Op Management Final

Spend CategoriesInternal assessment of purchases, the purchases are commonly divided into these categoriesFormal Request for Pricing, Services and PlansRFPStrategic-alliance-based approach to controlling inventory and reducing costsVMIT or F: TCO (total cost of ownership) is a relatively common approach used to compare competing price quotesTrueT or F: The primary benefit for companies to engage in global sourcing is to procure better quality products.FalseQuality philosophy that drives a firm to lower prices, higher quality, and fast responsesSix SigmaSix Sigma focuses on?Improving qualityCross-functional teams would be associated with which of Deming's 14 Points for Management?Break down barriers between departmentsA tool used to determine the frequencies of specific problems is referred to as what?Check SheetIn Six Sigma, what is the abbreviation of opportunities for a defect to occurOFDWhat percentage of Fortune 500 companies use Six Sigma?50%T or F: ISO 9000 is the standard most often associated with quality managementTrueA bank emailing monthly statements to a customer would be an example of which type of information flow?CorporateA customer paying a bill through a bank's online systems would be an example of which type of information flow?EnvironmentalWhat does MRP stand for?Material requirements planningWhat does ERP stand for?Enterprise resource planningWhat is the x-axis on a Ghatt Chart?TimeWhich of the following definitions is most closely associated with "operations management"?The effective planning, organizing, and controlling of the value-creating activities of the firmWhich of the following is not a basic operations management activity?MarketingTrue/False: A process is a method for getting work done.TrueIn a typical supply chain, goods flow in which of the following manners?Supplier - Manufacturer - Distributor - Retailer - ConsumerBusiness process integration refers to which of the following?The sharing and coordination of key processes between companies in a supply chain.True/False: Supply Chain Management is the integration of key business processes concerning the flow of materials from raw material suppliers to the final customer.TrueTrue/False: Customer Relationship Management (CRM) is managing the firm's customer base so they remain satisfied and continue to purchase goods and services.TrueForecasted demand and customer requirements with supply chain capabilities are part of this supply chain process.Demand managementA new development in the product development and commercialization process is to design new products concurrently or sequentially?ConcurrentlyThe reduction of waste, along with continuous improvement, and the synchronization of material flow within the organization and between supply chain trading partners are characteristics of which operations management development.Lean thinkingA philosophy that encompasses a collection of processes that seek to improve quality continuously to please customers, reduce costs, and ultimately create a competitive advantage for the firm is referred to as:Total Quality Management (TQM)An organization's strategy is not primarily designed to consider which of the following?How the organization makes decisions on a day-to-day basis.True/False: An organization's strategic plan addresses the organization intends to achieve its mission.TrueTrue/False: Firms compete using three competitive directions: cost, quality, and customer service.TrueTrue/False: Operations strategies are a set of decisions with the operations function to support the mission and strategy of the frim.TrueCore competencies are primarily used to:Create competitive advantageTrue/False: In many industries, more than 40% of revenues are generated from products introduced during the previous year.TrueThe process of making decisions about the characteristics, features, and performance of a company's goods and services refers to?Product designAll of the following are leading to shortened product life cycles except?Decreased competitionStrategic fit requires the alignment of product design with:Both external and internal fitTrue/False: Quality Function Development (QFD) begins with identifying, listening to, and surveying customers.TrueFor products with similar investments, managers usually will choose to invest in the product with the _________ IRR?HighestProduction on a limited basis to determine if production equipment can reliably manufacturer the product at full scale is referred to as:Pilot manufacturingTrue/False: Another name for environmental product impacts known as life cycle assessments is cradle-to-grave analysis.TrueTrue/False: Production processes are matched to the product by considering the desired production volume and the variety of goods/services that customer desire.TrueWhich process is best suited for a company offering customtized products?Job ShopWhich of the following is most likely an example of a job shop?Custom furniture manufacturerTrue/False: A batch process is found in organizations where moderate customization and higher volume are required by customersTrueA batch process requires ________ flexibility versus a job shop.LessAn assembly line is characterized by which of the following?High volume, limited flexibilityTrue/False: Mass customization processes is a hybrid process, combining several aspects of the job process and the assembly line processTrueA process via which a specialty product is made based upon customer specifications would most likely be a __________ process.Make-to-OrderMake-to-Stock processes are characterized by all of the following except:High degree of customization availableDell's computer production process is most closely associated with which type of process?Assemble-to-OrderA diagram showing the sequence of steps involved in a process is a:Process flowchartTrue/False: Business Process Reengineering is the fundamental rethinking and redesign of a process to achieve dramatic improvements in efficiency and effectiveness.TrueWhich of the following is the most likely result of a process that limits the output of a system?BottleneckA philosophy that suggests that a system is only as good as its weakest part is the:Theory of ConstraintsCRM refers to which concept?Customer relationship management"Managing the relationships among people within an organization and between customers and the company's customer service reps in order to improve the bottom line" is the definition of which concept?The customer relationship processTrue/False: Customer segmentation refers to a firm grouping its customers within its customer database.TrueCustomer lifetime value value is used to segment customer based upon their:Both current and future profitabilityAn airline that divides its customers into VIP, Preferred, and Regular customer sets is practicing what principle?Customer segmentationT/f: Forecast quality is likely to only impact inventory levels of finished goods, raw materials, and componentsFalseT/f: Demand management is broadly defined as the process that balances customer requirements with supply chain capabilitiesTrueSupply chain flexibility is _____ than/ as in the past.GreaterPoor forecasting and production planning can negatively impact all of the following *except*: Customer relationships, product reliability, sales, profitabilityProduct reliabilityNegative consequences resulting from holding substantial amounts of finished goods for delivery any time that a customer demand is experiencedHigh carrying costsOver-forecasting likely leads toExcessive hiringMost accurately describes the concept of forecastingEstimate future demandPotential benefits of better forecastingReduced stockouts, smoother production plans, and reduced costsT/f: Quantitative forecasts are based on opinions and intuitionFalseT/f: When developing a sales forecast, sales force personnel might be inclined to submit lower sales forecasts in order to achieve sales targets and receive greater bonusesTrueA firm makes what type of plans to accommodate unforeseen changes and forecast errors?ContingencyA firm launching a new product for which historical data does not exist would likely use which type of forecasting technique?QualitativeA quantitative forecasting technique that relies on group convergenceDelphi methodDemand patterns that occur every several years and are influenced by macroeconomic and political factorsCyclicalUnexpected events that may lead to demandRandom variationT/f: Field personnel might be able to generate good forecasts because they are close to their customers and marketsTrueT/f: The jury of executive opinion approach is beneficial because of the collective knowledge of the executivesTrueThe simple moving forecasting technique is...Relatively easy to useMeeting forecasted demand while minimizing costs and maximizing customer service over a series of planning periodsAggregate PlanningT/f: In CPFR, trading patterns should exercise caution and be reluctant to share informationFalseT/f: a box of cereal on a grocery store shelf is an example of a work-in-processFalseT/f:Inventory that is used to satisfy unforeseen demand is referred to as safety stockTrueSuccessfully managing inventories can positively impactscustomer service, competitiveness, and costCarrying too little inventory can lead toStockouts, plant shut downs, and dissatisfied customersTypes of inventoriesraw materials, work-in-process, and finished goodsWhat type of inventory is bread being baked?Work-in-processWhat type of inventory is wheat and other ingredients used to make bread considered?Raw materialWhat type of inventory function is oil that is on an oil tanker that is in transit to a customer?TransportationT/f: Anticipation inventories allows demand to be met during periods of expected high demandsTrueT/f: Cycle inventories are created when a firm purchases or produces a quantity large enough to last until the next purchase or production periodTrueThe administrative costs associated with purchasing itemsOrder costCosts that would contribute to inventory carrying costWarehouse rent, Shrinkage costs, and Handling costsInventory cost reduction results inprofit increase, but only if stockout costs are avoidedHolding too little inventory does what to the risk of a stockout?IncreasesThe actual cost of items bought from a supplierPurchase costT/f: Independent demand refers to the external demand for a firm's finished productsTrueT/f: Economic order quantity (EOC) derives the order cost that will minimize the sum of the annual inventory holding cost and annual order costTrueOrder lead timethe time from order receipt to arrival of the orderService Levelthe percentage of time the firm wants to be in stockT/f: the bullwhip effect is used in the meat packing industry to differentiate between beef and porkFalseLean systemsWaste eliminationWasteExcess inventories, scrap losses, rejects, and reworkLean thinking with a firm's suppliers involvesDelivery of smaller quantities, more frequent deliveries, and delivery to point of useLean layouts tend to...use more visibility than traditional layoutsT/f: Many lean efforts begin with the implementation of the Five S'sTrueT/f: SMED stands for single-minute exchange of dieTrueKanbanUsed to signal a need for items from an upstream manufacturing cellKaizenA Japanese term for continuous improvementFocus of lean thinking in the services sectorCustomer needsA signigicant roadblock to the implementation of lean practices in an organization can be the lack of a?Lean cultureSuccessfully implementing lean can potentially result inIncreased productivity, reduced inventory levels, increased customer satisfactionT/f: Integrating lean into the culture of an organization causes unnecessary confusion and lean should be left to the production areasFalseT/f: Kanbans are used to control the flow of inventory through the facilityTrueLean thinkingoperating philosophyFive-Sa common approach to waste reductionLean systems a.k.aPull systemT/f: Lean and sustainability are two concepts that do not go together wellFalseT/f: Customer employee interaction takes place at customer contact pointsTrueT/f: The line of visibility separates a customer contact point from points where customer contact does not take placeTrueManaging customer flows effectively leads toBoth enhanced customer satisfaction and firm competetivenessQueuing analysis can likely be used to do...Determine customer waiting times, determine the number of customers waiting in queue, and assist in capacity decisionsExample of a customer contact pointA ticket window at a theaterExample of process automationSelf-service checkoutsCapacity sharingThe matching of service capacity to customer demand to minimize customer waitingT/f: Capacity sharing refers to finding uses for underutilized capactiyTrueT/f: Using customers as servers is referred to as yield managementFalseYield/ revenue managementThe use of overbooking, allocating capacity among customer segments, and differential pricingEmployee cross-trainingAllowing employees to seamlessly move from an idle process to a busy processExample of Employee schedulingA restaurant using more servers on busy eveningsThe use of too little service capacity can result in...Long customer wait times and lost salesThe use of too much service capacity can result in...Idle servers and high labor costsT/f: Part-time employees offer companies greater capacity flexibilityTrueT/f: Differential pricing is viewed as intrinsically fair by customersFalsePricing policies/ promotionsUtilizing pricing changes to alter demandWork flowThe movement or transfer of work from the customer through the organizationExample of yield/ revenue managementAn airline that overbooks seats on its aircraftT/f: A multiple server "snake line" style queuing system is more efficient than a system with separate queue linesTrue