Question 1

An organization gains competitive advantage when it:

Accepted Answer

A)  lowers costs and decreases differentiation. 
B)  increases costs and decreases differentiation. 
C)  increases costs and increases differentiation. 
D)  lowers costs and increases differentiation. 
E)  increases costs and lowers prices. 
A)  lowers costs and decreases differentiation. 
B)  increases costs and decreases differentiation. 
C)  increases costs and increases differentiation. 
D)  lowers costs and increases differentiation. 
E)  increases costs and lowers prices. D

Question 2

A company that customizes every product to the unique demands of individual customers is likely to have the least overall cost in its industry.

Accepted Answer

A) True 
 B)False  False

Question 3

Describe the effect of flexible manufacturing and just-in-time inventory on efficiency.

Accepted Answer

Flexible manufacturing aims to reduce the time required to set up production equipment. If setup times for complex production equipment can be reduced, so can setup costs, and efficiency will rise; that is, the time that plant and employees spend in actually producing something will increase. By redesigning the manufacturing process so production equipment geared for manufacturing one product can be quickly replaced with equipment geared to make another product, setup times and costs can be reduced dramatically. Just-in-time (JIT) inventory systems have major implications for efficiency. Great cost savings can result from increasing inventory turnover and reducing inventory holding costs, such as warehousing and storage costs and the cost of capital tied up in inventory.

Question 4

Product development is the management of the value chain activities involved in bringing new or improved goods and services to the market.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true about the members of a self-managed team?

Accepted Answer

A)  They learn a single task and are posted at a single job. 
B)  They require multiple supervisors to monitor them. 
C)  They are responsible for escalating company's costs. 
D)  They assume the responsibilities of first-line managers. 
E)  They create a taller organizational hierarchy thereby increasing efficiency. 
A)  They learn a single task and are posted at a single job. 
B)  They require multiple supervisors to monitor them. 
C)  They are responsible for escalating company's costs. 
D)  They assume the responsibilities of first-line managers. 
E)  They create a taller organizational hierarchy thereby increasing efficiency.

Question 6

In order to design for ease of production, a company should:

Accepted Answer

A)  adopt a challenging quality goal. 
B)  design products that have fewer component parts. 
C)  increase the average number of customer queries solved per day. 
D)  decrease the number of employees performing a particular task. 
E)  create an additional product to be supplied with a main product. 
A)  adopt a challenging quality goal. 
B)  design products that have fewer component parts. 
C)  increase the average number of customer queries solved per day. 
D)  decrease the number of employees performing a particular task. 
E)  create an additional product to be supplied with a main product.

Question 7

Which of the following should an organization do in order to obtain a competitive advantage through superior innovation?

Accepted Answer

A)  Reduce the number of components that go into its products 
B)  Decrease the number of product attributes and lower the price of its products 
C)  Setup a strong team to handle after-purchase support 
D)  Produce products with technologies that have not been used previously 
E)  Provide high quality products to create a brand-name reputation for its products 
A)  Reduce the number of components that go into its products 
B)  Decrease the number of product attributes and lower the price of its products 
C)  Setup a strong team to handle after-purchase support 
D)  Produce products with technologies that have not been used previously 
E)  Provide high quality products to create a brand-name reputation for its products

Question 8

The strategy of designing the machine-worker interface to increase operating system efficiency is called _____.

Accepted Answer

A)  facilities layout 
B)  flexible manufacturing 
C)  process reengineering 
D)  customer relationship management 
E)  materials management 
A)  facilities layout 
B)  flexible manufacturing 
C)  process reengineering 
D)  customer relationship management 
E)  materials management

Question 9

A _____ is a small-wheeled container used in a just-in-time inventory system to move component parts from suppliers to the assembly line.

Accepted Answer

A)  ketbull 
B)  gurney 
C)  conveyor belt 
D)  kanban 
E)  keltan 
A)  ketbull 
B)  gurney 
C)  conveyor belt 
D)  kanban 
E)  keltan

Question 10

Successful implementation of TQM requires substantial cooperation between:

Accepted Answer

A)  regulators and the organization. 
B)  customers and suppliers. 
C)  different value chain functions. 
D)  accounting and distribution functions. 
E)  managers and stockholders. 
A)  regulators and the organization. 
B)  customers and suppliers. 
C)  different value chain functions. 
D)  accounting and distribution functions. 
E)  managers and stockholders.

Question 11

Effective process reengineering reduces the number of order fulfillment tasks that must be performed or reduces the time each task takes.

Accepted Answer

A) True 
 B)False

Question 12

Higher product quality can increase efficiency and thereby lower operating costs.

Accepted Answer

A) True 
 B)False

Question 13

To decrease product defects, materials managers must work closely with _____ to improve the quality of the raw materials and obtained parts.

Accepted Answer

A)  suppliers 
B)  customers 
C)  employees 
D)  stockholders 
E)  distributors 
A)  suppliers 
B)  customers 
C)  employees 
D)  stockholders 
E)  distributors

Question 14

A written agreement that details product development factors such as responsibilities, resource commitments, budgets, time lines, and development milestones is called a contract book.

Accepted Answer

A) True 
 B)False

Question 15

A firm manufactures custom-made furniture based on customer specifications. Which of the following facilities layout would best suit the firm's needs?

Accepted Answer

A)  Process layout 
B)  Fixed-position layout 
C)  Sequential layout 
D)  Product layout 
E)  Flexible manufacturing layout 
A)  Process layout 
B)  Fixed-position layout 
C)  Sequential layout 
D)  Product layout 
E)  Flexible manufacturing layout

Question 16

According to total quality management philosophy, quality is defined by the managers involved in quality control or engineering.

Accepted Answer

A) True 
 B)False

Question 17

In a _____, machines are organized so that each operation needed to manufacture a product or process is performed at workstations arranged in a fixed sequence.

Accepted Answer

A)  process layout 
B)  utility layout 
C)  facilities layout 
D)  product layout 
E)  fixed-position layout 
A)  process layout 
B)  utility layout 
C)  facilities layout 
D)  product layout 
E)  fixed-position layout

Question 18

Which of the following is a potential outcome when organizations offer a very high level of responsiveness to customers?

Accepted Answer

A)  Quality of products will become low. 
B)  Customer satisfaction will decrease. 
C)  Company costs will become too high. 
D)  Customer relationship will not improve. 
E)  Production costs will decrease. 
A)  Quality of products will become low. 
B)  Customer satisfaction will decrease. 
C)  Company costs will become too high. 
D)  Customer relationship will not improve. 
E)  Production costs will decrease.

Question 19

A fixed-position layout is used for producing a variety of custom-made products, each tailored to the needs of a different kind of customer.

Accepted Answer

A) True 
 B)False

Question 20

The Donut House, a large donut bakery with outlets across several cities, improves the quality of the dough it uses and introduces a wide range of toppings and glazes to go with its donuts. This is an example of _____.

Accepted Answer

A)  quantum process innovation 
B)  quantum product innovation 
C)  incremental product innovation 
D)  incremental process innovation 
E)  process structuring 
A)  quantum process innovation 
B)  quantum product innovation 
C)  incremental product innovation 
D)  incremental process innovation 
E)  process structuring

An organization gains competitive advantage when it:

A company that customizes every product to the unique demands of individual customers is likely to have the least overall cost in its industry.

Describe the effect of flexible manufacturing and just-in-time inventory on efficiency.

Product development is the management of the value chain activities involved in bringing new or improved goods and services to the market.

Which of the following is true about the members of a self-managed team?

In order to design for ease of production, a company should:

Which of the following should an organization do in order to obtain a competitive advantage through superior innovation?

The strategy of designing the machine-worker interface to increase operating system efficiency is called _____.

A _____ is a small-wheeled container used in a just-in-time inventory system to move component parts from suppliers to the assembly line.

Successful implementation of TQM requires substantial cooperation between:

Effective process reengineering reduces the number of order fulfillment tasks that must be performed or reduces the time each task takes.

Higher product quality can increase efficiency and thereby lower operating costs.

To decrease product defects, materials managers must work closely with _____ to improve the quality of the raw materials and obtained parts.

A written agreement that details product development factors such as responsibilities, resource commitments, budgets, time lines, and development milestones is called a contract book.

A firm manufactures custom-made furniture based on customer specifications. Which of the following facilities layout would best suit the firm's needs?

According to total quality management philosophy, quality is defined by the managers involved in quality control or engineering.

In a _____, machines are organized so that each operation needed to manufacture a product or process is performed at workstations arranged in a fixed sequence.

Which of the following is a potential outcome when organizations offer a very high level of responsiveness to customers?

A fixed-position layout is used for producing a variety of custom-made products, each tailored to the needs of a different kind of customer.

The Donut House, a large donut bakery with outlets across several cities, improves the quality of the dough it uses and introduces a wide range of toppings and glazes to go with its donuts. This is an example of _____.

Managers and Managing

The Evolution of Management

Values, Attitudes, Emotions, and Culture: the Manager As a Person

Ethics and Social Responsibility

Managing Diverse Employees in a Multicultural Environment

Managing in the Global Environment

Decision Making, Learning, Creativity, and Entrepreneurship

The Manager As a Planner and a Strategist

Managing Organizational Structure and Culture

Organizational Control and Change

Human Resource Management

Motivation Performance

Leadership

Effective Groups and Teams

Promoting Effective Communication

Managing Conflict, Politics, and Negotiation

Used Advanced Information Technology to Increase Performance

Filters

Exam 9: Value Chain Management: Functional Strategies for Competitive Advantage

An organization gains competitive advantage when it:

A company that customizes every product to the unique demands of individual customers is likely to have the least overall cost in its industry.

Describe the effect of flexible manufacturing and just-in-time inventory on efficiency.

Product development is the management of the value chain activities involved in bringing new or improved goods and services to the market.

Which of the following is true about the members of a self-managed team?

In order to design for ease of production, a company should:

Which of the following should an organization do in order to obtain a competitive advantage through superior innovation?

The strategy of designing the machine-worker interface to increase operating system efficiency is called _____.

A _____ is a small-wheeled container used in a just-in-time inventory system to move component parts from suppliers to the assembly line.

Successful implementation of TQM requires substantial cooperation between:

Effective process reengineering reduces the number of order fulfillment tasks that must be performed or reduces the time each task takes.

Higher product quality can increase efficiency and thereby lower operating costs.

To decrease product defects, materials managers must work closely with _____ to improve the quality of the raw materials and obtained parts.

A written agreement that details product development factors such as responsibilities, resource commitments, budgets, time lines, and development milestones is called a contract book.

A firm manufactures custom-made furniture based on customer specifications. Which of the following facilities layout would best suit the firm's needs?

According to total quality management philosophy, quality is defined by the managers involved in quality control or engineering.

In a _____, machines are organized so that each operation needed to manufacture a product or process is performed at workstations arranged in a fixed sequence.

Which of the following is a potential outcome when organizations offer a very high level of responsiveness to customers?

A fixed-position layout is used for producing a variety of custom-made products, each tailored to the needs of a different kind of customer.

The Donut House, a large donut bakery with outlets across several cities, improves the quality of the dough it uses and introduces a wide range of toppings and glazes to go with its donuts. This is an example of _____.

Managers and Managing

The Evolution of Management

Values, Attitudes, Emotions, and Culture: the Manager As a Person

Ethics and Social Responsibility

Managing Diverse Employees in a Multicultural Environment

Managing in the Global Environment

Decision Making, Learning, Creativity, and Entrepreneurship

The Manager As a Planner and a Strategist

Managing Organizational Structure and Culture

Organizational Control and Change

Human Resource Management

Motivation Performance

Leadership

Effective Groups and Teams

Promoting Effective Communication

Managing Conflict, Politics, and Negotiation

Used Advanced Information Technology to Increase Performance

Filters