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