BUAD 331 - Exam #2 with Accurate
Solutions
What is operational capacity composed of? - ANS-human labor and the machine
capacity needed for the conversion process
Operational Management key activities tend to be the same for the production of a good
or service. T/F? - ANS-True
what are three spend categories and commodities and what are some examples of
each? - ANS-1. direct materials
- ball bearings
- fastners
- body side moldings
- engine componenets
2. indirect materials
- office supplies
- paper towels
(maintenance/repair)
3. services
- advertising
- contract labor
- logistics
What do manufacturing and service operations involve? - ANS-The conversion of
materials and operational capacity into a product or service
what is procurement/supply management? - ANS-the strategic approaches and
processes used too secure needed inputs into the organization to create relevant value
- high level of strategic engagement
What is the physical center of the Supply Chain? - ANS-maufacturing
what is purchasing? - ANS-once an agreement is reached to work with a particular
source for goods and services in the supply chain, purchasing is the processes used to
actually make a buy from a source
- transactional agreement
,Form operations... - ANS-- typically have the fewest physical locations in the Supply
Chain
- tend to have the most employees
- tend to be the most capital intensive or expensive part of an organization
what is a commodity? - ANS-the inputs - including, sub-assembled components,
equipment, services, etc. - that are required to create value
- any input
What are the types of operations and what are they used for? - ANS-- discrete
production
- continuous production
decisions about whether a company should implement make-to-order, assemble-to-
order, or make-to-stock operations will depend in part on whether the product requires
discrete or continuous manufacturing processes
what is procurement strategy? - ANS-- supports the desired competitive business-level
strategies
- complements other functional areas
What is discrete production and what are some examples? - ANS-involves combining
separable component parts to produce discrete units of finished goods
examples: pair of jeans, mobile phone, a car
What is continuous production and what are some examples? - ANS-involve liquids or
gases that undergo continuous transformation (batch production)
-typically involves mixing inputs according to a "recipe" or formula to produce a new
material that is different from its inputs.
examples: oil refinery, paint manufacturer, or plastic resin plant
What spend and commodity category would the following items fit under for an
automotive manufacturer?
- pencil
- pen
- tape
- stapler
- whiteout - ANS-indirect materials
(office suppliers precut category)
, what are the 5 steps of the strategic sourcing process? - ANS-1. market research
2. spend analysis
3. portfolio analysis
4. contract negotiation
5. supplier relațional management
Make vs. Buy Questions: - ANS-- Do we want to do it?
- Is it a core competency?
- Is it a skill or technology we want to own?
- Can we achieve cost economies?
what are the 4 steps in the integrated procurement strategy? - ANS-1. corporate
strategy
2. business unit strategy
3. supply management strategy
4. commodity strategy
Describe the first step of the strategic sourcing process - ANS-1. market research
- understand the purchase requirement relative to functional and business unit
objectives
- identify specific internal users
- identify current suppliers
- research supply market for SWOT analysis (strength, weakness, opportunities, threat)
What do we do if you answer "Yes" to Make vs. Buy Questions? What do we do if
answer is "No"? - ANS-If yes, we make it (insource).
If no, we buy it (outsource).
describe the 2nd step of the strategic souring process - ANS-2. spend analysis
- what did the business *spend* (buy) during the past year?
- what *suppliers received* the majority of the business?
- did the suppliers *charge an accurate price* across all divisions vs P.O. requirements,
contracts, and statements of work?
- which divisions spent their money on products and services that were *correctly
budgeted* for?
- are there *opportunities to combine volumes* and standardized purchases?
Manufacturing is referred to as the "Center" of the supply chain due to:
A. most people
B. most equipment
C. most resources
D. usually inn the supply chain constraint
E. all of the above - ANS-E. all of the above
Solutions
What is operational capacity composed of? - ANS-human labor and the machine
capacity needed for the conversion process
Operational Management key activities tend to be the same for the production of a good
or service. T/F? - ANS-True
what are three spend categories and commodities and what are some examples of
each? - ANS-1. direct materials
- ball bearings
- fastners
- body side moldings
- engine componenets
2. indirect materials
- office supplies
- paper towels
(maintenance/repair)
3. services
- advertising
- contract labor
- logistics
What do manufacturing and service operations involve? - ANS-The conversion of
materials and operational capacity into a product or service
what is procurement/supply management? - ANS-the strategic approaches and
processes used too secure needed inputs into the organization to create relevant value
- high level of strategic engagement
What is the physical center of the Supply Chain? - ANS-maufacturing
what is purchasing? - ANS-once an agreement is reached to work with a particular
source for goods and services in the supply chain, purchasing is the processes used to
actually make a buy from a source
- transactional agreement
,Form operations... - ANS-- typically have the fewest physical locations in the Supply
Chain
- tend to have the most employees
- tend to be the most capital intensive or expensive part of an organization
what is a commodity? - ANS-the inputs - including, sub-assembled components,
equipment, services, etc. - that are required to create value
- any input
What are the types of operations and what are they used for? - ANS-- discrete
production
- continuous production
decisions about whether a company should implement make-to-order, assemble-to-
order, or make-to-stock operations will depend in part on whether the product requires
discrete or continuous manufacturing processes
what is procurement strategy? - ANS-- supports the desired competitive business-level
strategies
- complements other functional areas
What is discrete production and what are some examples? - ANS-involves combining
separable component parts to produce discrete units of finished goods
examples: pair of jeans, mobile phone, a car
What is continuous production and what are some examples? - ANS-involve liquids or
gases that undergo continuous transformation (batch production)
-typically involves mixing inputs according to a "recipe" or formula to produce a new
material that is different from its inputs.
examples: oil refinery, paint manufacturer, or plastic resin plant
What spend and commodity category would the following items fit under for an
automotive manufacturer?
- pencil
- pen
- tape
- stapler
- whiteout - ANS-indirect materials
(office suppliers precut category)
, what are the 5 steps of the strategic sourcing process? - ANS-1. market research
2. spend analysis
3. portfolio analysis
4. contract negotiation
5. supplier relațional management
Make vs. Buy Questions: - ANS-- Do we want to do it?
- Is it a core competency?
- Is it a skill or technology we want to own?
- Can we achieve cost economies?
what are the 4 steps in the integrated procurement strategy? - ANS-1. corporate
strategy
2. business unit strategy
3. supply management strategy
4. commodity strategy
Describe the first step of the strategic sourcing process - ANS-1. market research
- understand the purchase requirement relative to functional and business unit
objectives
- identify specific internal users
- identify current suppliers
- research supply market for SWOT analysis (strength, weakness, opportunities, threat)
What do we do if you answer "Yes" to Make vs. Buy Questions? What do we do if
answer is "No"? - ANS-If yes, we make it (insource).
If no, we buy it (outsource).
describe the 2nd step of the strategic souring process - ANS-2. spend analysis
- what did the business *spend* (buy) during the past year?
- what *suppliers received* the majority of the business?
- did the suppliers *charge an accurate price* across all divisions vs P.O. requirements,
contracts, and statements of work?
- which divisions spent their money on products and services that were *correctly
budgeted* for?
- are there *opportunities to combine volumes* and standardized purchases?
Manufacturing is referred to as the "Center" of the supply chain due to:
A. most people
B. most equipment
C. most resources
D. usually inn the supply chain constraint
E. all of the above - ANS-E. all of the above
