IA Knowledge III

Question 1

Consists of raw materials that have been only partly transformed into their finished state or components that have not been installed or connected.

Answer 1

Work-in-process (WIP)

Question 2

A systems management philosophy that states that every system has at least one constraint (bottleneck or barrier) limiting its output in pursuit of some goal.

Answer 2

Theory of constraints (TOC)

Question 3

A circumstance where an organization owns and controls several different subsidiaries to promote cost and efficiency benefits.

Answer 3

Vertical integration

Question 4

The number of employees who report to an individual in the chain of command.

Answer 4

Span of control

Question 5

A global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash.

Answer 5

Supply chain

Question 6

Two-dimensional graphic representations of an operation in terms of the flow of activity through a process using graphic elements to represent tasks, flow, and inventory (storage).

Answer 6

Process flowcharts

Question 7

A quality process improvement approach that focuses on the customer experience by reducing the number of defects in a process until they approach statistical insignificance.

Answer 7

Six Sigma

Question 8

An organization’s formal decision-making framework and its way of organizing authority, responsibilities, and performance activities.

Answer 8

Organizational structure

Question 9

A collection of analytical techniques that examine and measure the basic elements of processes in order to understand their activities, relationships, and contributions to organizational goals.

Answer 9

Process analysis

Question 10

An organizational structure that is a team and project-based approach between functions and divisions.

Answer 10

Matrix structure

Question 11

Commerce over mobile devices such as smart cell phones.

Answer 11

Mobile e-commerce

Question 12

A comprehensive manufacturing production and inventory control methodology in which materials arrive exactly as they are needed for each stage of the production process.

Answer 12

Just-in-time (JIT) manufacturing

Question 13

A global network used to deliver products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash.

Answer 13

Logistics network

Question 14

An organizational structure in which authority and decision-making are arranged by functional groups such as finance, marketing, manufacturing, and research.

Answer 14

Functional structure

Question 15

The management area that focuses on reducing the costs of holding and transporting inventory without sacrificing customer service.

Answer 15

Inventory management

Question 16

Products that are ready-to-wear, ready-to-eat, ready-to-drive, or ready-to-use and are waiting to be purchased.

Answer 16

Finished goods

Question 17

A graphical representation of the actual or ideal path followed by any service or product; provides a visual sequence of the steps in a process, illustrates the relationship between parts, and identifies what the process does or should do.

Answer 17

Flowchart

Question 18

The transfer of monetary value and financial data from one bank to another.

Answer 18

Electronic funds transfer (EFT)

Question 19

A language used for Internet applications; it is accessible by any type of computer platform, allows new tags to be defined, has interactive elements, and eases interapplication communication.

Answer 19

Extensible markup language (XML)

Question 20

Conducting commercial activities over the Internet.

Answer 20

E-commerce

Question 21

An intercompany communication directly between applications in standard format.

Answer 21

Electronic data interchange (EDI)

Question 22

An organizational structure for grouping work into specialized units and jobs.

Answer 22

Departmentalization

Question 23

Organizational structure in which divisions are fairly autonomous units.

Answer 23

Divisional structure

Question 24

The attitude and actions of the board and management regarding the importance of control within the organization; provides the discipline and structure for the achievement of the primary objectives of the system of internal control.

Answer 24

Control environment

Question 25

An organizational structure in which there are fewer levels of authority, a shorter chain of command, and a wider span of control.

Answer 25

Decentralized structure

Question 26

The line of authority in an organization.

Answer 26

Chain of command

Question 27

A manufacturing system that completely integrates all factory and office functions within an organization throughout the life cycle of a product or service.

Answer 27

Computer-integrated manufacturing (CIM)

Question 28

The maximum rate of output generated by a process.

Answer 28

Capacity

Question 29

An organizational structure in which there are several levels of authority, a long chain of command, and a narrower span of control.

Answer 29

Centralized structure

Question 30

Marketing and selling products to customers online.

Answer 30

Business-to-consumer (B2C) e-commerce

Question 31

An online tool set for employees.

Answer 31

Business-to-employee (B2E) e-commerce

Question 32

A fundamental rethinking of business processes in order to achieve improvements in cost, quality, service, and speed.

Answer 32

Business process reengineering (BPR)

Question 33

Any direct link between businesses and the use of online business marketplaces, such as EDI or online catalogs.

Answer 33

Business-to-business (B2B) e-commerce

Question 34

A method of electronic funds transfer that sends payments in batches.

Answer 34

Automated clearing house (ACH)

Question 35

A limiting factor, barrier, or constraint that slows down a product’s total cycle time.

Answer 35

Bottleneck