Deck 19: Managing the Value Chain, Information Technology, and E-Business

Question 1

An example of a computerized manufacturing system (CMS) is a small to medium-size automated production line that can be adapted to produce more than one product line.

Answer 1

False

Question 2

More companies are opting for a partnership approach with integration, which involves cultivating intimate relationships with a few carefully selected suppliers and collaborating closely to coordinate tasks that benefit both parties.

Answer 2

True

Question 3

Employees are discouraged to participate in the improvement of quality under lean manufacturing.

Answer 3

False

Question 4

Finished goods, work in process, and raw materials are three types of normal inventory.

Question 5

A cellular layout is a facilities layout in which machines dedicated to sequences of production are grouped in accordance with group-technology principles.

Question 6

Raw materials inventory includes the materials moving through the stages of the production process that are not completed products.

Question 7

A facilities layout in which machines that perform the same function are grouped together in one location is called a process layout.

Question 8

Technical management is the field of management that specializes in production of goods and services and uses special tools and techniques for solving production problems.

Question 9

The field of management that specializes in production of goods and services and uses special tools and techniques for solving production problems is called operations management.

Question 10

More than one-half of all businesses, today, are service organizations and one-third of the U.S. workforce is employed in services.

Question 11

Keeping inventories low is especially important to the high-tech firms, because so many of their products lose value quickly.

Question 12

Radio-frequency identification uses electronic tags that can identify and track individual items such as books, automobiles, or even people.

Question 13

The product remains in one location and the required tasks and equipment are brought to it with a product layout.

Question 14

The fixed-position layout is one in which the equipment remains in one location and the products are brought to it.

Question 15

In an automobile company, the technical core includes the plants that manufacture automobiles, while the same in a university includes teaching and research.

Question 16

An e-supply chain creates seamless, integrated link that stretches from customers to suppliers by establishing electronic linkages between the organization and these external partners for sharing and exchange of data.

Question 17

Purchasing management is the term for managing the sequence of suppliers and purchasers covering all stages of processing from obtaining raw materials to distributing finished goods to final consumers.

Question 18

The drawback to the process layout is that the actual path a product or service takes can be long and complicated.

Question 19

The product layout is efficient when the organization produces or provides small quantities of different products and services.

Question 20

A service organization is an organization that produces nonphysical goods that require customer involvement and cannot be stored in inventory.

Question 21

Although information technology enhances collaborations within the organization, it has yet to be successful in enhancing collaborations between the organizations and external constituencies such as customers and suppliers.

Question 22

Social networking is online interaction in a community format where people share personal information and photos, produce and share all sorts of information and opinions, or unify activists and raise funds.

Question 23

A Web log that allows individuals to post opinions and ideas refers to social networking.

Question 24

Groupware is a software that displays documents on more than one users screen and allows all users to see changes or comments as they are made by one person.

Question 25

In operations management, problems can be hidden with large inventories.

Question 26

An executive information system is a management information system to support the information needs of senior managers dealing with the highest level of strategic decisions.

Question 27

Process control system is a type of management information systems.

Question 28

A business performance dashboard is a system that pulls data from a variety of organizational systems and databases; gauges the data against key performance metrics; pulls out the right nuggets of information; and delivers information to managers in a graphical, easy-to-interpret format.

Question 29

A Web site that allows anyone with access, inside or outside the organization, to create, share, and edit content through a simple, browser-based user interface is called social networking.

Question 30

Data that are converted into meaningful and useful context for the receiver are called information.

Question 31

An enterprise resource planning system can become the backbone of an organization's operations.

Question 32

JIT inventory systems are designed to reduce the level of an organization's inventory to zero.

Question 33

A collaborative work system is a computer-based information system that enables a novice computer user to more easily access complex and powerful computer software.

Question 34

The use of a huge database that combines all of a company's data and allows users to access the data directly, create reports and obtain answers to what-if questions are known customer relationship management systems.

Question 35

Wiki is a Web site that allows anyone with access, inside or outside the organization, to create, share, and edit content through a simple, browser-based user interface.

Question 36

Data are facts that are raw, unsummarized, and unanalyzed.

Question 37

Operations information systems typically support the strategic decision-making needs of higher-level managers.

Question 38

A Web log that allows individuals to post opinions and ideas is called a blog.

Question 39

The process of systematically gathering knowledge, making it widely available throughout the organization, and fostering a culture of learning is known as knowledge management.

Question 40

A computer-based system that provides information and support for effective managerial decision making refers to management information systems.

Question 41

Which of the following is an organization that produces nonphysical outputs that require customer involvement and cannot be stored in inventory?

A) Manufacturing organization
B) Service organization
C) Operations management organization
D) Non-inventory organization
E) Consumer-driven organization

Question 42

ERP, when carefully implemented, can cut costs, increase cycle time, and reduce productivity.

Question 43

What do manufacturing organizations and service organizations have in common?

A) Both types of organizations must obtain raw materials.
B) Both types of organizations need to be concerned with scheduling.
C) Both types of organizations should be concerned with quality and productivity.
D) All of these
E) Both types of organizations must obtain raw materials and need to be concerned with scheduling

Question 44

____ refers to an organization that produces physical goods.

A) A manufacturing organization
B) A service organization
C) An operations management organization
D) A physical organization
E) None of these

Question 45

A blog is online interaction in a community format where people share personal information and photos, produce and share all sorts of information and opinions, or unify activists and raise funds.

Question 46

A ____ is a facilities layout in which machines that perform the same function are grouped together in one location.

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

Question 47

An intranet is an external communications system that uses the Internet and is shared by two or more organizations.

Question 48

In a computer-manufacturing firm, the technical core includes

A) the plants where the computers are manufactured.
B) the human resources department.
C) the research and development department.
D) the marketing department.
E) all of these.

Question 49

Which is not a manufacturing organization?

A) Ford Motor Company
B) McDonald's
C) General Motors
D) Levi Strauss
E) All of these are manufacturing organizations.

Question 50

In which of the following ways do service organizations differ from manufacturing organizations?

A) In manufacturing organizations, the customer is directly involved in the production process.
B) In service organizations, employees are generally more satisfied.
C) In manufacturing organizations, the manufactured product cannot be placed in inventory.
D) In service organizations, the customer is directly involved in the production process.
E) In service organizations, the final product can be stored in inventory.

Question 51

In a(n) ____ approach of supplier relationships, an organization spreads its purchases among many suppliers and encourages them to compete with one another.

A) co-op
B) outreach
C) arm's length
D) collaboration
E) partnership

Question 52

Which of the following is the term for managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to final consumers?

A) Procurement management
B) Supply chain management
C) Customer satisfaction
D) Logistics
E) Competitive advantage

Question 53

The service sector has increased ____ times as fast as the manufacturing sector in the North American economy.

A) 3
B) 5
C) 7
D) 9
E) 11

Question 54

Airlines, universities, and consulting companies are all examples of

A) service organizations.
B) manufacturing organizations.
C) production organizations.
D) public sector organizations.
E) industrial organization.

Question 55

With integration, more companies are opting for a(n) ____, which involves cultivating intimate relationships with a few carefully selected suppliers and collaborating closely to coordinate tasks that benefit both parties.

A) co-op
B) outreach
C) arm's length
D) divesture
E) partnership

Question 56

Most commonly today, e-business refers to electronic linkages over the Internet with customers, partners, suppliers, employees or other key constituents.

Question 57

____ is the field of management that specializes in the physical production of goods or services, according to your textbook.

A) Engineering management
B) Quantitative management
C) Operations management
D) Production management
E) Service management

Question 58

The heart of the organization's production of its product or service is called the

A) manufacturing department.
B) technical core.
C) technological environment.
D) production sector.
E) output.

Question 59

An internal communications system that uses the technology and standards of the Internet but is accessible only to people within the company is called an extranet.

Question 60

Peer to peer software allows individual computers to talk directly with other PC's without an intermediary.

Question 61

Why do companies try to keep inventory low?

A) It keeps production stable.
B) Money that is not tied up with inventory can be used for other purposes.
C) The lower the inventory, the more flexibility the company has.
D) It keeps the employment in check.
E) It keeps the raw materials market balanced.

Question 62

The fixed-position layout is necessary for

A) long production runs.
B) when the organization is producing in huge volumes.
C) custom orders.
D) mass production.
E) small miniature items.

Question 63

____ is defined as the goods that the organization keeps on hand for use in the production process up to the point of selling the final product to customers.

A) Inventory
B) Finished-goods
C) Raw materials
D) Work in process
E) All of these

Question 64

In ____, staffing flexibility enhanced.

A) process layout
B) product layout
C) cellular layout
D) fixed-position layout
E) one position layout

Question 65

____ consists of hardware, software, telecommunications, database management, and other technologies.

A) Microsoft Office Suit
B) Information technology
C) Executive Information management
D) Process controls
E) Data

Question 66

Which of the following statements about inventory is NOT true?

A) Inventory sitting on the shop floor costs money.
B) The best criterion for gauging the effectiveness of manufacturing operations is inventory.
C) A company's worth can be measured by the size of its inventory.
D) Large inventories hide operations management problems.
E) None of these.

Question 67

____ is a facilities layout in which machines dedicated to sequences of production are grouped into cells in accordance with group-technology principles.

A) A product layout
B) A process layout
C) A fixed-position layout
D) A one-position layout
E) A cellular layout

Question 68

Which of these are designed to reduce an organization's inventories to zero?

A) Just-in-time systems
B) Stockless systems
C) Kanban systems
D) All of these
E) Just-in-time systems and stockless systems

Question 69

The product layout is most efficient when

A) the organization produces huge volumes of custom products.
B) the organization produces huge volumes of identical products.
C) the flow of raw materials is constant.
D) combined with a process layout.
E) all of these

Question 70

A ____ is a facilities layout in which machines and tasks are arranged according to the sequence of steps in the production process.

A) product layout
B) process layout
C) cellular layout
D) one position layout
E) multi-layer layout

Question 71

____ is a facilities layout in which the product remains in one position.

A) A fixed-position layout
B) A product layout
C) A process layout
D) A cellular layout
E) All of these

Question 72

Flour, sugar, and baking soda are ____ for a bakery.

A) finished-goods
B) raw materials
C) work in process
D) outputs
E) distribution goods

Question 73

Which of the following refers to an effort to systematically gather knowledge, make it widely available in the organization, and foster a culture of learning?

A) An ERP
B) Knowledge management
C) Data mining
D) Empowerment
E) Data warehousing

Question 74

Inventory includes

A) finished goods.
B) work in process.
C) raw materials.
D) all of these.
E) work in process and raw materials.

Question 75

Which of the following refers to a small or medium-sized automated production line that can be adapted to produce more than one product line?

A) Materials requirement planning
B) Reliable production system
C) Flexible manufacturing system
D) Dependent demand system
E) MRPII

Question 76

____ inventory is inventory consisting of the basic inputs to the organization's production process.

A) Finished goods
B) Work-in progress
C) Raw material
D) Possessed
E) Non-physical

Question 77

____ is inventory consisting of items that have passed through the complete production process but have yet to be sold.

A) Finished goods inventory
B) Work-in progress inventory
C) Raw material inventory
D) Possessed inventory
E) Non-physical inventory

Question 78

Which of these is based on group-technology principles?

A) A fixed-position layout
B) A cellular layout
C) A product layout
D) A process layout
E) All of these

Question 79

Which of the following is an advantage of the process layout?

A) Potential economies of scale
B) It facilitates group problem solving
C) It facilitates teamwork
D) All of these
E) Potential economies of scale and group problem solving

Question 80

____ uses electronic tags that can identify and track individual items.

A) Flexible manufacturing system
B) Radio-frequency identification
C) Universal product code system
D) Lean manufacturing system
E) Finished-goods inventory system