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BUS 370 Test 1

Total questions: 74

Worksheet time: 37mins

Name
Class
Date
1.

​"The planning,​ scheduling, and control of the activities that transform inputs into finished goods and​ services" is the definition of

a)

Supply chain

b)

Operations management

c)

Operations function

d)

service operations

2.

​"A network of manufacturers and service providers that work together to convert and move goods from the raw materials stage through to the end​ user" is the definition of

a)

Operations function

b)

Operations management

c)

Supply Chain

d)

Service Operations

3.

Which of these is an output to a single​ organization's transformation​ process?

a)

information

b)

fulfilled needs

c)

intangible needs

d)

materials

4.

Which of these statements about the transformation process is​ best?

a)

Operations are highly dependent on the quality of inputs.

b)

The availability of inputs usually has little impact on the operations function.

c)

Inputs to operations usually come from only one place and take one form.

d)

Operations activities are usually independent of other business activities such as engineering and marketing.

5.

Which of these is NOT a flow that moves up and down the supply​ chain?

a)

information

b)

procedural

c)

monetary

d)

physical

6.

A decade​ ago, most music was sold as physical CDs in music stores.​ Companies, such as​ Apple, sell music over the internet. In this​ example, by effectively utilizing information technology to automate this business​ transaction, Apple exhibits which of the following important trends in supply chain​ management?

a)

Radio Frequency Identification (RFID)

b)

Relationship Management

c)

Electronic Commerce

d)

Increasing Competition and Globalization

7.

A retailer cooperates with a manufacturer by coordinating promotional activities​ (items they plan to put on sale and advertise​ heavily) with the manufacturer to assist the manufacturer plan production and inventory. This is an example of which of the following important trends in operations and supply chain​ management?

a)

Increasing competition and globalization

b)

Relationship Management

c)

Electric Commerce

d)

Radio Frequency Identification (RFID)

8.

A U.S. equipment manufacturer finds a less expensive source of supply in China for steel forgings currently purchased from a United​ State's supplier. The manufacturer switches from the U.S. to the Chinese forging supplier. This is an example of which of the following important trends in operations and supply chain​ management?

a)

Electronic Commerce

b)

Increasing Competition and Globalization

c)

Radio Frequency Identification​ (RFID)

d)

Relationship Management

9.

The use of information technology to automate business transactions is known as

a)

POS

b)

computer integrated manufacturing.

c)

management information systems.

d)

​e-commerce.

10.

The text indicates that which of the following is perhaps the most difficult of all the activities that operations and supply chain personnel​ perform?

a)

electronic commerce

b)

globalizing

c)

relationship management

d)

sourcing

11.

The supply chain function works with finance and accounting on determining capital investments in manufacturing plants and resource​ levels, such as workforce. This supply chain activity is

a)

forecasting

b)

purchasing

c)

capacity planning

d)

logistics

12.

The supply chain function works with marketing and engineering to identify and qualify suppliers of goods and services as well as manage​ on-going supplier relationships. This supply chain activity is

a)

logistics

b)

purchasing

c)

capacity planning

d)

forecasting

13.

The supply chain function works with marketing to manage the movement of physical goods throughout the supply chain. This supply chain activity is

a)

logistics

b)

forecasting

c)

capacity planning

d)

purchasing

14.

The supply chain function works with marketing to develop planning​ numbers, such as customer demand and availability of​ supply, which are needed for effective decision making. This supply chain activity is

a)

forecasting

b)

capacity planning

c)

logistics

d)

purchasing

15.

Which of these operations and supply chain management career paths works closely with​ manufacturing, marketing, and purchasing to create​ timely, cost-effective​ import/export supply​ chains?

a)

international logistics manager

b)

analyst

c)

sourcing manager

d)

logistics and material planner

16.

Critical Thinking

a)

is the ability to learn a concept and then apply that knowledge in another setting to achieve a higher level of understanding.

b)

depends entirely on collaboration and negotiation between​ operations, marketing,​ finance, and human resources in order to succeed.

c)

is the ability to select and use appropriate technology to accomplish a given task.

d)

involves purposeful and​ goal-directed thinking used to define and solve​ problems, make​ decisions, or form judgments related to a particular situation or set of circumstances.

17.

Knowledge application and analysis

a)

involves purposeful and​ goal-directed thinking used to define and solve​ problems, make​ decisions, or form judgments related to a particular situation or set of circumstances.

b)

depends entirely on collaboration and negotiation between​ operations, marketing,​ finance, and human resources in order to succeed.

c)

is the ability to select and use appropriate technology to accomplish a given task.

d)

is the ability to learn a concept and then apply that knowledge in another setting to achieve a higher level of understanding.

18.

Information technology application and computing skills

a)

are the ability to select and use appropriate technology to accomplish a given task.

b)

are the ability to learn a concept and then apply that knowledge in another setting to achieve a higher level of understanding.

c)

depend entirely on collaboration and negotiation between​ operations, marketing,​ finance, and human resources in order to succeed.

d)

involve purposeful and​ goal-directed thinking used to define and solve​ problems, make​ decisions, or form judgments related to a particular situation or set of circumstances.

19.

Which of these is NOT a key element of the operations​ function?

a)

technology

b)

systems

c)

regulations

d)

people

20.

Which of the following is a structural element of a business​ strategy?

a)

people

b)

computer systems

c)

policy

d)

decision rules

21.

Which of the following is an infrastructural element of a business​ strategy?

a)

policies

b)

computer systems

c)

equipment

d)

buildings

22.

​McDonald's focuses the employee on a specific task such as cashier or grill cook. Subway employees have broad skills and can run the entire restaurant by themselves. The choice of employee roles is an example of which of the following types of business​ elements?

a)

​mega-structural

b)

infrastructural

c)

structural

d)

​cross-structural

23.

​McDonald's invests significantly more in their equipment than Subway. This is an example of which type of strategy​ element?

a)

structural

b)

​mega-structural

c)

infrastructural

d)

​cross-structural

24.

A company approves a large capital investment and implements a global computer system​ (for example, an Enterprise Resource Planning system such as​ SAP). This decision is​ ___________ element of their strategy.

a)

an infrastructural

b)

a structural

c)

a​ mega-structural

d)

a​ cross-structural

25.

​"Organizational strengths or​ abilities, developed over a long time​ period, that customers find valuable and competitors find difficult or even impossible to​ copy" is the definition of

a)

core competency.

b)

functional strategy.

c)

business strategy.

d)

mission statement.

26.

​"Translates the business strategy into specific actions and coordinates with other​ areas" is the definition of

a)

mission statement.

b)

functional strategy.

c)

core competency.

d)

business strategy.

27.

"A mechanism for coordinating and guiding decisions regarding the elements of a business—identifies core competencies and targeted​ customers; sets time frames and performance​ objectives" is the definition of

a)

business strategy.

b)

functional strategy.

c)

core competency.

d)

mission statement.

28.

The​ firm's targeted customers and the operations and supply chain functions needed to provide value to them are identified in the

a)

mission statement.

b)

core competencies.

c)

business strategy.

d)

structural elements.

29.

No other company in the world is as proficient at​ "just-in-time" production as Toyota. This technique is a great competitive advantage for them and is clearly

a)

a core competency.

b)

an order qualifier.

c)

a value index.

d)

a mission.

30.

​"Performance dimensions which differentiate a​ company's products and​ services" is the definition of

a)

order qualifier.

b)

functional strategies.

c)

order winner.

d)

value index.

31.

​"Performance dimensions for which customers expect a minimum level of​ performance, but do not provide a competitive​ advantage" is the definition of

a)

order qualifier.

b)

functional strategies.

c)

order winner.

d)

value index.

32.

​"A set of logically related tasks or activities performed to achieve a defined business​ outcome" is the definition of

a)

supply chain management

b)

a process

c)

operations management

d)

project management

33.

Companies must prioritize and determine the performance dimensions on which they will focus and excel. Each performance dimension has several​ sub-dimensions. Performance,​ conformance, and reliability are​ sub-dimensions of

a)

quality.

b)

flexibility.

c)

time.

d)

cost.

34.

A business process that addresses the main​ value-added activities​ (activities for which customers will​ pay) is defined as a​ _________ process.

a)

secondary

b)

support

c)

primary

d)

developmental

35.

A business process such as tuition billing is a​ necessary, but​ non-value adding process. It is a

a)

developmental process

b)

support process

c)

core process

d)

primary process

36.

A business process such as forming a team within a company focused on improving the time it takes to issue a bill and collect payment from customers​ (lowering Days Sales Outstanding​ - DSO) is a​ _____________ process.

a)

core

b)

support

c)

primary

d)

developmental

37.

A detailed map that identifies the specific activities that make up the​ informational, physical​ and/or monetary flows of a process is

a)

a process map

b)

a benchmarking map

c)

an efficiency map

d)

an activity on node map

38.

Employees that are scattered across a large corporate campus meet to determine exactly how the BR549 forms are processed. The best tool for displaying the route these forms take is a

a)

process map

b)

pareto chart

c)

run chart

d)

cause-and-effect diagram

39.

​"Comparison of an​ organization's processes with superior processes from a​ non-competitor" is the definition of

a)

process benchmarking.

b)

efficiency benchmarking.

c)

competitive benchmarking.

d)

DMAIC benchmarking.

40.

In a swim lane process​ map, a decision is represented by which​ symbol?

a)

diamond

b)

rectangel

c)

circle

d)

letter D

41.

In a swim process​ map, a change of lanes indicates

a)

the process is complete.

b)

an increase in the time required for processing.

c)

a change in the party responsible for processing.

d)

the item being processed has been physically altered.

42.

The American Society for Quality has a two part definition of quality. One perspective on quality is​ "a product or service free from​ deficiencies; the product performs as​ intended." This is the​ ____________ perspective on quality.

a)

aesthetics

b)

reliability

c)

value

d)

conformance

43.

The American Society for Quality has a two part definition of quality. One perspective on quality is​ "the characteristics of a product or service that bear on its ability to satisfy stated or implied needs of the​ customer, also known as fitness for​ use." This is the​ ____________ perspective on quality.

a)

value

b)

conformance

c)

aesthetics

d)

reliability

44.

The operations manager made sure that all processes were producing output exactly the way the design engineers had drawn it up. Which view of quality is in​ evidence?

a)

the value perspective

b)

the conformance perspective

c)

the performance perspective

d)

the perceived quality perspective

45.

​__________ is the dimension of quality that addresses the additional characteristics of the product or service beyond the base operating features.

a)

Performance

b)

Features

c)

Reliability

d)

Aesthetics

46.

In the Dittenhoefer Fine China​ case, a worker found that the plates had around 2.4 microns of coating applied. Manufacturing was able to correct the problem and save these​ plates, but no one knew how many plates had been shipped before the problem was discovered.

The plates that were already shipped before the problem was corrected resulted in which of the following type of quality​ costs?

a)

appraisal

b)

internal failure

c)

external failure

d)

prevention

47.

Companies focused on improving quality hire Six Sigma Black Belts to work on identifying the root cause of problems and implementing solutions. Hiring Black Belts to keep defects from occurring to begin with results in which of the following type of quality​ costs?

a)

external failure

b)

appraisal

c)

prevention

d)

internal failure

48.

Which of the following is a​ full-time Six Sigma expert who is responsible for Six Sigma​ strategy, training,​ mentoring, deployment and​ results?

a)

champion

b)

green belt

c)

master black belt

d)

black belt

49.

The standard that extends the benefits of quality management to all parties that are interested in or affected by a​ business's operations is

a)

ISO​ 9004:2004.

b)

ISO​ 9004:2009.

c)

ISO​ 9001:2004.

d)

ISO​ 9001:2008.

50.

In the Dittenhoefer fine china​ case, a worker set the polymer coating machine to 190 degrees to clean the machine and forgot to reset the temperature for production. Dittenhoefer destroyed the​ 2,400 defective plates prior to delivery to the customer.

The destruction of​ 2,400 plates resulted in which of the following type of quality​ costs?

a)

internal failure

b)

prevention

c)

external failure

d)

appraisal

51.

In the Dittenhoefer fine china​ case, workers visually inspected finished items for defects such as chips or cracks. The time and labor cost associated with this inspection resulted in which of the following type of quality​ costs?

a)

external failure

b)

appraisal

c)

prevention

d)

internal failure

52.

The florist checked over the arrangement just prior to loading the vase in the delivery van. It was​ fortunate, because he noticed that lilacs had been included in the arrangement. The customer specifically requested​ "no lilacs," so the florist was able to remove them and make the order right before it left the office for the customer.

This scenario is an example of

a)

an external failure cost.

b)

a prevention cost.

c)

an internal failure cost.

d)

a reliability cost.

53.

Which of the following statements regarding control charts is​ best?

a)

Control charts should be used regardless of the state of control of the process.

b)

Control​ charts, by​ themselves, will improve quality levels.

c)

Control charts are used to distinguish whether the process is operating normally or requires attention.

d)

The upper and lower limits of a control chart should be identical to the upper and lower tolerance limits for the manufactured part.

54.

​"Managing the entire organization so that it excels in all dimensions important to the​ customer, including product​ development, marketing and supply​ chain" is the definition of

a)

continuous improvement.

b)

total quality management.

c)

statistical quality control.

d)

quality functional deployment.

55.

Total quality management​ (TQM) and Six Sigma are​ equivalent, the latter is simply the latest name for the same set of techniques pioneered by W Edwards Deming.

a)

true

b)

false

56.

Which of the following is a principle of TQM that assumes there will always be room for​ improvement, no matter how well an organization is​ doing?

a)

continuous improvement

b)

quality function development​ (QFD)

c)

quality assurance

d)

employee empowerment

57.

Which of the following is NOT one of the seven core ideas of​ TQM?

a)

supplier partnerships

b)

strategic quality plan

c)

leadership involvement

d)

value perspective

58.

W. Edwards Deming is known in quality circles for his

a)

fourteen points for management.

b)

quality function deployment technique.

c)

zero defects.

d)

Six Sigma.

59.

​"The capability of a​ worker, machine, work​ center, plant or organization to produce output per time​ period" is the definition of

a)

forecasting.

b)

sourcing.

c)

logistics.

d)

capacity.

60.

​"The maximum output​ capability, allowing for no adjustments for preventative maintenance or unplanned​ downtime" is the definition of

a)

theoretical capacity.

b)

rated capacity.

c)

managerial capacity.

d)

over capacity.

61.

​"The long-term, expected output capability of a resource or​ system" is the definition of

a)

managerial capacity.

b)

over capacity.

c)

rated capacity.

d)

theoretical capacity.

62.

Most companies measure capacity in terms of

a)

inputs or capacity.

b)

inputs or people.

c)

inputs or hours.

d)

inputs or outputs.

63.

Which of the following will move rated capacity closer to theoretical​ capacity?

a)

a decrease in the number of workers

b)

a decrease in conformance quality

c)

a decrease in product complexity

d)

an increase in the frequency of preventive and breakdown maintenance

64.

​"A capacity strategy in which capacity is added in anticipation of​ (before) demand" is the definition of

a)

anticipation strategy.

b)

match strategy.

c)

lag strategy.

d)

lead strategy.

65.

​"A capacity strategy in which capacity is added only after demand has materialized—typically

a good strategy for​ mature, cost sensitive products and​ services" is the definition of

a)

lag strategy.

b)

anticipation strategy.

c)

match strategy.

d)

lead strategy.

66.

One capacity strategy has advantages which include​ "assures adequate capacity to meet all demand and preempts​ competitors" and risks which include​ "demand is unpredictable and technology is evolving​ rapidly."

This capacity strategy is

a)

a lag strategy.

b)

a match strategy.

c)

a lead strategy.

d)

an anticipation strategy.

67.

One capacity strategy has advantages which include​ "reduced risk of overbuilding and greater productivity due to higher utilization​ levels" and risks which include​ "reduced availability of products or services during periods of high​ demand."

This capacity strategy is


a)

a lead strategy.

b)

an anticipation strategy.

c)

a lag strategy.

d)

a match strategy.

68.

A company is considering building a hotel in downtown Raleigh. They decide to build the hotel in anticipation of demand because they want to make sure they have adequate capacity to meet all demand and would like to preempt the competition.

This capacity strategy is

a)

a match strategy.

b)

a lead strategy.

c)

a lag strategy.

d)

an anticipation strategy.

69.

​"An approach to visualizing and managing capacity that recognizes that nearly all products and services are created through a series of linked​ process, and in every​ case, there is at least one process step that limits throughput for the entire​ chain" is the formal definition of

a)

decision tree theory.

b)

waiting line theory.

c)

theory of constraints.

d)

learning curve theory.

70.

​"The total elapsed time needed to complete a business process​ (also known as throughput​ time)" is the definition of

a)

efficiency.

b)

productivity.

c)

benchmarking

d)

cycle time.

71.

​"A body of theory based on applied statistics that helps managers evaluate the relationship between capacity decisions and important performance​ issues" is the formal definition of

a)

decision tree theory.

b)

learning curve theory.

c)

waiting line theory.

d)

theory of constraints.

72.

​"For every doubling of cumulative​ output, there is a set percentage reduction in the amount of inputs​ required" is the formal definition of

a)

decision tree theory.

b)

learning curve theory.

c)

waiting line theory.

d)

theory of constraints.

73.

​"The expenses an organization incurs regardless of the level of business​ activity" is the definition of

a)

fixed costs.

b)

expected value.

c)

marginal costs.

d)

variable costs.

74.

Regardless of whether the traditional view of the total cost of quality or the zero defects view of the total cost of quality is​ taken,

a)

as the defect level​ increases, the failure costs increase.

b)

as the defect level​ increases, the prevention cost increases.

c)

as the defect level​ decreases, the failure costs increase.

d)

as the defect level​ increases, the appraisal cost increases.