saturation and decline c) introduction, growth, maturity and decline d) incubation, growth, maturity and decline e) introduction, growth, stability, and decline
c) introduction, growth, maturity, and decline
Standardization is an appropriate strategy in which stage of the product life cycle? a) introduction b) retirement c) maturity d) growth e) decline
c) maturity
What is the practice of transferring a firm's activities that have traditionally been internal to external suppliers? a) nearshoring b) backsourcing c) outsourcing d) farshoring e) offshoring
c) outsourcing
Which of these is NOT an advantage of outsourcing? a) cost savings b) gaining outside expertise c) potential creation of future competition d) accessing outside technology
c) potential creation of future competition
Which of following is NOT considered to be one of the three primary functions that all organizations perform? a) production/operations b) marketing c) research and development d) finance/accounting
c) research and development
The three major element of the product decision are: a) strategy, tactics, and operations b) cost, differentiation and speed of response c) selection, definition and design d) legislative, judicial, and executive e) goods, services, and hybrids
c) selection, definition, and decision
A route sheet provides a: a) set of detailed instructions about how to perform a task b) exploded view of the product c) sequence of operations necessary to produce the component d) instruction to make a given quantity of a particular item e) schematic showing how the product is assembled
c) sequence of operations necessary to produce the component
Forecasts are usually classified by time horizon into which three categories? a) strategic, tactical, and operational b) finance/accounting, marketing, and operations c) short-range, medium-range, and long range d) departmental, organizational, and industrial e) exponential smoothing, regression and time series
c) short range, medium range, and long range
The person who introduced standardized, interchangeable part was: a) Frederick W. Taylor b) Henry Ford c) W. Edwards Deming d) Eli Whitney
d) Eli Whitney
The production process at Hard Rock Cafe does NOT include which of the following activities? a) receiving b) placing raw materials in cold storage c) cooking d) advertising
d) advertising
Which of the following shows in schematic form how a product is assembled? a) an assembly routing b) a process sheet c) an engineering drawing d) an assembly chart e) a route sheet
d) an assembly chart
Which of the following activities at a commercial bank is NOT an operations activity? a) security b) maintenance c) check clearing d) auditing
d) auditing
The service sector constitutes what percentage of employment in the US? a) between 50 & 60% b) 70 & 80% c) 60 & 70% d) 80 & 90%
d) between 80% & 90%
The creation of a unique advantage over competitors is referred as: a) response b) differentiation c) experience differentiation d) competitive advantage
d) competitive advantage
Cost minimization is an appropriate strategy in which stage of the product life cycle? a) growth b) adolescence c) introduction d) decline e) retirement
d) decline
Most manufacturing items and their components are defined by: a) group technology b) the make or buy decision c) a BOM d) an engineering drawing
d) engineering drawing
How does management describe the "strategy" of Hard Rock Cafe? a) low-cost strategy b) speedy-service strategy c) high-quality strategy d) experience strategy
d) experience strategy
Which of the following is a quantitative forecasting method? a) market survey b) sales force composite c) jury of executive opinion d) exponential smoothing
d) exponential smoothing
Which of the following is NOT one of the 10 strategic OM decisions listed in the text? a) layout b) location c) quality d) finance/accounting
d) finance/accounting
What is the first step to build a house of quality? a) identify how the good/service will satisfy customer wants b) relate customer wants to product hows c) determine the desirable technical attributes d) identify customer wants
d) identify customer wants
Porter's Five Forces Model is used to evaluate competition based on which 5 aspects? a) cost, legal regulations, advertising effectiveness, potential entrants, and immediate rivals b) research and development, cost, legal regulations, suppliers, customers c) potential entrants, customers, suppliers, legal regulations, and cost d) immediate rivals, potential entrants, customers, suppliers, and substitute products e) immediate rivals, potential entrants, cost, substitute products, and legal regulations
d) immediate rivals, potential entrants, customers, suppliers and substitute products
Which of the following is NOT one of thee strategic approaches to competitive advantage? a) response b) differentiation c) cost leadership d) innovation
d) innovation
Which of the following is an external product development strategy? a) enhancements to existing products b) new internally developed products c) migrations of existing products d) joint ventures
d) joint ventures
Which of the following product development strategies has the highest product development risk? a) joint ventures b) alliances c) acquiring the developer d) new internally developed products e) purchasing technology
d) new internally developed products
_____ is used to rank a company's products to determine which products represent the best use of the firm's resources, or perhaps, to determine which products are to be eliminated a) value analysis b) value engineering c) product cost justification d) product by value analysis e) financial analysis
d) product by value analysis
The creation of goods and services is referred to as: a) transformation b) formation c) design d) production
d) production
The two general approaches to forecasting are: a) historical and associative b) judgmental and associative c) judgmental and qualitative d) qualitative and quantitative e) mathematical and statistical
d) qualitative and quantitative
A process sheet is a type of: a) assembly chart b) work order c) assembly drawing d) route sheet e) bill of material
d) route sheet
Which of the following activities at an airline is NOT an operations activity? a) crew scheduling b) catering c) flying d) sales
d) sales
The economic activities that typically produce an intangible product are referred to as a) phantoms b) goods c) products d) services
d) services
Which of the following is NOT one of the four reasons that we study OM? a) it is such a costly part of an organization b) we want to know how goods and services are produced c) it is one of the three major functions of any organization d) we want to understand what marketing managers do
d) we want to understand what marketing managers do
Which of the following statements best characterizes delivery reliability? a) a company the delivers more frequently than its competitors b) a company that has a computerized delivery scheduling system c) a company that always delivers on the same day of the week d) a company that delivers faster than its competitors e) a company that always delivers at the promised time
e) a company that always delivers at the promised time
Operations managers must be able to anticipate changes in which of the following? a) product volume b) product mix c) the products themselves d) product opportunities e) all of the above
e) all of the above
Quality function deployment (QFD): a) is used to determine where to deploy quality efforts b) translates customer desires into the target design c) determines what will satisfy the customers d) is used early in the design process e) all of the above
e) all of the above
Which of the following represents a reason for globalizing operations? a) to attract and retain global talent b) to improve the supply chain c) to improve operations d) to expand a product's life cycle e) all of the above
e) all of the above
An engineering drawing shows the: a) cost, materials, tolerances, and leadminus−time for a component. b) cost, dimensions, and machining operations for a component. c) materials, finishes, machining operations, and dimensions of a component. d) dimensions, tolerances, cost, and sales or use volume of a component. e) dimensions, tolerances, materials, and finishes of a component.
e) dimensions, tolerances, materials, and finishes of a component
Which of the following activities takes place most immediately once the mission has been developed? a) Operational tactics are developed b) the ten OM decision areas are prioritized c) the functional areas develop their functional area strategies d) the firm develops alternative or back up missions in case the original mission fails e) the functional areas develop their supporting missions
e) functional areas develop their supporting missions
In the maturity stage of the product life cycle, operations managers will be particularly concerned with adding capacity or enhancing existing capacity to accommodate the increase in product demand true or false
false
A product will always be in the same stage of its product life cycle regardless of the country a) true b) false
false q
Which of the international operations strategies involves low cost reductions and low local responsiveness? a) multidomestic b) international strategy c) transnational d) worldwide e) global
international
Quality function deployment refers to both 1) determining what will satisfy the customer and 2) translating those customer desires into a target design true or false
true
Rapidly developing products and moving them to the market is part of time-based competition true or false
true
Robust designs ensures that small variations in production or assembly do not adversely affect the product true or false
true
The theory of comparative advantage implies that you should allow another firm to perform work activities for your company if that company can do it more productively that you can a) true b) false
true
