Supply Management Exam 1

Exam 1 Study Guide Chapter 1 Questions 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 2. Functional strategic planning involves decisions related to: a. What businesses should we be in b. What specific product-and market-based initiatives and goals we should establish c. What metrics should be used to ensure progress in operations management d. All of these 3. A well designed value proposition possesses fur 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 it 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 4. Which of the following is the most appropriate definition of an “order winner”? a. A product characteristic that cases 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 5. Which of the following is considered a “process-related” competitive priority? a. Flexibility b. Quality c. Cost d. All of these 6. 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 7. 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 8. “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 9. A vice president of operations wants to evaluate the impact of reducing manufacturing expense of the firms return on assets. Which measurement should be examined? a. Cost of goods sold b. Asset turnover c. Net profit margin d. None of these 10. 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 11. 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 12. Which three elements make up the triple bottom line? a. Planet, Pollution, Profit b. Pollution, Equality, People c. Profit, Equality, People d. People, Profit, Planet 13. Which of the following attributes is directly related to fitness for consumption by a customer? a. Transaction price b. Timeliness c. Performance d. Availability 14. Under which component of the business model would people and culture fall? a. Key customer b. Value proposition c. Environment d. System capabilities 15. 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? Chapter 2 Questions 1. 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 2. 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 3. 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 4. 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 indicators to ensure inter-departmental worker compatibility d. Evaluate and increase manager salaries and benefits. 5. 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? Order Winners Order Qualifiers a. Cost, quality Speed, Flexibility 6. 7. 8. 9. 10. 11. b. Flexibility, Quality Speed, Cost c. Speed, Cost Flexibility, Quality d. Speed, Flexibility Quality, Cost 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? a. The only way to restore fit is for the firm to change the market segment it is going after b. Unless something is done, our firm will not be the most-effective and efficient long-term supplier. c. Any firm can successfully counter such inconsistencies through the use of patents and aggressive advertising. 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 statement c. Management mandates d. Corporate slogans and promotions materials. An electronics firm produces smart phones for sale to the worldwide market. One of the most crucial process-related competitive operational priorities for the firm is: a. Aesthetics b. Cyber Security c. Flexibility d. Durability 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 Decision making regarding customers and products os often led my the : a. CEO b. Board of Directors c. Marketing Management d. Financial Managers 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 Exam 1 Topics: Viasat (Guest Lecture): A company that has satellites in space. This is the way they put their products into the market place. They communicate down to people on earth through the satellites though planes, homes, or at sea They are rapidly expanding Industry 4.0 Shift from computers and automations to cyber physical systems Moving to a concept where there is a lot more automated information, where products and components will be adjusting on their own Current Supply Chain challenges Digitalization Sustainability Glocalization (Global & Local) Lack of talent with required technical soft skills Value is a balance of: Key customers Value proposition Capabilities A slow unraveling article review: Key Concepts: Tiers: Person we buy from Echelons: Who we sell to Total Cost of Ownership Total Product experience Purchasing/Procurement Logistics/distribution Stakeholders Customer Service Management