Deck 18: Global Manufacturing and Supply Chain Management

Question 1

The ability of the production process to make different kinds of products and to adjust the volume of output is known as ________.

A)quality control
B)flexibility
C)dependability
D)innovation

Answer 1

B

Question 2

The need for greater efficiency, which is closely linked to ________, forces MNEs to align their overall strategy with operations.

A)higher costs
B)quality control
C)cost reduction
D)flexibility

Answer 2

C

Question 3

What is a supply chain? How does a supply chain differ from materials management and logistics?

Answer 3

A company's supply chain encompasses the coordination of materials, information, and funds from the initial raw material supplier to the ultimate customer.Logistics (also called materials management)is an important dimension of the supply chain.Logistics is that part of supply chain management that plans, implements, and controls the efficient, effective forward and reverse flow and storage of goods, services, and related information between the point of origin and the point of consumption in order to meet customers' requirements.Materials management is inbound logistics or the movement and management of materials and products from purchasing through production.The difference between supply chain management and logistics is one of degree.Logistics focuses much more on the transportation and storage of materials and final goods, whereas supply chain management extends beyond that to include the management of supplier and customer relations.

Question 4

When GM moved some of its manufacturing operations to Mexico to be closer to the American market, they were doing what's known as ________.

A)nearshoring
B)cost-benefit analysis
C)offshoring
D)coordination

Question 5

In a global supply chain, suppliers must be part of the manufacturer's organizational structure.

Question 6

Logistics is also known as materials management.

Question 7

Gates Manufacturing is striving to improve its performance reliability, speed of delivery, and product reliability.Gates is most likely focusing on a(n)________ strategy.

A)flexibility
B)innovation
C)dependability
D)quality

Question 8

Deciding whether to establish production facilities in many different countries or in one centralized location is part of the ________.

A)cultural matrix
B)Six Sigma process
C)manufacturing configuration
D)innovation matrix

Question 9

Which of the following is NOT one of the three basic configurations that MNEs consider when establishing a global manufacturing strategy?

A)regional manufacturing
B)centralized manufacturing
C)multidomestic manufacturing
D)multicultural manufacturing

Question 10

When a company has improved its operations efficiency so much that it decide to move back to its home country, this is called ________.

A)nearshoring
B)offshoring
C)onshoring
D)outsourcing

Question 11

A multidomestic configuration is most important when ________.

A)demand in individual countries decreases significantly
B)exporting is the company's main strategy
C)demand in individual countries becomes significant
D)low-priced, standardized products are available

Question 12

________ manufacturing is any manufacturing that takes place in a country different from the home country.

A)Offshore
B)Multidomestic
C)Cost-minimization
D)Outsourcing

Question 13

In the context of manufacturing strategy, the degree of consistency between the foreign investment decision and the company's competitive strategy is known as ________.

A)compatibility
B)coordination
C)control
D)configuration

Question 14

Roland Enterprises, an American company, has a manufacturing facility in France in order to serve customers throughout Europe.Roland is most likely using a ________ manufacturing strategy.

A)centralized
B)regional
C)global
D)country-specific

Question 15

Once a firm has determined what its manufacturing configuration will be, and has coordinated its supply chain, it must create a(n)________ system to ensure that the firm's strategies are carried out.

A)multidomestic
B)centralized
C)offshore
D)control

Question 16

Logistics is also known as ________.

A)internal logistics
B)materials management
C)the internal supply chain
D)value-added management

Question 17

Jordan, a manager at an MNE, is responsible for supervising the transportation and storage of materials and final goods.Jordan is most likely a manager involved with ________.

A)quality control
B)offshoring
C)logistics
D)inventory management

Question 18

Which term refers to the network that links together the different aspects of the value chain and coordinates materials, information, and funds from the initial raw-material supplier to the ultimate customer?

A)logistics strategy information system
B)materials management device
C)customer service
D)supply chain

Question 19

Bocce Shoes, an Italian firm, set up a production facility in Vietnam to manufacture the firm's line of athletic shoes.Bocce is most likely using a(n)________ strategy.

A)dependability
B)flexibility
C)innovation
D)efficiency/cost

Question 20

Which of the following BEST describes a major difference between supply chain management and logistics?

A)Supply chain management involves handling suppliers and customers.
B)Logistics involves longer distances and international distribution networks.
C)Supply chain management focuses on transportation and the storage of goods.
D)Logistics only encompasses the outbound flow of products and materials.

Question 21

Strategies to reduce operational costs are linked to efficiency.

Question 22

A current sourcing dilemma that some companies face is whether or not they should ________.

A)use outsourcing as a reward to underperforming employees
B)make critical components for which they have competencies
C)outsource innovative processes
D)measure supplier performance

Question 23

Which of the following should an MNE most likely consider in a make-or-buy decision?

A)organizational hierarchy
B)supplier capabilities
C)employee morale
D)niche markets

Question 24

Rapid Technologies owns its entire supplier network, which means that the firm most likely uses ________.

A)industrial clustering
B)competitive sharing
C)vertical integration
D)global outsourcing

Question 25

________ is the linking or integrating of activities into a unified system.

A)Control
B)Coordination
C)Configuration
D)Compatibility

Question 26

Why are the concepts of dependability and quality important when developing a global manufacturing strategy?

Question 27

The success of a global manufacturing strategy depends on compatibility, configuration, coordination, and control.

Question 28

What are the roles of compatibility, configuration, coordination, and control in a global manufacturing strategy? Describe each of these four factors.

Question 29

Offshore manufacturing is attractive because it offers high labor costs, cheap materials and components, and proximity to markets.

Question 30

Japanese ________ are groups of independent companies that work together to manage the flow of goods and services along an entire value chain.

A)chaebol
B)keiretsus
C)sigmas
D)kaizen

Question 31

Which of the following is one of the biggest barriers to expanding the use of outsourcing?

A)long-term independence from an external organization
B)loss of operational control
C)cultural opportunities in the organization
D)language barriers

Question 32

Which of the following would most likely be reduced by vertical integration?

A)export tariffs
B)component prices
C)product returns
D)transaction costs

Question 33

All of the following tend to be more expensive when sourcing abroad, EXCEPT ________.

A)transportation costs
B)inventory holding costs
C)brokers and agents fees
D)labor rates

Question 34

Configuration is the linking or integrating of activities into a unified system.

Question 35

In deciding whether to make or buy, MNEs should focus on those parts that are ________ to the product and that they are ________ at making.

A)critical; distinctively good
B)incremental; distinctively good
C)critical; marginally good
D)incremental; marginally good

Question 36

________ is the measuring of performance so that companies can respond appropriately to changing conditions.

A)Coordination
B)Configuration
C)Control
D)Compatibility

Question 37

Innovation is the ability of the production process to make different kinds of products and to adjust the volume of output.

Question 38

Alta Designs is considering the idea of global sourcing.What would be the most likely result for Alta Designs?

A)gain access to more domestic markets
B)gain access to more domestic products
C)lower costs and improve quality
D)shorten lengthy supply lines

Question 39

________ is the process of a firm having inputs supplied to it for the production process.

A)Sourcing
B)Subcontracting
C)External production
D)Offshoring

Question 40

ACE Computers established an assembly operation in Malaysia so that it would be close to its key suppliers.ACE is most likely engaging in ________.

A)industrial clustering
B)horizontal sourcing
C)zero sourcing
D)offshoring

Question 41

Which of the following is a sourcing strategy in the global context?

A)use only local purchasing agents
B)establish local purchasing offices
C)purchase only from global suppliers
D)assign domestic buyers for international purchasing

Question 42

A company may use outsourcing as an implied threat to underperforming employees.

Question 43

Amazon relies on the Internet to join together suppliers with companies and companies with customers.Amazon is most likely using ________.

A)value-added networks
B)e-commerce
C)electronic data interchange
D)private technology exchange

Question 44

Vertical integration occurs when the company owns the entire supplier network or at least a significant part of it.

Question 45

The make-or-buy decision applies only to domestic firms.

Question 46

Sourcing in the home country enables a company to avoid numerous problems associated with global sourcing.

Question 47

Which of the following is one of the four phases of purchasing globalization?

A)foreign buying as a part of procurement strategy
B)complete rejection of domestic purchasing
C)foreign buying based on want
D)global purchasing only

Question 48

________ is an online collaboration model that brings manufacturers, distributors, value-added retailers, and customers together to execute trading transactions.

A)Electronic data interchange (EDI)
B)ERP (enterprise resource planning)
C)Private technology exchange (PTX)
D)E-commerce

Question 49

What are the advantages and disadvantages of global and domestic sourcing? What role does quality play in deciding between global and domestic sourcing?

Question 50

Which of the following is most likely a true statement about using the Internet in supply chain management?

A)The Internet is universally accessible.
B)The Internet slows internal processes in a company.
C)The Internet minimizes efficiency gains to a company's suppliers.
D)The Internet prevents a deeper level of collaboration and communication.

Question 51

When firms estimate the costs of outsourcing to low-wage countries, they often overlook problems such as long distances.

Question 52

Onshoring is also knows as reshoring.

Question 53

MedCo uses an IT system that labels a product with an electronic tag to provide real-time information.Which of the following does MedCo most likely use?

A)EDI (electronic data interchange)
B)RFID (radio frequency ID)
C)PTX (private technology exchange)
D)ERP (enterprise resource planning)

Question 54

Keiretsus is one of the two major configurations of sourcing.

Question 55

What is the main information-related challenge in global supply chain management?

A)The Internet is growing too quickly in emerging markets.
B)Few countries are technologically advanced.
C)The industrial equipment and food/agriculture industries use e-commerce more than industries such as defense and motor vehicles.
D)Many emerging market networks cannot be managed through the Internet because of the lack of technology.

Question 56

A company would most likely outsource abroad in order to gain access to more domestic products.

Question 57

Describe total quality management.

Question 58

A comprehensive global sourcing strategy should include inventory management.

Question 59

Giga-Mart has an IT system that links the firm's suppliers, manufacturers, customers, and intermediaries.Giga-Mart most likely has a(n)________,

A)TQM (total quality management)
B)JIT (just-in-time)
C)EDI (electronic data interchange)
D)ERP (enterprise resource planning)

Question 60

What has been the influence of Japan on supply chain management? In your answer, discuss the concepts of industrial clustering and quality.

Question 61

At Fidelity Enterprises, raw materials, parts, and components are acquired from suppliers as they are needed in the manufacturing process so that Fidelity does not have to store large inventories.Which of the following does Fidelity most likely use?

A)just-in-time (JIT)
B)total quality management (TQM)
C)six Sigma
D)acceptable quality level (AQL)

Question 62

Which of the following elements is often overlooked when firms estimate the costs of outsourcing to low-wage countries?

A)language barriers
B)overabundance of skilled and educated workers
C)lack of inventory
D)long distances

Question 63

The Malcolm Baldrige National Quality Award is an example of a general standard that is presented annually to companies that demonstrate quality strategies and achievements.

Question 64

What are the three levels of quality standards?

A)general, industry-specific, and company
B)general, international, and domestic
C)employee, company, and customer
D)company, international, and industry-specific

Question 65

Electronic data interchange (EDI)is an online collaboration model that brings manufacturers, distributors, value-added retailers, and customers together to execute trading transactions.

Question 66

How has technology altered supply chain management? Discuss some of the available tools.

Question 67

Before the strong emphasis on zero defects, U.S.companies operated under the premise of ________, which allowed a level of poor quality with the assumption that service warranties and repair facilities would deal with product defects.

A)Six Sigma
B)acceptable quality level
C)just-in-time inventory management (JIT)
D)ISO 9000

Question 68

Most U.S.companies have moved from a total quality management (TQM)approach to an acceptable quality level (AQL)approach.

Question 69

EDI is software that can link information flows from different parts of a business and from different geographic areas.

Question 70

Six Sigma is a highly focused system of quality control that scrutinizes a company's entire production system.

Question 71

Gibson Enterprises is an MNE that relies on just-in-time inventory management and lean manufacturing systems to optimize quality and efficiency.For the last few years, Gibson has used the same foreign sources for its raw materials.What is the most likely risk faced by Gibson because of foreign sourcing?

A)quality of incoming inventory
B)uncertainty of arriving parts
C)few available suppliers
D)high inventory costs

Question 72

________ is an idea perfected by Japanese manufacturers to ensure quality in products.

A)Lean manufacturing
B)Total quality management
C)Zero defects
D)Kaizen

Question 73

Independent suppliers can connect to a company's intranet to help automate and organize delivery of components to that company.

Question 74

Quality is defined as ________.

A)meeting or exceeding the expectations of the customer
B)meeting the everyday low price expected by the customer
C)meeting international quality standards, such as ISO 9000
D)meeting internal quality standards

Question 75

The three levels of quality standards are general, international, and industry-specific.

Question 76

A kanban system is best described as a system that ________.

A)uses special locations for storing imported inventory to avoid paying duties
B)seeks to improve quality by setting a rigorous goal of zero defects
C)electronically links together suppliers, customers, and intermediaries
D)facilitates JIT by using cards to control the flow of production through a factory

Question 77

An element of total quality management (TQM)that focuses on continuous improvement by identifying problems and enlisting employees to help eliminate them is known as ________.

A)kaizen
B)Six Sigma
C)kanban
D)acceptable quality level (AQL)

Question 78

Fortis Manufacturing Systems uses a highly focused system of quality control that takes a statistical approach and scrutinizes the firm's entire production system.Fortis most likely uses ________.

A)total quality management
B)acceptable quality levels
C)just-in-time processes
D)Six Sigma processes

Question 79

Which of the following is a set of universal standards for a globally accepted quality assurance system?

A)just-in-time (JIT)inventory management
B)Six Sigma
C)total quality management (TQM)
D)ISO 9000

Question 80

The Japanese approach to quality is total quality management (TQM), which stresses which of the following principles?

A)employee involvement, commitment to international standards, and customer satisfaction
B)customer satisfaction, continuous improvements, and warranties
C)customer satisfaction, employee involvement, and continuous improvements
D)employee involvement, continuous improvements, and commitment to international quality standards