SCM 303 Exam 1 Study Guide (Homework questions)

Currently, our system is characterized by a lack of fit between what the customer wants and what the SCM system is best able to provide. As a result, which of the following would apply? 1. The only way to restore fit is for the firm to change the market segment it is going after. 2.Unless something is done, our firm will not be the most effective and efficient long-term supplier. 3.Any firm can successfully counter such inconsistencies through the use of patents and aggressive advertising. -1 only. -2 only. -3 only. -1 and 2 only. -1, 2, and 3.

-2 only. Explanation Only solution 2 addresses this situation directly. Solution 1 "blames the customer" for the firm's shortcomings and solution 3 does not address the issues at all, providing symptomatic relief at best.

TPE-TCO-Life refers to: -top product earners minus top customer orders minus length of supply chain -A system that minimizes the costs -Total purchasing expenditure -A tradeoff of concerns -A formula to understand Line Industry Future Expenditures (LIFE)

-A tradeoff of concerns

The industry 4.0 focus is on: -Mass production, assembly line, and electricity -Advancing from computer automation to cyber physical systems -Is a goal to achieve an "A" grade -Mechanization and an integrated supply chain -Providing online education

-Advancing from computer automation to cyber physical systems

Which of the following is NOT true about "order qualifiers"? -These are product traits that must meet a certain level in order for the product to even be considered by customers. -The firm must perform acceptably on these traits, usually at least as well as competitors' offerings. -Order qualifier traits may include availability, price, and conformance quality. -All of the items are true.

-All of the items are true. Explanation "Order qualifiers" are traits a product must meet at a certain threshold level to be considered; the product must perform acceptably on traits including availability, price, or conformance quality.

Which of the following groups is NOT likely to be stakeholders for operations in a local bank? -Customers -Regulators -Employees -All of these are likely to be stakeholders

-All of these are likely to be stakeholders Explanation A bank must consider the needs of its customers and employees, while also complying with government and other regulators.

Which of the following statements is a reason why operations management is important? -Efficient and productive operations drive the economic well-being of nations. -Operations management is responsible for much of the value created by organizations. -Operations management is a key source of competitive differentiation among firms. -All of these are reasons why operations management is important.

-All of these are reasons why operations management is important. Explanation Operations management affects both macroeconomic and individual firm outcomes.

Scantron Inc. claims that its competitors have to recall 10 percent of their products to fix defects, while it only has to recall 5 percent. Scantron is emphasizing which dimension of quality? -Durability -Reliability -Performance -Conformance

-Conformance Explanation Defects are an indication of lack of conformance.

A company strategy is defined and decided by: -The board of directors alone and without other concerns -Business managers/ CEO/ General Managers without other concerns -Individuals who are buying company stock -Customers who are buying the product -Customers and individuals

-Customers and individuals

Suppose that you are the general manager of a hotel. For which of the following issues would you first seek help from an operations manager in your firm? -Our prices seem to be too high. -Customers' complaints are rising. -We need a new insurance policy. -We are running out of cash.

-Customers' complaints are rising. Explanation Although operations managers might be asked to get involved with any of these issues, customer complaints are probably due to ineffective processes, a primary operations management responsibility.

You are an upper-level manager in a firm. You believe that corporate objectives are not effectively disseminated throughout the organization and that line-level managers do not take them into account in their decision making. Which of the following would best help you to try to correct this problem? -Hold a series of supervisory manager meetings. -Establish metric-based performance measures. -Evaluate personality indicators to ensure inter-departmental worker compatibility. -Evaluate and increase manager salaries and benefits.

-Establish metric-based performance measures. Explanation Performance measures communicate strategic intentions to operations personnel.

The three elements of Value Proposition, Key Customers, and Capabilities operate within an environment. Which of the following is NOT part of that environment? -Competition -Regulation -Technology -Founder's ideology

-Founder's ideology Explanation The environment consists of conditions such as competition, regulations, and technology that influence how managers develop an operations strategy.

What kinds of questions does an operations manager who is responsible for strategic-level planning address? -Which employees should work the day shift tomorrow? -How should this process be organized? -How many manufacturing plants should the company operate? -Should we make this part or buy it?

-How many manufacturing plants should the company operate? Explanation Strategic planning deals with long-term issues (years) at a business level, including making changes to a physical network of facilities.

Up until the latter parts of the 20th century, operations management mainly focused on: -Design -Internal production -External outsourcing -Globalization

-Internal production Explanation Over the last 50 years, globalization and outsourcing have caused a shift in operations management from an internal focus to a combined internal and external focus.

Internal operations managers work with what function to coordinate inbound and outbound flows of materials and information? -Finance -Purchasing -Marketing -Logistics

-Logistics Explanation Logistics operations managers focus on managing orders and inventories into and out of a company's facilities.

A manufacturer of generic prescription drugs must excel at delivering which of the following product traits? -Product performance -Features (unique attributes) -Durability -Low cost

-Low cost Explanation Since generic products seek to mimic brand-name products, their central appeal is lower purchase price.

Decision making regarding customers and products is often led by the: -CEO -Board of Directors -Marketing Management -Financial Managers

-Marketing Management Explanation Marketing managers often lead decisions regarding customers and products.

In working with downstream processes, internal operations managers typically work closely with: -Marketing and sales managers -Information technology managers -Human resource managers -Government regulators

-Marketing and sales managers Explanation Operations managers working in "customer-facing" processes (e.g., order processing, fulfillment) will work closely with marketing and sales managers, who are also customer-oriented.

From our class, a 'value chain' is: -Purchasing, Operations and Logistics -None of the answers -Purchasing and Logistics -Operations and Logistics -Sum of the information technology flow

-None of the answers

A company with a number of physically separate plants has a centralized tool room. This tool room in the past has been responsible for emergency repairs. Whenever equipment (e.g., a spindle, boring machine, transfer line) in one of these separate plants breaks down, the affected items are brought to the tool room, where they are repaired. In some cases, the breakdowns affect production schedules. In other cases, the breakdowns are more annoying but do not adversely affect schedules. Complicating the operations in the tool room is the fact that many of the plans for the equipment are incomplete or out-of-date, thus resulting in "make from sample"; requests (the broken part is provided and the tool room is asked to make the replacement piece just like the broken part). It is difficult to predict what equipment will break down and when. Furthermore, the company owns a wide variety of equipment. What are the order winners and order qualifiers in this scenario? Order Winners Order Qualifiers A.Cost, Quality Speed, Flexibility B.Flexibility, Quality Speed, Cost C.Speed, Cost Flexibility, Quality D.Speed, Flexibility Quality, Cost -Option A -Option B -Option C -Option D

-Option D Explanation This situation demands speed and flexibility. Quality and cost are also important, but should not be exchanged for less speed or inflexibility.

Xanadu makes HD televisions. It claims that its HD televisions have the clearest picture clarity in the industry. Xanadu is emphasizing which dimension of quality? -Reliability -Performance -Features -Conformance

-Performance Explanation Picture clarity is a basic performance dimension of HD televisions.

Within the supply chain and operations management system, the value proposition is most effectively communicated to the rest of the organization through which of the following mechanisms? -Performance measures -Mission statements -Management mandates -Corporate slogans and promotional materials.

-Performance measures Explanation Performance measures communicate strategic intentions to operational personnel.

Different levels of planning in supply chain operations management include: -General and detailed planning. -Strategic, tactical, and operational planning. -Long-term and short-term planning. -Logistical, operational, and procurement planning.

-Strategic, tactical, and operational planning Explanation Strategic, tactical, and operational planning address different time frames and levels of detail.

Operations management is: -The management of production. -The management of services. -The management of processes. -The management of physicians.

-The management of processes. Explanation "Processes" comprehends all of the aspects of operations management. The other answers are just possible components of operations management.

A supplier of materials used in manufactured goods is a member of: -A union -The product supply chain -The resource/technology supply chain -The tier 2 supply chain

-The product supply chain Explanation Material suppliers provide items that go into finished products. Resource/technology suppliers provide knowledge or physical assets (e.g., equipment) that are used to accomplish product transformations.

Which is correct: -Profitable is "the difference between the total value and the collective cost of performing the value activities -Price is the price paid for the raw materials, ingredients and any supplies -Cost of goods is the total charged for a customer to receive the product -Value: the amount buyers are willing to pay (measured by total revenue which is price and volume) for what a firm provides to them -Margin is if the value it commands exceeds the cost involved in creating the product

-Value: the amount buyers are willing to pay (measured by total revenue which is price and volume) for what a firm provides to them

Inbound Logistics is: -involved in creating value for the buyer, such as assembly, parts machining, salesforce operation, advertising, product design, recruiting, etc -activities associated with receiving, storing, and disseminating inputs to the product such as materials handling, warehousing, inventory control, vehicle scheduling, and returns to suppliers. -activities associated with collecting, storing, and physically distributing the product to buyers, such as finished goods warehousing, material handling, delivery vehicles operation, order processing, and scheduling -activities associated with transforming inputs into the final product form, such as machinery, packaging, assembly, equipment maintenance, testing, printing, and facility operations -associated activities with providing service to enhance or maintain the value of the product, such as installation, repair, training, parts supply, and product adjustment

-activities associated with receiving, storing, and disseminating inputs to the product such as materials handling, warehousing, inventory control, vehicle scheduling, and returns to suppliers.

An 'enterprise' could be: -all of these -a company -a non-governmental organization -a governmental organization -a company or governmental organization

-all of these

For our class and enterprise risk management, and "enterprise" could be: -only a company -a manufacturer who busy from supplier and sells transformed finished goods to customers -a governmental organization -any entity or group -a management system that controls a system

-any entity or group

Cross functional activities include: -procurement, operations, logistics -risk, quality, sustainability -risk, quality, accounting -direct, indirect, and ultimate -finance, marketing, management

-risk, quality, sustainability

Integrated Supply Chain Management is: -Separate activities of procurement, operations management and logistics -Another term for global supply chain management -Another term for information technology and the advanced computer systems -None of the above -the consideration of all supply chain activities into one seamless system

-the consideration of all supply chain activities into one seamless system

"Amazonization" is: -the shift to online ordering and direct delivery to a business or home -A retailer delivering product curbside with a touchless delivery -a company such as Uber delivering product from local retailer to a local location -consumer preference shifting to generic -the move of production to the Amazon region in Brazil

-the shift to online ordering and direct delivery to a business or home

An electronics firm produces smart phones for sale to the worldwide market. One of the most crucial process-related competitive operational priorities for this firm is: -Aesthetics -Cyber security -Flexibility -Durability

Flexibility Explanation Flexibility is important because of the short life cycle of a current model and the rapid progression of technology. Cyber security is handled by the ultimate customer's network vendor. Aesthetics and Durability are product-related characteristics, not process-related characteristics.