Ch15B Test Bank | Operations Module – 11th Ed

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Fundamentals of Management, 11e (Robbins)

Chapter 15B Operations Module: Managing Operations

1) ________ management oversees the transformation process that converts resources such as labor and raw materials into finished goods and services.

A) Control

B) Operations

C) Systems

D) Planning

Diff: 1

AACSB: Analytical thinking

Question Category: Concept

2) The purpose of operations management is to manage ________.

A) inputs

B) outputs

C) the transformation process

D) the manufacturing process

Diff: 2

AACSB: Analytical thinking

Question Category: Concept

3) The transformation process transforms ________.

A) goods and services into products

B) inputs into services only

C) materials into goods only

D) inputs into goods and services

Diff: 2

AACSB: Analytical thinking

Question Category: Concept

4) Value is created during the process of ________.

A) converting inputs into outputs

B) storing inputs

C) measuring outputs

D) controlling operations

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

5) Inputs in the transformation process include ________.

A) physical, material substances only

B) both material and nonmaterial items

C) nonmaterial items only

D) equipment and materials only

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

6) All organizations produce goods or services through the ________ process.

A) transformation

B) service

C) manufacturing

D) operations

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

7) As a product, piano lessons are ________.

A) a good because you can purchase them

B) a service because they are nonmaterial

C) a good because they can be divided into discrete lessons

D) a service because someone needs to give them

Diff: 2

AACSB: Application of knowledge

Question Category: Application

8) In a transformation process, people are considered to be inputs because they ________.

A) are material beings

B) are costly

C) perform tasks that are needed to create outputs

D) have knowledge and information

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

9) It is easier to see the transformation process at work in manufacturing organizations than in service organizations because manufacturing organizations ________.

A) produce goods and services

B) turn inputs into outputs

C) turn inputs into physical and nonphysical products

D) produce physical goods

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

10) Service organizations ________.

A) produce physical and nonphysical outputs

B) produce physical outputs

C) require nonphysical inputs

D) produce nonphysical outputs

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

11) Manufacturing organizations ________.

A) produce physical outputs

B) produce nonphysical outputs

C) require only nonphysical inputs

D) require only physical inputs

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

12) Which one of the following is NOT an example of a service organization?

A) a military force

B) a university

C) a lens maker

D) a hospital

Diff: 2

AACSB: Application of knowledge

Question Category: Application

13) It is estimated that in the United States, about ________ of all economic output is toward making tangible, physical objects.

A) 12 percent

B) 27 percent

C) 44 percent

D) 78 percent

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

14) A bus company is a ________ organization because its product is ________.

A) service; buses

B) manufacturing; transportation

C) service; transportation

D) manufacturing; buses

Diff: 3

AACSB: Analytical thinking

Question Category: Analytical

15) You would expect a highly developed country like ________ to have a predominantly ________ economy.

A) France; manufacturing

B) France; service

C) Vietnam; service

D) the United Kingdom; manufacturing

Diff: 2

AACSB: Diverse and multicultural work environments

Question Category: Analytical

16) A laptop computer company is a ________ organization because its product is ________.

A) service; electronic

B) manufacturing; electronic

C) service; a computer

D) manufacturing; a computer

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

17) You would expect an lesser-developed country like ________ to have a predominately ________ economy.

A) Laos; nonservice

B) Laos; service

C) Great Britian; manufacturing

D) Belgium; nonservice

Diff: 2

AACSB: Diverse and multicultural work environments

Question Category: Analytical

18) In the ever more difficult struggle to survive in a competitive world, Evans Findings Company has a work shift with ________.

A) extra employees to increase productivity

B) no employees to allow workers to rest

C) no employees to punish unproductive workers

D) no employees to increase productivity

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

19) Most countries in today's global business climate see ________ as the key to success.

A) maintaining productivity

B) increasing productivity

C) higher wages

D) shorter working hours

Diff: 1

AACSB: Analytical thinking

Question Category: Analytical

20) McDonald's recently made productivity gains by cutting the ________.

A) wages of workers

B) weight of an order of French fries

C) time workers were trained

D) time it takes to make French fries

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

21) Which one of the following is NOT a way to increase productivity?

A) increase inputs

B) decrease costs

C) increase outputs

D) increase efficiency

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

22) W. Edwards Deming thought that ________ the key to productivity.

A) workers were

B) controlling costs was

C) managers were

D) both managers and workers were

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

23) With respect to planning, Deming believed that ________ was most important for productivity.

A) short-term planning

B) long-term planning

C) medium-term planning

D) flexible planning

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

24) With respect to product quality, Deming believed that a company should never ________.

A) pay more attention to quality than to price

B) be satisfied with its current level of quality

C) try to fix a product if it "ain't broke"

D) put quality ahead of profits

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

25) Deming was a strong believer in keeping accurate statistics and advocated ________ goals.

A) strictly nonnumerical

B) strictly numerical

C) both numerical and nonnumerical

D) both numerical and statistical

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

26) Of all the emotions that affect a workplace, Deming felt that ________ was most important for increasing productivity.

A) making workers fear failure

B) eliminating fear

C) making employees happy

D) eliminating anger

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

27) Deming felt that ________ with statistics.

A) employees should be capable of dealing

B) employees should not be asked to deal

C) managers only should deal

D) employees only should deal

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

28) Deming felt that doing quality work was ________.

A) a job requirement

B) a goal

C) a standard to strive toward

D) optional for most jobs

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

29) Deming felt that any new skills that employees needed should be acquired ________.

A) when they are hired and trained

B) by the employees on their own

C) when the need arises

D) years ahead of time

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

30) Since Deming first proposed his 14 points for improving productivity, his prescriptions have ________.

A) been largely discredited

B) fallen into disuse

C) been confirmed repeatedly

D) been confirmed for U.S. workers only

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

31) Where did the modern era of manufacturing primarily begin?

A) the coal industry

B) Detroit automobile factories

C) southern cotton plantations

D) northeastern textile mills

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

32) After World War II, U.S. managers made the mistake of thinking that ________.

A) production problems were solved

B) marketing problems were solved

C) finance problems were solved

D) marketing problems were not solved

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

33) In the 1970s, many U.S. manufacturers fell behind because they had ignored production issues and focused on ________.

A) quality and efficiency

B) marketing and finance

C) efficiency and customers

D) finance and quality

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

34) Managers in the United States today see ________ as the path to establishing and maintaining global leadership.

A) reducing costs

B) increasing production

C) operations management

D) scientific management

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

35) Value is any aspect of a product that customers ________ in the product.

A) like or admire

B) want to see

C) will pay for

D) notice

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

36) The durability of an expensive pair of shoes has value since ________ are willing to ________ it.

A) suppliers; provide

B) customers; pay for

C) manufacturers; make

D) managers; plan for

Diff: 2

AACSB: Application of knowledge

Question Category: Application

37) On eBay, brand-new red espresso machines routinely sell for $50 more than identical white machines. What can you conclude?

A) The color white has no value.

B) The color red has value.

C) Color has no value since it does not add to the function of the machine.

D) There is something different about the red machines.

Diff: 3

AACSB: Application of knowledge

Question Category: Application

38) When the New York Times experimented with charging money for its online news source, its popularity on the Internet plummeted. This shows that online news, at least as it is defined in this market, has ________.

A) enormous value

B) no value

C) no appeal

D) little value

Diff: 3

AACSB: Application of knowledge

Question Category: Application

39) The ________ is the series of work actions that add value to a product as it is being transformed from inputs to finished product.

A) supply chain

B) value chain

C) output chain

D) input chain

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

40) In its entirety, the value chain includes which set of the following participants?

A) internal customers, external customers, and stakeholders

B) design, production, and customers

C) research and development, production, and distribution

D) suppliers, manufacturers, and customers

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

41) ________ is the process of managing the sequence of activities and information along the entire value chain for a product.

A) Supply chain management

B) Value chain management

C) Supply management

D) Customer management

Diff: 2

AACSB: Analytical thinking

Question Category: Concept

42) ________ focuses on providing an efficient flow of resources to an organization.

A) Supply chain management

B) Value chain management

C) Value

D) Supply

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

43) Value chain management is ________ oriented.

A) supplier

B) internally

C) manager

D) externally

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

44) All of the following are characteristics of value chain management EXCEPT ________.

A) it is externally oriented

B) it focuses on both incoming materials and outgoing products and services

C) it is efficiency oriented

D) it is effectiveness oriented

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

45) In value chain management, ultimately the ________ have power to make changes.

A) suppliers

B) customers

C) employees

D) managers

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

46) When value is created by a participant in a value chain ________ benefits.

A) everyone downstream from that step in the chain

B) only the party that initiated the step

C) everyone in the chain

D) only the customers

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

47) A new cell phone battery doubles battery life but also increases the cost of the phone. This battery adds ________.

A) no value to the phone since it increases the cost

B) value to the phone only if the cost can be cut

C) value to the phone if more customers buy the phone

D) no value to the phone if more customers buy the phone

Diff: 3

AACSB: Application of knowledge

Question Category: Application

48) Since all partners in a value chain benefit when value is added, partners ideally should ________.

A) collaborate closely

B) work independently of one another

C) be dependent only on their narrow local part of the chain

D) collaborate with every other part of the chain

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

49) A business model is ________.

A) a competitor that a company seeks to emulate

B) a strategic design for how a company intends to make profit

C) a theoretical ideal that a company seeks to emulate

D) an unrelated organization whose practices a company seeks to emulate

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

50) The requirement for value chain management that involves being flexible and sharing information is ________.

A) employees/human resources

B) technology investment

C) coordination and collaboration

D) organizational processes

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

51) The requirement for value chain management that involves better product demand forecasting information is ________.

A) leadership

B) organizational culture and attitudes

C) coordination and collaboration

D) organizational processes

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

52) The requirement for value chain management that is most closely associated with defining and communicating expectations is ________.

A) coordination and collaboration

B) technology investment

C) organizational culture and attitudes

D) leadership

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

53) The requirement for value chain management that is most closely associated with trust is ________.

A) organizational culture and attitudes

B) technology investment

C) organizational processes

D) employees/human resources

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

54) The requirement for value chain management that includes an enterprise resource planning (ERP) system to link all of an organization's activities is ________.

A) employees/human resources

B) technology investment

C) coordination and collaboration

D) leadership

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

55) The requirement for value chain management that is most closely associated with learning on the job is ________.

A) employees/human resources

B) technology investment

C) coordination and collaboration

D) organizational processes

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

56) An especially difficult part of the coordination and collaboration requirement for successful value chain management is identifying things that ________.

A) you value but customers may not value

B) customers value but you may not value

C) both you and customers value

D) you value but do not add value to the value chain

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

57) Dell uses ________ to coordinate suppliers, customers, and its own employees to stay on top of orders that come in.

A) frequent telephone calls

B) an enterprise resource planning system

C) email

D) Facebook and Twitter

Diff: 2

AACSB: Information technology

Question Category: Analytical

58) Organizational processes in value chain management organizations need to eliminate ________.

A) nonvalue-adding activities

B) demand forecasting

C) ties between customers and suppliers

D) organizational core competencies

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

59) In organizations such as Saint-Gobain Performance Plastics, ________ are brought together to work on the company's premises.

A) customers and company employees

B) current and retired employees

C) competitors and customers

D) customers and suppliers

Diff: 2

AACSB: Application of knowledge

Question Category: Application

60) Implementation of a value chain should be driven by ________.

A) technology

B) customers

C) employees

D) management

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

61) One key measurement that managers in value chain management companies strive to make is an accurate ________.

A) supply forecast

B) weather forecast

C) demand forecast

D) production forecast

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

62) One of the most important things a leader can do in a value chain management company is ________.

A) provide a good role model

B) show a positive attitude

C) be friendly with employees

D) clearly express expectations

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

63) American Standard improved the quality of its value chain by getting rid of partners who ________.

A) could not work on holidays

B) could not meet expectations

C) were not in the bath and kitchen business

D) were not suppliers

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

64) This is the most important resource in any value chain.

A) employees

B) raw materials

C) capital

D) technology

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

65) Above all, jobs and job design in a value chain management company must be ________.

A) flexible

B) high paying

C) strictly defined and not likely to change

D) completely undefined

Diff: 3

AACSB: Analytical thinking

Question Category: Analytical

66) The key to any job in a successful value chain is that it ________.

A) is well defined and easy to carry out

B) best helps the chain create customer value

C) is maximally efficient

D) saves time and money

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

67) Workers in a value chain management company need to be ready to ________ at any time.

A) work in dangerous conditions

B) learn new job skills

C) compete with coworkers

D) lose their jobs

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

68) Because the nature of jobs can change quickly, value chain management companies often need to make a significant investment in ________.

A) heavy equipment

B) market research

C) light equipment

D) job training

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

69) Organizational culture and attitudes are shared by ________ value chain partners.

A) external

B) internal

C) both internal and external

D) customers and external

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

70) In order for a value chain to function successfully, different partners in the chain must ________.

A) have trust in one another

B) compete with one another

C) distrust one another

D) like one another

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

71) Attitudes that value collaborating, openness, and mutual respect are requirements for ________.

A) all value chain management companies

B) all companies

C) all value chain management companies that use a "sharing" style

D) some, but not all, value chain management companies

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

72) When ________ exist(s) in a value chain, partners will be extremely reluctant to share information.

A) sophisticated technological infrastructure doesn't

B) sophisticated technological infrastructure

C) trust doesn't

D) trust

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

73) ________ can lead to a value chain management company suffering losses of intellectual property.

A) Not enough trust

B) Too much trust

C) Not enough diversity

D) Too much diversity

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

74) Some organizations erroneously feel that they ________ when they collaborate with a variety of value chain partners.

A) lose control of their destiny

B) gain control of their destiny

C) change their destiny

D) control the destiny of other partners

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

75) In many value chains, an organization must have the ability to educate ________.

A) internal partners only

B) external partners only

C) only its own employees

D) both internal and external partners

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

76) One of the biggest obstacles to successful value chain management on the organizational level is an organization that ________.

A) shares information

B) refuses to share information

C) insists on shaking up the status quo

D) collaborates

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

77) Value chains that ________ information technology infrastructure often have problems coordinating and collaborating.

A) share the same

B) fail to share compatible

C) purchase up-to-date

D) provide their own

Diff: 2

AACSB: Information technology

Question Category: Analytical

78) Managers who are carrying out value chain management invest ________ than managers of conventional organizations.

A) less time and energy

B) more time and energy

C) more of their own money

D) more of the company's money

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

79) A device with e-enabled maintenance control saves money by ________ when it malfunctions or needs maintenance.

A) fixing itself

B) alerting others with e-messages

C) self-destructing

D) sounding an alarm

Diff: 2

AACSB: Information technology

Question Category: Analytical

80) In today's manufacturing operations, managers often monitor capacity, order status, and product quality ________ made.

A) before the product is

B) while the product is being

C) after the product is

D) both before and after the product is

Diff: 2

AACSB: Information technology

Question Category: Analytical

81) Apple's problems with the battery of the highly successful iPod show how important ________ is for a product.

A) efficiency

B) design

C) quality

D) productivity

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

82) In evaluating quality, the performance of a product is measured in ________.

A) how the product looks and feels

B) how well the product operates

C) how long it takes the product's operation to deteriorate

D) what special characteristics a product has

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

83) Courtesy and timeliness are measures of ________.

A) product quality

B) service quality

C) product appeal

D) service cost

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

84) A high-quality product that doesn't break down and doesn't suffer from significant performance deterioration over a long period of time is said to have ________.

A) conformance

B) aesthetics

C) features

D) durability

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

85) Durability and features are measures of ________.

A) product quality

B) service quality

C) product value

D) service value

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

86) High-quality service that gives customers an experience that doesn't vary from time to time is called ________.

A) convenience

B) accuracy

C) completeness

D) consistency

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

87) A product such as an iPhone that has a design that is appealing to customers is said to have good ________.

A) durability

B) aesthetics

C) features

D) conformance

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

88) High-quality service that gives customers a cheerful and helpful experience is called ________.

A) consistency

B) accuracy

C) courtesy

D) convenience

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

89) When a customer service customer gets frustrated from being put on hold for 30 minutes during a service call, the company is having problems with which service quality dimension?

A) timeliness

B) consistency

C) convenience

D) courtesy

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

90) Northrup Grumman Corporation empowers employees to ________ about products throughout the manufacturing process as a means of monitoring quality.

A) accept decisions

B) reject decisions

C) make accept/reject decisions

D) obey decisions

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

91) ISO 9001 is a series of standards that ensure that products ________.

A) are of minimal quality

B) conform to customer requirements

C) conform to industry rules

D) exceed government requirements

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

92) In the Six Sigma system, this is the highest level of quality.

A) Zero Sigma

B) One Sigma

C) Four Sigma

D) Six Sigma

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

93) Each work activity in a Gantt chart is represented by two horizontal bars that identify the ________.

A) goal and the date

B) the date and the manager's name

C) goal and actual progress

D) actual progress and manager's name

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

94) To find out how many activities are taking place at a given time in a Gantt chart, ________.

A) read across a single row

B) read down a single column

C) count the total number of bars

D) count the total number of actual progress bars

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

95) A load chart is a ________ that schedules capacity by ________.

A) graph; activity

B) PERT; workstation

C) modified Gantt chart; workstation

D) modified Gantt chart; activity

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

96) The critical path in a PERT is the ________ sequence of events that is required to complete the project in the ________ period of time.

A) longest; longest

B) shortest; shortest

C) longest; shortest

D) shortest; longest

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

97) In PERT, the time difference between the critical path and any other path is called ________.

A) slack time

B) critical time

C) network time

D) lost time

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

98) The goal of operations management is to manage the process of turning labor and raw materials into goods and services of some type.

Diff: 1

AACSB: Analytical thinking

Question Category: Analytical

99) Operations management is a subsystem of the transformation process.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

100) Employees are considered an input in transformation process.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

101) Operations management includes service industries but not manufacturing firms.

Diff: 1

AACSB: Analytical thinking

Question Category: Analytical

102) When inputs are turned into goods and services, value is created.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

103) Manufacturing and service organizations produce both physical and nonphysical outputs.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

104) The majority of U.S. companies still produce goods rather than services.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

105) For most U.S. companies, high productivity is a matter of survival.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

106) According to W. Edwards Deming, managers should emphasize short-term rather than long-term planning.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

107) Deming advocated an approach in which managers never get complacent about the quality of their product.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

108) Productivity goals, according to Deming, should be strictly numerical to avoid ambiguity.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

109) Deming's 14 points were useful in their time but are now largely considered to be obsolete.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

110) After World War II, managers in the U.S. firms began to focus on manufacturing rather than finance and marketing.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

111) In the 1960s and 1970s, companies in Japan and Germany began to catch up with U.S. firms by focusing on quality.

Diff: 2

AACSB: Diverse and multicultural work environments

Question Category: Analytical

112) Operations management is likely to play a key role in American firms regaining their preeminence among world companies.

Diff: 2

AACSB: Diverse and multicultural work environments

Question Category: Analytical

113) Value in a value chain management system is determined by managers.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

114) The manufacturer is the most powerful part of the value chain because it adds more value than the other parts.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

115) Value chain management is externally oriented.

Diff: 2

Question Category: Analytical

116) Value chain management is efficiency oriented.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

117) Productivity is not important to value chain management.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

118) The customer is part of the value chain in value chain management.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

119) Customers played a role in IKEA's success by being willing to pay higher prices for high-quality furniture.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

120) Sharing information is part of the coordination and collaboration requirement for successful value chain management.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

121) Organizational processes in value chain management refer to how work is done.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

122) In value chain management, activities are eliminated from the organizational process if they do not add value to the process.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

123) The goal of value chain management is to meet, but never to exceed, the needs and desires of customers.

Diff: 1

AACSB: Analytical thinking

Question Category: Analytical

124) Value in value chain management is driven mainly by middle management, while top management is responsible for goals and strategy.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

125) Being rigorous about expectations is a key part of leadership in value chain management.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

126) Employees in a value chain management organization must be flexible.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

127) Trust is so important in value chain management that proponents of the system say you can never have too much trust.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

128) Partners in a value chain management system need to be able to both learn from and educate other partners in the value chain.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

129) One place in which technology has little impact is the fast-food restaurant business.

Diff: 2

AACSB: Information technology

Question Category: Analytical

130) Many experts believe that for firms to compete globally they must focus solely on the quantity of production and reducing costs.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

131) Product quality and service quality are two different things.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

132) ISO 9001 certification provides proof that a quality operations system is in place in a facility.

Diff: 1

AACSB: Analytical thinking

Question Category: Analytical

133) In the Six Sigma system, the higher the sigma value, the greater number of defects you would expect from a product.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

134) To find the planned duration of a project on a Gantt chart, simply look at the width of the bar that represents actual progress.

Diff: 3

AACSB: Analytical thinking

Question Category: Analytical

135) A load chart can tell you how many workers are busy at a given point in time.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

136) The critical path in a PERT network is the least time-consuming sequence required to complete a project in the shortest period of time.

Diff: 2

AACSB: Analytical thinking

Question Category: Analytical

137) In a short essay, define and describe operations management.

Diff: 3

AACSB: Written and oral communication

Question Category: Critical thinking

138) In a short essay, define value and explain how it is obtained.

Diff: 3

AACSB: Written and oral communication

Question Category: Critical thinking

139) In a short essay, explain what a value chain is.

Diff: 3

AACSB: Written and oral communication

Question Category: Critical thinking

140) In a short essay, explain what value chain management is.

For example, if customers state that they require a GPS in every car model, then the value chain must be modified so it includes this value-adding feature. That might entail new suppliers, new design plans, new assembly procedures, and so on. The management of these changes is what takes place in value chain management.

Note that the process is driven by customer value. If the customers—typically expressing themselves through sales totals—indicate that a specific feature of the car, such as a GPS or a cupholder, has value, then it is the responsibility of the managers of the value chain to make sure that these features are included in the product.

Diff: 3

AACSB: Written and oral communication

Question Category: Critical thinking

141) In a short essay, describe the coordination and collaboration that is necessary for successful value chain management.

For example, if marketers of an electronic book learn that customers really want to be able to write notes and mark pages in their electronic books, it is the responsibility of those marketers to share that information with people in other parts of the value chain who can implement those changes into the product.

Sharing information and being flexible as far as who in the value chain does what are important steps in building coordination and collaboration. There must be a constant back and forth between different parts of the chain. Marketers must listen to customers. Engineers must listen to marketers. Designers must listen to engineers, and so on.

Diff: 3

AACSB: Written and oral communication

Question Category: Critical thinking

142) In a short essay, identify and discuss the leadership requirements for successful value chain management.

Leaders should outline expectations for what is involved in the organization's pursuit of value in its products. Ideally, this should start with a vision or mission statement that expresses the organization's commitment to identifying, capturing, and providing the highest possible value to customers. Throughout the organization, managers should clarify expectations regarding each employee's role in the value chain. Being clear about expectations also extends to partners outside of the organization.

Diff: 3

AACSB: Written and oral communication

Question Category: Critical thinking

143) In a short essay, identify and explain the three main human resource requirements for value chain management.

Flexibility is the key to job design in a value chain management organization. Traditional functional job roles—such as marketing, sales, accounts payable, customer service, and so forth—are inadequate in a value chain management environment. Instead, jobs must be designed around work processes that create and provide value to customers.

To carry out flexible jobs successfully, organizations need flexible employees. In a value chain organization, employees may be assigned to work teams that tackle a given process and may be asked to do different things on different days depending on need. In such an environment, an employee's ability to be flexible is critical. Therefore, the organization's hiring process must be designed to identify those employees who have the ability to learn and adapt.

Finally, the need for flexibility also requires that there be a significant investment in continual and ongoing employee training. Whether training involves learning basic information or how to perform some specific task, managers must see to it that employees have the knowledge and tools they need to do their jobs efficiently and effectively.

Diff: 3

AACSB: Written and oral communication

Question Category: Critical thinking

144) In a short essay, explain how organizational barriers can be an obstacle to effective management of a value chain.

Diff: 3

AACSB: Written and oral communication

Question Category: Critical thinking

145) In a short essay, explain how cultural attitudes can be an obstacle to effective management of a value chain.

Too much trust also can be a problem for a value chain. Since partners in a chain must work together and share all kinds of proprietary information, they must take care that important organizational information does not end up being appropriated or disseminated on the Internet. To guard against loss of intellectual property value, chain partners should always share only what needs to be shared and make sure that firewalls and other security measures are in place.

Diff: 3

AACSB: Written and oral communication

Question Category: Critical thinking

146) In a short essay, explain how required capabilities can be an obstacle to effective management of a value chain.

Diff: 3

AACSB: Written and oral communication

Question Category: Critical thinking

147) In a short essay, explain how people can be an obstacle to effective management of a value chain.

Diff: 3

AACSB: Written and oral communication

Question Category: Critical thinking

148) In a short essay, define and discuss quality control in an organization.

Quality control is typically needed at one or more points in the transformation process, beginning with the receipt of inputs. It will continue with work in process and all steps up to the final product. Assessments at intermediate stages of the transformation process typically are part of a quality control program. Early detection of a defective part or process can save the cost of further work on the item.

Diff: 3

AACSB: Written and oral communication

Question Category: Critical thinking

149) In a short essay, define the practice of project management and explain why many organizations are turning to this approach.

Diff: 3

AACSB: Written and oral communication

Question Category: Critical thinking

150) In a short essay, explain the difference between a Gantt chart and a load chart, identifying possible uses for each tool.

A modified version of the Gantt chart that organizes by workstation is called a load chart. Instead of listing activities on the vertical axis, load charts list either whole departments or specific resources. This information allows managers to plan and control for capacity utilization by workstation rather than by activity.

Diff: 3

AACSB: Written and oral communication

Question Category: Critical thinking

151) In a short essay, identify and explain the first three steps in developing a PERT network.

The second step is to determine the order in which these events must be completed.

The third step is to diagram the flow of activities from start to finish, identifying each activity and its relationship to all other activities. Use circles to indicate events and arrows to represent activities. This results in a flowchart diagram called a PERT network.

Diff: 3

AACSB: Written and oral communication

Question Category: Critical thinking

152) In a short essay, identify and explain the final two steps in developing a PERT network.

Using the network diagram that contains time estimates for each activity, the final step is to determine a schedule for the start and finish dates of each activity and for the entire project. Any delays that occur along the critical path require the most attention because they can delay the whole project.

Diff: 3

AACSB: Written and oral communication

Question Category: Critical thinking

153) In a short essay, discuss technology's role in manufacturing.

Technology is also allowing organizations to control costs, particularly in the areas of predictive maintenance, remote diagnostics, and utility cost savings. For instance, new types of Internet-compatible equipment contain embedded Web servers that can communicate proactively to inform users that a device needs maintenance or servicing. These devices can do more than simply beep or light up an indicator button. For example, some devices have the ability to initiate email or signal a pager at a supplier, the maintenance department, or contractor describing the specific problem and requesting parts and service.

Diff: 3

AACSB: Written and oral communication

Question Category: Critical thinking