1) A business is defined by its structural and infrastructural elements.
T F
True
A mechanism that identifies a firm’s targeted customers and sets time frames and performance objectives for the business is called a mission statement.
T F
False
The vision statement addresses a company’s reason for existence, core values, and domain.
T F
False
4) As long as each functional area in a company operates efficiently, their strategies can be very different.
T F
False
5) In general, core competencies make excellent strategies.
T F
True
The operations and supply chain strategy is a functional strategy that is, by definition, an infrastructural strategy.
T F
False
7) Conformance quality addresses whether the product was made or the service performed to specifications.
T F
True
8) If a logistics firm consistently makes deliveries within the agreed upon delivery window, they are exhibiting delivery reliability.
T F
True
9) Changeover flexibility refers to the ability of a company to change production quickly from one product to another, thereby producing a wide range of products.
T F
False
10) Volume flexibility is the term used to describe the ability of a producer to produce a dazzling array of products or services.
T F
False
11) Darrell and Dave were fierce competitors, which drove both of them to overpay for many of their inputs, resulting in increased prices at their own stores. Dave realized this, and pondered how he could be recognized as a cost leader by his customers and maintain his reputation for quality merchandise. Sacrificing one element of his strategy at the expense of another is recognized as a trade-off in operations management.
T F
True
12) “I’ve never seen flavored marshmallows this size before!” Alice squealed as she emptied the shelves at the local grocery store. The rest of the shoppers would have to make do with the other seventy bags of miniature and standard-size marshmallows during this winter’s hot chocolate festival. For Alice, the jumbo size feature is an order winner.
T F
True
Your employer prepares a request for proposal that describes in vivid detail all of the capabilities that a new computer system should possess. Software vendors with products that meet this request for proposal can be described as order qualifiers.
T F
True
14) In the internally supportive stage of business strategy alignment, management merely attempts to minimize negative potential in the operations and supply chain area.
T F
False
15) You decide to open a bookstore with a wide selection, comfortable seating, and internal coffee shop because it has worked very well for other bookstores you have visited. Your strategy could be described as externally neutral.
T F
True
16) The externally supportive stage of alignment is more desirable than the externally neutral stage of alignment.
T F
True
17) The phrase “closing the loop” means that strengths and weaknesses, as well as core competencies, are fed back into the mission statement.
T F
False
18) Structural elements of a business include:
A policies.
B people.
C decision rules.
D computer systems.
D computer systems.
19) __ is an example of an infrastructural element.
A) A building
B) An organizational structure
C) Office equipment
D) A fleet of delivery trucks
B) An organizational structure
20) The firm’s targeted customers, time frames, and performance objectives are identified by their:
A) mission statement.
B) core competencies.
C) business strategy.
D) functional strategy.
C) business strategy.
21) Which of the following statements about functional strategy is BEST?
A) Functional strategies are not impacted by the mission statement; instead they are impacted by the overall business strategy.
B) Functional strategies determine the overall business strategy.
C) Many functional-level strategies could readily be described as cross-functional.
D) A firm’s operations and supply chain strategy is more important than their marketing, finance and engineering strategies.
C) Many functional-level strategies could readily be described as cross-functional.
No one could turn around a failing restaurant as expertly as Gordon, whose experience and cadre of trained professionals was available at a moment’s notice should his services be needed. This ability, some might call it a gift, was developed to such a level that other restaurant consultants were unable to match his results. This ability is best described as his:
A) business strategy.
B) core competency.
C) mission statement.
D) operations and supply chain strategy.
D) operations and supply chain strategy.
23) Which of these is NOT one of the primary objectives of an operations and supply chain strategy?
A) to help management choose the right mix of structural and infrastructural elements, based on a clear understanding of the performance dimensions valued by customers and the trade-offs involved
B) to ensure that the firm’s structural and infrastructural choices are strategically aligned with the firm’s business strategy
C) to support the development of core competencies in the firm’s operations and supply chains
D) to align structural and infrastructural elements to convert order winners into order qualifiers as determined by the mission statement
D) to align structural and infrastructural elements to convert order winners into order qualifiers as determined by the mission statement
24) Damron Inc., wants to purchase a shear for their sheet metal shop and chooses dimensions of cost, reliability, and flexibility as critical to their long-term success. They evaluate three different shears and rate their performance on each criterion on a scale from 1 (poor) to 5 (excellent). What is the value index for the shear made by Belsky Manufacturing?
Dimension
Importance Belsky Mfg. Reber Ind. Floyd Co.
Cost 4 1 5 3
Reliability 2 5 2 1
Flexibility 3 3 3 4
A) 9
B) 18
C) 23
D) 81
C) 23
25) Damron Inc., wants to purchase a shear for their sheet metal shop and chooses dimensions of cost, reliability, and flexibility as critical to their long-term success. They evaluate four different shears and rate their performance on each criterion on a scale from 1 (poor) to 5 (excellent). Which shear should be purchased?
Dimension Importance Belsky Mfg. Reber Ind. Estelle LLC Floyd Co.
Cost 4 4 4 3 3
Reliability 2 3 2 3 1
Flexibility 3 2 3 3 4
A) Belsky
B) Reber
C) Estelle
D) Floyd
B) Reber
26) Which of the following is NOT a generic performance dimension of operations and supply chain activities?
A) quality
B) time
C) flexibility
D) social responsibility
D) social responsibility
27) Whether the product was made or service performed to specifications is a question of:
A) conformance quality.
B) performance quality.
C) reliability quality.
D) value indices.
A) conformance quality.
28) Which of these statements about time performance is BEST?
A) A supplier with high delivery speed must have high delivery reliability.
B) A customer with a narrow delivery window should have a supplier with high delivery reliability.
C) A supplier with low delivery reliability must have low delivery speed.
D) A customer with a wide delivery window should have a supplier with low delivery reliability.
B) A customer with a narrow delivery window should have a supplier with high delivery reliability.
29) The ability to produce a wide range of products or service is:
A) mix flexibility.
B) changeover flexibility.
C) volume flexibility.
D) run flexibility.
A) mix flexibility.
30) Mutt’s Amazing Dogs offers a hot dog with mustard and a hot dog with relish and mustard. The difference between the two (the relish) is achieved by flipping a single lever, which changes the dispenser from mustard, to a perfectly proportioned mix of relish and mustard. This lever responds instantly to the feathery touch of Mutt, who has achieved a high level of:
A) mix flexibility.
B) volume flexibility.
C) delivery flexibility.
D) changeover flexibility.
D) changeover flexibility.
31) Performance dimensions on which customers expect a minimum level of performance are called:
A) order winners.
B) minimum performers.
C) recommended daily allowances.
D) order qualifiers.
D) order qualifiers.
The latex division of Vandelay Industries provided support after the sale that could not be matched by any of the other players in the latex industry. This unique attribute was responsible for perhaps 60% of their sales volume and could be described as:
A) a trade-off.
B) a core competency.
C) an order winner.
D) externally neutral.
C) an order winner.
33) When the operations and supply chain areas are not linked with the overall business strategy, but instead follow industry practices, the firm is in this stage of alignment.
A) internally neutral
B) externally neutral
C) internally supportive
D) externally supportive
B) externally neutral
34) Before firms can progress to the fourth stage of alignment, they must:
A) develop core competencies.
B) develop a new mission statement.
C) develop order winners.
D) abandon order qualifiers.
A) develop core competencies.
35) Closing the loop in the area of business strategy means that:
A) core competencies at the functional level feed back into the business strategy.
B) the mission statement is used to develop the business strategy.
C) the business strategy is translated into operations and supply chain actions.
D) other functional strategies, such as those of the marketing and finance functions are aligned with the operations and supply chain strategy.
A) core competencies at the functional level feed back into the business strategy.
