Chapter 1-4 & 9

What refers to owning or controlling sources of raw materials and components? A. Backward integration B. Horizontal integration C. Encapsulating integration D. Forward integration E. Subsuming integration

A. Backward integration

Typically a manufacturer will have more direct contact with which type of supplier? A. Tier one supplier B. Tier two supplier C. Tier three supplier D. Tier four supplier E. Tier five supplier

A. Tier one supplier

Local wage rates, presence of local unions, and attitudes of local workers would be major factors for location decisions for businesses that ________________________. A. are labor intensive B. have perishable products C. have high transportation costs D. have need for specific raw materials E. provide in-home services

A. are labor intensive

Decisions regarding which of the following are not part of the production process structure? A. management policies B. facilities C. robots D. flow of goods and services through the facility E. flexible manufacturing system (FMS) machines

A. management policies

Evaluating a product idea to determine its likelihood of success is A. product screening B. estimating C. technological forecasting D. product windowing E. product evolution

A. product screening

The classes that you are taking at the university use a ___________ process A. project B. batch C. line D. continuous E. recycle

B. batch

Decisions regarding which of the following are not part of the production process infrastructure? A. organization of workers B. facilities C. worker pay D. quality control measures E. management policies

B. facilities

Which of the following is not true with respect to strategic and tactical decisions? Select one: A. tactical decisions focus on more specific day-to-day decisions B. tactical decisions determine the direction for strategic decisions C. tactical decisions provide feedback to strategic decisions D. tactical decisions are made more frequently and routinely E. tactical decisions must be aligned with strategic decisions

B. tactical decisions determine the direction for strategic decisions

Consider a packaged milk products supply chain. A lumber company provides wood to a paper mill, who supplies cardboard to a container manufacturer, who supplies containers to the milk products manufacturer. The lumber company is: A. a tier one supplier. B. a tier two supplier. C. a tier three supplier. D. a tier four supplier. E. not in the supply chain.

C. a tier three supplier.

Once a business strategy has been developed: A. service prices are established B. competition must be identified C. an operations strategy must be formulated D. contracting with external sources must begin E. insourcing will be conducted

C. an operations strategy must be formulated

When evaluating location alternatives the firm should look at A. only qualitative factors B. only quantitative factors C. both qualitative and quantitative factors D. weighted average values E. decision support models only

C. both qualitative and quantitative factors

The load-distance model frequently utilizes _____________________ distance, which is the shortest distance between two points using only north-south and east-west movements A. curvilinear B. Euclidean C. rectilinear D. direct E. vertical

C. rectilinear

What must companies do in order to be successful in operations management?

Companies must add value and be efficient in order to be successful in operations management. In order to add value, a company will need to have a net increase between the final value of a product and the value of all the inputs. A company is efficient when it is able to perform activities well and at the lowest possible cost

List the primary four competitive priorities

Cost. The way to compete on cost is to offer a product at a low price relative to competitors. Typically, high volume products, often limit product range and offer little customization, may invest in automation to reduce unit costs, can use lower skill labor, probably use product focused layouts, low cost does not mean low quality. Quality. Quality is often subjective, meaning quality is defined differently depending on who is defining it. Two major quality dimensions include: High performance design and product and service consistency. Time. Speed is one of the most important competition priorities to be competitive with time. The first one that can deliver often wins the race. Time-related issues involve: rapid delivery and on-time delivery. Flexibility. Companies must accommodate change by being flexible. Product flexibility: Easily switch production from one item to another. Easily customize product/service to meet specific requirements of a customer. Volume flexibility: Ability to ramp production up and down to match market demands.

Which of the following typically represents the beginning of a supply chain? A. Wholesalers B. Retailers C. Manufacturers D. External suppliers E. Inspectors

D. External suppliers

What term refers to processes or activities that are completed by suppliers? A. Vendorsource B. Insource C. Homesource D. Outsource E. Supplysource

D. Outsource

Studying the practices of companies considered "best in class" and comparing the performance of our company against their performance is A. competition B. copying C. frustration D. benchmarking

D. benchmarking

The steps in the product design process include A. Idea Development, Product Screening, Break-even analysis, Build B. Idea Development, Benchmarking, Preliminary Design, Final Design C. Seek Competitors Design Specs, Product Screening, Manufacture, Sell D. Seek Customer Input, Product Screening, Testing, Final Design E. Idea Development, Product Screening, Preliminary Design & Testing, Final Design

E. Idea Development, Product Screening, Preliminary Design & Testing, Final Design

Which one of these refers to reducing the number of parts and features of the product whenever possible? A. design automation B. design specification C. design reduction D. design standardization E. design simplification

E. design simplification

The first step managers need to take when making facility location decisions is __ A. begin negotiations with governments for several potential locations B. identify specific location possibilities C. gather information on location alternatives D. evaluate specific sites E. identify the location factors that are dominant for the business

E. identify the location factors that are dominant for the business

Consider a pizza parlor. Which of the following would not be a valid productivity measure? A. pizzas produced / number of workers used B. pizzas produced / number of ovens C. pizzas produced / cost of workers and ingredients D. pizzas produced / cost of all inputs used E. labor hours / pizzas produced

E. labor hours / pizzas produced

Suppose that a plant has a daily productivity of 0.85 parts per employee? What can we conclude? A. the plant must be very labor-intensive B. the plant is not earning profits C. the plant must be highly automated D. the plant should lay off workers E. nothing

E. nothing

Location decisions are particularly important because __________________________. A. typically they are made rather frequently B. they entail a high cost, short-term commitment C. there are so many potential locations D. they have a major impact on product design E. they can have a large impact on operating costs and revenues

E. they can have a large impact on operating costs and revenues

List at least four different possible inputs to a transformation process

Human resources, facilities & processes, technologies, and materials are four possible inputs to a transformation process

Describe the three factors critical to the development of a business strategy

Mission: A statement defining what business an organization is in, who its customers are, and how its core beliefs shape its business. Environmental Scanning: Monitoring the external environment for changes and trends to determine business opportunities and threats. Core Competencies: The unique strengths of a business

Describe the differences between strategic and tactical OM decisions?

OM decisions are divided into two different categories: Strategic • Long-term • Encompasses entire organization • Broad in scope • Example: What makes our product unique compared to those in the same market? Tactical • Short-term • Encompasses specific departments and tasks • Narrow in scope • Example: Who is next to work the night shift? Strategic decisions come first and determine the direction for tactical decisions (e.g., What are the unique features of our product that make us competitive?). Tactical decisions are short-term decisions that focus on specific departments and tasks (e.g., Who will work the 2nd shift tomorrow?) These decisions help a company utilize their resources in a more efficient way and allows managers to deter from mistakes that have occurred in the past.

What is the "role" of operations management?

The role of operations management is to transform a company's inputs into the finished goods or services (outputs).

At the GAP, which function plans and coordinates all the resources needed to design, produce, and deliver the merchandise to its various retail locations?

operations management

What is Concurrent engineering

· Also called "2D" design. Concurrent indicates that product design is not a sequential job, but instead it involves all functions in a firm to work together.

Describe the differences between design standardization and design simplification

· Design standardization: the use of common and interchangeable parts (Ex. A chip can be used interchangeably in cell phones & cameras) · Design simplification: reducing the number of parts and features of the product whenever possible.

List the three components of a supply chain

· External suppliers · Internal functions · External distributors

Describe the differences between forward integration and backward integration

· Forward integration: owning or control the channels of distribution · Backward integration: owning or controlling of the source of raw materials and component parts

List steps for making location decisions.

· Identify dominant location factors · Develop location alternatives · Evaluate location alternatives

Describe the differences between insourcing and outsourcing

· Insourcing: processes or activities that are completed in house · Outsourcing: processes or activities that are completed by other supply chain members

Describe the differences between different types of manufacturing processes; give examples for each manufacturing process

· Intermittent Operations: - has great product variety - it's path of products through the facility vary in pattern - factor driving production is customer order - degree of automation is low - throughput time is longer - Examples: Project Process (customer job shop, customer tailoring), bath process (education classes, bakery) · Repetitive Operations: - Has small/standardized product variety - It's path of products through facility is line flow - Factor driving production is forecast of future demands - Degree of automation is high - Throughput time is shorter - Examples: Continuous processes (oil refinery; water treatment plant)

Stages in product life cycle

· Introductory Stage: products and markets are not yet well defined, customers are uncertain about the product · Growth Stage: product takes hold and both the market and product continue to be refined · Maturity Stage: demand levels off, usually no design change · Decline Stage: because of new technology, better product design, or market saturation

Describe the differences between load-distance model and center-of-gravity model

· Load Distance Model: is a mathematical model used to evaluate locations based on proximity factors · Center of Gravity Method: is a technique for locating single facilities that considers existing facilities, the distance between them, and the volumes of goods to be shipped between them.

Describe the relationship between business strategy and operations strategy

· Operation Strategy: a long-range plan for the operations function that specifies the design and use of resources to support the business strategy. · Business Strategy: the long-range plan of a business, design to provide and sustain shareholder value.

Describe the difference between order winners and order qualifiers

· Order Qualifiers are competitive priorities that must be met for a firm to survive · Order Winners are competitive priorities that distinguish the firm from its competitors

Issues in globalization

· Political risk may increase · Loss of control of proprietary technology · Local infrastructure may be inadequate · High inflation · Worker skills and productivity

Interpretation of productivity ratio

· Productivity measures must be compared to something, year or a different company. Raw productivity calculations do not tell the complete story unless there are no major structure differences.

Describe the four steps in product design

· Step 1: Idea development: Someone thinks of a need and a product/service design to satisfy it. Ideas can be obtained from customers, marketing, engineering, & competitors. Conduct benchmarking (process of studying practices of companies considered best in class and comparing them to others. Then doing reverse engineering: the process of disassembling a product to analyze its design features. · Step 2: Product Screening: after a product idea has been developed, it is evaluated to determine its likelihood of success. Example: fit with facility & labor skills, size of market, contribution margin, break-even analysis & return on sales. · Step 3: Preliminary design and testing: design engineers translate general performance specification into technical specs. Prototypes are built and tested, & changes are made based on the testing. · Step 4: Final Design: final specs are then translated into specific processing instructions to manufacture the product.

Describe the difference between structure strategy & Infrastructure stratgey

· Structure Strategy: Structure is related to the design of production process, such as characteristics of facilities used, selection of appropriate technology, and the flow of goods and services · Infrastructure Strategy: is related to planning and control systems of operations, such as organization of workers, payment, quality control measures, and policies.

What is manufacturability

· The ease with which the product can be made