Multiple Choice (Course Hero)

B) supply chain management

Few companies have mastered the art and science of________. A) role shifting B) supply chain management C) marketing D) employee satisfaction

B) technologies

No company wants to fight tomorrow's competitive battles with yesterday's outdated and obsolete ________. A) products B) technologies C) management ideas D) machines

False

True or False? "Performance" refers to the product's mean time between failures and its overall life expectancy.

True

True or False? "Serviceability" refers to the speed of repair when quality problems arise.

False

True or False? "Supply" chain and "Value" chain are unrelated and independent of each other

False

True or False? "Traditional" customer service efforts focus primarily on external service levels and goals.

True

True or False? A "first-tier supplier" refers to a supplier in the chain that provides products or services immediately preceding the focal business

False

True or False? A business objective is a theoretical goal that unifies decision-making throughout a company

True

True or False? A company should never outsource its core competency or activities that support it.

True

True or False? A company with good long-term investments may look profitable before taxes, but actually be losing money on operations.

True

True or False? A long production time or high inventory levels tie up large amounts of cash.

False

True or False? A major goal of the supply chain manager is to assure that operations creates processes that meet customer needs

True

True or False? A possible step to minimize the impact of "The Bullwhip Effect" is to encourage retailers to communicate with distributors and manufacturers to develop a collaborative forecast

True

True or False? One of the key benefits of "Innovation" is the ability to capture market share.

True

True or False? One of the major characteristics of today's customers is that they are empowered with a broad range of product and pricing information

True

True or False? One of the major reasons why customer service in America does not produce a high level of customer satisfaction is that many companies claim to be service oriented, but fail to deliver on their promises.

True

True or False? One of the most serious challenges is to achieve process integration's agility and differentiation without losing functional expertise.

True

True or False? One of the pitfalls of functional thinking is that managers view every decision from their own function's perspective, ignoring other viewpoints.

True

True or False? Organizing by functional group impedes system process thinking.

True

True or False? Process mapping identifies individual activities, their specific roles, the people involved, and critical performance dimensions such as time taken by each step.

False

True or False? Process reengineering is the radical redesign of business products.

True

True or False? Profit before tax represents the sum of operating profits plus or minus gains and losses from other activities.

False

True or False? Purchased goods and services flow from downstream suppliers to the focal firm

False

True or False? Quality is most often defined by the customer as meeting customer specifications.

True

True or False? Regarding a customer-centric fulfillment strategy, not all customers are equal and they do not all deserve the same high level of service.

True

True or False? Regarding customer relationships, managers need to treat each customer contact as an opportunity to make an unprofitable customer profitable or make a profitable customer more profitable.

True

True or False? Research and Development is a functional business group that translates customer needs into tangible products. The goal is to build appealing, easy-to-make products with shorter concept-to-market lead times.

False

True or False? Resources, in the context of a business, refer only to the tangible assets of a company

False

True or False? Satisfying customer needs is the job of the marketing department alone.

True

True or False? Sequential NPD (New Product Development) is a traditional approach based on strict functional boundaries.

True

True or False? Several of the major questions an executive addresses when developing supply chain strategy are: (1) What is the overall supply chain's value proposition? (2) How does the company uniquely help the chain deliver on its value proposition? (3) What valued capabilities do other members of the chain possess?

False

True or False? Since customers in these economic times demand high quality products and services, this is achieved through extensive inspections.

False

True or False? Six-sigma, the quality level that many companies strive to achieve is quality that is equal to or less than 34 defects per million parts produced.

False

True or False? Strategic planning helps managers use resources effectively in a changing marketplace to create value for the company

True

True or False? Strategy's role is to guide managerial decision making to develop a winning business model

True

True or False? Supply Chain Management requires management to evaluate how the resources of the entire chain can be used to better meet the needs of the customer

True

True or False? Supply chain information typically flows both upstream and downstream from the focal firm

True

True or False? Supply chain management is often defined as managing the flow of information and materials from the "suppliers' supplier to the customers' customer

False

True or False? Supply chain management is the design and management of seamless, value-added processes across organizational boundaries to meet the real needs of the manufacturer/service provider

False

True or False? The American Customer Satisfaction Index shows that companies have made great progress in recent years in living up to customer expectations.

False

True or False? The Pareto principle when applied to sales suggests that about 20 percent of sales area generated by about 80 percent of all customers.

True

True or False? The following are the 5 basic areas of customer value: quality, flexibility, innovation, delivery and cost.

True

True or False? The interface between marketing and SCM lies in developing the right product at a fair price and then positioning it properly in the marketplace.

True

True or False? The most important role of a business's strategy is to define a company's business model

True

True or False? The responsibility for a process redesign should be performed where the work is done.

True

True or False? The strategic development decision area, "Feedback", helps managers adapt the organization's strategy to meet the demands of a changing requirements world

True

True or False? The term internal "value chain" describes the interconnected nature of a business's internal functions such as R&D, Operations, and Marketing that add value to a process

False

True or False? The theoretical ideal supply chain collaboration is "backward process integration with valued first-tier suppliers"

False

True or False? The top management is the driver of SCM.

True

True or False? The transformation from a functional organization to a process-driven company is challenging under the best of circumstance. One of the biggest hurdles is the uncertainty introduced by the transformation.

True

True or False? There are four distinct decision areas that must be addressed in any effective strategy. They are Environment, Resources, Objectives and Feedback

False

True or False? Three basic theories guide modern strategy formulation and execution: contingency theory, industrial collaboration theory and resource-based theory

True

True or False? To achieve cost leadership, a company must create an intrinsic advantage such as economies of scale, uniquely productive processes or low-cost factors.

True

True or False? Top management often gives the new product team responsibility for the entire customer satisfaction cycle.

False

True or False? Traditional organization structures drive systems thinking—managers begin to see the world from a narrow, functional perspective, acting as if their function were the company.

False

True or False? Usually decisions made in one area of process seldom affect performance in other areas.

False

True or False? When developing core competencies there are two strategies that are most often employed: cost leadership and marketing advertising.

True

True or False? When developing strategies and when the focus is on the decision area "Environments", consideration of the internal environments might include corporate culture, functional relationships and/or reward systems

True

True or False? Winning supply chain strategies should help a company do more than just beat the competition; they should help the company meet the real needs of their customers

True

True or False? Working together over a sustained time period helps companies get to know their suppliers' capabilities and risk factors.

False

True or False? flows out of the company when receivables are collected; the company borrows money, or sells shares of stock.

gaps

When managers emphasize efficient operations over appropriate customer understanding of performance, quality or other key desirable attributes, service _____ will occur

D) no single management level of a business typically understands the departmental interrelationships or value-added activities across all of the functional organizations

When the text cites management's lack of a "holistic view" of process management, this is interpreted as ________ A) minimal resources to adequately implement the holistic view B) functional organizations seldom are transformed into systems organizations C) each step of the process must be assessed regarding its value D) no single management level of a business typically understands the departmental interrelationships or value-added activities across all of the functional organizations

"Systems thinking"

_____ is the holistic process of considering both the immediate local outcomes and the longer-term systems-wide ramifications of decisions

Supply chain

_____ management as a functional member of an internal value chain, coordinates the upstream supply base, finding the right suppliers and building partnerships with them

Supply chain

_____ management is the design of seamless value-added processes across organization boundaries to meet the real needs of the end customer

Conformance

_____ measures how well a product matches established specifications

Functional, substitutes

_____ products are those items that fulfill a basic need, such as staple foods like sliced bread and basic cars like the Honda Civic. Demand is relatively predictable, the products have a longer life cycle, and there are plenty of _____ in the market

Innovative, flexible

_____ products may be fashion or fad items that have a very short life cycle. Examples are the latest video game and high fashion clothing items. They have relatively high profit margins and very unpredictable, short-lived demand, so the firm must be very _____ in meeting customer needs

Performance

_____ refers to the primary operating characteristics of the product

Durability

_____ refers to the product's overall life expectancy

Serviceability

_____ refers to the speed of repair when quality problems arise

Reliability

_____ represents the notion that a product can be counted on not to fail

Resource-based

_____ theory in strategic management focuses on building organizational skills and processes that enable a company to deliver distinctive products and services

Supply chain mapping

_____ uses process mapping techniques to help understand and improve supply chains

Process reengineering

______ describes the radical redesign of business processes made possible by systems thinking and improved information technology

B) Alliances

_______ are the building blocks of successful supply chain teams. A) Contractual requirements B) Alliances C) Information systems D) Goals

D) Trust

_______ is the foundation for effective SCM because it promotes collaboration, risk taking, and both shared information and shared resources. A) A contract B) Arms-length relationship C) Financing D) Trust

C) Scanning

________ becomes a primary mode of organizational learning. A) Marketing B) Change C) Scanning D) Seminar

A) Operations management

________ creates value for customers by transforming capital, technology, labor, and materials into more highly valued products and services. A) Operations management B) Customer service management C) Logistics management D) Development management

A) Inventory control

________ determines how much and when to make specific products. A) Inventory control B) Forecasting C) Scheduling D) Quality control

D) SCM

________ enables winning business models. A) management B) innovation C) information D) SCM

A) Internet

________ has made it possible for other companies to eliminate intermediaries and sell directly to the end consumer. A) Internet B) SCM C) competition D) global sourcing

C) Technology

________ has made the world smaller, bringing not only far away events but also distantly produced products into the homes of consumers worldwide. A) Competition B) Management C) Technology D) Production

C) Process analysis

________ includes examining time, cost, resources and people involved in each step of a process identifying steps that consume the most time and resources, cause delays, or add no value. A) Supply chain mapping B) Process mapping C) Process analysis D) Supplier evaluation

A) Financial performance

________ is a metric for monitoring and managing business activities. A) Financial performance B) Management C) SCM D) NPD

D) Process mapping

________ is a tool to chart how individual processes are currently being conducted and to help lay out new improved processes. A) Design chain mapping B) Pareto charting C) Supply chain design D) Process mapping

A) Supply chain analysis

________ is the examination of the management of the flow of information, inventory, processes, and cash from the earliest supplier to the ultimate consumer. A) Supply chain analysis B) Cost reduction C) Aggregate costing D) Enterprise resource planning

D) Negotiation

________ is the formal communication process where two or more individuals meet to discuss an issue or issues and come to a mutually satisfactory agreement. A) Specification B) Request for quote C) Strategy D) Negotiation

B) Outsourcing

________ is the process of moving an aspect of production, service, or business function from within an organization to an outside supplier. A) Insourcing B) Outsourcing C) Make-or-buy D) Supply chain collaboration

B) Full-service solution

________ providers often cater to the growing market for outsourcing professional services. A) Service solution B) Full-service solution C) Hardware D) Technology

C) Scheduling

________ provides an estimate of what products need to be produced and when they need to be produced. A) Inventory control B) Forecasting C) Scheduling D) Quality control

A) Competitive bidding

________ relies on market forces to get suppliers to offer a low price. A) Competitive bidding B) Supplier selection C) Reverse auctions D) Negotiation

C) Operating profit

________ represents how much money a company makes from the ongoing business of selling its goods and services. A) Financing cash flow B) Working capital C) Operating profit D) Total profit

A) Activity

_________ -based cost management is one possible solution to the many problems associated with traditional accounting systems. A) Activity B) Supplier C) Market D) Product

C) Globalization

_________ has magnified the complexity challenge. A) SCM B) Competition C) Globalization D) Top management

C) The Bullwhip effect

_________ is a phenomenon that occurs when demand variations are exaggerated as decisions are made up the chain. A) CPFR B) SCM C) The Bullwhip effect D) Contingency theory

B) Total cost of ownership

_________ means analyzing the true cost of acquisition, use, maintenance, and disposal of a good, service, capital equipment, or process. A) Target costing B) Total cost of ownership C) Price analysis D) Aggregate costing

C) Cost drivers

_________ must be analyzed relative to their value. A) Suppliers B) Employees C) Cost drivers D) Customers

A) Cost driver analysis

_________ relates to what processes, activities, and decisions actually create costs in your supply chain. A) Cost driver analysis B) Value proposition analysis C) Cost reduction D) Target costing

B) Integrated

_________ supply involves having one or a handful of distributors handle all of the items, rather than ordering from a huge number of manufacturers or small distributors. A) Outsourced B) Integrated C) Insourced D) Global

A) Contingency

_________ theory regarding strategic thinking conceptualizes the relationship between a changing environment, managerial decision-making, and performance. A) Contingency B) Industrial organization C) Resource-based D) Business model

A) Value propositions

_________ used by companies may change over time and vary by product and business unit. A) Value propositions B) Strategies C) Employees D) Research data

A) Transactional

____________ relationships represent the majority of a company's SC relationships. A) Transactional B) Strategic C) Business D) Basic

B) Early supplier involvement

_____________ (ESI) is a key element of innovation strategies at industry leaders like Canon, Honda, and 3M. A) Enterprise source information B) Early supplier involvement C) Environmental strategy implementation D) Export sourcing interface

A) process

__________is defined as an activity that transforms or changes inputs into a new output. A) process B) supply chain C) network D) SCOR model

B) Industrial organization

__________theory regarding strategic thinking claims that market forces should drive decision-making. A) Contingency B) Industrial organization C) Resource-based D) Business model

D) Resource-based

_________theory regarding strategic thinking focuses on building organizational skills and processes that enable a company to deliver distinctive products and services. A) Contingency B) Business model C) Industrial organization D) Resource-based

B) Value chain analysis

________considers how your organization competes and is an essential element of corporate strategy. A) Leadership B) Value chain analysis C) A consultant D) A competitor

A) Process

________design is a manufacturing activity that refers to the technology selection and work design that is based on production volumes, financial resources, and labor cost. A) Process B) Product C) Facility D) Material

C) Value stream mapping

________is a specific application of process mapping, based on lean manufacturing principles including details on process performance characteristics and information flows as well as the physical flow. A) Manufacturing flow charting B) Process mapping C) Value stream mapping D) Supplier flow mapping

A) suppliers

Getting ________ involved early through an ESI program is critical to the success of complex development efforts. A) suppliers B) managers C) competitors D) customers

C) developing departmental tactical plans

Getting all functional business contributors to support the core goals of a business as a team requires a system that considers all of the following requirements except _________. A) defining system boundaries B) determining interrelationships C) developing departmental tactical plans D) performing trade-off analysis

B) system's

"Functional Thinking" regarding process management seeks the local, departmental optimum, often at the expense of the overall ________ performance. A) departmental B) system's C) customer D) individual

C) performance monitoring

"Relationship management" as a part of the purchasing process includes which of the following tasks? A) placement of the purchase order B) communication C) performance monitoring D) supplier payment

A) systems-wide

"Systems Thinking" regarding process management is the holistic process of considering both: the immediate local outcomes and the longer-term __________ ramifications of decision. A) systems-wide B) local C) strategic D) departmental

B) price determination

"Transaction management" as a part of the purchasing process includes which of the following tasks? A) monitoring supplier improvement B) price determination C) evaluation D) approval

D) purchasing, production and logistics

. The three operation functions, ________, ________, and ________, are responsible for the "order fulfillment" process. A) purchasing, production and quality assurance B) material control, production, quality assurance C) material control, production, logistics D) purchasing, production and logistics

A) Environmental scanning

10. _________ is the acquisition and use of information about events, trends, and relationships in an organization's internal and external environments. A) Environmental scanning B) Research C) Consolidation D) Reconciliation

loyalty

16. Meeting customers' needs better than the competition creates _____ and yields valuable long-term relationships

synergies

17. Experience has shown that simplifying the operating environment and creating a fluid organizational culture promotes _____ regarding customer value trade-offs

B) Preparation

18. ________ is the most critical step in the negotiation process. A) Establishment of the team B) Preparation C) Location and agenda D) Establishment of the issues

manufacturing, service

20. There are typically two types of businesses discussed that supply chains support, _____ and _____ companies

1st

21. If Apple Computer purchased disk drives directly from supplier Maxtor, that supplier would be considered a _____ tier supplier to Apple

transformation

3. A supply chain is made up of a series of processes that involve an input, a _____, and an output

C) logistics

3PL involves using a supplier to provide ________ services. A) marketing B) design C) logistics D) contract manufacturing

cross-functional

4. The customer satisfaction cycle shows that new product development is truly a _____ process

"satisfactions"

5. When a customer makes a purchase, he/she is buying a set of _____

C) market

9. Competitive success depends on how well a company, and its supply chain, adapts to new_________ demands. A) business B) organization C) market D) supplier

D) action to proceed

A "PO" is a document that specifies the terms and condition of the purchase agreement and initiates supplier ________. A) selection B) notification of customer interest C) bidding D) action to proceed

D) the interconnectivity of internal business functions whose decisions create value to a product or process

A "value chain" defined by Michael Porter in the text refers to ________. A) external products of suppliers that add value to a process B) the business's financial return on investment C) only the manufacturing transformation of raw materials to customer products D) the interconnectivity of internal business functions whose decisions create value to a product or process

B) manufacturability

A DFX initiative is a product development mandate to improve a specified supply chain factor, X, through careful design. Design for _________ is an example of one of those initiatives. A) supply chain B) manufacturability C) marketing D) designability

core competency

A _____ is something that your company does so well that it provides the company a competitive advantage

value proposition

A _____ is the value a company promises to deliver to customers

process view

A _____ of the company links systems thinking to strategy so that all of the company's functional and resource decisions are consistently focused on achieving the company's most important objectives.

B) core competency

A ________ is a capability the company is so good at that it provides the company a competitive advantage. A) strategic value B) core competency C) economies of scale D) target task

D) core competency

A ________ is something that your company does so well that it provides the business a competitive advantage. A) Pareto principle B) customer segmentation C) fulfillment strategy D) core competency

D) value proposition

A ________ is the value a company promises to deliver to customers. A) objective B) goal C) value-add D) value proposition

C) purchase requisition

A ________ is used to clearly describe and communicate needs to sourcing and includes vital information such as item description, purchase quantity, and delivery date. A) MRP (Manufacturing Resource Planning) B) purchase order C) purchase requisition D) supplier selection form

D) blanket order

A ________ specifies the overall terms of agreement for a given time period, often 1 or more years and the total quantity purchased. A) selection approval B) expedite order C) limited purchase order D) blanket order

D) functional

A __________ organization is defined as the grouping of resources into specific departments, such as research and development, purchasing, production, logistics, and marketing. A) business unit B) matrix C) SCM D) functional

C) p-card

A ________is often used instead of a purchase order for small-dollar purchases that the end-customer can use to purchase material and is similar to a credit card. A) purchase index card B) verbal authorization C) p-card D) MRP directive

D) simultaneously

A company must design its products and services, processes, and supply chains ________. A) in the order of processes, products/services, then supply chain B) in the order of supply chain, products/services, then processes C) in the order of products/services, supply chain, then processes D) simultaneously

A) decision-making authority

A company's organizational structure influences complexity. The real issue is _________ —is it centralized or decentralized? A) decision-making authority B) purchasing C) management control D) physical structure

C) compelling story

A critical step in the analysis is to organize the findings in a way that communicates a________. A) value-adding story B) marketing strategy C) compelling story D) quantifiable answer

upstream, customers

A focal firm's supply chain includes both _____ suppliers and downstream _____

A) value

A goal of supply chain managers is to use technology and teamwork to build efficient and effective processes that create _____for the end customer. A) value B) profit C) inventory D) processes

C) SC management does not routinely challenge product forecast accuracy

A major SC management cause of why inventories of a business could become excessive is all of the following except ________. A) SC management viewed itself as an independent distinct entity removed from the other chain members B) SC management failed to share information with other members of the chain C) SC management does not routinely challenge product forecast accuracy D) SC management actions resulted in a lack of speed in flow of product through the chain

C) frequency

A major difference between critical projects and strategic items is the _________ of the purchase. A) volume B) cost C) frequency D) quality

C) efforts emphasize technology without accounting for the challenge inherent in bridging functional boundaries

A major reason why reengineering efforts have produced mixed performance results is ________. A) the team has a limited understanding of the project goals B) the elimination of system boundaries has caused confusion regarding responsibility C) efforts emphasize technology without accounting for the challenge inherent in bridging functional boundaries D) The statement above is not true. Reengineering efforts almost always produce efficient and beneficial results.

C) that interdependencies of the supply chain members are not realized

A major weakness of historical supply chain strategies is________. A) the operating costs are seldom budgeted B) the lack of consideration of supplier geographic location C) that interdependencies of the supply chain members are not realized D) that they frequently do not require use contract manufacturers

activity-based

A method of determining actual costs of a product or process cited in the text as _____ costing ties specific costs directly to the customers that create them

cross-functional, inter-organizational

A most common approach to building a borderless culture in support of systems thinking is _____ and _____ teaming

expectations, experience

A negative gap between customer _____ and customer _____ leads to customer dissatisfaction

fill rate

A performance metric used to measure the percent of products ordered that are actually delivered from distribution centers is called the _____

A) physical

A process consists of a set of identifiable flows and value added activities. Three distinct flows define each process: an information flow, a ________ flow, and a financial flow. A) physical B) theoretical C) value-stream D) supply chain

C) time consuming, inefficient

A sequential NPD cycle is often ________ and ________. A) value-adding, effective B) fast, intuitive C) time consuming, inefficient D) quantifiable, efficient

B) transactional

A supplier relationship characterized by an arm's length approach regarding relationship intensity would be considered ____________. A) strategic alliance B) transactional C) business alliance D) operational alliance

D) transformation

A supply chain is made up of a series of processes that involve an input, a ________, and an output. A) shipment B) suppliers C) customers D) transformation

value

According to Michael Porter, the business's interconnected nature of internal functions forms a _____ chain

B) Does the business derive most of its revenue based on products or services that exhibit the core competency?

All except one of the following are key questions for identifying core competencies: A) Does the identified skill set contribute significantly to what the customer perceives as the organization's value-added? B) Does the business derive most of its revenue based on products or services that exhibit the core competency? C) Is the business particularly good as the skill set? D) Is the skill set broad enough that it allows the opportunity to enter many diverse markets or businesses?

C) increasing order fulfillment times

All of the following are benefits to the customer as a result of establishing a strategic partnership except__________. A) lowering costs B) improving quality C) increasing order fulfillment times D) enhancing responsiveness

C) decreased production stability

All of the following are benefits to the supplier as a result of establishing a strategic partnership except ________. A) longer term contracts B) investments in improvements C) decreased production stability D) larger volume contracts

B) vertical integration

All of the following are business examples of outsourcing except ________. A) 3PL (Third Party Logistics) B) vertical integration C) offshoring D) contract manufacturing

C) competition

All of the following are business resources as part of a value-added system of the internal and external supply chain except________. A) technology B) people C) competition D) materials

B) intolerance for ambiguity

All of the following are characteristics of an effective negotiator except ________. A) ability to listen B) intolerance for ambiguity C) persistence D) willingness to study and practice

B) choosing the lowest cost supplier

All of the following are considered preferred procurement practices except _________. A) timely payment B) choosing the lowest cost supplier C) training D) clear specification

D) buy

All of the following are elements of the Supply-Chain Council's SCOR model except ________. A) plan B) return C) make D) buy

B) excessive management focus on the external supply chain while minimal attention on the internal chain

All of the following are major problems cited in the text regarding supply chain management in actual practice except ________. A) they do not effectively work together to reduce inventory levels and costs up and down the chain B) excessive management focus on the external supply chain while minimal attention on the internal chain C) companies are actually members of the supply chain, they manage as separate distinct entities D) most company efforts at collaboration target only the first tier customers and suppliers

B) development

All of the following are major steps in the supplier selection process except ________. A) identification B) development C) approval D) monitoring

D) location

All of the following are opportunity considerations for businesses to create customer value except ________ A) quality B) cost C) flexibility D) location

B) budget and resources required

All of the following are phases of an alliance relationship development except ________. A) internal planning B) budget and resources required C) daily management for execution and renewal D) collaborative planning

D) as a prerequisite to strategic planning

All of the following are reasons why supply chain mapping is performed except ________. A) chain is not performing to expectations B) cost reduction or time reduction is needed C) gain a better understanding of the supply chain D) as a prerequisite to strategic planning

C) both sides must understand the non-negotiable elements of the other's positions

All of the following are required conditions for a win-win negotiation to be successful except ________. A) both sides adopt a win-win mentality B) both sides must approach the negotiations with an attitude of trust C) both sides must understand the non-negotiable elements of the other's positions D) both sides must have a vested interest in a successful outcome

D) train workers for few but selective tasks and organize work in single function teams

All of the following are steps critical to creating a "flexibility" culture except________. A) make cycle time a priority throughout the organization B) benchmark against customer requirements and competitors' capabilities C) build learning loops into every process throughout the organization D) train workers for few but selective tasks and organize work in single function teams

D) the business treats each customer contact as an opportunity to make an unprofitable customer profitable or make a profitable customer more profitable

All of the following are the primary reasons why a business's customer service may not fulfill customer needs except ________. A) the level of service provided is based on the customer's level of value to the business B) improvements are directed at efforts that add no customer value C) claims of improved service do not match the business's actual performance D) the business treats each customer contact as an opportunity to make an unprofitable customer profitable or make a profitable customer more profitable

A) ERP information system

All of the following are typical steps in the purchasing process except __________. A) ERP information system B) supplier selection C) transaction management D) relationship management

value

All supply chains are made up of a series of linked company-level _____ chains

D) long-term

Alliances tend to be ________ and resource intensive. A) short-term B) costly C) global D) long-term

C) innovative

An approach to supply chain design proposed by Marshall Fisher is to design the supply chain based upon whether the product or service you sell is _________ or functional. A) aesthetic B) theoretical C) innovative D) a model

C) Are customers' performance measurements adequate?

An effective customer service feedback system addresses all of the following questions except: A) Does our current performance meet our customers' requirements? B) Would an improvement in our performance really be valued by our customers? C) Are customers' performance measurements adequate? D) How do important customers define quality, on-time delivery, responsiveness, and other key value areas?

C) value proposition

Anytime you make a change that is not completely transparent to the customer, the firm's _________ could be at risk. A) suppliers B) market share C) value proposition D) stock price

C) customer

As customers gained access to a wide array of competitive offerings, power began to shift toward the __________. A) suppliers B) competitors C) customer D) employees

A) core competencies

As part of the design process, it is most important for each company to know its __________. A) core competencies B) raw materials C) marketing forecasts D) demands

C) collaborative

As the rationalization process progressed, Chrysler developed the understanding and freed up the resources needed to build more __________ relationships with its most important suppliers. A) competitive B) synergistic C) collaborative D) innovative

B) design

Assessing the cost and quality of a new product in the ________phase of development enables a more accurate prediction of customer acceptability of the product or service. A) production B) design C) marketing D) sales

B) upstream

Assume for a moment you are a SC manager at Dell Computer. One of the commodities you plan and purchase is the microprocessor device from Intel. Intel is therefore considered a (an) _________ member of the value chain. A) downstream B) upstream C) not a member of the value stream D) internal

A) downstream

Assuming you are the manufacturer of a product, from your perspective a Distributor is an example of a ________ member of the value chain. A) downstream B) upstream C) not a member of the value stream D) internal

customer satisfaction

At the heart of the new product development process is the _____ cycle

C) managed well within the focal firm

Before SC processes can be managed effectively up and down the supply chain, they must be ________. A) documented as a value chain process B) supported adequately with supply chain expert staffing C) managed well within the focal firm D) evaluated for efficiency and effectiveness

needs, strategy

Better processes and more competitive products result when managers in the various business functions understand customer _____, company _____, and work well together

Environment, Resources, Objectives and Feedback

Business strategies that effectively use resources to satisfy customers better than rivals are based on the consideration of four decision areas. They are _____

C) speed

Companies have competed on the basis of ________ since the just-in-time revolution. A) inventory B) supplier base C) speed D) profits

C) duplication

Companies like General Motors and Unilever have struggled for years to overcome the costly _________ that arises from a decentralized structure. A) business B) loss C) duplication D) tax structure

C) effective alignment results in Profitable Customer Takeaway

Considering a competency-success factor alignment matrix, when customer success factors are high and competencies are high, this condition will most likely result in ________. A) diminished focus and dissipated capabilities B) resources expended here are wasted C) effective alignment results in Profitable Customer Takeaway D) effort and resources dedicated to non-valued activities result in low customer takeaway

C) isolation

Cost reduction should never be done in _________. A) organizations B) fourth quarter C) isolation D) bad times

success factors

Customer _____ are the capabilities that first-tier customers need to satisfy their downstream customers

segmentation

Customer _____, the identification of unique groups of customers who possess similar needs, helps managers develop the products and establish the systems needed to fulfill the needs of different customer groups

C) supply chains

Customer focus requires that businesses look not only at their own operations, but also at external ________. A) competitors B) organizations C) supply chains D) financial institutions

upstream suppliers, downstream customers

Customer success is driven by knowledge and capability. It relies on the strength of _____ while working to enhance the competitiveness of _____

(1) a clearly communicated goal to help customers succeed, (2) a clear understanding of downstream requirements, (3) investments in customer-valued capabilities, (4) training provided to customers, and (5) resources shared with customers

Customer success strategies consist of four factors, which?

C) strategic

Customer, supplier, and service provider relationships should be classified based on their ___________ relevance and importance. A) tactical B) innovation C) strategic D) immediate project

B) trade-off analysis

Decisions made in one function area of a company often affect performance in other areas of a company. This situation requires business teams to perform a __________in order to decide what decision is best for a company. A) strategic plan B) trade-off analysis C) gap analysis D) value stream map analysis

D) profit, target price

Deducting the target________ from the ________ yields the target cost. A) value, target price B) price, profit C) cost, profit D) profit, target price

• Improved customer satisfaction • Lower operating costs • Speed/flexibility of the chain

Define at least 3 benefits a business will experience with an effective/efficient SC function

The true value that a product or an organization returns to its shareholders. It considers how much money the company makes from operations after taxes, less the cost of the capital that the company had tied up to make that money. It is a measure of the surplus value generated by an investment. negative = the investment did not pay for itself. zero = the investment broke even.

Describe in brief the meaning of Economic Value Added (EVA) and its implications

Demand variations are likely to be exaggerated as decisions are made up the chain. a. Point of sale information available to all members of the chain. b. Collaborative forecasts c. Planning future product promotions

Describe in detail the supply chain phenomenon "the bullwhip effect" and at least three recommendations to minimize the effect

Internal value chain includes all operations and support functions within a business while the external are the suppliers, sub-tier suppliers, distributors, end customers, etc external to the business but key members of the supply chain.

Describe the similarities and the differences of the "internal value chain" and the "external value chain.

A) a just-in-time material delivery process

Dock-to stock refers to __________. A) a just-in-time material delivery process B) supplied material requires inspection than movement to the stockroom C) supplied material is directed to stock and not the manufacturing floor D) the normal process flow of procured material

B) process

Essential elements of __________ management include the timely flow of information, efficient flow of physical materials and the effective cash flow management. A) business B) process C) product D) project

9

Experts say that more than _____ out of every 10 new products introduced fail

A service gap may occur due to a lack of information regarding customer expectations. Improved communications will reduce or eliminate a limited understanding of customer requirements.

Explain how customer information feedback helps supply chain managers reduce/eliminate service gaps in supporting customers

The linked set of activities within a supply chain that actively add value to the end product, as opposed to support or reporting activities. Marketing, logistics, R&D, Operations, Suppliers, Distribution, etc.

Explain in a clear, concise paragraph what is the "value chain" and examples of operational functions that would add value to the chain

Environment: Global suppliers with consideration of culture, infrastructure and regulations. Resources: Understand all the resources of the total supply chain. Objectives: Fulfilling the needs of the end or final customer. Feedback: Members of the chain working together based on quality of the information system.

Explain in sufficient depth the supply chain perspective for each of the following areas of strategy for your new manufacturing business: Environment, Resources, Objectives and Feedback. Choose one of the following businesses to support your response. a. Poker tables, chairs, accessories. b. Men's and women's athletic shoes c. Backpack manufacturer

Competitive: (S) Foundation of business practices with customer focus (W) May be insufficient to establish market leadership Winning: (S) Development of exceptional products or services, recognizing the internal and external value chain contribution (W) Leader implies risks

Explain the differences, strengths and weaknesses of "competitive" versus "winning" business strategies

D) competition

Fierce, unrelenting _______ is the common denominator in today's economy. A) value B) price C) profit D) competition

process thinking

Firms typically organize their businesses by function. This method of organization typically impedes _____

Quality, cost, flexibility, delivery, and innovation.

Identify each of the five areas of customer value and explain how each is important in developing a distinctive advantage with regard to the competition.

B) promises and capabilities

Identifying specific customer needs and then matching the company's ________to those needs is the key to implementing a successful customer fulfillment strategy. A) core competencies B) promises and capabilities C) delivery D) synergies

fulfillment

Identifying specific customer needs and then matching the company's promises and capabilities to those needs is the key to implementing a successful customer _____ strategy

Quality, delivery, flexibility, innovation and cost.

Identifying specific customer needs and then matching the company's promises and capabilities to those needs is the key to implementing a successful customer fulfillment strategy. Explain in detail a minimum of 3 of those typical customer needs.

B) small

In a well-managed purchasing department, expediting a purchase order occurs typically on a ________percentage of material shipments. A) large B) small C) routine D) moderate

D) non standard

In general, _________ items are more costly because there aren't as great of economies of scale. A) MRO (maintenance, repair, and operating supply) B) forged C) fabricated D) non standard

A) supply chain

It is the job of all members of the ________ to understand, serve, and satisfy the end customer. A) supply chain B) organization C) department D) team

C) supplier capacity and capabilities

Knowledge management is a purchasing skill that modern sourcing professionals require and would include one of the following _________. A) new commodity technology B) alternative designs C) supplier capacity and capabilities D) downstream processes

assessment, planning, execution, and learning

Leading supply chain companies us an iterative 4-step process to develop a supply chain enabled business model. The steps include...

• Get into the mind of a customer (Marketing and the criticality of the customer) • Conceptualize and develop a product (New product development) • Verify financial viability (The role of finance in the NPD) • Invest in Future Customer-Pleasing Product (Continue the cycle)

List the four phases of the 'cycle of satisfaction' and explain each in 2-3 sentences

B) information archival capability

Major components of a well-performing supply chain feedback system include all of the following except________. A) good information systems B) information archival capability C) consistent performance measurement D) frequent information sharing

D) transform inputs acquired from suppliers into more highly valued products

Major objectives of a supply chain manager include all of the following except ________. A) reduce product or service costs B) create value for the end customer C) improve service to operations and the customer D) transform inputs acquired from suppliers into more highly valued products

C) cost management

Major research studies show that chief executive officers are consistently concerned about __________. A) competition B) change C) cost management D) innovation

supplier selection, evaluation, oversight

Management of the supply network entails _____, _____, and _____

B) evaluation

Management of the supply network entails supplier selection, ________ and oversight. A) leveraging B) evaluation C) approval D) negotiation

A) core competencies

Managers must consider each of the following areas in developing effective supply chain strategies to satisfy its customers except ________. A) core competencies B) environment C) feedback D) resources

D) resources

Managers must consider each of the following areas in developing effective supply chain strategies to satisfy its customers except ________. A) core competencies B) environment C) feedback D) resources

C) supply chain

Many researchers and business analysts believe that organizations are now competing ________ to________ rather than firm to firm. A) infrastructure B) revenues C) supply chain D) employees

A) customer

Meeting ______ expectations while mitigating performance trade-offs is a huge challenge for SC managers. A) customer B) manager C) competitor D) supplier

functional, process

Meeting customer expectations requires a shift from a _____ organization to a _____ orientation.

cost leadership, differentiation

Michael Porter, professor at Harvard Business School and leading authority on competitive strategy and international competitiveness cites two strategies that should be considered when developing the overall business strategy: _____ and _____

Cost leader through economies of scale, uniquely productive process or low-cost factor inputs. Differentiation through advanced product technology, advanced process technology, extensive distribution network, and/or better, more user-friendly products.

Michael Porter, professor at Harvard Business School and leading authority on competitive strategy and international competitiveness cites two strategies that should be considered when developing the overall business strategy: cost leadership and differentiation. Please explain these terms in the context of a business strategy

contingency

Modern strategic thinking emerged when _____ theory conceptualized the relationship between a changing environment, managerial decision-making, and performance. Moderate

B) stock's

Modest failures to meet analysts' expectations can batter a _________ price. A) product's B) stock's C) company's D) supplier's

B) hard work, research

Most viable ideas for new products don't come as a flash of insight, but rather from ________ and ________. A) books, journals B) hard work, research C) suppliers, customers D) employees, partners

B) 3.4 PPM

Motorola established its 6-sigma quality improvement program more than a decade ago. The numerical value of 6-sigma is _______. A) 99.98% defect free B) 3.4 PPM C) 6 PPM D) 1000 PPM

Executive Management, R&D, Supply Management, Operations, Logistics, Marketing, Human Resources, Accounting, Finance, Information Technology

Name three typical organizational members of a business's internal value chain

C) information, materials

One definition of supply chain management is managing the flow of _________and _________ from the suppliers' supplier to the customers' customer. A) raw materials, labor B) orders, inventory C) information, materials D) suppliers, customers

B) processes, end customer

One definition of supply chain management is the design and management of seamless value-added _________ across organizational boundaries to meet the real needs of the __________. A) products, producer B) processes, end customer C) information systems, supply chain D) services, supplier

D) identify high quality supplier candidates

One major purchasing objective achieved through the supplier selection process is to __________. A) maximize use of the ERP system B) establish the make cost of the purchased material C) determine candidates for future purchased material D) identify high quality supplier candidates

B) competitors

One marketing department responsibility is to identify current and emerging ________. A) products B) competitors C) core competencies D) employees

A) primary operating characteristics of the product or service

One of Garvin's 8 factors that comprise quality as viewed by the customer is performance. Performance refers to the ________. A) primary operating characteristics of the product or service B) delivery speed of the product or service C) number of product or service features D) customer viewed dependability of the product or service

B) a product or service characteristic where it can be counted upon not to fail

One of Garvin's 8 factors that comprise quality as viewed by the customer is reliability. Reliability is defined as ________. A) the difficulty of the product to be repaired B) a product or service characteristic where it can be counted upon not to fail C) how well a product or service matches established specifications D) the delivery speed of the product or service

C) speed of repair when quality problems arise

One of Garvin's 8 factors that comprise quality as viewed by the customer is serviceability. Serviceability refers to the________. A) product or service characteristic where it can be counted upon not to fail B) customer viewed dependability of the product or service C) speed of repair when quality problems arise D) the frequency of repair

D) the belief that an alliance partner is only as good as its last performance

One of the major causes of not achieving an alliance relationship development is __________. A) insufficient customer size B) insufficient management resources C) disclosure by the supplier of the customer's proprietary information D) the belief that an alliance partner is only as good as its last performance

B) feedback

Ongoing evaluation and ________ are important to keep an outsourcing arrangement on track, and stay in tune with the organization's changing needs. A) management B) feedback C) audit D) arms length relationship

B) partners in profit

Only by working as ________ can companies thrive in today's competitive environment. A) competitors B) partners in profit C) isolated units D) public concerns

cost, flexibility, delivery, innovation quality

Opportunities to deliver customer value occur in five areas: _____, _____, _____, _____, and _____

have certain components or commodities in the value chain provided by suppliers outside of one's business

Outsourcing is defined as a decision to...

C) offshoring

Outsourcing products or services to a different country is referred to as ________. A) third party services B) offloading C) offshoring D) logistics

B) planning

Outstanding alliance performance requires careful ________ and execution. A) investment B) planning C) management D) capital

80, 20

Pareto principle suggests that about _____ percent of sales are generated by about _____ percent of all customers

A) customer

The real measure of quality is whether or not a product or service lives up to ________expectations. A) customer B) design C) company D) supply chain

B) reduced number of approved suppliers

Poorly designed supply chains may exhibit all of the following problems except ________. A) long cycle times B) reduced number of approved suppliers C) high inventories D) communication issues

D) strategic

Potential outsourcing decisions must always be analyzed from a ________ perspective and not only from the perspective of whether the organization will reduce its costs. A) purchasing B) management C) tactical. D) strategic

B) decline

Product life cycle (PLC) is a marketing concept stating that products and services evolve through a life cycle including stages of introduction, growth, maturity and _________. A) revision B) decline C) redesign D) expansion

D) minimize purchasing costs

Process management is a purchasing skill that modern sourcing professionals require. All of the following are elements of supplier process management except ________. A) improvement of the sourcing process B) manage collaborative processes C) initiate supplier development efforts D) minimize purchasing costs

D) How can we do the job better than anyone else?

Questions that a supply chain strategist must ask in the development of supply chain strategy are? A) How does the company uniquely help the chain deliver on its value proposition? B) What valued capabilities do other members of the chain possess? C) What is the overall supply chain's value proposition? D) How can we do the job better than anyone else?

D) radio frequency identification tags

RFID is interpreted as __________. A) this term has no specific meaning in this text or course B) radio frequency inventory and distribution C) regional funding and identification D) radio frequency identification tags

industrial organization

Regarding strategic thinking, _____ theory suggests that market forces should drive decision-making

people, technology, materials, infrastructure

Regarding the management of business resources, there are four resources as part of its own value-added system or as part of the larger supply chain. These resources are _____, _____, _____, and _____

D) analysis

Regardless of how the data are gathered, a careful________ is needed to identify common themes and trends. A) manager B) system C) culture D) analysis

D) cost-driven

The relationship established with a strategic supplier includes all of the following characteristics except __________. A) long-term B) shared resources C) joint planning D) cost-driven

expertise

Risk is reduced when _____ is identified and applied

D) customers, suppliers

SC leaders regarding new product introduction rely heavily on a teaming approach that includes ________ and ________early in the process. A) raw materials, labor B) orders, inventory C) information, materials D) customers, suppliers

design, manage view value, define satisfaction

SC manager's goal is to _____ and _____ processes to meet customer needs. To do so, they need to understand how customers _____ and _____

C) value-added

SCM is the design and management of seamless, ________ processes across organizational boundaries to meet the real needs of the end customer. A) purchasing B) business C) value-added D) quantifiable

D) demand chain

Satisfying customer needs is not the job of the marketing department alone. It is the task of the entire supply chain, sometimes called a __________ by customer focused marketers. A) contingency B) business C) organization D) demand chain

logistics

Sourcing, operations, and _____ play key roles in building a delivery capability

A) costs, profits

Strategic cost management as using cost management techniques to reduce the organization's ________ and improve ________ while supporting its value proposition. A) costs, profits B) suppliers, value C) customers, costs D) assets, liabilities

the customer

Strategic planning helps managers use resources effectively in a changing marketplace to create value for _____

business

Strategy's role is to guide managerial decision making to develop a winning _____ model

C) roles, responsibilities

Success requires more than great players; it depends on getting everyone to accept specific ________ and ________. A) competition, strategies B) change, initiatives C) roles, responsibilities D) innovation, customization

D) is capable of consistently shipping high quality material

Supplier certification suggests that the supplier ________. A) meets the requirements of an international standard B) meets government regulations for the commodity C) has achieved on-time delivery requirements D) is capable of consistently shipping high quality material

D) efficiency

Supplier/customer relationships require varied levels of managerial attention and resource dedication however all relationships should be managed for ________ and fairness. A) cost effectiveness B) productivity C) consistency D) efficiency

design

Supply chain _____ is a relatively new concept that advocates organizations to plan their supply chains rather than allowing them to "happen."

information

Supply chain management is often described as managing the flow of _____ and materials from the sub-tier suppliers to the final customers

organizational

Supply chain management is the design and management of seamless, value-added processes across _____ boundaries to meet the real needs of the end customer

B) customer value

Supply chain managers include quality, cost, flexibility, delivery and innovation as the most significant business contributors when creating ________ A) revenue B) customer value C) strategic plans D) process maps

A) as a direct result of inadequate communications up and down the supply chain

Supply chain members experience the "bullwhip effect" ________. A) as a direct result of inadequate communications up and down the supply chain B) when members of the supply chain initiate a collaborative forecast C) when demand forecasts are stable, quantified and communicated throughout the chain D) typically during a new product introduction when the rate of increase in demand occurs

B) determine the individual costs of process steps

Systems analysis consists of all of the following steps except__________. A) perform trade-off analysis B) determine the individual costs of process steps C) determine interrelationships D) establish a core goal

(a) establish a core goal, (b) define the system boundaries, (c) determine interrelationships, (d) define information requirements, (e) perform trade-off analysis, and (f) evaluate system constraints

Systems analysis consists of the following steps...

DFX (Design For Excellence)

The overriding principle of _____ is to create an atmosphere where designers work with other key players internally or in the supply chain to ensure that the critical issues are considered and integrated in to design

B) the sum of the costs of purchasing, transportation, using, warranting and disposing

The "total cost of ownership" of a purchased material referred to in the text is explained as ________. A) purchasing the lowest price component B) the sum of the costs of purchasing, transportation, using, warranting and disposing C) the global sourced cost D) purchase price plus the direct labor expense Moderate

communication

The Bullwhip Effect experienced in the supply chain is often the result of a failure in _____ upstream and downstream within the supply chain

C) complimentary

The NPD process and target costing process are ________ processes. A) competing B) successive C) complimentary D) intuitive

plan, source, make, deliver, return

The SCOR (supply chain operations reference) model is very process-focused. It proposes that the supply chain is made up of a series of linked _____, _____, _____, _____, and _____ processes

"total-cost-of-ownership"

The _____ can only be assessed by evaluating the costs associated with purchasing, transporting, using, warranting, and disposing of the item

B) profit

The __________ is a measure of how much a company makes after paying all its expenses. A) sales revenue B) profit C) assets D) cash flow

B) supplier selection

The authors suggest that the most important step in the purchasing process is ________. A) transaction management B) supplier selection C) relationship management D) communication

infrastructure

The business resource of _____ refers to the physical, bricks-and-mortar assets a company uses in the value creation process

C) cross-functional

The customer satisfaction cycle shows that new product development is truly a ________ process, requiring extensive collaboration throughout a company. A) personal B) revolutionary C) cross-functional D) innovative

B) make-or-buy decision

The decision to insource or outsource is referred to as a (a/an)________. A) offshore decision B) make-or-buy decision C) business decision D) contract manufacturing

B) capacity

The desire to get into the competitive game has driven companies to add __________ at breakneck speed. A) quality B) capacity C) suppliers D) customers

B) target price

The first challenge of the new product introduction process is determining the________ of the product. A) market B) target price C) attributes D) qualities

C) risks

The first critical step in managing and controlling risk is to recognize the__________. A) products B) processes C) risks D) raw materials

D) "Are there real opportunities to improve process performance?"

The first question a process reengineering team should ask before improving a process is ________ A) "What is the desired outcome/end goal of the team's effort?" B) "Why is the process performed?" C) "What are the operating costs of the current process?" D) "Are there real opportunities to improve process performance?"

C) needs, desires

The first step in the cycle of customer satisfaction is to get into the mind of the customer to identify customer __________ and __________. A) products, processes B) people, products C) needs, desires D) goals, objectives

(a) a holistic view of the system, (b) access to accurate information, (c) cross-functional organizational structure = teamwork, (d) supportive measurement, and (e) rigorous systems analysis.

The five requirements for systems thinking are...

D) limited manufacturing capacity

The following lists the most significant reasons for outsourcing except ________. A) reduce operating costs B) creates a variable cost structure C) improve skills D) limited manufacturing capacity

A) logistics

The function of ________ is to transport and store goods, assuring that inbound materials are available for operations and that outbound finished products are available to the customer. A) logistics B) material planning C) purchasing D) production

D) contract

The growth of__________ manufacturing has made it highly attractive for companies. A) automatic B) cell C) technical D) contract

A) value

The key is to assure that the added costs associated with the added complexity don't outweigh the ________ created. A) value B) profits C) customers D) capital

needs

The key to satisfying customers is to understand their _____ so that unique products and services can be developed to meet those _____

C) a make or buy decision

The management of supply chains and supply networks are responsible to provide two fundamental decisions in the management of supply chain tasks, ________ and the choice of supplier. A) execute a buy decision B) the target cost of the material procured C) a make or buy decision D) the choice of sub-tier suppliers

B) finance

The non-profit organization, Supply Chain Council proposes a supply chain reference model as a business standard. All of the following processes are key elements of this model except ________. A) plan B) finance C) deliver D) return

A) move and store materials so they are available when and where they are needed

The operations function of logistics is typically to ________. A) move and store materials so they are available when and where they are needed B) manage the upstream and downstream business processes C) provide business management with customer and supplier information systems D) manage distribution centers

B) complex

The primary goal behind process mapping is to make _________systems visible. A) information B) complex C) process D) supplier

D) unify the understanding of the activities, the people performing the activities and critical performance dimensions of the process

The primary reason a process map should be created when improving a process is to________. A) explain to customers all process activity B) satisfy regulatory requirements C) determine what activities must change to accomplish the team objective D) unify the understanding of the activities, the people performing the activities and critical performance dimensions of the process

establish core goal, define system boundaries, determine interrelationships, determine information requirements, trade-off analysis, identify system constraints, and make a decision

The process steps for "systems analysis" in support of company and supply chain systems management include...

flow of product, information from manufacturer

The processes analyzed in value stream mapping tend to be broad processes, such as mapping the _____ and _____ to customer

D) sales

The profit impact of cost reduction is much larger than the impact of increased __________. A) innovation B) production C) information D) sales

D) avoid supplier delivery problems

The purpose of penalty clauses in purchasing agreements is to _________. A) assure the financial stability of the supplier B) stock inventory at the supplier C) require the supplier to comply with mandatory cost reduction efforts D) avoid supplier delivery problems

C) survival

The quest for _________ in a competitive world has led managers to step tentatively out of their comfort zones. A) profits B) perfection C) survival D) success

C) complexity

The quest to reduce unnecessary _________ by finding the right balance between local autonomy and central control is difficult and dynamic. A) waste B) change C) complexity D) costs

D) market

The second step in the cycle of satisfaction is to take the product from idea to ________. A) customer B) production C) end D) market

C) necessity

The study of SC systems suggests that added complexity is often a ________. A) burden B) bane C) necessity D) impossibility

B) A decision to have certain components in the value chain provided outside of one's business

The term "outsource" is used frequently in the text. Outsourcing is defined as________. A) Disqualifying a supplier for a procured product or service B) A decision to have certain components in the value chain provided outside of one's business C) Relying on the customer to add-value to the product or service D) Reducing the number of suppliers of a product or service to only one source

A) a government or a public agency chooses to outsource

The term "privatization" with regard to supply chain management refers to when ________. A) a government or a public agency chooses to outsource B) a government or a public agency chooses to insource C) a government agency chooses to outsource D) a public agency chooses to outsource

B) hidden plant

The term ________ was coined to signify that 15 to 40 percent of a firm's capacity is used to find and fix poor-quality work. A) Kaizen B) hidden plant C) core competency D) Pareto principle

B) sequence of suppliers or customers that are in the chain but distant from the base/focal company

The terms 1st tier, 2nd tier, 3rd tier, in the context of a supply chain refers to the ________. A) levels of supplier certification B) sequence of suppliers or customers that are in the chain but distant from the base/focal company C) value categories of procured commodities D) number of suppliers for a procured commodity

Traditional restructuring replaces other resources with technology without changing the basic process design. Re-engineering creates processes from the beginning.

The terms process re-engineering and traditional restructuring are used to describe designs or changes in business processes. Explain how they are different in relationship to each other

The "knowledge" or information regarding downstream requirements of the customer helps suppliers design appropriate customer fulfillment strategies

The text makes the statement "As managers gain knowledge of downstream requirements, they become consultants to their customers." Please explain this statement.

B) technology improvements of the commodity

The text refers to four practices that are elements of a strong supplier performance monitoring process. They include all of the following except ________. A) contract information B) technology improvements of the commodity C) part type or commodity information D) current status of the PO

Managers see the world from a narrow, functional perspective acting as if their function were the company. Loss of awareness of what the company's goals and objectives may occur.

The text suggests that "functional organization impedes process thinking" and "traditional organization structures drive functional thinking". In your own word please explain what these statements mean.

D) Frequent communication occurs between the two firms at many levels, including marketing, engineering, logistics, and senior management.

The text suggests that customers can be segmented by percent of sales into an A, B and C categories. Applying the Pareto principle, approximately 80% of sales is provided by 20% of the customers. This segment is defined as the A segment. What statement below best characterizes the relationship? A) Members of this group often become tomorrow's "customers of choice". B) The business operation provides high levels of standardized service excellence. C) Dedicated customer account teams are used to establish a consistent point of contact and a personal touch. D) Frequent communication occurs between the two firms at many levels, including marketing, engineering, logistics, and senior management.

Bringing your supplier into the customer's new product development process to tap their expertise in product and process design often results in lower material cost and improved quality

The text suggests that early supplier involvement (ESI) is a key element of innovation strategies of industry leaders. Please explain.

B) forward and backward integration from the supplier's supplier to the customer's customer

The theoretical ideal supply chain process collaboration is __________. A) internal process integration B) forward and backward integration from the supplier's supplier to the customer's customer C) backward process integration with valued first-tier suppliers D) forward process integration with valued first-tier customers

D) financial

The third step in the cycle of customer satisfaction is to verify the ________ viability of new products. A) production B) market C) technical D) financial

A) communication

The use of new product development (NPD) teams reduces the risk that comes from poor ________. A) communication B) suppliers C) customers D) processes

C) adoption of advanced process technology

There are four supply chain cost-reduction strategies employed by competent procurement functions as cited in the text. They include (1) productivity enhancement, (2)________, (3) locating facilities in countries with low-cost inputs, and (4) sourcing from the world's most efficient suppliers. A) placing large quantity purchase orders B) sourcing from past suppliers C) adoption of advanced process technology D) sourcing from local suppliers

"supply chain operations reference" model

There are numerous popular approaches for designing supply chains. This includes the SCOR model, which is short for _____

• Cross-trained workers and organize work in multifunctional teams. • Design performance measures to value fast-cycle capabilities. • Develop information systems to track activities and share information

There are several key steps that are critical to creating a supply chain flexibility culture, which?

• Make cycle time a priority throughout the organization. • Map processes to make them visible. • Benchmark against customer requirements and competitors' capabilities

There are several key steps that are critical to creating a supply chain flexibility culture, which?

information, physical, financial

There are three distinct flows and value-added activities that define every process: an _____ flow, a _____ flow, and a _____ flow

A) competencies

To deliver unsurpassed customer value, companies must develop unique __________, relying increasingly on capable SC partners. A) competencies B) suppliers C) customers D) processes

process mapping

Traditional _____ may vary in focus from very narrow processes to mapping the entire supply chain

functional

Traditional organization structures typically drive _____ thinking—managers begin to see the world from a narrow, functional perspective, acting as if their function were the company

True

True or False? A process view of the company links systems thinking to strategy so that all of the company's functional and resource decisions are consistently focused on achieving the company's most important objectives.

False

True or False? A supply chain is made up of a series of linked company-level value chains that provide only products (never services) to their customers

False

True or False? A supply chain phenomenon "The Bullwhip Effect" occurs as the result of a well planned, well communicated coordinated management effort throughout the supply chain membership

True

True or False? A typical cost reduction technique employed by a manufacturer is to improve the productivity of their manufacturing processes.

False

True or False? A value proposition is something the company is so good at that it provides the company a competitive advantage.

True

True or False? As important as it is, few companies have mastered the new product development process.

True

True or False? As taught in any basic marketing class, the marketing mix is made up of four Ps: product, price, place, and promotion.

True

True or False? At world class companies, education and training are the foundation for successful human resource policies.

False

True or False? Because costly misunderstandings almost never occur with upstream suppliers, the NPD team need not include key suppliers of inputs and services.

True

True or False? Before processes can be managed effectively up and down the supply chain, they must be managed well inside the focal firm

True

True or False? Best-in-class companies manage quality and achieve a very low defective parts per million.

True

True or False? Cash also flows out to repay investors with dividends and creditors.

True

True or False? Core competencies are rare and very hard for competitors to copy.

False

True or False? Cost management and product development beyond the concept stage are also marketing's areas of expertise.

False

True or False? Customer empowerment means that businesses up and down the supply chain must decrease their ability to deliver value

True

True or False? Customer satisfaction initiatives that focus too much on what has worked in the past leave the supply chain vulnerable to the dynamics and competition of a global marketplace.

False

True or False? Defining the system boundaries is a prerequisite to identifying the process goal.

True

True or False? EVA gives a longer-term perspective on whether a project is generating or destroying the firm's value over the project life cycle.

True

True or False? Every process consists of a set of identifiable flows and value-added activities that are comprised of information flow, physical flow and financial flow.

True

True or False? Every system has constraints that limit available decision-making options.

True

True or False? Excessive change can become a "habit" that does not add value, but adds unnecessary complexity and risk.

False

True or False? Explicitly focusing on downstream requirements can increase risks in the development and introduction process.

True

True or False? Fast, reliable delivery requires the reduction of order cycle time and the elimination of variability.

True

True or False? Finance and accounting are the firm's scorekeepers. They communicate performance results throughout the organization and to the outside world.

False

True or False? Flexibility is a supply chain strategy that is often avoided since it requires increases in capital and people.

True

True or False? Globalization has increased factor mobility and market access, requiring local companies to match the cost position of global rivals who often possess low-cost labor advantages.

False

True or False? Good marketing, advertising, and a sharp Web site can sell a product with little apparent value.

False

True or False? In order to identify a core competency, two questions should be asked: "What are we known for that makes us uniquely good?" and "What do we do as good as anyone else?"

True

True or False? In well-managed customer-of-choice relationships, information systems of the supplier and customer are linked to enable real-time information exchange on inventory levels, order status, and future demand.

False

True or False? Industrial organization theory suggests that supplier and technology forces should drive corporate strategic decision-making

False

True or False? Innovation requires a company to develop a product or process attribute that reduces price sensitivity.

True

True or False? Leading companies have found that shared information, the elimination of restrictive work rules, and proactive measurement enable cost, quality, flexibility, delivery, and innovation to work together to move businesses forward to a stronger competitive position.

False

True or False? Logistics acquires the right materials at the right price for use in operations. The goal is to select the right suppliers and then build the right relationships with them.

True

True or False? Meeting customer expectations requires a shift from a functional organization to a process orientation.

False

True or False? New product development exists only as a function in many organizations.

Value stream mapping

_____ is an application of process mapping, developed to apply lean principles to process improvement

D) 2nd tier supplier

Typical members of an internal value chain of a business include all of the following except: A) Finance B) Logistics C) Supply Chain Management D) 2nd tier supplier

A) customers

Understanding your _______ and positioning the total package to meet their needs is critical to customer loyalty. A) customers B) suppliers C) competitors D) products

D) SC Complexity

Unfortunately, many potentially detrimental decisions go undiscovered, hidden by ________. A) management B) marketing C) profits D) SC Complexity

B) lean

Value stream mapping is an application of process mapping, developed to apply ________ principles to process improvement. A) management B) lean C) supply chain D) cycle time

B) future ideal

Value stream mapping shows the current state of a process as well as the ________state. A) temporary B) future ideal C) modified D) previous

A) service gaps

When managers emphasize efficient operations over appropriate customer satisfaction requirements, discrepancies in service quality can lead to__________ A) service gaps B) customer feedback C) higher operating costs D) higher fill rate targets

B) customer focus

What key element of a business enables the business defines its value propositions and drives competency development? A) strategic plan B) customer focus C) core competency D) systems thinking

D) life cycle cost

When TCO (Total Cost of Ownership) analysis is used for a project where costs are incurred over a period of time, the process is also known as a/an _________ analysis. A) expected value B) target cost C) technical D) life cycle cost

C) tradeoffs between cost and efficiency

When cultivating "Systems Thinking" and promoting organizational transformation, managers need to recognize and understand all of the following elements for managing a supply chain except _______. A) A holistic view of company organization B) information availability and accuracy C) tradeoffs between cost and efficiency D) performance measurement

Relationship alignment, information sharing, performance measurement, and people empowerment

When designing a supply chain strategy, there are four key factors to consider for a successful implementation, which ones?

D) the purchase commodities candidates

When designing supply chains and following the identification of customers and establishing value propositions, the next three decisions considered are all of the following except _______. A) who will manage the network B) the structure of the membership's relationships C) the membership of the supply network D) the purchase commodities candidates

B) benchmark the performance of the competition

When developing customer satisfaction strategies, customer feedback helps managers with all of the following except: A) align measures to customer expectations B) benchmark the performance of the competition C) allocate resources and reevaluate priorities D) adopt new customer satisfaction policies or practices

Value stream mapping

_____ is a specific application of process mapping, based on lean manufacturing principles

B) employee training, measurement, empowerment and policies

Which of the following are the top four causes of customer fulfillment dissatisfaction? A) employee training, budget constraints, policies and customer expectations B) employee training, measurement, empowerment and policies C) employee training, measurement, policies and customer expectations D) employee training, budget constraints, customer expectations and policies

D) eliminate functions that are the responsibility of other organizations

Which of the following steps is not the approach to supply chain design that would support the SCOR model? A) analyze the basis for competition B) configure the supply chain as it is (current) and the ideal C) align performance levels, practices, and systems across information and work flows D) eliminate functions that are the responsibility of other organizations

B) meet the customer's needs

While the team is working on cost management activities, it must keep in mind that the new product it is creating must __________. A) be inexpensive B) meet the customer's needs C) have the highest quality D) be technically excellent

Customer relationship management

_____ (CRM) software has increased the sophistication of customer segmentation by incorporating data-capturing, storage, and analysis capabilities to help companies create customer profiles

Features

_____ are the "bells and whistles" or extras that distinguish a product from competitors' offerings

Process mapping

_____ can help managers understand how a process operates and how to improve it

Perceived quality

_____ deals with overall perceptions of a product or brand's quality reputation

Aesthetics

_____ deals with perceptions of fit and finish or artistic value

Process mapping

_____ identifies individual activities, their specific roles, the people involved, and critical performance dimensions such as time taken by each step of a process and can be used to make the process visible so that it can be redesigned

D) core competency

________is the collective learning in the organization, especially how to coordinate diverse production skills and integrate multiple streams of technologies. A) innovative constraint B) second tier competency C) corporate skill D) core competency

B) Supply chain management

________is the design of seamless value-added processes across organization boundaries to meet the real needs of the end customer. A) Operations B) Supply chain management C) Process engineering D) Value charting

A) Process reengineering

________is the radical redesign of business processes made possible by systems think and improved information technology. A) Process reengineering B) Produce design C) Project management D) Development engineering

A) SWOT

_______analysis often accompanies scanning efforts. A) SWOT B) Pareto C) Strategic D) Organizational