BCOR 360 Test 2

What are the classifications of processes? Strategic Processes Operational Processes Enabler Processes All of above

All of above

Historically, businesses arranged activities by different functions, such as: Marketing Logistics Manufacturing Purchasing All of the above

All of the above

What is process? A process is a set of activities. A process helps accomplish specific objectives. A process represents the way the organization executes work. All of the above

All of the above

True or False Empowerment gives employees autonomy over and responsibility for decision-making related to every aspect of the value-creation process.

False

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

False

True or False How much you spend on R&D determines success.

False

True or False Productivity growth is defined as inputs divided by outputs.

False

True or False Productivity growth, by definition, is good.

False

True or False The product adoption life cycle consists of four stages: Innovators, Early Adopters, Late Majority, and laggards.

False

True or False Everyone engages in, and ultimately thrives, in an empowerment culture.

False

What does a successful business do to insure that work is finished as expected?

It defines the workflow of tasks.

Why is the concept of recipe so important?

It defines when and how each step is performed while cooking and also the ingredients.

Which of the following processes has the highest degree of customization? Job Process Batch Process Continuous Process Line Process

Job Process

Automobile production is an example of which process? Job Process Line Process Batch Process Continuous Process

Line Process

Which of the three processes involves carrying out the visions of the business? Enabler Processes Operational Processes Strategic Processes None of the above

Operational Processes

"Structure" refers to ___? Beginning of a story Characters of a story Plot of a story End of a story

Plot of a story

As an example, "People" are what part of the process? Outputs Resources Inputs Flows

Resources

Which of the following is not one of the characteristics of an indispensable supply chain manager? a. Cross functionalist b. Topper c. Choreographer d. Coach e. Catalyst

Topper

True or False A bad scorecard is worse than no scorecard.

True

True or False A successful supply chain leader achieves key goals through the people you work with.

True

True or False Effective measurement helps managers make better decisions by helping them understand how processes work.

True

True or False Empowerment programs/strategies can work in almost any industry, improving worker engagement and learning.

True

True or False Exciting new products often seem to appear out of nowhere--but they don't! New product development is a very detail-oriented process that involves the whole firm.

True

True or False Few companies offer a distinctive enough product to possess pricing power.

True

True or False People mold their expectations and behavior to measures; therefore, you need to measure the right things..

True

Approximately what percent of new consumer products launched each year fail? a. 95% b. 33% c. 64% d. 85%

a. 95%

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

a. Customer Satisfaction

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

a. How can we maximize share price?

A/An __________________ can help evaluate individual concepts and prioritize them within the company's portfolio. a. Stage gate scorecard b. Quality program c. Operating policies procedure d. New product development e. None of the above

a. Stage gate scorecard

Product characteristics define the product; that is, both ____________________ for the customer and _____________________. a. What it should do; how it will do it b. Where it will be; how it will grow c. What is should do; how it will grow d. Where it will be; how it will do it e. What it should do; how much it will earn

a. What it should do; how it will do it

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." a. You don't understand it b. You're only guessing c. You will lose sleep at night d. You are in a world of hurt

a. You don't understand it

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

b. Short-term; Financially Oriented

According to the chapter, which of the following is NOT an example of a digital tool companies use to find products customers will buy? a. Customer profiling b. TV advertisements c. Crowdsourcing d. Social networking e. All of the above

b. TV advertisements

What is the end goal for new product development? a. To invent new products b. To solve customers' problems profitably c. To make money d. Create shareholder profit e. None of the above

b. To solve customers' problems profitably

What is the key to making the right trade-offs you will encounter in creating new products? a. Capacity utilization b. Demand management c. Deep customer insight d. Facility location

c. Deep customer insight

Which of the following is not a key benefit of a measurement strategy that is based on the use of balanced scorecards? a. Communicates top management's vision b. Links behavior to strategy c. Drives a fundamental focus on financial performance d. Promotes future capability development e. Imposes discipline f. None of the above; i.e., they are key benefits

c. Drives a fundamental focus on financial performance

Traditional market research engages customers to find out what they are thinking. Which of the following is an example of classic market research? a. Direct customer observation b. Social networking c. Focus groups d. Shadowing e. All of the above

c. Focus groups

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

c. Functions; Times

What is the supply chain task during the maturity stage of the product? a. Provide delivery terms and acceptance provisions detailing how and when the buyer will accept the products b. Create connectivity to cause businesses to transform themselves c. Provide product access at the lowest possible cost d. Determine the amount of capacity required to produce in the future

c. Provide product access at the lowest possible cost

Which of the following would NOT be a relevant cost when calculating the net present value? a. Cost to promote and sell the product b. Cost to produce and deliver the product c. Cost to develop and launch the product d. Cost to buy your designers new CAD (computer-aided design) workstations e. None of the above, they are all relevant costs

d. Cost to buy your designers new CAD (computer-aided design) workstations

Innovation is a ______________ ________________, involving all of the functions of your company. a. Forecasting method b. Management system c. Joint Venture d. Cross-functional capability e. None of the above

d. Cross-functional capability

Technology is providing new insight into customer behavior. _________ has become one of today's hot new tools. a. Customer scanners b. Handheld scanners c. Customer feedback d. Customer profiling e. None of the above

d. Customer profiling

_____________ poll customers to identify their level of satisfaction/dissatisfaction with existing products and to discover their express and hidden needs and expectations for new products. a. Customer profiling b. Crowdsourcing c. Social network analysis d. Customer surveys e. None of the above

d. Customer surveys

Which of the following is NOT a phase of the new product development process? a. Launch b. Development c. Business case analysis d. Defining e. None of the above

d. Defining

Which of the following is not one of the seven rights of an empowerment culture? a. Communicate the right expectations b. Provide the right training c. Measure the right things d. Demand the right behavior e. Give employees the right opportunity f. None of the above; i.e., they are all elements of an empowerment culture

d. Demand the right behavior

To preserve resources and strengthen your overall development efforts, companies need to identify the weak concepts and remove them from the pipeline. This is called . . . a. Creating a damn b. Providing reverse logistics c. Developing a scheduling sequence d. Putting up stage gates e. None of the above

d. Putting up stage gates

The target cost is simply the target ___________________ minus the target __________________. a. Sales price; actual demand b. Profit; forecast c. Forecast; actual demand d. Sales price; profit e. Profit; sales price

d. Sales price; profit

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

e. None of the above

Which of the following is not a stage in the product life cycle? a. Introduction b. Growth c. Maturity d. Decline e. None of the above, they are all part of the product life-cycle stages

e. None of the above, they are all part of the product life-cycle stages

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 & D only

f. A & D only

According to Robert Kaplan, which of the following are characteristics of correct measurement? a. Accurate b. Relevant c. Timely d. Persistent e. All of the above f. A, B, & C only g. A & B only

f. A, B, & C only

Which of the following is one of the pillars of empowerment at Newmont Gold? a. A coaching leadership style b. Continuous goal setting c. Clear communication of expectations d. Pay for performance e. All of the above f. A, B, and C only

f. A, B, and C only

Break-even analysis is a simple way to evaluate a new product's potential return. Which of the following information do you need to calculate the break-even quantity? a. Fixed costs b. Variable costs c. Interest rate d. Price e. All of the above f. A, B, and D only

f. A, B, and D only

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 g. A, B, D, and E only

f. All of the above

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 d. All of the above e. A & C only f. B & C only

f. B & C only

Which of the following are important sources of ideas for KPIs that you should include as part of your balanced scorecard? a. Environmental Scans b. Industry Standards c. Customer Feedback d. Best-in-class Benchmarks e. All of the above f. B, C, & D only

f. B, C, & D only

Which of the following is NOT a step in the target-costing process? a. Identify product characteristics b. Set target sales price c. Calculate target cost d. Perform cost breakdown e. Engage in target costing process f. None of the above; that is, they are all steps in the target-costing process

f. None of the above; that is, they are all steps in the target-costing process

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? a. Assembly line b. Production control c. Logistics d. Purchasing e. Finance f. None of the above; that is, they should all be included

f. None of the above; that is, they should all be included

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. All of the above f. A, B, & C only g. A & C only

g. A & C only

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. All of the above f. A & D only g. B & C only

g. B & C only

Managing activities by process instead of by function was revolutionary, because ___? .

it changed the focus from results depending on activities to results depending on processes.

The core foundation of supply chain management is___?

managing processes within and across companies.

What tools are beginning to give decision makers key insight into why customers behave the way they do? a. Big data and virtual reality b. Exponential smoothing and forecasting c. EOQ and market analysis d. Operating policies and procedures

. Big data and virtual reality

True or False According to Scott Adams, creator of the Dilbert comic strip, "Employees are our most valuable asset" is the great management truth.

False

True or False Aggressive benchmarking will enable you to become the best-in-class company on the practice/process you are benchmarking.

False

Which one of the following is not a process design? Bulk Process Job Process Continuous Process Line Process

Bulk Process

Which of the following processes has the highest level of volume? Job Process Continuous Process Line Process Batch Process

Continuous Process

A well-designed scorecard should consist of about ______________ distinctive measures. a. 5-10 b. 20-25 c. 50 d. Hundreds

b. 20-25

What is the main purpose of business case analysis, the second phase of new product development? a. Find out who will be purchasing the product b. Assess product's market potential c. Make product prototypes d. Make product tweaks e. All of the above

b. Assess product's market potential

According to Bruce Henderson, the lifecycle of a successful product goes as follows: a. Investment, operation, maintenance, end-of-life b. Begin as a question mark, grow into a star, mature into a cash cow, and decline into a dog c. General concept, system scope & project plan, detailed design & execution, product transfer d. Materials, manufacture, distribution, use

b. Begin as a question mark, grow into a star, mature into a cash cow, and decline into a dog

At what level does the target costing process take place? a. Radial level b. Component level c. Manufacturing level d. Marketing level e. All of the above

b. Component level

High-leverage innovators (think the NPD process) build ________________ teams so that important decisions can be made __________________. a. Leadership; effectively b. Cross-functional; collaboratively c. Self-directed; collaboratively d. Virtual; traditionally e. None of the above

b. Cross-functional; collaboratively

Which of the following is most important to R&D success? a. Size of R&D budget b. Deep insight into customers' needs c. Technology deployed d. Market research intensity e. Quality of engineers

b. Deep insight into customers' needs

Boston Consulting Group (BCG) built the BCG growth-share matrix on the lifecycle concept. The matrix is based on what two concepts? a. Maturity and decline b. Growth rates and market share c. Assets and liabilities d. Product extension and growth e. None of the above

b. Growth rates and market share

According to the BCG matrix, to be successful, a company should have a portfolio of products with different ____________and different ______________. a. Agreements; growth rates b. Growth rates; market shares c. Market shares; costing rates d. Capacity planning; costing rates e. None of the above

b. Growth rates; market shares

Too often, companies sacrifice __________ measurement on the altar of __________ measurement. a. Insightful; Elegant b. Insightful; Easy c. Thoughtful; Esoteric d. Easy; Elegant e. Easy; Insistent

b. Insightful; Easy

Which of the following is true regarding productivity measurement? a. It's easy b. It involves assessing tradeoffs c. Nobody does it any more d. It leads to greater efficiency and more satisfied customers e. It drives ROI up

b. It involves assessing tradeoffs

In _____________, you accompany users to observe how they use a product or service in a real-life, day-to-day setting. a. In-depth interviews b. Shadowing c. Ethnography d. Customer profiling e. Crowdsourcing f. None of the above

b. Shadowing

What are some of the issues/costs associated with managing NPD in a sequential manner? a. The product is thrown back and forth between departments throughout the whole process b. Costs go up c. Makes getting the product to market a long process d. All of the above

d. All of the above

What three factors determine the market-bearing price? a. What customers expect, how distinctive the product is, & which product is going to be a winner b. Which product is going to be a winner, what the competitors' offering look like, & where the product is going to be manufactured c. What the competitors' offering look like, what customers expect, & how distinctive the product is d. Where is the product going to be manufactured, what customers expect, & how distinctive the product is e. None of the above

c. What the competitors' offering look like, what customers expect, & how distinctive the product is

Imagine you want to start up a company to manufacture and sell Wildcat sunglasses. You've done your homework and estimate design and launch costs to be $100,000. You expect to sell 500 pairs in the first year, 2,000 pairs in second year, and 5,000 pairs in the following three years. The sales price will be $99 and each pair will cost $75 to produce and market. If your required return is 20%, what is your NPV? (Round your answer to the nearest cent; e.g., $100,000.01) a. $115,668.45 b. $123,456.78 c. $114,567.33 d. $118,873.46 e. None of the above

d. $118,873.46

Imagine you want to start up a company to manufacture and sell Wildcat sunglasses. You've done your homework and estimate design and launch costs to be $120,000. You expect to sell 500 pairs in the first year, 2,000 pairs in second year, and 5,000 pairs in the following three years. The sales price will be $99 and each pair will cost $75 to produce and market. If your required return is 12%, what is your NPV? (Round your answer to the nearest cent; e.g., $100,000.01) a. $129,543.89 b. $134,567.81 c. $159,564.90 d. $158,746.61 e. None of the above

d. $158,746.61

Imagine you want to start up a company to manufacture and sell Wildcat sunglasses. You've done your homework and estimate the variable costs (including trademark privileges) will be $77 a pair and the fixed costs to be $178,000. If you sell the sunglasses for $99 a pair, how many pairs do you need to sell to break even? a. 1,797 b. 2,312 c. 5,000 d. 8,091 e. None of the above

d. 8,091

According to Strategy&'s findings, companies' innovation strategies fall under which of the following? a. Technology driver b. Need seeker c. Market reader d. All of the above

d. All of the above

Which of the following is a key dimension of the balanced scorecard? a. Customer expectations b. Operational excellence c. Future capability development d. Financial Performance e. All of the above f. A & D only

e. All of the above

Who should be on the concurrent engineering NPD team? a. R&D/engineering b. Marketing c. Operations d. Financial analysts e. All of the above

e. All of the above

Which of the following are examples of observational approaches to find out what customers want in a product? a. Focus Studies b. Ethnography c. Interviews d. Shadowing e. Both B and D

e. Both B and D

__________________ involves running the numbers to evaluate whether a product's expected sales, growth, and profit justify required investments. a. Screening/scoping b. Development c. Test and validate d. Launch e. Business case analysis

e. Business case analysis