Deck 22: Implementing Value Network Management

Question 1

Which of the following is not true of "your" position at Megatronics as the hypothetical new hire as the Vice-president of Supply Management?

A) Base salary $115,000 per year
B) You have the obligation to reduce the cost of purchased goods and services by an average of 5% per year
C) You have the obligation to reduce incoming material defects from a current average of 1,000 ppm to 50 ppm over the next 5 years
D) You have the obligation to improve cutting-edge technology inflow by 10% per year
E) You have the obligation to reduce the average product development cycle by 20% per year

Answer 1

A

Question 2

Which of the following was not a conclusion about transformational training as presented in Chapter 22?

A) During boom times, firms don't have time for training
B) During bad times, firms should be getting ready for the next upside of the cycle
C) During bad times firms often claim that they can't afford training
D) Without training, employees will leave their companies
E) Training should be a vehicle of transformation

Answer 2

D

Question 3

A conclusion of the authors of the textbook is that "world class supply managers have the essential skill set to become Chief Executive Officers!"

Answer 3

True

Question 4

A conclusion of the authors of the textbook is that "world class supply managers will never have the essential skill set to become Chief Executive Officers!"

Question 5

Implementing Value Network Management is as much about leadership and management as it is about supply management concepts and practices.

Question 6

Megatronic's Vision Statement given in Chapter 22 is "Supply management at Megatronics will perfect its worldwide process resulting in totally delighted customers and shareholders."

Question 7

A problem that the new supply management team faced at Megatronics was the fact the price often rises when the focus is shifted onto TCO.The solution presented by the team was as follows,"If we pay a price premium that is offset with a reduction in the total cost of ownership,we will document our analysis."

Question 8

The overall goals for year 1 at Megatronics were to reduce the average price on incoming goods and services by 5 percent and reduce the average incoming defects by 10 percent to 900 ppm.

Question 9

Value Network Management calls for creating a new vision where leadership capabilities and capacities are enabled and unleashed.

Question 10

According to Megatronics,the inflow of technology is a function of the supplier's investment in advancing its technological capabilities and the supplier's willingness to share its innovations.

Question 11

Which of the following is not true of "your" position at Megatronics as the hypothetical new hire as the Vice-president of Supply Management?

A) Base salary $450,000 per year
B) You may hire a maximum of 50 new supply management professionals
C) You obtained authorization for a training budget of $3.25 million per year
D) You will become a member of the executive committee
E) You have the obligation to reduce the cost of purchased goods and services by an average of 25% per year

Question 12

The strategic intent of Megatronics is to create a global supply chain that will be unequaled in performance and one of Megatronics' greatest competitive advantages.

Question 13

Which of the following is not one of the characteristics of successful leaders given in Chapter 22?

A) Maintains focus in facing adversity
B) Listens passively
C) Communicates clearly and convincingly
D) Knows how and when to disarm conflicts
E) Functions as an empathetic mentor

Question 14

Megatronic's Vision Statement given in Chapter 22 is "Supply management at Megatronics will focus on getting the lowest prices for procured goods and services."

Question 15

Implementing Value Network Management has little to do with leadership.Instead it is all about supply management concepts and practices.

Question 16

According to Megatronics,the inflow of technology is not related to the supplier's investment in advancing its technological capabilities and the supplier's willingness to share its innovations.

Question 17

According to the presentation in Chapter 22,Value Network Management requires thinking within the constraints (or box)of traditional boundaries.For example,a traditional constraint might be to "not share information with suppliers that is not related directly to the transactional acquisition of the materials."

Question 18

The overall goals for year 1 at Megatronics were to reduce the average price on incoming goods and services by 50 percent.

Question 19

Which of the following is not one of the characteristics of successful leaders given in Chapter 22?

A) Helps to establish a vision
B) Uses power over employees to force results
C) Helps employees cope with change
D) Motivates and facilitates adaptive work
E) Energizes people

Question 20

The new supply management team at Megatronics understood the fact that the costs savings of a TCO approach are easily measurable and instantly known.

Question 21

Which of the following statements is not representative of Megatronics strategic planning?

A) The supply strategy is independent of the strategies of other functional areas in the firm
B) Supply management must develop and manage the firm's supply strategy as an integrated whole instead of a series of unrelated strategies
C) The corporation's strategy is the key driver of the supply strategy
D) The technology, marketing, finance, and production strategies are all inputs to the supply strategy
E) The supply strategy is an input to the corporation's strategies for technology, marketing, finance and production

Question 22

Which of the following was not one of the initiatives at Megatronics related to either standardization or value engineering/value analysis (VE/VA)?

A) Create a Measurement and Standards Group
B) Develop and implement a standardization program
C) Hire an outside consultant firm to benchmark
D) Provide training in VE/VA
E) Hire one or more value engineers for each division

Question 23

The leadership lessons from the late Gene Richter include:

A) Have a participative management style
B) Get to really know your people
C) Be a good listener
D) Be consistent
E) All of the above

Question 24

The first leadership principle advocated by ex Chrysler CEO,Tom Stallkamp is to:

A) Coach, don't command
B) Encourage debate
C) Focus on the macro
D) Challenge conventional thinking
E) Be informed

Question 25

Which of the following is not one of the 12 Golden Rules of Value Network Management?

A) Reduce the prices suppliers charge through coercion
B) Train and educate supply personnel in world-class processes, leadership, and change management.
C) Work in a cross-functional mode with internal functions and with key suppliers.
D) Recognize and reward excellence, both internally and externally.
E) Study and understand supply management's business environment.

Question 26

Which of the following is not taken from the mission statement for Megatronic's supply chain management function?

A) We will design and implement necessary process and cultural changes to create a fully integrated customer driven supply management system
B) We will integrate suppliers into our business plans and processes in an environment of respect and trust, establish full cooperation throughout the enterprise, and establish supply management as a core competency
C) We will improve the bottom line by facilitating increased profitable sales while minimizing the total cost of ownership of all materials, equipment, supplies, and services
D) We will ensure that diversity suppliers have opportunities to play vital roles in our supply base
E) We will prioritize our suppliers based on their ability to lower prices

Question 27

Which of the following is not one of the 12 Golden Rules of Value Network Managment?

A) Do not engage in reengineering
B) Involve supply management and external suppliers in the earliest stages of new product development.
C) Develop and manage appropriate supply alliances.
D) Identify, verify, track, and control savings.
E) Foster an environment of collaboration.

Question 28

The Progression to VNM should include all of the following activities and approaches except one.Which one should not be included?

A) Manage risk
B) Emphasis: total cost relationships
C) Relationships: transactional, collaborative and alliance
D) Bottom line impact: increase shareholder value
E) Reporting: under the Vice-President of Operations

Question 29

The Progression to VNM should include all of the following activities and approaches except one.Which one should not be included?

A) Supply management a core competence
B) Strategic sourcing
C) Monitor supply environment
D) Develop and implement commodity strategies
E) Largest supply base possible

Question 30

Which of the following is not a Megatronics initiative for Year 1?

A) Initiate supplier development program
B) Implement a total cost of ownership program
C) Develop and implement a training program
D) Enter into as many supply alliances as possible
E) Initiate a supplier certification program

Question 31

Which of the following is not one of the four categories of supplier that Megatronics developed?

A) World Class
B) Suppliers who are acceptable and have the potential to be developed to world class status
C) Suppliers who are acceptable and provide products and services where a supply alliance is not needed
D) Suppliers to acquire through takeover
E) Suppliers to drop

Question 32

Megatronic's criteria for rating suppliers include all of the following points except one point.Which point was not included?

A) Price minimization
B) Willingness to share cost data
C) Incoming quality levels
D) Current technology status: leader/follower
E) Potential to become an alliance supplier

Question 33

Which of the following initiatives is not one of the proactive supply management initiatives proposed by the new supply management team at Megatronics?

A) Ensure understanding of requirements before and after award of a contract
B) Transfer responsibility for ensuring quality to the supplier
C) Become ISO 9000:2000 certified
D) Investigate certifying our major suppliers.
E) Work with suppliers to correct root causes of problems

Question 34

The Progression to VNM should include all of the following activities and approaches except one.Which one should not be included?

A) Vertically integrate by buying suppliers
B) Reporting: member, executive group
C) Data: facilitates strategic planning
D) Understand key supply industries
E) E-Commerce II

Question 35

Which of the following is not one of the 12 Golden Rules of Value Network Management?

A) Operate supply management as an integrated system including customers, operations, quality, demand management, supply management, logistics, and suppliers.
B) Implement continuous improvement in all activities internally and externally
C) Make all supplier relationships alliances
D) Focus on the total cost of ownership, not purchase price.
E) Train and educate supply personnel in world-class processes, leadership, and change management.

Question 36

Which of the following initiatives is not one of the proactive supply management initiatives proposed by the new supply management team at Megatronics?

A) Six Sigma program
B) Total Quality Management
C) Utilize early supplier involvement (ESI)
D) Early supply management involvement
E) Improve source selection process

Question 37

Which of the following is not a Megatronics initiative for Year 1?

A) Train alliance champions
B) Invest in an Enterprise Resource Planning (ERP) system
C) Include supply engineers on appropriate new development teams
D) Initiate reverse auctions where appropriate
E) Design, develop, and implement aggressive social responsibilities program

Question 38

The Progression to VNM should include all of the following activities and approaches except one.Which one should not be included?

A) Develop and manage alliances and networks
B) Price based competition
C) Virtually defect free materials and services
D) Leverage supplier technology
E) Integrated supply strategy