WorksheetsBUS 370 Test 1
Total questions: 74
Worksheet time: 37mins
"The planning, scheduling, and control of the activities that transform inputs into finished goods and services" is the definition of
Supply chain
Operations management
Operations function
service operations
"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
Operations function
Operations management
Supply Chain
Service Operations
Which of these is an output to a single organization's transformation process?
information
fulfilled needs
intangible needs
materials
Which of these statements about the transformation process is best?
Operations are highly dependent on the quality of inputs.
The availability of inputs usually has little impact on the operations function.
Inputs to operations usually come from only one place and take one form.
Operations activities are usually independent of other business activities such as engineering and marketing.
Which of these is NOT a flow that moves up and down the supply chain?
information
procedural
monetary
physical
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?
Radio Frequency Identification (RFID)
Relationship Management
Electronic Commerce
Increasing Competition and Globalization
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?
Increasing competition and globalization
Relationship Management
Electric Commerce
Radio Frequency Identification (RFID)
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?
Electronic Commerce
Increasing Competition and Globalization
Radio Frequency Identification (RFID)
Relationship Management
The use of information technology to automate business transactions is known as
POS
computer integrated manufacturing.
management information systems.
e-commerce.
The text indicates that which of the following is perhaps the most difficult of all the activities that operations and supply chain personnel perform?
electronic commerce
globalizing
relationship management
sourcing
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
forecasting
purchasing
capacity planning
logistics
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
logistics
purchasing
capacity planning
forecasting
The supply chain function works with marketing to manage the movement of physical goods throughout the supply chain. This supply chain activity is
logistics
forecasting
capacity planning
purchasing
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
forecasting
capacity planning
logistics
purchasing
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?
international logistics manager
analyst
sourcing manager
logistics and material planner
Critical Thinking
is the ability to learn a concept and then apply that knowledge in another setting to achieve a higher level of understanding.
depends entirely on collaboration and negotiation between operations, marketing, finance, and human resources in order to succeed.
is the ability to select and use appropriate technology to accomplish a given task.
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.
Knowledge application and analysis
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.
depends entirely on collaboration and negotiation between operations, marketing, finance, and human resources in order to succeed.
is the ability to select and use appropriate technology to accomplish a given task.
is the ability to learn a concept and then apply that knowledge in another setting to achieve a higher level of understanding.
Information technology application and computing skills
are the ability to select and use appropriate technology to accomplish a given task.
are the ability to learn a concept and then apply that knowledge in another setting to achieve a higher level of understanding.
depend entirely on collaboration and negotiation between operations, marketing, finance, and human resources in order to succeed.
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.
Which of these is NOT a key element of the operations function?
technology
systems
regulations
people
Which of the following is a structural element of a business strategy?
people
computer systems
policy
decision rules
Which of the following is an infrastructural element of a business strategy?
policies
computer systems
equipment
buildings
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?
mega-structural
infrastructural
structural
cross-structural
McDonald's invests significantly more in their equipment than Subway. This is an example of which type of strategy element?
structural
mega-structural
infrastructural
cross-structural
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.
an infrastructural
a structural
a mega-structural
a cross-structural
"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
core competency.
functional strategy.
business strategy.
mission statement.
"Translates the business strategy into specific actions and coordinates with other areas" is the definition of
mission statement.
functional strategy.
core competency.
business strategy.
"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
business strategy.
functional strategy.
core competency.
mission statement.
The firm's targeted customers and the operations and supply chain functions needed to provide value to them are identified in the
mission statement.
core competencies.
business strategy.
structural elements.
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 core competency.
an order qualifier.
a value index.
a mission.
"Performance dimensions which differentiate a company's products and services" is the definition of
order qualifier.
functional strategies.
order winner.
value index.
"Performance dimensions for which customers expect a minimum level of performance, but do not provide a competitive advantage" is the definition of
order qualifier.
functional strategies.
order winner.
value index.
"A set of logically related tasks or activities performed to achieve a defined business outcome" is the definition of
supply chain management
a process
operations management
project management
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
quality.
flexibility.
time.
cost.
A business process that addresses the main value-added activities (activities for which customers will pay) is defined as a _________ process.
secondary
support
primary
developmental
A business process such as tuition billing is a necessary, but non-value adding process. It is a
developmental process
support process
core process
primary process
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.
core
support
primary
developmental
A detailed map that identifies the specific activities that make up the informational, physical and/or monetary flows of a process is
a process map
a benchmarking map
an efficiency map
an activity on node map
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
process map
pareto chart
run chart
cause-and-effect diagram
"Comparison of an organization's processes with superior processes from a non-competitor" is the definition of
process benchmarking.
efficiency benchmarking.
competitive benchmarking.
DMAIC benchmarking.
In a swim lane process map, a decision is represented by which symbol?
diamond
rectangel
circle
letter D
In a swim process map, a change of lanes indicates
the process is complete.
an increase in the time required for processing.
a change in the party responsible for processing.
the item being processed has been physically altered.
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.
aesthetics
reliability
value
conformance
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.
value
conformance
aesthetics
reliability
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?
the value perspective
the conformance perspective
the performance perspective
the perceived quality perspective
__________ is the dimension of quality that addresses the additional characteristics of the product or service beyond the base operating features.
Performance
Features
Reliability
Aesthetics
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?
appraisal
internal failure
external failure
prevention
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?
external failure
appraisal
prevention
internal failure
Which of the following is a full-time Six Sigma expert who is responsible for Six Sigma strategy, training, mentoring, deployment and results?
champion
green belt
master black belt
black belt
The standard that extends the benefits of quality management to all parties that are interested in or affected by a business's operations is
ISO 9004:2004.
ISO 9004:2009.
ISO 9001:2004.
ISO 9001:2008.
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?
internal failure
prevention
external failure
appraisal
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?
external failure
appraisal
prevention
internal failure
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
an external failure cost.
a prevention cost.
an internal failure cost.
a reliability cost.
Which of the following statements regarding control charts is best?
Control charts should be used regardless of the state of control of the process.
Control charts, by themselves, will improve quality levels.
Control charts are used to distinguish whether the process is operating normally or requires attention.
The upper and lower limits of a control chart should be identical to the upper and lower tolerance limits for the manufactured part.
"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
continuous improvement.
total quality management.
statistical quality control.
quality functional deployment.
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.
true
false
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?
continuous improvement
quality function development (QFD)
quality assurance
employee empowerment
Which of the following is NOT one of the seven core ideas of TQM?
supplier partnerships
strategic quality plan
leadership involvement
value perspective
W. Edwards Deming is known in quality circles for his
fourteen points for management.
quality function deployment technique.
zero defects.
Six Sigma.
"The capability of a worker, machine, work center, plant or organization to produce output per time period" is the definition of
forecasting.
sourcing.
logistics.
capacity.
"The maximum output capability, allowing for no adjustments for preventative maintenance or unplanned downtime" is the definition of
theoretical capacity.
rated capacity.
managerial capacity.
over capacity.
"The long-term, expected output capability of a resource or system" is the definition of
managerial capacity.
over capacity.
rated capacity.
theoretical capacity.
Most companies measure capacity in terms of
inputs or capacity.
inputs or people.
inputs or hours.
inputs or outputs.
Which of the following will move rated capacity closer to theoretical capacity?
a decrease in the number of workers
a decrease in conformance quality
a decrease in product complexity
an increase in the frequency of preventive and breakdown maintenance
"A capacity strategy in which capacity is added in anticipation of (before) demand" is the definition of
anticipation strategy.
match strategy.
lag strategy.
lead strategy.
"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
lag strategy.
anticipation strategy.
match strategy.
lead strategy.
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 lag strategy.
a match strategy.
a lead strategy.
an anticipation strategy.
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 lead strategy.
an anticipation strategy.
a lag strategy.
a match strategy.
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 match strategy.
a lead strategy.
a lag strategy.
an anticipation strategy.
"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
decision tree theory.
waiting line theory.
theory of constraints.
learning curve theory.
"The total elapsed time needed to complete a business process (also known as throughput time)" is the definition of
efficiency.
productivity.
benchmarking
cycle time.
"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
decision tree theory.
learning curve theory.
waiting line theory.
theory of constraints.
"For every doubling of cumulative output, there is a set percentage reduction in the amount of inputs required" is the formal definition of
decision tree theory.
learning curve theory.
waiting line theory.
theory of constraints.
"The expenses an organization incurs regardless of the level of business activity" is the definition of
fixed costs.
expected value.
marginal costs.
variable costs.
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,
as the defect level increases, the failure costs increase.
as the defect level increases, the prevention cost increases.
as the defect level decreases, the failure costs increase.
as the defect level increases, the appraisal cost increases.
