Operations Management Exam 1

potential creation of future competition

advantages of outsourcing does NOT include :

crew scheduling

which of the following tasks within an airline company are related to operations

false

T o F : core competencies are good candidates for outsourcing

false

T o F : JIT systems carry inventory just in case something goes wrong

false

T o F : SWOT analysis is a method of determining external strengths and weaknesses and internal opportunities and threats

true

T o F : a fast-food retailer that acquired a spice manufacturer would be practicing backward integration

false

T o F : a product will always be in the same stage of its product life cycle regardless of the country

false

T o F : a push system means providing the next station with exactly what is needed when it is needed

true

T o F : all organizations, including service firms such as banks and hospitals, have a production function

true

T o F : an accounting firm that provides tax services for a company would be considered to be part of that company's supply chain

true

T o F : an example of a "hidden" production function is the transfer of funds between accounts at a bank

false

T o F : an organization's strategy is the purpose or rationale for its existence

false

T o F : because most services cannot be inventoried, there is little place for JIT to help service organizations achieve competitive advantage

false

T o F : because service firms do not acquire goods and services externally, their supply chain management issues are insignificant

true

T o F : competition in the 21st century is no longer between companies; it is between supply chains

false

T o F : customer interaction is often high for manufacturing processes, but low for services

true

T o F : drop shipping results in time and shipping cost savings

false

T o F : employee empowerment is unnecessary in the Toyota Production System, because automation and powerful information systems reduce the need for employee creativity and decision making

true

T o F : ethical and social dilemmas arise because stakeholders of a business have conflicting perspectives

true

T o F : hidden problems are generally uncovered during the process of reducing inventory

false

T o F : in order to have a career in operations management, one must have a degree in statistics or quantitative methods

false

T o F : increasing inventory exposes variability in production processes

false

T o F : key success factors and core competencies are synonyms

true

T o F : key success factors are those activities that are key to achieving competitive advantage

false

T o F : low-cost leadership is the ability to distinguish the offerings of the organization in a way that the customer perceives as adding value

true

T o F : one goal of JIT partnerships is the removal of in-plant inventory by delivery in small lots directly to the using departments as needed

true

T o F : one reason for global operations is to gain improvements in the supply chain

true

T o F : operations management is the set of activities that creates value in the form of goods and services by transforming inputs into outputs

true

T o F : outsourcing is a form of specialization that allows the outsourcing firm to focus on its key success factors

true

T o F : outsourcing is the practice of transferring a firm's activities that have traditionally been internal to external suppliers

true

T o F : outsourcing refers to transferring a firm's activities that have traditionally been internal to external suppliers

true

T o F : product storage is an example of was in the sense that no value is added

true

T o F : production processes are being dispersed to take advantage of national differences in labor cost

true

T o F : productivity is generally more difficult to improve in the service sector than in manufacturing sector

false

T o F : productivity is the total value of all inputs to the transformation process divided by the total value of the outputs produced

true

T o F : savings in the supply chain exert more leverage as the firm's net profit margin decreases

true

T o F : the bullwhip effect refers to the increasing fluctuations in orders that often occur as orders move through the supply chain

false

T o F : the new model of a tight, fast, low-inventory supply chain, operating across political and cultural boundaries, has reduced the overall level of supply chain risk

true

T o F : the objective of the make-or-buy decision is to help identify the products and services that can be obtained externally

true

T o F : the theory of comparative advantage implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can

true

T o F : use of a diversified supply base represents one of the most common supply chain risk reduction tactics for several different supply chain risk categories

true

T o F : waste is anything that does not add value from the consumer's perspective

false

T o F : when implemented as a comprehensive operations strategy, JIT, TPS, and lean systems sustain competitive advantage and result in increased overall returns

true

T o F: the Toyota production system requires that activities have built-in, automatic

It is the minimum inventory necessary to keep a perfect system running

TRUE regarding JIT inventory

the customer workstation signals to the supplier workstation when production is needed

True about the kanban system

a company that always delivers at the promised time

What is delivery reliability?

internal strengths and weaknesses , external opportunities and threats

a SWOT analysis determines :

removal of incoming inspection

a characteristic of JIT partnership

true

T o F : a common JIT layout tactic is to minimize distance

forward integration

A rice mill in south Louisiana purchases the trucking firm that transports packaged rice to distributors : this is an example of ?

variability increase

NOT a benefit of JIT implementation

large lot sizes to save on setup costs and to gain quantity discounts

NOT a characteristic of just-in-time partnership

easy to store

NOT a typical service attribute

total control over every aspect of the organization

NOT an advantage of a virtual company

local optimization

NOT an opportunity for effective management in the supply chain

short-term relationships with few suppliers

NOT one of the six sourcing strategies

landscaping contractors

NOT typically considered as part of a manufacturing firm's supply chain

increasing executive pay

Not among the ethical and social challenges facing operations managers

immediate rivals potential entrants customers suppliers substitute products

Porter's Five Forces Model 5 aspects

define the organization's purpose in society

the fundamental purpose of an organization's mission statement is to ?

the high cost of changing partners

a disadvantage of the "few suppliers" sourcing strategy is ?

both have quality standards

a similarity between goods and services

a firm offers more reliable products than its competitors do

an example of competing on the basis of differentiation

Just-in-time JIT

characterized by continuous and forced problem solving via a focus on throughput and reduced inventory

lean operations

characterized by the elimination of waste through a focus on exactly what the customer wants

close relationships with trust

concerning relationships with suppliers, what kind of relationship is critical for the success of JIT

all of the above

cost cutting in international operations can take place because of : a. lower wage scales b. less stringent regulations c. lower taxes and tariffs d. lower indirect costs e. all of the above

none of the above

current challenges in operations management include all of the following except:

generating the demand for the organization's products or services

the marketing function's main concern is with:

management

the productivity variable has the greatest potential to increase productivity

low cost and differentiation

for which corporate strategy should supply chain inventory be minimized

corporate strategy

functional strategies are shaped by _?

pull systems

generally found in most lean environments

postponement

hewlett-packard withholds customization of its laser printers as long as possible. this is an example of ?

supplier location near plants

how can a reduction of in-transit inventory be encouraged ?

keiretsu

japanese manufacturers often pursue a strategy that is part collaboration, part purchasing from a few suppliers, and part vertical integration. This approach is called ?

optimizing one's local area without full knowledge of supply chain needs

local optimization is a supply chain complication best described as :

multifactor productivity

the total of all outputs produced by the transformation process divided by the total of the inputs is:

production and consumption occur simultaneously

most typical attribute of a service

to all firms, whether manufacturing or service

operations management is applicable :

subcontracting

outsourcing is simply an extension of the long-standing practice of ?

what are the five elements in the management process?

plan, organize, staff, lead, and control

decreasing inputs while holding outputs steady

productivity can be improved by:

All of the above

reasons to study operations management include learning about: a. what operation managers do b. how people organize themselves for productive enterprise c. a costly part of the enterprise d. how goods and services are produced e. all of the above

purchasing

represents the largest cost to the firm

TPS

specifically characterized by a focus on continuous improvement, respect for people, and standard work practices

counseling

the best example of a pure service

creating the company income statement

this decision doesn't fall within the scope of operations management

price

this decision is not a strategic operations management decision

all of the above

value-chain analysis can be used to determine if a business is adding unique value in which of the following areas ? a. process innovation b. human resources c. product research d. quality management e. all of the above

marketing, production/operations, and finance/accounting

what are the primary functions of all organizations

Toyota Production System

what does TPS stand for?

supply chain

what is a global network of organizations and activities that supply a firm with goods and services?

is an extension of product differentiation in the service sector

what is experience differentiation?

outsourcing

what is the practice of transferring a firm's activities that have traditionally been internal to external suppliers

produce good or services previously purchased

what is vertical integration ?

joint venture

when Daimler and BMW pooled resources to develop standardized auto components, the sourcing strategy could best be described by what?

all of the above

which of the following represents a reason for globalizing operations? a. to expand a product's life cycle b. to attract and retain global talent c. to improve operations d. to improve the supply chain e. all of the above

many suppliers

which sourcing strategy is particularly common when the products being sourced are commodities