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Managing Ops Across the Supply Chain, 4e (Swink) Chapter 1 Introduction to Managing Operations Across the Supply Chain 1) Which of the following is NOT one of the processes included in operations management? A) Design B) Finance C) Produce D) Deliver Answer: B Explanation: Design, supply, produce, and deliver are operations management processes. Finance is not. Difficulty: 1 Easy Topic: A Broad Definition of Supply Chain Operations Management Learning Objective: 01-01 Explain what operations management is and why it is important. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 2) A supply chain is a global network of organizations and activities involved in: A) Producing, buying, servicing, and disposing of goods and services. B) Designing, transforming, consuming, and disposing of goods and services. C) Financing, producing, and marketing of goods and services. D) Designing, financing, selling, and disposing of goods and services. Answer: B Explanation: The organizations and activities in a supply chain are involved in designing, transforming, consuming, and disposing of goods and services. Difficulty: 1 Easy Topic: A Broad Definition of Supply Chain Operations Management Learning Objective: 01-01 Explain what operations management is and why it is important. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

3) Operations managers answer questions of what, how, when, where, and who by defining both the ________ and ________ aspects of the operations management system. A) Financing and capacity B) Marketing and delivery C) Structural and infrastructural D) Production and accounting Answer: C Explanation: Structural and infrastructural aspects of operations management must be defined to answer questions of what, how, when, where, and who. Difficulty: 2 Medium Topic: A Broad Definition of Supply Chain Operations Management Learning Objective: 01-02 Describe the major decisions that operations managers typically make. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 4) Structural operations management decisions include: A) Workforce, capacity, and facilities. B) Workforce, production planning, and materials controls. C) Capacity, facilities, and technology. D) Materials controls, supply chain, and value definition. Answer: C Explanation: Structural decisions include capacity, facilities, technology, and the supply chain network. The other decisions are infrastructural decisions. Difficulty: 2 Medium Topic: A Broad Definition of Supply Chain Operations Management Learning Objective: 01-02 Describe the major decisions that operations managers typically make. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

5) Joe Jones was asked to undertake a project to determine the resources and capacity his firm would need in the next three to 10 years. These types of decisions are considered to be: A) Infrastructural aspects of operations management. B) Positional aspects of operations management. C) Assessment aspects of operations management. D) Structural aspects of operations management. Answer: D Explanation: Resources and capacity are among the structural decisions. Difficulty: 2 Medium Topic: A Broad Definition of Supply Chain Operations Management Learning Objective: 01-02 Describe the major decisions that operations managers typically make. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 6) Physical goods can be differentiated from services in the operations management process by: A) Longer lead times and they can be inventoried. B) More capital-intensive and shorter lead times. C) More labor-intensive and longer lead times. D) More expensive and easier to control. Answer: A Explanation: Physical goods typically have longer lead times than services and can be inventoried (services typically cannot). See Table 1-1. Difficulty: 1 Easy Topic: A Broad Definition of Supply Chain Operations Management Learning Objective: 01-02 Describe the major decisions that operations managers typically make. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

7) Which of the following functions would NOT have to think about "processes"? A) Logistics management B) Production management C) Supply management D) Accounting E) All of these have to think about "processes." Answer: E Explanation: All functions must think about processes. Difficulty: 1 Easy Topic: A Broad Definition of Supply Chain Operations Management Learning Objective: 01-03 Explain the role of processes and "process thinking" in operations management. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 8) Which of the following statements about operations management processes is NOT true? A) Inputs to operations management processes can be materials, people, and/or information. B) Outputs of operations management processes are always tangible goods. C) Operations management processes involve transformation of inputs into valuable outputs. D) Design of operations processes should reflect what customers want. Answer: B Explanation: Outputs of operations management processes can be services. Difficulty: 2 Medium Topic: A Broad Definition of Supply Chain Operations Management Learning Objective: 01-03 Explain the role of processes and "process thinking" in operations management. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

9) Growth of the supply chain management perspective in operations management results from the advent of: A) Technology and infrastructure advances. B) Collaborative networks. C) A focus on core capabilities. D) All of these. Answer: D Explanation: In addition to the three listed alternatives, reduction in trade barriers also contributed to growth of the supply chain perspective. Difficulty: 1 Easy Topic: Operations Management Yesterday and Today Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective." Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 10) During the "mass production" era, operations management focused primarily on: A) Production and design. B) Internal production. C) The global supply chain. D) Sales, production, and design. Answer: B Explanation: In the mass production era, the operations focus was on internal production. Difficulty: 2 Medium Topic: Operations Management Yesterday and Today Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective." Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

11) While there is overlap between operations management and supply chain management, the two are different in that: A) Operations management focuses on production, supply chain management focuses on supply and logistics. B) Operations management focuses on tangible goods, supply chain management focuses on services. C) Operations management focuses on processes, supply chain management focuses on relationships and flows. D) All of these. Answer: C Explanation: The key distinction is that supply chain management focuses on relationships and flows, whereas operations management focuses on processes. Difficulty: 1 Easy Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective." Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 12) Johnson Company makes widgets, which it then sends to Smith Company. Smith Company puts the widgets in packages. Smith Company is considered by Johnson to be a: A) Key customer. B) Upstream product supplier. C) Aftermarket supplier. D) Downstream product supplier. Answer: D Explanation: Companies that enhance finished goods are considered downstream product suppliers. Difficulty: 2 Medium Topic: Viewing Operations Management from a Supply Chain Perspective Learning Objective: 01-05 Identify the partners and functional groups that work together in operations management. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

13) To an operations manager, the "key customer" is: A) The person who buys a product. B) The person who has the greatest impact on design, sales, and growth opportunities for the product. C) The Echelon 1 customer. D) The person who uses the product. Answer: B Explanation: The key customer is one who has the greatest impact on design, sales, and growth opportunities. Difficulty: 1 Easy Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-05 Identify the partners and functional groups that work together in operations management. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 14) Which functional activities are the most closely related to operations managers' attempts to manage the flow of materials and information in a firm? A) Finance, accounting, and supply management B) Logistics, finance, and supply management C) Logistics, supply, and customer management D) Customer, finance, and logistics management Answer: C Explanation: Supply management, logistics management, and customer management are the functions most directly related to the flows of both materials and information. Finance and accounting are primarily about managing capital and reporting information. Difficulty: 1 Easy Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-06 Define the planning activities associated with managing operations across the supply chain. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

15) Jones Manufacturing sells a part to Lear Corporation. Lear puts this part into a radio, which Lear then sells to Ford. From Ford's point of view, Jones Manufacturing is a(n) ________ supplier. A) Echelon 1 B) Echelon 2 C) Tier 1 D) Tier 2 Answer: D Explanation: A supplier's supplier is known as a Tier 2 supplier. Difficulty: 2 Medium Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-05 Identify the partners and functional groups that work together in operations management. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 16) Operations management is: A) The management of production. B) The management of services. C) The management of processes. D) The management of physicians. Answer: C Explanation: "Processes" comprehends all of the aspects of operations management. The other answers are just possible components of operations management. Difficulty: 1 Easy Topic: A Broad Definition of Supply Chain Operations Management Learning Objective: 01-01 Explain what operations management is and why it is important. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

17) Which of the following statements is a reason why operations management is important? A) Efficient and productive operations drive the economic well-being of nations. B) Operations management is responsible for much of the value created by organizations. C) Operations management is a key source of competitive differentiation among firms. D) All of these are reasons why operations management is important. Answer: D Explanation: Operations management affects both macroeconomic and individual firm outcomes. Difficulty: 1 Easy Topic: A Broad Definition of Supply Chain Operations Management Learning Objective: 01-01 Explain what operations management is and why it is important. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 18) A process is: A) A set of planned steps used to achieve an objective. B) A system of activities that transforms inputs into valuable outputs. C) A system of decisions. D) A combined effort by people who want to get something done. Answer: B Explanation: Processes involve transformation, and they may or may not involve people. Difficulty: 2 Medium Topic: A Broad Definition of Supply Chain Operations Management Learning Objective: 01-03 Explain the role of processes and "process thinking" in operations management. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

19) Which of the following statements is NOT true regarding supply chain management? A) Globalization has slowed the growth of supply chain management. B) Supply chain management is a way of viewing operations management. C) Supply chain management has grown as a result of a focus on core capabilities. D) Supply chain management is about making the most of relationships with suppliers. Answer: A Explanation: Globalization has increased the growth of supply chain management. SCM involves relationships with customers and partners, not just suppliers. Difficulty: 2 Medium Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective." Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 20) Every organization operates which of the following types of supply chains? A) Product and tangible goods supply chains. B) Information and personnel supply chains. C) Direct and indirect supply chains. D) Product and resource/technology supply chains. Answer: D Explanation: Product supply chains manage flows of goods and services. Resource/technology supply chains manage acquisitions and flows of equipment, facilities, workers, product designs, and so on. Difficulty: 2 Medium Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective." Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

21) Which of the following factors is NOT a major change driver that supply chain managers are concerned about? A) Technology changes B) Regulatory changes C) Global political changes D) Supply chain managers are concerned about all of these changes. Answer: D Explanation: Supply chain managers also track market changes, including social issues such as sustainability. Difficulty: 2 Medium Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective." Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 22) Different levels of planning in supply chain operations management include: A) General and detailed planning. B) Strategic, tactical, and operational planning. C) Long-term and short-term planning. D) Logistical, operational, and procurement planning. Answer: B Explanation: Strategic, tactical, and operational planning address different time frames and levels of detail. Difficulty: 1 Easy Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-06 Define the planning activities associated with managing operations across the supply chain. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

23) An example of strategic planning is: A) Deciding where to locate a new manufacturing plant. B) Forecasting next week's demand of a given product item. C) Targeting customer demand for aggregate product families. D) Setting inventory levels for a given product. Answer: A Explanation: Strategic planning addresses long-term decisions involving large amounts of money. Difficulty: 2 Medium Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-06 Define the planning activities associated with managing operations across the supply chain. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 24) Which of the following decisions would NOT be under the direct control of operations managers? A) What resources will be used to satisfy customer demand? B) What customers should be targeted with greatest priority? C) What suppliers should provide needed inputs? D) What mode of transportation should be used to ship products? Answer: B Explanation: Customer targeting is primarily the responsibility of the marketing function. Difficulty: 2 Medium Topic: A Broad Definition of Supply Chain Operations Management Learning Objective: 01-02 Describe the major decisions that operations managers typically make. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

25) Customer service management connects what functional groups? A) Supply management, marketing, and finance. B) Logistics management, sales and distribution, and product engineering. C) Marketing, logistics management, and sales and distribution. D) Human resources management, marketing, and finance. Answer: C Explanation: These groups work together to identify and fulfill customers' needs. Difficulty: 2 Medium Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-05 Identify the partners and functional groups that work together in operations management. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 26) Supply chain management has grown as a prevalent perspective on operations management because: A) Purchasing managers now have stronger roles in companies. B) Firms have become more vertically integrated. C) Technology has facilitated globalization. D) Governments have become less open to trade. Answer: C Explanation: Communications and transportation technologies have made global outsourcing easier, thus raising the need to focus on supply chains. Difficulty: 2 Medium Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective." Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

27) Fundamental areas of management in supply chain operations management include: A) Quality, Inventories, and Processes. B) People, Equipment, and Money. C) Markets, Processes, and Sales. D) Lean Systems, Quality, and Flexibility. Answer: A Explanation: These groups work together to identify and fulfill customers' needs. Difficulty: 2 Medium Topic: A Broad Definition of Supply Chain Operations Management Learning Objective: 01-01 Explain what operations management is and why it is important. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 28) Which of the following statements best describes "process thinking"? A) It is a way to manage thought processes to make better decisions. B) It is a way to view business as a system of interrelated activities. C) It is a way to approach work systematically. D) It is a way to categorize elements of work activities. Answer: B Explanation: Process thinking looks at all operations as systems of activities that are related by material, information, and people flows, and by shared resources. Difficulty: 2 Medium Topic: A Broad Definition of Supply Chain Operations Management Learning Objective: 01-03 Explain the role of processes and "process thinking" in operations management. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

29) Operations management is important because: A) It affects the quality of life of workers and consumers B) It is a major cost for firms that needs to be minimized C) Managers need to continually find ways to automate processes D) It is more important than finance or marketing Answer: A Explanation: The ways that operations are managed affect the health, enjoyment, and mobility of workers, as well as the productivity and wealth of nations. Difficulty: 2 Medium Topic: A Broad Definition of Supply Chain Operations Management Learning Objective: 01-01 Explain what operations management is and why it is important. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 30) Which of the following challenges is most likely to be faced by service operations managers, rather than manufacturing operations managers? A) Operations is typically less financially important in service businesses B) Pure service operations need to be separated from pure goods-producing operations C) The "total product experience" is more important in services D) Customers are more directly involved in service processes, so their perceptions need to be considered Answer: D Explanation: Customers are often intimately a part of the operations process. The process is the product, and customers directly and immediately observe the process. Difficulty: 2 Medium Topic: A Broad Definition of Supply Chain Operations Management Learning Objective: 01-01 Explain what operations management is and why it is important. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

31) Up until the latter parts of the 20th century, operations management mainly focused on: A) Design B) Internal production C) External outsourcing D) Globalization Answer: B Explanation: Over the last 50 years, globalization and outsourcing have caused a shift in operations management from an internal focus to a combined internal and external focus. Difficulty: 2 Medium Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective." Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 32) How is "supply chain management" different than "operations management"? A) They are exactly the same thing B) Supply chain management focuses mainly on supplier relationships, while operations management focuses mainly on production C) Supply chain management is about relationships and flows, while operations management is about processes D) Supply chain management is external, while operations management is internal Answer: C Explanation: Supply chain management is a way of viewing operations that focuses on connections and flows of materials and information, whereas operations traditionally has more of a process orientation. These are not mutually exclusive differences, they simply represent differences in perspectives and functional scope. Difficulty: 3 Hard Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective." Bloom's: Analyze AACSB: Analytical Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

33) In working with downstream processes, internal operations managers typically work closely with: A) Marketing and sales managers B) Information technology managers C) Human resource managers D) Government regulators Answer: A Explanation: Operations managers working in "customer-facing" processes (e.g., order processing, fulfillment) will work closely with marketing and sales managers, who are also customer-oriented. Difficulty: 2 Medium Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-05 Identify the partners and functional groups that work together in operations management. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 34) Internal operations managers work with what function to coordinate inbound and outbound flows of materials and information? A) Finance B) Purchasing C) Marketing D) Logistics Answer: D Explanation: Logistics operations managers focus on managing orders and inventories into and out of a company's facilities. Difficulty: 2 Medium Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-05 Identify the partners and functional groups that work together in operations management. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

35) A supplier of materials used in manufactured goods is a member of: A) A union B) The product supply chain C) The resource/technology supply chain D) The tier 2 supply chain Answer: B Explanation: Material suppliers provide items that go into finished products. Resource/technology suppliers provide knowledge or physical assets (e.g., equipment) that are used to accomplish product transformations. Difficulty: 2 Medium Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-04 Explain what the supply chain is and what it means to view operations management using a "supply chain perspective." Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 36) Which of the following groups is NOT likely to be stakeholders for operations in a local bank? A) Customers B) Regulators C) Employees D) All of these are likely to be stakeholders Answer: D Explanation: A bank must consider the needs of its customers and employees, while also complying with government and other regulators. Difficulty: 2 Medium Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-05 Identify the partners and functional groups that work together in operations management. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

37) What kinds of questions does an operations manager who is responsible for tactical-level planning address? A) What new technologies should the company buy? B) What new customers should the company pursue? C) How many workers should we hire or fire? D) Which customer order should we work on first today? Answer: C Explanation: Tactical planning deals with medium-term issues (months) usually regarding capacity (e.g., labor, machines, space). Difficulty: 3 Hard Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-06 Define the planning activities associated with managing operations across the supply chain. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 38) What kinds of questions does an operations manager who is responsible for operational-level planning address? A) How many units of inventory for product X should I order? B) Where should we locate a new distribution center? C) What new information system should we install? D) What technical training program should we purchase? Answer: A Explanation: Operational-level planning deals with short-term issues (hours or days), typically addressing order processing, labor allocations, and inventory management. Difficulty: 3 Hard Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-06 Define the planning activities associated with managing operations across the supply chain. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

39) What kinds of questions does an operations manager who is responsible for strategic-level planning address? A) Which employees should work the day shift tomorrow? B) How should this process be organized? C) How many manufacturing plants should the company operate? D) Should we make this part or buy it? Answer: C Explanation: Strategic planning deals with long-term issues (years) at a business level, including making changes to a physical network of facilities. Difficulty: 3 Hard Topic: Viewing Operations Management from a Supply Chain Management Perspective Learning Objective: 01-06 Define the planning activities associated with managing operations across the supply chain. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 40) Suppose that you are the general manager of a hotel. For which of the following issues would you first seek help from an operations manager in your firm? A) Our prices seem to be too high. B) Customers' complaints are rising. C) We need a new insurance policy. D) We are running out of cash. Answer: B Explanation: Although operations managers might be asked to get involved with any of these issues, customer complaints are probably due to ineffective processes, a primary operations management responsibility. Difficulty: 3 Hard Topic: A Broad Definition of Supply Chain Operations Management Learning Objective: 01-02 Describe the major decisions that operations managers typically make. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

Managing Ops Across the Supply Chain, 4e (Swink) Chapter 2 Operations and Supply Chain Strategy 1) Corporate strategic planning involves decisions related to: A) What businesses should we be in? B) What specific product- and market-based initiatives and goals should we establish? C) What measures should we use to control strategic initiatives? D) All of these. Answer: A Explanation: Corporate strategic planning is very broad and relates to what businesses the company should be involved in. Difficulty: 1 Easy Topic: Levels of Strategic Planning Learning Objective: 02-01 Describe how operations strategy fits within a firm s overall strategic planning process. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 2) Functional strategic planning involves decisions related to: A) What businesses should we be in? B) Specific product- and market-based initiatives and goals. C) What metrics should be used to ensure progress in operations management? D) All of these. Answer: C Explanation: Functional planning includes decisions regarding appropriate metrics for the specific functions in a business unit. Difficulty: 1 Easy Topic: Levels of Strategic Planning Learning Objective: 02-01 Describe how operations strategy fits within a firm s overall strategic planning process. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

3) A well-designed value proposition possesses four characteristics. Which of the following is NOT one of those characteristics? A) It offers the highest product quality in each quality dimension. B) It differentiates the firm from its competition in a way that is difficult to imitate. C) It satisfies the financial and strategic objectives of the firm. D) It can be reliably delivered given the operational capabilities of the firm and its supporting supply chain. Answer: A Explanation: Providing value does not require the highest quality in each dimension of quality. Difficulty: 1 Easy Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-02 Describe the need for fit between the key customers, value propositions, and operations capabilities-the essential elements that define an operations strategy. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 4) Which of the following is the most appropriate definition of an "order winner"? A) A product characteristic that causes customers to choose the product over that of a competitor. B) A product characteristic that permits the product to compete in a market. C) A product that has the highest profit margin. D) A product that generates the highest dollar sales volume. Answer: A Explanation: Order winners are traits that cause customers to actually choose a specific product. Difficulty: 1 Easy Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-03 Describe customer-desired outcomes in terms of order winners, order qualifiers, and order losers. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

5) Which of the following is NOT true about "order qualifiers"? A) These are product traits that must meet a certain level in order for the product to even be considered by customers. B) The firm must perform acceptably on these traits, usually at least as well as competitors' offerings. C) Order qualifier traits may include availability, price, and conformance quality. D) All of the items are true. Answer: D Explanation: "Order qualifiers" are traits a product must meet at a certain threshold level to be considered; the product must perform acceptably on traits including availability, price, or conformance quality. Difficulty: 2 Medium Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-03 Describe customer-desired outcomes in terms of order winners, order qualifiers, and order losers. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 6) Xanadu makes HD televisions. It claims that its HD televisions have the clearest picture clarity in the industry. Xanadu is emphasizing which dimension of quality? A) Reliability B) Performance C) Features D) Conformance Answer: B Explanation: Picture clarity is a basic performance dimension of HD televisions. Difficulty: 2 Medium Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-04 Explain what product-related and process-related operational competitive priorities are and how they are related to competitive advantage. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

7) Scantron Inc. claims that its competitors have to recall 10 percent of their products to fix defects, while it only has to recall 5 percent. Scantron is emphasizing which dimension of quality? A) Durability B) Reliability C) Performance D) Conformance Answer: D Explanation: Defects are an indication of lack of conformance. Difficulty: 2 Medium Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-04 Explain what product-related and process-related operational competitive priorities are and how they are related to competitive advantage. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 8) Which of the following is considered a "process-related" competitive priority? A) Flexibility B) Quality C) Cost D) All of these Answer: A Explanation: Quality and cost are product-related. Flexibility is process related. Difficulty: 1 Easy Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-04 Explain what product-related and process-related operational competitive priorities are and how they are related to competitive advantage. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

9) Xanadu Inc. claims that its manufacturing processes result in fewer greenhouse gases than those of its primary competitors. This suggests that Xanadu has a focus on: A) Risk management. B) Sustainability. C) Flexibility. D) Profitability. Answer: B Explanation: Maintaining operations that are profitable and nondamaging to the environment is sustainability. Difficulty: 1 Easy Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-04 Explain what product-related and process-related operational competitive priorities are and how they are related to competitive advantage. Bloom's: Remember AACSB: Ethics Accessibility: Keyboard Navigation; Screen Reader Compatible 10) Which of the following is NOT considered a key characteristic of a core capability: A) It is based on factors that are rare or unique to the firm. B) It is hard to imitate. C) It does not need to be extendable to many market opportunities. D) There are few substitutes for it. Answer: C Explanation: Core capabilities should be extendable to many market opportunities. Difficulty: 1 Easy Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-05 Explain how strategic performance can be assessed both operationally and financially by using the strategic profit model. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation

11) "When operational capabilities are consistent with and supportive of the value proposition and the outcomes desired by key customers" - this statement best describes the concept of: A) Execution. B) Flexibility. C) Strategic planning. D) Fit. Answer: D Explanation: Fit exists when operational capabilities are consistent with and supportive of the value proposition and the outcomes desired by key customers. Difficulty: 1 Easy Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-05 Explain how strategic performance can be assessed both operationally and financially by using the strategic profit model. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 12) A vice president of operations wants to evaluate the impact of reducing manufacturing expenses on the firm's return on assets. Which measurement should be examined? A) Cost of goods sold B) Asset turnover C) Net profit margin D) None of these Answer: A Explanation: In the Strategic Profit Model, cost of goods sold includes manufacturing expenses. Difficulty: 1 Easy Topic: Deploying Operations Strategy: Creating Value through Execution Learning Objective: 02-05 Explain how strategic performance can be assessed both operationally and financially by using the strategic profit model. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

13) You are an upper-level manager in a firm. You believe that corporate objectives are not effectively disseminated throughout the organization and that line-level managers do not take them into account in their decision making. Which of the following would best help you to try to correct this problem? A) Hold a series of supervisory manager meetings. B) Establish metric-based performance measures. C) Evaluate personality indicators to ensure inter-departmental worker compatibility. D) Evaluate and increase manager salaries and benefits. Answer: B Explanation: Performance measures communicate strategic intentions to operations personnel. Difficulty: 2 Medium Topic: Deploying Operations Strategy: Creating Value through Execution Learning Objective: 02-05 Explain how strategic performance can be assessed both operationally and financially by using the strategic profit model. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 14) Which of the following is the most appropriate definition of a core capability? A) A set of products unique to a firm. B) Technical capabilities of a firm. C) Reputation. D) Production/design processes unique to the firm. Answer: D Explanation: Core capabilities are skills, processes, and systems that are unique to the firm and desired by the customer. Difficulty: 1 Easy Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-04 Explain what product-related and process-related operational competitive priorities are and how they are related to competitive advantage. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

15) Which of the following is NOT a component of the business model? A) Key customer B) Value proposition C) Desired outcome statement D) System capabilities Answer: C Explanation: This is based on the discussion of the business model. Difficulty: 1 Easy Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-02 Describe the need for fit between the key customers, value propositions, and operations capabilities-the essential elements that define an operations strategy. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

16) A company with a number of physically separate plants has a centralized tool room. This tool room in the past has been responsible for emergency repairs. Whenever equipment (e.g., a spindle, boring machine, transfer line) in one of these separate plants breaks down, the affected items are brought to the tool room, where they are repaired. In some cases, the breakdowns affect production schedules. In other cases, the breakdowns are more annoying but do not adversely affect schedules. Complicating the operations in the tool room is the fact that many of the plans for the equipment are incomplete or out-of-date, thus resulting in "make from sample"; requests (the broken part is provided and the tool room is asked to make the replacement piece just like the broken part). It is difficult to predict what equipment will break down and when. Furthermore, the company owns a wide variety of equipment. What are the order winners and order qualifiers in this scenario?

A. B. C. D.

Order Winners Cost,Quality Flexibility,Quality Speed,Cost Speed,Flexibility

Order Qualifiers Speed,Flexibility Speed,Cost Flexibility,Quality Quality,Cost

A) Option A B) Option B C) Option C D) Option D Answer: D Explanation: This situation demands speed and flexibility. Quality and cost are also important, but should not be exchanged for less speed or inflexibility. Difficulty: 2 Medium Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-03 Describe customer-desired outcomes in terms of order winners, order qualifiers, and order losers. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation

17) Currently, our system is characterized by a lack of fit between what the customer wants and what the SCM system is best able to provide. As a result, which of the following would apply? 1. The only way to restore fit is for the firm to change the market segment it is going after. 2. Unless something is done, our firm will not be the most effective and efficient long-term supplier. 3. Any firm can successfully counter such inconsistencies through the use of patents and aggressive advertising. A) 1 only. B) 2 only. C) 3 only. D) 1 and 2 only. E) 1, 2, and 3. Answer: B Explanation: Only solution 2 addresses this situation directly. Solution 1 "blames the customer" for the firm's shortcomings and solution 3 does not address the issues at all, providing symptomatic relief at best. Difficulty: 2 Medium Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-02 Describe the need for fit between the key customers, value propositions, and operations capabilities-the essential elements that define an operations strategy. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 18) Which three elements make up the triple bottom line? A) Planet, Pollution, Profit. B) Pollution, Equality, People. C) Profit, Equality, Pollution. D) People, Profit, Planet. Answer: D Explanation: The term "triple bottom line" refers to three different measures of profit and loss: People, Profit, and Planet. Difficulty: 1 Easy Topic: Deploying Operations Strategy: Creating Value through Execution Learning Objective: 02-05 Explain how strategic performance can be assessed both operationally and financially by using the strategic profit model. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

19) Which of the following attributes is directly related to fitness for consumption by a customer? A) Transaction Price B) Timeliness C) Performance D) Availability Answer: C Explanation: A product's performance is an aspect of its quality, which is its fitness for consumption by the consumer who bought it. Difficulty: 1 Easy Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-04 Explain what product-related and process-related operational competitive priorities are and how they are related to competitive advantage. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 20) Under which component of the business model would people and culture fall? A) Key customer B) Value proposition C) Environment D) System capabilities Answer: D Explanation: People and culture are a key component of an organization's systemic capabilities. Difficulty: 1 Easy Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-04 Explain what product-related and process-related operational competitive priorities are and how they are related to competitive advantage. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

21) Within the supply chain and operations management system, the value proposition is most effectively communicated to the rest of the organization through which of the following mechanisms? A) Performance measures B) Mission statements C) Management mandates D) Corporate slogans and promotional materials. Answer: A Explanation: Performance measures communicate strategic intentions to operational personnel. Difficulty: 2 Medium Topic: Deploying Operations Strategy: Creating Value through Execution Learning Objective: 02-05 Explain how strategic performance can be assessed both operationally and financially by using the strategic profit model. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 22) An electronics firm produces smart phones for sale to the worldwide market. One of the most crucial process-related competitive operational priorities for this firm is: A) Aesthetics B) Cyber security C) Flexibility D) Durability Answer: C Explanation: Flexibility is important because of the short life cycle of a current model and the rapid progression of technology. Cyber security is handled by the ultimate customer's network vendor. Aesthetics and Durability are product-related characteristics, not process-related characteristics. Difficulty: 2 Medium Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-03 Describe customer-desired outcomes in terms of order winners, order qualifiers, and order losers. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

23) A manufacturer of generic prescription drugs must excel at delivering which of the following product traits? A) Product performance B) Features (unique attributes) C) Durability D) Low cost Answer: D Explanation: Since generic products seek to mimic brand-name products, their central appeal is lower purchase price. Difficulty: 2 Medium Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-03 Describe customer-desired outcomes in terms of order winners, order qualifiers, and order losers. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 24) Decision making regarding customers and products is often led by the: A) CEO B) Board of Directors C) Marketing Management D) Financial Managers Answer: C Explanation: Marketing managers often lead decisions regarding customers and products. Difficulty: 2 Medium Topic: Developing Operations Strategy: Creating Value through Strategic Choices Learning Objective: 02-03 Describe customer-desired outcomes in terms of order winners, order qualifiers, and order losers. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

25) Internal questions that may be addressed in a SWOT analysis include: A) What obstacles do we face? B) What trends are we well positioned to take advantage of? C) What do we do better than anyone else? D) What changes in technology will affect us? Answer: C Explanation: "What do we do better than anyone else?" is a question that helps identify strengths in the SWOT analysis. Difficulty: 1 Easy Topic: Levels of Strategic Planning Learning Objective: 02-01 Describe how operations strategy fits within a firm s overall strategic planning process. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 26) The three elements of Value Proposition, Key Customers, and Capabilities operate within an environment. Which of the following is NOT part of that environment? A) Competition B) Regulation C) Technology D) Founder's ideology Answer: D Explanation: The environment consists of conditions such as competition, regulations, and technology that influence how managers develop an operations strategy. Difficulty: 2 Medium Topic: Levels of Strategic Planning Learning Objective: 02-01 Describe how operations strategy fits within a firm s overall strategic planning process. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

Managing Ops Across the Supply Chain, 4e (Swink) Chapter 3S Supplement: Process Mapping and Analysis 1) You, as a supply chain analyst, have been approached by the vice president of supply chain operations to come up with a recommendation for improving the throughput time for the manufacture of Widget A. You quickly realize that you need a process map before you proceed. What is the first step you should undertake to map the process? A) Draw a detailed schematic of the inputs and outputs of the process in question. B) Identify the desired outcomes of the process. C) Analyse the process and prioritize opportunities for improvement. D) Document the existing process (the "current state" map). Answer: B Explanation: The first step in process mapping is to determine the desired outputs of the process. Difficulty: 1 Easy Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-01 Work through the various steps in process mapping and analysis. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 2) After you have drawn the "current state" process map, you decide that you need a tool for showing the actual moves of material (and their locations) that take place in the manufacture of Widget A. Which of the following tools would be most appropriate? A) A "future state" map B) A process flow table C) An assembly process chart D) A physical layout diagram Answer: D Explanation: A physical layout diagram will show the actual moves of materials and their locations. Difficulty: 2 Medium Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-04 Understand when and how to apply the various tools of process mapping. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

3) You realize that you need a tool for recording all the move distances, process flow symbols, people involved, value add designations, and time required for each step to get an overall grasp for where waste exists in the process. The best tool for this would be: A) A value stream map B) A process flow table C) An assembly process chart D) A physical layout diagram Answer: B Explanation: A process flow table records process activities, their attributes, and their sequence. Difficulty: 1 Easy Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-04 Understand when and how to apply the various tools of process mapping. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 4) "Bounding" a process is necessary because: A) It determines which activity is the bottleneck. B) If the project is "shelved" during your analysis, someone else may have to pick up where you left off. C) Bounding determines if a process is a core competency. D) Without bounding, it is difficult to determine the beginning and ending points for the analysis. Answer: D Explanation: It is important to clearly identify the limits of the process that is to be improved. Difficulty: 1 Easy Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-01 Work through the various steps in process mapping and analysis. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

5) The process of "stapling yourself to an order" refers to: A) Pretending you are the workpiece moving through a process. B) Observing a process through multiple iterations to eliminate possible biases from observing "random" events. C) Stapling documents in your process maps to other applicable documents in order not to confuse the "flow." D) Imagining a workpiece in a process and following it through a process map you have developed. Answer: A Explanation: Stapling yourself to an order means following the path an order would take through the process and documenting each activity. Difficulty: 1 Easy Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-01 Work through the various steps in process mapping and analysis. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 6) The symbol ⇒ indicates what type of activity in a process? A) Operation B) Transportation C) Delay D) Storage Answer: B Explanation: Transportation activity is indicated by a small arrow on the process map. Difficulty: 1 Easy Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-03 Determine to what type of activity each step in a process belongs. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

7) The symbol ∇ indicates what type of activity in a process? A) Operation B) Transportation C) Delay D) Storage Answer: D Explanation: Storage activity is indicated by an inverted isosceles triangle. Difficulty: 1 Easy Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-03 Determine to what type of activity each step in a process belongs. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 8) A process activity identified by a "?" is typically a(n): A) Value-adding activity. B) Necessary activity. C) Waste-generating activity. D) None of these. Answer: D Explanation: The question (?) symbol does not signify any type of process activity. In value analysis it indicates a process whose value is uncertain. Difficulty: 1 Easy Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-03 Determine to what type of activity each step in a process belongs. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

9) You observe three different people doing the same task using three different approaches (with differing levels of quality, output, and lead time). Which of the following disposition options is most appropriate for this situation? A) Keep B) Rethink C) Combine D) Eliminate Answer: B Explanation: Rethink: evaluate the three approaches to determine which is most efficient and/or appropriate and standardize the approach to this task. Difficulty: 2 Medium Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-03 Determine to what type of activity each step in a process belongs. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 10) Which of the following is NOT a principle of process improvement? A) Produce at the rate of customer demand. B) Sequence activities to minimize setups, distance, or other transition costs. C) Change process design to facilitate product improvements. D) All of these are principles of process improvement. Answer: C Explanation: Changing product (not process) design to facilitate process (not product) improvement is a principle of process improvement. Difficulty: 3 Hard Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-05 Change a process to make it more effective and efficient by either refining the current process or designing a new replacement process. Bloom's: Analyze AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

11) A tool used to quickly communicate proposed process changes effectively is called a: A) Process summary table. B) New physical layout diagram. C) Work process flowchart. D) Process flow diagram. Answer: A Explanation: A process summary table can be developed to communicate proposed process changes effectively Difficulty: 2 Medium Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-04 Understand when and how to apply the various tools of process mapping. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 12) The principles of process improvement suggest that an effective, efficient process: A) Maximizes the number of sequential activities and minimizes the number of parallel ones. B) Eliminates all ? steps. C) Minimizes the number of entry points of a workpiece into the process. D) Minimizes reliance on departments outside of manufacturing. Answer: C Explanation: A principle of process improvement is to try to limit the number of entry points of workpieces into the process. Difficulty: 2 Medium Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-05 Change a process to make it more effective and efficient by either refining the current process or designing a new replacement process. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

13) The principles of process improvement suggest that an ineffective, inefficient process: A) Produces at the rate of customer demand. B) Produces products in large batch sizes. C) Processes workpieces on a FIFO basis. D) Keeps non-value-adding activities off the critical path. Answer: B Explanation: A principle of process improvement is to develop the ability to economically make every part every day by making setup times as short as possible. Difficulty: 2 Medium Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-05 Change a process to make it more effective and efficient by either refining the current process or designing a new replacement process. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 14) Value stream mapping: A) Is a simplified version of process mapping. B) Uses the same terminology and symbols used in typical process mapping. C) Is another name for a future state map. D) Relies on computer-assisted flowcharting. E) Is more comprehensive than typical process mapping. Answer: E Explanation: Value stream mapping is more comprehensive and complex than the process mapping described in the text. Difficulty: 1 Easy Topic: Other Process Mapping Tools Learning Objective: 03S-04 Understand when and how to apply the various tools of process mapping. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

15) Joe's Quick Oil Change shop is interested in improving its ability to satisfy customers. The most appropriate mapping tool for a company such as this is called: A) Service architecture. B) Service blueprinting. C) Service diagramming. D) Service mapping. Answer: B Explanation: Service blueprinting focuses on understanding the interfaces between customers, technology, and the service process. Difficulty: 1 Easy Topic: Other Process Mapping Tools Learning Objective: 03S-04 Understand when and how to apply the various tools of process mapping. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 16) When should the metrics used in evaluating a process be developed? A) As soon as we have identified the value proposition. B) After we have identified the critical process. C) When we have done the "as is" analysis of the process. D) After we have completed the future state analysis of the process. Answer: A Explanation: It is important to first clarify what the process should achieve. This is largely defined by the product's value proposition. The initial step in the resulting process design and analysis is to determine the desired outcome of the process and the associated metrics needed to evaluate its performance. Difficulty: 1 Easy Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-01 Work through the various steps in process mapping and analysis. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

17) Which of the following conditions does a "critical" process satisfy? A) Process with the most steps (thus consuming the most time). B) The one that people complain about the most. C) A process that is visible to the key customers. D) The first process that we encounter in the system. Answer: C Explanation: One of the attributes of a process deemed critical is that it is visible to the key customer. Difficulty: 1 Easy Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-01 Work through the various steps in process mapping and analysis. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 18) Value in a process flow analysis is most often associated with which of the following activities? A) Operations B) Inspections C) Storages D) Transportation Answer: A Explanation: Most of the value-added processes involve operations. Valus is seldom added in storage, inspection, or transportation. Difficulty: 1 Easy Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-03 Determine to what type of activity each step in a process belongs. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

19) Production planning and scheduling is most likely to be associated with which of the following activities? A) Operations B) Inspections C) Storages D) Transportation Answer: A Explanation: Production planning and scheduling is closely associated with operations. Difficulty: 1 Easy Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-03 Determine to what type of activity each step in a process belongs. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 20) Which of the following identifies the most appropriate time to set the metrics when doing a process flow analysis? A) During the analysis stage B) At the start of the process of process analysis C) When bounding the critical process D) When recommending the appropriate changes to the process (i.e., the "future state" map) Answer: B Explanation: Before making any change to the process, it is important to clarify what the process should achieve. Difficulty: 1 Easy Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-01 Work through the various steps in process mapping and analysis. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

21) Which of the following mapping techniques identifies and integrates functional responsibilities into the process mapping process? A) Process flow diagram B) Value stream mapping C) Service blueprinting D) Swim lanes Answer: D Explanation: The major attraction of swim lanes is that this technique helps organize processes into functional or organizational blocks and responsibilities. Difficulty: 1 Easy Topic: Other Process Mapping Tools Learning Objective: 03S-05 Change a process to make it more effective and efficient by either refining the current process or designing a new replacement process. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 22) Which of the following activities is most likely to be overlooked when doing a process flow analysis? A) Operations B) Inspections C) Delays D) Storages Answer: C Explanation: It is often easy to overlook certain steps in a process, especially delays. Difficulty: 1 Easy Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-02 Assess a process to determine how effective it is in achieving its desired outcome(s). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

23) Why are processes that are visible to the customer considered to be critical? A) They often exhibit the greatest variance (thus affecting customer waiting times). B) They are often bottlenecks (thus causing customer delays). C) They are often shared processes. D) They affect the customer perceptions of value delivered by the firm. Answer: D Explanation: Processes that are visible to the customer are critical because they can directly affect the customer's perception of value. Difficulty: 1 Easy Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-02 Assess a process to determine how effective it is in achieving its desired outcome(s). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 24) Which of the following identifies the ultimate goal of process mapping? A) Reduce steps in the process. B) Reduce costs created by the process. C) Improve the value a process delivers to its customers. D) Facilitate the identification and reduction of system complexity. Answer: C Explanation: Whether minor or radical process changes are anticipated, it is a good idea to keep in mind that the goal of any process analysis is to continually improve the value that a process delivers to its customers. Difficulty: 1 Easy Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-02 Assess a process to determine how effective it is in achieving its desired outcome(s). Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

25) Which of the following is an example of an activity that is "necessary but not value-adding"? A) Scheduling B) Processing C) Inspections D) Setups Answer: D Explanation: A process setup prepares equipment for a task, but no value is added in setting up the equipment. Difficulty: 1 Easy Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-04 Understand when and how to apply the various tools of process mapping. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 26) Which of these sets of two activities are most likely to be "value-adding"? A) Operations and storages B) Storages and delays C) Delays and transportations D) Transportations and operations Answer: D Explanation: In general, transportation and operations activities tend to most often contribute to value. Difficulty: 1 Easy Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-04 Understand when and how to apply the various tools of process mapping. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

27) When the Marriott, an international hotel chain, designs a new facility, which of the following process tools is it most likely to use? A) Swim lanes B) Process Flow Diagram C) Service blueprinting D) Physical Layout Diagram Answer: C Explanation: Service blueprints are particularly useful for improving service offerings. Difficulty: 1 Easy Topic: Other Process Mapping Tools Learning Objective: 03S-05 Change a process to make it more effective and efficient by either refining the current process or designing a new replacement process. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 28) If our goal is to reduce lead times, which of the following process measures is most appropriate? A) Number of steps B) Actual elapsed lead time C) Percentage reduction in lead time D) Actual lead time versus standard or target lead time Answer: A Explanation: The more steps in a process, the longer the lead time. Difficulty: 2 Medium Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-02 Assess a process to determine how effective it is in achieving its desired outcome(s). Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

29) Which of the following traits is not associated with a critical process? A) It is a bottleneck operation. B) It has been identified by management as critical. C) It is visible to the customer. D) It is associated with a core competency. Answer: B Explanation: The traits of a critical process are identified by analysis, not proclamation. Difficulty: 2 Medium Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-02 Assess a process to determine how effective it is in achieving its desired outcome(s). Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 30) A process measure related to availability is: A) Average setup time B) Number of defect-free shipments C) Number of interdepartmental handoffs D) Percentage reduction in lead time Answer: C Explanation: More hand-offs usually indicate more delays and lower availability. Difficulty: 1 Easy Topic: Other Process Mapping Tools Learning Objective: 03S-04 Understand when and how to apply the various tools of process mapping. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

31) In the process of process mapping, the first step is always: A) Identify and bound the critical process. B) Staple yourself to an order. C) Determine the desired outcome of the process. D) Document the existing process. Answer: C Explanation: The first step in process mapping is to determine the desired outcome of the process and the associated metrics to evaluate its performance. Difficulty: 2 Medium Topic: The "Process" of Process Mapping and Analysis Learning Objective: 03S-01 Work through the various steps in process mapping and analysis. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

Managing Ops Across the Supply Chain, 4e (Swink) Chapter 3 Managing Processes and Capacity 1) Process thinking causes managers to address critical process elements, including: A) If you don't like the outcome, focus on the people. B) Processes are guidelines to thinking about to best staff activities. C) Processes drive measurement. D) If you don't like the outcome, change the process. Answer: D Explanation: Outputs become viewed as the result of the process; if you don't like the outcome, change the process. Difficulty: 1 Easy Topic: Processes and Process Thinking Learning Objective: 03-01 Understand the importance of processes and process thinking to operations and supply chain management. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 2) Which of the following is NOT a basic activity type in processes? A) Delay B) Operation C) Reporting D) Storage Answer: C Explanation: Operation, transportation, inspection, delay, and storage are the basic activity types in a process. Difficulty: 1 Easy Topic: Anatomy of a Process Learning Objective: 03-02 Define the various components that make up processes, including types of inputs and outputs. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

3) You walk into a hair stylist shop. All stylists are busy and you sit in the waiting area. You are in which of the following basic activity types in a process? A) Operation B) Delay C) Storage D) You are not in a process activity. Answer: B Explanation: Operation, transportation, inspection, delay, and storage are the basic activity types in a process. Difficulty: 2 Medium Topic: Anatomy of a Process Learning Objective: 03-02 Define the various components that make up processes, including types of inputs and outputs. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 4) Most processes involve two basic types of flows: A) Information flows and material flows. B) Product flows and decision flows. C) Information flows and operator flows. D) Physical flows and security flows. Answer: A Explanation: Most processes involved two types of flows: information flows and material flows. Difficulty: 1 Easy Topic: Anatomy of a Process Learning Objective: 03-02 Define the various components that make up processes, including types of inputs and outputs. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

5) A manager is currently unhappy with the capabilities of a particular process and wants to improve its capabilities. To accomplish this, the manager needs to focus on the process: A) Inputs, outputs, and flows. B) Activities. C) Management metrics. D) Structure. Answer: D Explanation: The structure limits the process capabilities. Difficulty: 2 Medium Topic: Anatomy of a Process Learning Objective: 03-02 Define the various components that make up processes, including types of inputs and outputs. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 6) Joe Jones, plant manager at Waco Industries, told a friend that if it was necessary, his plant could produce 1,000 items a day if all conditions were just right. Joe is describing his plant's: A) Effective capacity. B) Yield rate. C) Utilization. D) Maximum capacity. Answer: D Explanation: Maximum capacity is the highest output a process can achieve under ideal conditions. Difficulty: 2 Medium Topic: Process Capacity and Utilization Learning Objective: 03-03 Distinguish between operational, tactical, and strategic capacity planning. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

7) Adam Smith described his company's process as follows: "Under ideal conditions we can produce 10,000 units a day. However, our normal production is 6,000 units a day. Today, we actually produced 8,000 units." Which of the following is true? A) Utilization is 60 percent of maximum capacity. B) Yield is 133 percent of effective capacity. C) Utilization was 133 percent of effective capacity. D) All of these are true. Answer: C Explanation: 8,000 ÷ 6,000 = 133% Difficulty: 2 Medium Topic: Process Capacity and Utilization Learning Objective: 03-03 Distinguish between operational, tactical, and strategic capacity planning. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 8) The following sequence shows four operations for a computer chip assembly process and the effective capacity of each. Which step is the bottleneck? Step 1: 500 chips/hour Step 2: 250 chips/hour Step 3: 200 chips/hour Step 4: 550 chips/hour A) Step 1 B) Step 2 C) Step 3 D) Step 4 Answer: C Explanation: 200 chips per hour is the smallest capacity listed and is therefore the process bottleneck. Difficulty: 1 Easy Topic: Principles of Process Performance: The Theory of Constraints Learning Objective: 03-04 Estimate the capacity and utilization of a process. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

9) The following sequence shows four operations for a computer chip assembly process and the effective capacity of each. Step 1: 500 chips/hour Step 2: 250 chips/hour Step 3: 200 chips/hour Step 4: 550 chips/hour Suppose the utilization is 70 percent of effective capacity. What is the actual output of the process? A) 140 chips/hour B) 350 chips/hour C) 175 chips/hour D) 200 chips/hour Answer: A Explanation: 200 × 0.70 = 140 chips/hour Difficulty: 2 Medium Topic: Principles of Process Performance: The Theory of Constraints Learning Objective: 03-04 Estimate the capacity and utilization of a process. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 10) A bottleneck activity in a process is generally the activity with: A) The smallest number of resources devoted to it. B) The least capacity. C) No delays in front of it. D) The highest cost. Answer: B Explanation: The bottleneck in a process is the activity with the least capacity per unit of time. Difficulty: 1 Easy Topic: Principles of Process Performance: The Theory of Constraints Learning Objective: 03-04 Estimate the capacity and utilization of a process. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

11) Little's Law suggests that the key to increased throughput is: A) Shorter flow times. B) Fewer defects. C) Eliminating waste. D) Increased inspection. Answer: A Explanation: Flow time = inventory divided by throughput rate Difficulty: 2 Medium Topic: Principles of Process Performance: The Theory of Constraints Learning Objective: 03-04 Estimate the capacity and utilization of a process. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 12) Suppose you learn that a process has a very long waiting time. Which of the following would decrease the waiting time? A) Decrease utilization. B) Increase the coefficient of variation of job arrival times. C) Increase the coefficient of variation of job processing times. D) None of these would decrease waiting time. Answer: A Explanation: Increasing the variability increases waiting times. The only option presented that decreases waiting times is decreasing utilization. Difficulty: 3 Hard Topic: Principles of Process Performance: The Theory of Constraints Learning Objective: 03-05 Explain the impacts of bottlenecks, variance, and other factors on process performance. Bloom's: Evaluate AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

13) One implication of increased utilization in a process is that: A) Process cost typically will go up. B) Waiting time typically will go up. C) Variance typically will be reduced. D) All of these. Answer: B Explanation: The formula for wait time includes the factor (Utilization / 1 – utilization) as a multiplier. Hence, as utilization increases, waiting time will increase Difficulty: 3 Hard Topic: Principles of Process Performance: The Theory of Constraints Learning Objective: 03-05 Explain the impacts of bottlenecks, variance, and other factors on process performance. Bloom's: Analyze AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 14) If a company can eliminate all sources of variance in a process: A) It will be able to operate at maximum capacity at all times. B) There will be no constraints in the process. C) Continuous improvement will not be necessary. D) None of these are true. Answer: D Explanation: Eliminating variability does not remove constraints or eliminate the need for improvement. Maximum capacity cannot be achieved over long periods of time. Difficulty: 1 Easy Topic: Principles of Process Performance: The Theory of Constraints Learning Objective: 03-05 Explain the impacts of bottlenecks, variance, and other factors on process performance. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

15) An example of a short-term capacity increase decision is: A) Adding specialized labor. B) Installing new equipment. C) Adding new facilities. D) Adding low-skilled labor. Answer: D Explanation: Of these options, adding low-skilled labor is the easiest to implement and to reverse. Difficulty: 1 Easy Topic: Process Capacity and Utilization Learning Objective: 03-03 Distinguish between operational, tactical, and strategic capacity planning. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 16) Which of the following statements about economies of scale is NOT true? A) One reason economies of scale occur is because fixed costs can be spread over more units of production as output increases. B) One reason economies of scale occur is because employees become more efficient as volume increases. C) Economies of scale refers to the fact that as volume increases, total cost of production decreases. D) Economies of scale may not exist at all levels of production. Answer: C Explanation: While unit costs may decrease as volume increases, total costs will continue to rise. Difficulty: 1 Easy Topic: Process Capacity and Utilization Learning Objective: 03-03 Distinguish between operational, tactical, and strategic capacity planning. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

17) Floor space used to store items to be inspected belongs to which of the following elements of a process? A) Activities B) Inputs/outputs/flows C) Process structure D) Management policies Answer: B Explanation: An inspection activity requires floor space to store the items being inspected and is thus an input to the process. Difficulty: 1 Easy Topic: Anatomy of a Process Learning Objective: 03-02 Define the various components that make up processes, including types of inputs and outputs. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 18) Under Juran's Law, whenever a problem occurs, what percentage of the time is the problem the result of a system/process error? A) 15 percent B) 50 percent C) 85 percent D) 100 percent Answer: C Explanation: 85% of operational problems are the result of a system or process error, not human error. Difficulty: 1 Easy Topic: Processes and Process Thinking Learning Objective: 03-01 Understand the importance of processes and process thinking to operations and supply chain management. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

19) Subcontracting is typically considered at what time horizon when doing capacity planning? A) Short-term B) Medium-term C) Long-term D) It is not part of the capacity planning process. Answer: B Explanation: Subcontracting is thought of as a medium-term capacity decision. Difficulty: 1 Easy Topic: Process Capacity and Utilization Learning Objective: 03-05 Explain the impacts of bottlenecks, variance, and other factors on process performance. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 20) Which of the following actions will NOT increase output? A) Increasing capacity through physical additions. B) Outsourcing. C) Managing the flow of work into the system. D) Changing the processes to eliminate unnecessary steps. Answer: C Explanation: The flow of work into the system is unrelated to output. Difficulty: 2 Medium Topic: Process Capacity and Utilization Learning Objective: 03-05 Explain the impacts of bottlenecks, variance, and other factors on process performance. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

21) Which of the following statements best differentiates a delay from storage? A) There is no difference – they both refer to the same concept. B) Delays are planned activities; storages are not. C) Delays are uncontrolled; storage is a planned part of a process. D) Delays require control; storages does not. Answer: C Explanation: Storage is a planned part of a process. Difficulty: 1 Easy Topic: Processes and Process Thinking Learning Objective: 03-02 Define the various components that make up processes, including types of inputs and outputs. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 22) Which of the following elements of a process most directly impacts or affects process capabilities? A) Activities B) Inputs/Outputs/Flows C) Process Structure D) Management Policies. Answer: C Explanation: The process structure limits process capabilities. Difficulty: 1 Easy Topic: Processes and Process Thinking Learning Objective: 03-02 Define the various components that make up processes, including types of inputs and outputs. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

23) Space on the shop floor, bins, carts, or racks are capacity-limiting resources most frequently associated with which of the following process activities? A) Delays B) Transportation C) Inspections D) Operations. Answer: A Explanation: Delays utilize limited resources including space on the shop floor, carts, and racks holding the materials delayed by a malfunction, for example. Difficulty: 1 Easy Topic: Processes and Process Thinking Learning Objective: 03-02 Define the various components that make up processes, including types of inputs and outputs. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 24) Which two of the following effects directly result from bottlenecks? A) Increase in costs and increase in defects. B) Increase in output and increase in lead-times. C) Decrease in inspections and increase in costs. D) Decrease in output and increase in lead-times. Answer: D Explanation: Bottlenecks limit output and extend lead times. Difficulty: 1 Easy Topic: Principles of Process Performance: The Theory of Constraints Learning Objective: 03-05 Explain the impacts of bottlenecks, variance, and other factors on process performance. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

25) A process having the same activity being performed by two or more resources simultaneously is said to have what kind of structure? A) Serial B) Parallel C) Helping D) Flexible Answer: B Explanation: In a Parallel structure, an activity is done by two or more resources simultaneously. Difficulty: 1 Easy Topic: Principles of Process Performance: The Theory of Constraints Learning Objective: 03-05 Explain the impacts of bottlenecks, variance, and other factors on process performance. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 26) The total time that it takes to get one unit through a process is called: A) Flow time B) Cycle time C) Throughput time D) Wait time Answer: A Explanation: Flow time is the total time it takes to get one unit through a process. Difficulty: 2 Medium Topic: Principles of Process Performance: The Theory of Constraints Learning Objective: 03-05 Explain the impacts of bottlenecks, variance, and other factors on process performance. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

27) Inventory held due to bottlenecks in a process causes: A) Increased storage requirements B) Quality issues C) Increased labor costs D) All of these Answer: D Explanation: Inventory due to bottlenecks creates requirements for more space to store inventoried items, labor to track and manage that inventory, and leads to increased damage from handling and delays in diagnosing the causes of quality problems. Difficulty: 1 Easy Topic: Principles of Process Performance: The Theory of Constraints Learning Objective: 03-05 Explain the impacts of bottlenecks, variance, and other factors on process performance. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 28) Continual improvement of processes is important because: A) Competitors are improving their processes. B) Customer preferences change over time. C) Technology is constantly changing. D) All of these. Answer: D Explanation: Operations managers do not work in a static world. Difficulty: 1 Easy Topic: Principles of Process Performance: The Theory of Constraints Learning Objective: 03-06 Describe process improvement methodologies such as business process reengineering. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

29) In process improvement projects, why should we focus our efforts on those processes that consume the most resources (e.g., labor, space, capital, etc.)? A) Because those are the processes most visible to the customer B) Because those are the processes that use our firm's core capabilities C) Because that is where we get "the most bang for our buck." D) All of these Answer: C Explanation: We focus on the processes that consume the most resources because that is where improvements can have the greatest return. Difficulty: 1 Easy Topic: Principles of Process Performance: The Theory of Constraints Learning Objective: 03-06 Describe process improvement methodologies such as business process reengineering. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

Managing Ops Across the Supply Chain, 4e (Swink) Chapter 4 Product/Process Innovation 1) ________ transform product specifications and new process technology into a new or revised production system. A) New process design and development projects B) New product design and development projects C) Concurrent engineering projects D) Operations management projects Answer: A Explanation: This is the definition of new process design and development projects. Difficulty: 1 Easy Topic: The Role of Product/Process Innovation in Supply Chain Operations Management Learning Objective: 04-01 Explain why product/process innovation is an important contributor to a firm's performance. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 2) Fast innovators typically gain which advantages? A) They produce a more continuous stream of new product introductions that create a greater and more constant market awareness of their brands. B) They have fewer problems in launching new products and fewer failures in the marketplace. C) They can sell at lower prices or lower the total sales needed for a new product to pay back its initial development costs. D) All of these. Answer: A Explanation: High-quality innovators have fewer problems in launching new products and fewer failures in the marketplace. Efficient innovators can sell at lower prices or lower the total sales needed for a new product to pay back its initial development costs. Fast innovators produce a more continuous stream of new product introductions that create a greater and more constant market awareness of their brands. Difficulty: 2 Medium Topic: The Role of Product/Process Innovation in Supply Chain Operations Management Learning Objective: 04-01 Explain why product/process innovation is an important contributor to a firm's performance. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

3) High-quality innovators typically gain which advantages? A) They can fund more new design and development projects than other firms. B) They satisfy customers more effectively, building strong brand image and customer loyalty. C) They can sell at lower prices or lower the total sales needed for a new product to pay back its initial development costs. D) None of these. Answer: B Explanation: Efficient innovators can both fund more new design and development projects than other firms and sell at lower prices or lower the total sales needed for a new product to pay back its initial development costs. High-quality innovators can satisfy customers more effectively, building strong brand image and customer loyalty. Difficulty: 2 Medium Topic: The Role of Product/Process Innovation in Supply Chain Operations Management Learning Objective: 04-01 Explain why product/process innovation is an important contributor to a firm's performance. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 4) Acton Corporation has identified a way to combine several existing technologies into a new product. This is most likely to have occurred in a: A) Research and advanced development project. B) Radical breakthrough development project. C) Next generation or platform development project. D) Enhancement development project. Answer: C Explanation: Using existing technologies to develop new products is a next generation development project. Difficulty: 2 Medium Topic: Operational Product/Process Innovation Competencies Learning Objective: 04-02 Contrast different types of innovation strategies and projects. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

5) An advantage of "early supplier involvement" is that it: A) Generally leads to higher-quality products. B) Decreases time to launch new products. C) Avoids supply problems once the product is launched. D) All of these. Answer: D Explanation: ESI helps suppliers and buyers identify improvements and avoid problems early in product design phases. Difficulty: 2 Medium Topic: The Role of Product/Process Innovation in Supply Chain Operations Management Learning Objective: 04-03 Describe new product/process design and development objectives and project phases. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 6) The stage of a product/process innovation in which managers determine the target values of product attributes, volume, and price is: A) Product and market testing. B) Product and process planning. C) Detailed design and development. D) Concept development. Answer: D Explanation: In concept development, product attributes, expected volumes, and prices are determined. Difficulty: 1 Easy Topic: Product/Process Design and Development Learning Objective: 04-03 Describe new product/process design and development objectives and project phases. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

7) "Concurrent engineering" is best described as: A) The simultaneous implementation of engineering projects critical to the manufacture of new products. B) Assigning multiple engineers to a project to ensure the accuracy of the work. C) The simultaneous design and development of all the processes and information needed to manufacture a product, to sell it, to distribute it, and to service it. D) Engineering techniques that seek to capture leading-edge knowledge and technology in the design phase of a new product. Answer: C Explanation: Concurrent engineering extends beyond product development to include development of processes for sales, distribution, and servicing. Difficulty: 2 Medium Topic: Product/Process Design and Development Learning Objective: 04-04 Explain why cross-functional integration is needed in product and process design. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 8) Sequential product development projects are likely to have ________ development costs and ________ development times than concurrent engineering product development projects. A) Higher; longer B) Higher; shorter C) Lower; longer D) Lower; shorter Answer: C Explanation: Sequential development lowers development costs because each function focuses only on its concerns, but it generally takes longer to complete. Difficulty: 2 Medium Topic: Product/Process Design and Development Learning Objective: 04-04 Explain why cross-functional integration is needed in product and process design. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

9) The main purpose of quality function deployment (QFD) is: A) To base product and process design decisions more directly on what the customer thinks is important. B) To clearly identify the functional groups within the organization that have a direct influence on quality. C) To expand the quality function and eliminate the need for statistical process control. D) To set up a plan for the deployment of statistical quality control tools throughout the organization. Answer: A Explanation: QFD is a tool used in design for the customer. Difficulty: 1 Easy Topic: Product/Process Design and Development Learning Objective: 04-05 Apply tools and techniques for integrating customer needs and supply chain considerations into product/process design and development. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 10) The "house of quality" is best described as: A) An approach in which customers use product prototypes and provide feedback to developers. B) A template that guides the translation of product features into technical product specifications. C) Research efforts that gather detailed data describing customers' wishes, needs, likes, and dislikes regarding specific product features and functionalities. D) A template that guides identification and translation of customer requirements into product specifications. Answer: D Explanation: The house of quality (also known as customer requirements planning matrix) is an aspect of QFD that guides the identification and translation of requirements into product specifications. Difficulty: 2 Medium Topic: Product/Process Design and Development Learning Objective: 04-05 Apply tools and techniques for integrating customer needs and supply chain considerations into product/process design and development. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

11) In conducting a failure modes and effects analysis, the following data were developed for three modes Mode 1: Severity = 5, Occurrence = 2, and Undetectability = 7 Mode 2: Severity = 3, Occurrence = 6, and Undetectability = 5 Mode 3: Severity = 7, Occurrence = 2, and Undetectability = 4 Which has the highest risk? A) Mode 1 B) Mode 2 C) Mode 3 D) Mode 1 and Mode 2 are equal in having highest risk Answer: B Explanation: Mode 1: 5 × 2 × 7 = 70. Mode 2: 3 × 6 × 5 = 90. Mode 3: 7 × 2 × 4 = 56 Difficulty: 2 Medium Topic: Product/Process Design and Development Learning Objective: 04-05 Apply tools and techniques for integrating customer needs and supply chain considerations into product/process design and development. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 12) A project team interested in identifying and correcting potential quality problems in a product design would find which one of the following tools most useful? A) QFD B) FMEA C) Value analysis D) DFM Answer: B Explanation: Failure mode and effects analysis is a procedure for accomplishing this purpose. Difficulty: 1 Easy Topic: Product/Process Design and Development Learning Objective: 04-05 Apply tools and techniques for integrating customer needs and supply chain considerations into product/process design and development. Bloom's: Apply AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

13) Xanadu Inc. has a project team interested in reducing the projected production cost of a new product. The team would find which one of the following tools most useful? A) QFD B) FMEA C) DFM D) CAD/CAE Answer: C Explanation: Design for manufacture (DFM) is specifically oriented toward reducing production cost. Difficulty: 1 Easy Topic: Product/Process Design and Development Learning Objective: 04-05 Apply tools and techniques for integrating customer needs and supply chain considerations into product/process design and development. Bloom's: Apply AACSB: Technology Accessibility: Keyboard Navigation; Screen Reader Compatible 14) Overall, it is clear that well-managed innovation projects: A) Apply only to manufacturing firms. B) Increasingly involve input from multiple functions in a company. C) Should always be executed sequentially. D) All of these. Answer: B Explanation: This question actually covers several parts of the chapter. Innovation projects apply to all types of organizations, and integrated or simultaneous execution has many benefits. The chapter emphasizes multifunctional input. Difficulty: 1 Easy Topic: Product/Process Design and Development Learning Objective: 04-04 Explain why cross-functional integration is needed in product and process design. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

15) A disadvantage of "component standardization" is that it: A) Increases development time. B) Increases development cost. C) Increases the difficulty of inventory management. D) None of these are disadvantages. Answer: D Explanation: Component standardization actually decreases each of the items listed. Difficulty: 1 Easy Topic: Product/Process Design and Development Learning Objective: 04-05 Apply tools and techniques for integrating customer needs and supply chain considerations into product/process design and development. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 16) Which of the following statements is true regarding product/process innovation? A) Innovation projects are operational processes. B) Product and process development activities are usually closely linked. C) Product/process design is a part of the resource/technology supply chain. D) All of these statements are true. Answer: D Explanation: Product/process innovation is critical to successful operations management. Difficulty: 1 Easy Topic: The Role of Product/Process Innovation in Supply Chain Operations Management Learning Objective: 04-01 Explain why product/process innovation is an important contributor to a firm's performance. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

17) The stage of the product life cycle in which process innovation becomes an important way to increase efficiencies is: A) Launch B) Growth C) Maturity D) Decline Answer: C Explanation: Once the product matures, competition shifts to cost and efficiency. Difficulty: 2 Medium Topic: The Role of Product/Process Innovation in Supply Chain Operations Management Learning Objective: 04-01 Explain why product/process innovation is an important contributor to a firm's performance. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 18) A project aimed at finding new core products or processes is called a(n): A) Research and advanced development project. B) New platform development project. C) Next generation development project. D) Enhancement development project. Answer: A Explanation: Finding new core technologies to develop new products is a research and advanced development project. Difficulty: 1 Easy Topic: Operational Product/Process Innovation Competencies Learning Objective: 04-02 Contrast different types of innovation strategies and projects. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

19) An emphasis on involving supply chain partners in product/process innovation is known as: A) Portfolio planning B) Launch and learn C) Codevelopment D) Design outsourcing Answer: C Explanation: Also called "open innovation," codevelopment focuses on using partnerships to jointly develop new products and processes. Difficulty: 1 Easy Topic: Operational Product/Process Innovation Competencies Learning Objective: 04-02 Contrast different types of innovation strategies and projects. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 20) Companies usually first build working product prototypes in which stage of product/process innovation? A) Concept development B) Detailed design and development C) Market testing D) Commercialization Answer: B Explanation: Prototypes are used to flesh out the detailed design. Difficulty: 1 Easy Topic: Product/Process Design and Development Learning Objective: 04-03 Describe new product/process design and development objectives and project phases. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

21) Cross-functional integration is needed in innovation projects because: A) All functions have a stake in the success of a new product. B) It is cheaper to solve problems uncovered early in development. C) Process design decisions are dependent on product design decisions. D) All of these are correct. Answer: D Explanation: Cross-functional integration helps identify and solve problems earlier. Difficulty: 2 Medium Topic: Product/Process Design and Development Learning Objective: 04-04 Explain why cross-functional integration is needed in product and process design. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 22) The primary difference between integrated/concurrent engineering development and functional/sequential development is: A) Integrated development spends more money up front in order to save money in later stages. B) Sequential development is more thorough in addressing development steps. C) In sequential development, multiple functions comanage design and testing. D) Integrated development usually leads to higher sustaining and warranty costs. Answer: A Explanation: Integrated development brings multiple functions together in early development stages to identify and solve potential downstream problems. Difficulty: 2 Medium Topic: Product/Process Design and Development Learning Objective: 04-04 Explain why cross-functional integration is needed in product and process design. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

23) XYZ Corporation is using customer interviews and surveys to gather perceptions regarding new product concepts. This approach is known as: A) Quality function deployment. B) Beta testing. C) Voice of the customer. D) Failure modes and effects analysis. Answer: C Explanation: VOC is specifically oriented toward collecting detailed data on customers' perceptions and needs. Difficulty: 1 Easy Topic: Product/Process Design and Development Learning Objective: 04-05 Apply tools and techniques for integrating customer needs and supply chain considerations into product/process design and development. Bloom's: Remember AACSB: Technology Accessibility: Keyboard Navigation; Screen Reader Compatible 24) An FMEA estimates the risk priority number (RPN) for a given failure mode to be 36. The occurrence rating is 3 and the severity rating is 3. Thus, the undetectability rating is: A) 3 B) 4 C) 5 D) 6 Answer: B Explanation: RPN = Occurrence × Severity × Undetectability. Difficulty: 1 Easy Topic: Product/Process Design and Development Learning Objective: 04-05 Apply tools and techniques for integrating customer needs and supply chain considerations into product/process design and development. Bloom's: Remember AACSB: Analytical Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

25) What is the first step in conducting value engineering/value analysis? A) Estimate the value of each function in a product. B) Identify the functional purposes of a product. C) Compare the importance and cost of each function. D) Ask suppliers to provide cost information. Answer: B Explanation: Functions must be identified before they can be analyzed. Difficulty: 1 Easy Topic: Product/Process Design and Development Learning Objective: 04-05 Apply tools and techniques for integrating customer needs and supply chain considerations into product/process design and development. Bloom's: Remember AACSB: Technology Accessibility: Keyboard Navigation; Screen Reader Compatible 26) A management system that captures and shares all the information needed to define a product is: A) CAE B) PLM C) DFM D) 3D printing Answer: B Explanation: Product life cycle management systems store and organize customer preferences, design specifications, and other product data to support product development. Difficulty: 1 Easy Topic: Enabling Technologies for Product/Process Innovation Learning Objective: 04-05 Apply tools and techniques for integrating customer needs and supply chain considerations into product/process design and development. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

27) Understanding the product life cycle is important because: A) Innovation investments need to be matched to the phase of a product's life B) All products follow the same pattern of innovation C) Major process innovations typically occur in the growth stage D) The time between product launch and decline is typically very long Answer: A Explanation: The amount and type of innovation that a firm does depends on whether the product is in a launch, growth, maturity, or decline stage. Difficulty: 2 Medium Topic: The Role of Product/Process Innovation in Supply Chain Operations Management Learning Objective: 04-01 Explain why product/process innovation is an important contributor to a firm's performance. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 28) Why is product/process innovation an important driver of firm performance? A) Innovative firms typically have stronger brands B) Product design decisions largely affect supply chain costs C) Strong innovators can respond to market opportunities faster D) All of these are reasons why innovation drives firm performance Answer: D Explanation: Over the long term, innovation is the engine of growth and profits for firms. Difficulty: 2 Medium Topic: The Role of Product/Process Innovation in Supply Chain Operations Management Learning Objective: 04-01 Explain why product/process innovation is an important contributor to a firm's performance. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

29) What attributes are important measures of a firm's innovative prowess? A) Speed, quality, and efficiency of innovation B) The "wow" factor of innovation C) The ability to imitate as well as innovate D) Relentless pursuit of perfection Answer: A Explanation: Innovative firms have well-defined, well-executed processes to manage innovation projects. Difficulty: 2 Medium Topic: The Role of Product/Process Innovation in Supply Chain Operations Management Learning Objective: 04-01 Explain why product/process innovation is an important contributor to a firm's performance. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 30) "Crowdsourcing" is: A) A way to design products that satisfy the largest number of people B) A way to get ideas or services from a large number of sources, usually online C) Not used for process innovation, mostly only for product innovation D) A way to identify and hire the best and brightest new employees Answer: B Explanation: Crowdsourcing solicits inputs from many different sources outside the firm, efficiently. It is a type of "open innovation." Difficulty: 2 Medium Topic: Operational Product/Process Innovation Competencies Learning Objective: 04-03 Describe new product/process design and development objectives and project phases. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

31) One of the most important benefits of crowdsourcing from customers is: A) It maintains secrecy of new product ideas B) Customers almost always have the best new product ideas C) Competitors are not likely to be able to match innovations generated from customer inputs D) Customers gain a sense of engagement and ownership of new products Answer: D Explanation: Crowdsourcing involves customers directly in new product development, giving them a sense of ownership. Difficulty: 3 Hard Topic: Operational Product/Process Innovation Competencies Learning Objective: 04-03 Describe new product/process design and development objectives and project phases. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 32) Operations managers view innovation as a "funnel" because: A) Small ideas grow to become broad new strategies B) It often takes many new ideas to yield a few really good innovations C) Good innovators invest in as many new projects as they can afford D) Innovation means launching many new products so that the market can sort out the winners and losers Answer: B Explanation: Innovation is the process of finding and developing a wide range of new ideas and opportunities, evaluating them, and pursuing the few most promising ones. Difficulty: 2 Medium Topic: Operational Product/Process Innovation Competencies Learning Objective: 04-03 Describe new product/process design and development objectives and project phases. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

33) Which of the following statements is true regarding innovation portfolio planning? A) Each innovation project should be evaluated on its own merits, independent of other projects a firm is pursuing B) Product enhancement projects typically require greater resource investments than platform development projects do C) Operations managers play different roles on different types of innovation projects D) In order to be fair, all innovation projects should be assessed using the same metrics Answer: C Explanation: Operations managers can play leading or supporting roles in innovation, depending on the nature of the project. Difficulty: 2 Medium Topic: Operational Product/Process Innovation Competencies Learning Objective: 04-02 Contrast different types of innovation strategies and projects. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 34) The main benefit of a stage-gate process for product development is that it: A) Is faster B) Helps to reduce risk C) Allows for greater parallel processing of development stages D) Reduces management overhead costs Answer: B Explanation: A stage-gate process requires management evaluation and go/no-go decisions near the end of each stage, thus imposing a disciplined scrutiny and identification of risks many times throughout the life of the innovation project. Difficulty: 3 Hard Topic: Product/Process Design and Development Learning Objective: 04-03 Describe new product/process design and development objectives and project phases. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

35) If you want to minimize up-front development costs in a new product development and launch project, which approach would you use? A) Concurrent engineering B) Product life cycle management C) Sequential product development D) Quality function deployment Answer: C Explanation: Functional/sequential product development postpones up-front process development until product design and development are mostly complete. Difficulty: 3 Hard Topic: Product/Process Design and Development Learning Objective: 04-03 Describe new product/process design and development objectives and project phases. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 36) The main benefit of integrated/concurrent product development is: A) Faster product development B) Earlier problem solving C) Reduced launch and production costs D) All of these are benefits Answer: D Explanation: By overlapping and integrating product and process development, time is saved due to parallel work and lowered redesign, and production problems are identified and fixed while the product design is still malleable. Difficulty: 3 Hard Topic: Product/Process Design and Development Learning Objective: 04-03 Describe new product/process design and development objectives and project phases. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

37) A system that enables 3D modeling and evaluation of product designs without the cost of producing physical parts is: A) 3D printing B) CAD/CAE C) QFD D) Group technology Answer: B Explanation: Computer-aided design and engineering systems enable designers to electronically model parts and simulate how they will fit and work together in product assemblies, and how they will be produced in manufacturing systems. Difficulty: 2 Medium Topic: Enabling Technologies for Product/Process Innovation Learning Objective: 04-05 Apply tools and techniques for integrating customer needs and supply chain considerations into product/process design and development. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 38) A technology that produces prototypes quickly without the cost of production tooling is: A) 3D printing B) CAD/CAE C) VOC D) Group technology Answer: A Explanation: 3D printing (aka additive manufacturing) uses welding processes to rapidly build a physical prototype. Difficulty: 2 Medium Topic: Enabling Technologies for Product/Process Innovation Learning Objective: 04-05 Apply tools and techniques for integrating customer needs and supply chain considerations into product/process design and development. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

39) Suppose that you want to develop a product that can easily be configured in a wide variety of ways. What design approach would be best? A) Component standardization B) FMEA C) VOC D) Modular product design Answer: D Explanation: Modular design enables a wide range of product configurations to be built from a small number of different product platforms by switching product modules in and out. Difficulty: 3 Hard Topic: Product/Process Design and Development Learning Objective: 04-05 Apply tools and techniques for integrating customer needs and supply chain considerations into product/process design and development. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 40) A FMEA analysis shows that, for a given failure mode, the severity is 5, the occurrence is 3, and the undetectability is 2. The risk priority number (RPN) for this mode is: A) 10 B) 5 C) 30 D) 16 Answer: C Explanation: RPN = severity × occurrence × undetectability Difficulty: 3 Hard Topic: Product/Process Design and Development Learning Objective: 04-05 Apply tools and techniques for integrating customer needs and supply chain considerations into product/process design and development. Bloom's: Apply AACSB: Analytical Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

41) "Design for X" is: A) A short way to say "design for excellence" B) An approach that ensures that customers' needs are met C) A collection of design approaches that address specific areas of supply chain management D) The same thing as design for manufacture Answer: C Explanation: Design for X is a collection of "design for" methods that help product designers address the constraints of various supply chain operations. Difficulty: 2 Medium Topic: Product/Process Design and Development Learning Objective: 04-05 Apply tools and techniques for integrating customer needs and supply chain considerations into product/process design and development. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 42) A product design approach that uses digital connectivity to deliver services is known as: A) Service platform B) Modular design C) Product platform D) Design for service Answer: A Explanation: A smartphone is a platform in that it is an assembly of modular components, both of hardware and software. It is also a service platform because it uses connectivity (through cellular or wi-fi or other networks) to deliver all kinds of services, many of which can be configured by the owner of the device. Difficulty: 1 Easy Topic: Product/Process Design and Development Learning Objective: 04-05 Apply tools and techniques for integrating customer needs and supply chain considerations into product/process design and development. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

43) Another way to think of how virtual reality is used in product development is: A) Virtual prototyping B) Augmented design C) Customer engagement D) 3D printing Answer: A Explanation: Virtual reality tools create opportunities for designers, customers, and others to interact with virtual products in realistic ways. In this way, virtual reality tools essentially create virtual prototypes. Difficulty: 2 Medium Topic: Product/Process Design and Development Learning Objective: 04-05 Apply tools and techniques for integrating customer needs and supply chain considerations into product/process design and development. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

Managing Ops Across the Supply Chain, 4e (Swink) Chapter 5 Manufacturing and Service Process Structures 1) Which of the following process structures can produce the widest variety of products? A) Job shop B) Repetitive process C) Continuous flow D) Batch operation Answer: A Explanation: Job shop processes produce the widest variety of process types. Difficulty: 1 Easy Topic: Process Structures Learning Objective: 05-01 Compare and contrast the seven process structures: project, job shop, batch, repetitive process, continuous process, mass customization, and cellular manufacturing. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 2) Which process type is not correctly matched with its descriptive characteristic? A) Project—high complexity B) Repetitive process—customized products C) Job shop—high flexibility D) Continuous flow—low-skilled workers Answer: B Explanation: Repetitive processes typically produce standardized products. The other choices are correct (see Table 5-1). Difficulty: 1 Easy Topic: Process Structures Learning Objective: 05-01 Compare and contrast the seven process structures: project, job shop, batch, repetitive process, continuous process, mass customization, and cellular manufacturing. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

3) Which of the following types of businesses would most likely use a batch process structure? A) Company that builds cruise ships. B) An automotive assembler such as Ford Motor Co. C) A glass beverage bottle manufacturer. D) A company that produces automobile seats. Answer: D Explanation: Automobile seats have moderate volumes and varieties considering such factors as differences in upholstery and thus would use a batch process (see Table 5-1). Difficulty: 2 Medium Topic: Process Structures Learning Objective: 05-01 Compare and contrast the seven process structures: project, job shop, batch, repetitive process, continuous process, mass customization, and cellular manufacturing. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 4) Wanda Corp. currently uses a job shop process. It wants to maintain the advantages of this but increase efficiency. Wanda should investigate: A) Cellular manufacturing. B) Job shop processes. C) Mass customization. D) Project process. Answer: A Explanation: Cellular manufacturing attempts to maintain flexibility of job shops but at lower costs. Difficulty: 1 Easy Topic: Process Structures Learning Objective: 05-01 Compare and contrast the seven process structures: project, job shop, batch, repetitive process, continuous process, mass customization, and cellular manufacturing. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

5) Zanda Corp. wants to have a process structure that has cost advantages similar to continuous or repetitive processes, but wants to produce greater variety than those processes normally allow. Zanda should consider: A) Cellular manufacturing. B) Job shop processes. C) Mass customization. D) Project process. Answer: C Explanation: Mass customization attempts to maintain cost advantages similar to continuous or repetitive processes, but allows a firm to produce greater variety than those processes normally allow. Difficulty: 2 Medium Topic: Process Structures Learning Objective: 05-01 Compare and contrast the seven process structures: project, job shop, batch, repetitive process, continuous process, mass customization, and cellular manufacturing. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 6) Jones Company has a make to order orientation. It most likely does NOT use: A) Continuous process structure. B) Cellular manufacturing process structure. C) Job shop process structure. D) Batch process structure. Answer: A Explanation: Continuous process structures are used for make to stock orientations. The others are primarily make to order. Difficulty: 2 Medium Topic: Process Structures Learning Objective: 05-01 Compare and contrast the seven process structures: project, job shop, batch, repetitive process, continuous process, mass customization, and cellular manufacturing. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

7) Companies with a make to stock orientation are most likely to use which of the following process structures? A) Mass customization B) Job shop C) Repetitive process D) They are likely to use any one of these process structures. Answer: C Explanation: Of the alternatives, only repetitive process applies to make to stock. The others are make or assemble to order. Difficulty: 1 Easy Topic: Process Structures Learning Objective: 05-01 Compare and contrast the seven process structures: project, job shop, batch, repetitive process, continuous process, mass customization, and cellular manufacturing. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 8) For which market orientation is accurately forecasting the amount of finished goods needed likely to be the most important for a firm's financial performance? A) Engineer to order B) Make to order C) Assemble to order D) Make to stock Answer: D Explanation: In a make to stock orientation, products are made in advance of actual customer orders and held in inventory. Thus, forecasting is critical to both costs and sales. Firms using the other orientations do not produce finished goods until after a customer order is received. Difficulty: 2 Medium Topic: Process Structures Learning Objective: 05-01 Compare and contrast the seven process structures: project, job shop, batch, repetitive process, continuous process, mass customization, and cellular manufacturing. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

9) Which of the following products is most likely to require an assemble to order market orientation? A) An upholstered sofa B) A mobile phone C) Shampoo D) A race car Answer: A Explanation: For an upholstered sofa requiring an assemble to order orientation, the premade frames are held in inventory but the fabric is not added until a customer order is placed. Sofas can also be make to stock. Difficulty: 2 Medium Topic: Process Structures Learning Objective: 05-01 Compare and contrast the seven process structures: project, job shop, batch, repetitive process, continuous process, mass customization, and cellular manufacturing. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 10) Choose the service type that is correctly matched with one of its key characteristics. A) Service factory—facilities and equipment represent a large proportion of total costs. B) Service shop—there is a low degree of customer interaction. C) Mass service—transactions are very varied from customer to customer. D) Professional service—transactions tend to be fairly standardized. Answer: A Explanation: A service factory requires high capital investment. The other descriptions are opposite of the reality. See Figure 5-3. Difficulty: 1 Easy Topic: Unique Aspects of Service Processes Learning Objective: 05-02 Compare and contrast the goals and challenges associated with a service factory, a mass service, a service shop, and a professional service. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

11) Which of the following is NOT considered to be part of the service process matrix? A) Customization B) Volume C) Customer interaction D) Labor intensity Answer: B Explanation: The degree of customization/customer interaction and labor/capital intensity form the axes of the service process matrix as shown in Figure 5-3. Difficulty: 1 Easy Topic: Unique Aspects of Service Processes Learning Objective: 05-02 Compare and contrast the goals and challenges associated with a service factory, a mass service, a service shop, and a professional service. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 12) Using technology such as self-checkouts in grocery stores to enable customers to complete the service delivery and transaction themselves is most commonly used for: A) Service factories. B) Service shops. C) Mass services. D) Professional services. Answer: C Explanation: Because there is moderate to low customization/customer interaction, meaning that large groups of customers have similar requirements, mass services technology can be used to create "self-services." This helps to reduce labor costs and can increase service availability for customers. Difficulty: 2 Medium Topic: Unique Aspects of Service Processes Learning Objective: 05-02 Compare and contrast the goals and challenges associated with a service factory, a mass service, a service shop, and a professional service. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

13) All of the following are potential benefits of decoupling front and back offices in service processes EXCEPT: A) Standardization across multiple locations. B) Economies of scale. C) Use of remotely located back-office employees. D) Easier customization of services. Answer: D Explanation: Decoupling allows for back-office work to be done at a remote centralized location, allowing for standardization and economies of scale. Decoupling may actually reduce the ability to customize services. Difficulty: 2 Medium Topic: Unique Aspects of Service Processes Learning Objective: 05-02 Compare and contrast the goals and challenges associated with a service factory, a mass service, a service shop, and a professional service. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible 14) Ensuring that all the right people, equipment, and materials arrive on time is especially challenging when using which layout? A) Fixed-position layout B) Functional layout C) Service factory layout D) Product layout Answer: A Explanation: In a fixed-position layout, all of the necessary resources must come to the work site. Difficulty: 1 Easy Topic: Operations Layout Learning Objective: 05-03 Describe how each of the operations layouts-fixed-position, functional, product, and cellular-is designed to meet the demands placed on it. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation; Screen Reader Compatible

11) From an operations standpoint, sustainability means that: A) Profit is not an important goal. B) A company should focus its efforts on reducing pollution. C) Firms should pursue profit without damaging the environment or the well-being of future generations. D) The firm must improve how it manages its people resources since these are important to the long-term survival of the firm. Answer: C Explanation: Profit is critical to a firm's existence. Simultaneously, the firm must not damage the environment or impair the well-being of future generations. Difficulty: 1 Easy Topic: The Third P—Profit and Long-Term Competitive Advantage Learning Objective: 16-05 Understand the challenges operations managers face as they seek to develop and maintain a sustainable competitive advantage. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 12) How does lean systems thinking in operations management relate to sustainability? A) Its focus on improving product quality. B) Its focus on delivering products to customers faster. C) Its focus on reducing waste of all types. D) Its focus on product innovation. Answer: C Explanation: Lean systems reduce waste within an operation. Sustainability includes environmental impacts as waste generated over a product's life cycle. Difficulty: 1 Easy Topic: The First P—Planet Learning Objective: 16-03 Evaluate products using life cycle assessment. Bloom's: Understand AACSB: Reflective Thinking Accessibility: Keyboard Navigation

13) A specific analysis of the total greenhouse gases caused directly or indirectly by a product is called: A) Carbon footprinting. B) Life cycle analysis. C) Life cycle waste assessment matrix. D) Cap and trade. Answer: A Explanation: The carbon footprint of a product is the total set of greenhouse gas emissions caused directly or indirectly by a product. Difficulty: 1 Easy Topic: The First P—Planet Learning Objective: 16-03 Evaluate products using life cycle assessment. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 14) The following environmentally responsible process/material matrix was developed for Zanda Corp. Zanda has determined that a score of 40 is its goal at this time, but efforts to lower its score will continue regardless. What is Zanda's current score, and what is your conclusion?

Resource Extraction Manufacture Prod./Pkg./Trans. Product Use Disp./Recycle

Material Choice 3 1 0 2 2

Energy Choice 2 1 3 2 1

Solid Residue 4 1 1 2 3

Liquid Residue 2 2 2 1 3

Gaseous Residue 1 2 2 1 3

A) 53, Zanda is doing better than its goal. B) 53, Zanda is doing worse than its goal. C) 47, Zanda, is doing better than its goal. D) 47, Zanda is doing worse than its goal. Answer: D Explanation: The "score" on this matrix is the sum of the digits in the 25 cells, which is 47. The lower the score, the better. Zanda's goal is 40, so they are not meeting their goal. Difficulty: 2 Medium Topic: The First P—Planet Learning Objective: 16-03 Evaluate products using life cycle assessment. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation 15) The following environmentally responsible process/material matrix was developed for Zanda 7 Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Corp. Zanda has determined that a score of 50 is its goal at this time, but efforts to lower its score will continue regardless. What is Zanda's current score, and what is your conclusion?

Resource Extraction Manufacture Prod./Pkg./Trans. Product Use Disp./Recycle

Material Choice 3 1 0 2 2

Energy Choice 2 1 3 2 1

Solid Residue 4 1 1 2 3

Liquid Residue 2 2 2 1 3

Gaseous Residue 1 2 2 1 3

A) 47, and Zanda has met its goals—no further actions are necessary. B) 47, and Zanda has met its goal but should do something about solid residue during extraction. C) 53, and Zanda has not met its goals. D) 15, (from Manufacture & Prod/Pkg/Trans) and Zanda has met its goals—no further actions are necessary. Answer: B Explanation: The "score" on this matrix is the sum of the digits in the 25 cells which is 47. The lower the score, the better. Zanda's goal is 50, so they are meeting their goal. Zenda should strive to continuously improve environmental performance. One area to improve is solid residue during extraction. Difficulty: 2 Medium Topic: The First P—Planet Learning Objective: 16-03 Evaluate products using life cycle assessment. Bloom's: Understand AACSB: Analytical Thinking Accessibility: Keyboard Navigation

16) Walmart has announced that suppliers must attempt to improve their efforts in environmental management. In this announcement, Walmart could have included a requirement that suppliers meet the standards of: A) ISO 9000. B) ISO 2011. C) ISO 9002. D) ISO 14000. Answer: D Explanation: ISO 14000 is an international standard for environmental management which ensures that a certified firm has a formal environmental management system. Difficulty: 1 Easy Topic: The First P—Planet Learning Objective: 16-03 Evaluate products using life cycle assessment. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation 17) The "triple bottom line" suggests that efforts should be devoted to assessing the impact of activities on: A) People, profit, processes. B) Profit, profit, profit. C) People, planet, profit. D) Profit, planet, processes. Answer: C Explanation: The triple bottom line measures the impacts of the firm on the people, the planet, and profit. Difficulty: 1 Easy Topic: The Triple Bottom Line Learning Objective: 16-01 Define sustainability using the triple bottom line and explain what this approach means for operations and supply chain management. Bloom's: Remember AACSB: Reflective Thinking Accessibility: Keyboard Navigation