MGT 443 FIRST EXAM STUDY GUIDE Chapter 1 QUIZ 1) Which of the following is NOT one of the processes included in operations management? o Finance 2) Structural operations management decisions include: o Capacity, facilities, and technology 3) Physical goods can be differentiated from services in the operations management process by: o Longer lead times and they can be inventoried 4) Which of the following functions would not have to think about “processes”? o Logistics management Production management o Supply management o Accounting o All listed functions must think about “processes”- correct answer 5) Which of the following statements about operations management processes is NOT TRUE? o Outputs of operations management processes are always tangible goods 6) While there is overlap between operations management and supply chain management, the two are different in that: o Operations management focuses on processes, supply chain management focuses on relationships and flows. ) Johnson Company makes widgets, which it then sends to Smith Company. Smith Company puts the widgets in packages. Smith Company is considered by Johnson to be a: o Downstream product supplier 8) To an operations manager the “critical customer” is: o The person who has the greatest impact on design, sales and growth opportunities for the product.

9) Which functional activities are the most related to operations management attempts to manage the flow of materials and information in a firm? Logistics, supply, and customer management 10) Jones Manufacturing sells a part to Lear Corporation. Lear puts this part into a radio, which Lear then sells to Ford. From Ford’s point of view, Jones Manufacturing is a __________ supplier. o Tier 2 Chapter 1 TEST: 1) A supply chain is a global network of organizations and activities involved in: |Designing, transforming, consuming, and disposing of goods and services. | 2) The management of processes used to design, supply, produce and deliver valuable goods and services to the customer. |operations management | 3) The management of the movement of materials and information within, into, and out of the firm. | |logistics management | 4) A type of planning that addresses intermediate-term decisions to target aggregate product demands and to establish how operational capacities will be used to meet them. |tactical planning | 5) Type of planning that establishes short-term priorities and schedules to guide operational resource allocations. | |operational planning | 6) Type of planning that addresses long-term decisions that define the operations objectives and capabilities for the firm and its partners. | |strategic planning | ) A unique set of skills that confers competitive advantages to a firm, because rival firms cannot easily duplicate them. | |core capabilities | 8) Operations managers answer questions of what, how, when, where and who by defining both the ___________ and _____________ aspects of the operations management system. | |structural and infrastructural | ) Growth of the supply-chain management perspective in operations management results from the advent of: | |Technology and infrastructure advances | | |Collaborative networks | | |A focus on core capabilities | |X |

All of the listed options | 0) During the “mass production” era, operations management focused primarily on: | |Internal production | 11) While there is overlap between operations management and supply chain management, the two are different in that: | |Operations management focuses on processes, supply chain | | |management focuses on relationships and flows. | 2) __________________________ typically provide raw materials, components, and services directly related to manufacturing or service production processes. | |Upstream product suppliers | CHAPTER 2 QUIZ: 1) Corporate strategic planning involves decisions related to: o What businesses should we be in? 2) Functional strategic planning involves decisions related to: o What metrics should be used to ensure progress in operations management? ) A well-designed value proposition possesses four characteristics. Which of the following is NOT one of those characteristics? | |It satisfies the financial and strategic objectives of the firm. | |X |It offers the highest product quality in each quality dimension. | | |It can be reliably delivered given the operational capabilities of the | | |firm and its supporting supply chain. | |It differentiates the firm from its competition in a way that is | | |difficult to imitate. | 4) Which of the following is the most appropriate definition of an “order winner”? o A product characteristic that causes customers to choose the product over that of a competitor. 5) Which of the following is not true about “order qualifiers”? |These are product traits that must meet a certain level in order for the product to even be considered by customers. | |The firm must perform acceptably on these traits, usually at least as well as | |competitors’ offerings. | |Customers may not be aware of any level of performance in excess of those | |minimum levels that they have established. | | ** All listed options are true about order qualifiers. | 6) Xanadu makes HD televisions. It claims that its HD televisions have the clearest picture clarity in the industry. Xanadu is emphasizing which dimension of quality? Performance 7) Scantron Inc. laims that its competitors have to recall 10% of their products to fix defects, while it only has to recall 5%. Scantron is emphasizing which dimension of quality? Conformance 8) Which of the following is considered a “process-related” competitive priority? Flexibility 9) You are an upper level manager in a firm and are concerned that corporate objectives are not effectively disseminated throughout the organization and that line level managers do not take them account in making their decisions. Which of the following would best help you to try to correct this problem? -The Balanced Scorecard

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CHAPTER 2 HW: LOOK OVER CHAPTER 2 TEST: 1) When operational capabilities are consistent with and supportive of the value proposition and the outcomes desired by critical customers best describes the concept of: | |Fit | (Fit is the extent to which there is agreement between capabilities, value proposition, and desires of critical customers. ) 2) Maintaining operations that are both profitable and non-damaging to society or the environment. | |sustainability | ) A model that shows how operational changes affect the overall performance of a business unit. | |strategic profit model | 4) A statement of what the firm offers the customer that is viewed as attractive to the customer and is different from what is offered by its competitors. | |value proposition | 5) A product trait that causes customers to choose a product over a competitor’s offering:  for example, better performance or lower price. |order winner | 6) Flexibility has become an important priority for many companies today because: | |There is growing pressure to meet localized, specific customer needs. | | |Product life cycles are decreasing. | | |Technologies are rapidly changing. | |X |All of the above. | 7) The velocity at which a supply chain provides products to the customer is: RESPONSIVENESS CHAPTER 3 QUIZ ) Process thinking causes managers to address critical process elements including: | |Activities | | |Inputs and outputs | | |Flows, structure, resources, and metrics | |X |All of the options are correct | ) Which of the following is not a basic activity type in processes? | |Reporting | 3) Most processes involve two basic types of flows: | |Information flows and physical flows | 4) Joe Jones, Plant Manager at Waco Industries, told a friend that if it was necessary his plant could produce 1,000 items a day if all conditions were just right.

Joe is describing his plant’s: | |Maximum capacity | 5) The sequence below shows four operations for a computer chip assembly process and the effective capacity of each. Which step is the bottleneck? Step 1: 500 chips/hour Step 2: 250 chips/hour Step 3: 200 chips/hour Step 4: 550 chips/hour | |Step 3 | 6) he sequence below shows four operations for a computer chip assembly process and the effective capacity of each. Step 1: 500 chips/hour Step 2: 250 chips/hour Step 3: 200 chips/hour

Step 4: 550 chips/hour Suppose the utilization is 70% of effective capacity. What is the actual output of the process? | |140 chips/hour | 7) Little’s Law suggests that the key to increased throughput is | |Shorter flow times | 8) A short-term, highly focused effort for improving a process is known as a: | |Kaizen event | ) One implication of increased utilization in a process is that: | |Waiting time typically will go up. | CHAPTER 3 HW: LOOK OVER CHAPTER 3 TEST: 1) The level of capacity or output that the process can be expected to produce under normal conditions; what management plans for under normal conditions. | |effective capacity | 2) The percent of process capacity that is actually used. | |utilization | ) A radical business wide redesign of processes with the goal of improving customer service and the strategic position of the firm. | |Business process reengineering | 4) A way of viewing activities in an organization as processes rather than as departments or functions. | |process thinking | 5) The limit on the amount of output per period of time that a process can generate or store given a level of inputs. |capacity | 6) The percentage of units successfully produced as a percentage of inputs. | |yield rates | 7) Anne Smith, Plant Manager at Mammoth Industries, told a friend that if it was necessary, her plant could produce 1,500 items a day if all conditions were just right. Anne is describing her plant’s: | |Maximum capacity | ) The sequence below shows four operations for a widget assembly process and the effective capacity of each. Which is the bottleneck? Step 1:  200 widgets/ hour Step 2:  300 widgets/ hour Step 3:  150 widgets/ hour Step 4:  250 widgets/ hour | |Step 3 | 9) A short-term highly focused effort for improving a process is known as a: | |Kaizen event | 10) You walk into a hair stylist shop. All stylists are busy and you sit in the waiting area.

You are in which of the following process activities? | |Delay | 11) One implication of increased utilization in a process is that: | |Waiting time typically will go up. | CHAPTER 3S QUIZ: 1) “Bounding” a process is necessary because: | |Without bounding, it is difficult to determine the beginning | | |and ending points for the analysis. 2-4) *Know what the symbols stand for! 5) The principles of process improvement suggest that an effective, efficient process: |Minimizes the number of entry points of a work piece into the process. | 6) The state of the process as it currently exists is its ______________  . | |current state | 7) A technique for mapping an entire service system, so that the process can be analyzed, monitored, and improved in its ability to satisfy the needs of the customer. |service blueprinting | 9) The process of “stapling yourself to an order” refers to: | |Pretending you are the work piece moving through a process. | 10)Joe’s Quick Oil Change shop is interested in improving its ability to satisfy customers. The most appropriate mapping tool for a company such as this is called: | |Service blueprinting | Chapter 3s HW |  | |  Create the shopping list |  Operation  | |  Checking the cupboards and refrigerator to |  Operation  | |  determine what products are needed | | |  Move to the grocery store |  Transportation  | |  Determining the amount of money available for the |  Inspection  | |  next week’s purchases | | | |  | |  Waiting for a parking spot |  Delay  | |  Packing the car |  Operation  | |  Looking for items and buying them |  Operation  | |  Driving back home |  Transportation  | | | |  |  | |  Decision  |make a decision as to where we should ship the frames. |  Transportation  |move the frame to one of the three warehouses. | |  Storage  |store the frames in the warehouse. | |  Operation  |receive the order from the customer. | |  Transportation  |ship the order. | |  Storage  |finished goods inventory. | |  Decision  |decide which warehouse will be used to ship out the order. | |  Operation  |produce the eyeglass frames. |  Operation  |pick, pack, and prepare to ship the order. | | | |  The three-warehouse  process saves on transportation costs. | |  The one-warehouse  process is simpler. | CHAPTER 3S TEST: 1) You, as a supply chain analyst, have been approached by the Vice President of Supply

Chain Operations to come up with a recommendation for improving the throughput time for the manufacture of Widget A. You quickly realize that you need a process map before you proceed. What is the first step you should undertake to map the process? | |Identify the desired outcomes of the process. | ) After you have drawn the “current state” process map, you decide that you need a tool for showing the actual moves of material (and their locations) that take place in the manufacture of Widget A. Which of the following tools would be most appropriate? -A PHYSICAL LAYOUT DIAGRAM 3) Deciding where to position an activity in the overall process–either on the critical path or off the critical path | |repositioning | 4) A disposition decision to drop the activity because it generates waste | |eliminate | ) A technique used to indicate the general flow of plant processes and equipment | |process flow diagramming | 8) A table that summarizes the current process, the proposed new process, and identifies the expected improvement offered by the proposed process | |process summary table | 9) The first step in process mapping and analysis is to: | |Determine the desired outcome for the process and the associated | | |metrics needed to evaluate its performance. | 0) A critical process: | |is shared | | |is related to a core competency | | |feeds multiple downstream processes | |> |any of these options would be correct. | 11) Which of the following is/are a value code? | |V, W, N or ? | 12) The ______ disposition activity leaves the activity intact. | |Keep | 3) A technique for mapping an entire service system, so that the process can be analyzed, monitored, and improved in its ability to satisfy the needs of the customer. | |service blueprinting | 14) “Bounding” a process is necessary because: | |Without bounding, it is difficult to determine the beginning and ending | | |points for the analysis. | 15) The process of “stapling yourself to an order” refers to: |> |Pretending you are the workpiece moving through a process. | 6) You observe three different people doing the same task using three different approaches (with differing levels of quality, output and lead time). Which of the following disposition options is most appropriate for this situation? |> |Rethink | 17) Deciding what to do with each specific activity is known as: |> |disposing | 18) A technique that documents both the horizontal and vertical movements of work within the process. | |physical layout diagramming |

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