Module 11: Organizing for Long-Term Success

Which of the following are types of products that are produced through mass customization?

- Automobiles - Clothes - Computers

The basic technologies for processing include which of the following?

- Continuous process - Small batch - Large batch

In organizations that use lean manufacturing, the emphasis on quality, speed, and flexibility is greater than the emphasis on which of the following?

- Cost - Hierarchy -Efficiency

__________ management is a way of managing in which the organization is committed to continuous improvement of a product or service.

Total quality

Lean manufacturing strives for high quality, speed, and __________.

flexibility

Deming's 14 points of quality emphasized a _________ approach to management.

holistic

A system that calls for subassemblies and components to be manufactured in very small lots and delivered to the next stage of the production process just as they are needed is __________.

just-in-time (JIT) operations

Companies are able to mass customize products by organizing around independent operating units, called _________, that perform specific processes or tasks.

modules

W. Edwards Deming was a founder of the __________ management movement.

quality

The methods, processes, systems, and skills used to transform resources (inputs) into products (outputs) are known as _________.

technology

Sookie has worked diligently to re-orient the managers of her company toward involving people in improving all aspects of the business. Sookie's company is practicing _________.

total quality management

ISO 9001 is a series of __________ standards developed by a committee working under the International Organization for Standardization.

voluntary quality

A centralized company with a mechanistic structure and many rules and formal procedures typically uses _________ technology.

large batch

McDonald's and Burger King have production processes that tend to be very standardized, with all customers receiving similar if not identical products. They are examples of companies that use ________.

large batch technology

The __________ approach to manufacturing relies on having broadly trained employees, general-purpose equipment, and long-term, cooperative supplier relationships.

lean

An operation that achieves increased efficiency while simultaneously improving effectiveness is referred to as __________.

lean manufacturing

A firm wishing to be a true __________ organization should have people who engage in disciplined thinking.

learning

A small office with one physician, one nurse, and one bookkeeper would be an example of a ________.

small batch organization

Which of the following are some of the standards of management set by ISO 9001?

- System approach to management - Customer focus - Continual improvement

Flexible factories, in contrast to traditional factories, are characterized by __________.

-Local or decentralized scheduling - Organization around products, work cells, or teams

Which of the following is NOT a way that managers should manage core capabilities so the firm keeps a competitive advantage?

Set goals for profit maximization

__________ engineering is used to accelerate the pace of research and product development within the organization.

Simultaneous

__________ is a team-based approach that incorporates perspectives of all functions, resulting in a higher-quality product.

Simultaneous engineering

Which of the following statements about the three types of technology configurations is true?

They are equally useful for describing service or manufacturing technologies.

True or False: Companies should commit to excellence and leadership in capabilities before they commit to winning market share for specific products.

True

True or False: Strategic alliances allow participants to respond to customer demands or environmental threats faster and less expensively than on their own.

True

Organizing around core competencies, learning organizations, and strategic alliances are three strategies that enable organizations to be more __________.

agile

Managers who want to strengthen their firm's __________ can do so by focusing on issues surrounding the firm's core capabilities.

competitiveness

The use of computer-aided design and computer-aided manufacturing to sequence and optimize a number of production processes is called _________.

computer integrated manufacturing

CLM Technologies Inc. manufactures two products, and the production process is fully automated so that no human workers are on the factory floor. The factory runs 24 hours a day. This is an example of ________.

continuous process technology

A strategy for enabling a firm to be responsive and competitive is developing leadership in its __________.

core capabilities

Before a company can win market share, it must commit to excellence and leadership in its __________.

core capabilities

When managers accumulate the right resources, combine them in ways that give the organization capabilities, and leverage or exploit their resources, they are managing __________.

core capabilities

A company's knowledge, expertise, and skills that underlie its ability to be a leader in providing a range of specific goods and services is its __________.

core capability

Frasier Industries has knowledge, expertise, and skill in producing surgical needles that allow the company to be a leader in the surgical needle market. This ability to lead in the industry is called a __________.

core capability

Six sigma product defects include all the following EXCEPT _________.

deficient corporate culture

Oscar, the CEO of an international Internet security company, seeks input from his top management team and from lower levels of the company about the direction the company should take. By doing this, Oscar is building a __________.

high-involvement organization

A decentralized organizational structure in which low-level employees have a direct relationship with customers and are held accountable for a good or service delivery is a(n) __________-__________ organization.

high; involvement

Companies that provide goods and services in very low volume, such as restaurants or doctors' offices, are called _________.

job shops

An operation that strives to achieve the highest possible productivity and total quality by eliminating unnecessary steps in the production process and continually strives for improvement is termed __________.

lean manufacturing

In order to increase efficiency and reduce spending, city planners in Irving, Texas employed __________ analysis to reduce the time taken to make street repairs by more that 50 percent.

lean six sigma

The approach that combines six sigma quality improvement techniques with initiatives that eliminate waste in time, complex processes, and materials is called __________.

lean six sigma

Strategies that help a firm to respond quickly to challenges are based on the firm's core competencies, strategic alliances, ability to __________, and to engage employees in achieving its objectives.

learn

Lauren's Linens is able to produce a wide variety of linens, allowing customers to select special features for their particular orders while still maintaining the low cost of a standardized, mass-produced product. Lauren's Linens is taking advantage of _________.

mass customization

Successfully developing leadership in core capabilities can increase a company's __________ and competitiveness.

responsiveness

Managers must usually restructure their internal processes and relationships with customers in fundamental ways to achieve __________ quality.

six sigma

A __________ is a formal relationship created with the purpose of joint pursuit of mutual goals.

strategic alliance

The systematic application of scientific knowledge to a new product, process, or service is called __________.

technological innovation

An organization skilled at creating, acquiring, and transferring knowledge, and at modifying behavior to reflect new knowledge is a __________ organization.

learning

Learning organizations are good at __________.

learning from prior experiences

The use of __________ is an important characteristic that makes traditional factories different from flexible factories.

longer production runs

With six sigma, the product or process is defect-free __________ of the time.

99.99966%

True or False: To engage in mass customization successfully, all necessary tasks and processes (modules) must be completed by units within the organization.

False

The benefits of CIM include which of the following?

- Reduced waste - Production of high-variety products in high volume - Greater control and predictability of production process

A high-involvement organization exhibits all the following characteristics EXCEPT __________.

a tall organizational structure

If one of the partners has expertise in technology or specific market segments, an alliance may eliminate the need to hire __________.

experts

Standardizing the processes to reach the lowest practicable level of any cause of customer dissatisfaction is one component of __________.

six sigma quality

Organizations with an organic structure and relatively few rules and formal procedures are generally _________ companies.

small batch

Companies create formal relationships called strategic alliances with which of the following?

- Governmental bodies - Universities - Their competitors

Managers who wish to strengthen their firm's core capabilities should focus on __________.

- Identifying existing core capabilities - Acquiring or building competencies for the future - Investing in core capabilities to remain better than competitors - Extending capabilities for future applications

A firm wishing to be a true learning organization should do which of the following?

- Search constantly for new knowledge and ways to apply it - Review successes and failures for deeper understanding - Have people who engage in disciplined thinking

In addition to emphasizing quality, speed, and flexibility, which of the following accurately describes lean manufacturing?

- Strives to achieve the highest possible productivity - Focuses on cutting costs where appropriate - Strives for total quality

For the lean approach to be effective for an organization, what are key conditions that need to be met?

- Supplier relationships need to be long term and cooperative - Communication among line workers is informal and horizontal - Equipment is general-purpose

Which of the following are characteristics of organizations that use continuous process technologies?

- They have a relatively organic structure - Machines and computers do all the work

True or False: In a high-involvement organization, top management makes all company decisions.

False

A network of national standards institutions from more than 150 countries developed a series of voluntary quality standards known as _________.

ISO 9001

In JIT operations, what happens when a customer places an order?

It triggers a factory order and the production process.

Which principle of ISO 9001 focuses on establishing a vision, goals, and trust while providing employees with both the resources and inspiration to meet their goals?

Leadership