Chapter 12

Question 1

Successful organizations understand the interconnectivity of

Answer 1

business structure
operations
strategy

Question 2

is the effective design, development, and management of the processes, procedures, and practices embedded within an organization’s business system for the purpose of achieving its strategic intent

Answer 2

operations management

Question 3

categories of responsibility in operations management

Answer 3

○ Supply chain management
○ Information technology-based operational analytics
○ Product/service management
○ Process management

Question 4

the design and development of the work flow and connectivity of the transformation requirements (processes) needed to ensure that an organization’s products and services are efficiently produced and effectively delivered to the marketplace

Answer 4

process management

Question 5

is the management of the interdependencies among suppliers, manufacturers, and distributors, it seeks to develop the terms and conditions that will enable all parties to efficiently and effectively meet their obligations to one another due to their business relationships

Answer 5

supply chain management

Question 6

refers to the variety of activities that commence with the design and development of potential new products in R&D and extend to the post-purchase support of products/services now in the hands of customers

Answer 6

product/service management

Question 7

refers to the assessment of historical, as well as predictive data in a way that enables the operations management team to actively manage the organization’s current and future operational needs

Answer 7

information-technology based operational analytics

Question 8

refers to maximizing the benefits (price/quality comparison) that an individual or set of customers will realize as a result of using a product or service

Answer 8

value maximization

Question 9

relate to the specific activities though which the development and transformation of a product or service occurs as it is produced and delivered to the marketplace
○ Inbound logistics, operations, outbound logistics, marketing and sales, customer service

Answer 9

primary activities

Question 10

refers to the management of supplier relationships relating to those parts and/or components, or finished products that are brought into the organization in order to produce finished products for delivery to the marketplace

Answer 10

inbound logistics

Question 11

refers to the manufacturing and/or product change processes set up to ensure that the final product the organization is manufacturing or handling is ready for the marketplace

Answer 11

operations

Question 12

refers to getting the finished product tot eh customer via a distribution channel that is accessible, convenient, and able to minimize stock outs and other sales impediment factors

Answer 12

outbound logistics

Question 13

efers to those activities that create profile and awareness for the organization’s products, services, or brand(s), and the benefits derived from the acquisition and use of such products or services

Answer 13

marketing and sales

Question 14

refers to the support provided to customers before, during, and following the purchase process

Answer 14

customer service

Question 15

are those areas within the organization that are not directly associated with the actual processes the organization uses to produce products and/or deliver services but that are an integral part of the support structure the primary activities rely on to successfully execute strategy
○ Includes: HR, R&D, Engineering, IT, Finance, Legal, Environmental Safety
• The successful execution of primary activities is facilitated by these

Answer 15

support activities

Question 16

is the alignment of the operational tasks within an organization by its management team in order to meet the strategic outcomes defined in the organization’s business strategy

Answer 16

operations cycle

Question 17

is the design and utilization of common platforms and common task sequencing to produce/develop a variety of products or services

Answer 17

process standardization

Question 18

is the design and utilization of a minimum number of tasks when developing products and/or services

Answer 18

process simplification

Question 19

four core decision areas of process management

Answer 19

○ Process design, layout, and execution
○ Materials management
○ Facility design and layout
○ Capital asset evaluation and acquisition

Question 20

refers to the assessment and implementation of the tasks necessary to get the required work accomplished, and how such tasks will be grouped and sequences to ensure that the most efficient and effective processes are utilized in the production of products and/or services

Answer 20

process design, layout, and execution

Question 21

is a scheduling methodology that focuses on task sequencing and the identification of the critical path of steps that will most greatly impact the ability to complete a project, and the length of time needed for completion

Answer 21

PERT chart

Question 22

is a methodology used to schedule the steps associated with a project and the time required to complete each step (looks like excel)

Answer 22

Gantt chart

Question 23

refers to the management of the inputs required in order to develop the products or services that the organization is intent on delivering to the marketplace

Answer 23

materials management

Question 24

refers to the development of the supply chain structure and the accumulation of the necessary information to make effective supply chain decisions

Answer 24

supply chain management

Question 25

a broad based approach to managing quality within the organization

Answer 25

TQM