C720 All Unit Quizzes - Operations and Supply Chain Management

Nikon is seeking a competitive advantage and mass market appeal for its latest compact digital camera. Which combination of quality and cost would be best for Nikon? -High quality, low cost -Low quality, high cost -Low quality, low cost -High quality, high cost

High quality, low cost

Which aspect of a Hyundai Sonata best illustrates the reliability dimension of product quality? -10-year powertrain warranty -185-hp engine -Side-impact airbags -LED interior lights

10-year powertrain warranty

True or false? As manufacturing processes became more automated in the early 1900s, more job opportunities became available in the service sector, which improved the overall standard of living in the U.S.

True

Which of the following best describes a competitive advantage? -A firm's ability to manage the triple bottom line in an effective manner -A capability valued by customers that gives a firm an edge over its rivals -The difference between the lowest cost producer and the next-lowest cost producer -A firm's sales divided by the sales of all companies in the same industry

A capability valued by customers that gives a firm an edge over its rivals.

In terms of a SWOT analysis, which of the following best describes a strength? -A characteristic that makes a product unique in comparison to the competition -An advancement in technology that a firm discovers and implements -A component in the external environment that provides a firm with an advantage -An element of a project that a firm can exploit to its financial advantage

A characteristic that makes a product unique in comparison to the competition

Which of the following is an example of an internal failure cost? -An electronics company repairing a TV under warranty -A restaurant discarding spoiled dairy products -A hotel chain distributing customer satisfaction surveys -A bank providing on-the-job training to new employees

A restaurant discarding spoiled dairy products

After comparing different sedans, Tanya purchases a Toyota Camry instead of a Honda Accord because she prefers the appearance of the Camry. Tanya makes her decision based on the ___________ dimension of quality. -Aesthetics -Features

Aesthetics

Operations managers at Putnam Computers directly facilitate the achievement of organizational goals by -developing new products -allocating financial resources

Allocating financial resources

Operations managers primarily help a firm implement a strategy by -establishing benchmarks -allocating resources -developing marketing plans -gathering customer input

Allocating resources

Which statement about the relationship between strategy and operations is most likely true? -Operations strategies and organizational strategies should be separate considerations. -An organization's long-term strategy should be based on competitors' operations strategies. -Operations strategies form the basis of effective organizational strategies. -An operations strategy should develop from an organization's overall strategy.

An operations strategy should develop from an organization's overall strategy

________ are incurred when a company evaluates customer satisfaction. -Appraisal costs -Prevention costs -External failure costs -Internal failure costs

Appraisal costs

Managers at Johnson Computers want to understand the expectations that customers have about their products. What is the first step the firm should take to accomplish this goal? -Asking customers what they want in a product -Testing new product ideas on customers -Determining the most effective product supply chain -Manufacturing quality products for customers

Asking customers what they want in a product

During a routine physical exam, Dr. Dodd politely answers Mark's questions about heart disease. Dr. Dodd discusses the benefits of exercise and a healthy diet as well as medications that are available to prevent heart disease. Dr. Dodd seems confident and knowledgeable. Which service quality dimension does this example best illustrate? -Reliability -Assurance -Conformance -Empathy

Assurance

In order to develop a competitive advantage, satisfy customers, and achieve organizational success, a firm should focus on -business processes -niche marketing

Business processes

Which term refers to a capability valued by customers that enables a firm to improve its profitability? Market share Competitive advantage Relative advantage Sustainability

Competitive Advantage

Organizational performance can always be better according to the philosophy of ____________ -quality function control -continuous improvement

Continuous improvement

Country X produces toys for the global market better than Country Z. However, Country Z produces appliances better than Country X. Given this information, which statement is most likely true? -Country Z should import toys and export appliances because it has a relative advantage in appliance production. -Country X should import toys and export appliances because it has a relative advantage in toy production. -Country X should import appliances and export toys because it has a relative advantage in appliance production. -Country Z should import appliances and export toys because it has a relative advantage in toy production.

Country Z should import toys and export appliances because it has a relative advantage in appliance production.

What is most important in the strategic planning process? -Developing supplier relationships for measuring synergy -Producing goods in large quantities for key customers -Gathering customer feedback about marketing efforts -Creating action plans for accomplishing organizational goals

Creating action plans for accomplishing organizational goals

Modern companies that rely on a philosophy of total quality management (TQM) primarily use _____________ to measure quality. -Management intuition -Customer feedback

Customer feedback

A firm's order fulfillment process is successful when a ________. -customer is satisfied with the product -product is delivered in a timely manner -customer purchases multiple products -product order is easily placed

Customer is satisfied with the product

If a firm measures quality from an external orientation, which of the following is most relevant? -Product specifications -Proper procedures -Customer needs -Corporate values

Customer needs

The primary reason for the success of Office Solutions, an office supply company, is the firm's ability to deliver office supplies to clients within 24 hours of orders being placed. Which statement best explains the competitive advantage of Office Solutions? -Customers value Office Solutions' quick response to their needs. -Office Solutions offers mass customization to business customers. -Customers appreciate Office Solutions' personal, post-sale service. -Volume effectiveness is important to Office Solutions' customers.

Customers value Office Solutions' quick response to their needs

How do firms primarily benefit from having more cross-functional teams? -Top-level strategies are communicated more clearly through teams than through functional departments. -Effective decisions occur because every organizational department is responsible for its own success or failure. -Decision making improves because team members share knowledge and understand the needs of the firm. -Ineffective team members are quickly identified and replaced, which saves the organization money.

Decision making improves because team members share knowledge and understand the needs of the firm.

What is the likely result of aligning a firm's operational plans with its strategy development plans? -Developing organizational synergy -Identifying organizational strengths -Providing mass customization -Clarifying customer needs

Developing organizational synergy

Dr. W. Edwards Deming developed 14 points for the transformation of management. Which of the following is one of Deming's points? -Eliminate costly employee education programs -Eliminate management by numbers and management by objective -Award supplier contracts based solely on input costs -Establish regular quality inspections

Eliminate management by numbers and management by objective

Which quality management strategy involves giving decision-making authority to front-line workers? -Quality function deployment -Continuous improvement -Employee empowerment -Employee benchmarking

Employee empowerment

Through effective operations management, a company improves customer value by -increasing profit margins -identifying a product strategy -lengthening the supply chain -enhancing product quality

Enhancing product quality

E-Z Delivery Service, a local delivery company, is replacing its fleet of large delivery vans with minivans that are less expensive and use less fuel. Based on the triple bottom line, this decision by E-Z Delivery Service addresses -environmental viability and profitability -profitability and employee wellness

Environmental viability and profitability

True or False. According to Dr. W. Edwards Deming, in a manufacturing environment, quality improves when management establishes very specific work quotas.

False

True or False. According to Genichi Taguchi, high levels of quality are achieved when a company closely inspects products after they are manufactured and before they are sold to customers.

False

True or False. For the benchmarking process to provide useful information, the two companies being compared must be direct competitors in the same industry.

False

True or False. In an organization that fully implements total quality management, the quality control department maintains sole responsibility for product and service quality.

False

True or False. Joseph Juran asserted that quality is based on four components: quality improvement, quality control, quality planning, and quality circles.

False

True or False. When collecting data for statistical process control, a histogram is the primary tool for recording raw data at the location where data is generated.

False

True or False? Although consumers and organizations benefit from the improved efficiency and lower product costs that result from team-oriented operations, teamwork typically results in fewer job opportunities and lower wages for an organization's employees.

False

True or False? Due to the pressure to compete globally, an increasing number of firms are changing their organizational structures. Instead of being organized by business processes, more firms are being organized by business functions.

False

True or False? Operations managers rarely become involved with worker safety or environmental pollution complaints because such ethical issues are only handled by organization's legal department.

False

True or false? Any organization that adheres to the universal set of customer requirements will develop a competitive advantage and succeed in its industry.

False

True or false? As indicated with flat-screen televisions, when a firm makes improvements to product quality, product costs increase significantly.

False

True or false? When developing systems to produce goods and services, firms must assemble the necessary internal resources, such as employees and equipment. At this stage, organizations should avoid using external resources to ensure the protection of product ideas.

False

Which ethical issue would impact an operations manager the most? -Faulty worker safety gear -Unfair pricing practices -Incorrect marketing materials -Illegal real estate transactions

Faulty worker safety gear

What is a characteristic of an organizational structure based on business processes? -Having responsive functional silos -Determining reasonable benchmarks -Focusing on customer needs -Making decisions slowly

Focusing on customer needs

Which of the following is primarily attributed to Joseph Juran? -Stressing that quality requires the elimination of all errors -Emphasizing the need to design quality into products -Developing a "fishbone" diagram to identify quality -Focusing on customers by describing quality as "fitness for use"

Focusing on customers by describing quality as "fitness for use"

Which of the following is an activity of both service producers and goods producers? -Separating production from consumption -Managing a finished goods inventory -Focusing on product improvement -Selling high-quality, tangible products

Focusing on product improvement

Awesome Pizza uses an internally oriented definition of quality. Which question is most relevant to an Awesome Pizza manager when conducting a monthly quality assessment? -Which pizza toppings were most requested? -Which pizza deals are most popular? -What time of day do most pizza orders occur? -How many pizzas are delivered on time?

How many pizzas are delivered on time?

When a firm is developing a system to manufacture a product, ________ is/are essential for making the system work. -customer preferences -distribution methods -research and development -human resources

Human resources

Benson Manufacturing defines quality from an external perspective. In order to create a quality product, what should Benson do first? -Identify customer expectations -Establish product specifications -Implement quality function deployment -Develop unique product attributes

Identify customer expectations

The primary reason that many firms are shifting to leaner organizational structures is to -improve decision making -provide customer value -reduce payroll expenses -comply with federal laws

Improve decision making

Which statement best explains the value of operations management? -Operations management ensures that outputs are worth less to consumers than the total cost of inputs. -Improved organizational efficiency enables organizations to invest in product improvements and innovations. -Consumers will pay more for finished goods from organizations that address customer service in their operations management strategy. -The value chain of services and goods that delivers products to consumers is interconnected for the purpose of efficiency.

Improved organizational efficiency enables organizations to invest in product improvements and innovations.

Which statement about product cost and quality is most likely true? -Low cost, low quality products create the most mass market appeal because quality is less important during difficult economic conditions. -Improvements in product and process technology help firms achieve the best balance of high quality and low cost products. -Consumers are willing to pay more to get more, so the ideal product is of the highest quality and sells for the highest price. -Implementing new technology is the first step a firm should take when seeking to develop the ideal balance of high quality and low cost goods.

Improvements in product and process technology help firms achieve the best balance of high quality and low cost products

If a company's teamwork-oriented operations are managed effectively, what is the likely result? -Increased brand recognition -Decreased workforce size -Increased product sales -Decreased purchasing power

Increased product sales

Operations managers at Lawton Automotive are considering the idea of using robotic arms instead of line workers to install tires on cars during the manufacturing process. What would be the likely result of implementing this process technology? -Increasing production speed -Meeting customer demands -Measuring product performance -Improving product functionality

Increasing production speed

Product characteristics and attributes are the basis for measuring quality if a company has an ________oriented definition of quality. -internally -externally

Internally

Managers at Babson Industries are conducting a SWOT analysis. Which of the following questions will most likely uncover potential threats? -Is technology altering how consumers use Babson products? -What internal issues contribute to Babson losing sales? -What factors make Babson products unique? -Is there an underserved market that Babson could target?

Is technology altering how consumers use Babson products?

By applying current technology to operations management, a firm is most likely able to -understand customer needs and wants -decrease its marketing expenditures -make better products with fewer resources -develop new supplier relationships

Make better products with fewer resources

Executives at Coffman Computers are considering the idea of changing the firm's organizational structure, which is based on functional areas. What would be the primary benefit of Coffman Computers implementing a structure based on business processes -Lowering product distribution costs -Eliminating unnecessary job positions -Identifying potential target markets -Making quicker, better decisions

Making quicker, better decisions

Which statement about product safety is most likely true? -Managerial judgment is often necessary when determining appropriate product safety labels. -Consumer advocacy groups have eliminated the need for government intervention in product safety issues. -Modern managers should view product safety as a government concern rather than an organizational issue. -Product safety oversight is typically stringent in underdeveloped countries due to government laws.

Managerial judgment is often necessary when determining appropriate product safety labels.

According to Joseph Juran, _________ are primarily responsible for ensuring that a company manufactures quality products. -Workers -Managers

Managers

Which statement best explains why companies should probe customers about their product needs? -Most customers are interested in keeping product prices low. -Many customers are highly loyal to name-brand products. -Many customers have unspoken product expectations and desires. -Most customers understand the value-creation chain of products.

Many customers have unspoken product expectations and desires.

Patrick wants a unique pair of basketball shoes, so he goes to the Nike website to design an original pair. Patrick can choose the colors for the exterior material, interior lining, shoelaces, and the Nike swoosh, and he can also have his name embroidered on the shoes. The price of Patrick's special shoes is only slightly more than a basic pair, and the shoes will be delivered to Patrick in a few weeks. What tool is Nike using to gain a competitive advantage? -Volume effectiveness -Order fulfillment -Product development -Mass customization

Mass Customization

Eric purchases a Dell laptop through the Dell website. The laptop is delivered to Eric's home five days later. After using the laptop for a few days, Eric decides he is satisfied with the purchase. Given the information provided, Dell has been successful at ________. -product distribution -online advertising -order fulfillment -inventory control

Order fulfillment

________ refers to obtaining a customer's order, placing the order in the firm's information system, delivering the product, and satisfying the customer with the product. -Operations management -Order fulfillment -Product development -Product distribution

Order fulfillment

Which term refers to the arrangement of formal relationships between a firm's functional areas? -Support system -Business process structure -Operational hierarchy -Organizational structure

Organizational Structure

A sports apparel company promotes the brand image of its products through mass market commercials, team sponsorships, and social media campaigns. On which dimension of product quality is the company focusing? -Perceived quality -Aesthetics -Conformance -Serviceability

Perceived quality

Which component of the Plan-Do-Check-Act cycle involves identifying opportunities for improvement? -Check -Plan -Act -Do

Plan

When customers place product orders at BlueShoes.com, the retailer's computer system requires customers to enter their e-mail addresses twice. If the two addresses match, then a customer is allowed to proceed to the next screen. What cost of quality does this example illustrate? -Prevention cost -Appraisal cost -Internal failure cost -External failure cost

Prevention Cost

Which of the following declined in the U.S. because of improvements in farming methods and machinery in the mid- to late-1800s -Number of service jobs -Price of food -Standard of living -Amount of leisure time

Price of food

A company with an internal orientation towards quality primarily focuses on ________. -product characteristics -customer needs -consumer demands -market expectations

Product characteristics

In the 1950s, Coca-Cola replaced glass bottles with lighter, less costly aluminum cans without changing the taste of the soda. This operations change best illustrates how technology altered Coca-Cola's -Product design -Process design

Product design

Which of the following is calculated by determining the ratio of outputs achieved divided by the inputs consumed to achieve those outputs? -Quality -Competency -Productivity -Flexibility

Productivity

Which statement best explains how productivity affects a nation's standard of living? -Productivity involves less labor and resource usage, which reduces product unit costs. -Productivity causes product demand to shift, which leads to improvements in quality. -Productivity leads to wasted resources, less job creation, and lower wage rates. -Productivity improves overall product and service quality, which promotes price increases.

Productivity involves less labor and resource usage, which reduces product unit costs.

Which statement about productivity is most likely true? -Productivity measurements are more precise than efficiency measurements. -Productivity is a general descriptor of the time needed to perform a task. -Productivity enables a manufacturer to adapt quickly to market needs. -Productivity and efficiency are synonymous terms for the same measurement.

Productivity measurements are more precise than efficiency measurements.

Managers at Taylor Tool Company are using the philosophy of Dr. W. Edwards Deming to improve product quality. As part of the firm's efforts, which of the following actions will most likely be implemented? -Providing on-the-job training to new employees -Establishing numerical goals for employees -Developing an annual rating system for workers -Developing a management by objective program

Providing on-the-job training to new employees

After conducting customer surveys, managers at the national hotel chain, Holiday Hotels, determine that the company needs to improve its service quality, primarily in the area of responsiveness. Which of the following would most likely help the company achieve this goal? -Answering customer questions politely -Offering discounts for online reservations -Updating the appearance of the lobby -Providing room service orders quickly

Providing room service orders quickly

_________________________________refers to a method of transforming customer needs and expectations into product design characteristics. -Poka-yoke -Quality function deployment

Quality function deployment

Which statement best summarizes a key aspect of Taguchi's philosophy about quality? -Quality can improve when a firm considers fitness for use. -Quality variations can be eliminated through robust design. -The formation of quality circles can reduce internal failure costs. -On-the-job training can increase overall product quality.

Quality variations can be eliminated through robust design

What advice about quality control would Philip Crosby most likely give to a manufacturing firm? -Enhance productivity by eliminating department barriers -Improve work standards by providing effective leadership -Reduce failure costs by making products correctly the first time -Eliminate quality variations by investing in product design

Reduce failure costs by making products correctly the first time

Malcolm, an operations manager at Carson Industries, has been assigned the task of implementing the firm's environmental stewardship strategy. Which of the following would be the best way for Malcolm to accomplish this goal? -Reducing energy consumption at Carson manufacturing facilities -Providing environmental policy training to Carson employees -Calculating the cost-benefit ratio of the Carson distribution system -Implementing a quality inspection program for all Carson products

Reducing energy consumption at Carson manufacturing facilities

For the last 20 years, U.S automakers have struggled to compete with their Japanese competitors. The highly effective distribution systems, management practices, and global strategies of Toyota and Honda have allowed these Japanese automakers to develop a _______ in the auto industry. -triple bottom line relative advantage -business process trade agreement

Relative advantage

The difference between the lowest cost producer of a good and the next-lowest cost producer of the same good is known as a(n) -relative advantage -competitive advantage

Relative advantage

Which of the following is LEAST likely to be a characteristic of team problem solving? -Dividing tasks among members -Allowing different perspectives -Resolving issues quickly -Brainstorming a variety of solutions

Resolving issues quickly

Which statement about services providers and goods producers is true? -Some service providers operate like manufacturers because they sell a finished good. -Physical elements are a concern for goods manufacturers but not service providers. -Inventory management is a concern for goods manufacturers but not service providers. -Both service providers and goods manufacturers have finished goods inventories.

Some service providers operate like manufacturers because they sell a finished good.

An organization focused on continuous improvement should engage in ___________, which involves creating preset procedures for job tasks. -Documentation -Standardization

Standardization

_______________ involves using methods and tools to determine the stability of a manufacturing process and reduce the number of product defects. -Quality function deployment -Statistical process control

Statistical process control

In most cases, companies that sell products and companies that sell services both maintain inventories of -supporting goods -finished goods

Supporting goods

refers to the organizational issue of balancing financial profitability with environmental responsibility. -Sustainability -Viability

Sustainability

Paxton has completed the product development process for a new digital camera. Managers are now developing systems to produce the camera. Which of the following is important for Paxton managers to consider during the system development process? -Organizations directly control all aspects of customer satisfaction and systems development. -Operations managers should make every systems development decision. -Synergy occurs in systems development when employees work independently of others. -Systems development tasks should be interdisciplinary to achieve the best results.

Systems development tasks should be interdisciplinary to achieve the best results.

Which of the following best defines productivity? -The ratio of outputs achieved divided by the quality of the outputs -The ability to modify production at minimal cost in response to customer demands -The frequency and degree to which outputs are free of defects -The ratio of outputs achieved divided by the inputs consumed to achieve those outputs

The ratio of outputs achieved divided by the inputs consumed to achieve those outputs

Focus groups enable companies to listen to the voice of the customer and learn about customer needs and expectations.

True

True or False. According to Deming, today's organizations benefit from training employees to use statistical process control tools.

True

True or False. According to Philip Crosby, most firms underestimate their failure costs and would benefit from evaluating all costs of quality.

True

True or False. An auto mechanic who correctly repairs a customer's transmission illustrates the service quality dimension of reliability.

True

True or False. Understanding how customers use products and services helps companies to develop new technologies that improve and achieve external quality.

True

True or False? Organizations with flexible operations respond quickly and inexpensively to the changing needs of customers.

True

True or false. If quality is defined from an external perspective, then a company focuses on identifying and meeting customers' needs.

True

When a firm is trying to develop a competitive advantage, which of the following must occur first? -Creating systems for producing goods and services -Establishing a method for fulfilling customer orders -Understanding customers and the environment -Building quality into final goods and services

Understanding customers and the environment

Executives have implemented a new quality management effort based on the philosophy of Genichi Taguchi. The company is building a manufacturing facility and hiring hundreds of workers to build a new tablet. Which of the following best illustrates the philosophy of Taguchi -Implementing procedures for inspecting and testing AXI tablets to reduce both internal and external costs. -Providing extensive on-the-job training to new employees to improve the quality of AXI tablets. -Developing quality circles that consist of managers and line workers to improve the quality of AXI tablets. -Using production equipment that eliminates variations in the quality of AXI tablets caused by employee errors.

Using production equipment that eliminates variations in the quality of AXI tablets caused by employee errors.

In a SWOT analysis, ______ refer to internal characteristics of a company that could create a disadvantage for the company. -weaknesses -opportunities

Weakness

Which statement best explains how teamwork-oriented operations affect a firm's ability to compete? -Changing technology has driven the need for cooperation between management and labor. -When labor and management work together, a firm's productivity, quality, and sales improve. -By assigning employees to teams, a firm is able to replace full-time workers with part-time workers.

When labor and management work together, a firm's productivity, quality, and sales improve

In his book Quality is Free, Philip Crosby primarily asserts that firms can save money by ________. -increasing prevention costs -reducing failure costs -implementing robust design -assessing fitness for use

reducing failure costs