Chapter 1

efficiency

-doing something at the lowest possible cost - the goal is to produce a good or provide a service by using the smallest input of resources

What does supply chain refer to?

-refers to the processes that move information and material to and from the manufacturing and service processes of the firm -includes the logistics processes that physically move product and the warehousing and storage processes that position products for quick delivery to the customer

Total Quality Management (TQM) became popular in what time frame?

1980s

inventory turnover equation

COGS/ Avg inventory value

Operations and supply chain management is concerned with the design and management of the entire system that has what function?

Creates and delivers a firm's products and services

Which of the following people was not considered one of the quality gurus? - Henry Ford - Philip Cosby -William Demy - Joseph Juran

Henry Ford

_______ is a functional field of business with clear line management responsibilities

OSCM

_______concerned with the management of the entire system that produces a product or delivers a service

OSCM

What are the 5 process activities?

Planning, Sourcing, Making, Delivering, Returning (Please Save My Darn Rabbit)

What section of OSCM are operation processes covered?

Section II: Manufacturing and Service processes--> how are processes that transform resources into products designed?

benchmarking

a process in which one company studies the processes of another company (or industry) to identify best practices

a tool that shows how a company's strategy is delivered through a set of tailored activities is called a(n)

activity-systems map

receivable turnover equation

annual credit sales/average account receivable

quality control manager

applies techniques of statistical quality control, such as acceptance sampling and control charts, to the firm's products

business process improvement analyst

applies the tools of lean production to reduce cycle time and eliminate waste in a process

The ratio of revenue to total assets is known as

asset turnover

Which of the following is an example of a goods producing business? - hospital - university - automobile manufacturer - call center

automobile manufacturer

A process in which one company studies the processes of another company for best practices is known as

benchmarking

which of the following is not a step in the risk management process? - create an activity-system map -identify sources of potential disruptions -develop plans to mitigate risk -assess the potential impact of the risk

create an activity-system map

Operations and supply chain management (OSCM)

defined as the design, operation, and improvement of the systems that create and deliver the firm's primary products and services

effectiveness

doing the right things to create the most value for the company

Doing the things that will create the most value for the customer is known as

effectiveness

Which of the following is not an efficiency measure used by Wall Street? - inventory turnover -asset turnover -employee turnover - receivables turnover

employee turnover

facilities manager

ensures that the building facility design, layout, furniture, and other equipment are operating at peak efficiency

Which of the following is not a type of process in the supply chain? -making - sourcing -evaluating - planning

evaluating

True or False Each activity in the strategic planning process is conducted only once a year

false

True or False: ISO 9000 recognizes companies each year for outstanding quality management systems

false

true or false Stakeholders are individuals or companies that legally own a portion of the company and are not influenced by the actions of that company

false

true or false a firm can excel simultaneously on all competitive dimensions

false

Which of the following is not a major activity of a typical strategic planning process? - translate the strategy - plan operations and supply -implement the strategy -develop the strategy

implement the strategy

A process that cannot be weighed or measured is known as

intangible

The ratio of COGS to average inventory value is known as

inventory turnover

business analytics

involves the analysis of data to better solve business problems

what does the receivables turnover calculate?

it measures a company's efficiency in collecting its sales on credit

A company has recently implemented an automated online billing and payment processing system for orders it ships to customers. As a result, it has reduced the average number of days between billing a customer and receiving payment by 10 days. How will this affect the receivables turnover ratio?

it will increase

moving material in the supply chain is referred to a____

logistics

delivering

logistics processes such as selecting carriers, coordinating the movement of goods and information, and collecting payment from customers

purchasing manager

manages the day-to-day aspects of purchasing, such as invoicing and follow-up

What are some of the challenging aspects of the COO?

managing the supply chain, service, and support

Order winners and qualifiers represent a link between operations and what other business function?

marketing

The ability to produce a unique product exactly to a particular customer's requirements is known as

mass customization

A company known for delivering high-volume standardized services is - walmart - whole foods - great clips -mcdonalds

mcdonalds

what does the asset turnover ratio measure?

measures the amount of sales generated for every dollar's worth of assets. It measures a firm's efficiency at using its assets in generating sales revenue--the higher the number the better. It also indicated pricing strategy

supply chain manager

negotiates contracts with vendors and coordinates the flow of material inputs to the production process and the shipping of finished products to customers

_______ and _______ are forcing companies to find flexible ways to meet customer demand

outsourcing and mass customization

branch manager (bank)

oversees all aspects of financial transactions at a branch

warehouse/distribution manager

oversees all aspects of running a warehouse, including replenishment, customer order fulfillment, and staffing

department store manager

oversees all aspects of staffing and customer service at a store

hospital administrator

oversees human resource management, staffing, supplies, and finances at a health care facility

plant manager

oversees human resource management, staffing, supplies, and finances at a health care facility

call center manager

oversees staffing and customer service activities at a call center

logistics manager

oversees the movement of goods throughout the supply chain

project manager

plans and coordinates staff activities, such as new-product development, new-technology deployment, and new-facility location

production control analyst

plans and schedules day-to -day production

planning

processes needed to operate an existing supply chain strategically

making

producing the major product or service

Building service activities into a firm's product offering is known as - product service processing -product service handling - product service bundling -product service decoupling

product-service bundling

Supply chain disruption risks are

random and difficult to predict

returning

receiving worn-out, excess, and/or defective products back from customers

What does operations refer to?

refers to the manufacturing and service processes that are used to transform the resources employed by a firm into products desired by customers

All of the following are competitive dimensions that form a firm's competitive position except -cost -flexibility -retail store -delivery speed

retail store

asset turnover equation

revenue (or sales)/ total assets

What tools involves the probability or relative frequency of an event against the aggregate severity of the loss?

risk mapping

sourcing

selection of suppliers that will deliver the goods and services needed to create the firm's product

Which of the following dimension of the triple bottom line considers such stakeholders as employees, the local community and other entities that are impacted by the firm's existence?

social

What do people who pursue careers in OSCM do?

specialize in managing the production and distribution of goods and services

When a company seeks to match the benefits of a successful position and maintain their current position in the marketplace it is attempting a(n) ________ approach.

straddling

What are the three elements that require integration to be successful in operations and supply chain management?

strategy, processes, analytics

The ability to meet current resource needs without compromising the ability of future generations to meet their needs is known as

sustainability

Which current issue in OSCM relates to the ability of a firm to maintain balance in a system, considering the ongoing economic, employee, and environmental viability of the firm?

sustainability

sustainability

the ability to maintain balance in a system

what does inventory turnover measure?

the average number of times inventory is sold and replaced during the fiscal year. it measures the company's efficiency in turning its inventory into sales

supply chain management

the central idea is to apply a total system approach to managing the flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer

When you want to express the ratio of all outputs to all inputs, you should use a _____ productivity measure

total

lean improvement manager

trains organizational members in lean production and continuous improvement methods

True or False A process is made up of one ore more activities that transform inputs into outputs

true

True or False An operations and supply chain manager helps firms determine the best way to deliver its goods and services

true

True or False Business analytics is defined as the analysis of data to better solve business problems

true

True or False Electric commerce is defines as the use of the internet as an essential element of business activity

true

True or False Many product offerings are a combination of goods and services

true

True or False Operations and Supply chain management is focused on the systems that create and deliver an organization's products and services

true

true or false Operations effectiveness is related directly to the costs of doing business

true

The attractiveness of a product relative to its costs is known as

value

Chief Operating Officer (COO)

works w/ the CEO and company president to determine the company's competitive strategy. Their idea's are filtered down through the rest of the company. They determine an organization's location, facilities, and what vendors it will use, and the implementation of the hiring policy