Deck 18: Managing Operations

Question 1

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

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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.

Answer 3

True

Question 4

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

Question 5

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

Question 6

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

Question 7

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

Question 8

High productivity can come solely from good people management.

Question 9

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

Question 10

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

Question 11

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 12

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

Question 13

Managing an organization from a value chain perspective is easy.

Question 14

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

Question 15

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 16

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

Question 17

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

Question 18

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

Question 19

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

Question 20

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

Question 21

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

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

Question 22

Where did the modern era of manufacturing primarily begin?

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

Question 23

Deming believed which of the following?

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

Question 24

________ 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) Supply chain management
C) Financial chain management
D) Ethical chain management

Question 25

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

Question 26

________ 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) Performance
C) Convenience
D) Value

Question 27

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

Question 28

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

Question 29

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

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

Question 30

All organizations produce goods or services through the ________ process.

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

Question 31

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

Question 32

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

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

Question 33

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

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

Question 34

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

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

Question 35

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

Question 36

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

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

Question 37

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

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

Question 38

Service organizations produce ________ in the form of services.

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

Question 39

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

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

Question 40

Managers must motivate high levels of effort from employees.

Question 41

The main human resource requirements for value chain management include ________.

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

Question 42

Organizational barriers that are difficult for managers to handle include ________.

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

Question 43

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

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

Question 44

Value chain management radically changes ________.

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

Question 45

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

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

Question 46

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

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

Question 47

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

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

Question 48

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

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

Question 49

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

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

Question 50

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

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

Question 51

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

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

Question 52

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

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

Question 53

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

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

Question 54

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

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

Question 55

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

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

Question 56

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

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

Question 57

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

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

Question 58

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

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

Question 59

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

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

Question 60

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 61

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

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

Question 62

In a short essay, describe the goal of value chain management.

Question 63

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) employees have to have the knowledge and tools they need to do their jobs efficiently
D) value chain management requires a diverse group of highly specialized employees

Question 64

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 external partners
C) extend to management
D) extend to customers

Question 65

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) solidify the commitment of members to the goals of their respective work unit
C) reveal customers' flexibility
D) link functions charged with creating value to customers

Question 66

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

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

Question 67

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

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 accounting, but with the reorganization looming, it was either learn a new skill or be downsized. She was actually looking forward to the training. She felt her background with numbers should prove valuable in operations management, but she admitted that she knew little about 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.
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) ethical chain
B) financial chain
C) supply chain
D) value chain

Question 69

A Lesson in Operations Management (Scenario)
Hana had been asked to attend training in operations management. Her background and training had previously been in accounting, but with the reorganization looming, it was either learn a new skill or be downsized. She was actually looking forward to the training. She felt her background with numbers should prove valuable in operations management, but she admitted that she knew little about 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 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 accounting, but with the reorganization looming, it was either learn a new skill or be downsized. She was actually looking forward to the training. She felt her background with numbers should prove valuable in operations management, but she admitted that she knew little about 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.
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) supply chain management
C) financial chain management
D) ethical chain management

Question 71

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

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

Question 72

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) mutual trust
C) reluctance to share information
D) the belief that when an organization collaborates, it no longer controls its own destiny

Question 73

A Lesson in Operations Management (Scenario)
Hana had been asked to attend training in operations management. Her background and training had previously been in accounting, but with the reorganization looming, it was either learn a new skill or be downsized. She was actually looking forward to the training. She felt her background with numbers should prove valuable in operations management, but she admitted that she knew little about 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.
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 value is being added
B) where there are gaps in the value chain
C) the needed critical skills
D) the organization's core competencies

Question 74

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

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

Question 75

In a short essay, define operations management and briefly discuss the importance of this management process.

Question 76

A Lesson in Operations Management (Scenario)
Hana had been asked to attend training in operations management. Her background and training had previously been in accounting, but with the reorganization looming, it was either learn a new skill or be downsized. She was actually looking forward to the training. She felt her background with numbers should prove valuable in operations management, but she admitted that she knew little about 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) capital
D) motivated employees

Question 77

A Lesson in Operations Management (Scenario)
Hana had been asked to attend training in operations management. Her background and training had previously been in accounting, but with the reorganization looming, it was either learn a new skill or be downsized. She was actually looking forward to the training. She felt her background with numbers should prove valuable in operations management, but she admitted that she knew little about 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) technology
B) goods
C) information
D) materials

Question 78

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

Question 79

A Lesson in Operations Management (Scenario)
Hana had been asked to attend training in operations management. Her background and training had previously been in accounting, but with the reorganization looming, it was either learn a new skill or be downsized. She was actually looking forward to the training. She felt her background with numbers should prove valuable in operations management, but she admitted that she knew little about 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.
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) competition
B) collaboration
C) leadership
D) employees

Question 80

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

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