OPMT 200 Final

3. quality, inventories, and processes

fundamental areas of management in supply chain operations management include:

1. markets, processes, and sales

2. lean systems, quality, and flexibility

3. quality, inventories, and processes

4. people, equipment, and money

3. Customers are more directly involved in service processes, so their perceptions need to be considered

Which of the following challenges is most likely to be faced by service operations managers, rather than manufacturing operations managers?

1. Operations is typically less financially important in service businesses

2. Pure service operations need to be separated from pure goods-producing operations

3. Customers are more directly involved in service processes, so their perceptions need to be considered

4. The “total product experience” is more important in services

2. Structural aspects of operations management.

Joe Jones was asked to undertake a project to determine the resources and capacity his firm would need in the next three to 10 years. These types of decisions are considered to be:

1. Infrastructural aspects of operations management.

2. Structural aspects of operations management.

3. Assessment aspects of operations management.

4. Positional aspects of operations management.

1. Customers' complaints are rising.

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?

1. Customers' complaints are rising.

2. Our prices seem to be too high.

3. We are running out of cash

4. We need a new insurance policy

3. Capacity, facilities, and technology.

Structural operations management decisions include:

1. Workforce, capacity, and facilities.

2. Workforce, production planning, and materials controls.

3. Capacity, facilities, and technology.

4. Materials controls, supply chain, and value definition.

2. It is a way to view business as a system of interrelated activities.

Which of the following statements best describes “process thinking”?

1. It is a way to categorize elements of work activities.

2. It is a way to view business as a system of interrelated activities.

3. It is a way to approach work systematically.

4. It is a way to manage thought processes to make better decisions.A process is:

4. A system of activities that transforms inputs into valuable outputs.

A process is:

1. A set of planned steps used to achieve an objective.

2. A combined effort by people who want to get something done.

3. A system of decisions.

4. A system of activities that transforms inputs into valuable outputs.

3. Globalization has slowed the growth of supply chain management.

Which of the following statements is NOT true regarding supply chain management?

1. Supply chain management is about making the most of relationships with suppliers.

2. Supply chain management has grown as a result of a focus on core capabilities.

3. Globalization has slowed the growth of supply chain management.

4. Supply chain management is a way of viewing operations management.

4. Internal production.

During the "mass production" era, operations management focused primarily on:

1. The global supply chain.

2. Production and design.

3. Sales, production, and design.

4. Internal production.

3. Supply chain management is about relationships and flows, while operations management is about processes

How is “supply chain management” different than “operations management”?

1. Supply chain management focuses mainly on supplier relationships, while operations management focuses mainly on production

2. Supply chain management is external, while operations management is internal

3. Supply chain management is about relationships and flows, while operations management is about processes

4. They are exactly the same thing

4. Tier 2

Jones Manufacturing sells a part to Lear Corporation. Lear puts this part into a radio, which Lear then sells to Ford. From Ford's point of view, Jones Manufacturing is a(n) _________blank supplier.

1. Echelon 2

2. Tier 1

3. Echelon 1

4. Tier 2

4. Marketing and sales managers

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

1. Information technology managers

2. Human resource managers

3. Government regulators

4. Marketing and sales managers

4. Downstream product supplier.

Johnson Company makes widgets, which it then sends to Smith Company. Smith Company puts the widgets in packages. Smith Company is considered by Johnson to be a:

1. Aftermarket supplier.

2. Key customer.

3. Upstream product supplier.

4. Downstream product supplier.

2. How many manufacturing plants should the company operate?

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

1. Should we make this part or buy it?

2. How many manufacturing plants should the company operate?

3. Which employees should work the day shift tomorrow?

4. How should this process be organized?

4. Deciding where to locate a new manufacturing plant.

An example of strategic planning is:

1. Setting inventory levels for a given product.

2. Forecasting next week's demand of a given product item.

3. Targeting customer demand for aggregate product families.

4. Deciding where to locate a new manufacturing plant.

4. What do we do better than anyone else?

Internal questions that may be addressed in a SWOT analysis include:

1. What trends are we well positioned to take advantage of?

2. What changes in technology will affect us?

3. What obstacles do we face?

4. What do we do better than anyone else?

2. Founder’s ideology

The three elements of Value Proposition, Key Customers, and Capabilities operate within an environment. Which of the following is NOT part of that environment?

1. Regulation

2. Founder’s ideology

3. Competition

4. Technology

3. What metrics should be used to ensure progress in operations management?

Functional strategic planning involves decisions related to:

1. What types of manufacturing processes the firm should focus on.

2. What businesses should we be in?

3. What metrics should be used to ensure progress in operations management?

4. Specific product- and market-based initiatives and goals.

4. It offers the highest product quality in each quality dimension.

A well-designed value proposition possesses five characteristics. Which of the following is NOT one of those characteristics?

1. It can be reliably delivered given the operational capabilities of the firm and its supporting supply chain.

2. It satisfies the financial and strategic objectives of the firm

3. It differentiates the firm from its competition in a way that is difficult to imitate.

4. It offers the highest product quality in each quality dimension.

3. Desired outcome statement

Which of the following is NOT a component of the business model?

1. System capabilities

2. Key customer

3. Desired outcome statement

4. Value proposition

3. A product characteristic that causes customers to choose the product over that of a competitor.

Which of the following is the most appropriate definition of an "order winner"?

1. A product characteristic that permits the product to compete in a market.

2. A product that generates the highest dollar sales volume.

3. A product characteristic that causes customers to choose the product over that of a competitor.

4. A product that has the highest profit margin.

1. Low cost

A manufacturer of generic prescription drugs must excel at delivering which of the following product traits?

1. Low cost

2. Product performance

3. Features (unique attributes)

4. Durability

4. Sustainability.

Xanadu Incorporated claims that its manufacturing processes result in fewer greenhouse gases than those of its primary competitors. This suggests that Xanadu has a focus on:

1. Flexibility.

2. Risk management.

3. Profitability.

4. Sustainability.

4. System capabilities

Under which component of the business model would people and culture fall?

1. Value proposition

2. Environment

3. Key customer

4. System capabilities

1. Flexibility

Which of the following is considered a "process-related" competitive priority?

1. Flexibility

2. Quality

3. All of these

4. Cost

3. Production/design processes unique to the firm.

Which of the following is the most appropriate definition of a core capability?

1. Technical capabilities of a firm.

2. A set of products unique to a firm.

3. Production/design processes unique to the firm.

4. Reputation.

1. Cost of goods sold

A vice president of operations wants to evaluate the impact of reducing manufacturing expenses on the firm's return on assets. Which measurement should be examined?

1. Cost of goods sold

2. Net profit margin

3. Asset turnover

4. None of these

2. Establish metric-based performance measures.

You are an upper-level manager in a firm. You believe that corporate objectives are not effectively disseminated throughout the organization and that line-level managers do not take them into account in their decision making. Which of the following would best help you to try to correct this problem?

1. Evaluate and increase manager salaries and benefits.

2. Establish metric-based performance measures.

3. Hold a series of supervisory manager meetings.

4. Evaluate personality indicators to ensure inter-departmental worker compatibility.

2. fit

"When operational capabilities are consistent with and supportive of the value proposition and the outcomes desired by key customers" - this statement best describes the concept of:

1. flexibility

2. fit

3. strategic planning

4. execution

2. 85%

Under Juran's Law, whenever a problem occurs, what percentage of the time is the problem the result of a system/process error?

1. 100%

2. 85%

3. 15%

4. 50%

1. Information flows and material flows.

Most processes involve two basic types of flows:

1. Information flows and material flows.

2. Information flows and operator flows.

3. Product flows and decision flows.

4. Physical flows and security flows.

4. delay

You walk into a hair stylist shop. All stylists are busy, and you sit in the waiting area. You are in which of the following basic activity types in a process?

1. storage

2. you are not in a process activity

3. operation

4. delay

4. Delays are uncontrolled; storage is a planned part of a process.

Which of the following statements best differentiates a delay from storage?

1. Delays require control; storages does not.

2. There is no difference – they both refer to the same concept.

3. Delays are planned activities; storages are not.

4. Delays are uncontrolled; storage is a planned part of a process.

4. structure

A manager is currently unhappy with the capabilities of a particular process and wants to improve its capabilities. To accomplish this, the manager needs to focus on the process:

1. Inputs, outputs, and flows.

2. activities

3. management metrics

4. structure

3. Economies of scale refers to the fact that as volume increases, total cost of production decreases.

Which of the following statements about economies of scale is NOT true?

1. Economies of scale may not exist at all levels of production.

2. One reason economies of scale occur is because employees become more efficient as volume increases.

3. Economies of scale refers to the fact that as volume increases, total cost of production decreases.

4. One reason economies of scale occur is because fixed costs can be spread over more units of production as output increases.

2. maximum capacity

Joe Jones, plant manager at Waco Industries, told a friend that if it was necessary, his plant could produce 1,000 items a day if all conditions were just right. Joe is describing his plant's:

1. effective capacity

2. maximum capacity

3. yield rate

4. utilization

2. shorter flow times

Little's Law suggests that the key to increased throughput is:

1. fewer defects

2. shorter flow times

3. eliminating waste

4. increased inspection

1. medium-term

Subcontracting is typically considered at what time horizon when doing capacity planning?

1. medium-term

2. It is not part of the capacity planning process.

3. short-term

4. long-term

1. Managing the flow of work into the system.

Which of the following actions will NOT increase output?

1. Managing the flow of work into the system.

2. Outsourcing.

3. Changing the processes to eliminate unnecessary steps.

4. Increasing capacity through physical additions.

2. Decrease in output and increase in lead-times.

Which of the following pairs of effects directly result from bottlenecks?

1. Decrease in inspections and increase in costs.

2. Decrease in output and increase in lead-times.

3. Increase in costs and increase in defects.

4. Increase in output and increase in lead-times.

2. all of these

Inventory held due to bottlenecks in a process causes:

1. increased labor costs

2. all of these

3. increased storage requirements

4. quality issues

4. The predictability of the process is significantly improved.

If a company can eliminate all sources of variance in a process:

1. There will be no constraints in the process.

2. It will be able to operate at maximum capacity at all times.

3. Continuous improvement will not be necessary.

4. The predictability of the process is significantly improved.

1. Because that is where we get “the most bang for our buck.”

In process improvement projects, why should we focus our efforts on those processes that consume the most resources (e.g., labor, space, capital, etc.)?

1. Because that is where we get “the most bang for our buck.”

2. Because those are the processes that use our firm’s core capabilities

3. All of these

4. Because those are the processes most visible to the customer

3. Innovation investments need to be matched to the phase of a product’s life

Understanding the product life cycle is important because:

1. Major process innovations typically occur in the growth stage

2. All products follow the same pattern of innovation

3. Innovation investments need to be matched to the phase of a product’s life

4. The time between product launch and decline is typically very long

2. All of these are reasons why innovation drives firm performance

Why is product or process innovation an important driver of firm performance?

1. Product design decisions largely affect supply chain costs

2. All of these are reasons why innovation drives firm performance

3. Strong innovators can respond to market opportunities faster

4. Innovative firms typically have stronger brands

1. maturity

The stage of the product life cycle in which process innovation becomes an important way to increase efficiencies is:

1. maturity

2. launch

3. growth

4. decline

1. codevelopment

An emphasis on involving supply chain partners in product/process innovation is known as:

1. codevelopment

2. design outsourcing

3. portfolio planning

4. launch and learn

1. Research and advanced development project.

A project aimed at finding new core products or processes is called a(n):

1. Research and advanced development project.

2. Enhancement development project.

3. New platform development project.

4. Next generation development project.

3. They produce a more continuous stream of new product introductions that create a greater and more constant market awareness of their brands.

Fast innovators typically gain which advantages?

1. All of these.

2. They can sell at lower prices or lower the total sales needed for a new product to pay back its initial development costs.

3. They produce a more continuous stream of new product introductions that create a greater and more constant market awareness of their brands.

4. They have fewer problems in launching new products and fewer failures in the marketplace.

1. All of these are benefits

The main benefit of integrated or concurrent product development is:

1. All of these are benefits

2. Faster product development

3. Earlier problem solving

4. Reduced launch and production costs

3. A way to get ideas or services from a large number of sources, usually online

“Crowdsourcing” is:

1. A way to identify and hire the best and brightest new employees

2. A way to design products that satisfy the largest number of people

3. A way to get ideas or services from a large number of sources, usually online

4. Not used for process innovation, mostly only for product innovation

4. detailed design and development

Companies usually first build working product prototypes in which stage of product/process innovation?

1. commercialization

2. market testing

3. concept development

4. detailed design and development

2. The simultaneous design and development of all the processes and information needed to manufacture a product, to sell it, to distribute it, and to service it.

"Concurrent engineering" is best described as:

1. The simultaneous implementation of engineering projects critical to the manufacture of new products.

2. The simultaneous design and development of all the processes and information needed to manufacture a product, to sell it, to distribute it, and to service it.

3. Assigning multiple engineers to a project to ensure the accuracy of the work.

4. Engineering techniques that seek to capture leading-edge knowledge and technology in the design phase of a new product.

4. All of these are correct.

Integrated/concurrent engineering is needed in innovation projects because:

1. All functions have a stake in the success of a new product.

2. It is cheaper to solve problems uncovered early in development.

3. Process design decisions are dependent on product design decisions.

4. All of these are correct.

2. DFM

Xanadu Incorporated has a project team interested in reducing the projected production cost of a new product. The team would find which one of the following tools most useful?

1. CAD/CAE

2. DFM

3. QFD

4. FMEA

4. virtual prototyping

Another way to think of how virtual reality is used in product development is:

1. customer engagement

2. augmented design

3. 3D printing

4. virtual prototyping

2. None of these are disadvantages.

A disadvantage of "component standardization" is that it:

1. Increases development cost.

2. None of these are disadvantages.

3. Increases the difficulty of inventory management.

4. Increases development time.

4. Planning and scheduling are difficult

One of the major challenges with a job shop process is that:

1. Many activities must be outsourced to a variety of different suppliers

2. It is very costly to stop production

3. Employees become bored from doing the same task over and over again

4. Planning and scheduling are difficult

3. Continuous process structure.

Jones Company has a make to order orientation. It most likely does NOT use:

1. Batch process structure.

2. Job shop process structure.

3. Continuous process structure.

4. Cellular manufacturing process structure.

2. continuous process

Which process structure is most likely used by a company that makes plastic water bottles?

1. job shop

2. continuous process

3. project

4. batch

1. repetitive process

Companies with a make to stock orientation are most likely to use which of the following process structures?

1. repetitive process

2. job shop

3. They are likely to use any one of these process structures.

4. mass customization

4. Easier customization of services.

All of the following are potential benefits of decoupling front and back offices in service processes EXCEPT:

1. Economies of scale.

2. Use of remotely located back-office employees.

3. Standardization across multiple locations.

4. Easier customization of services.

3. a computer repair shop

Which of the following is the best example of a service shop?

1. A fast-food restaurant such as McDonald’s

2. a dentist

3. a computer repair shop

4. an electrical utility company

3. precedence diagram

In line balancing, the relationships between among tasks in a process is are shown in a:

1. followers diagram

2. service blueprint

3. precedence diagram

4. product families diagram

2. Work-in-process inventory is typically very high

Which of the following is NOT a drawback to a product layout?

1. Lack of flexibility to change product features

2. Work-in-process inventory is typically very high

3. The potential for employee boredom

4. A problem at any workstation can stop the entire production line

1. fixed-position layout

Ensuring that all the right people, equipment, and materials arrive on time is especially challenging when using which layout?

1. fixed-position layout

2. product layout

3. service factory layout

4. functional layout

2. functional layout

John Jones, CEO of Jones Corporation, is unhappy because each product his company makes takes a unique route through the facility, so processing times tend to be high. His company most likely has a:

1. fixed-position layout

2. functional layout

3. sequential action layout

4. product layout

4. Enterprise resource planning (ERP) system.

An example of an integrative technology is a/an:

1. Transportation management system.

2. industrial robot

3. Radio frequency identification (RFID) system.

4. Enterprise resource planning (ERP) system.

2. CRM

Which of the following would not be considered processing technology?

1. collaborative robots

2. CRM

3. chatbots

4. additive manufacturing

2. Higher for smaller suppliers that have fewer resources

Cybersecurity risks are:

1. Decreasing as more companies adopt Internet of Things (IoT)

2. Higher for smaller suppliers that have fewer resources

3. Leading to more offshoring

4. Only a concern for mobile apps

3. To provide protection against the uncertainties of supply and demand.

Safety stock exists for which of the following reasons?

1. None of these selections.

2. To allow less expensive purchases by buying more.

3. To provide protection against the uncertainties of supply and demand.

4. To allow for transportation time.

3. Raw materials and components inventory.

Ball Corporation sells aluminum cans to Anheuser-Busch to use in making six-packs of Budweiser. Anheuser-Busch has a warehouse located at its plant in St. Louis that contains boxes of empty cans received from Ball. From Anheuser-Busch's perspective, the cans in this warehouse represent:

1. Work in process inventory.

2. Finished goods inventory.

3. Raw materials and components inventory.

4. MRO inventory

2. order cost

John Jones of Jones Corporation determined that the cost related to processing an invoice from a supplier was approximately $100 per invoice. This cost is an example of:

1. inventory investment

2. order cost

3. wasted expense

4. inventory holding (carrying) cost

3. 40%

Suppose your company decides to create a more “service-oriented” distribution network by doubling the number of independently operated stores located around the country. Assuming demands are spread equally across the stores and inventory policies continue to be optimized, how much would you expect total cycle and safety stocks to increase?

1. 100%

2. 250%

3. 40%

4. 25%

3. Pareto’s law

The ABC analysis used for analyzing inventory is an example of:

1. regression analysis

2. inventory carrying cost

3. Pareto’s law

4. safety stock calculation

3. All of these selections.

Which of the following might a company try to do to reduce the total amount of safety stock it holds?

1. Attempt to reduce variation in supplier lead times.

2. Implement and use ABC analysis of inventory items.

3. All of these selections.

4. Implement demand management approaches.

5. Customers recommend to suppliers how they should schedule production.

Which of the following is NOT often associated with supplier-managed inventory (SMI) arrangements?

1. Long-term commitments from both parties.

2. Supplier places replenishment orders.

3. Supplier representative located at the customer site.

4. All of these are typically associated with SMI

5. Customers recommend to suppliers how they should schedule production.

5. 1 only

Which of the following is (are) advantage(s) of full partnerships with suppliers, as compared to traditional adversarial relationships?

1. They help reduce uncertainties for both buyer and supplier.

2. The full partnership is easier to establish and maintain than other relationships, so more suppliers can be dealt with.

3. The full partnership assures the lowest material price.

1. 2 & 3 only

2. 2 only

3. 3 only

4. 1 & 2 only

5. 1 only

4. Local, close to its production plant when possible.

A global food products company makes soups that are specifically tailored to the tastes of consumers in individual countries. What sourcing strategy is the company likely to use for its fresh ingredients such as vegetables?

1. Global, using the same suppliers across the world.

2. Low-cost country sourcing.

3. National, using suppliers within each country.

4. Local, close to its production plant when possible.

Which of the following is NOT true with respect to an RFQ or RFP?

1. It describes the purchase requirements.

2. It is used to determine weights in supplier scorecards.

3. It is often communicated to suppliers electronically.

4. It is the first step in competitive bidding.

4. sourcing

The identification, evaluation, selection, and management of suppliers is:

1. supply management

2. spend analysis

3. supply chain management

4. sourcing

2. bottleneck

Moderate- to high-risk purchases with low to moderate levels of spend are categorized as:

1. noncritical

2. bottleneck

3. strategic

4. leverage

4. Building collaborative partnerships with suppliers.

Stainless steel is an important raw material for an appliance company. Steel accounts for a high level of spend and is critical to customer satisfaction. Further, only three suppliers worldwide can produce steel to meet the company’s quality standards. Which is appropriate in this situation?

1. Using competition to select suppliers.

2. Finding substitute materials.

3. Using electronic catalogs for steel

4. Building collaborative partnerships with suppliers.

4. Early supplier involvement is needed in new product development.

Negotiation is typically used when:

1. price is the most important factor.

2. There are standard product specifications that are clear and complete.

3. There are many equally qualified suppliers who are willing to compete.

4. Early supplier involvement is needed in new product development.

4. A strategically important part.

Zanda Corporation is considering trying to develop a full partnership with a particular supplier. This suggests that the item Zanda buys from the supplier is:

1. An item appropriate for a "leverage" strategy.

2. A noncritical part.

3. A "bottleneck" item.

4. A strategically important part.

4. supply chain resilience

The capability to resist and recover from supply chain disruptions is:

1. total cost of ownership

2. sustainability

3. supply chain risk

4. supply chain resilience

4. Single source.

Squeaky Klean, a small consumer products company, purchases custom-designed plastic bottles for its cleaning products that are made at a single plant in Cleveland, Ohio. To make these bottles, specialized tooling must be purchased at a high cost and installed at a supplier's plant. Its sourcing strategy for bottles should be to:

1. Use three or more suppliers.

2. Insource bottle production.

3. Dual source.

4. Single source.

3. Planning for the negotiation.

The most important stage in the negotiation process is:

1. When the contract is signed.

2. Forming the negotiating team.

3. Planning for the negotiation.

4. The face-to-face meeting.

3. Conducting a detailed internal audit of purchasing practices

Which of the following would NOT be a step in conducting an insourcing/outsourcing analysis?

1. Assessing the relationship of the product to the firm's core competencies

2. Evaluating new suppliers who could make the SKU

3. Conducting a detailed internal audit of purchasing practices

4. Assessing quantitative costs of outsourcing

2. Neither, they both have the same weighted score.

Advanced Manufacturing Company is evaluating two suppliers for a component sourcing. After much internal discussion, AMC's management has determined that the critical factors in choosing suppliers are: quality, delivery, price, and service. Further, management has rated the importance of these factors as 0.4, 0.3, 0.2, and 0.1, respectively. On a scale of 1 to 5, Supplier A is rated at 5, 3, 3, and 3, respectively. Supplier B's ratings are 4, 4, 3, and 4. Which supplier has the better-weighted score?

1. supplier B

2. Neither, they both have the same weighted score.

3. supplier A

3. adversarial relationship

A relationship with a supplier that is characterized by high levels of distrust, little communication, and short-term transactions is called a(n):

1. full partnership

2. arm’s-length relationship

3. adversarial relationship

4. acceptance of mutual goals

3. production of tires

Which activity is most likely to be outsourced by an automotive company such as Ford Motor Company?

1. the concept design for future cars

2. final car assembly

3. production of tires

4. design of the engine

2. equitability

When people and profit intersect, from a sustainability perspective, which of the following areas is most impacted?

1. sustainability

2. equitability

3. bearability

4. viability

3. ISO 14000

Which of the following environmental initiatives/programs deals most specifically with the firm's environmental management system?

1. The Kyoto Protocol

2. LEED certification

3. ISO 14000

4. Responsible Care

3. responsible care

Which of the following environmental initiatives/programs is an example of an industry-specific program aimed at improving environmental performance?

1. ISO 14000

2. LEED certification

3. responsible care

4. the Kyoto Protocol

2. usage

BMW has introduced a program of covered scheduled maintenance for its cars. That is, when you bring in your vehicle for maintenance at a BMW dealership, BMW will cover the costs of everything (except for worn-out tires). This practice specifically targets which stage of the product life cycle?

1. disposal

2. usage

3. extraction

4. packaging/transportation

3. packaging/transportation

Over which stage of the product's life cycle does operations management have the greatest amount of direct control?

1. extraction

2. usage

3. packaging/transportation

4. disposal

1. fair trade

Which of the following programs/initiatives strives to improve the lives of suppliers and their families?

1. fair trade

2. responsible care

3. LEED

4. ISO 14000

2. The means of motivating the workforce domestically may not work well in a different country.

Zanda Corporation has always operated within one country. It is contemplating opening production facilities in another country. Zanda should realize:

1. The same business model that is used domestically should apply to the foreign country.

2. The means of motivating the workforce domestically may not work well in a different country.

3. The technology used domestically is often the best to use in a different country.

4. Production processes used domestically should work well in a different country.

2. DEI

Which of the following initiatives is most concerned with how the organization deals with people?

1. fair trade

2. DEI

3. ISO 14001

4. ISO 9001:2015