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Worksheets5.5 to 5.6 Production review
Total questions: 25
Worksheet time: 13mins
What does SCM stand for?
Super Chain Management
Supply Control Management
Supply Chain Management
Stock Control Management
What is the primary goal of supply chain management?
Maximizing stock levels
Reducing quality control
Achieving efficient and cost-effective logistics
Expanding supplier networks
What is one of the key functions of supply chain management?
Customer service
Marketing strategy
Financial planning
Stock control
What is the primary focus of process innovation?
Creating new products
Changing the context of a product
Improving the method of production and logistics
Repositioning an established product
Which type of innovation tends to involve high risks and can be a major source of competitive advantage?
Incremental innovation
Adaptive creativity
Radical innovation
Innovative creativity
Just-in-time (JIT) is a stock control system that aims to:
Maintain large buffer stocks
Eliminate the need for storage
Maximize stockpiling
Increase lead time for orders
Just-in-case (JIC) stock control is characterized by:
Maintaining a buffer stock
Immediate dispatch of goods
Low inventory levels
No consideration of demand fluctuations
What is the main drawback of relying too heavily on just-in-case (JIC) stock control?
Increased production efficiency
Overestimation of product demand
Reduced storage costs
Risk of holding too much stock
Which of the following is NOT one of the categories of stocks or inventories mentioned?
Raw materials
Work-in-progress
Semi-finished goods
Finished goods
What is the formula for calculating capacity utilization?
Capacity utilization = Total output / Productive capacity
Capacity utilization = Total output x Productive capacity
Capacity utilization = Actual output / Number of workers
Capacity utilization = Actual output x Number of workers
High capacity utilization is financially important because it:
Increases idle resources
Decreases fixed costs
Reduces the burden of routine servicing and maintenance
Spreads out fixed and indirect costs of production
What is the key determinant of labor productivity rate?
Technology
Rivalry
Entrepreneurship
Skills and experience
When making a make-or-buy decision, what is the primary consideration?
Expected sales volume
Fixed costs
Average variable costs
Price per unit from the supplier
What is the purpose of buffer stocks in stock control?
To maintain high stock levels
To eliminate the need for storage
To act as a safety net for unforeseen changes
To reduce lead times
Effective stock control often relies on collaboration between which departments within a firm?
Marketing and finance
Marketing and human resources
Marketing and operations
Marketing and sales
What is the primary purpose of research and development (R&D) in a business?
Maximizing short-term profits
Reducing production costs
Continual advancement and innovation
Enhancing marketing strategies
What does development involve in the context of R&D?
Creating new products
Improving existing processes or products
Conducting market research
Reducing research costs
Why can the R&D process be resource-intensive for a business?
Because it requires minimal financial investment
Because it results in immediate profitability
Because it involves extensive research and testing
Because it has a short time frame
How can R&D contribute to a business's long-term survival and success?
By reducing production costs
By maximizing short-term profits
By adapting to current market trends
By fostering innovation and competitiveness
Which business went bankrupt due to its failure to adapt to digital camera technology?
Kodak
Apple
Microsoft
Sony
What did Steve Jobs famously aim to do with Apple's products?
Create products that customers already knew they needed
Create products based on customer requests
Follow market trends closely
Produce products with minimal innovation
Which type of innovation involves changing the context or perception of an established product?
Product innovation
Process innovation
Positioning innovation
Paradigm innovation
What is adaptive creativity primarily associated with?
Radical changes in products
Incremental innovation and continuity of practices
Rejection of established paradigms
High-risk innovations
What is the primary characteristic of innovative creativity?
Acceptance of current norms and practices
Focus on incremental improvements
Redefining problems and cultural norms
Preference for scientific decision-making
Why is innovative creativity considered high risk?
Because it leads to immediate profitability
Because it requires minimal resources
Because it involves unpredictable outcomes
Because it is cost-effective
