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Operations & Supply Chain Management Test 1

TRUE or FALSE? Electronic commerce refers to the use of information technology solutions to automate business transactions.
TRUE
TRUE or FALSE? The drive for efficiency has decreased the level of globalization in the world economy over the last twenty years.
FALSE
TRUE or FALSE? Some organizations do not have an operations function.
FALSE
TRUE or FALSE? Of the three flows linking organizations in a supply chain, information and monetary flows always move upstream and physical flows always move downstream.
FALSE
TRUE or FALSE? Most organizations cannot function as part of a larger supply chain.
FALSE
TRUE or FALSE? The supply chain is a network of manufacturers and service providers that work together to convert and move goods from the raw materials stage to the end user.
TRUE
TRUE or FALSE? To participate in a supply chain, a firm need not actually handle the physical goods at some point.
TRUE
TRUE or FALSE? Information and materials are two examples of inputs to the transformation process.
TRUE
TRUE or FALSE? The transformation process can be used to describe the production of ONLY intangible services.
FALSE
TRUE or FALSE? Inputs to the transformation process are tangible, but the outputs may be tangible or intangible.
FALSE
TRUE or FALSE? In general, operations management activities are not information and decision intensive.
FALSE
TRUE or FALSE? A second-tier supplier is upstream from a first-tier supplier in the supply chain.
TRUE
TRUE or FALSE? Most of the participants in a supply chain cannot be both suppliers and customers.
FALSE
TRUE or FALSE? Relationship Management is not the component of a supply chain that is the most susceptible to breakdown.
FALSE
TRUE or FALSE? To avoid supply chain problems, firms must manage relationships with their downstream suppliers as well as their upstream customers.
FALSE
TRUE or FALSE? The association for operations management is AOM.
FALSE (APICS)
TRUE or FALSE? The Logistics function of a supply chain would include Marketing and Engineering as its key inter-organizational participants.
FALSE
Which of the following statements regarding the supply chain is TRUE?
a first-tier supplier is downstream from a second-tier supplier
Which of these statements about recent trends in operations and supply chain management is BEST?
more companies are putting an emphasis on relationship management
An electronic commerce system:
can improve the speed and quality of business communication
The collection of people, technology, and systems within an organization that has primary responsibility for providing the organization’s products or services is called:
the operations function
The organization that provides national and institutional leadership in purchasing and materials management is:
ISM
Which of the following lists is in correct supply chain order?
first-tier supplier — manufacturer — distributor
Which of the following is NOT a flow typically found in a supply chain?
risk
Which of the following is primarily a supply chain management decision?
the mix of labor skill and automation
________ is an example of an output of the transformation process
satisfied customers
Efforts to improve cooperation among firms in the supply chain can be characterized as:
relationship management
Which job title would most likely be responsible for supervising production in a manufacturing setting?
production manager
Jon was a mathematical whiz. He had a flair for developing spreadsheets, using statistics, and creating simulations to show the effects of changes in policy and infrastructure. His skills equipped him well for his operations and supply chain position as:
an analyst
Which department is least likely to interact with the purchasing function?
human resources
Which of the following statements about the operations function is NOT correct?
The outputs of an operations function are always tangible
Which of the following is NOT a trend in operations management?
decreased customization
Planning numbers needed for effective decision making are typically developed by:
forecasting
Structural elements of a business include:
computer systems
________ is an example of an infrastructural element.
an organizational structure
The firm’s targeted customers, time frames, and performance objectives are identified by their:
business strategy
Which of the following statements about functional strategy is BEST?
many functional-level strategies could readily be described as cross-functional
No one could turn around a failing restaurant as expertly as Gordon, whose experience and cadre of trained professionals was available at a moment’s notice should his services be needed. This ability, some might call it a gift, was developed to such a level that other restaurant consultants were unable to match his results. This ability is best described as his:
core competency
Which of these is NOT one of the primary objectives of an operations and supply chain strategy?
to align structural and infrastructural elements to convert order winners into order qualifiers as determined by the mission statement
Damron Inc., wants to purchase a shear for their sheet metal shop and chooses dimensions of cost, reliability, and flexibility as critical to their long-term success. They evaluate three different shears and rate their performance on each criterion on a scale from 1 (poor) to 5 (excellent). What is the value index for the shear made by Belsky Manufacturing?
23 (chart Ch.2 #7)
Damron Inc., wants to purchase a shear for their sheet metal shop and chooses dimensions of cost, reliability, and flexibility as critical to their long-term success. They evaluate four different shears and rate their performance on each criterion on a scale from 1 (poor) to 5 (excellent). Which shear should be purchased?
Reber (chart Ch.2 #8)
Which of the following is NOT a generic performance dimension of operations and supply chain activities?
social responsibility
Whether the product was made or service performed to specifications is a question of:
conformance quality
The ability to produce a wide range of products or service is:
mix flexibility
Which of these statements about time performance is BEST?
a customer with a narrow delivery window should have a supplier with high delivery reliability
Mutt’s Amazing Dogs offers a hot dog with mustard and a hot dog with relish and mustard. The difference between the two (the relish) is achieved by flipping a single lever, which changes the dispenser from mustard, to a perfectly proportioned mix of relish and mustard. This lever responds instantly to the feathery touch of Mutt, who has achieved a high level of:
changeover flexibility
Performance dimensions on which customers expect a minimum level of performance are called:
order qualifiers
The latex division of Vandelay Industries provided support after the sale that could not be matched by any of the other players in the latex industry. This unique attribute was responsible for perhaps 60% of their sales volume and could be described as:
an order winner
When the operations and supply chain areas are not linked with the overall business strategy, but instead follow industry practices, the firm is in this stage of alignment.
externally neutral
Before firms can progress to the fourth stage of alignment, they must:
develop core competencies
Closing the loop in the area of business strategy means that:
core competencies at the functional level feed back into the business strategy
TRUE or FALSE? A business is defined by its structural and infrastructural elements.
TRUE
TRUE or FALSE? A mechanism that identifies a firm’s targeted customers and sets time frames and performance objectives for the business is called a mission statement.
FALSE
TRUE or FALSE? The vision statement addresses a company’s reason for existence, core values, and domain.
FALSE
TRUE or FALSE? As long as each functional area in a company operates efficiently, their strategies can be very different.
FALSE
TRUE or FALSE? In general, core competencies make excellent strategies.
TRUE
TRUE or FALSE? The operations and supply chain strategy is a functional strategy that is, by definition, an infrastructural strategy.
FALSE
TRUE or FALSE? Conformance quality addresses whether the product was made or the service performed to specifications.
TRUE
TRUE or FALSE? If a logistics firm consistently makes deliveries within the agreed upon delivery window, they are exhibiting delivery reliability.
TRUE
TRUE or FALSE? Changeover flexibility refers to the ability of a company to change production quickly from one product to another, thereby producing a wide range of products.
FALSE
TRUE or FALSE? Volume flexibility is the term used to describe the ability of a producer to produce a dazzling array of products or services.
FALSE
TRUE or FALSE? Darrell and Dave were fierce competitors, which drove both of them to overpay for many of their inputs, resulting in increased prices at their own stores. Dave realized this, and pondered how he could be recognized as a cost leader by his customers and maintain his reputation for quality merchandise. Sacrificing one element of his strategy at the expense of another is recognized as a trade-off in operations management.
TRUE
TRUE or FALSE? “I’ve never seen flavored marshmallows this size before!” Alice squealed as she emptied the shelves at the local grocery store. The rest of the shoppers would have to make do with the other seventy bags of miniature and standard-size marshmallows during this winter’s hot chocolate festival. For Alice, the jumbo size feature is an order winner.
TRUUU (2 chainz voice)
TRUE or FALSE? Your employer prepares a request for proposal that describes in vivid detail all of the capabilities that a new computer system should possess. Software vendors with products that meet this request for proposal can be described as order qualifiers.
TRUE
TRUE or FALSE? In the internally supportive stage of business strategy alignment, management merely attempts to minimize negative potential in the operations and supply chain area.
FALSE
TRUE or FALSE? You decide to open a bookstore with a wide selection, comfortable seating, and internal coffee shop because it has worked very well for other bookstores you have visited. Your strategy could be described as externally neutral.
TRUE
TRUE or FALSE? The externally supportive stage of alignment is more desirable than the externally neutral stage of alignment.
TRUE
TRUE or FALSE? The phrase “closing the loop” means that strengths and weaknesses, as well as core competencies, are fed back into the mission statement.
FALSE
The manufacturing process used to make a wide variety of highly customized products in quantities as small as one is a:
job shop
A sporting apparel manufacturer that produces t-shirts to commemorate significant athletic achievements for proud students and alumni probably uses:
batch manufacturing
The Devon Tower graces the Oklahoma City skyline and is officially the tallest building in the state. The manufacturing process used to produce this jewel is most probably:
a fixed-position layout
Products that are customized only at the very end of the manufacturing process are known as:
assemble-to-order
Products that use standard components but the final configuration of those components is customer-specific are known as:
make-to-order
A manufacturing process decision affects:
all of the above (the type of workforce needed, equipment needed, and products that can be made)
Highly automated batch processes that can reduce the cost of making similar groups of products are:
flexible manufacturing systems
The time between completions of successive units on a production line is called:
cycle time
An advantage of a production line process is:
the per unit cost of items produced on the line
Which of these manufacturing processes is most likely dictated by the physical characteristics of the product being produced?
continuous flow
Assemble-to-order occurs upstream from:
finishing
The greater the emphasis on intangible activities, the more management’s attention will be directed to:
training employees
The point where the customer interfaces directly with the service organization is:
the front room
A legal service in a corporate acquisition probably scores:
high on customization and high on intangible activities
TRUE or FALSE? A customer service function at an insurance firm that handles claims based on the first letter of the customer’s last name is an example of applying group technology to a service operation.
FALSE
TRUE or FALSE? A manufacturing process can be best at everything.
FALSE
TRUE or FALSE? A product-based layout arranges resources sequentially according to the steps required to make a product.
TRUE
TRUE or FALSE? Cycle time is not the sum of all of the task times
TRUE
TRUE or FALSE? A job shop manufacturing process is better suited to make a variety of products than a continuous flow process.
TRUE
TRUE or FALSE? A batch process is less flexible than an assembly line and less efficient that a job shop.
FALSE
TRUE or FALSE? A cellular layout is not another name for a functional layout.
TRUE
TRUE or FALSE? The product-process matrix illustrates that low volume, one-of-a-kind products are ideally suited to a job shop process.
TRUE
TRUE or FALSE? Make-to-stock products are probably produced using a production line.
TRUE
TRUE or FALSE? Products that use standard components, but the final configuration of those components is customer-specific, are called make-to-order products.
TRUE
TRUE or FALSE? Activities that take place prior to the point of customization are called downstream activities.
FALSE
TRUE or FALSE? According to the law of variability, converting from an assemble-to-order to a make-to-order production process may not increase productivity of the manufacturing processes.
TRUE
TRUE or FALSE? In a service process, the greater the emphasis on intangible activities is, the more critical is the training and retention of skilled employees and the development and maintenance of the firm’s knowledge assets.
TRUE
TRUE or FALSE? Capability variety is the difference in how customers view an identical service outcome. What some customers might view as economical and thrifty others might view as cheap and poor value.
FALSE
TRUE or FALSE? As the degree of service customization decreases, managers have more opportunity to focus on cost and productivity.
TRUE
TRUE or FALSE? In a service blueprint, the line of internal interaction falls between the customer and the onstage service provider.
FALSE
TRUE or FALSE? The three dimensions of service positioning are the service package, the degree of customization and the amount of customer contact.
TRUE
TRUE or FALSE? Takt time is the upper limit on the elapsed time between completions of successive items on a production line.
TRUE
TRUE or FALSE? The shorter the required takt time, the more workstations that will be required to balance a production line.
TRUE
TRUE or FALSE? A manager deciding where 6 departments could be located in a six room office building has over 500 possible arrangements.
TRUE
TRUE or FALSE? A support process performs necessary, value-added activities of an organization.
FALSE
TRUE or FALSE? Ted’s uses customer comment cards to discover sources of customer dissatisfaction and then develops training programs for their servers and kitchen help to try to eliminate those sources of dissatisfaction. This constitutes a development process for Ted’s.
TRUE
TRUE or FALSE? Mapping creates a common understanding of process activities, their results, and who performs the steps.
TRUE
TRUE or FALSE? Most people developing process maps for the first time fail to put in sufficient detail.
FALSE
TRUE or FALSE? In a process map, a circle represents a step or activity in the process.
FALSE
TRUE or FALSE? The primary focus of a swim lane process map is to depict flows of objects, information, and money.
FALSE
TRUE or FALSE? Productivity is measured as the ratio of inputs to outputs.
FALSE
TRUE or FALSE? A laundry tracks clean linen output in pounds and their inputs of gas, water, electricity, and labor. A productivity measure incorporating all of these inputs is a multifactor measure.
TRUE
TRUE or FALSE? A person that fails to meet output standards could still have an efficiency measurement of more than 100%.
FALSE
TRUE or FALSE? A three-man hay baling crew is expected to buck 800 small square bales a day in the blazing August sun. This amount is a standard output.
FALSE
TRUE or FALSE? Cycle time is the total time needed to complete a business process.
TRUE
TRUE or FALSE? While efficiency can exceed 100%, percent value-added time has a maximum of 100%.
TRUE
TRUE or FALSE? Your university sends a contingent of top-ranking officials to Las Vegas hotels to study ways to improve dormitory living conditions. This is an example of process benchmarking.
TRUE
TRUE or FALSE? When Burger King studies the drive-through operations of McDonalds, they are engaging in competitive benchmarking.
TRUE
TRUE or FALSE? A Six Sigma Champion is a full-time Six Sigma expert that is responsible for training, mentoring, deployment, and results.
FALSE
TRUE or FALSE? A check sheet, also called an Ishikawa diagram, is used to record how frequently a certain event occurs.
FALSE
TRUE or FALSE? The Five Whys can be used during all three phases of construction of a Pareto chart.
FALSE
TRUE or FALSE? The magnitude of changes created by a continuous improvement program is generally larger than those created by a business process reengineering program.
FALSE
TRUE or FALSE? Level 1 of the SCOR model is organized around the five core management processes: plan, source, make, deliver, and return.
TRUE
TRUE or FALSE? One reason the SCOR model is widely accepted is its consistency. It mandates the same information and physical flows for all products, regardless of the degree of customization.
FALSE
The majority of the total operating budget for most organizations is:
supply chain costs
A set of logically related tasks or activities performed to achieve a defined business outcome is a:
process
A set of tasks or activities that addresses the main value-added activities of an organization is a:
primary process
Which of the following statements BEST describes current thinking regarding processes?
developing superior business processes requires a cross-functional and cross-organizational perspective
Mapping does NOT:
provide a detailed view of all elements external to the process
An arrow in a process map represents a:
more activity
Which tool should be used to track the movement of a customer’s complaint from one department to the next until it is resolved?
swim lane map
A car wash services 200 customers in a 4 hour span on a lovely Saturday afternoon. The car wash employs 5 washers at $6 per hour. An appropriate measure of productivity is:
1.7 cars/$
A car wash services 200 customers in an hour on a lovely Saturday afternoon. The car wash employs 5 washers at $6 per hour and uses $50 of water and $5 of electricity per hour. An appropriate measure of productivity is:
2.35 cars/$
A man in midlife crisis places his order for a custom chopper from OC Choppers on September 1, but the work on the bike doesn’t actually begin until October 1. The actual work on the bike, from design, through fabrication and assembly takes the entire month of October. The entire month of November is spent learning to ride a trainer bike, adding another garage bay to the house, and updating his will. Finally on November 30, the customer takes possession of his dream chopper and happily smokes his tires out of the lot and rides back to Oklahoma. This period of 91 days, besides being labeled “the longest three months of his life” would be more accurately labeled:
cycle time
It takes one day for Peter Gibbons to complete a TPS report and attach the cover sheet. During that day, Peter spends about 15 minutes a day performing actual work and the other 7 hours and 45 minutes spacing out. Which of the following statements is correct?
Peter’s percent value-added time is just over 3%
Which of the following approaches to process improvement could be described as competitive benchmarking?
employees at XEROX purchase a Canon copier and take it apart to get design ideas for their next generation of copiers
In statistical terms, a process that achieves Six Sigma quality will generate about:
three defects per million opportunities
Which of these steps is NOT part of the Six Sigma process sequence?
design
When constructing a fishbone diagram, brainstorming takes place during the:
open purchase
Which two continuous improvement tools are most similar in appearance?
Pareto chart and histogram
Every morning the married couple waged a war over the available laptop computer. Jeff was always eager to get started on the task at hand but Liza felt the need to first download her podcasts, which infuriated Jeff. He decided to track the time he spent waiting for podcasts to download every day for a month to see whether things were getting worse. The best tool for displaying these results to the divorce court judge would be a:
run chart
Which of these continuous improvement tools would be best suited for showing all of the steps required to change your major to operations management?
process map
When should a process be an art and not a science?
when the process is research and development
The procedure of rethinking and radical redesign of business processes to achieve dramatic organizational improvements is called:
business process reengineering
Which of these SCOR model flows moves in the opposite direction from the others?
return
Which of these elements of the SCOR model at level 1 does NOT have a direct connection with customer processes?
make
Which of these statements about the SCOR model is BEST?
the model makes provisions for different levels of customization
Which of these statements about SCOR level 3 processes is BEST?
they describe in detail the actual steps required to execute level 2 processes
Costs incurred by defects that occur prior to delivery to the customer are called:
internal failure costs
Which of these statements about the zero defects view of the total cost of quality is BEST?
failure costs dictate the shape of the total cost curve
Which of the following is NOT a core idea of total quality management?
cost reduction
W. Edwards Deming’s Fourteen Points for Management include:
break down barriers between departments
A technique used to translate customer requirements into technical requirements is:
quality function deployment
The probability of rejecting a lot with quality better than the acceptable quality level is:
the producer’s risk
Taguchi defines quality in terms of:
losses
One international standard for managing quality across the supply chain is:
ISO 9000
An automobile windshield manufacturer wants to verify that their process is producing windshields of an appropriate thickness. The BEST tool to determine this information is a(n):
chart
A quality perspective that focuses on whether or not a product was made or a service was performed as intended is the:
conformance perspective
The ________ dimension of quality asks how long a product can go between failures or the need for maintenance.
reliability
On the first day of class at a new university you made judgments about the quality of the class before the professor had entered the room. You noted the comfort of the accommodations, the fine works of art in the halls and on the classroom wall and the soothing music piped in over the sound system. This dimension of quality is:
aesthetic
TRUE or FALSE? ISO 9001:2000 cannot be used by both manufacturing and service companies.
FALSE
TRUE or FALSE? Joseph Juran’s definition of quality as “fitness for use” is an example of the value perspective of quality.
TRUE
TRUE or FALSE? The Dodo Corporation plans to launch two new products for this year, a blank eight track tape and a 5 floppy diskette. If both items are produced precisely to the specifications provided by the design engineers, then Dodo Corporation’s operations function will achieve a high level of conformance quality.
TRUE
TRUE or FALSE? Appraisal costs cannot occur when a company has NOT produced any defective items.
FALSE
TRUE or FALSE? Money spent training an employee how to do the job mistake-free is an example of an appraisal cost.
FALSE
TRUE or FALSE? In the Zero Defects view of the total cost of quality, the minimum value of the total cost curve is closer to the y axis (the cost axis) than it is in the traditional view.
FALSE
TRUE or FALSE? Based on W. Edwards Deming’s Fourteen Points for Management, we can safely conclude he would have been a strong advocate for a Zero Defects promotion.
FALSE
TRUE or FALSE? For a perfectly centered process with normally distributed output, Six Sigma process quality translates to around 2 defects per trillion units produced.
FALSE
TRUE or FALSE? If a contact lens has a scratch on it, the manufacturer classifies it as defective. This is an example of a continuous variable.
FALSE
TRUE or FALSE? The upper and lower limits of a control chart should be wider than the upper and lower tolerance limits.
FALSE
TRUE or FALSE? An R chart is used to track how much the individual observations within a sample vary.
TRUE
TRUE or FALSE? Producer’s risk rises as consumer’s risk rises.
FALSE
TRUE or FALSE? With everything else held constant, a sampling plan with c=1 will have a lower producer’s risk than a sampling plan with c=2.
FALSE
TRUE or FALSE? Taguchi’s quality loss function runs counter to the notion that a product falling within tolerance limits is acceptable.
TRUE
TRUE or FALSE? Statistical quality control is not an element of quality assurance.
FALSE
TRUE or FALSE? Reductions in process variance result in higher process capability.
TRUE
TRUE or FALSE? Six Sigma quality means that the difference between the upper and lower tolerance levels is six standard deviations wide.
FALSE
TRUE or FALSE? Total Quality Management is the management of an entire organization so that it excels in all quality dimensions that are important to customers.
TRUE

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