Deck 12: Planning Startup Operations

Question 1

Today, product/service warranties are not a competitive marketing tool.

Answer 1

False

Question 2

Which of the following is NOT part of operations management?

A) Purchasing
B) Hiring and firing
C) Logistics
D) Distribution
E) New product development

Answer 2

B

Question 3

ISO 9001 is an internationally recognized set of quality standards with a certification process.

Answer 3

True

Question 4

Identifying all the tasks in the production process makes it easier to determine what equipment and supplies are needed for completing the tasks.

Question 5

The goal in _____ is to provide the exact service the customer wants at minimal cost.

A) logistics
B) supply chain management (SCM)
C) quality control
D) human resource management
E) purchasing

Question 6

Product- or project-focused organizations generally are highly _____ so that they can respond better to market demands.

A) consolidated
B) decentralized
C) centralized
D) capital-intensive
E) labor-intensive

Question 7

Any business that purchases raw materials or parts for production of goods for resale must carefully consider the quality, quantity, and _____ of those purchases.

A) logistics
B) timing
C) outsourcing
D) distribution
E) All of these are correct.

Question 8

All products are appropriate for offshore manufacturing.

Question 9

In the context of outsourcing to reduce costs, which of the following is a lesson that should be learned while outsourcing operations overseas?

A) Communicating by email and fax is enough.
B) Only problematic projects should be outsourced.
C) The regulatory requirements of an industry should be understood.
D) Problems in the beginning that slow the process should not occur and are a sign that outsourcing is a mistake.
E) All of these are correct.

Question 10

To guard against the contingency of a business's sole vendor suffering a catastrophe, it is wise for a startup to use one supplier for about _____ to _____ percent of its needs and one or more additional suppliers for the rest and also as backups in case the principal supplier fails.

A) 40;  50
B) 50; 60
C) 60; 70
D) 70; 80
E) 25; 35

Question 11

In the context of supply chain management (SCM), inventory is defined as the stocks of items used to support production, associated activities, and

A) marketing.
B) customer service.
C) quality control.
D) packaging.
E) outsourcing.

Question 12

Not all businesses are affected by logistics.

Question 13

In general, manufacturing and production firms are organized as _____ or _____ organizations.

A) product-focused; service-focused
B) input-focused; output-focused
C) product-focused; process-focused
D) product-focused; project-focused
E) insourcing-focused; outsourcing-focused

Question 14

In general, manufacturing and production firms are organized as product- or process-focused organizations.

Question 15

The _____ process consists of a series of inputs, such as raw materials, labor, and machinery, which are then transformed through a series of processes into new products and services.

A) distribution
B) production
C) inventory management
D) quality control
E) outsourcing

Question 16

Product-focused organizations normally are highly decentralized or distributed so that they can respond better to market demands.

Question 17

The primary reason to outsource manufacturing is to improve quality.

Question 18

_____ is managing the flow of material and information from raw materials to finished goods.

A) Logistics
B) Supply chain management (SCM)
C) Outsourcing
D) Production
E) Inventory management

Question 19

Good supply chain management (SCM) enables a company to forecast demand, match supply with that demand, and fulfill that demand through optimal distribution channels.

Question 20

When it comes to operations, startups are simply smaller versions of large companies.

Question 21

_____ is a data-driven approach to eliminating defects with a goal of 3.4 defects per million.

A) Failure mode and effects analysis
B) Benchmarking
C) Total quality improvement
D) Six Sigma
E) ISO 9001

Question 22

Which of the following is NOT an input in the production process?

A) Assembly
B) Raw materials
C) Machinery
D) Facility
E) Labor

Question 23

_____ is a strategic issue that is designed to bring about business profitability and positive cash flow.

A) Manufacturing
B) Warranting products
C) Quality
D) Logistics
E) Inventory management

Question 24

_____ is used to demonstrate that a company stands behind what it produces and the work that it does.

A) The  ISO 9001 standard
B) A w arranty
C) Six Sigma
D) The  original equipment manufacturers (OEM) certification
E) None of these are correct.

Question 25

Outsourced staff typically have a

A) high turnover rate.
B) low educational attainment.
C) high level of job satisfaction.
D) high level of income.
E) low degree of control over their work.

Question 26

_____ is the management and control of the flow of goods and resources from the source of production to the marketplace.

A) Quality control
B) Logistics
C) Outsourcing
D) Manufacturing
E) Offshoring

Question 27

The real success or failure of a quality control effort is dependent on the _____ in the process.

A) logistics
B) benchmarking
C) technology element
D) manufacturing equipment
E) human element

Question 28

The benefits of _____ are reduced lead times, improved costs, quality, and timing in addition to giving employees more involvement in the production of the entire product rather than in simply one component of a product.

A) outsourcing
B) insourcing
C) cell manufacturing
D) supply chain management (SCM)
E) quality management programs

Question 29

In some industries, particularly labor-intensive ones, the only way to achieve competitive costs is to manufacture in a country where

A) human resources are low.
B) labor costs are low.
C) labor costs are high.
D) the  demand for laborers is high.
E) organizations are highly centralized.

Question 30

Entrepreneurs who subscribe to _____ will probably wish to provide warranties with products and services.

A) good supply chain management (SCM)
B) benchmarking
C) total quality management
D) Six Sigma
E) ISO 9001

Question 31

Operations should be outsourced when all efforts to boost _____ and _____ at home have been exhausted.

A) efficiency; innovation
B) sales; marketing
C) quality; efficiency
D) input; output
E) A ll of these are correct.

Question 32

Which of the following is NOT a question that an entrepreneur should ask him- or herself if he or she is thinking about outsourcing operations?

A) Do I have the time and willingness to do this?
B) Do I have connections overseas?
C) What level of service am I expecting?
D) Is everyone on board with the plan?
E) Have I done due diligence on potential partners?

Question 33

Building a complex production system while the company is in startup or even later when it is rapidly growing is

A) a recipe for disaster.
B) highly recommended.
C) recommended only for "born-global" companies.
D) likely to be most effective in declining markets.
E) the best way to improve quality.

Question 34

_____ can be thought of as a river with upstream and downstream business activities that move a product through design, product development, sourcing, producing, and delivering to the final customer.

A) Operations management
B) A value chain
C) A supply chain
D) Cell manufacturing
E) The production process

Question 35

_____ organizations are common among manufacturers with capital-intensive processes and among service companies.

A) Service-focused
B) Project-focused
C) Product-focused
D) Process-focused
E) Strategy-focused

Question 36

_____ is the process of reconciling product or project output with the standard set for that product or project.

A) Warranting
B) Operations management
C) Quality control
D) L ogistics
E) S upply chain management (SCM)

Question 37

Today, manufacturers tend to produce one unit at a time serially in _____ manufacturing cells.

A) flexible
B) process
C) project
D) efficient
E) integrated

Question 38

Which of the following is an advantage of using an inventory management company? One advantage of using an inventory management company is: One advantage of using an inventory management company is:

A) They oversee storage.
B) They track inventory numbers.
C) They fill and ship orders.
D) They allow inspection and control of inventory from any computer with Internet access.
E) All of these are correct.

Question 39

If some of the components of an entrepreneur's product come from other manufacturers who have their own warranties, it is important to have use of that component on the product certified by _____ so that the warranty isn't inadvertently invalidated.

A) a quality control inspector
B) an operations manager
C) the original equipment manufacturers (OEMs)
D) the vendors who the entrepreneur purchases the components from
E) a supply chain manager

Question 40

The length of a warranty depends on _____, whereas the components of the product or service depend on _____.

A) the situation; industry standards
B) local laws; industry standards
C) local laws; the function of the product or service
D) industry standards; the situation
E) None of these are correct.

Question 41

Discuss the advantages of using a single vendor.

Question 42

Briefly discuss the production process.

Question 43

Briefly discuss cell manufacturing.

Question 44

What are some questions that need to be answered when considering warranting a product?

Question 45

What questions should an entrepreneur ask when considering a specific vendor as a source?

Question 46

What is a supply chain and supply chain management (SCM)? Why is it important to have good SCM?

Question 47

What are the advantages of using inventory management companies for entrepreneurs?

Question 48

Define operations management.

Question 49

Why is it important to build a production system prior to launch rather than during the startup phase?

Question 50

Briefly discuss quality.