Question 1

Self-managing work teams:

Accepted Answer

A)  increase per-unit costs of manufactured items. 
B)  perform all workplace tasks except the making of hiring decisions. 
C)  increase the cycle time of manufacturing items. 
D)  require team members to learn only one task and specialize in that alone. 
E)  tend to increase productivity and product quality.

Question 2

The experience-curve concept:

Accepted Answer

A)  helps a company realize both learning effects and diseconomies of scale. 
B)  suggests that unit manufacturing costs increase by a certain amount each time output is increased. 
C)  is very important in industries that mass-produce a standardized output. 
D)  suggests that achieving low costs allows a firm to charge a premium price. 
E)  is least likely to bottom out as long as the company does not stop production.

Question 3

All else being equal, if a company moves down the experience curve faster than its rivals, it should realize a lower cost structure.

Accepted Answer

A) True 
 B)False

Question 4

Research suggests that the adoption of which of the following may increase efficiency and lower unit costs relative to what can be achieved by the mass production of a standardized output?

Accepted Answer

A)  Just-in-time manufacturing 
B)  Quick technology 
C)  Flexible production technologies 
D)  Stable production 
E)  Unscheduled manufacturing

Question 5

Cream Cups bakes cakes in several varieties dedicated to special occasions. It also allows its customers to personalize the cakes according to their personal preferences. This is an example of:

Accepted Answer

A)  learning effects. 
B)  a just-in-time (JIT) inventory system. 
C)  customer defection. 
D)  mass customization. 
E)  diseconomies of scale.

Question 6

Employee productivity is:

Accepted Answer

A)  a function of management delegation. 
B)  a key determinant of a company's efficiency, cost structure, and profitability. 
C)  not subject to measurement. 
D)  not sustainable in the long run. 
E)  a function that does not affect a company's profitability.

Question 7

Poor commercialization occurs when there is definite customer demand for a new product, but the product is not well adapted to customer needs because of factors such as poor design and poor quality.

Accepted Answer

A) True 
 B)False

Question 8

A disruption in the supply chain that causes input shortages can cause inventory problems for firms that rely on a just-in-time (JIT) inventory system.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following refers to unit cost increases associated with a large scale of output?

Accepted Answer

A)  Economies of scale 
B)  Learning effects 
C)  Diseconomies of scale 
D)  Flexible manufacturing 
E)  Mass customization

Question 10

Sherree works at Dustcloud Manufacturing where she is part of a seven-member team. Her team coordinates its own activities as well as makes its own hiring, training, work, and reward decisions. This type of team is referred to as a virtual team.

Accepted Answer

A) True 
 B)False

Question 11

Mass customization:

Accepted Answer

A)  limits a company's ability to customize products. 
B)  reduces the use of individual machines and hinders quality control at all stages of the manufacturing process. 
C)  increases the setup times for complex equipment. 
D)  is the use of technology to produce large quantities of standardized outputs. 
E)  is a company's ability to reconcile low cost and differentiation.

Question 12

In order to achieve superior innovation, top management is responsible for facilitating cooperation while R&D is responsible for effectively collaborating with marketing and production to develop new products.

Accepted Answer

A) True 
 B)False

Question 13

There is a negative relationship between the length of time that a customer stays with a company and profit per customer.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is NOT a role played by infrastructure leadership in implementing reliability improvement methodologies?

Accepted Answer

A)  Providing leadership and commitment quality 
B)  Finding ways to manage quality 
C)  Setting goals and creating incentives 
D)  Soliciting input from employees 
E)  Lengthening production runs

Question 15

Diseconomies of scale are the unit cost increases associated with a large scale of output.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is NOT one of the principles commonly found in companies that have successfully embraced the total quality management (TQM) philosophy?

Accepted Answer

A)  Building an organizational commitment to quality 
B)  Enhancing the philosophy that mistakes, defects, and poor-quality materials are not acceptable 
C)  Allowing more time for supervisors to work with employees 
D)  Training employees in appropriate skills for the job 
E)  Defining work standards only in terms of numbers or quotas

Question 17

Which of the following is NOT a result of reducing lot sizes for manufactured products?

Accepted Answer

A)  Defects are difficult to identify. 
B)  The source of defects can be recognized quickly. 
C)  The problems causing any defects can be addressed and rectified. 
D)  It decreases waste. 
E)  There will not be as many defective products produced in the lot size.

Question 18

Although important, unfortunately, innovation plays a minor role in achieving competitive advantage.

Accepted Answer

A) True 
 B)False

Question 19

When implementing reliability improvement methodologies, the role played by the materials management team is to organize employees into quality teams and trace defects back to the source.

Accepted Answer

A) True 
 B)False

Question 20

You are a consultant offering advice to a large manufacturing firm about ways to increase its distinctive competency in customer responsiveness. What suggestions would you offer? Be specific and detailed in your answer.

Accepted Answer

The answer of You are a consultant offering advice to...

Exam 4: Competitive Advantage Through Functional-Level Strategies

Self-managing work teams:

The experience-curve concept:

All else being equal, if a company moves down the experience curve faster than its rivals, it should realize a lower cost structure.

Research suggests that the adoption of which of the following may increase efficiency and lower unit costs relative to what can be achieved by the mass production of a standardized output?

Cream Cups bakes cakes in several varieties dedicated to special occasions. It also allows its customers to personalize the cakes according to their personal preferences. This is an example of:

Employee productivity is:

Poor commercialization occurs when there is definite customer demand for a new product, but the product is not well adapted to customer needs because of factors such as poor design and poor quality.

A disruption in the supply chain that causes input shortages can cause inventory problems for firms that rely on a just-in-time (JIT) inventory system.

Which of the following refers to unit cost increases associated with a large scale of output?

Sherree works at Dustcloud Manufacturing where she is part of a seven-member team. Her team coordinates its own activities as well as makes its own hiring, training, work, and reward decisions. This type of team is referred to as a virtual team.

Mass customization:

In order to achieve superior innovation, top management is responsible for facilitating cooperation while R&D is responsible for effectively collaborating with marketing and production to develop new products.

There is a negative relationship between the length of time that a customer stays with a company and profit per customer.

Which of the following is NOT a role played by infrastructure leadership in implementing reliability improvement methodologies?

Diseconomies of scale are the unit cost increases associated with a large scale of output.

Which of the following is NOT one of the principles commonly found in companies that have successfully embraced the total quality management (TQM) philosophy?

Which of the following is NOT a result of reducing lot sizes for manufactured products?

Although important, unfortunately, innovation plays a minor role in achieving competitive advantage.

When implementing reliability improvement methodologies, the role played by the materials management team is to organize employees into quality teams and trace defects back to the source.

You are a consultant offering advice to a large manufacturing firm about ways to increase its distinctive competency in customer responsiveness. What suggestions would you offer? Be specific and detailed in your answer.