MGMT Quiz 3

Operational capabilities must be built before a firm should identify competitive priorities.

False ?? ...must be build after a firm...

A value chain describes the flow of customer information and how value is added to the information through a production system.

False, A value chain describes the flow of customer information and how value is added to the product or service through a production system

A vertical integration strategy provides a firm more control and generally reduces the complexity of managing the value chain

False, A vertical integration strategy provides a firm more control and generally keeps the same complexity (it doesn't really go away) when managing the value chain

Employee satisfaction might be considered as a lagging indicator of employee turnover

False, Employee satisfaction might be considered as a leading indicator of employee turnover Employee turnover is a key indicator of employee satisfaction

Employees who work in financial and accounting functions of organizations need little knowledge of operations management

False, Employees who work in financial and accounting functions of organizations should have good knowledge of operations management.

Operations management is focused primarily on the application of technology in manufacturing.

False, Operations management uses the application of technology in manufacturing OR Operations management today often involves the application of technology.

A supply chain is more inclusive than a value chain

False, a value chain is more inclusive than a supply chain

The value chain creation process begins at the retail stores when final goods and services are sold to customers

False, begins with suppliers

Having a large number of performance measures is much better than having a selected few.

False, having too many performance measures is not good, and the performance measure just needs to be relevant- S.M.A.R.T.

The organization that outsources still retains ownership of the outsourced process or function

False, if the organization outsources it does not have ownership of the outsourced process or function

One approach to increasing value is to maintain perceived benefits while increasing price or cost.

False, it decreasing price or cost -increase value, increase perceived benefits,-> hold price/cost constant OR reducing price/cost

A product that typically lasts less than three years is called a durable good.

False, it is a nondurable good

Ensuring that a credit card has accurate customer information and is delivered quickly to the customer is an example of inventory management in OM.

False, it is an example of quality in OM -accurate customer information is not a physical good

Return on assets would normally be classified as a productivity measure

False, it is classified as financial measure or a profitability measure

Customer participation in manufacturing processes and activities is generally high.

False, it is low participation

The only important measurement category in business is financial

False, it is not the only measurement

The customer benefit package that a firm designs is meant to appeal to all customers.

False, it is not usually the case

In the Baldrige Award criteria, the Business Results category focuses on how an organization selects, gathers, analyzes, and manages its data

False, it is the measurement, analysis, and knowledge management category.

The focus on value has forced many traditional goods-producing companies to reduce services for their customer benefits package while keeping the same price.

False, the focus on value has forced many traditional goods-producing companies to add services and increasingly, digital content to their customers benefit package OR-- The focus on value has forced many traditional goods-producing companies to reduce services for their customer benefit package while reducing the price.

Pre-production services might include on-line training services, billing, and warranty service.

False, this is post production services

Post-production services might include customer financing, customer benefit package design, and promotion/advertising.

False, this is pre-production services

The ability to achieve market and financial superiority over competitors is called strategic planning

False; the ability to achieve market and financial superiority over competitors is called competitive advantage

A value chain views an organization from an integrative perspective of goods and services, while a supply chain focuses mainly on the creation of physical goods.

True

Both goods and services can be standardized for the mass market or customized to individual needs.

True

Customers and service providers often work together to co-produce a service.

True

Every job entails some aspect of operations management

True

Good customer satisfaction measurement systems are designed to provide information about future buying behavior.

True

Measuring and reporting performance results can be a motivator for many workers.

True

Proportional increases or decreases in perceived benefits as well as price or cost result in no net change in value

True

The Leadership category of the Baldrige criteria includes how an organization addresses its public and community responsibilities.

True

The balanced scorecard is designed so it's linked to an organization's strategy.

True

The focus of pre-production services is on gaining a customer while that of post-production services is on keeping the customer.

True

The primary purpose of the Baldrige National Award program is to provide companies with a framework for performance excellence through self-assessment.

True

To apply the principles of operations management, managers need to understand people, processes, and technology.

True

Traditional market research may not always provide accurate information about customer needs.

True

Value can be increased by adding services to customer benefit packages even when the quality or features of goods cannot be improved.

True

While it is generally difficult to change the structure of a value chain, operations managers can make strategic choices about technology and human resources.

True

A competitively dominant customer experience is often called a value proposition.

True

A toothbrush is an example of a nondurable good.

True

A value chain can be considered a "cradle-to-grave" model of the operations function.

True

Using the Four Key Decision Loops in Professor Terry Hill's Generic Strategy Framework, which statements are true? a. The four loops are highly integrated and require improvement cycles. b. The fourth loop ties strategy and operations. c. Operations has no input loop into corporate strategy or marketing strategy. d. Infrastructure decisions must come before marketing strategy decisions. e. The first loop ties Operations Design Choices and Infrastructure

a and b are true ??? c. Operations does have a loop.. d. Marketing strategy come before infrastructure decisions e. The first loop ties organization's corporate strategy and marketing strategy.

Which of the following statements about the typical ways of calling those goods and service features that differentiate one customer benefit package from another are incorrect? a. Order Qualifiers are also Exciters. b. Order Qualifiers are also Winners. c. Order Satisfiers, Delighters, and Exciters are different types of Winners. d. Order Winners more than exceed the features needed to be Qualifiers. e. Over time, Order Winners such as Satisfiers, Delighters, and Exciters will become only Qualifiers.

a and b incorrect ??? Order Winners are exciters and winners

Which of the following are not categories in the Baldrige Performance Excellence Model? a. Ethical Focus b. Strategic Planning c. Customer Focus d. Workforce Focus e. Financial Planning

a and e are wrong -Leadership -Strategic Planning -Customer focus -Measurement, Analysis, Knowledge MGMT -Workforce Focus -Operations Focus -Results