Production & Operation Management Chapter 4

Scalability is a key issue in e-commerce. a. True b. False

a. True

_____ can be used to design, analyze, test, simulate, and manufacture products before they physically exist, thus ensuring that a product can be manufactured to specifications when it is released to the shop floor. a. Customer relationship management (CRM) systems b. Flexible manufacturing systems (FMSs) c. Computer-aided engineering (CAE) systems d. Computer-aided manufacturing (CAM) systems

c. Computer-aided engineering (CAE) systems

_____ allows all parts of the value chain to immediately recognize and react to changes in demand and supply. a. Super-precision manufacturing b. Rapid prototyping c. Descriptive analytics d. Electronic transaction capability

d. Electronic transaction capability

_____ is a phenomenon by which the same or an increased quality and quantity of goods and/or services are created using fewer natural resources. a. Dematerialization b. Intermediation c. Demassification d. Globalization

a. Dematerialization

If an organization establishes a business where the incremental cost to serve more customers is zero, then the firm is said to have _____. a. infinite scalability b. high scalability c. zero scalability d. low scalability

a. infinite scalability

Which of the following is an example of hard technology? a. Database systems b. Voice-recognition programs c. Artificial intelligence programs d. Radio-frequency identification tags

d. Radio-frequency identification tags

__________consist of two or more computer-controlled machines or robots linked by automated handling devices such as transfer machines, conveyors, and transport systems.a. Computer-aided design (CAD) systemsb. Enterprise planning systems (EPSs)c. Computer-aided engineering (CAE) systemsd. Flexible manufacturing systems (FMSs)

Flexible manufacturing systems (FMSs)

Which of the following is true of customer relationship management (CRM)? a. A typical CRM system includes market segmentation and analysis. b. It helps firms gain competitive advantage by making counterfeit knock-offs of genuine products. c. It encourages the production of standardized goods for all customers to reduce manufacturing costs. d. A CRM system prohibits firms from bundling goods and services together.

a. A typical CRM system includes market segmentation and analysis.

__________refers to equipment and devices that perform a variety of tasks in the creation and delivery of goods and services. a. Hard technology b. A database system c. A neural network d. Soft technology

a. Hard technology

Which of the following is true of nanotechnology? a. It can be used to develop faster computer processing. b. It can be used to segment markets based on demographic characteristics. c. It can be used to forecast customer retention and defection rates. d. It can be used to learn more about customers' wants, needs, and behaviors.

a. It can be used to develop faster computer processing.

Which of the following is a challenge of adopting technology? a. It leads to information overload. b. It results in poor productivity and quality. c. It decreases the speed and flexibility of processes. d. It deteriorates the standard of living of the world.

a. It leads to information overload.

__________machine tools enable the machinist's skills to be duplicated by a programmable device that controls the movements of a tool used to make complex shapes.a. Numerical control (NC)b. Revision control (RC)c. Movement control (MC)d. Virtual control (VC)

a. Numerical control (NC)

Identify a benefit of adopting technology. a. Technology helps restructure old and less productive industries. b. The use of technology increases opportunities for employee empowerment. c. Technology increases opportunities for employee creativity. d. The use of technology does not require adherence to any laws or regulations.

a. Technology helps restructure old and less productive industries.

Which of the following is a challenge of adopting technology? a. Technology leads to job shift and displacement. b. The use of technology reduces product quality. c. Technology deteriorates the standard of living of the world. d. The use of technology disintegrates supply and value chain players.

a. Technology leads to job shift and displacement.

Which of the following is true of radio-frequency identification (RFID) tags? a. They can bring visibility and enhanced security to the handling and transportation of products. b. They are used to segment markets based on demographic and behavioral characteristics. c. They are used to create customized goods and services and deliver them faster at lower prices. d. They can help small companies create counterfeit knock-offs of genuine products.

a. They can bring visibility and enhanced security to the handling and transportation of products.

Which of the following statements is true of radio-frequency identification (RFID) tags? a. They can help identify genuine products from counterfeit knock-offs. b. They are designed to learn more about customers' wants, needs, and behaviors. c. They help firms gain competitive advantage by forecasting customer retention rates. d. They help identify which customers should be the focus of targeted marketing initiatives.

a. They can help identify genuine products from counterfeit knock-offs.

Amigo, a matrimonial website, is essentially information intensive. It allows people to create an account for free and post information about themselves on the site. Amigo does not incur much cost to extend its services to new customers. Given this information, Amigo is most likely to: a. have fixed costs that constitute approximately 80 to 85 percent of total costs. b. earn very low revenue from additional customers. c. have variable costs that comprise about 80 to 85 percent of total costs. d. have extremely high incremental costs.

a. have fixed costs that constitute approximately 80 to 85 percent of total costs.

For an operations manager, the process of designing the sociotechnical system includes: a. making decisions about job specialization versus enlargement. b. segmenting markets based on demographic and behavioral characteristics. c. protecting customers' privacy and security. d. tracking sales trends and advertising effectiveness.

a. making decisions about job specialization versus enlargement.

_____ represent the union of hardware, software, database management, and communications to automate and control production activities, from planning and design to manufacturing and distribution. a. Event-driven marketing systems b. Computer-integrated manufacturing systems c. Enterprise resource planning systems d. Customer relationship management systems

b. Computer-integrated manufacturing systems

Low scalability implies that serving additional customers requires low incremental variable costs. a. True b. False

b. False

Which of the following is true of microprocessor-based information and communication technology (ICT)? a. It has negatively impacted the sustainability of firms. b. It has led to the phenomenon of dematerialization. c. It has disabled flexible work options, which has resulted in low productivity. d. It has reduced operational and material efficiencies of firms.

b. It has led to the phenomenon of dematerialization.

Which of the following is a benefit of using technology? a. It increases the number of human service providers in firms. b. It increases quality and productivity of firms. c. It increases opportunities for employee empowerment. d. It makes it easy for customers to change decisions and return goods.

b. It increases quality and productivity of firms.

__________refers to using the Internet and technology to provide facilities that create and deliver time, place, information, entertainment, and exchange value to customers and support the sale of goods. a. Outsourcing b. Offshoring c. E-service d. E-readiness

c. E-service

Which of the following is a difference between firms that have high scalability and firms that have low scalability? a. Firms with high scalability incur extremely low fixed costs, whereas firms with low scalability incur extremely high fixed costs. b. Firms with high scalability have variable costs as 80 to 85 percent of total costs, whereas firms with low scalability have variable costs as zero to five percent of total costs. c. Firms with high scalability serve additional customers at extremely low incremental costs, whereas firms with low scalability serve additional customers at high incremental variable costs. d. Firms with high scalability have a low contribution margin, whereas firms with low scalability have a high contribution margin.

c. Firms with high scalability serve additional customers at extremely low incremental costs, whereas firms with low scalability serve additional customers at high incremental variable costs.

Valuetronics, an electronics company, is currently in the preproduction stage of launching one of its new stereo systems. In order to analyze the feasibility of the product, Valuetronics adopts an integrated system that allows it to manufacture the product before it physically exists, that is, the system allows Valuetronics to finalize the design of the stereo, analyze it, and do a test-run. In this context, Valuetronics is using a(n) _____. a. enterprise resource planning (ERP) system b. flexible manufacturing system (FMS) c. computer-aided engineering (CAE) system d. computer-aided manufacturing (CAM) system

c. computer-aided engineering (CAE) system

Customer relationship management (CRM) can be used to: a. merge all demographic-based segments of markets. b. encourage the production of standardized goods for all customers to reduce manufacturing costs. c. identify which transactions are likely to be fraudulent. d. help firms gain competitive advantage by making counterfeit knock-offs of genuine products.

c. identify which transactions are likely to be fraudulent.

Customer relationship management (CRM) helps firms gain and maintain competitive advantage by: a. encouraging them to produce standardized goods. b. merging all demographic-based and behavior-based segments of markets. c. studying which goods and services are purchased together. d. prohibiting them from bundling goods and services together.

c. studying which goods and services are purchased together.

Which of the following is a benefit of adopting technology? a. It becomes easy to protect customers' privacy and security. b. It increases the number of human service providers. c. It increases opportunities for employee creativity. d. It raises the standard of living of the world.

d. It raises the standard of living of the world.

__________refers to the application of the Internet, computer programs, and information systems to provide data, information, and analysis to facilitate the creation and delivery of goods and services.a. Assistive technologyb. Adaptive technologyc. Hard technologyd. Soft technology

d. Soft technology

A(n)__________is an example of soft technology.a. radio-frequency identification tagb. bar-code scannerc. image sensord. database system

d. database system

In the context of technology in value chains, customer relationship management (CRM): a. enables small firms to make counterfeit knock-offs of genuine products. b. prohibits firms from bundling goods and services together. c. encourages firms to produce standardized goods for all consumers to reduce manufacturing costs. d. exploits the vast amount of data that can be collected from consumers.

d. exploits the vast amount of data that can be collected from consumers.

We Create Inc. is an electronics company. It designs, produces, and assembles desktop gadgets. The entire process is controlled by programmable robots, which are in turn linked to computers. These computers direct the robots to the appropriate task. In this context, We Create Inc. uses a(n) _____ to produce its goods. a. partner relationship management system b. enterprise resource planning system c. employee experience management system d. flexible manufacturing system

d. flexible manufacturing system

Customer relationship management (CRM) helps firms gain and maintain competitive advantage by: a. encouraging firms to produce standardized goods for all customers. b. merging all demographic-based and behavior-based segments of markets. c. prohibiting firms from bundling goods and services together. d. forecasting customer retention and defection rates.

d. forecasting customer retention and defection rates.

First Light, an online news portal, earlier provided its services in Asia and Africa. It recently extended its services to North and South America. This move proved very successful as First Light experienced substantial increase in revenues at very low additional costs. In this scenario, First Light is most likely to have _____. a. zero scalability b. low scalability c. infinite scalability d. high scalability

d. high scalability

The fixed costs of WeBuy&Sell.com, an e-commerce website, make up about 90 percent of the total costs incurred by the company. However, since its primary means of communication is web advertising, WeBuy&Sell.com has variable costs as low as 10 percent of its total costs. This allows WeBuy&Sell.com to earn high profits at a very low cost. According to the given scenario, WeBuy&Sell.com has _____. a. zero scalability b. low scalability c. infinite scalability d. high scalability

d. high scalability

In the context of technology decisions and implementation, the interaction of technology, people, and processes is called _____. a. the automation revolution b. a value stream c. a lean operating system d. the sociotechnical system

d. the sociotechnical system