Bmal 590 Operations/Production Management_Master Set
Exam Questions and Answers Grade A+
The amount of leeway each activity has in its starting time and duration without
delaying the project. - Answer-Slack time
Operations and Supply Chain Strategies - Answer-Organizations will seek a
strategy that focuses on either efficiency or responsiveness in their operations and
supply chain
An organization that is focused on efficiency as a strategy is seeking to compete on
lower cost, while an organization focused on a responsiveness strategy is seeking
to compete on speed of delivery.
Both strategies will impact the price of the product and the perception of quality.
Regardless of the strategy, the ultimate goal of the organization is to make profits,
and preferably more profits than its competitors.
,Thus it is possible that either the more efficient or the more responsive
organization could be more profitable. It is also possible that neither organization is
profitable - particularly if they do not manage their operations well
Operations and Supply Chain Strategies for Three "World Class" Organizations -
Answer-Kellogg's has an extensive product line and serves international markets
with a large network of plants. Important operations decisions include the product
mix at each plant, the network of suppliers, inventory policies, and forecasting.
Sony makes and sells a huge variety of electronic goods all around the world and
much of the manufacturing occurs in Japan and China as well as the Americas and
Europe. Manufacturing costs vary but the increased responsiveness of having
supply near a major source of demand is a savvy business decision. Sony's
dispersed production and customer base create numerous logistical challenges, and
Sony manages these challenges through third-party logistics.
American Express is a financial services company whose supply chain is not as
complex as Kellogg's or Sony's. Important decisions it must make include locating
retail branches, locating other operations (call centers), and choosing suppliers—
such as manufacturers of credit cards and providers of IT and billing services.
,Competitive Priorities Versus Capabilities - Answer-Competitive priorities are the
relative rankings of what the company would like to achieve.
Competitive capabilities are the relative effectiveness that the company is able to
actually achieve. Some companies start with a competitive priority because there is
a niche in the market that is not being filled, such as the high level of product
flexibility in the mobile device arena (Dell, Apple) while others start with an
existing set of competitive priorities and then find products and markets that are a
good fit for the priorities (Starbucks).
When considering an efficient strategy: - Answer-an organization is seeking to be
efficient in its operations processes in order to offer a lower price in the market by
using cost and quality approaches.
A low cost leader, seeks lower prices as the easiest reason to communicate to
customers why they should buy a particular product or service.
Unfortunately, simply lowering prices will lead to reduced profits or even losses;
therefore, a company must simultaneously reduce its operating costs. Low-cost
, operations seek to provide a product or service that is less expensive than similar
products or services offered by competitors.
To reduce operating costs an organization should consider qualitymanagement
tools (described in sections 2 and 3) as a means for cost reduction. Customers will
pay a premium for superior quality. Yet, a quality strategy is beyond offering a
product or service that is superior to the alternatives. Consistent quality involves
meeting the product specifications and the promises made to customers with high
reliability. The product does not necessarily have to be superior to another, but
customers must have a high degree of confidence that what they are buying will
perform as promised.
Yet, quality as a strategic approach seeks to reduce scrap, eliminate waste, and
improve process efficiencies.
When considering a responsive strategy: - Answer-an organization is seeking to
compete on speed of delivery in the market by using time/delivery and flexibility
approaches.
Exam Questions and Answers Grade A+
The amount of leeway each activity has in its starting time and duration without
delaying the project. - Answer-Slack time
Operations and Supply Chain Strategies - Answer-Organizations will seek a
strategy that focuses on either efficiency or responsiveness in their operations and
supply chain
An organization that is focused on efficiency as a strategy is seeking to compete on
lower cost, while an organization focused on a responsiveness strategy is seeking
to compete on speed of delivery.
Both strategies will impact the price of the product and the perception of quality.
Regardless of the strategy, the ultimate goal of the organization is to make profits,
and preferably more profits than its competitors.
,Thus it is possible that either the more efficient or the more responsive
organization could be more profitable. It is also possible that neither organization is
profitable - particularly if they do not manage their operations well
Operations and Supply Chain Strategies for Three "World Class" Organizations -
Answer-Kellogg's has an extensive product line and serves international markets
with a large network of plants. Important operations decisions include the product
mix at each plant, the network of suppliers, inventory policies, and forecasting.
Sony makes and sells a huge variety of electronic goods all around the world and
much of the manufacturing occurs in Japan and China as well as the Americas and
Europe. Manufacturing costs vary but the increased responsiveness of having
supply near a major source of demand is a savvy business decision. Sony's
dispersed production and customer base create numerous logistical challenges, and
Sony manages these challenges through third-party logistics.
American Express is a financial services company whose supply chain is not as
complex as Kellogg's or Sony's. Important decisions it must make include locating
retail branches, locating other operations (call centers), and choosing suppliers—
such as manufacturers of credit cards and providers of IT and billing services.
,Competitive Priorities Versus Capabilities - Answer-Competitive priorities are the
relative rankings of what the company would like to achieve.
Competitive capabilities are the relative effectiveness that the company is able to
actually achieve. Some companies start with a competitive priority because there is
a niche in the market that is not being filled, such as the high level of product
flexibility in the mobile device arena (Dell, Apple) while others start with an
existing set of competitive priorities and then find products and markets that are a
good fit for the priorities (Starbucks).
When considering an efficient strategy: - Answer-an organization is seeking to be
efficient in its operations processes in order to offer a lower price in the market by
using cost and quality approaches.
A low cost leader, seeks lower prices as the easiest reason to communicate to
customers why they should buy a particular product or service.
Unfortunately, simply lowering prices will lead to reduced profits or even losses;
therefore, a company must simultaneously reduce its operating costs. Low-cost
, operations seek to provide a product or service that is less expensive than similar
products or services offered by competitors.
To reduce operating costs an organization should consider qualitymanagement
tools (described in sections 2 and 3) as a means for cost reduction. Customers will
pay a premium for superior quality. Yet, a quality strategy is beyond offering a
product or service that is superior to the alternatives. Consistent quality involves
meeting the product specifications and the promises made to customers with high
reliability. The product does not necessarily have to be superior to another, but
customers must have a high degree of confidence that what they are buying will
perform as promised.
Yet, quality as a strategic approach seeks to reduce scrap, eliminate waste, and
improve process efficiencies.
When considering a responsive strategy: - Answer-an organization is seeking to
compete on speed of delivery in the market by using time/delivery and flexibility
approaches.
