SCM3005 Exam #1 Study Guide

What are the three types of flow in Supply Chain Management?

1. Product Flow -The product flow involves the movement of goods from a supplier to a customer. This supply chain management flow also concerns customer returns and service needs. 2. Information Flow - The information flow centers on transmitting orders and updating the status of delivery. 3. Financial Flow - The financial flow involves credit terms, payment schedules, and consignment and title ownership arrangements.

True or False: Customer relationship management systems (CRM) can help you develop customer profiles, which is something completely distinct from and unrelated to customer segmentation.

False

Which of the following are potential sources of variation in the Ishikawa cause-and-effect diagram? a. Environment, prices and materials b. Materials, measurements and environment c. Measurements, environment and prices d. Prices, and materials and measurements

Materials, measurements and environment

The goal for the size of the Santa on a Christmas Santa cup is 3.5 cm with an acceptable tolerance of ± 0.9 cm. The grand mean of the size of the Santa from the samples that were taken is 3.4 cm and the standard deviation is 0.28 cm. What is CP? (rounded to three decimals) a. 0.701 b. 0.700 c. 0.007 d. 1.000 e. 1.071

1.071

When modifying classifications based on strategic issues, what are some possibilities that would make a customer more or less important? a. A customer may possess unique skills that will drive future market advantages. b. A customer may control a new patent that will spur sales growth. c. Intensive collaboration may uniquely improve logistics customer service. d. A customer uses invaluable resources. e. A, B, and C only

A, B, and C only

Mark the best option. In network design, total cost of ownership includes which of the following: a. Capital and labor costs b. Taxes and duties c. Currency d. Taxes, duties, and currency e. All of the above

All of the above

Which of the following is true of expectancy disconfirmation theory? a. When customers buy something, expectations and experiences interact. b. Experiences that don't meet expectations lead to dissatisfaction. c. Experiences that exceed expectations achieve delight and lead to repeat business. d. Feelings of satisfaction (or dissatisfaction) influence future purchase decisions. e. All of the above

All of the above

Which of the following influence your choice of technology as you design a production or service process? a. Production Volumes b. Financial Resources c. Labor Cost d. Inter-changability of capital and labor e. Technology used by rivals f. All the above

All the above

Which of the following describes place utility? a. Efforts to communicate (i.e., promote) a product's value and then facilitate the exchange process. b. Acquiring inputs and transforming them into products or services of greater customer value. c. Effectively managing all value-added processes that influence when a product is available for purchase. d. Assuring that products and services are where customers expect to find them—when they are needed. e. All of the above

Assuring that products and services are where customers expect to find them—when they are needed.

Select the most appropriate answer regarding global supply networks. a. They greatly affect customers' current lifestyles. b. Companies create customer value through them. c. They have little impact on contemporary products. d. Both A and B

Both A and B

Which of the following accurately describes a value proposition? a. A value proposition defines a company's core competency. b. A value proposition is a promise you make to customers about how your firm will meet their needs. c. A value proposition derives from a deep understanding of customer needs as well as the firm's capabilities. d. Both b and c

Both b and c

True or False: Although it is difficult, serious service providers can control customer behavior in a way consistent with how a manufacturer controls the physical dimensions of a product.

False

With respect to control chart logic, controls limits based on the level of confidence you want to have the process perform at is called? a. Variability b. Confidence c. Quality d. Target

Confidence

Network Design: Configuration and Coordination

Configuration: where in the world would you locate value-added activities? Coordination: how can you connect geographically dispersed activities so that they work as seamlessly as possible to create value?

Time utility involves which of the following? a. Efforts to communicate (i.e., promote) a product's value and then facilitate the exchange process. b. Acquiring inputs and transforming them into products or services of greater customer value. c. Effectively managing all value-added processes that influence when a product is available for purchase. d. Assuring that products and services are where customers expect to find them—when they are needed. e. All of the above

Effectively managing all value-added processes that influence when a product is available for purchase.

Which of the following is not one of the value gaps that can undermine customer experiences and can damage relationships? a. Elevation Gaps b. Perception Gaps c. Knowledge Gaps d. Service Quality Gaps e. Performance Gaps f. Translation Gaps

Elevation Gaps

Which "Quality of Service" dimension would you be assessing when asking the question, "How well does the service provider provide caring, individualized attention to its customers?" a. Responsiveness b. Assurance c. Reliability d. Empathy e. Tangibles

Empathy

True or False: In facility layout situations, once you achieve an ideal design, your job is done. You can focus on other things—that is, you don't have to worry about reevaluating the efficiency and efficacy of your layout.

False

True or False: In network design, we do NOT typically examine the nature of competition and a company's needed capabilities as part of the decision-making process.

False

True or False: Learning how to use global resources is not necessary for a company in the U.S. to be successful.

False

True or False: You should treat all customers equally. This is simply fair practice and good business.

False

In a dispersed network configuration... a. Firms perform a supply chain activity in one location and serve foreign locations from it b. Firms perform a supply chain activity in various countries c. Firms allow each site on the network to operate with full autonomy d. Firms tightly link operations and supply chain activities to one another

Firms perform a supply chain activity in various countries

Which of the following is not a data-collection tool commonly used in scanning initiatives? a. Key-informant Surveys b. Horoscopes c. Literature searches d. In-depth reviews

Horoscopes

Service Value Gaps

Knowledge Gaps Translation/Specification Gaps Performance Gaps Communication Gaps Perception Gaps Satisfaction/Service Quality Gaps

Which of the following is not one of the steps in W. Edward Deming's PDCA cycle? a. Plan b. Procrastinate c. Check d. Act e. Do

Procrastinate

What are the motivations for going global? [Globalization]

Motivations: Access to low-cost labor & materials Access customers through a local presence

Which of the following is not an objective of proactive scanning? a. Detect important cultural, economic, legal, political, and technological events and trends. b. Paint a picture of the future 20+ years into the future. c. Identify and define potential opportunities and threats. d. Help managers understand the company's strengths and weaknesses.

Paint a picture of the future 20+ years into the future.

Dimensions of Quality

Performance Features Reliability Conformance Durability Serviceability Aesthetics Perceived quality

SCOR [Supply Chain Operations Reference] Model

Plan, Source, Make, Deliver, Return, Enable

Cost of Quality

Prevention Costs - sum of all the costs to prevent defects Appraisal Costs - costs of the inspection and testing to ensure that the product or process is acceptable Internal Failure Costs - costs for defects incurred within the system External Failure Costs - costs for defects that pass through the system including both tangible and intangible costs

Which "Quality of Product" dimension would you be assessing when asking the question, "Is the product relatively easy to maintain and repair?" a. Serviceability b. Conformance c. Durability d. Performance e. Reliability

Serviceability

If you want to be six-sigma certified, what do you need to do? a. Show you are an effective project manager and have participated in quality-improvement projects b. Enforce regulations by the US Manufacturing Association c. Sell additional products to a customer during a sales call d. Successfully complete the Kukkiwon's 3rd Taekwondo Promotion test

Show you are an effective project manager and have participated in quality-improvement projects

A delivery capability consists of _____ and _____. a. Speed and Consistency b. Speed and Short Cycles c. Speed and Flexibility d. Speed and Frequency e. Speed and Experience

Speed and Consistency

Which "Quality of Service" dimension would you be assessing when asking the question, "How pleasing is the appearance of the physical facilities, equipment, personnel, and communication materials?" a. Tangibles b. Assurance c. Reliability d. Empathy e. Responsiveness

Tangibles

Dimensions of Service Quality

Tangibles Reliability Responsiveness Assurance Empathy

Globalization - The Good, The Bad, and the Ugly

The Good - More innovative products, better quality, lower costs, improved living standards The Bad - more intense competition, greater complexity, more prevalent risks, more variable lead times The Ugly - worker exploitation, elevated carbon footprint

Toyota assembles 6-cylinder engines in West Virginia and distributes them to plants in North America and Canada, each of which assembles specific vehicle models for distribution to various regions. The statement that best describes this strategy is... a. The company concentrates supply chain activities and loosely coordinates them b. The company disperses supply chain activities and tightly coordinates them c. The company disperses supply chain activities d. The company centralizes supply chain activities and tightly coordinates them e. The company loosely coordinates its supply network

The company centralizes supply chain activities and tightly coordinates them

Statistical Process Control (SPC)

The process of testing statistical samples of product components at each stage of the production process and plotting those results on a graph. Any variances from quality standards are recognized and can be corrected if beyond the set standards.

True or False: Control decisions help you make sure you have the materials you need, move those materials through the production process, and assure that your processes deliver exceptional quality.

True

True or False: Customers should really be at the center of your decision-making world because they are the only entity that puts money into a supply chain.

True

True or False: In facility layout situations, where you position equipment defines the flow of materials and the number of times you must handle each item. The ideal layout minimizes movement and handling, creating a simple and smooth flow of materials through the facility.

True

True or False: Increasing market growth in emerging economies can lead a company to global operations.

True

True or False: One of the important lessons of the efficient consumer response initiative was that companies really didn't know how to work cohesively together to create value.

True

True or False: Tangibility of Offerings refers to the fact that you can't hold a service in your hand—i.e., you can only experience it as you consume it.

True

True or False: The Internet of Things is making the factory of the future—i.e., the factory that runs itself with little or no human intervention--possible.

True

Total Quality Management (TQM)

a comprehensive approach - led by top management and supported throughout the organization - dedicated to continuous quality improvement, training, and customer satisfaction

What is guardbanding? a. Capturing mutual agreements on the work activity deliverables b. A practice that uses point-of-sale scanner data to manage payment, promotion and replenishment c. When engineers set product specifications tighter than they need to be d. Keeping the workplace clean and neat by making cleaning a daily activity

When engineers set product specifications tighter than they need to be

Customer Relationship Management (CRM)

a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups

Six Sigma

a process for reducing costs, improving quality, and increasing customer satisfaction seeks to reduce variation in the process that lead to product defects

Supply Chain Management

managing upstream and downstream value-added flows of materials, final goods, and related information among suppliers, the company, resellers, and final consumers

Bullwhip Effect

occurs when distorted product-demand information ripples from one partner to the next throughout the supply chain

A control chart that is constructed using a proportion is called a/an... a. p-chart b. s-chart c. x-chart d. R-chart

p-chart

Process Capability

the ability of the process to meet the design specifications for a service or product

Value Chain

the series of internal departments that carry out value-creating activities to design, produce, market, deliver, and support a firm's products

Customer Loyalty

when customers buy a product from the same supplier again and again - sometimes paying even more for it than they would for a competitive product