Supply Chain Midterm
Functional Project
Responsibility for the project lies within one functional area of the firm.
Order the following major concepts that have helped define the OSCM field on a timeline. Use 1 for the earliest concept to be introduced, and 5 for the most recent. -Supply Chain Management -Manufacturing strategy -Business analytics -Total quality management -Electronic Commerce
1) Manufacturing strategy 2)Total quality management 3)Supply Chain Management 4)Electronic Commerce 5)Business analytics
If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure could you use to compute productivity? A) Partial measure B) Multifactor measure C) Total measure
A and B
Which of the following is the most appropriate regarding Inventory turnover? A) Inventory turnover increases as average inventory* decreases, while other things remain the same. B) Inventory turnover is an efficiency measure.* C) Inventory turnover is unaffected by changes in annual sales.
A and B
Matrix Project
A blend of pure and functional project structures
Six Sigma
A business process for improving quality, reducing costs, and increasing customer satisfaction
make to stock
A production environment where the customer is served "on-demand" from finished goods inventory.
Earned Value Management
A technique for measuring project progress in an objective manner Has the ability to combine measurements of scope, schedule, and cost in a project Provides a method for evaluating the relative success of a project at a point in time
Statement of Work
A written description of the objectives to be achieved
A company has recently implemented an automated online billing and payment processing system for orders it ships to customers. As a result, it has reduced the average number of days between billing a customer and receiving payment by 10 days. How will this affect the receivables turnover ratio? A)It will increase* B)It will decrease C)It may increase, decrease, or remain the same D)It will remain the same E)We need further information to answer this question
A) It will increase
A) Product-process matrix B) WorkCentre C) Manufacturing cell D) Assembly line E) Continuous process
A) Product-process matrix
Getting an autograph from a famous person might involve standing in which type of queuing line structure? A) Single channel, single phase B) Single channel, multiphase C) Multichannel, single phase D) Multichannel, multiphase E) None of these
A) Single channel, single phase
A project starts out as which of the following? A. A Statement of Work B. Critical Path Method (CPM) C. A series of milestones D. A Gantt chart E. A latest-start-time estimate
A. A Statement of Work
lean manufacturing
An operation that strives to achieve the highest possible productivity and total quality, cost effectively, by eliminating unnecessary steps in the production process and continually striving for improvement.
Balridge Award
Annual award given by the U.S. government to recognize quality achievements of U.S. companies.
Some of the advantages of a functional project where the project is housed in a functional division include which of the following? A)Needs of the client are secondary B)A team member can work on several projects C)Team pride, motivation, and commitment are high D)The project manager has full authority over the project E)None of these
B)A team member can work on several projects
You have just performed a CPM analysis and have found that more than one path through the project network has zero slack values. What can you conclude? A)The project will not be completed by the desired time B)You have multiple critical paths C)You have incorrectly performed the analysis D)More than one path is optimal E)Only one path is optimal
B)You have multiple critical paths
Which of the following is not a suggestion for managing queues presented in the textbook? A) Train your servers to be friendly B) Segment the customers C) Determine an acceptable waiting time for your customers D) Inform your customers of what to expect E) Encourage customers to come during slack periods
C) Determine an acceptable waiting time for your customers
Which of the following is not a characteristic that distinguishes services from goods? A)Services are heterogeneous B)Services are perishable C)Service jobs are unskilled* D)None of these E)A service is intangible
C) Service jobs are unskilled
A firm fills its customer's orders from finished goods inventory. It is a: A) make to order firm. B) engineer to order firm. C) make to stock firm. D) customer service firm. E) assemble to order firm.
C) make to stock firm.
assemble to order
Combine a number of preassembled modules to meet a customer's specifications
A major competitive dimension that forms a company's strategic operational competitive position in their strategic planning is which of the following? A)Activity-system mapping B)Automation C)Straddling D)Cost or price E)Focus
D) Cost or price
According to Little's Law, which of the following ratios is used to find throughput rate? A) Cycle time/Process time B) Throughput time/Process velocity C) Process velocity/Throughput time D) Inventory /Flow time E) Value added time/Process velocity
D) Inventory /Flow time
When balancing an assembly line, which of the following is not a way to reduce the longest task time below the required workstation cycle time? A) Upgrade the equipment B) Assign a roaming helper to support the line C) Split the task between two workstations D) Speed up the assembly line transfer mechanism E) Use a more skilled worker
D) Speed up the assembly line transfer mechanism
In a Gantt chart the horizontal axis is usually which of the following? A)Milestones B)Cost C)Profit D)Time E)Activities
D)Time
What are the four major categories of projects based on the type of change involved? A)Internal, external, local, and global changes B)Product change, process change, system change, and market adjustment C)Market development, network change, vendor growth, and public financing D)Incremental, moderate, major, and total changes E) Product change, process change, research & development, and alliance and partnership
E) Product change, process change, research & development, and alliance and partnership
engineer to order
Here the firm works with the customer to design the product, which is then made from purchased materials, parts, and components.
Multichannel, single phase
Multiple lines for customers to do the same thing. Ex: Tellers windows in a bank and checkout counters in high-volume department stores
single channel, multiphase
One line for multiple services (Get served for one thing and then head to the next thing) Ex: A car wash is an illustration because a series of services (vacuuming, wetting, washing, rinsing, drying, window cleaning, and parking) is performed in a fairly uniform sequence
Which of the following is a multifactor measure of productivity? Output / (Materials) Output / (Labor + Capital + Energy) Output / All resources used Output / Inputs
Output / (Labor + Capital + Energy)
Which of the following is a total measure of productivity? Output / Materials Output / (Labor + Capital + Energy) Output / Labor Output / Inputs
Output / Inputs
Which of the following is a partial measure of productivity? Output / Materials Output / (Labor + Capital + Energy) Output / All resources used Output / Inputs
Output/Materials
activities
Pieces of work within a project that consume time. The completion of all the activities of a project marks the end of the project.
5 OSCM Processes
Planning, Sourcing, Delivering, Making, Returning
Project Management
Planning, directing, and controlling resources (people, equipment, material) to meet the technical, cost, and time constraints of a project.
just-in-time production
Process that redefines and simplifies manufacturing by reducing inventory levels and delivering raw materials just when they are needed on the production line
assembly line
Production method that breaks down a complex job into a series of smaller tasks
Process Selection
Refers to deciding on the way production of goods or services will be organized
Sustainability
The ability to keep in existence or maintain. A sustainable ecosystem is one that can be maintained
multichannel, multiphase
This case is similar to the multichannel single phase except that two or more services are performed in sequence. -Example: The admission of patients in a hospital follows this pattern because a specific sequence of steps is usually followed: initial contact at the admissions desk, filling out forms, making identification tags, obtaining a room assignment, escorting the patient to the room, and so forth.
manufacturing cell
a dedicated area where products that are similar in processing requirements are produced
task
a further subdivision of a project
Work Package
a group of activities combined to be assignable to a single organizational unit
Pure Project
a self-contained team works full time on the project
project
a series of related jobs usually directed toward some major output and requiring a significant period of time to perform
Operations and supply chain __________ leverage(s) the vast amount of data in enterprise resource planning systems to make decisions related to managing resources. a)analytics b)planning c)processes d)informatics e)management
a) analytics
Total Quality Control
aggressively seeks to eliminate causes of production defects
Identify the most appropriate answer regarding Cash conversion cycle. a.)Is also known as cash-to-cash cycle. b.)Cash conversion cycle goes down if payable period goes up. c.)Cash conversion cycle goes up if average inventory goes up.
all are correct
Current issues in OSCM do not include: a)Making senior management aware that OSCM can be a competitive weapon b)Increasing global supply chain employment c)Managing customer touch points d)Coordinating relationships between organizations
b) increasing global supply chain employment
Gant Chart
bar graph showing production managers what projects are being worked on and what stage they are in at any given time
An activity-system map is which of the following? a) A network guide to route airlines b) A listing of activities that make up a project c) A diagram that shows how a company's strategy is delivered to customers d) A facility layout schematic noting what is done where e) A timeline displaying major planned events
c) A diagram that shows how a company's strategy is delivered to customers
Which of the following are not listed in the text as jobs in OSCM? a)Call center manager b)Department store manager c)Data Center manager d)Hospital administrator e)Project manager
c) Data Center manager
Which of the following is not a way that operations and supply processes are categorized? a) Delivering b) Planning c) Selecting d) Making e) Returning
c) selecting
Decisions that relate to the design of the processes and the infrastructure needed to support these processes relate to which OSCM concept? a) Supply chain risk b) Sustainability c) Competitive dimensions of OSCM d) integrating operations and supply chain strategy with a firm's operational capabilities e) Making trade-offs
d) integrating operations and supply chain strategy with a firm's operational capabilities
Work Breakdown Structure
defines the hierarchy of project tasks, subtasks, and work packages
Efficiency
doing something at the lowest possible cost
Effectiveness
doing the right things to create the most value for the customer
Manufacturing Strategy
emphasized how manufacturing executives could use their factories capabilities as strategic competitive weapons
Delivering
logistics processes such as selecting carriers, coordinating the movement of goods and information, and collecting payments from customers
throughput time
long term average rate that items are flowing through the process
making trade-offs
maintaining focus and gaining competitive advantage by carefully choosing what to do and what not to do
Recieveables turnover
number of times receivables are collected on average during the fiscal year
Single channel, single phase
one-person barber shop
Operations effectiveness
performing activities in a manner that best implements strategic priorities at minimum cost
Supply Chain
processes that move information and material to and from the manufacturing and service processes of the firm
value
quality/price
Returning
receiving worn-out, excess, and/or defective products back from customers
Operations
refers to manufacturing and service processes that are used to transform the resources employed by a firm into products desired by customers
Sourcing
selection of suppliers that will deliver the goods and services needed to create the firm's product
Workcenter
similar equipment or functions are grouped together
Operations and Supply Chain Management
the design, operation, and improvement of the systems that create and deliver the firm's primary products and services
Cash Conversion Cycle (CCC)
the length of time funds are tied up in working capital, or the length of time between paying for working capital and collecting cash from the sale of the working capital
supply chain risk
the likelihood of a disruption that would impact the ability of a company to continuously supply products or services
Business Analytics (BA)
the process of analyzing data to evaluate a company's operations
Planning
the process of anticipating future events and determining strategies to achieve organizational objectives in the future
flow time
the time it takes one unit to get through a process
Making
where the major product is produced or the service provided