Deck 18: Managing Operations

Question 1

In companies such as Dubai Aluminum, improvements in quality would be aided by employee empowerment, although such empowerment is not a necessity.

Answer 1

False

Question 2

In a manufacturing process, an organization creates value by turning inputs such as people, capital and equipment into outputs such as goods or services.

Answer 2

False

Question 3

Despite its importance, value chain analysis is not frequently used in the Arab region.

Answer 3

True

Question 4

For individual organizations, increased productivity gives them a more competitive cost structure and the ability to offer more competitive prices.

Question 5

Better demand forecasting is necessary and possible because of closer ties with customers and suppliers.

Question 6

The Arab economy, and to a large extent the global economy, is dominated by the creation and sale of physical goods.

Question 7

A service organization, such as the Arab Bank, does not transform inputs into outputs because such transformation only happens in manufacturing firms.

Question 8

Selected functions may need to be done collaboratively with other partners in the value chain.

Question 9

Before the late 1970s, U.S. manufacturers were able to make better quality goods less expensively than foreign companies.

Question 10

Value chain management is internally oriented and focuses on efficient flow of incoming materials to organizations.

Question 11

It is important that managers outline expectations for what is involved in the organization's pursuit of value chain management.

Question 12

Value is provided to customers through transforming raw materials and other resources into some product or service that end users need or desire when, where, and how they want it.

Question 13

The goal of value chain management is to create a value chain strategy that meets and exceeds customers' needs and desires and allows for full and seamless integration among all members of the chain.

Question 14

One of the reasons why operations management is so important to organizations and managers is that it plays a strategic role in an organization's competitive success.

Question 15

When there's too much trust, partners in a value chain will be reluctant to share information, capabilities, and processes.

Question 16

Old measures are adequate for evaluating performance of various activities along the value chain.

Question 17

High productivity can come solely from good people management.

Question 18

The transformation process is as evident in service organizations as it is in manufacturing organizations.

Question 19

Managing an organization from a value chain perspective is easy.

Question 20

The organization's hiring process must be designed to identify those employees who have the ability to learn and adapt.

Question 21

Deming believed which of the following?

A) High productivity comes from good people management.
B) Training is generally wasted time.
C) Employees should learn movement efficiency, not statistical methods.
D) Managers are the primary source of increased productivity.

Question 22

is the performance characteristics, features and attributes, and any other aspects of goods and services for which customers are willing to give up resources.

A) Cost
B) Convenience
C) Performance
D) Value

Question 23

In its entirety, the _ can encompass the supplier's suppliers to the customer's customers.

A) financial chain
B) value chain
C) supply chain
D) ethical chain

Question 24

Quality improvement initiatives aren't possible without having some way to monitor and evaluate their progress.

Question 25

All organizations produce goods or services through the process.

A) engineering
B) transformation
C) operations
D) manufacturing

Question 26

By the late 1970s, U.S. executives responded to their manufacturing crisis by .

A) minimizing corporate authority and visibility of manufacturing executives
B) investing heavily in improving manufacturing technology
C) focusing on improving finance and marketing
D) incorporating former production requirements into the organization's overall strategic plan

Question 27

New generations of internet- compatible equipment contain embedded web servers that can communicate proactively.

Question 28

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

A) Control
B) Planning
C) Operations
D) Systems

Question 29

Which of the following is not an example of a service organization?

A) a manufacturing plant
B) a university
C) a hospital
D) military forces

Question 30

It is easy to see the operations management process at work in _ .

A) service organizations
B) manufacturing organizations
C) financial organizations
D) consulting organizations

Question 31

Service organizations produce in the form of services.

A) nonphysical inputs
B) physical outputs
C) physical inputs
D) nonphysical outputs

Question 32

For organizations to improve productivity, they should focus on which of the following?

A) operations variables only
B) people only
C) people and operations variables
D) people or operations variables, depending on the industry

Question 33

United Pharmaceutical (Jordan) uses a(n) _ to better manage its operations.

A) enterprise resource planning system
B) inventory management system
C) product demand forecast information system
D) joint marketing system

Question 34

is the process of managing the facilities, functions, and activities involved in producing and delivering a product or service from suppliers to customers.

A) Value chain management
B) Ethical chain management
C) Financial chain management
D) Supply chain management

Question 35

The is the entire series of organizational work activities that add value at each step, beginning with the processing of raw materials and ending with finished product in the hands of end users.

A) supply chain
B) value chain
C) financial chain
D) ethical chain

Question 36

After World War II, as U.S. executives neglected production, managers in other countries took the opportunity to develop modern, computer- based, and technologically advanced facilities that fully integrated manufacturing operations into .

A) productivity decisions
B) strategic planning decisions
C) Deming's 14 points
D) value chain management

Question 37

Where did the modern era of manufacturing primarily begin?

A) the coal industry
B) northeastern textile mills
C) southern cotton mills
D) Detroit automobile factories

Question 38

Which of the following is an example of an input as described by an organization's operations system?

A) capital
B) innovative products
C) accounting reports
D) sales

Question 39

There are very few Arab companies that implement Six Sigma as it is irrelevant to the Arab context.

Question 40

Managers must motivate high levels of effort from employees.

Question 41

The better the the various chain participants, the better the .

A) commitment of; employee relations
B) attitudes of; customer relations
C) collaboration among; customer solutions
D) cooperation among; productivity

Question 42

For the value chain to achieve its goal of exceeding customer needs, must be developed.

A) standards
B) collaborative relationships
C) new products and services
D) technology

Question 43

The payoff from is that it can be used to restructure the value chain to better serve end users.

A) coordination and collaboration
B) an organizational process
C) an investment in information technology
D) leadership

Question 44

Ideally, when managers outline expectations for what's involved in the organization's pursuit of value chain management, they should start with .

A) a plan
B) the requirements
C) a vision or mission statement
D) a goal

Question 45

The main human resource requirements for value chain management include .

A) one- time training
B) an effective firing process
C) diversity
D) flexible approaches to job design

Question 46

In value chain management, ultimately the are the ones with the power.

A) customers
B) employees
C) buyers
D) suppliers

Question 47

Organizational barriers that are difficult for managers to handle include .

A) refusal to share information
B) incompetent employees
C) privacy issues
D) reluctance to conform to the status quo

Question 48

is the key description of job design in a value chain organization.

A) Innovation
B) Strategy
C) Flexibility
D) Structure

Question 49

A is a strategic design for how a company plans to profit from its strategies, processes, and activities.

A) value chain
B) supply chain
C) just- in- time inventory model
D) business model

Question 50

All of the following are characteristics of value chain management except .

A) it is externally oriented
B) it is effectiveness oriented
C) it is efficiency oriented
D) it focuses on both incoming materials and outgoing products and services

Question 51

is externally oriented and focuses on both incoming materials and outgoing products and services.

A) Ethical chain management
B) Financial chain management
C) Value chain management
D) Supply chain management

Question 52

Which of the following is a cultural attitude that supports the successful implementation of value chain management?

A) business intelligence
B) competition
C) collaborating
D) benchmarking

Question 53

Which of the following is an obstacle in managing the value chain?

A) systems
B) individual barriers
C) managerial attitudes
D) required capabilities

Question 54

is the process of managing the entire sequence of integrated activities and information about product flows along the entire value chain.

A) Value chain management
B) Financial chain management
C) Supply chain management
D) Ethical chain management

Question 55

Which of the following is a main requirement for successful value chain management?

A) competition
B) R&D
C) organizational structure
D) coordination

Question 56

Value chain management radically changes .

A) ethical issues
B) mission statements
C) corporate goals and objectives
D) organizational processes

Question 57

Which of the following obstacles to value chain management is among the most difficult for managers to handle?

A) required capabilities
B) cultural attitudes
C) organizational barriers
D) people

Question 58

The ways in which organizational work is done are described as .

A) organizational processes
B) corporate visions
C) policies and procedures
D) goals and objectives

Question 59

According to a survey of manufacturers who have embarked on value chain management initiatives, was a benefit that companies reported.

A) cost savings
B) improved logistics
C) increased market share
D) increased sales

Question 60

Which of the following is a question that should be asked for each and every organizational process?

A) "How can the cash flow be improved?"
B) "How can we better configure our product to satisfy manufacturers?"
C) "Where can external knowledge be leveraged to improve the flow of material and information?"
D) "How can we improve customer service?"

Question 61

Solutions (Scenario)
Ramzy is the new strategic manager for Solutions Tech, Inc., a management consulting firm dedicated to assisting small businesses in the pursuit of success. He is currently in a meeting with Jassem, who is the owner of a successful small business that creates computer displays for big companies. Ramzy is reviewing the business strategy at Jassem's business and has some recommendations.
Ramzy told Jassem that flexibility in job design means that jobs should be redesigned around work processes that .

A) help organizations learn more about their customers
B) link functions charged with creating value to customers
C) reveal customers' flexibility
D) solidify the commitment of members to the goals of their respective work unit

Question 62

Solutions (Scenario)
Ramzy is the new strategic manager for Solutions Tech, Inc., a management consulting firm dedicated to assisting small businesses in the pursuit of success. He is currently in a meeting with Jassem, who is the owner of a successful small business that creates computer displays for big companies. Ramzy is reviewing the business strategy at Jassem's business and has some recommendations.
Ramzy told Jassem that an effective hiring process is important to value chain management because .

A) flexible job designs require flexible people to fill them
B) value chain management requires highly experienced and knowledgeable employees
C) value chain management requires a diverse group of highly specialized employees
D) employees have to have the knowledge and tools they need to do their jobs efficiently

Question 63

Since value chain management relies heavily on substantial information technology infrastructure, should always be addressed.

A) standardized information exchange protocols
B) system security
C) software compatibility
D) personal identity theft

Question 64

can cause a problem because your organization's valuable assets can be compromised.

A) Too little trust
B) Too much control
C) Too little control
D) Too much trust

Question 65

A Lesson in Operations Management (Scenario)
Hana had been asked to attend training in operations management. Her background and training had previously been in acco but with the reorganization looming, it was either learn a new skill or be downsized. She was actually looking forward to the She felt her background with numbers should prove valuable in operations management, but she admitted that she knew littl the field. Until now, she had been in a support staff function and had little feel for how the organization's product went from raw materials to finished product. Hana's first class would be tonight at Central University, and she was excited about the opportunity.
Hana realized that inputs include which of the following?

A) accounting reports
B) sales
C) motivated employees
D) capital

Question 66

Unsupportive cultural attitudes-especially trust and _ _-can be obstacles to value chain management.

A) respect
B) communication
C) commitment
D) control

Question 67

Solutions (Scenario)
Ramzy is the new strategic manager for Solutions Tech, Inc., a management consulting firm dedicated to assisting small businesses in the pursuit of success. He is currently in a meeting with Jassem, who is the owner of a successful small business that creates computer displays for big companies. Ramzy is reviewing the business strategy at Jassem's business and has some recommendations.
Before making any recommendations, Ramzy informed Jassem that a is the entire series of organizational work activities that add value at each step, beginning with the processing of raw materials and ending with finished product in the hands of end users.

A) supply chain
B) ethical chain
C) value chain
D) financial chain

Question 68

A Lesson in Operations Management (Scenario)
Hana had been asked to attend training in operations management. Her background and training had previously been in acco but with the reorganization looming, it was either learn a new skill or be downsized. She was actually looking forward to the She felt her background with numbers should prove valuable in operations management, but she admitted that she knew littl the field. Until now, she had been in a support staff function and had little feel for how the organization's product went from raw materials to finished product. Hana's first class would be tonight at Central University, and she was excited about the opportunity.
Hana must remember that productivity is a composite of variables.

A) structural and procedural
B) task and relationship
C) people and operations
D) unpredictable

Question 69

is allowing organizations to control costs particularly in the areas of predictive maintenance, remote diagnostics, and utility cost savings.

A) Continuous quality
B) Technology
C) Just- in- time inventory practice
D) Quality control

Question 70

A Lesson in Operations Management (Scenario)
Hana had been asked to attend training in operations management. Her background and training had previously been in acco but with the reorganization looming, it was either learn a new skill or be downsized. She was actually looking forward to the She felt her background with numbers should prove valuable in operations management, but she admitted that she knew littl the field. Until now, she had been in a support staff function and had little feel for how the organization's product went from raw materials to finished product. Hana's first class would be tonight at Central University, and she was excited about the opportunity.
On the first night of class, Hana learned that the central focus of operations management was .

A) the transformation process
B) goods
C) capital
D) people

Question 71

A Lesson in Operations Management (Scenario)
Hana had been asked to attend training in operations management. Her background and training had previously been in acco but with the reorganization looming, it was either learn a new skill or be downsized. She was actually looking forward to the She felt her background with numbers should prove valuable in operations management, but she admitted that she knew littl the field. Until now, she had been in a support staff function and had little feel for how the organization's product went from raw materials to finished product. Hana's first class would be tonight at Central University, and she was excited about the opportunity.
Hana had to know what factors were considered inputs versus those considered outputs. Outputs included which of the following?

A) materials
B) technology
C) information
D) goods

Question 72

Solutions (Scenario)
Ramzy is the new strategic manager for Solutions Tech, Inc., a management consulting firm dedicated to assisting small businesses in the pursuit of success. He is currently in a meeting with Jassem, who is the owner of a successful small business that creates computer displays for big companies. Ramzy is reviewing the business strategy at Jassem's business and has some recommendations.
Ramzy told Jassem, "Organizational culture is also a very important component of value chain management. Those cultural attitudes include sharing, openness, respect, and trust, and these attitudes must encompass not only employees, but as well."

A) their families
B) extend to customers
C) extend to management
D) extend to external partners

Question 73

Solutions (Scenario)
Ramzy is the new strategic manager for Solutions Tech, Inc., a management consulting firm dedicated to assisting small businesses in the pursuit of success. He is currently in a meeting with Jassem, who is the owner of a successful small business that creates computer displays for big companies. Ramzy is reviewing the business strategy at Jassem's business and has some recommendations.
Jassem asked Ramzy about the role of human resources in the value chain management process. Ramzy replied, "Employees are the most important resource of any organization, so not surprisingly, employees play a vital role in value chain management. The three main human resource requirements for value chain management are flexible job design, an effective hiring process, and ."

A) a commitment to management by objectives (MBO)
B) ongoing training
C) goal compatible compensation plans
D) an effective firing process

Question 74

Solutions (Scenario)
Ramzy is the new strategic manager for Solutions Tech, Inc., a management consulting firm dedicated to assisting small businesses in the pursuit of success. He is currently in a meeting with Jassem, who is the owner of a successful small business that creates computer displays for big companies. Ramzy is reviewing the business strategy at Jassem's business and has some recommendations.
Noticing that Jassem seemed a bit confused, Ramzy informed him that is the process of managing the entire sequence of integrated activities and information about product flows along the entire value chain.

A) value chain management
B) financial chain management
C) ethical chain management
D) supply chain management

Question 75

Solutions (Scenario)
Ramzy is the new strategic manager for Solutions Tech, Inc., a management consulting firm dedicated to assisting small businesses in the pursuit of success. He is currently in a meeting with Jassem, who is the owner of a successful small business that creates computer displays for big companies. Ramzy is reviewing the business strategy at Jassem's business and has some recommendations.
Jassem asked Ramzy about the barriers commonly faced by organizations looking to implement value chain management. Ramzy replied that organizational barriers are among the most difficult for managers to reconcile. An example of such a barrier might include .

A) employees' refusal to be flexible
B) the belief that when an organization collaborates, it no longer controls its own destiny
C) reluctance to share information
D) mutual trust

Question 76

Solutions (Scenario)
Ramzy is the new strategic manager for Solutions Tech, Inc., a management consulting firm dedicated to assisting small businesses in the pursuit of success. He is currently in a meeting with Jassem, who is the owner of a successful small business that creates computer displays for big companies. Ramzy is reviewing the business strategy at Jassem's business and has some recommendations.
Jassem seemed to understand the theory behind value chain management, but was curious about the requirements for a successful value chain. Ramzy informed Jassem that the main requirements for successful value chain management include all of the following except .

A) collaboration
B) competition
C) employees
D) leadership

Question 77

Solutions (Scenario)
Ramzy is the new strategic manager for Solutions Tech, Inc., a management consulting firm dedicated to assisting small businesses in the pursuit of success. He is currently in a meeting with Jassem, who is the owner of a successful small business that creates computer displays for big companies. Ramzy is reviewing the business strategy at Jassem's business and has some recommendations.
Ramzy wanted to convince Jassem that the value chain was very important and practical. Ramzy briefly reviewed the results of a survey of manufacturers that had embarked on value chain management. Sharing the results of the survey with Jassem, Ramzy indicated that was a benefit that companies reported on this survey.

A) cost savings
B) increased market share
C) increased sales
D) enhanced customer order management

Question 78

Proprietary company information that is critical to a company's efficient and effective functioning and competitiveness is called .

A) real property
B) intellectual property
C) management property
D) tangible property

Question 79

define operations management and briefly discuss the importance of this management process.

Question 80

Solutions (Scenario)
Ramzy is the new strategic manager for Solutions Tech, Inc., a management consulting firm dedicated to assisting small businesses in the pursuit of success. He is currently in a meeting with Jassem, who is the owner of a successful small business that creates computer displays for big companies. Ramzy is reviewing the business strategy at Jassem's business and has some recommendations.
Ramzy told Jassem that the value chain management approach radically changes organizational processes. Jassem asked Ramzy if he could elaborate on this point a bit more. Ramzy said, "When managers decide to manage operations using value chain management, old processes are no longer appropriate. Managers must critically evaluate all organizational processes to determine ."

A) where there are gaps in the value chain
B) the needed critical skills
C) where value is being added
D) the organization's core competencies