Question 1

The Progression to VNM should include all of the following activities and approaches except one.Which one should not be included?

Accepted Answer

A)  Vertically integrate by buying suppliers 
B)  Reporting: member, executive group 
C)  Data: facilitates strategic planning 
D)  Understand key supply industries 
E)  E-Commerce II 
A)  Vertically integrate by buying suppliers 
B)  Reporting: member, executive group 
C)  Data: facilitates strategic planning 
D)  Understand key supply industries 
E)  E-Commerce II

Question 2

A problem that the new supply management team faced at Megatronics was the fact the price often rises when the focus is shifted onto TCO.The solution presented by the team was as follows,"If we pay a price premium that is offset with a reduction in the total cost of ownership,we will document our analysis."

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a Megatronics initiative for Year 1?

Accepted Answer

A)  Initiate supplier development program 
B)  Implement a total cost of ownership program 
C)  Develop and implement a training program 
D)  Enter into as many supply alliances as possible 
E)  Initiate a supplier certification program 
A)  Initiate supplier development program 
B)  Implement a total cost of ownership program 
C)  Develop and implement a training program 
D)  Enter into as many supply alliances as possible 
E)  Initiate a supplier certification program

Question 4

Which of the following initiatives is not one of the proactive supply management initiatives proposed by the new supply management team at Megatronics?

Accepted Answer

A)  Six Sigma program 
B)  Total Quality Management 
C)  Utilize early supplier involvement (ESI) 
D)  Early supply management involvement 
E)  Improve source selection process 
A)  Six Sigma program 
B)  Total Quality Management 
C)  Utilize early supplier involvement (ESI) 
D)  Early supply management involvement 
E)  Improve source selection process

Question 5

Which of the following statements is not representative of Megatronics strategic planning?

Accepted Answer

A)  The supply strategy is independent of the strategies of other functional areas in the firm 
B)  Supply management must develop and manage the firm's supply strategy as an integrated whole instead of a series of unrelated strategies 
C)  The corporation's strategy is the key driver of the supply strategy 
D)  The technology, marketing, finance, and production strategies are all inputs to the supply strategy 
E)  The supply strategy is an input to the corporation's strategies for technology, marketing, finance and production 
A)  The supply strategy is independent of the strategies of other functional areas in the firm 
B)  Supply management must develop and manage the firm's supply strategy as an integrated whole instead of a series of unrelated strategies 
C)  The corporation's strategy is the key driver of the supply strategy 
D)  The technology, marketing, finance, and production strategies are all inputs to the supply strategy 
E)  The supply strategy is an input to the corporation's strategies for technology, marketing, finance and production

Question 6

Which of the following is not taken from the mission statement for Megatronic's supply chain management function?

Accepted Answer

A)  We will design and implement necessary process and cultural changes to create a fully integrated customer driven supply management system 
B)  We will integrate suppliers into our business plans and processes in an environment of respect and trust, establish full cooperation throughout the enterprise, and establish supply management as a core competency 
C)  We will improve the bottom line by facilitating increased profitable sales while minimizing the total cost of ownership of all materials, equipment, supplies, and services 
D)  We will ensure that diversity suppliers have opportunities to play vital roles in our supply base 
E)  We will prioritize our suppliers based on their ability to lower prices 
A)  We will design and implement necessary process and cultural changes to create a fully integrated customer driven supply management system 
B)  We will integrate suppliers into our business plans and processes in an environment of respect and trust, establish full cooperation throughout the enterprise, and establish supply management as a core competency 
C)  We will improve the bottom line by facilitating increased profitable sales while minimizing the total cost of ownership of all materials, equipment, supplies, and services 
D)  We will ensure that diversity suppliers have opportunities to play vital roles in our supply base 
E)  We will prioritize our suppliers based on their ability to lower prices

Question 7

Megatronic's Vision Statement given in Chapter 22 is "Supply management at Megatronics will focus on getting the lowest prices for procured goods and services."

Accepted Answer

A) True 
 B)False

Question 8

The Progression to VNM should include all of the following activities and approaches except one.Which one should not be included?

Accepted Answer

A)  Develop and manage alliances and networks 
B)  Price based competition 
C)  Virtually defect free materials and services 
D)  Leverage supplier technology 
E)  Integrated supply strategy 
A)  Develop and manage alliances and networks 
B)  Price based competition 
C)  Virtually defect free materials and services 
D)  Leverage supplier technology 
E)  Integrated supply strategy

Question 9

Which of the following is not a Megatronics initiative for Year 1?

Accepted Answer

A)  Train alliance champions 
B)  Invest in an Enterprise Resource Planning (ERP) system 
C)  Include supply engineers on appropriate new development teams 
D)  Initiate reverse auctions where appropriate 
E)  Design, develop, and implement aggressive social responsibilities program 
A)  Train alliance champions 
B)  Invest in an Enterprise Resource Planning (ERP) system 
C)  Include supply engineers on appropriate new development teams 
D)  Initiate reverse auctions where appropriate 
E)  Design, develop, and implement aggressive social responsibilities program

Question 10

The overall goals for year 1 at Megatronics were to reduce the average price on incoming goods and services by 5 percent and reduce the average incoming defects by 10 percent to 900 ppm.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is not one of the four categories of supplier that Megatronics developed?

Accepted Answer

A)  World Class 
B)  Suppliers who are acceptable and have the potential to be developed to world class status 
C)  Suppliers who are acceptable and provide products and services where a supply alliance is not needed 
D)  Suppliers to acquire through takeover 
E)  Suppliers to drop 
A)  World Class 
B)  Suppliers who are acceptable and have the potential to be developed to world class status 
C)  Suppliers who are acceptable and provide products and services where a supply alliance is not needed 
D)  Suppliers to acquire through takeover 
E)  Suppliers to drop

Question 12

The leadership lessons from the late Gene Richter include:

Accepted Answer

A)  Have a participative management style 
B)  Get to really know your people 
C)  Be a good listener 
D)  Be consistent 
E)  All of the above 
A)  Have a participative management style 
B)  Get to really know your people 
C)  Be a good listener 
D)  Be consistent 
E)  All of the above

Question 13

Implementing Value Network Management is as much about leadership and management as it is about supply management concepts and practices.

Accepted Answer

A) True 
 B)False

Question 14

The new supply management team at Megatronics understood the fact that the costs savings of a TCO approach are easily measurable and instantly known.

Accepted Answer

A) True 
 B)False

Question 15

The overall goals for year 1 at Megatronics were to reduce the average price on incoming goods and services by 50 percent.

Accepted Answer

A) True 
 B)False

Question 16

According to the presentation in Chapter 22,Value Network Management requires thinking within the constraints (or box)of traditional boundaries.For example,a traditional constraint might be to "not share information with suppliers that is not related directly to the transactional acquisition of the materials."

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is not true of "your" position at Megatronics as the hypothetical new hire as the Vice-president of Supply Management?

Accepted Answer

A)  Base salary $115,000 per year 
B)  You have the obligation to reduce the cost of purchased goods and services by an average of 5% per year 
C)  You have the obligation to reduce incoming material defects from a current average of 1,000 ppm to 50 ppm over the next 5 years 
D)  You have the obligation to improve cutting-edge technology inflow by 10% per year 
E)  You have the obligation to reduce the average product development cycle by 20% per year 
A)  Base salary $115,000 per year 
B)  You have the obligation to reduce the cost of purchased goods and services by an average of 5% per year 
C)  You have the obligation to reduce incoming material defects from a current average of 1,000 ppm to 50 ppm over the next 5 years 
D)  You have the obligation to improve cutting-edge technology inflow by 10% per year 
E)  You have the obligation to reduce the average product development cycle by 20% per year

Question 18

Which of the following was not one of the initiatives at Megatronics related to either standardization or value engineering/value analysis (VE/VA)?

Accepted Answer

A)  Create a Measurement and Standards Group 
B)  Develop and implement a standardization program 
C)  Hire an outside consultant firm to benchmark 
D)  Provide training in VE/VA 
E)  Hire one or more value engineers for each division 
A)  Create a Measurement and Standards Group 
B)  Develop and implement a standardization program 
C)  Hire an outside consultant firm to benchmark 
D)  Provide training in VE/VA 
E)  Hire one or more value engineers for each division

The Progression to VNM should include all of the following activities and approaches except one.Which one should not be included?

Which of the following is not a Megatronics initiative for Year 1?

Which of the following initiatives is not one of the proactive supply management initiatives proposed by the new supply management team at Megatronics?

Which of the following statements is not representative of Megatronics strategic planning?

Which of the following is not taken from the mission statement for Megatronic's supply chain management function?

Megatronic's Vision Statement given in Chapter 22 is "Supply management at Megatronics will focus on getting the lowest prices for procured goods and services."

The Progression to VNM should include all of the following activities and approaches except one.Which one should not be included?

Which of the following is not a Megatronics initiative for Year 1?

The overall goals for year 1 at Megatronics were to reduce the average price on incoming goods and services by 5 percent and reduce the average incoming defects by 10 percent to 900 ppm.

Which of the following is not one of the four categories of supplier that Megatronics developed?

The leadership lessons from the late Gene Richter include:

Implementing Value Network Management is as much about leadership and management as it is about supply management concepts and practices.

The new supply management team at Megatronics understood the fact that the costs savings of a TCO approach are easily measurable and instantly known.

The overall goals for year 1 at Megatronics were to reduce the average price on incoming goods and services by 50 percent.

Which of the following is not true of "your" position at Megatronics as the hypothetical new hire as the Vice-president of Supply Management?

Which of the following was not one of the initiatives at Megatronics related to either standardization or value engineering/value analysis (VE/VA)?

The Progression to Professional Supply Management

Organizational Issues

Supply Management: an Organization Spanning Activity

A Portfolio of Relationships

New Product Development

Purchasing Descriptions and Specifications

Managing for Quality

The Procurement of Equipment

Purchasing Services

Outsourcing

Sourcing

Global Supply Management

Total Cost of Ownership

Price and Cost Analysis

Methods of Compensation

Negotiation

Contract Formation and Legal Issues

Contact and Relationship Management

Ethics and Social Responsibilities

Production and Inventory Control

Demand Management and Logistics

Filters

Exam 22: Implementing Value Network Management

The Progression to VNM should include all of the following activities and approaches except one.Which one should not be included?

Which of the following is not a Megatronics initiative for Year 1?

Which of the following initiatives is not one of the proactive supply management initiatives proposed by the new supply management team at Megatronics?

Which of the following statements is not representative of Megatronics strategic planning?

Which of the following is not taken from the mission statement for Megatronic's supply chain management function?

Megatronic's Vision Statement given in Chapter 22 is "Supply management at Megatronics will focus on getting the lowest prices for procured goods and services."

The Progression to VNM should include all of the following activities and approaches except one.Which one should not be included?

Which of the following is not a Megatronics initiative for Year 1?

The overall goals for year 1 at Megatronics were to reduce the average price on incoming goods and services by 5 percent and reduce the average incoming defects by 10 percent to 900 ppm.

Which of the following is not one of the four categories of supplier that Megatronics developed?

The leadership lessons from the late Gene Richter include:

Implementing Value Network Management is as much about leadership and management as it is about supply management concepts and practices.

The new supply management team at Megatronics understood the fact that the costs savings of a TCO approach are easily measurable and instantly known.

The overall goals for year 1 at Megatronics were to reduce the average price on incoming goods and services by 50 percent.

Which of the following is not true of "your" position at Megatronics as the hypothetical new hire as the Vice-president of Supply Management?

Which of the following was not one of the initiatives at Megatronics related to either standardization or value engineering/value analysis (VE/VA)?

The Progression to Professional Supply Management

Organizational Issues

Supply Management: an Organization Spanning Activity

A Portfolio of Relationships

New Product Development

Purchasing Descriptions and Specifications

Managing for Quality

The Procurement of Equipment

Purchasing Services

Outsourcing

Sourcing

Global Supply Management

Total Cost of Ownership

Price and Cost Analysis

Methods of Compensation

Negotiation

Contract Formation and Legal Issues

Contact and Relationship Management

Ethics and Social Responsibilities

Production and Inventory Control

Demand Management and Logistics

Filters