SCM 300 Exam 3 (ASU Davila) - 200 Practice
Questions & Answers
This comprehensive study set covers Modules 5-8 (or 9-12, depending on the
semester), focusing on key topics for Exam 3. It includes Project Management,
Business Process Improvement (BPI), Social Responsibility, and Quality
Management.
The 200 questions are grouped by topic for easier study:
Section 1: Business Process Fundamentals (Questions 1-35)
Q1: A business process is BEST defined as:
A) A financial statement showing company profits
B) A standardized set of activities that accomplish a specific task
C) A list of employee job descriptions
D) A marketing strategy for customer acquisition
Answer: B
A business process is a documented series of activities that, when completed
properly, turns inputs into valuable outputs. It is like a "recipe" for producing
consistent results.
Q2: According to Professor Davila, what are the THREE requirements of a
good business process?
A) Low cost, high speed, global reach
B) Good intentions, reproducible results, measurable and manageable
C) Automation, employee satisfaction, zero defects
D) Supplier partnerships, customer loyalty, brand recognition
Answer: B
Good processes must have:
1. Good intentions: Goal-oriented, stakeholders considered, outputs are
desired.
2. Reproducible results: Documented and easily understood; adaptable.
3. Measurable and manageable: Entire system considered, easy to identify
problems, accountability, good metrics.
,Q3: The "Cow Path Theory" is used by Professor Davila to illustrate:
A) How efficient supply chains should be designed
B) How bad business processes develop over time due to a lack of communication
and ambiguity
C) The importance of vertical integration
D) How to calculate safety stock levels
Answer: B
The Cow Path Theory tells the story of a cow finding a path to water that becomes
institutionalized despite being inefficient. It demonstrates how organizations stick
with outdated processes due to habit and fear of change.
Q4: A Block Diagram differs from a Business Process Flow Chart in that:
A) Block diagrams use multiple shapes; flow charts use only rectangles
B) Block diagrams show the "big picture" using only rectangles; flow charts use
various shapes to show decision points
C) Flow charts cannot show decision points
D) Block diagrams are used only for manufacturing processes
Answer: B
Block diagrams help managers see the entire system (big picture) using simple
rectangles and arrows. Flow charts use different shapes (diamonds for decisions,
rectangles for actions) to show detailed process steps.
Q5: A "Planogram" refers to:
A) A financial plan for supply chain operations
B) A map of where every product goes on a retail store shelf
C) A diagram of manufacturing workflow
D) A timeline for project completion
Answer: B
A planogram is a visual tool used by retailers to map product placement on shelves,
optimizing space utilization and ensuring consistency across store locations.
Q6: "Ambiguity" in the context of business process failure refers to:
A) Having too many goals
B) A situation where employees have too much autonomy
C) Goals that are not clearly understood by those involved
D) When a process is too automated
,Answer: C
Ambiguity in process management means the goals or steps of a process are not
clearly defined, leading to confusion and inefficiency. It is one of the three main
reasons processes fail.
Q7: A company has a strategy to be the low-cost provider, but its purchasing
department buys premium materials. This is an example of:
A) Ambiguity
B) Misalignment
C) Miscommunication
D) Process limitations
Answer: B
Misalignment occurs when what the organization says it wants (goals) does not
match what it actually does (actions).
Q8: In a process flow chart, a rectangle shape typically represents:
A) A decision point
B) The start or end of the process
C) A task, operation, or data collection point
D) A delay
Answer: C
The rectangle (box) shape in flow charts represents a task, operation, or data
collection point. Diamonds are decisions, ovals are start/end, and arrows show
flow.
Q9: A swim lane flowchart is best described as:
A) A simple linear process map
B) A process map with lanes that group activities by the responsible department or
role
C) A diagram showing only material flow
D) A diagram used only for manufacturing
Answer: B
Swim lane flowcharts add an additional dimension by organizing activities
according to which individual, department, or company is responsible for
performing each step.
, Q10: Which of the following is NOT one of the three common reasons a
K. K. K. K. K. K. K. K. K. K. K. K. K.
business process might fail (as discussed in the "Cow Path Theory"
K. K. K. K. K. K. K. K. K. K. K.
framework)?
K.
A) Never was good K. K.
B) Used to be good K. K. K.
C) Automation too soon K. K.
D) Process limitations K.
Answer: C K.
The three main reasons for process failure are:
K. K. K. K. K. K. K.
1. Never was good: The process had poor goals or was misaligned from the
K. K. K. K. K. K. K. K. K. K. K. K.
start. K.
2. Used to be good: The process was effective but is now outdated due to
K. K. K. K. K. K. K. K. K. K. K. K. K.
market evolution or poor training.
K. K. K. K. K.
3. Process limitations: The process cannot handle current demands (e.g.,
K. K. K. K. K. K. K. K.
demand too high, human resource challenges).
K. K. K. K. K. K.
Q11: TQM (Total Quality Management) includes which of the following
K. K. K. K. K. K. K. K. K.
principles?
K.
A) The customer is always important
K. K. K. K.
B) Involvement of internal and external employees K. K. K. K. K.
C) Continuous improvement culture K. K.
D) All of the above
K. K. K.
Answer: D K.
TQM is built on three pillars: customer focus, employee involvement at all levels,
K. K. K. K. K. K. K. K. K. K. K. K.
and continuous improvement (Kaizen).
K. K. K. K.
Q12: What does ISO 9000 certification focus on?
K. K. K. K. K. K. K.
A) Environmental sustainability K.
B) Quality management systems K. K.
C) Financial reporting standards K. K.
D) Employee safety regulations K. K.
Answer: B K.
ISO 9000 is an international standard for quality management systems, certifying
K. K. K. K. K. K. K. K. K. K.
that an organization has documented processes for consistent quality.
K. K. K. K. K. K. K. K. K.
Questions & Answers
This comprehensive study set covers Modules 5-8 (or 9-12, depending on the
semester), focusing on key topics for Exam 3. It includes Project Management,
Business Process Improvement (BPI), Social Responsibility, and Quality
Management.
The 200 questions are grouped by topic for easier study:
Section 1: Business Process Fundamentals (Questions 1-35)
Q1: A business process is BEST defined as:
A) A financial statement showing company profits
B) A standardized set of activities that accomplish a specific task
C) A list of employee job descriptions
D) A marketing strategy for customer acquisition
Answer: B
A business process is a documented series of activities that, when completed
properly, turns inputs into valuable outputs. It is like a "recipe" for producing
consistent results.
Q2: According to Professor Davila, what are the THREE requirements of a
good business process?
A) Low cost, high speed, global reach
B) Good intentions, reproducible results, measurable and manageable
C) Automation, employee satisfaction, zero defects
D) Supplier partnerships, customer loyalty, brand recognition
Answer: B
Good processes must have:
1. Good intentions: Goal-oriented, stakeholders considered, outputs are
desired.
2. Reproducible results: Documented and easily understood; adaptable.
3. Measurable and manageable: Entire system considered, easy to identify
problems, accountability, good metrics.
,Q3: The "Cow Path Theory" is used by Professor Davila to illustrate:
A) How efficient supply chains should be designed
B) How bad business processes develop over time due to a lack of communication
and ambiguity
C) The importance of vertical integration
D) How to calculate safety stock levels
Answer: B
The Cow Path Theory tells the story of a cow finding a path to water that becomes
institutionalized despite being inefficient. It demonstrates how organizations stick
with outdated processes due to habit and fear of change.
Q4: A Block Diagram differs from a Business Process Flow Chart in that:
A) Block diagrams use multiple shapes; flow charts use only rectangles
B) Block diagrams show the "big picture" using only rectangles; flow charts use
various shapes to show decision points
C) Flow charts cannot show decision points
D) Block diagrams are used only for manufacturing processes
Answer: B
Block diagrams help managers see the entire system (big picture) using simple
rectangles and arrows. Flow charts use different shapes (diamonds for decisions,
rectangles for actions) to show detailed process steps.
Q5: A "Planogram" refers to:
A) A financial plan for supply chain operations
B) A map of where every product goes on a retail store shelf
C) A diagram of manufacturing workflow
D) A timeline for project completion
Answer: B
A planogram is a visual tool used by retailers to map product placement on shelves,
optimizing space utilization and ensuring consistency across store locations.
Q6: "Ambiguity" in the context of business process failure refers to:
A) Having too many goals
B) A situation where employees have too much autonomy
C) Goals that are not clearly understood by those involved
D) When a process is too automated
,Answer: C
Ambiguity in process management means the goals or steps of a process are not
clearly defined, leading to confusion and inefficiency. It is one of the three main
reasons processes fail.
Q7: A company has a strategy to be the low-cost provider, but its purchasing
department buys premium materials. This is an example of:
A) Ambiguity
B) Misalignment
C) Miscommunication
D) Process limitations
Answer: B
Misalignment occurs when what the organization says it wants (goals) does not
match what it actually does (actions).
Q8: In a process flow chart, a rectangle shape typically represents:
A) A decision point
B) The start or end of the process
C) A task, operation, or data collection point
D) A delay
Answer: C
The rectangle (box) shape in flow charts represents a task, operation, or data
collection point. Diamonds are decisions, ovals are start/end, and arrows show
flow.
Q9: A swim lane flowchart is best described as:
A) A simple linear process map
B) A process map with lanes that group activities by the responsible department or
role
C) A diagram showing only material flow
D) A diagram used only for manufacturing
Answer: B
Swim lane flowcharts add an additional dimension by organizing activities
according to which individual, department, or company is responsible for
performing each step.
, Q10: Which of the following is NOT one of the three common reasons a
K. K. K. K. K. K. K. K. K. K. K. K. K.
business process might fail (as discussed in the "Cow Path Theory"
K. K. K. K. K. K. K. K. K. K. K.
framework)?
K.
A) Never was good K. K.
B) Used to be good K. K. K.
C) Automation too soon K. K.
D) Process limitations K.
Answer: C K.
The three main reasons for process failure are:
K. K. K. K. K. K. K.
1. Never was good: The process had poor goals or was misaligned from the
K. K. K. K. K. K. K. K. K. K. K. K.
start. K.
2. Used to be good: The process was effective but is now outdated due to
K. K. K. K. K. K. K. K. K. K. K. K. K.
market evolution or poor training.
K. K. K. K. K.
3. Process limitations: The process cannot handle current demands (e.g.,
K. K. K. K. K. K. K. K.
demand too high, human resource challenges).
K. K. K. K. K. K.
Q11: TQM (Total Quality Management) includes which of the following
K. K. K. K. K. K. K. K. K.
principles?
K.
A) The customer is always important
K. K. K. K.
B) Involvement of internal and external employees K. K. K. K. K.
C) Continuous improvement culture K. K.
D) All of the above
K. K. K.
Answer: D K.
TQM is built on three pillars: customer focus, employee involvement at all levels,
K. K. K. K. K. K. K. K. K. K. K. K.
and continuous improvement (Kaizen).
K. K. K. K.
Q12: What does ISO 9000 certification focus on?
K. K. K. K. K. K. K.
A) Environmental sustainability K.
B) Quality management systems K. K.
C) Financial reporting standards K. K.
D) Employee safety regulations K. K.
Answer: B K.
ISO 9000 is an international standard for quality management systems, certifying
K. K. K. K. K. K. K. K. K. K.
that an organization has documented processes for consistent quality.
K. K. K. K. K. K. K. K. K.
