(OMS) Chapter 1 Operations and Supply Chain Management

What kind of product is defined by a set of intangible features?

A service

One reason for studying operations and supply chain management (OSCM) is which of the following?

All managers should understand the basic principles that guide the design of transformation processes.

When considering the concept of value, how is quality defined?

By the attractiveness of the product considering its features and durability

Which of the following are defined as core goods?

Data Storage systems

Which of the following is not a measure of operations and supply chain management efficiency used by Wall Street?

Earnings per share

Efficiency means doing the right things to create the most value for the company. (True or False)

FALSE :Efficiency means doing something at the lowest possible cost.

The supply network as can be thought of as a pipeline through which cash, material, and information flows.

FALSE: Think of the supply network as a pipeline through which material and information flows.

OSCM is concerned with management of the trickiest parts of the system that produces a good or delivers a service.

FALSE:OSCM is concerned with the management of the entire system that produces a good or delivers a service.

One of the "package of features" that make up a service is:

Facilitating goods

Managing customer touch points becomes a concern under current issues in OCSM when:

Firms striving to become superefficient begin to scrimp on staffing and training customer support personnel.

Which of the following are not listed in the text as jobs in OSCM?

Hospital administrator

Current issues in OSCM do not include:

Increasing global supply chain employment.

The Goods-Services Continuum consists of which set of the following categories?

Pure goods, Core Goods, Pure Services, Core Services

Which of the following is a measure of operations and supply management efficiency used by Wall Street?

Receivable turnover

Which of the following is not a way that operations and supply processes are categorized?

Selecting

Which of the following is not a characteristic that distinguishes services from goods?

Service jobs are unskilled.

Central to the concept of operations strategy are the concepts of operations focus and trade-offs.

TRUE: Central to their thinking was the notion of factory focus and manufacturing trade-offs. Because a factory cannot excel on all performance measures, its management must devise a focused strategy, (to perform) a limited set of tasks extremely well. This requires trade-offs.

Effectiveness means doing the right things to create the most value for the company.

TRUE: Effectiveness means doing the right things to create the most value for the company.

A doctor completes a surgical procedure on a patient without error. The patient dies anyway. In operations management terms, we could refer to this doctor as being efficient but not effective.

TRUE: Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. The doctor performed the surgery without error. Because the patient died, no value was created.

A worker can be efficient without being effective.

TRUE: Efficiency means doing something at the lowest possible cost. Effectiveness means doing the right things to create the most value. These are different things.

OSCM is a functional field of business with clear line management responsibilities.

TRUE: OSCM is a functional field of business with clear line management responsibilities

Attempting to balance the desire to efficiently use resources while providing a highly effective service may create conflict between the two goals.

TRUE: Often maximizing effectiveness and efficiency at the same time creates conflict between the two goals.

A process can be effective without being efficient.

TRUE: Often, maximizing effectiveness and efficiency at the same time creates conflict between the two goals. "Being efficient" at the customer service counter at a local store or bank means using the smallest number of clerks possible at the counter. Being effective, though, means minimizing the amount of time customers need to wait in line.

Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services.

TRUE: Operations and supply chain management is defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services.

The term "value" refers to the relationship between quality and the price paid by the consumer.

TRUE: Related to efficiency and effectiveness is the concept of value, which can be metaphorically defined as quality divided by price.