MKTG 372 Exam 1

One of the "package of features" that make up a service is: A. Appearance B. Facilitating goods C. Packaging D. Cost E. Implied use

B- facilitating goods

The goods-services continuum consists of which set of the following categories? A. No goods, some goods, even mix, some service, no service B. Pure goods, core goods, core services, pure services C. No service, some service, good service, excellent service D. Self-service, help desk service, face-to-face service, service-with-a-smile E. None of these

B- pure goods, core goods, core services, pure services

One reason for studying operations and supply chain management (OSCM) is which of the following? A. OSCM is essential for understanding organizational behavior. B. Most business graduates do OSCM work regardless of their job title. C. All managers should understand the basic principles that guide the design of transformation processes. D. OSCM is a required course in all business degree programs. E. OSCM is the most rigorous business discipline.

C- all managers should understand the basic principles that guide the design of transformation processes

Which of the following are defined as core goods? A. Chemicals B. Airlines C. Data storage systems D. Hotels E. None of these

C- data storage systems

Which of the following is a measure of operations and supply management efficiency used by Wall Street? A. Dividend payout ratio B. Current ratio C. Receivable turnover D. Earnings per share growth E. Financial leverage

C- receivable turnover

Which of the following are not listed in the text as jobs in OSCM? A. Department store manager B. Project manager C. Hospital administrator D. Data center manager E. Call center manager

D- data center manager

Which of the following is not a measure of operations and supply chain management efficiency used by Wall Street? A. Inventory turnover B. Revenue per employee C. Receivable turnover D. Earnings per share E. Asset turnover

D- earnings per share

Which of the following is not a way that operations and supply processes are categorized? A. Planning B. Return C. Delivery D. Selecting E. Making

D- selecting

Current issues in OSCM do not include: A. Coordinating relationships between organizations B. Making senior management aware that OSCM can be a competitive weapon C. The triple bottom line D. Managing customer touch points E. Increasing global supply chain employment

E- increasing global supply chain employment

Doing something at the lowest possible cost is called: _______________

Efficiency

"Business analytics" involves the analysis of data through a unique combination of linear programming, game theory, and queuing theory to better solve business problems.

False

"Green belt" programs are coordinated public works projects aimed a placing an environmentally friendly zone around major cities.

False

"Supply chain" includes only inbound freight and inventory.

False

A bank branch manager position is not an OSCM-type of job.

False

A supply chain manager is an OSCM job while a purchasing manager is not.

False

Activity-system maps depict the geographic reach of a company's business strategies.

False

Although planning involves determining how the various supply chain processes (sourcing, making, delivering, and returning) will be met, planning itself is not considered a supply chain process.

False

An operations strategy must resist change because of the long-term nature of equipment and personnel investments.

False

An order winner is a set of screening criteria that permits a firm's products to be considered as possible candidates for purchase.

False

Automobiles and appliances are classified as "pure goods."

False

By following a straddling strategy, firms can broaden their capabilities and effectively compete with more focused firms in markets requiring low cost for success.

False

Capturing information directly from the source through such systems as point-of-sale, radio-frequency identification tags, bar-code scanners, and automatic recognition has had little impact on operations and supply chain management.

False

Delivering is not considered in supply chain analysis when outside carriers are contracted to move products to customers.

False

Efficiency means doing the right things to create the most value for the company.

False

Infrastructure decisions within operations strategy include the selection of the appropriate technology, the role of inventory, and the location of facilities.

False

Internet technology has made the sharing of reliable real-time information expensive.

False

Investors pay close attention to efficiency and productivity measures like net income per employee because they are interested in how well the firm manages its workforce relations.

False

It is critical that a sustainable strategy meet the needs of shareholders and employees. It is also highly desirable that it preserves the environment.

False

OSCM is concerned with management of the trickiest parts of the system that produces a good or delivers a service.

False

One of the competitive dimensions that form the competitive position of a company when planning its strategies is making the best trade-off.

False

Operations and supply chain processes can be conveniently categorized as planning, sourcing, making, and delivering.

False

Operations and supply chain strategy are not important issues to investors who tend to focus on growth, dividends, and earnings per share.

False

Raising senior management awareness of OSCM as a competitive weapon is not an important issue.

False

Returning involves processes for receiving worn-out, defective, and excess products back from customers but does not involve support for customers who have problems with the product.

False

SSME is an acronym standing for "service sector management economics."

False

Service innovations can be patented.

False

Services are homogeneous.

False

Supply networks cannot be constructed for every product or service.

False

Sustainability is the ability to maintain profits in a system.

False

The approach that advocates making revolutionary changes as opposed to evolutionary changes is called "creation theory."

False

The mathematical results of Business Analytics are used to automate decision making and eliminate the decision maker.

False

The process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services, and technologies into its current portfolio is called flexibility.

False

The supply chain processes mentioned in the textbook are planning, sourcing, delivering, and returning.

False

The supply network as can be thought of as a pipeline through which cash, material and information flows.

False

The term "electronic commerce" refers to the buying and selling of electronic products and devices.

False

Use of systems like point-of-sale, radio-frequency identification tags, bar-code scanners, and automatic recognition has made it more difficult to understand what all the information is saying.

False

Wall Street analysts are not particularly concerned with how efficient companies are from an operations and supply management view.

False

"Operations" refers to manufacturing and service processes used to transform resources employed by a firm into products desired by customers.

True

"Product-service bundling" refers to a company building service activities into its product offerings for its customers.

True

"Supply chain" refers to processes that move information and material to and from the manufacturing and service processes of the firm.

True

A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we could refer to this doctor as being efficient but not effective.

True

A major aspect of planning involves developing a set of metrics to monitor the supply chain.

True

A process can be effective without being efficient.

True

A worker can be efficient without being effective.

True

Activity-system maps are useful in understanding how well a system of activities fits the overall company's strategy.

True

Activity-system maps show how a company's strategy is delivered through a set of tailored activities.

True

All managers should understand the basic principles that guide the design of transformation processes.

True

An operations and supply chain strategy must be integrated with the organization's corporate strategy.

True

An order qualifier is a set of screening criteria that permits a firm's products to be considered as possible candidates for purchase.

True

An order winner is a set of criteria that differentiates the products or services of one firm from another.

True

Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict between the two goals.

True

Business process reengineering, which seeks revolutionary change, is contrasted with total quality management which commonly advocates incremental change.

True

Central to the concept of operations strategy are the notions of operations focus and trade-offs.

True

Core service providers integrate tangible goods into their product.

True

During a recession, efficient firms often have an opportunity to increase market share while maintaining profitability.

True

Effectiveness means doing the right things to create the most value for the company.

True

Green and black belt programs teach six-sigma quality tools to managers at many corporations.

True

In contrast to careers in finance and marketing, careers in OSCM involve hands-on involvement with people and processes.

True

Infrastructure decisions within operations strategy include the selection of the logic associated with the planning and control systems

True

Just-in-time (JIT) production was a major breakthrough in manufacturing philosophy pioneered by the Japanese.

True

Lean manufacturing refers to just in time production coupled with total quality control.

True

OSCM is a functional field of business with clear line management responsibilities.

True

One of the competitive dimensions that form the competitive position of a company when planning its strategies is cost.

True

One of the competitive dimensions that form the competitive position of a company when planning its strategies is delivery speed.

True

Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services.

True

Operations and supply management changes constantly because of the dynamic nature of competing in global business and the constant evolution of information technology

True

Operations and supply strategy can be viewed as part of a planning process that coordinates operational goals with those of the larger organization.

True

Planning is where a firm must determine how anticipated demand will be met with available resources.

True

Service science management and engineering aims to apply the latest concepts in information technology to continue to improve service productivity of technology-based organizations.

True

Services are defined and evaluated as a package of features that affect the five senses

True

Services are intangible processes that cannot be weighed or measured.

True

The "triple bottom line" relates to the economic, employee, and environmental impact of a firm's strategy.

True

The Baldrige National Quality Award was started under the direction of the National Institute of Standards and Technology.

True

The approach that advocates making revolutionary changes as opposed to evolutionary changes is called "business process reengineering."

True

The central idea of supply chain management is to apply a total system approach to managing the flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer.

True

The process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services, and technologies into its current portfolio it is called straddling.

True

The term "electronic commerce" refers to the use of the Internet as an essential element of business activity.

True

The term "value" refers to the relationship between quality and the price paid by the consumer.

True

Processes that are used to transform resources into products are called _______________.

Operations

What is a major industry and university program aiming to apply the latest concepts in information technology to continue to improve service productivity of technology-based organizations called? _____________________________________________

Service science management and engineering (SSME)

What is a total systems approach to managing the flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer called? ________________________________

Supply chain management

The ability to maintain balance in a system is referred to as ______________.

Sustainability

The use of the Internet as an essential element of business activity is called what? ______________________________

electronic commerce

Name five common measures of operations and supply management efficiency used by Wall Street. 1. _____________________ 2. _____________________ 3. _____________________ 4. _____________________ 5. _____________________

income per employee; revenue per employee; inventory turnover; asset turnover; receivable turnover

What are the five categories of supply chain processes? 1. ___________________ 2. ___________________ 3. ___________________ 4. ___________________ 5. ___________________

planning, sourcing, making, delivering, returning

List five OSCM job titles. 1. ___________________ 2. ___________________ 3. ___________________ 4. ___________________ 5. ___________________

plant manager, hospital administrator, branch manager, department store manager, call center manager, etc.

Value is the ratio of __________________________.

quality to price paid

A pipeline through which material and information flows is a conception of a ______________________.

supply network

Which of the following is not a characteristic that distinguishes services from goods? A. Service jobs are unskilled. B. A service is intangible. C. Services are perishable. D. Services are heterogeneous. E. None of these

A- service jobs are unskilled

What are four current issues in operations and supply management that are discussed in the textbook? 1. ___________________ 2. ___________________ 3. ___________________ 4. ___________________

1. Coordinating relationships between mutually supportive but separate organizations; 2. Optimizing global supplier, production, and distribution networks; 3. Managing customer touch points; 4. Raising senior management awareness of operations as a significant competitive weapon; 5. Sustainability and the triple bottom line