SCM 303 Exam 1 MSU

· TPE-TCO-Life refers to:

A tradeoff of concerns

· ______ is defined as the expenses incurred in acquiring and using a product

Cost

· _______ management is the management of the customer interface, including all aspects of order processing and fulfillment.

Customer

· True or false: China, Russia, and India are examples of countries where a move towards more centralized control has increased economic growth.

False

· True or false: The greatest improvements in product value are seldom achieved through collaborative networks formed between a firm and its partners.

False

· The amount of time that passes between the beginning and ending of a set of activities is called _____.

Lead time

· (True or False) The strategic profit model (SPM) shows how income and balance sheet data are interrelated.

True

· True or false: A SWOT analysis helps managers match strategies with strengths and opportunities while also reducing risks associated with weaknesses and threats.

True

· For our class and enterprise risk management, and "enterprise" could be:

any entity or group

Lean Operation

is an operation that produces maximum levels of efficiency and effectiveness using a minimal amount of resources.

· "Direct sales" business model

o A computer manufacturer sells computers directly to the end consumer.

· "Razor and blades" business model

o A firm gives away a product and makes money on the replacement for the supplements used for the same product.

· "Loyalty" business model

o A firm offers rewards to the customers for continuing to deal with the firm.

· Identify the scenarios that are examples of services operation.

o A lady visits a dentist in order to get her braces removed. o A girl goes to a massage center and gets a foot massage. o A man joins a driving school in order to learn to drive a car.

· Identify the definition of a process.

o A system of activities that transform inputs to valuable outputs

Identify the characteristics of a well-designed value proposition

o A value proposition offers a combination of product features that customers find attractive and are willing to pay for. o A value proposition satisfies the financial and strategic objectives of the firm.

· The industry 4.0 focus is on:

o Advancing from computer automation to cyber physical systems

· Identify the instances of goods from the given examples.

o Cars o Air conditioners

· Resources

o Choice, Workers, machines, money, and knowledge

· Identify the true statements about competitive priorities.

o Competitive priorities address both product-related outcomes and process-related capabilities. o Competitive priorities, on establishment, form the basis for performance measurement.

· A ( ),(. ) is a unique set of skills that confers competitive advantages to a firm, because rival firms cannot easily duplicate them.

o Core Capability

· Which of the following are true statements about core capabilities?

o Core capabilities are skills, processes, and systems that are unique to a firm and enable it to deliver products that are valued by the customer. o Core capabilities are valuable because they are difficult for the competition to imitate.

· Who determines a product's quality standard when it is considered a competitive priority?

o Customers

· Identify the players that are directly involved in a supply chain.

o Customers o Firm o Stakeholders o Suppliers

· A company strategy is defined and decided by:

o 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?

o Customers' complaints are rising.

· From a historical perspective, identify the reasons why advances in technology and infrastructure have increased the focus on supply chains in operations management.

o Digital communication has made information transactions for planning, material movement tracking, and financial needs more efficient. o Modern transportation is faster, more reliable, and connects more remote locations to the global network. o Modern transportation networks open opportunities both for new suppliers & new markets.

· Identify the functional groups that are directly concerned with customer management.

o Distribution o Order fulfillment o Sales

· Customer management

o Distribution, sales, order fulfillment, and customer service

· Which of the following are types of supply chain partners?

o Downstream product suppliers o Resource and technology suppliers o Upstream product suppliers o Aftermarket Suppliers

· Downstream stages of the supply chain are made up of layers of partners and customers commonly referred to as _____.

o Echelons

· Identify the aspects of an operations management system that are affected when a manager makes structural decisions.

o Facilities o Supply chain network o Capacity

· Which of the following factors do the customers take into consideration when quality is considered to be the product-related competitive priority?

o Features o Durability o Reliability o Aesthetics

· Performance measurement must include a mix of _______ and _______ measures.

o Financial and operational

· _____ can be defined as the extent to which there is alignment between a firm's operational capabilities, its value proposition, and desires of its critical customers.

o Fit

· Outputs

o Goods and Services

· Identify the characteristics of goods

o Goods are tangible. o Goods can be inventoried. o Goods have long lead times.

· Identify the true statements about goods and services.

o Goods can be produced in advance and stored in inventory. o Goods manufacturing operations can use inventory to smooth out imbalance between production and demand. o A producer of services must maintain enough capacity to meet demand during peak periods.

· What kinds of questions does an operations manager who is responsible for strategic-level planning address?

o How many manufacturing plants should the company operate?

Identify the advantages of a firm producing high quality products

o Improved reputation of the company and easier selling of their products o Motivated employees in the firm working to maintain the quality standard

· Identify the different types of customers

o Internal o Intermediate o Final

· Up until the latter parts of the 20th century, operations management mainly focused on:

o Internal Production

· Identify an advantage of having strategic plans made by a firm at all levels.

o It takes into account the business environment, economic conditions, market opportunities, and competitor actions.

· Internal operations managers work with what function to coordinate inbound and outbound flows of materials and information?

o Logistics

· In working with downstream processes, internal operations managers typically work closely with:

o Marketing and sales managers

· Inputs

o Materials, energy, money, people, and data

· Choose the measures that are part of the SPM (Strategic Profit Model).

o Net sales o Fixed assets o Net profits o Fixed expenses

· Identify the true statements with respect to performance measurement's role in operations strategy.

o Performance measures communicate strategic intentions to operations personnel. o Performance measures control operations.

· A competitive priority placed on cost usually treats certain dimensions of quality and timeliness as givens and focuses on reducing cost. Which of the following factors are considered when focusing on the reduction of a product cost on the whole?

o Purchase o Maintenance/repair o Acquisition o Operation

· Supply management

o Purchasing, sourcing, and procurement

· A product's ____________ is defined as its fitness for consumption in terms of meeting the customers' needs and desires.

o Quality

· Identify a difference between goods and services.

o Quality assessment of goods is easier than the quality assessment of services.

· Identify the groups that operations managers interact with and are external to the firm

o Stakeholders o Suppliers o Customers

· Identify the true statements about stakeholders.

o Stakeholders' demands often differ from the demands of customers or suppliers. o Stakeholders can significantly affect how a firm operates. o Stakeholders also include employees and unions.

· (___________ ) planning is a type of planning that addresses long-term decisions that define the operations objectives and capabilities for the firm and its partners.

o Strategic

· To be effective, operations management must be consistent with the _____ goals of the firm.

o Strategic

Which of the following hierarchical levels does Strategic planning consist of?

o Strategic business unit planning o Corporate planning o Functional planning

· Identify the true statements with respect to operations strategy.

o Strategic initiatives address operations that are spread across internal functions as well as across organizations making up the supply chain. o Operations strategy is defined by what is done over time, not by what is written down as plans.

· Different levels of planning in supply chain operations management include:

o Strategic, tactical, and operational planning.

· Identify the results of the core capabilities approach.

o Supply chain partners become more interdependent. o An organization is able to focus on what it does best. o Greater product value is achieved through higher quality and greater efficiencies.

· Identify the outcomes of collaborative networks.

o Technical expertise of partners is used to their full extent. o Opportunities to take advantage of complementary cost structures of partners are opened. o Stronger product offerings are made.

· A supplier of materials used in manufactured goods is a member of:

o The Product Supply Chain

· Which of the following are advantages of using the strategic profit model (SPM)?

o The SPM is useful for evaluating both operational and marketing-based plans and actions. o The SPM helps direct attention to those areas that represent opportunities or problems. o The SPM model is relatively simple and straightforward to use.

· Supply chain management

o The design and execution of relationships and flows that connect the parties and processes across a supply chain.

· Which of the following are advantages of a firm having flexible operations?

o The firm can command premium prices when its operations can be tailored to meet specific needs. o The firm has many opportunities to create value for its customers in unique ways.

· Operations Management

o The management of processes used to design, supply, produce, and deliver valuable goods and services to customers.

· Operations management is:

o The management of processes.

· Order winner

o The required product is available and is delivered before the estimated delivery date or time

· Order loser

o The required product is not available and is delivered late after procurement.

· Order qualifier

o The required product is not available. However, it is procured and delivered on the estimated date or time

· Which of the following are the advantages of corporate strategic planning when compared with business unit planning and functional planning?

o This type of planning has the broadest scope. o This type of planning has the least number of constraints.

· In a supply chain, each upstream stage of supply is known as a

o Tier

· Logistics management

o Transporting, warehousing, and materials managers

· True or false: Operations management is a process-oriented discipline

o True

· _____ suppliers typically provide raw materials, components, and services directly related to manufacturing or service production processes.

o Upstream product

· Identify the key questions considered during the formulation of a corporate strategy for a large, multidivisional firm.

o What businesses to acquire? o How to manage risks? o How to measure business performance? o What businesses to divest?

· Identify the aspects of an operations management system that are affected by infrastructural decisions.

o Workforce o Production planning and control o Process innovation

· Inbound Logistics is:

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

· A _____ is a combination of choices determining the customers that a business unit will target, the value propositions it will offer, and the supply chain operations management capabilities that a firm will employ.

o business model

· A(n) _____ communicates the overall mission of the firm and identifies the types of businesses that a firm wants to be in.

o corporate strategy

· The three primary areas or elements of an operations strategy, work in a setting called the _____.

o environment

· A _____ determines how an action taken by a particular unit of the firm will support the overall business unit strategy.

o functional strategy

· Operations management is mainly concerned with _____.

o how resources are developed and used to accomplish business goals

· The product traits that cause a customer to choose a product over a competitor's offering fall under the _____ category.

o order winner

· Aftermarket suppliers provide _____.

o product service and support such as maintenance, repair, disposal, or recycling

· Firms use evaluation processes to _____.

o report how well it is meeting its goals or using its resources

· Cross functional activities include:

o risk, quality, sustainability

· Semi-independent organizations that manage different product and market segments are called _____.

o strategic business units

· Value:

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

· Integrated Supply Chain Management is:

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

· When a product offered by a firm is always in stock, this firm's value to the customer is based on the competitive priority of _____.

o timeliness

· A(n) _____ is a collection of product and service features that are both attractive to customers and different from what the competitors offer.

o value proposition

· "Amazonization" is:

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

o The third assessment

§ How environmentally responsible the firm has been?

o The second assessment

§ How socially responsible the firm has been throughout its operations?

o The first assessment

§ Traditional measure of performance—monetary profit

o Developing operations that anticipate and deal with problems resulting from natural events, social factors, economic issues, or technological issues

· Risk management

o Maintaining operations that are both profitable and nondamaging to the environment or society

· Sustainability

o Triple bottom line

· _____ is an approach to corporate performance measurement that focuses on a company's total impact measured in terms of profit, people, and the planet.

o Suppliers

· are parties that provide inputs to operational processes.