BCOR 360 final exam
Which of the following is a primary technology system employed in customer relationship management suites?
Data Capture Data Storage
Which of the following is most important to R&D success?
Deep insight into customers' needs
The output rate of a process during normal conditions is what?
Effective capacity
The eighth waste is:
Excess processing
TAKT time tells us:
How frequently a finished unit need to come off the line to meet our demand
simply expresses forecast error as a percentage from the mean
Mean absolute percentage error
The core benefit of an ERP system is that it:
Offers a single source of truth because it stores all data in one place
offers a price that is 25 percent lower, but lead times are 5X longer.
Overseas supplier
You are working on a _______ when you do any activity designed to produce a unique product, service, or result.
Project
OSCM consists of which two value-added activities?
Project management and process management
What is the supply chain task during the maturity stage of the product?
Provide product access at the lowest possible cost
Potential supplier contributions from ESI include:
Providing feedback on feasibility of materials and processes Suggesting alternatives Improve cost Improve lead time *All of the above
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 . . .
Putting up stage gates
The 5S process helps support:
Standard work A multi-functional workforce Minimized set-ups Continuous improvement *All of the above
The tool that monitors processes and keeps them production high-quality products is?
Statistical process control
The customer rules focuses on the idea that
Stay up to date with the customer's changing tastes and demand patterns
Which of the following are parts of the classifications of processes?
Strategic Processes Operational Processes Enabler Processes
here your 3PL partner develops solutions to make your business better—you need more than just an enduring relationship. You need trust. You also need to share resources like engineering talent—and maybe even capital to finance an innovation project. Further, you need to share results—good or bad. Your goal: Become partners in profit. For example, Fed-Ex and Cardinal Health worked together to establish 40 North American medical and surgical distribution facilities; redesign recall management, implement direct-to-patient services, and kit regulated items.3 The result: More efficient, higher-quality service to customers.
Strategic collaboration
To make CPFR successful, companies should engage in which of the following collaborative activities?
Strategy & planning Demand & supply management Execution Analysis *All of the above
According to Strategy &'s findings, companies' innovation strategies fall under which of the following?
Technology driver Need seeker Market reader *All of the above
In process mapping, each symbol denotes the following:
That something has changed
You simply order exactly what you need for each period. LFL means you will order more frequently, but you won't have any inventory left at the end of each period. Remaining inventory is called remnants. You minimize, but increase ordering costs
The Lot for Lot (LFL) rule
Which of the following accurately describes the bullwhip effect?
The bullwhip effect argues that variations in demand magnify as they move upstream toward suppliers.
The standard deviation of demand during lead time takes both demand and lead time variability into account.
True
The work breakdown structure shows all of the major tasks you need to accomplish and how they relate to each other.
True
To calculate results you multiply the score for each criterion by the associated weight and add up the results.
True
To find the relative grid position of existing markets, you can place a grid over an ordinary map.
True
Approximately what percent of new consumer products launched each year fail?
95%
What are the two types of touch points?
Acquisition; Utilization
The Toyota Production System was a copy of an older version of another Japanese car manufacturer production system.
False
The aggregate planning contains critical information to guide lower-level scheduling and is the starting point of business planning.
False
The center-of-gravity model assigns proportionately less weight to bigger sources of supply.
False
The equation for "Net Requirements" is as follows Net Requirements = Gross Requirements + Scheduled Receipts - Available Inventory
False
The great thing about removing one constraint from the system is that the system no longer has resources limiting the capacity of the system.
False
The industrial revolution marked the beginning of good operations management practice.
False
The master production scheduling is updated every semester.
False
The optimal order quantity occurs when your ordering costs are twice the size of your inventory carrying costs.
False
The period order quantity (POQ) lot-sizing rule implies that you order the same amount of inventory every time you place an order.
False
The work breakdown structure tool forces you and your project team to view the "big picture" of the project.
False
There is a standard amount of inventory turns that is considered good, regardless of industry.
False
To really execute a customer satisfaction strategy, you need to find out how customers both perceive and measure your firm's performance.
False
To select an appropriate lot-sizing rule you should compare the annual carrying costs associated with each lot-sizing rule you are considering.
False
Total Cost of Ownership is a concept relevant for accounting and economics, but it is NOT an important consideration for global network design decision-making.
False
Toyota's lean production system has documented that there is a single best or perfect way to make things.
False
Tracking your days of inventory supply can help you align production to market demand. However, it provides no insight to help you manage risk.
False
Value stream mapping is a very formal process that requires a great deal of training.
False
When it comes to data capture, bricks-and-mortar stores like Walmart have a distinct advantage over their online rivals.
False
When setting weights, your total should be 100.
False
You overhear your colleagues in the production area say that, for next month, they need to produce 1,000 products of model A in the color red and 500 in the color blue, and 500 products model B in the color red and another 500 in the color green. Therefore, we can conclude that they are talking about the aggregate planning for next month.
False
Using a breakbulk facility usually reduces shipping time versus LTL direct to customer.
True
Warehousing allows for economies of scale in production
True
You measure the capacity of your production process based on the process bottleneck.
True
You need to evaluate services quality a little differently than you evaluate product quality.
True
Which of the following does the MPS tell you?
When to produce more of an end item
When considering outsourcing, you should evaluate which of the following factors?
Whether the item is strategically important to you How good you are at making the item versus how good suppliers are at making it The total cost of ownership of the item compared to the cost to make the item internally *All of the above
Your company decides to locate an R&D center in Campo Grande, Brazil; a Design Center in Cupertino, California; and an assembly plant in Xi'an, Shaanxi. This is a(n) _________ decision.
configuration
Seven rights of logistics
getting the right product to the right customer at the right time in the right condition in the right quantity at the right place for the right cost.
approaches rely on experts' opinions. When domain knowledge is critical and pertinent data is scarce
qualitative forecasts
Which of the Process Improvement Trio should be employed first?
Lean Six sigma Theory of Constraints *All of the above, you should employ them all at the same time
systems first emerged in the 1960s and evolved gradually as computing power increased. Early adoptions were slow. Most companies lacked the information integrity and operating discipline needed to really take advantage of _______ software
MRP
What is the difference between design capacity and effective capacity?
Maximum output rate that a process can achieve under ideal conditions vs. output rate of a process during normal conditions
is similar to the MSE, but instead of squaring the differences between the actual values and the forecasted values, you take the absolute values these differences
Mean absolute error
A measure of forecast error. Specifically, the average of all of the squared errors
Mean squared error (MSE)
The standard measure for ship capacity, referring to a container that measure 20 feet in length
twenty equivalent units
A warehouse management system:
Handles all of your day-to-day transactions Is connected with your ERP system
Multi-criteria analysis is an appropriate tool, because the network design process considers only quantitative decision factors.
False
Outsourcing just means that you are buying something instead of making it.
False
Productivity growth, by definition, is good.
False
Which of the following shows how many units of inventory can be used to fulfill a new customer order?
"Available to promise"
Finding cost savings and locating close to customers are necessary and sufficient considerations to build a winning network.
False
Once an order has been authorized and resources committed to it, a _______________ becomes a _______________.
"Planned Order Release"; "Scheduled Receipt"
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)
$118,873.46
Which of the following might be expected to be an "A" item SKU at a university?
$30,000 vehicle
There will generally be few ___ items and many ___ items.
'A', 'C'
Supplier segmentation using the strategic sourcing matrix occurs during which step of the strategic sourcing process?
*Analyze Plan Source Reconcile and pay Procure
If "Gross Requirements" for an item in Week 1 are 800 units, "Scheduled Receipts" are 400 units, "On-hand Inventory" is 600 units, what will the "Planned Order Receipt" row show?
0
For seasonal products and services, the best option to align supply and demand is to build inventory.
False
You are a manager at Asda. You have been given the demand data for the past 10 weeks for swim rings for children. You decide to run three different types of forecasting methods on the data to see which gives you best forecast. What would your 3 period moving average forecast be for week 22?
1284
Given the following forecast and demand information, what is the MAD?
15.05
Which of the following z-scores will you use to be able to meet demand from inventory 99% of the time?
2.33
A well-designed scorecard should consist of about ______________ distinctive measures.
20-25
Henry Ford invented the assembly line
False
If there are 70 units of an item in inventory, the forecast for the current period is for 30 units, and there are 20 customer orders, what is your "Projected On-hand Inventory" at the end of the period?
40
If demand is normally distributed with mean demand = 12 units/day, your average lead time is 3 days, and your standard deviation of demand during lead time is 7.6, what is your reorder point? Assume your desired CSL is 90%.
46
If D = 30 units/week, K = $120/order, and H = $1.5/unit/year, the EOQ will be approximately equal to (assume 52 weeks)
500
If the "Customer Orders" row shows 35, 22, and 12 in weeks 2, 3, and 4 respectively, and if the "MPS" row shows 120, 0, 0 for the same weeks, what will the "Available to Promise" row for week 2 show?
51
How much you spend on R&D determines success.
False
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?
8,091
Leverage purchases:
A buyer's dream Your best opportunity to really save money
The 5S process is:
A continuous improvement approach for getting organized and staying organized
A poka-yoke is:
A visual cue to avoid error A system that helps you identify specific improvement opportunities Mistake proofing *All of the above
If a breakbulk strategy makes sense, you need to identify the right location to place the breakbulk facility to maximize total costs.
False
What does the term "Kaizen" mean?
A short, focused, continuous improvement project that takes place on the production line.
A free trade zone warehouse is:
A type of value-added warehousing service Allows companies to store imported goods so you don't have to pay customs/duties until they are removed from the DC Allows you to avoid duties altogether for goods you import and re-export *All of the above
Which of the following companies made the advertising tagline, "Everyday low price," famous?
A&P
Which of the following statements about 'A', 'B', and 'C' items is correct?
A' items are generally ordered in small quantities.
Which of the following are NOT part of the Process-Improvement Trio?
ABC Classification
Which of the following best describes ABC analysis?
ABC analysis helps you tailor ordering practices based on relative item values.
Which of the following is not one of the steps in the DMAIC quality methodology?
Act
Which of the following is not a process in the SCOR model/methodology?
Activate
When using a Gantt Chart, you list ________ on the vertical axis and ________ on the horizontal axis.
Activities & Dates
Which of the following is a type of team you are likely to encounter in today's supply chain decision-making environment?
Advisory Councils Commodity Team Customer Relationship Management Team Problem-solving Team Supplier Development Team
Which of the following has a planning horizon within 6-18 months?
Aggregate Planning
The most polluting mode of transportation is:
Air
If the annual cost of goods sold goes down by 10%, to maintain the same inventory turnover ratio, the average value of inventory will need to increase by 10%.
False
Critical items (on the strategic sourcing matrix) are:
Also called strategic items
If you deliver to promise, exceed industry standards, and meet customers' a priori expectations, you will definitely impress the customer and entice repeat purchase.
False
"a single database surrounded by application programs that take data from the database and either conduct analysis or collect additional data for the firm." Simply put, an ERP system is your company's central nervous system
An ERP system
Value stream mapping should include:
An accurate depiction of a process Quality performance statistics Total time in process The amount of time that value is added *All of the above
Business forecasting is the process of using _____________, _____________, ____________, and experience to make predictions and respond to various business needs.
Analytics, data, insights
Which of the following is not a step in the strategic sourcing process?
Analyze *Plan Source Reconcile and pay Procure
During which step of the strategic sourcing process would you identify potential suppliers?
Analyze Plan *Source Reconcile and pay Procure
Which of the following is Step 1 of the three-step proven path to employing the Process Improvement Trio?
Apply The theory of constraints to identify where you will get the biggest bang for your buck
Bottleneck buys:
Are difficult to manage because there are few options
In its relationship with Gordon Foods, Bob Evans did which of the following?
Consolidated to a single source Gave the drivers access to the restaurants at night for delivery when no one else was there.
Which of the following hobbies illustrates a transformation process?
Art Cooking Do-it-yourself projects
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?
Assembly line Production control Logistics Purchasing Finance *None of the above
What is the main purpose of business case analysis, the second phase of new product development?
Assess product's market potential
Which of the following initiatives represents a true customer-success strategy?
At the customer, for the customer Six sigma at the customer
According to the EOQ model, what happens when your order quantity increases?
Average cycle inventory increases
In Shortest Processing Time, you process the order with the earliest due date.
False
According to Bruce Henderson, the lifecycle of a successful product goes as follows:
Begin as a question mark, grow into a star, mature into a cash cow, and decline into a dog
During which step of the strategic sourcing process do you actual purchase items you have contracted for?
Bid/ Negotiate and contract Plan Source Reconcile and pay *Procure None of the above
What tools are beginning to give decision makers key insight into why customers behave the way they do?
Big data and virtual reality
Which of the following is the "recipe" in an MRP system?
Bill of Materials
Which of the following are ways to manage the fact that services are perishable—i.e., they cannot be inventoried?
Build capacity for peak demand and live with excess capacity during off-peak demand Build capacity for average demand and be willing to lose sales when demand is higher Try to influence consumer behavior to match demand to supply—e.g., discounts for non-peak times.
Which of the following is NOT part of the Gantt Chart process?
Build your work breakdown structure. List all of the activities for a work package. Display activities in a bar chart format. Create an activity schedule. *None of the above, they are all part of the Gantt Chart process.
In a highly coordinated network, the production activities are loosely linked.
False
What is the maximum output your process can consistently produce over a period of time under normal operating conditions.
Capacity
A control chart that measures attributes measures what?
Characteristic that has a discrete value and can be counted
In the __________ strategy, you can manipulate _________ to match supply and demand.
Chase; workforce size
Which of the following are steps in ABC classification?
Classify companies by sales Modify classifications based on strategic issues
_______________ processes influence how you deal with information; ________________ processes influence how you react to experiences.
Cognitive; Affective
In the DBR scheduling approach, the "drum" refers to the process of synchronizing the schedule of all other resources.
False
What are some of the biggest challenges to effective order management?
Complexity Ownership Uncertainty
At what level does the target costing process take place?
Component level
Multi-criteria analysis is a tool that helps you compare "distinctly different" options.
Comprehensiveness
Which of the following is a definition of Quality?
Conformance to specifications Whether or not a product or service lives up to customer expectations
In the Internet age, delivery has been called the most vital factor to long-term competitive success.
False
In the process capability ratio, six sigma captures almost 88% of the process variability.
False
What type of 3PL relationships are win-win, driven by scale, and characterized by joint planning and value-added services?
Cooperative
When you need an ongoing relationship that improves value-added capabilities, both you and your 3PL partners need to change your timeframe. The stability of a long-term relationship is necessary for 3PLs to invest in building the skills you need. Besides, as you become more reliant on 3PLs, you want them to go the extra mile for you when something unexpected happens—or when something goes wrong!
Cooperative
Locating operations in global regions with lower cost factors is always beneficial for a company, because lower factors automatically produce benefits for the company.
False
MRP was a hit from the beginning. Companies quickly and successfully adopted MRP systems.
False
Which of the following would NOT be a relevant cost when calculating the net present value?
Cost to buy your designers new CAD (computer-aided design) workstations
Receive incoming products and unload and reload on to a waiting trailer, mixed with other products, for shipment. This is practiced by Walmart, Costco, and others in getting the right size loads and mix of products to their stores.
Cross-dock
Innovation is a ______________ ________________, involving all of the functions of your company.
Cross-functional capability
are sometimes referred to as the "import connection. is responsible for knowing all of the relevant rules and regulations from the point of origin through to the destination.know the right people at the right government agencies to help avoid or resolve shipping problems.
Custom brokers
Which of the following are the two characteristics that distinguish service operations?
Customer Contact Tangibility
The lack of total costing negatively influences investments needed to improve service levels, _______________, and lifetime stream of profits.
Customer Satisfaction
Which of the following customer-service strategies focuses on meeting industry standards in key operational areas like product quality, productivity, product availability, on-time delivery, and service reliability?
Customer Service Strategy
Technology is providing new insight into customer behavior. _________ has become one of today's hot new tools.
Customer profiling
Which of the following primary technology systems is needed to make sense of data by making hidden relationships visible?
Data display
What is the key to making the right trade-offs you will encounter in creating new products?
Deep customer insight
Which of the following is NOT a phase of the new product development process?
Defining
Monitoring, controlling, and communicating progress of activities is part of which phase of project management?
Delivery
The Maximum output rate that a process can achieve under ideal conditions is what?
Design Capacity
Consistent repeat business is a clear and unambiguous signal that a customer is loyal.
False
Combine inventory from multiple locations to mix and match to fulfill customer orders. Thus, they are often called "mixing facilities
Distribution center
charges a higher price, but offers short, consistent delivery lead times.
Domestic supplier
In process mapping, the following denotes arrival into the process.
Double arrow
Which of the following is an approach companies use to establish a well-reasoned fixed order quantity (FOQ)?
Economic Order Quantity Quantity Discount Machine Capacity
Which of the following is not a key benefit of a measurement strategy that is based on the use of balanced scorecards?
Drives a fundamental focus on financial performance
Lean and quality go hand-in-hand. What does this mean?
Eliminating waste requires that you improve quality Quality is needed for lean to work properly, and lean process quickly reveal any quality problems
Focusing on the 3M fish story, which of the following are benefits of empowerment?
Empowerment is an essential element of the learning organization. Empowerment can lead to innovation and better new products.
enable you to get every decision maker across your organization on the same page—using the same data to make decisions.
Enterprise Resource Planning (ERP)
Which of the following are examples of observational approaches to find out what customers want in a product?
Ethnography Shadowing
Which step in the process asks you to fill in your comparison matrix?
Evaluate options
Which of the following lean logistics practices has Coca-Cola implemented?
Expanded capacity of delivery trucks Cross docking Increased inventory capacity without adding floor space *All of the above
Empowerment gives employees autonomy over and responsibility for decision-making related to every aspect of the value-creation process.
False
Multi-criteria analysis is a very effective tool, because it eliminates all subjectivity.
False
Empowerment programs/strategies are best suited for companies in high-tech, high-fashion, or other fast-past, so-called glamor industries.
False
the supplier owns the product—and the shipping responsibility—until the product arrives at your dock.
FOB destination
you take ownership at the supplier's dock. That means you arrange and pay for shipping.
FOB origin
The work breakdown structure will help you conduct ________ discussions and stay focused on getting the project done.
Fact-based
Everyone engages in, and ultimately thrives, in an empowerment culture.
False
Losing sight of a work package can result in which of the following?
Failure
A Gantt Chart is a line chart that shows schedule information.
False
A good definition of lean is eliminating waste.
False
A value stream map should be created before the Kaizen event begins.
False
According to Scott Adams, creator of the Dilbert comic strip, "Employees are our most valuable asset" is the great management truth.
False
Aggressive benchmarking will enable you to become the best-in-class company on the practice/process you are benchmarking.
False
Although service industries account for about 80% of jobs in the U.S. economy, they only represent about 40% of the U.S. GDP.
False
An ERP system is a set of distributed databases surrounded by application programs that take data from the database and either conduct analysis or collect additional data for the firm.
False
As a rule of thumb, a Cpk of less than 1.5 indicates that your process can meet your desired quality levels.
False
Asset-based 3PLs are brokers or intermediaries who utilize the assets of others to provide services
False
Backordering is a good option to match supply and demand because it has no trade-offs.
False
______ measures the ability to fulfil an order from inventory.
Fill rate
The Ishikawa cause-and-effect diagram is also known as the
Fishbone diagram
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?
Fixed costs Variable cost Price
What type of costs might still remain after you outsource an item?
Fixed overhead costs
Traditional market research engages customers to find out what they are thinking. Which of the following is an example of classic market research?
Focus groups
Having good data is critical to building accurate forecasts. But, data availability isn't sufficient. You need to choose the right _______________ to make the most of your data.
Forecasting technique
Total costing is hard because relevant costs can arise in _________________ or at other ________________.
Functions; Times
visually depicts scheduling data. Making product flow and work station status visible helps you optimize and communicate the production plan.
Gantt Chart
According to the BCG matrix, to be successful, a company should have a portfolio of products with different ____________and different ______________.
Growth rates; market shares
Which of the following is used to compute "Projected On-hand Inventory"?
Higher of "Forecast" or "Customer Orders"
Which of the following characterizes a goal-setting culture?
Innovation and change happen without coercion. Passion emerges and people achieve higher levels of personal growth
The core questions to be addressed as part of a Kaizen event are:
How can the process be improved? How will changes we make affect elated processes?
Which of the following is not a fundamental question you should ask as you design your company's balanced scorecard?
How can we maximize share price?
Which of the following do you need to know to compute an item's "Gross Requirements"?
MPS quantities for all of the parent items
Which of the following are discussed during the S&OP supply review meeting?
How to prevent stockouts Manufacturing capacity Supply chain inventory Logistics/DC capacity *All of the above
What are the four steps most companies use in the risk management process?
Identification, assessment, prioritization, mitigation
By investing in prevention and appraisal costs, your real goas is what?
Identify and eliminate the causes of problems before they occur
Which of the following are among the five steps of the lean journey?
Identify customer value, Map the value stream, Flow the processes
Which of the following is NOT a step in the target-costing process?
Identify product characteristics Set target sales price Calculate target cost Perform cost breakdown Engage in target costing process *None of the above; that is, they are all steps in the target-costing process
Bottlenecks can usually be easily spotted. They are always busy, with no idle time. Work typically piles up in front of them. Subsequent activates are usually waiting on output from the bottleneck. This describes which of the five focusing steps of Theory of Constraints?
Identity
Which of the following helps you improve inventory performance?
Improving forecasting accuracy
are shorthand for international commercial terms. Incoterms define obligations, costs, and risks in the delivery of goods from the seller to the buyer. Due to the greater complexity in international shipping
Incoterms
By changing the manufacturing environment it is possible to achieve higher levels of performance across all value dimensions. Which of the following is a critical aspect of improving the environment?
Increase process visibility Better share information Build a flexible workforce
Besides cost, which of the following are challenges that have hindered the performance of MRP systems?
Information accuracy and integrity Operating discipline
Which of the following is one of the four core behaviors of good project management?
Initiating Planning Delivery Closure All of the above
Too often, companies sacrifice __________ measurement on the altar of __________ measurement.
Insightful; Easy
When measuring forecast error, which forecasting error expresses the forecast error as a percentage from the mean?
MAPE
Which of the following is not a stage in the product life cycle?
Introduction Growth Maturity Decline *None of the above, they are all part of the product life-cycle stages
Which of the following is not a critical design decision?
Inventory Management
as the number of times inventory is sold or used in a time period such as a year
Inventory Turnover Inventory Turnover=Annual Cost of Goods Sold/Average Value of Inventory
Higher-value products tie up more money in inventory. Further, insurance costs go up, more security is needed, and losses are higher if something goes wrong.
Inventory costs
As the value of a product increases, which of the following is also true from a logistics perspective?
Inventory costs will increase
The strategic sourcing matrix:
Is used to segment purchases Is widely used in practice Considers the importance of the category and the complexity of the market to classify purchases *All of the above
The first step in the 5S process is important because
It allows you to understand the resources available for the job It allows you to free up space by eliminating things that are not used on the job
Which of the following is true about breakbulk warehousing?
It entails unloading large shipments and breaking down the contents to go into smaller shipments
What does process mapping do for you?
It helps you to confront the brutal facts It makes the brutal facts visible It helps you hold fact-based conversations It helps you to conduct a blameless autopsy *All of the above
Which of the following is true about the company New Balance?
It implemented lean in conjunction with keeping some manufacturing in the U.S.
The make or buy decision analysis tells us:
It is not that important to the company's success to outsource items that are not strategic to our success Before outsourcing a strategic item, we should seriously consider our own ability to successfully make that item
Most companies track the following
Item Number Item Description Quantity of On-hand Inventory Inventory Already Committed to Orders Scheduled Receipts (ordered or in process but not yet received) Safety Stock Level Lead Time (from supplier or internal production) Batch Size (preferred order quantity) Other Information (e.g., cost, process descriptions, special
Which of the following practices/techniques helps to eliminate poorly designed jobs that alienate workers, reduce productivity, and stifle learning?
Job Enrichment Job Enlargement Employee Involvement
Which one of the following is NOT a process design?
Job Process *Bulk Process Line Process Continuous Process
Every lean journey begins with:
Keeping the customer in mind
When it comes to negotiations, it is important to know that:
Knowledge is power
Physically delivering an item the last bit of distance to a customer's home
Last-mile
consolidate smaller loads from multiple customers to fill a trailer and achieve shipping economies. LTL loads are typically smaller than 15,000 pounds. Shipping LTL usually takes longer and exposes your freight to greater loss or damage.
Less-than-truckload carriers
A purchase where there are a large number of competitive suppliers and you buy a fairly large amount relative to the market would most likely be classified as:
Leverage
Once risks have been identified, you need to determine the ________ and ________ of each.
Likelihood & impact
Because services can't be shipped, you lose decision-making flexibility. ___________________ and _____________________ are everything.
Location & timing
If your product is relatively new and your data is limited, your best option is to...
Look at sales history of a similar product Use qualitative data
Which of the following accurately depict elements of a proactive scanning process?
Look everywhere—both inside and outside the firm. Use a variety of tools—both formal and informal. Synthesize insights by looking for common themes and trends Communicate persuasively by creating a sticky message.
Make sure you have all the required inputs on hand, ready to use, when it's time to make the end product. You could forecast demand for each input. But, you don't need to. You simply need to use what you already know about the end item—i.e., its demand, its bill of materials, and existing inventory levels—to calculate what to order and when to order it. This process of working backward from end-item demand is known as time-phased requirements planning. As you can see, MRP logic really is similar to using a recipe to make a favorite meal.
MRP system's goal
the master production schedule, the bill of materials, and inventory records.
MRP systems rely on three key sources of information
According to the chapter, why is the work breakdown structure so valuable?
Makes projects visible Breaks projects into deliverables
Which of the following are inputs into an MRP system?
Master Production Schedules Inventory Records
Objectives of using a 3PL include which of the following?
Minimize costs Deliver maximum service to customers Reduce the hassle of dealing with repetitive detailed activities *All of the above
The following are basic rules of warehouse layout:
Minimize waste of all types Vary the layout based on the type of warehouse (breakbulk, cross-dock, etc.) Minimize unnecessary movement *All of the above
Take a variety of products from different places, mix them into one shipment and ship them out together. Adding pallets of tissues to the shipment of laundry detergent.
Mix/assort
Which of the following is NOT a value-added process?
New product development Engineering change orders Scheduling production Managing freight shipments All of the above *None of the above, they are all value-added processes
What are the key activities in logistics?
Movement, storage, processing
The challenge as a logistician is to evaluate and meet customer's needs at the lowest cost.
True
The core objective in six sigma is to reduce variation in processes.
True
Which of the following is a "right" in the less formal definition of purchasing?
Obtaining the right material In the right quantity At the right time For delivery to the right place *All of the above
Which of the three processes involves carrying out the visions of the business?
Operational Processes
Which of the following activities play a key, but interconnected role in the value cha
Operations Logistics Marketing Finance Human Resources
_______________ and _______________ are primarily responsible for creating form utility.
Operations & Purchasing
Cycle inventory is most closely associated with which of the following?
Order quantities
When should you use the lot-for-lot (LFL) lot-sizing rule?
Ordering or Set-up costs are low Item value is high
Which of the following is not an objective of proactive scanning?
Paint a picture of the future 20+ years into the future.
Which of the following are potential sources of variation in the Ishikawa cause-and-effect diagram?
People Methods Machines Materials *All of the above
Which of the following tools would you use to identify the most-likely cause of a quality problem?
Pareto chart
Which of the following helps you make priorities visible by showing the frequency at which each cause occurs?
Pareto diagram
the Pareto principle observes that 80 percent of inventory costs are driven by your most important 20 percent of SKUs
Pareto principle aka 80/20 rule
What are the two primary types of scanning?
Passive & Proactive
Which of the following represents the dark side of modern data analytics and the trend toward customer profiling?
Past buying behavior does not always predict future behavior.
By asking "what if" questions when using the multi-criteria tool, you are doing what?
Performing the all-important sensitivity analysis
The slowest transportation mode is
Pipeline
What are the four stems to W. Edward Deming's four-step continuous improvement processes?
Plan, Do, Check, Act
What are the five activities of the SCOR model?
Plan, Source, Make, Deliver, Return
As you look at a supply chain map, you can be confident you are looking at a winning supply chain if it depicts the right ______________ and the right _________________.
Players; Relationships
The lean principle of an organized workplace is directly supported by which of the following?
Poka-yokes Standard work
To achieve quality at the source, you need to focus on which of the following?
Prevention Personal responsibility Standardization *All of the above
The total-cost-of quality framework breaks out quality costs into which four categories
Prevention costs, appraisal costs, Internal failure costs, external failure costs
What does the word dependent in "dependent demand inventory" refer to?
Price Lead Time Order Quantity Customer Demand *None of the Above
Which of the following is not one of the three dimensions recommended to prioritize risks?
Probability Impact
You are managing a _______ when the value-added activities are ongoing and repetitive.
Process
Which of the following is not one of the core value dimensions?
Process Improvement
The popularity of MRP systems has increased as computing power has increased, improving MRP performance.
True
Visibility is a critical aspect in which of the following key logistics activities?
Processing
Uber's initial business model is a good application of lean thinking.
True
Which of the following are intangible benefits of collaborative planning?
Quicker implementation of new ideas More trust
Who should be on the concurrent engineering NPD team?
R&D/engineering Marketing Operations Financial analysts All of the above
Which of the following is the most effective way to reduce your order quantity (Q)?
Reduce the order cost
____________ tells you when to produce more of an input.
Requirements Schedules
How do Gantt Charts help you with your processes?
Requires you to do your homework and learn about the details of your project. Informs you when work falls behind schedule so you can make corrections.
As an example, "People" are what part of the process?
Resources
Third-party logistics providers may help with the following activities:
Transportation planning Electronic Data Interchange Visibility Warehousing *All of the above
Which of the following are NOT among the seven rights of Logistics?
Right transportation mode
A strategic alliance is most likely in which spend category?
Routine Leverage Transactional *Critical It could be any of the above It should be none of the above
Which of the following is used to align plans within your company?
S&OP
Which of the following is an appropriate tool or mechanism for dealing with supply and demand uncertainty?
Safety stock Safety lead time
The target cost is simply the target ___________________ minus the target __________________.
Sales price; profit
Project managers should not prepare for every risk.
True
Purchasing savings can have a huge impact on the firm's profit leverage.
True
Which of the following is one of the fundamental steps in resource orchestration?
Select team members Assign team roles
Why should you care about needing to learn how to effectively manage services?
Services are very different from manufacturing operations. Services productivity growth and innovation are critical to future prosperity.
Which step in the process helps you determine how important each criterion is?
Set weights
When it comes to achieving corporate goals, which of the following is more important than measurement?
Setting the right strategy Hiring the right people Providing the right training All of the above *None of the above
The last mile shipping is:
Shipping directly to the customer's door The fastest growing area in shipping
Quality has more influence on a company than any other value-added dimensions.
True
The balanced scorecard was developed to help companies avoid the counterproductive decisions that emerged from too much emphasis on ______________ and ______________ measures.
Short-term; Financially Oriented
Managers making decisions that help them achieve their short-term functional goals without taking into account other functions is called?
Silo Mentality
Which of the following are reasons that MRP software is so important to the time-phased requirements process?
Some products are too complex to manage manually Many companies produce too many products to manage manually
During which era did outsourcing make purchasing strategic?
Strategic era
The benefits of a cross-functional workforce include which of the following?
Substitution when a worker is out Improved understanding of more processes by the workforce A sense of achievement by the multi-skilled workers A broader knowledge base for participating in Kaizen events *All of the above
Simply applying ERP over existing processes is one of the challenges in implementing an ERP system.
True
Which of the following statements is correct?
TCO includes landed costs You should use landed cost analysis for all purchase decisions
According to the chapter, which of the following is NOT an example of a digital tool companies use to find products customers will buy?
TV advertisements
With respect to control chart logic, processes that are designed to produce to a specific quality number is called?
Target
Supply chain management involves working closely with key suppliers (and customers) to co-create customer value.
True
A forecast error is
The difference between what you predict and what actually happens.
tells you when you need to produce more of the product in order to meet demand.
The master production schedule (MPS)
The fastest transportation modes are also
The most polluting The most expensive
S&OP is used to bring the customer-facing and supply-facing sides of your company together to get everyone to agree to which of the following?
The nature of the business environment A single forecast
means that you produce or order enough to exactly cover a fixed number of periods of demand
The period order quantity (POQ)
are the requirements schedules that tell you when to produce or order each part in a BOM. You also need to know how much to produce or order. This order quantity or lot size decision affects both costs and service.
The primary outputs of an MRP system
What are some of the issues/costs associated with managing NPD in a sequential manner?
The product is thrown back and forth between departments throughout the whole process Costs go up Makes getting the product to market a long process *All of the above
Modal choice affects:
The type of vehicle used to ship your product Meeting customer transport expectations at the lowest cost Transportation service characteristics Costs of the transportation system *All of the above
The assumptions of the EOQ model are not very realistic, but the model is quite robust.
True
The center of gravity model requires that you place locations on a grid coordinate system.
True
The center-of-gravity model requires that you place locations on a grid coordinate system.
True
As transportation speeds up
Transportation cost increases Lost sales will decrease
Which of the following emphasizes throughput accounting metrics?
Throughput, Inventory, Operating Expense
Why do you need to put process mapping into your decision-making toolkit?
To give everyone a better understanding of the process To ask questions To share ideas that help solve problems To get better solution *All of the above
good information systems and disciplined behavior
To maintain accurate inventory data, you need two things:
Which of the following accurately describe a supply chain map?
To read a supply chain map, you start with the focal firm. Suppliers are mapped on the left side of the focal firm. Customers are depicted on the right side of the focal firm. Suppliers and customers are organized in columns called tiers.
What is the end goal for new product development?
To solve customers' problems profitably
Reasons for early supplier involvement is:
To utilize the supplier's innovative ideas Because the most cost and functionality is determined during design.
Which of the following is not one of the characteristics of an indispensable supply chain manager?
Topper
To determine whether to use breakbulk warehousing, you compare
Total cost of direct shipping versus using a breakbulk warehouse Identify the right location to minimize total breakbulk costs
Which of the following companies invented the lean six sigma paradigm shift?
Toyota
An arms-length relationship will get the job done. Because many 3PL providers exist, you can "play the field" to minimize your costs—a key logistics goal. You want to be tough but fair. Remember, they are moving/handling your stuff and dealing with your customers! Besides, you want a reputation for being reasonable partner.
Transactional
If you need help handling occasional shipping to certain areas, what would be a good type of relationship to have with a 3PL?
Transactional
The biggest transportation mode in terms of spending is:
Trucking
offer direct door-to-door service between two locations for a single shipper (i.e., customer). The loads are large enough to consume most of the weight and space capacity of a trailer.
Truckload carriers
A CSL defines your desired probability of being able to meet demand from inventory.
True
A bad scorecard is worse than no scorecard.
True
A successful supply chain leader achieves key goals through the people you work with.
True
ABC classification relies on the Pareto principle. The Pareto principle observes that 80% of your customers drive 20% of the benefits.
True
Aggregate planning helps you align your production capacity to market demand.
True
Almost every decision you make in business is based on a forecast.
True
Amazon's secret to beating Walmart in market share is its superior logistics service.
True
An ERP system is defined as "a single database surrounded by application programs that take data from the database and either conduct analysis or collect additional data for the firm."
True
An open systems view reiterates that companies operate in a dynamic, ever-changing environment, requiring managers to constantly adapt in order to remain competitive.
True
Anyone who has access to the Gantt chart can quickly see how resources are being allocated.
True
As an operations manager, your job is to create customer value.
True
At companies that value proactive scanning, scanning is part of everyone's job.
True
Breakbulk warehouses receive large-volume truckload shipments that are destined for several customers.
True
Effective measurement helps managers make better decisions by helping them understand how processes work.
True
Few companies offer a distinctive enough product to possess pricing power.
True
Focus on the customer underlies the execution of an organization's strategy.
True
Higher coordination of production activities globally can create economies of scale.
True
Honda and Toyota have been mapping processes for 50 years to understand how a process works so that they can fix problems as they arise.
True
Improving service always costs more money
True
In aggregate planning, you need to consider how your strategy will affect other key dimensions of performance, not only costs.
True
Keeping the old systems alive in parallel during the transition to a new ERP system can help mitigate the downsides of unpredictability during implementation.
True
Logistics can be a source of strategic advantage
True
Multi-criteria analysis can be a very effective tool to evaluate potential facility locations.
True
Production control decisions determine the flow of work into and through the production process.
True
Which of the following is not one of the three types of risks you should explore when trying to identify risks?
Unknown-knowns
Once the process has been mapped, what might be part of your analysis?
Use tools like 5S and eight waste to identify improvement opportunities Look for wasted efforts and time
How is the statistical concept of six sigma used?
Uses tools to help you identify which type of variation is present in your processes as well as how to address that variation to improve your process
you attempt to maintain output rates that match what the market demands
chase strategy
Six Sigma is built on which very critical fact?
Variability in a process produces defects, errors, and waste
Statistical process control charts measure what?
Variables Attributes
What does a process capability analysis allow you to do?
Verify that your process is capable of performing at your desired quality level
Which quality guru is responsible for the four step—Plan, Do, Check, Act (PDCA)—cycle that is used by almost every global manufacturer today?
W. Edward Deming
People mold their expectations and behavior to measures; therefore, you need to measure the right things..
What gets measured gets done If you can't measure it, you can't manage it
What three factors determine the market-bearing price?
What the competitors' offering look like, what customers expect, & how distinctive the product is
What does the "MPS" row tell you?
When and how much to produce
According to the chapter, what is the single most important project-management tool?
Work breakdown structure
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."
You don't understand it
As part of supplier integration:
You share information on your plans with the supplier You communicate seamlessly
Under what circumstances would you use process capability analysis?
You want to verify that the process is capable of consistently producing good outputs
Which of the following is a demand-focused option to match supply and demand?
backorders
Which of the following is not a capacity-focused option to match supply and demand?
backorders
is a detailed description of the end item
bill of materials
Unload large shipments and breakdown the contents to go into smaller shipments. Taking a full truckload of laundry detergents and shipping out pallets full of detergent.
breakbulk
The location that minimizes the weighted distance or cost between a facility and the market is the...
center of gravity
high-volume/value items that you buy in complex, risky markets. Suppliers that dominate these markets possess something unique, like technical capabilities or a valued brand name that are hard for rivals to copy
critical (strategic) items
The ______ measures inventory relative to average demand.
days of inventory supply
Factors that tend to reduce the need for inventory include which of the following?
decreasing supply uncertainty
Which of the following is a source of uncertainty in the reorder point model?
demand is seldom constant delivery lead times are not fixed
Which of the following should your inventory strategy accomplish?
enable or support your company's competitive strategy
systems enable you to get every decision maker across your organization on the same page
enterprise resource planning
you will order the same amount every time you place an order
fixed order quantity rule
is the process used to get every member of your value-added team to pull in the same direction—that is, to make decisions using a single shared, agreed upon forecast.
integrated business planning
Most product must be shipped via truck on the front and back ends of the shipment. Combing multiple modes
intermodal transportation
You cannot cost effectively plan future production if you don't know how much inventory you already have. For every SKU you produce—or use in production—you need to maintain accurate, up-to-date information in an inventory status file
inventory records
If the average value of inventory is reduced, which of the following will go up?
inventory turnover
In the process capability ratio, the farther off center the process is operating, the more likely it is to produce unacceptable parts. This adjustment is represented by which symbol?
k
you produce the same output each period.
level strategy
are a buyer's dream
leverage items
Which of the following are general drivers for global operations?
market access resource access
During WWII, ___________ increased the emphasis on purchasing.
materials shortage
is the simplest time-series technique. You simply take the average of several recent periods demand
moving average
increase primarily because you want to protect the product from loss, damage, or pilferage.
packaging cost
The primary outputs of the MRP system are the requirements schedules that tell you when to
produce or order each part in a BOM
In order for a company to win the "first moment of truth" it needs to have the right _______ at the right _______ at the right _______ at the lowest possible _______.
product, place, time, cost
pooling your buy with other companies to leverage spend and minimize risk
purchasing consortium
extra inventory that you hold to help you deal with uncertainty
safety stock
buying each item from the right number of suppliers, generally fewer suppliers
supply-base rationalization
GM's global plants typically operate with certain autonomy from each other, because________.
the operations activities are highly concentrated the operations activities are very dispersed the operations activities are tightly linked together the operations activities are very coordinated *none of the above
the idea that a single constraint limits total system throughput. Your constraint, often called the bottleneck, is the resource with the lowest level of capacity
theory of constraints
Which of the following is a reason to keep inventory?
to help you respond to uncertain demand
Which of the following is NOT a reason to sell abroad?
to safeguard the company's dependence on the domestic economy
increase for many of the same reasons. You may also opt for more expensive modes to get product where it is going faster and free up cash faster.
transportation cost
Members of a product family all use the same set of production resources.
true
Which of the following are reasons to set up global operations?
unique resources closeness to the most important markets new sources of revenue
ABC classification is based on which of the following?
value of item use relative to total value of items used
receives and processes orders, directs putaway as well as order picking and packing, tracks inventory, and talks to all of your other IT systems, including your enterprise resource (ERP) system.
warehouse management system
In Weeks 2, 4, and 6, you have "Gross Requirements" of 100 units. If your "Order Quantity" is 125, your "On-hand Inventory" is 25 units, your lead time is one week, and you have "Scheduled Receipts" of 125 units in Week 1, when will you have "Planned Order Releases"?
weeks 3 and 5
Since we know our forecast is going to be __________, we _______________.
wrong, should frequently update it with the most current information
A control chart that is constructed using a mean is called a/an...
x̄ chart
Once you have calculated the coordinates for a new facility...
you must consider additional factors before making a decision
