ITSCM 306 - EXAM 1 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. Operations and supply chain management (OSCM)
Answer:
the design, operation, and improvement of the systems that create and deliver the firm's primary products
and services
Question:
2. Operations
Answer:
manufacturing and service processes that are used to transform the resources into products
Question:
3. Supply Chain
Answer:
processes that move information and material to and from the manufacturing and service processes of the
firm
Question:
4. Transformation Process
Answer:
uses resources to convert inputs into some desired output
Question:
5. Basic Principles of Transformation Process
Answer:
(1) How different types of products are *organized*, (2) How to determine the *capacity* of a process, (3)
How *long* it should take to make a unit, (4) How the *quality of a process* is monitored, (5) How
information is used to *make decisions*.
Question:
6. Planning
Answer:
Determining how anticipated demand will be met with available resources, and developing a set of metrics
to monitor the supply chain to ensure efficiency and quality.
Question:
7. Sourcing
Answer:
selection of suppliers that will deliver the goods and services needed to create the firm's product
Question:
8. Making
, Answer:
where the major product is produced or the service provided
Question:
9. Delivering
Answer:
logistics processes such as selecting carriers, coordinating the movement of goods and information, and
collecting payments from customers
Question:
10. Returning
Answer:
the processes for receiving worn-out, defective, and excess products back from customers
Question:
11. Product-Service Bundling
Answer:
Building service activities into a firm's product offerings to create more value for the customer.
Note: This typically results in lower profits as a percent of revenues. The additional income from bundling
does not generate high enough margins to cover the investment needed to fund bundling in the first place.
Question:
12. Lean Manufacturing
Answer:
- to achieve high customer service with minimum levels of inventory investment
- eliminating the 8 sources of waste
Encompasses the set of concepts of: (1) Just-in-Time (JIT) (2) Total Quality Control (TQC)
Question:
13. Just-in-Time (JIT)
Answer:
An integrated set of activities designed to achieve high-volume production using minimal inventories of
parts that arrive exactly when they are needed.
(Pioneered by the Japanese in 1980s)
Question:
14. Total Quality Control (TQC)
Answer:
aggressively seeks to eliminate causes of production defects
Question:
15. Total Quality Management (TQM)
Answer:
the philosophy that everyone in the organization is concerned about quality, throughout all of the firm's
activities, to better serve customer needs.
(Developed late 1980s to early 1990s)
CORRECT ANSWERS
Question:
1. Operations and supply chain management (OSCM)
Answer:
the design, operation, and improvement of the systems that create and deliver the firm's primary products
and services
Question:
2. Operations
Answer:
manufacturing and service processes that are used to transform the resources into products
Question:
3. Supply Chain
Answer:
processes that move information and material to and from the manufacturing and service processes of the
firm
Question:
4. Transformation Process
Answer:
uses resources to convert inputs into some desired output
Question:
5. Basic Principles of Transformation Process
Answer:
(1) How different types of products are *organized*, (2) How to determine the *capacity* of a process, (3)
How *long* it should take to make a unit, (4) How the *quality of a process* is monitored, (5) How
information is used to *make decisions*.
Question:
6. Planning
Answer:
Determining how anticipated demand will be met with available resources, and developing a set of metrics
to monitor the supply chain to ensure efficiency and quality.
Question:
7. Sourcing
Answer:
selection of suppliers that will deliver the goods and services needed to create the firm's product
Question:
8. Making
, Answer:
where the major product is produced or the service provided
Question:
9. Delivering
Answer:
logistics processes such as selecting carriers, coordinating the movement of goods and information, and
collecting payments from customers
Question:
10. Returning
Answer:
the processes for receiving worn-out, defective, and excess products back from customers
Question:
11. Product-Service Bundling
Answer:
Building service activities into a firm's product offerings to create more value for the customer.
Note: This typically results in lower profits as a percent of revenues. The additional income from bundling
does not generate high enough margins to cover the investment needed to fund bundling in the first place.
Question:
12. Lean Manufacturing
Answer:
- to achieve high customer service with minimum levels of inventory investment
- eliminating the 8 sources of waste
Encompasses the set of concepts of: (1) Just-in-Time (JIT) (2) Total Quality Control (TQC)
Question:
13. Just-in-Time (JIT)
Answer:
An integrated set of activities designed to achieve high-volume production using minimal inventories of
parts that arrive exactly when they are needed.
(Pioneered by the Japanese in 1980s)
Question:
14. Total Quality Control (TQC)
Answer:
aggressively seeks to eliminate causes of production defects
Question:
15. Total Quality Management (TQM)
Answer:
the philosophy that everyone in the organization is concerned about quality, throughout all of the firm's
activities, to better serve customer needs.
(Developed late 1980s to early 1990s)
