BADM 7120 Exam 1 Questions with
Correct Answers
Distinctive Competence - ANSWER-- This operations capability is something an
organization does better than any competing organization that adds value for the
customer
- Examples: Patents, proprietary technology, operations innovations
Business Strategy Alternatives - ANSWER-- Product Imitator: operations must focus
on keeping costs low
- Product Innovator: operations must maintain flexibility in processes, labor and
suppliers
Customer Perspective - ANSWER-- Order qualifiers: objectives customers consider
in the product/service
- Order winners: objectives that cause customer to choose a particular
product/service
Product imitator vs Product Innovator - ANSWER-Imitator -
Order Winner = price (low cost)
Order qualifiers = flexibility, quality, delivery
Innovator -
Order winner = flexibility (rapid introduction of new products)
Order qualifiers = cost, delivery, quality
McDonald's Operation Strategy - ANSWER-- Mission: fast product/service,
consistent quality, low cost, clean/friendly environment
- Operations obj.: cost, quality, service
- Strategic Decisions: process, quality, capacity, inventory, supply chain
- Distinctive Competence: today, continuous improvement of the transformation
system, and brand (originally: unique service/supply chain)
Global Operations and Supply Chains - ANSWER-- Traditional (multi-country, multi-
strategy) vs. "Global" (single-strategy) firm
- Characteristics of the "Global Corporation" differ from the traditional company
,- Rethink the supply chain (product design, process design, location, workforce
policies)
Characteristics of "Global Corporations" - ANSWER--Facilities located worldwide,
not country by country
- Products and services can be shifted among countries
- Sourcing on a global basis
- Supply chain is global in nature
- product design and process technology are global
- products/services fit global tastes
- demand is considered on worldwide basis
- logistics and inventory control is on worldwide basis
Supply Chain Strategy - ANSWER-- achieve competitive advantage for entire supply
chain, rather than individual entities
2 supply chain strategies - ANSWER-Imitative products:
-predictable demand
-efficient, low-cost supply chain
Innovative Products:
-unpredictable demand
-flexible, fast supply chain
*firms design supply chain for each product/service or group of products/services.
Avoids "one size fits all" strategy.*
Operations Sustainability - ANSWER--minimizing or eliminating environmental
impact of operations
-social and financial viability of the firm for future generations
Operations 'greening' may include: - ANSWER--eliminating air, water, landfill
pollution
-reducing energy consumption
-minimizing transportation and total carbon footprint
-working with suppliers to use recyclable and biodegradable packaging
-incorporating product reuse, end-of-life return, recycling
, Types of Product Flow - ANSWER--continuous process
-assembly line
-batch flow
-job shop
-project
Product flow characteristics: Continuous Process - ANSWER--highly standardized
and automated
-flexibility limited
-high volumes of production
-commodity products
-low cost is the 'order winner'
-process industries (sugar, paper, oil, electricity, etc.)
Product-Flow Characteristics: Assembly Line - ANSWER--Linear sequence of
operations (often paced)
-Large capital investment, use of automation
-Very efficient
-High-volume, standardized products
-Low flexibility to product and volume changes
-Discrete products (autos, appliances, computers, etc.)
Assembly Line: Metal Bracket (Figure 4.1) - ANSWER-cut -> drill -> bend -> paint
Product-Flow Characteristics: Batch Flow - ANSWER--production of batches or lots
-batches flow as a unit (set) from one work center to another
-process layout of work centers (by tasks)
-flow is jumbled and intermittent
-flexible labor and equipment (general purpose)
-low to high volume, variety of products
-many types of products (furniture, dishes, boats)
Batch Flow: Three Metal Brackets - ANSWER-look at powerpoint figure 4.2
Product-flow characteristics: job shop - ANSWER--customized to customer order
-production of small batches or lots
-layout/flow similar to batch flow
-flexible labor and equipment (general purpose)
-many types of made-to-order products (plastic parts, machine components, sheet
metal parts, custom signs, artificial limbs, etc)
Product-Flow Characteristics: Project - ANSWER-•Production of customized single
products
•Labor and materials brought to site
•Planning, scheduling challenges
•Little automation, general purpose equipment
•Highly skilled and flexible labor
•Unique, one of a kind products (bridges, building construction, large aircraft, etc.)
Correct Answers
Distinctive Competence - ANSWER-- This operations capability is something an
organization does better than any competing organization that adds value for the
customer
- Examples: Patents, proprietary technology, operations innovations
Business Strategy Alternatives - ANSWER-- Product Imitator: operations must focus
on keeping costs low
- Product Innovator: operations must maintain flexibility in processes, labor and
suppliers
Customer Perspective - ANSWER-- Order qualifiers: objectives customers consider
in the product/service
- Order winners: objectives that cause customer to choose a particular
product/service
Product imitator vs Product Innovator - ANSWER-Imitator -
Order Winner = price (low cost)
Order qualifiers = flexibility, quality, delivery
Innovator -
Order winner = flexibility (rapid introduction of new products)
Order qualifiers = cost, delivery, quality
McDonald's Operation Strategy - ANSWER-- Mission: fast product/service,
consistent quality, low cost, clean/friendly environment
- Operations obj.: cost, quality, service
- Strategic Decisions: process, quality, capacity, inventory, supply chain
- Distinctive Competence: today, continuous improvement of the transformation
system, and brand (originally: unique service/supply chain)
Global Operations and Supply Chains - ANSWER-- Traditional (multi-country, multi-
strategy) vs. "Global" (single-strategy) firm
- Characteristics of the "Global Corporation" differ from the traditional company
,- Rethink the supply chain (product design, process design, location, workforce
policies)
Characteristics of "Global Corporations" - ANSWER--Facilities located worldwide,
not country by country
- Products and services can be shifted among countries
- Sourcing on a global basis
- Supply chain is global in nature
- product design and process technology are global
- products/services fit global tastes
- demand is considered on worldwide basis
- logistics and inventory control is on worldwide basis
Supply Chain Strategy - ANSWER-- achieve competitive advantage for entire supply
chain, rather than individual entities
2 supply chain strategies - ANSWER-Imitative products:
-predictable demand
-efficient, low-cost supply chain
Innovative Products:
-unpredictable demand
-flexible, fast supply chain
*firms design supply chain for each product/service or group of products/services.
Avoids "one size fits all" strategy.*
Operations Sustainability - ANSWER--minimizing or eliminating environmental
impact of operations
-social and financial viability of the firm for future generations
Operations 'greening' may include: - ANSWER--eliminating air, water, landfill
pollution
-reducing energy consumption
-minimizing transportation and total carbon footprint
-working with suppliers to use recyclable and biodegradable packaging
-incorporating product reuse, end-of-life return, recycling
, Types of Product Flow - ANSWER--continuous process
-assembly line
-batch flow
-job shop
-project
Product flow characteristics: Continuous Process - ANSWER--highly standardized
and automated
-flexibility limited
-high volumes of production
-commodity products
-low cost is the 'order winner'
-process industries (sugar, paper, oil, electricity, etc.)
Product-Flow Characteristics: Assembly Line - ANSWER--Linear sequence of
operations (often paced)
-Large capital investment, use of automation
-Very efficient
-High-volume, standardized products
-Low flexibility to product and volume changes
-Discrete products (autos, appliances, computers, etc.)
Assembly Line: Metal Bracket (Figure 4.1) - ANSWER-cut -> drill -> bend -> paint
Product-Flow Characteristics: Batch Flow - ANSWER--production of batches or lots
-batches flow as a unit (set) from one work center to another
-process layout of work centers (by tasks)
-flow is jumbled and intermittent
-flexible labor and equipment (general purpose)
-low to high volume, variety of products
-many types of products (furniture, dishes, boats)
Batch Flow: Three Metal Brackets - ANSWER-look at powerpoint figure 4.2
Product-flow characteristics: job shop - ANSWER--customized to customer order
-production of small batches or lots
-layout/flow similar to batch flow
-flexible labor and equipment (general purpose)
-many types of made-to-order products (plastic parts, machine components, sheet
metal parts, custom signs, artificial limbs, etc)
Product-Flow Characteristics: Project - ANSWER-•Production of customized single
products
•Labor and materials brought to site
•Planning, scheduling challenges
•Little automation, general purpose equipment
•Highly skilled and flexible labor
•Unique, one of a kind products (bridges, building construction, large aircraft, etc.)
