Chapter 9

Question 1

Operations Management

Answer 1

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.

Question 2

Process Management

Answer 2

is 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.

Question 3

Supply Chain Management

Answer 3

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.

Question 4

Product/Service Management

Answer 4

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.

Question 5

Value Maximization

Answer 5

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.

Question 6

Primary Activities

Answer 6

relate to the specific activities through which the development and transformation of a product or service occurs as it is produced and delivered to the marketplace.

Question 7

Inbound logistics

Answer 7

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.

Question 8

Operations

Answer 8

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.

Question 9

outbound logistics

Answer 9

refers to getting the finished product to the customer via a distribution channel that is accessible, convenient, and able to minimize stockouts and other sales impediment factors.

Question 10

marketing and sales

Answer 10

refers 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.

Question 11

customer service

Answer 11

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

Question 12

support activities

Answer 12

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.

Question 13

operations cycle

Answer 13

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 success.

Question 14

process standardization

Answer 14

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

Question 15

process simplification

Answer 15

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

Question 16

process design, layout, and execution

Answer 16

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

Question 17

PERT chart

Answer 17

is a scheduling methodolgy 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.

Question 18

Gantt Chart

Answer 18

is a methodology used to schedule the steps associated with a project and the time required to complete each step.

Question 19

Materials management

Answer 19

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.

Question 20

Facility design and layout

Answer 20

refers to infrastructure layout and related facility components that will be required to house and support the processes and materials used by the organization.

Question 21

capacity

Answer 21

refers to the maximum amount of product that can be produced, or services delivered, given facility, equipment, and process constraints.

Question 22

capital asset evaluation and acquisition

Answer 22

refers to an assessment by the operations management team of the state of current capital assets and a determination as to their applicability to meeting the needs of the organization.

Question 23

supply chain management

Answer 23

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

Question 24

supply chain operating execution

Answer 24

refers to the execution of the specific tasks necessary to ensure that key performance results are achieved.

Question 25

supply chain performance evaluation

Answer 25

refers to the critical outcomes that the supply chain must achieve in support of the organization’s overall operating performance.

Question 26

cash operating cycle (COC)

Answer 26

refers to the amount of time it takes for an organization to recover the cash (product is sold and money is received) it has paid out for the development, production and distribution of products.

Question 27

ISO (International Organization for Standardization)

Answer 27

is the world’s largest developer and publisher of international standards.

Question 28

six sigma

Answer 28

is a methodology that focuses on a philosophy of total improvement.

Question 29

TQM (Total Quality Management)

Answer 29

is a broad-based approach to managing quality within the organization

Question 30

three areas of responsibility for operations managers

Answer 30

are process management, supply chain management, and product/service management.

Question 31

Decisions for operations managers

Answer 31

are process, materials, facility layout, asset management, and supply chain planning, execution and performance monitoring.

Question 32

Tools used to establish quality standards

Answer 32

are ISO certification, the use of Six Sigma, and TQM methodologies, the identification of quality impact factors and the managerial competencies required for the successful implementation of quality initiatives.