Question 1

List and briefly explain the three basic facilities layouts or ways of arranging workstations with an example of the type of products produced by each type.

Accepted Answer

The answer of List and briefly explain the three basic...

Question 2

The implementation of customer relationship management (CRM) is a method of

Accepted Answer

A) managing inventory. 
B) changing the organizational structure. 
C) getting close to customers and understanding their needs. 
D) improving an organization's product development plan. 
E) rearranging the facility layout.

Question 3

Which of the following is true about total quality management?

Accepted Answer

A) Output goals and targets should include only numbers. 
B) The number of steps to assemble a product should be increased. 
C) Managers should ask employees for suggestions about improvements. 
D) Incentives such as bonus pay and promotional opportunities should be eliminated. 
E) A just-in-case inventory system should be introduced.

Question 4

An organization's audit revealed that its customer support system is the least effective department.The customer support system is a major source of the organization's _____ defects.

Accepted Answer

A) product 
B) manufacturing 
C) service 
D) distribution 
E) supply

Question 5

What is total quality management (TQM)? List the 10 steps necessary to implement a successful TQM program.

Accepted Answer

The answer of What is total quality management (TQM)? List...

Question 6

_____ is the fundamental rethinking and radical redesign of business procedures to achieve dramatic improvements in critical measures of performance such as cost, quality, service, and speed.

Accepted Answer

A) Product reengineering 
B) Product research 
C) Process reengineering 
D) Flexible manufacturing 
E) Efficiency monitoring

Question 7

The Donut House, a large donut bakery with outlets across several cities, improves the quality of the dough it uses and introduces a wide range of toppings and glazes to go with its donuts.This is an example of

Accepted Answer

A) quantum process innovation. 
B) quantum product innovation. 
C) incremental product innovation. 
D) incremental process innovation. 
E) process structuring.

Question 8

The _____ plan specifies all of the relevant information that managers need to decide whether to go ahead with a full-blown product development effort.

Accepted Answer

A) product development 
B) value chain 
C) product positioning 
D) process reengineering 
E) quality control

Question 9

A firm manufactures custom-made furniture based on customer specifications.Which of the following facilities layouts would best suit the firm's needs?

Accepted Answer

A) process layout 
B) fixed-position layout 
C) sequential layout 
D) product layout 
E) flexible manufacturing layout

Question 10

The _____ the input resources required to produce a given volume of output, the _____ will be the efficiency of the operating system.

Accepted Answer

A) more; higher 
B) fewer; higher 
C) smaller; lower 
D) fewer; lower 
E) larger; greater

Question 11

What is Six Sigma? Describe the similarity as well as the difference between Six Sigma and TQM.

Accepted Answer

The answer of What is Six Sigma? Describe the similarity...

Question 12

_______ is the management of the value chain activities that bring new products or services to market.

Accepted Answer

A) Product promotion 
B) Total quality management 
C) Product positioning 
D) Process reengineering 
E) Product development

Question 13

Which of the following must managers in product development avoid to promote innovation and speed up product development?

Accepted Answer

A) developing a structured process for evaluating ideas 
B) funding too many project ideas at one time 
C) providing incentives for employees to come up with ideas 
D) allowing team members to brainstorm 
E) establishing a stage-gate funnel

Question 14

Illumin, a light bulb manufacturing company, strives to improve the longevity and brightness of its bulbs by continuously changing designs and trying different combinations of materials and component parts while manufacturing them.This is an example of

Accepted Answer

A) quantum process innovation. 
B) quantum product innovation. 
C) incremental product innovation. 
D) incremental process innovation. 
E) process reengineering.

Question 15

A bicycle manufacturing company has been in business for two decades, and their products are well known for durability and ride quality.Satisfying customers is important, so the company responds to customer demand by providing products that have the desired attributes-quality, cost, and features.However, customer demand changes.Describe a functional strategy that the company can use to get close to customers and understand their needs.

Accepted Answer

The answer of A bicycle manufacturing company has been in...

Question 16

Higher product quality can increase efficiency and thereby lower operating costs.

Accepted Answer

A) True 
 B)False

Question 17

_________ is the stock of raw materials, inputs, and component parts that an organization has on hand at a particular time.

Accepted Answer

A) Storage 
B) Inventory 
C) Products 
D) Stored components 
E) Holdings

Question 18

Discuss the stages of a stage-gate development funnel.

Accepted Answer

The answer of Discuss the stages of a stage-gate development...

Question 19

Great cost savings can result from _____ inventory turnover and _____ inventory holding costs, such as warehousing and storage costs.

Accepted Answer

A) increasing; reducing 
B) increasing; increasing 
C) decreasing; reducing 
D) decreasing; increasing 
E) varying; increasing

Question 20

A _____ is a small, wheeled container used in a just-in-time inventory system to move component parts from suppliers to the assembly line.

Accepted Answer

A) container 
B) gurney 
C) conveyor belt 
D) kanban 
E) trailer

Exam 9: Value Chain Management: Functional Strategies for Competitive Advantage