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Q:
Activity-system maps depict the geographic reach of a company's business strategies.
Q:
A conversion process that is fully automated and that can be programmed in advance is considered to be having low technical complexity.
Q:
Activity-system maps are useful in understanding how well a system of activities fits the overall company's strategy.
Q:
When conversion processes depend primarily on the performance of people, rather than on machines, technical complexity of the process is said to be high.
Q:
Activity-system maps show how a company's strategy is delivered through a set of tailored activities.
Q:
Small-batch technology has a higher level of technical complexity than large-batch technology.
Q:
An order qualifier is a set of screening criteria that permits a firm's products to be considered as possible candidates for purchase.
Q:
An organization taking the internal systems approach uses technology to reduce the time needed to bring new products to market.
Q:
An order winner is a set of screening criteria that permits a firm's products to be considered as possible candidates for purchase.
Q:
An organization taking the technical approach to measure organizational effectiveness uses technology to develop new products, services, and processes.
Q:
An order winner is a set of criteria that differentiates the products or services of one firm from another.
Q:
Technology is used at all three stages in the value creation process: input, conversion, and output.
Q:
Following a straddling strategy, firms will broaden their capabilities and effectively compete with more focused firms in markets requiring low cost for success.
Q:
Mass production is the technology that involves groups of skilled workers interacting closely and combining their skills to produce custom-designed products.
Q:
Craftswork is the organizational technology based on competences in using a standardized, progressive assembly process to manufacture goods.
Q:
The process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services and technologies into its current portfolio it is called straddling.
Q:
The process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services and technologies into its current portfolio is called innovation.
Q:
Which of the following statements is true regarding unrelated diversification?
A) The bureaucratic costs associated with managing unrelated diversification are much greater than those associated with related diversification.
B) An organization pursuing a strategy of unrelated diversification tries to obtain value by sharing resources or by transferring functional skills from one division to another.
C) Organizations with a strategy of unrelated diversification are likely to use a conglomerate structure.
D) Considerably more communication and coordination are needed to create value from unrelated diversification than from related diversification.
Q:
Central to the concept of operations and supply strategy is the notion of operations focus and trade-offs.
Q:
Which of the following statements is true regarding related diversification?
A) The bureaucratic costs associated with managing related diversification are much greater than those associated with unrelated diversification.
B) Considerably more communication and coordination are needed to create value from unrelated diversification than from related diversification.
C) A functional structure is most suitable for an organization that is pursuing a strategy of related diversification.
D) If unrelated diversification is to provide the gains comparable to those obtained from related diversification, a much larger corporate headquarters staff is required to coordinate interdivisional activities.
Q:
One of the competitive dimensions that form the competitive position of a company when planning their strategies is delivery speed.
Q:
Which of the following structures is characterized by a small corporate headquarters staff?
A) mechanistic structure
B) conglomerate structure
C) matrix structure
D) functional structure
Q:
Operations and supply management is significant since it relates to some of the components of strategy.
Q:
A retail clothing chain buys a real estate business and an investment banking firm. Which of the following structures is most appropriate for this organization?
A) matrix structure
B) product team structure
C) mechanistic structure
D) conglomerate structure
Q:
One of the competitive dimensions that form the competitive position of a company when planning their strategies is cost.
Q:
Which of the following structures is a variant of the multidivisional structure?
A) matrix structure
B) conglomerate structure
C) functional structure
D) mechanistic structure
Q:
An effective operations and supply strategy must be integrated with the organization's corporate strategy.
Q:
In a ________ structure, each business is placed in a self-contained division and there is no contact between divisions.
A) conglomerate
B) mechanistic
C) functional
D) matrix
Q:
Strategy describes how a firm intends to create and sustain shareholder value.
Q:
Which of the following core competences is most likely to be used by a company to create value while pursuing unrelated diversification?
A) engineering expertise
B) core competences in material management
C) top-management's ability to efficiently control a group of organizations
D) control over a scarce resource
Q:
The text mentions a number of major challenges (listed below) to operations management that are expected to develop in the near future. Select one of these and briefly discuss the nature of the challenge?
Q:
Which of the following strategies involves entering a completely new domain?
A) market penetration
B) product development
C) unrelated diversification
D) vertical integration
Q:
Describe some of the generic differences between the production of goods and services?
Q:
A computer manufacturer uses its competence in product design to produce laser printers. Which of the following strategies is being pursued by this company?
A) vertical integration
B) product development
C) market penetration
D) related diversification
Q:
Discuss the role of efficiency and effectiveness in the creation of value?
Q:
The strategy of ________ involves an organization entering a new domain in which it can use one or more of its existing core competences to create a low-cost or differentiated competitive advantage in that new domain.
A) cost leadership
B) related diversification
C) vertical integration
D) market penetration
Q:
What did the International Organization for Standardization create that is relevant to operations?
Q:
Which of the following strategies is most likely to help a company to avoid the problem of opportunistic suppliers?
A) vertical integration
B) product differentiation
C) related diversification
D) market penetration
Q:
What United States National Quality Award was started in 1987?
Q:
Which of the following is the primary disadvantage of backward and forward vertical integration?
A) increased bureaucratic costs
B) decreased product quality
C) decreased environmental richness
D) loss of control over inputs
Q:
What are the six categories of transformation processes?
Q:
A shoe manufacturer acquires the retail stores that sell its shoes. This is an example of a(n) ________.
A) forward vertical integration
B) unrelated diversification
C) market penetration
D) sequential horizontal integration
Q:
What is the process called that uses resources to convert inputs into some desired output?
Q:
For a soft drinks company, which of the following will be considered backward vertical integration?
A) buying a bottling and trucking company that distributes soft drinks
B) establishing a company that manufactures and sells snack foods
C) taking over a company that provides software services
D) buying sugar plantations
Q:
Why is operations not perceived as important?
A. Operations is less crucial to the success of modern businesses than other functions
B. Many senior executives began their careers in other functions and learned to take operations for granted
C. Successful mergers or "deals" is where the action is these days and operations plays only a minor role in their success
D. Operations and supply improvement projects are typically small, short-term and not strategic
E. Operational coordination is best achieved by general management or the sales function
Q:
Which of the following terms refers to a strategy in which an organization takes over and owns its suppliers or its distributors?
A) unrelated diversification
B) market penetration
C) vertical integration
D) product differentiation
Q:
For a soft drinks company, which of the following will be considered forward vertical integration?
A) establishing a company that manufactures and sells snack foods
B) buying a bottling and trucking company that distributes soft drinks
C) buying sugar plantations
D) taking over a company that provides software services
Q:
Radical changes in operations and supply chain management are advocated by proponents of which of the following?
A. Business process reengineering
B. Electronic commerce
C. Total quality management
D. Manufacturing strategy
E. Mergers and acquisitions
Q:
Which of the following structures is the most appropriate for an organization that pursues a differentiation strategy?
A) functional structure
B) centralized structure
C) mechanistic structure
D) matrix structure
Q:
A total systems approach to managing the flow of information, materials and services from raw material suppliers to the end customer is called what?
A. Electronic commerce
B. Total quality productivity
C. Total service quality
D. Supply chain management
E. Business Process engineering
Q:
Which of the following are considered current issues in operations and supply management?
A. Developing flexible supply-chains for merged operations
B. Managing the customer's experience during the service encounter
C. Decreasing "commoditization" of suppliers
D. Increasing operations' responsibility for profits
E. Increasing unionization of the work force
Q:
Which of the following structures is the most appropriate for an organization that pursues a low-cost strategy?
A) functional structure
B) product team structure
C) organic structure
D) matrix structure
Q:
Which of the following individuals are credited with helping to transplant Japanese methods of total quality management to the United States?
A. Harris
B. Baldridge
C. Dodge
D. Deming
E. Wright
Q:
Typically, an organization that uses a low-cost strategy ________.
A) is not leaders in product development
B) produce a wide range of products to suit the needs of different groups of customers
C) operates in a complex, uncertain environment
D) responds quickly to the changes in the environment of the organization
Q:
Typically, an organization that uses a differentiation strategy ________.
A) does not respond to market changes quickly
B) operates in a complex, uncertain environment
C) focuses its resources on producing one product
D) has a mechanistic structure
Q:
Which of the following gurus are credited with helping to develop total quality management (TQM)?
A. F. W. Harris
B. Lillian Gilbreth
C. J. M. Juran
D. George B. Dantzig
E. F. Robert Jacobs
Q:
In the manufacturing strategy paradigm developed in the 1970's, which of the following are suggested?
A. Manufacturing can be a competitive weapon by excelling on all performance measures
B. Manufacturing should focus on a limited set of tasks
C. Management should create a highly flexible factory
D. Manufacturing facilities can achieve the lowest possible cost
E. Manufacturing management is best done by people with engineering degrees
Q:
Which of the following statements is true regarding an organization following a differentiation strategy?
A) Differentiators generally use simple organizational structures.
B) A speedy response to market changes is not vital to the competitive success of a differentiator.
C) An organic structure is more suitable for a differentiator than a mechanistic structure.
D) The organizational structure used by differentiators generally has lower integration than that used by a low cost organization.
Q:
Which of the following statements is true regarding an organization following a low-cost strategy?
A) Low-cost organizations typically use complex organizational structures.
B) Typically, low-cost organizations use centralized decision-making.
C) The organizational structure used by a low-cost organization generally has higher integration than that used by a differentiator.
D) An organic structure is more suitable for a low-cost organization than a mechanistic structure.
Q:
In the history of operations management the use of continuous improvement and value engineering started in what decade?
A. 1940's
B. 1950-60's
C. 1970's
D. 1980's
E. 1990's
Q:
KFC specializes in the chicken segment of the fast-food market. This is an example of a ________ strategy.
A) market penetration
B) focus
C) vertical integration
D) conglomerate diversification
Q:
In the history of operations management the use of synchronous manufacturing occurred in what decade?
A. 1930's
B. 1940's
C. 1950-60's
D. 1970's
E. 1980's
Q:
In the history of operations management the use of the multidisciplinary team approach to complex system problems using tools like linear programming first occurred during which decade?
A. 1930's
B. 1940's
C. 1950-60's
D. 1970's
E. 1980's
Q:
A focus strategy is a(n) ________ strategy.
A) business-level
B) functional-level
C) supply-level
D) environmental-level
Q:
In the history of operations management the use and development of the set of activities referred to as business process reengineering occurred in what decade?
A. 1940's
B. 1950-60's
C. 1970's
D. 1980's
E. 1990's
Q:
________ strategy involves specializing in one segment of a market and concentrating all of the organization's resources on that segment.
A) Vertical integration
B) Diversification
C) Horizontal integration
D) Focus
Q:
In the history of operations management the development of economic lot sizing models, including the EOQ model occurred in what decade?
A. 1910's
B. 1930's
C. 1940's
D. 1950-60's
E. 1970's
Q:
A ________ business-level strategy is a plan whereby an organization produces high-priced, quality products aimed at particular market segments.
A) differentiation
B) market penetration
C) lateral diversification
D) vertical integration
Q:
Which of the following product attributes is a value added service?
A. Excellent quality
B. Internet monitoring of orders
C. Lowest cost
D. Effectiveness
E. Speed
Q:
Walmart specialize in selling low-price clothing to customers who want or can afford to pay only a
modest amount for their attire and Neiman Marcus specializes in selling high-priced clothing made by exclusive designers to wealthy customers who want prestige or status. Based on this information we can conclude that ________.
A) organizational structure of Walmart is taller than that of Neiman Marcus
B) Walmart and Neiman Marcus have chosen different domains in which to compete
C) Walmart has an organic structure and Neiman Marcus has a mechanistic structure
D) as compared to Walmart, Neiman Marcus operates in a more complex environment
Q:
One of the characteristics that distinguish a manufactured product from a service product is which of the following?
A. Customers are always directly involved in creating the output
B. Customers often directly interact with manufacturing workers
C. A manufactured product is a tangible, physical item
D. Customers can purchase the identical service product from a number of outlets
E. A service product is superficial
Q:
McDonald's core competences in manufacturing, marketing, and materials management create a competitive advantage over rivals Burger King and Wendy's. This is an example of a ________ strategy.
A) business-level
B) global expansion
C) corporate-level
D) functional-level
Q:
Which of the following is not a general category for categorizing transformation processes?
A. Exchange, as in retailing
B. Physical, as in manufacturing
C. Insulational, as in inventory
D. Location, as in transportation
E. Storage, as in warehousing
Q:
Which of the following functions typically has the most organic structure?
A) sales
B) manufacturing
C) materials management
D) R&D
Q:
In viewing a department store as a transformation process, shoppers are considered a primary input into the process. A primary transformation function of the same system is which of the following?
A. Stock pickers
B. Well-prepared food
C. Storage bins
D. Storage and redistribution
E. Promoting products
Q:
Which of the following statements is true regarding organizational culture?
A) A competitor can easily imitate another organization's culture.
B) Culture is easy to control and manage.
C) Culture is embedded in the day-to-day interactions of functional personnel.
D) Culture cannot be a source of competitive advantage.
Q:
In the transformation process of a hospital, a patient is considered a primary input. A primary transformation function of the same system is which of the following?
A. Healthy individuals
B. Health care
C. Well-prepared food
D. Storage and redistribution
E. Allocation of beds
Q:
Typically, the manufacturing function in an organization uses ________.
A) a high level of standardization
B) an organic structure
C) a flat organizational structure
D) decentralized decision-making
Q:
Which of the following companies will most likely have a mechanistic structure?
A) a pharmaceutical company that has a core competence in R&D
B) a soft-drink company that has a core competence in marketing
C) a medical equipment manufacturer that has a core competence in manufacturing
D) a telecommunications company that operates in a dynamic environment
Q:
Operations and supply management does not involve which of the following?
A. Using operations research/management science decision-making tools
B. Industrial engineering issues
C. Line management responsibilities
D. Improving operating systems
E. Portfolio management