What are the key decisions made by sourcing and logistics managers?
Decisions of sourcing managers focus on acquiring material and service inputs;
... [Show More] decisions of logistics managers focus on the movement of goods and/or services.
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The key decisions made by sourcing managers relate to the sourcing function which sources inputs into the transformation process of the organization from other for-profit and nonprofit organizations. This might include finding the best suppliers, as well on ongoing sourcing of inputs from those suppliers. In contrast, logistics managers make decisions relating to the logistic functions which are typically responsible for the movement of goods and/or services across organizations. This could include arranging for transportation of goods and tracking of the locations of materials.
Why is operations management a more encompassing term than production management?
Operations management refers to service as well as manufacturing organizations.
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Production management was changed to operations management to include services.
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Which function is responsible for the actual movement of goods and/or services across organizations?
Logistics
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Logistics is responsible for the movement of goods / services.
The essence of operations management can be described by
decisions, function, and process.
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Operations decisions, operations as a function, and process orientation are the heart of operations.
Supply chain management includes the integration of
Suppliers, manufacturers, and customers.
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SCM starts with raw material suppliers, includes the transformation process, and extends to ultimate customers, all integrated for highest performance.
The four elements that form the heart of operations strategy include
Mission, distinctive competence, objectives, and strategic decisions.
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Operations strategy is defined by these four subcategories (see Figure 2.1).
T or F: Business strategy can be derived from a firm's distinctive competence that is difficult for competitors to copy or imitate.
True
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The arrow between business strategy and operations strategy goes both ways, indicating that business strategy can be influenced by a distinctive competence.
Which of the following statements concerning the relationship among corporate, business, and functional strategies is correct?
Corporate strategies guide the development of business strategies, which guide the development of functional strategies.
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The correct relationship is corporate strategy - business strategy - functional strategies (see Figure 2.1).
Supply chain strategy focuses, in part, on:
Sourcing and logistics, customers., and information flow.
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Supply chain strategy considers customers, suppliers, sourcing, logistics, and the flow of information across the chain.
In the product imitator strategy, the order winner is _____ for the customer, whereas in the product innovator strategy, the order winner is ______.
price, flexibility
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For the imitator strategy, the customer priority is price; it is flexibility for the innovator strategy.
Challenges facing operations and supply chain managers signify that:
every operation should be externally directed to meet the customers' requirements.
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"Every operation should be externally directed to meet the customers' requirements" is correct; increasing need to meet customer requirements is a current challenge.
What would be appropriate supply chain strategies for a manufacturer of a generic chicken soup?
1- Suppliers chosen on the basis of low cost
2- Suppliers chosen for their ability to reliably deliver
Suppliers chosen for the excess capacity they maintain would NOT be appropriate.
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Generic chicken soup is an imitative product, so choosing suppliers with excess capacity would not be likely.
Operations strategy is what type of strategy?
Functional strategy.
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Other functional strategies are required of marketing, finance, engineering, and so on.
Decision making using analytics is viewed as:
1- Prescriptive (use of mathematical models to optimize decisions).
2- Predictive (use of data to predict what is likely to happen).
3- Descriptive (use of data to summarize the present situation).
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Analytics can be descriptive, predictive, or prescriptive in nature.
In which phase of the new product design process should considerations about trade-offs among product cost, quality, and schedule be made?
Product design
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Product design requires consideration of many different trade-offs between product cost, quality, and schedule.
Quality Function Deployment (QFD)
1- is a tool for linking customer requirements to technical specifications.
2- facilitates interfunctional cooperation between marketing, engineering, and manufacturing.
3- relates engineering characteristics to each other.
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All of these choices are true of QFD.
T or F: Ideally, process design occurs immediately after the product is designed.
False.
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Ideally, process design occurs at the same time as product design.
What parts make up the new product development process?
1- Concept development
2- Product design
3- Pilot production/testing
Development of the marketing strategy IS NOT
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The three typical phases are concept development, product design, and pilot production/testing.
What is the proper role of the operations function in product design? Operations should be involved in the ______
1- Concept development
2- product design
3- pilot production/testing phase
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Operations should be involved in all stages of product design. Since the operations function has knowledge of production capabilities and how to use these capabilities in the most effective manner, they should interact with marketing and with engineering to ensure that the product will be designed with production needs considered.
Modular design involves
Dividing the products into their similar components.
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The core idea of modular design is to develop a series of basic product components, or modules, that can be assembled into a wide variety of finished products.
An example of a business/industry that uses batch flow and makes to stock is:
machine shop.
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Machine shop: Batch Flow/Makes to Stock
Oil: continuous
custom paintings: MTO
hospital: MTO.
The throughput ratio (TR) is the ratio of the total processing time for the job divided by:
total waiting time plus total processing time.
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The formula for throughput ratio is total processing time for the job divided by total time in operations.
T or F: Mass customization uses a make-to-stock process.
False.
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One of the essential aspects of mass customization is that products are not MTS, but ATO. Any customization required is done at the very last step, following the customer order.
What is most important when designing a new production process?
Pollution prevention
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Pollution prevention is important when designing NEW processes, while pollution control and pollution practices are more important to EXISTING processes.
T or F: In an assemble-to-order operation, the order penetration point is after fabrication and before final assembly.
True
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Correct. Customer orders determine the final assembly.
Which factors should a company consider while deciding on a certain process choice?
1- Capital requirements
2- labor
3- technology
4- market conditions.
Referring to the product-process matrix, if a company has a few major products with high demand and a jumbled flow (job shop) process, we know the company:
is further in its product life cycle than its process life cycle.
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A few major products combined with a job shop process indicate that the product has evolved faster than the process (a few major products suggest assembly line or possibly very large batch).
Which of the following is a common potential benefit of outsourcing services?
Increased ability to focus on core competencies.
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Potential upsides include lower costs and increased focus on core competencies; downsides include coordination costs and loss of control. Service outsourcing requires attention to both people and processes. Quality control can be more challenging and require additional mechanisms to ensure service quality.
What are general characteristics of a service?
1- Production and consumption are simultaneous.
2- No resale is possible.
3- The service cannot be stored.
The service can NOT be transported.
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Except for electricity and communications, services cannot be transported (though producers can be—see Table 5.1).
T or F: The customer is a part of the service delivery process and may introduce inefficiencies into the service delivery system.
True.
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As customer contact increases, so do variability and resulting inefficiencies.
T or F: Service guarantees are only for consumers outside the firm, and do not apply to internal customer relationships within a firm.
False.
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Service guarantees are valuable any time there is a service provider-customer relationship.
What are elements of a service product bundle?
1- Facilitating goods
2- Explicit service
3- Implicit service
Value of goods/service IS NOT an element
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Facilitating goods, explicit service, and implicit service are the three elements of the service product bundle.
The service profit chain shows that _____ is the direct link to profitability.
customer loyalty
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Customer satisfaction, customer contact, and employee productivity are elements, but it is customer loyalty that ultimately drives profitability. [Show Less]