Deck 2: Operations and Supply Chain Strategies

Question 1

No one could turn around a failing restaurant as expertly as Gordon, whose experience and cadre of trained professionals was available at a moment's notice should his services be needed. This ability, some might call it a gift, was developed to such a level that other restaurant consultants were unable to match his results. This ability is best described as his:

A)business strategy.
B)core competency.
C)mission statement.
D)operations and supply chain strategy.

Answer 1

core competency.

Question 2

The firm's targeted customers, time frames, and performance objectives are identified by their:

A)mission statement.
B)core competencies.
C)business strategy.
D)functional strategy.

Answer 2

business strategy.

Question 3

A firm's ________ explains why an organization exists.

Answer 3

mission statement

Question 4

Which of the following statements about functional strategies is best?

A)Functional strategies determine the mission statement.
B)Functional strategies determine the overall business strategy.
C)Many functional level strategies could readily be described as cross-functional.
D)A firm's operations and supply chain strategy is more important than their marketing, finance and engineering strategies.

Question 5

________ are the people, policies, and organizational structure choices made by a firm.

Question 6

A business is defined by its structural and infrastructural elements.

Question 7

A business's core competencies can shift over time.

Question 8

Define and describe the differences between structural and infrastructural elements of a business.

Question 9

A mechanism that identifies a firm's targeted customers and sets time frames and performance objectives for the business is called a mission statement.

Question 10

Tangible resources are infrastructural elements in an organization.

Question 11

As long as each functional area in a company operates efficiently, their strategies can be very different.

Question 12

________ are tangible resources such as buildings, equipment, and computer systems.

Question 13

Policies and decision rules are infrastructural elements.

Question 14

The mission statement addresses a company's reason for existence, core values, and domain.

Question 15

A(n)________ is an example of an infrastructural element.

A)building
B)organizational structure
C)office equipment
D)fleet of delivery trucks

Question 16

Core competencies can be described as:

A)a declaration of mission that is focused on specific skills.
B)organizational strengths and abilities that have been developed over time.
C)only those processes that create products or provide services.
D)elements of the supply chain that create value.

Question 17

Structural elements of a business include:

A)policies.
B)people.
C)decision rules.
D)computer systems.

Question 18

Organizational strengths or abilities, developed over a long period of time that customers find valuable and competitors find difficult or impossible to copy are ________.

Question 19

The success of a strategy depends on doing many things well and:

A)adjusting the company mission to match what you excel at.
B)performing at a high level.
C)doing them better than your competitors.
D)integrating among them.

Question 20

In general, core competencies drive functional strategies.

Question 21

Which of the following is NOT a generic performance dimension of operations and supply chain activities?

A)quality
B)time
C)flexibility
D)social responsibility

Question 22

When you translate an overall business strategy into a level of detail suitable for the marketing area, you create a(n)________.

Question 23

Whether the product was made or service performed to specifications is a question of:

A)conformance quality.
B)performance quality.
C)reliability quality.
D)value indices.

Question 24

Which of these is a major operations and supply chain structural decision category?

A)organization
B)planning and control
C)capacity
D)product and service development

Question 25

Which type of flexibility would be the most difficult to achieve for a two-chair barbershop?

A)mix flexibility
B)changeover flexibility
C)volume flexibility
D)run flexibility

Question 26

Offer a definition of the term core competency and explain the core competency of your university.

Question 27

We have all experienced the endless wait for repair technicians to show up at our house. If the cable company would provide an estimate of "Your installer will arrive at your house between 2 pm and 3 pm on Wednesday," instead of "Your installer will arrive at your house between 8 am and 5 pm on Wednesday," we would be impressed with their service and their:

A)performance quality.
B)delivery speed.
C)delivery reliability.
D)delivery window.

Question 28

A ________ is an organizational strength that customers value and competitors have great difficulty duplicating.

Question 29

Which of these is a major operations and supply chain infrastructural decision category?

A)organization
B)facilities
C)capacity
D)technology

Question 30

What is the core competency of Amazon? Defend your choice. Has Amazon's core competency changed since its founding in the early 1990's?

Question 31

Electra wants to purchase a laptop for use in her MBA program so she can work on assignments and surf the web while the professor drones on endlessly. After consulting with her colleagues, she chooses the dimensions of cost, weight, processor speed, and touchscreen capability as critical to her long term success and amusement. She evaluates four different laptops and rates their performance on each criterion on a scale from 1 (poor)to 5 (excellent). Which laptop should Electra purchase? $$\begin{array} { | c | c | c | c | c | c | } \hline \text { Dimension } & \text { Importance } & \text { Sir Face } & \text { Toybook Air } & \text { Knockoff } & \text { High Priced } \\\hline \text { Weight } & 3 & 4 & 4 & 3 & 5 \\\hline \text { Speed } & 5 & 4 & 4 & 4 & 3 \\\hline \text { Cost } & 2 & 2 & 2 & 5 & 1 \\\hline \text { Touchscreen } & 1 & 5 & 2 & 3 & 3 \\\hline\end{array}$$

A)Sir Face
B)Toybook Air
C)Knockoff
D)High Priced

Question 32

Damron Inc. wants to purchase a shear for their sheet metal shop and chooses dimensions of cost, reliability, and flexibility as critical to their long term success. They evaluate four different shears and rate their performance on each criterion on a scale from 1 (poor)to 5 (excellent). Which shear should be purchased? $\begin{array} { | l | c | c | c | c | c | } \hline \text { Dimension } & \text { Importance } & \text { Belsky Mfg. } & \text { Reber Ind. } & \text { Estelle LLC } & \text { Floyd Co. } \\\hline \text { Cost } & 4 & 4 & 4 & 3 & 3 \\\hline \text { Reliability } & 2 & 3 & 2 & 3 & 1 \\\hline \text { Flexibility } & 3 & 2 & 3 & 3 & 4 \\\hline\end{array}$

A)Belsky
B)Reber
C)Estelle
D)Floyd

Question 33

Which of these statements about time performance is best?

A)A supplier with high delivery speed must have high delivery reliability.
B)A customer with a narrow delivery window should have a supplier with high delivery reliability.
C)A supplier with low delivery reliability must have low delivery speed.
D)A customer with a wide delivery window should have a supplier with low delivery reliability.

Question 34

The ability to produce a wide range of products or services is:

A)mix flexibility.
B)changeover flexibility.
C)volume flexibility.
D)run flexibility.

Question 35

Electra wants to purchase a laptop for use in her MBA program so she can work on assignments and surf the web while the professor drones on endlessly. After consulting with her colleagues, she chooses the dimensions of cost, weight, processor speed, and touchscreen capability as critical to her long term success and amusement. She evaluates four different laptops and rates their performance on each criterion on a scale from 1 (poor)to 5 (excellent). She is struggling with her assessment of the importance of the Cost criterion. As an avid lottery player, she is pretty sure that tonight's drawing will mean at least two numbers match on the ticket she bought on the way to class and it could possibly mean a three-number match. Given her uncertainty, she would like to choose the laptop that performs the best overall across the entire spectrum of possibilities of the outcome of tonight's lottery. Which would you recommend? $$\begin{array} { | l | c | c | c | c | c | } \hline { \text { Dimension } } & \text { Importance } & \text { Sir Face } & \text { Toybook Air } & \text { Knockoff } & \text { High Priced } \\\hline \text { Weight } & 3 & 4 & 4 & 3 & 5 \\\hline \text { Speed } & 5 & 4 & 4 & 4 & 3 \\\hline \text { Cost } & ? ? & 2 & 4 & 5 & 1 \\\hline \text { Touchscreen } & 1 & 5 & 2 & 3 & 3 \\\hline\end{array}$$

A)High Priced
B)Knockoff
C)Toybook Air
D)Sir Face

Question 36

Mutt's Amazing Dogs offers a hot dog with mustard and a hot dog with relish and mustard. The difference between the two (the relish)is achieved by flipping a single lever, which changes the dispenser from mustard, to a perfectly proportioned mix of relish and mustard. This lever responds instantly to the feathery touch of Mutt, who provides his customers a high level of:

A)mix flexibility.
B)volume flexibility.
C)delivery flexibility.
D)changeover flexibility.

Question 37

Define mission statement and business strategy and describe the relationship between the two.

Question 38

Which of these is NOT one of the primary objectives of an operations and supply chain strategy?

A)To help management choose the right mix of structural and infrastructural elements, based on a clear understanding of the performance dimensions valued by customers and the trade-offs involved.
B)To ensure that the firm's structural and infrastructural choices are strategically aligned with the firm's business strategy.
C)To support the development of core competencies in the firm's operations and supply chains.
D)To align structural and infrastructural elements to convert order winners into order qualifiers as determined by the mission statement.

Question 39

Damron Inc. wants to purchase a shear for their sheet metal shop and chooses dimensions of cost, reliability, and flexibility as critical to their long term success. They evaluate three different shears and rate their performance on each criterion on a scale from 1 (poor)to 5 (excellent). What is the value index for the shear made by Belsky Manufacturing? $$\begin{array} { | l | c | c | c | c | } \hline \text { Dimension } & \text { Importance } & \text { Belsky Mfg. } & \text { Reber Ind. } & \text { Floyd Co. } \\\hline \text { Cost } & 4 & 1 & 5 & 3 \\\hline \text { Reliability } & 2 & 5 & 2 & 1 \\\hline \text { Flexibility } & 3 & 3 & 3 & 4 \\\hline\end{array}$$

A)9
B)18
C)23
D)81

Question 40

Lieutenant Columbo donned his raincoat and hopped into his 1959 Peugeot, hot on the trail of another condescending millionaire murder suspect. The Peugeot always drew stares, not because it was a rare automobile, but because it was an eyesore. It had one redeeming quality; every time he sat behind the wheel and turned the key in the ignition, it would start. Thus, the car scored well on the:

A)mix flexibility scale.
B)changeover flexibility scale.
C)reliability quality scale.
D)delivery reliability scale.

Question 41

Darrell and Dave were fierce competitors, which drove both of them to overpay for many of their inputs, resulting in increased prices at their own stores. Dave realized this, and pondered how he could be recognized as a cost leader by his customers and maintain his reputation for quality merchandise. Sacrificing one element of his strategy at the expense of another is recognized as a trade-off in operations management.

Question 42

Changeover flexibility refers to the ability of a company to change production quickly from one product to another with a minimal downtime in production.

Question 43

The latex division of Vandelay Industries provided support after the sale that could not be matched by any of the other players in the latex industry. This unique attribute was responsible for perhaps 60% of their sales volume and could be described as:

A)a trade-off.
B)a core competency.
C)an order winner.
D)externally neutral.

Question 44

Four engineering firms completed the request for proposal to develop something called the Arpanet, but the firm of Bolt Beranek and Newman demonstrated a camaraderie and tighter team concept that proved to be the ________ that resulted in their selection to develop a four node network that became the Internet.

A)order winners
B)minimum performers
C)recommended daily allowances
D)order qualifiers

Question 45

Your employer prepares a request for proposal that describes in vivid detail all of the capabilities that a new computer system should possess. A software product that can meet this request for proposal has performance characteristics that can be described as order qualifiers.

Question 46

Performance dimensions on which customers expect a minimum level of performance are called:

A)order winners.
B)minimum performers.
C)recommended daily allowances.
D)order qualifiers.

Question 47

Before firms can progress to the fourth stage of alignment, they must not only support business strategies but also:

A)exploit core competencies.
B)develop a new mission statement.
C)develop order winners.
D)abandon order qualifiers.

Question 48

Department chair Robert knew that his Entrepreneurship major was destined to be successful. Yes, he had sacrificed many of the features like qualified faculty and captivating guest speakers for lower course fees that made this the least expensive program in the entire college, which was a popular notion in today's tough economic times. Once enrollment blossomed, he would feel:

A)his trade-off was validated.
B)his core competency was mix flexibility.
C)his order winner was now a qualifier.
D)the need for an updated mission statement.

Question 49

In the internally supportive stage of business strategy alignment, management merely attempts to minimize negative potential in the operations and supply chain area.

Question 50

If a logistics firm consistently makes deliveries within the agreed-upon delivery window, they are exhibiting delivery reliability.

Question 51

Conformance quality addresses whether the product was made or the service performed to specifications.

Question 52

The phrase "closing the loop" means that strengths and weaknesses, as well as core competencies are fed back into the mission statement.

Question 53

Volume flexibility is the term used to describe the ability of a producer to produce a dazzling (wide)array of products or services.

Question 54

An operations and supply chain strategy is a functional strategy that is, by definition, an infrastructural strategy.

Question 55

Closing the loop in the area of business strategy means that:

A)core competencies at the functional level feed back into the business strategy.
B)the mission statement is used to develop the business strategy.
C)the business strategy is translated into operations and supply chain actions.
D)other functional strategies, such as those of the marketing and finance functions are aligned with the operations and supply chain strategy.

Question 56

When the operations and supply chain areas are not linked with the overall business strategy, but instead follow industry practices, the firm is in this stage of alignment.

A)internally neutral
B)externally neutral
C)internally supportive
D)externally supportive

Question 57

A logical tradeoff is sacrificing an order winner capability in favor of an order qualifier capability.

Question 58

You decide to open a bookstore with a wide selection, comfortable seating, and an internal coffee shop because it has worked very well for other bookstores you have visited. Your strategy could be described as externally neutral.

Question 59

Which of these strategic moves represents a trade-off?

A)Art Vandelay decides to quit exporting and focus just on importing.
B)Wealthy industrialist H.E. Pennypacker decides to open a silver mine rather than an iron mine.
C)J Peterman opts for delivery speed in lieu of product mix variety in his fall catalog.
D)Kenny Bania believes that they should change the name from Ovaltine to Roundtine.

Question 60

"I've never seen flavored marshmallows this size before!" Alice squealed as she emptied the shelves at the local grocery store. The rest of the shoppers would have to make do with the other seventy bags of miniature and standard-size marshmallows during this winter's hot chocolate festival. For Alice, the jumbo size feature is an order winner.

Question 61

The American-made car I purchased as a starving graduate student was not the sleek, high-performance machine that full professors park in faculty parking, but it performed admirably. For the next twenty years I could count on one thing; every morning it would start when I turned the key. This vehicle had outstanding ________ quality.

Question 62

The externally supportive stage of alignment is more desirable than the externally neutral stage of alignment.

Question 63

Decisions about planning and control, sourcing, and quality management fall in the ________ decision category.

Question 64

At the ________ stage of alignment, the business strategy seeks to exploit core competencies found within the operations and supply areas.

Question 65

What are the three primary objectives of an operations and supply chain strategy?

Question 66

The ability to produce a wide range of products or services is referred to as ________.

Question 67

Modelo, S.A., is considering three providers of automated visual inspection systems for their packaging needs. A team of manufacturing engineers, production managers, and process engineers has developed the following list of criteria and assigned them ratings on a scale of 1 (completely unimportant)to 5 (critical). This team has also rated the candidate products on each of these dimensions using a scale of 1 (poor)to 5 (excellent). Which provider should they choose and what caveats, if any, should go with their recommendation?

Question 68

Describe the four generic performance dimensions of operations and supply chain activities.

Question 69

One way to quantify the overall value of an item or service to a customer is by using a(n)________.

Question 70

Which category of decision categories in operations and supply chain management requires the greatest financial investment? Justify your answer.

Question 71

Between order qualifiers and order winners, superior performance on a(n)________ will not, by itself, give a company a competitive advantage.

Question 72

Discuss the different types of flexibility that a producer can exhibit. Use any company mentioned in the chapter and provide an example of each.

Question 73

Before firms can think about progressing to the fourth stage of alignment (________), they must develop ________ within the operations and supply chain areas.

Question 74

Electra wants to purchase a laptop for use in her MBA program so she can work on assignments and surf the web while the professor drones on endlessly. After consulting with her colleagues, she chooses the dimensions of cost, weight, processor speed, and touchscreen capability as critical to her long term success and amusement. She evaluates four different laptops and rates their performance on each criterion on a scale from 1 (poor)to 5 (excellent). She is struggling with her assessment of the importance of the Cost criterion. As an avid lottery player, she is pretty sure that tonight's drawing will result in at least a two number match on the ticket she bought on the way to class and it could mean a three-number match. Given her uncertainty, she would like to choose the laptop that performs the best overall across the entire spectrum of possibilities of the outcome of tonight's lottery. Which would you recommend?

Question 75

A major retailer wants to sell items as cheaply as possible while maintaining an attractive and enjoyable shopping atmosphere. Spending too much on ambience will raise prices and drive away shoppers but spending too little will drive shoppers away also. Clearly, the retailer is faced with a(n)________ between cost and aesthetic quality.

Question 76

What are three structural and three infrastructural decision categories in operations and supply chain management? Pick one from each category and provide an example of a choice that an operations and supply chain manager might make.

Question 77

Decisions about capacity, facilities and technology fall in the ________ decision category?

Question 78

What are the differences between performance, conformance, and reliability dimensions of quality?

Question 79

The operations and supply chain strategy wasn't aligned with the business strategy nor the mission, so management could only hope to minimize the damage the operations function caused. This ________ stage was targeted for improvement next year.

Question 80

A trade-off is at its core, a change in emphasis between two ________ dimensions.