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The key to effective job design in a value chain organization is _________.


A) structure
B) strategy
C) flexibility
D) innovation
E) specialization

F) B) and E)
G) All of the above

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Productivity is a composite of __________ and operational variables.


A) capital
B) people
C) materials
D) technology
E) information

F) A) and D)
G) C) and D)

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_____ organization produces nonphysical outputs.


A) manufacturing
B) service
C) organic
D) mechanistic
E) high technology

F) A) and B)
G) A) and D)

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The __________ chain is the entire series of organizational work activities that add value at each step beginning with the processing of raw materials and ending with finished product in the hands of end users.


A) supply
B) value
C) transformation
D) profit
E) quality

F) A) and E)
G) A) and D)

Correct Answer

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In managing the internal value chain, organizational leaders should clarify role expectations for ____________ as well as for ___________________.


A) departments; supervisors
B) employees; external partners
C) internal partners; suppliers
D) suppliers; investors
E) employees; departments

F) C) and E)
G) C) and D)

Correct Answer

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For the value chain to achieve its goal of exceeding customers' needs, __________ must be developed.


A) collaborative relationships
B) new products and services
C) technology applications
D) policies and regulations
E) statistical controls

F) D) and E)
G) C) and D)

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____________ is one important benefit of value chain management for manufacturers.


A) Employee loyalty
B) Internal innovation
C) Performance standards improvement
D) Improved procurement
E) Six sigma

F) A) and D)
G) A) and C)

Correct Answer

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Refer to the scenario below to answer the following questions. TopCup Coffee (Scenario) Catrina has been working as a manager in TopCup Coffee for six months now. In that time she has noticed that the total sales have grown a scant half percent. The owner, who does not work in the business directly, commented in a recent meeting that unless the sales picked up over the next six months, he would consider closing the business. Catrina has since looked seriously into the operations and armed with a textbook on operations management from her college days, she is determined to change both the coffee shop operations and the sales picture. -Catrina knows from her course in operations management that when the employees have all the required knowledge and tools they will be able to ___________.


A) direct any problems away from each other
B) improve the flow of materials in the shop
C) send an important message to the owner
D) work slow and steady at all times
E) collect more tips and possibly a bonus

F) A) and B)
G) A) and C)

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Operations management plays a strategic role in an organization's competitive success.

A) True
B) False

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All organizations produce goods or services through a(n) ________ process.


A) transformation
B) engineering
C) manufacturing
D) attenuation
E) service

F) B) and C)
G) C) and D)

Correct Answer

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Refer to the scenario below to answer the following questions. Quality and Mass Customization (Scenario) Upon graduating from college, Steve Jungman began his career as a management trainee at Felcher & Sons Inc., a manufacturer of mid-priced office furniture. The firm has recently decided to expand overseas with manufacturing plants in Singapore and Thailand and sales offices in the Asia, Europe, and Australia. In conjunction with this investment in new plants and technologies, the firm plans develop an online presence that will enable customers to individually tailor the products they order from Felcher & Sons. Terry Tate, VP of operations for Felcher & Sons, is overseeing the development of these plants and the new production capabilities. Mr. Tate has asked that Steve be assigned to help him in this process. -Steve tells Mr. Tate that he is excited to be working with him on this project. While he was in school, he did a research project on __________, which allows customers to tailor manufactured products to their individual specifications.


A) mass personalization
B) mass customization
C) design to order manufacturing
D) single target manufacturing
E) custom market production

F) A) and C)
G) A) and E)

Correct Answer

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Which of the following best describes organizational processes?


A) the type of technology utilized
B) the way organizational work is done
C) organizational goals and objectives
D) strategy implementation
E) policies and procedures

F) C) and D)
G) A) and B)

Correct Answer

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Which of the following statements is true about organizational productivity for individual organizations?


A) Productivity is less significant for people-oriented organizations.
B) Employees wages stagnate if the productivity is high.
C) High productivity provides a competitive cost structure to organizations.
D) High productivity would lead to increased profits and inflation.
E) Productivity only impacts manufacturing operations.

F) A) and B)
G) B) and E)

Correct Answer

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Refer to the scenario below to answer the following questions. Quality or Not? (Scenario) On Monday, the big news arrived. Top managers at Bob's company announced they would be implementing a new productivity improvement program. Their goals, they said, were to "plan for the now, impress shareholders, and use the program to increase short-term profits. Those who don't agree can begin looking for a new job." Bob, along with everyone else, grumbled under his breath. What in the world was top management thinking? Their "zero quality defects" program had failed and now they were jumping on this new bandwagon. Training was nonexistent in the company, and managers were fond of pushing responsibility for these programs down to the lowest level. Top management was not happy with the quality of the product, and now they wanted total quality concerning the employees too. At lunch, Bob read the notice board, which said, "Statistical process control classes will begin immediately, see your supervisor for a training date." Bob sighed and wondered what fad was next. -Although Bob was pleased to see the notice about the new training program, he was not sure that learning about statistical processes was the knowledge employees needed. But, he reasoned, any training would help make the employees __________.


A) more flexible
B) comply with the new goals
C) come to work on time
D) focus on minimizing waste
E) expect pay raises

F) A) and E)
G) A) and D)

Correct Answer

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Which of the following statements about operations management is the most accurate?


A) It refers to the transformation process that converts resources into finished goods and services.
B) People and technology are inputs to an operations system whereas information is an output.
C) Operations management is more significant in manufacturing industry than services industry.
D) Radical changes are required in the business processes to establish effective operations management.

E) A) and B)
F) A) and D)

Correct Answer

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Value chain management is internally oriented and focuses on efficient flow of incoming materials to the organization.

A) True
B) False

Correct Answer

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Refer to the scenario below to answer the following questions. Quality and Mass Customization (Scenario) Upon graduating from college, Steve Jungman began his career as a management trainee at Felcher & Sons Inc., a manufacturer of mid-priced office furniture. The firm has recently decided to expand overseas with manufacturing plants in Singapore and Thailand and sales offices in the Asia, Europe, and Australia. In conjunction with this investment in new plants and technologies, the firm plans develop an online presence that will enable customers to individually tailor the products they order from Felcher & Sons. Terry Tate, VP of operations for Felcher & Sons, is overseeing the development of these plants and the new production capabilities. Mr. Tate has asked that Steve be assigned to help him in this process. -Tate asks Steve to research other companies that use technology to maintain a dialogue with their customers. Steve discovers that Amazon.ca uses its website to __________.


A) collect financial information about its customers
B) survey customers and provide product preference information to its partner companies
C) attract more customers through viral marketing techniques
D) promote products that the customer would not normally purchase
E) greet customers by name and offer personalized recommendations of products

F) None of the above
G) A) and C)

Correct Answer

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Jack works for Synergy Today Inc. as a customer service representative. He is usually asked to take on other responsibilities such as packaging customer orders or checking the quality of the widgets that come from the factory. In order to be able to take on these additional responsibilities, he has asked his manager to ____________.


A) give him a raise
B) provide some extra training
C) allow him to share the work with another employee
D) re-work the processes to make the work easier
E) relax the productivity targets

F) A) and E)
G) A) and D)

Correct Answer

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In its entirety, the value chain can encompass everything from the supplier's suppliers to the customer's customers.

A) True
B) False

Correct Answer

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As part of refreshing her memory on operations management, Catrina analyzes value chains, and the requirements that are necessary for adopting a successful value chain strategy. She recognizes that the main goal of managing a value chain is to _________________.


A) meet and exceed customers' needs
B) improve the profit situation of the company
C) make investors and owners happy
D) ensure trained and knowledgeable employees
E) implement the most up-to-date technology available

F) A) and D)
G) A) and C)

Correct Answer

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