Ops Chapter 2

Sustainability is

an approach to development that advocates attaining a certain minimal standard of living but not progressing beyond that minimum

the ability to continue development indefinitely into the future, with the welfare of humans being of prime concern

development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs

development that meets the needs of the present generation without compromising the ability of future generations to meet their own needs

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

True or False

False (are influenced)

Which dimension of the triple bottom line seeks to benefit its employees, the local community, and other entities that are impacted by the firm’s existence?

social

efficiency

environmental

economic

social

The operations and supply chain strategy is a part of the:

planning process

design process

competitive process

management process

planning process

Operations effectiveness is related directly to the costs of doing business

True or False

True

The competitive dimension that deals with getting the product to the customer when promised is called:

flexibility

delivery reliability

after-sale support

delivery speed

delivery reliability

Which term defines when activities are incompatible so that more of one thing necessitates less of another activity?

Straddling

Productivity

Balanced approach

Trade-off

Trade-off

Activity-system maps are useful for which of the following?

Identifying weak links in the supply chain

Assigning strategic projects to employees

Understanding the fit between system activities and company strategy

Identifying strategic themes

Understanding the fit between system activities and company strategy

Identifying strategic themes

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

innovative

leader

unique

straddling

straddling

Supply chain disruptions are:

random and predictable

deliberate and difficult to predict

unplanned and unanticipated

deliberate and predictable

unplanned and unanticipated

______ quality aims to produce defect-free products, whereas ______ quality relates to the set of features the product contains

Process, design

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

Risk planning

Risk mapping

Risk strategy

Risk forecasting

Risk mapping

Modern companies need to focus on which aspect of the triple bottom line?

Companies should only focus on social and economic

Companies should only focus on social and environmental

Companies should focus on all aspects: social, economic, and environmental

Companies should only focus on economic and environmental

Companies should focus on all aspects: social, economic, and environmental

All of the following are competitive dimensions that help to form a firm’s competitive position except:

delivery speed

retail store

flexibility

cost

retail store

A tool that shows how a company’s strategy is delivered through a set of tailored acitivties is called:

an activity-system framework

a process map

a flowchart

an activity-system maps

an activity-system maps

The key focus of design quality is that of product or service reliability

True of False

False

Steps in the risk management process

Identify the sources of potential disruption

Assess the potential impact of the risk

Develop plans to mitigate the risk

Which risk-mitigating strategy should be used if the expenses involved in mitigating the risk are more than the cost of tolerating the risk?

limit

avoid

accept

transfer

accept

Productivity measures:

the increase in cost of raw materials over time

output relative to input

the effective use of resources

output relative to input

the effective use of resources

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

multifactor

complete

total factor

partial factor

total factor

Which risk-mitigating strategy should be used if the risk has a high probability of both financial loss and damage?

avoid

transfer

accept

avoid

What are the three ways of measuring productivity?

Partial productivity measure, multifactor productivity measure, and total factor measure of productivity

Multifactor

concerned with the ratio of some output to a group of inputs

Partial factor

the ratio of some output to a SINGLE input

Shareholders

individuals or companies that legally own one or more shares of stock in the company

Stakeholders

individuals or organizations who are directly or indirectly influenced by the actions of the firm

What are the 3 areas in The Triple Bottom Line (the goal of sustainability)

Economic Prosperity, Social Responsibility, Environmental Stewardship

Operations and Supply Chain Strategy

setting broad policies and plans for using the resources of a firm - must be integrated with corporate strategy

Operations Effectiveness

performing activities in a manner that best implements strategic priorities at a minimum cost

What are the three areas of the Competitive Dimensions

Cost, quality, delivery/responsiveness

Straddling (risky)

seeking to match a successful competitor by adding features, services, or technology to existing activities

Activity-system maps

diagrams that show how a company’s strategy is delivered through a set of supporting activities

Risk

uncertainty in the environment causes supply chain planners to evaluate the relative riskiness of their operations and strategies in the face of Uncertainty in the environment

Supply chain risk

the likelihood of a disruption that would impact the ability of a company to continuously supply products or services

supply chain coordination risks

are associated with the day-to-day management of the supply chain

Disruption risks

caused by natural or manmade disasters

Risk Mitigation Strategies for specific risk

Natural Disaster: Contingency Planning

Country risks: Hedge currency, produce locally

Supplier failures: Multiple suppliers

Logistics failure: Safety stock

Productivity

a common measure of how well resources are used

Outputs / Inputs