operations and supply chain management final exam Questions And Answers

Which of the following statements about operations management processes is NOT true? - ANS Outputs of operations management processes are always tangible goods. Operations management and supply chain management has grown because - ANS Technology has facilitated globalization. Operations management is important because - ANS It affects the quality of life of workers and consumers. Which of the following statements best describes "process thinking"? - ANS It is a way to view business as a system of interrelated activities While there is overlap between operations management and supply chain management, the two are different in that: - ANS Operations management focuses on processes, supply chain management focuses on relationships and flows. Which of the following is the most appropriate definition of an "order winner"? - ANS A product characteristic that causes customers to choose the product over that of a competitor. Within the supply chain and operations management system, the value proposition is most effectively communicated to the rest of the organization through which of the following mechanisms? - ANS Performance measures Functional strategic planning involves decisions related to: - ANS All of these A well-designed value proposition possesses five characteristics. Which of the following is NOT one of those characteristics? - ANS It offers the highest product quality in each quality dimension. core capability - ANS A set of products unique to a firm. Understanding the product life cycle is important because: - ANS Innovation investments need to be matched to the phase of a product's life. Cross-functional integration is needed in innovation projects because: - ANS All of these are correct. Why is product/process innovation an important driver of firm performance? - ANS All of these are reasons why innovation drives firm performance. Which of the following statements is true regarding innovation portfolio planning? - ANS Each innovation project should be evaluated on its own merits, independent of other projects a firm is pursuing. The primary difference between integrated or concurrent engineering development and functional/sequential development is: - ANS Integrated development spends more money up front in order to save money in later stages. The main benefit of a stage-gate process for product development is that it: - ANS Helps to reduce risk. For which market orientation is accurately forecasting the amount of finished goods needed likely to be the most important for a firm's financial performance? - ANS Make-to-stock. Which of the following process structures can produce the widest variety of products? - ANS Job shop Jones Company has a make-to-order orientation. It does NOT use: - ANS Continuous process structure Compared to a functional layout, cellular layouts have: - ANS Less work-in-process inventory. Which of the following products is most likely make-to-stock? - ANS A mobile phone. What is the primary objective of line balancing? - ANS To match output rates with actual demand Which is false with respect to a process structure? - ANS It is the same across an entire supply chain. Which of the following statements is NOT consistent with core values of TQM? - ANS Opinions are as important as data. Which of the following statements that might be made by a business executive best expresses the overall philosophy of Total Quality Management? - ANS "There's always room for improvement." All the following represent external failure cost EXCEPT the cost of: - ANS Scrapping defective raw material. If a company spends more on prevention, what would be the expected impact on other costs of quality? - ANS Failure costs will go down. Xanadu Incorporated decided to increase the training received by new employees. The expense of this training is an example of which of the following costs of quality? - ANS Prevention costs Sanford Corporation bought new technological systems to inspect the quality of products as they come off the production line. The expense of operating these systems would be an example of which of the following types of quality-related costs? - ANS Appraisal cost Safety stock exists for which of the following reasons? - ANS To provide protection against the uncertainties of supply and demand. Which of the following is NOT a role of inventory? - ANS Increasing quality of finished goods A batch of Raisin Bran that has been made at Kellogg's but not yet packaged in its final cereal box would be an example of what type of inventory? - ANS Work in process Taxes and insurance costs are an example of which of the following costs? - ANS Carrying (or holding) costs. 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: - ANS Order cost.