1. Randy told Rob that an effective hiring process is important to value chain management because ______________. a. value chain management requires highly experienced and knowledgeable employees b. flexible job designs require flexible people to fill them c. value chain management requires a diverse group of highly specialized employees d. employees need to have the knowledge and tools they need to do their jobs efficiently 2. Randy told Rob, “Organizational culture is also a very important component of value chain management. Those cultural attitudes include sharing, openness, respect, and trust, and these attitudes must encompass not only employees, but _______________ as well.” a. extend to management b. extend to customers c. extend to external partners d. their families 3. Randy wanted to convince Rob that the value chain was very important and practical. Randy briefly reviewed the results of a survey of manufacturers that had embarked on value chain management. Sharing the results of the survey with Rob, Randy indicated that ______________ was a benefit that companies reported on this survey. a. increased sales b. cost savings c. increased market share d. enhanced customer service order management 4. Rob asked Randy about the barriers commonly faced by organizations looking to implement value chain management. Randy replied that organizational barriers are among the most difficult for managers to reconcile. An example of such a barrier might include ______________. a. reluctance to share information b. mutual trust c. the belief that when an organization collaborates, it no longer controls its own destiny d. employees’ refusal to be flexible CURRENT ISSUES IN OPERATIONS MANAGEMENT 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 Far East, Europe, and Australia. In conjunction with this investment in new plants and technologies, the firm plans to 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, has been tasked with overseeing the development of these plants and new capabilities. Mr. Tate has asked that Steve be assigned to him to help him in this process. 5. 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 provides consumers with manufactured products that are tailored to their individual specifications. a. mass personalization b. mass customization c. design-to-order manufacturing d. one-to-one marketing 6. Mr. Tate and Steve have scheduled a site visit to a nearby Dell Computer’s assembly facility in order to see firsthand many of the technologies available to Felcher & Sons. Dell Computer uses technologies such as computer controlled factory equipment, industrial robots, bar code scanners, and logistics software that enable them to manufacture, assemble, and ship custom-designed computers in a very short time. Such technologies characterize _________, which give companies the ability to quickly readjust their assembly lines to make products to order. a. design-to-order manufacturing techniques b. new technological techniques c. flexible manufacturing techniques d. intellectual property techniques 7. Mr. Tate has been tasked with bringing these new plants into compliance with ISO 9000 standards. Mr. Tate asks Steve if he is familiar with ISO 9000. Steve admits that while he remembers hearing about it in school, he’s not 100 percent sure. Mr. Tate tells him that ISO 9000 is a _______________. a. quality standard that establishes a goal of no more than 3.4 defects per 10,000 units b. quality standard that establishes a goal of no more than 3.4 defects per 100,000 units c. quality standard that establishes a goal of no more than 3.4 defects per 1,000,000 units d. series of international quality management standards 8. Having been assigned to help Mr. Tate bring new plants into compliance with ISO 9000 standards, Steve asks Mr. Tate why obtaining ISO 9000 is so important to Felcher & Sons, Inc. Mr. Tate responds that ______________. a. this type of certification is a prerequisite for doing business internationally b. quality is often a big problem for overseas plants because labor is less highly skilled c. U.S. law requires manufacturers bring their operations into compliance by 2007 d. this quality goal establishes a goal of no more than 3.4 defects per million units or procedures ) 9. Having been assigned to help Mr. Tate bring new plants into compliance with ISO 9000 standards, Steve asks Mr. Tate whether there are many firms that have achieved ISO 9000 certification. Mr. Tate tells Steve that according to most recent figures he’d seen, the number of registered sites is about _____________. a. 100,000 b. 250,000 c. 670,000 d. 1,000,000 10. Mr. Tate and Steve attend a seminar put on by a Big 5 consulting firm with vast experience with ISO 9000 and an excellent reputation in implementing various quality-based initiatives. The speaker, John Dillon, begins by asking a question: “When you consider a product or service to have quality, what does that mean?” Quality is the ability of a product or service to _______________. a. reliably do what it is supposed to do b. exceed customer expectations c. provide value d. be flexible 11. Mr. Dillon tells the audience that firms, such as their client Rockwell Collins, have found that successful quality management programs tend to rely on two important approaches, cross-functional work teams and _________. a. managerial flexibility b. self-directed work teams c. ongoing employee education and training d. an overall learning orientation within the firm 12. After the presentation, Mr. Tate approaches John Dillon and asks him about his company’s experience with quality improvement efforts in overseas operations. Mr. Dillon tells Mr. Tate about the experience of one of his customers Delphi Automotive Systems Corporation. Mr. Dillon just returned from visiting their plant in Matamoros, Mexico, where Delphi had implemented a quality initiative. The Delphi plant was able to reduce their customer reject rate by almost ________________. a. 50 percent b. 100 percent c. 200 percent d. 300 percent 13. Mr. Tate tells John Dillon about Felcher & Sons, Inc.’s efforts to achieve ISO 9000 certification. He explains that the firm is pretty far along with this effort; quality control is an ongoing concern for Felcher & Sons, and he asks Mr. Dillon if there might be other quality management issues or trends that the consultant might be able to help them with. John Dillon tells them a little about Six Sigma. After the show, Steve asks Mr. Tate what Six Sigma stands for, and Mr. Tate replies that _________________. a. Sigma is the Greek letter statisticians use to define a standard deviation b. Six Sigma covers everything from contract review to product design to product delivery c. Six Sigma is a series of international quality management standards established by the International Organization for Standardization d. Six Sigma has become the internationally recognized standard for evaluating and comparing companies in the global marketplace Essay Questions WHAT IS OPERATIONS MANAGEMENT AND WHY IS IT IMPORTANT? 14. In a short essay, define operations management and briefly discuss the importance of this management process. 15. In a short essay, identify seven of Deming’s 14 points for improving management’s productivity. VALUE CHAIN MANAGEMENT 16. In a short essay, describe the goal of value chain management. 17. In a short essay, identify and explain the three main human resource requirements for value chain management. 18. In a short essay, list and discuss four obstacles that managers must deal with in managing the value chain. CURRENT ISSUES IN OPERATIONS MANAGEMENT 19. In a short essay, discuss technology’s role in manufacturing. 20. In a short essay, list and discuss the two best-known quality goals that many organizations worldwide have pursued. 21. Define the concept of mass customization and provide several relevant examples. Briefly discuss how technology is vital to the success of mass customization efforts.

1.
Randy told Rob that an effective hiring process is
important to value chain management because ______________.
a. value chain
management requires highly experienced and knowledgeable employees
b. flexible job
designs require flexible people to fill them
c. value chain
management requires a diverse group of highly specialized employees
d. employees need
to have the knowledge and tools they need to do their jobs efficiently
2.
Randy told Rob, “Organizational culture is also a
very important component of value chain management. Those cultural attitudes
include sharing, openness, respect, and trust, and these attitudes must
encompass not only employees, but _______________ as well.”
a. extend to
management
b. extend to
customers
c. extend to
external partners
d. their families

3. Randy wanted to convince Rob that the value
chain was very important and practical. Randy briefly reviewed the results of a
survey of manufacturers that had embarked on value chain management. Sharing
the results of the survey with Rob, Randy indicated that ______________ was a
benefit that companies reported on this survey.
a. increased sales
b. cost savings
c. increased market share
d.
enhanced customer service order management

4.
Rob asked Randy about the barriers commonly faced
by organizations looking to implement value chain management. Randy replied that
organizational barriers are among the most difficult for managers to reconcile.
An example of such a barrier might include ______________.
a. reluctance to
share information
b. mutual trust
c. the belief that
when an organization collaborates, it no longer controls its own destiny
d. employees’
refusal to be flexible

CURRENT
ISSUES IN OPERATIONS MANAGEMENT

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 Far East, Europe, and Australia. In conjunction with this
investment in new plants and technologies, the firm plans to 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, has been tasked with overseeing the development of these plants and new
capabilities. Mr. Tate has asked that Steve be assigned to him to help him in
this process.

5.
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 provides consumers with manufactured products that
are tailored to their individual specifications.
a.
mass personalization
b.
mass customization
c.
design-to-order manufacturing
d.
one-to-one marketing

6.
Mr. Tate and Steve have scheduled a site visit to a
nearby Dell Computer’s assembly facility in order to see firsthand many of the
technologies available to Felcher & Sons. Dell Computer uses technologies
such as computer controlled factory equipment, industrial robots, bar code
scanners, and logistics software that enable them to manufacture, assemble, and
ship custom-designed computers in a very short time. Such technologies
characterize _________, which give companies the ability to quickly readjust
their assembly lines to make products to order.
a.
design-to-order manufacturing techniques
b.
new technological techniques
c.
flexible manufacturing techniques
d.
intellectual property techniques

7.
Mr. Tate has been tasked with bringing these new
plants into compliance with ISO 9000 standards. Mr. Tate asks Steve if he is
familiar with ISO 9000. Steve admits that while he remembers hearing about it
in school, he’s not 100 percent sure. Mr. Tate tells him that ISO 9000 is a
_______________.
a.
quality standard that establishes a goal of no more
than 3.4 defects per 10,000 units
b.
quality standard that establishes a goal of no more
than 3.4 defects per 100,000 units
c.
quality standard that establishes a goal of no more
than 3.4 defects per 1,000,000 units
d.
series of international quality management
standards

8.
Having been assigned to help Mr. Tate bring new
plants into compliance with ISO 9000 standards, Steve asks Mr. Tate why
obtaining ISO 9000 is so important to Felcher & Sons, Inc. Mr. Tate
responds that ______________.
a.
this type of certification is a prerequisite for
doing business internationally
b.
quality is often a big problem for overseas plants
because labor is less highly skilled
c.
U.S. law
requires manufacturers bring their operations into compliance by 2007
d.
this quality goal establishes a goal of no more
than 3.4 defects per million units or procedures
)

9.
Having been assigned to help Mr. Tate bring new
plants into compliance with ISO 9000 standards, Steve asks Mr. Tate whether
there are many firms that have achieved ISO 9000 certification. Mr. Tate tells
Steve that according to most recent figures he’d seen, the number of registered
sites is about _____________.
a.
100,000
b.
250,000
c.
670,000
d.
1,000,000

10. Mr.
Tate and Steve attend a seminar put on by a Big 5 consulting firm with vast
experience with ISO 9000 and an excellent reputation in implementing various
quality-based initiatives. The speaker, John Dillon, begins by asking a
question: “When you consider a product or service to have quality, what does
that mean?” Quality is the ability of a
product or service to _______________.
a.
reliably do what it is supposed to do
b.
exceed customer expectations
c.
provide value
d.
be flexible

11. Mr.
Dillon tells the audience that firms, such as their client Rockwell Collins,
have found that successful quality management programs tend to rely on two
important approaches, cross-functional work teams and _________.
a.
managerial flexibility
b.
self-directed work teams
c.
ongoing employee education and training
d.
an overall learning orientation within the firm

12. After
the presentation, Mr. Tate approaches John Dillon and asks him about his
company’s experience with quality improvement efforts in overseas operations.
Mr. Dillon tells Mr. Tate about the experience of one of his customers Delphi
Automotive Systems Corporation. Mr. Dillon just returned from visiting their
plant in Matamoros, Mexico, where Delphi
had implemented a quality initiative. The Delphi
plant was able to reduce their customer reject rate by almost ________________.
a.
50 percent
b.
100 percent
c.
200 percent
d.
300 percent
13. Mr.
Tate tells John Dillon about Felcher & Sons, Inc.’s efforts to achieve ISO
9000 certification. He explains that the firm is pretty far along with this
effort; quality control is an ongoing concern for Felcher & Sons, and he asks
Mr. Dillon if there might be other quality management issues or trends that the
consultant might be able to help them with. John Dillon tells them a little
about Six Sigma. After the show, Steve asks Mr. Tate what Six Sigma stands for,
and Mr. Tate replies that _________________.
a.
Sigma is the Greek letter statisticians use to
define a standard deviation
b.
Six Sigma covers everything from contract review to
product design to product delivery
c.
Six Sigma is a series of international quality
management standards established by the International Organization for
Standardization
d.
Six Sigma has become the internationally recognized
standard for evaluating and comparing companies in the global marketplace

Essay
Questions

WHAT IS OPERATIONS MANAGEMENT AND WHY IS IT
IMPORTANT?

14. In a short
essay, define operations management and briefly discuss the importance of this
management process.

15. In a short essay, identify seven
of Deming’s 14 points for improving management’s productivity.

VALUE CHAIN MANAGEMENT

16. In a short essay, describe the
goal of value chain management.

17. In a short essay, identify and
explain the three main human resource requirements for value chain management.

18. In a short essay, list and discuss four obstacles that managers must deal
with in managing the value chain.

CURRENT ISSUES IN
OPERATIONS MANAGEMENT

19. In a short essay, discuss
technology’s role in manufacturing.

20. In a short essay, list and discuss
the two best-known quality goals that many organizations worldwide have
pursued.

21. Define
the concept of mass customization and provide several relevant examples.
Briefly discuss how technology is vital to the success of mass customization
efforts.