Ch01
Student: ___________________________________________________________________________
1. The present and future manager must have functional expertise and does not need an enterprise perspective.
True False
2. Scientific Management embraces the idea that there is a "best way" to perform a task.
True False
3. In the not-too-distant future many traditional manufacturing firms and other consumer product manufacturers
will not manufacture at all anymore.
True False
4. Craft production depends on unskilled laborers to produce products
True False
5. Manufacturers are outsourcing less of their needs and at the same time becoming more directly linked to the
customer through service.
True False
6. In a knowledge-based economy, innovations substitute knowledge for other capital.
True False
7. Profitability differs from profit in that profitability measures productivity.
True False
8. Like cost, quality, and timeliness; processes and capabilities are also viewed by customers as a component of
value.
True False
,9. The following are typical resources managed by businesses: inventory, capacity, facilities and patents.
True False
10. Which of the following are saleable outputs of a business?
A. Products and Services
B. Quality and Speed
C. Capacity and Facilities
D. Value and Quality
11. Processes are made up of
A. Activities
B. Capabilities
C. Value
D. Value components
E. None of the above
12. According to the resource/profit model, the overriding objective of the business is:
A. Profit
B. Value
C. Strategy
D. Profitability
E. None of the above
13. Timeliness refers to whether a product or service
A. Is not obsolete
B. Is produced without taking too much labor
C. Uses exactly the correct amount of capacity
D. Created, delivered, and available when it is supposed to be
E. None of the above
14. The difference between something's market value and the cost of creating it creates a potential for:
A. Net worth
B. Profitability
C. Reduced costs
D. Sales
E. None of the above
,15. The two critical roles played by processes in defining the value of a product or service are:
A. Processes contribute value and also contribute costs
B. Processes contribute value as well as differentiation.
C. Processes reduce costs and enhance benefits to consumers
D. Processes enhance perceived value and reduce perceived costs.
E. None of the above
16. The components of value included in the resource profit model are:
A. Benefits, timeliness, and processes
B. Strategy, capabilities, and processes
C. Strategy, Profitability, and market share
D. Cost, quality, timeliness
E. None of the above
17. Integrative management frameworks:
A. Eliminate the need for managerial accounting
B. Replace profitability measures for measuring performance
C. Help managers make day-to-day decisions that are consistent with goals
D. Eliminate guesswork in decision-making
E. Rarely become part of good management practice
18. A technology that displaces an existing technology is often referred to as:
A. A progressive technology
B. A life cycle
C. A disruptive technology
D. A competitive advantage
19. A critical ramification of the intangible nature of services is:
A. Service quality is easier to measure than product quality
B. Consumers do not care about service processes as much as they care about service outcomes
C. Waiting lines are a frequent quality concern for service managers
D. Services cannot be stored for future use.
20. B2C refers to:
A. A business selling to a business
B. A business shifting its capacity
C. A cost reduction effort
D. A business selling to a consumer
, 21. Which of the following is often more important for business customers than consumer customers?
A. Cost
B. Timeliness
C. Product quality
D. Value
E. Service quality
22. Mass customization:
A. Will probably never exist
B. Is an objective of many U.S. manufacturers
C. Occurred as a result of the just-in-time revolution of the 1980's
D. Has already been achieved in the service sector.
23. A strategy is
A. A plan for maximizing profitability
B. A plan for designing effective processes
C. A plan for how the business will continue to be profitable in the future
D. A plan for beating competitors
E. None of the above
24. Which of the following is not an integrative management framework in the resource/profit model?
A. Lean systems
B. Constraint management
C. Customer relationship management
D. Supply chain management
25. The most influential environmental force that product- and service- oriented firms must deal with is:
A. Globalization
B. The Internet
C. Regulatory forces
D. The natural environment
E. None of the above
26. Constraint management focuses on:
A. Controlling employee behavior by establishing constraints
B. Cost reduction
C. How a limiting resource can determine system productivity
D. Reducing costs through elimination of process tasks
E. None of the above
Student: ___________________________________________________________________________
1. The present and future manager must have functional expertise and does not need an enterprise perspective.
True False
2. Scientific Management embraces the idea that there is a "best way" to perform a task.
True False
3. In the not-too-distant future many traditional manufacturing firms and other consumer product manufacturers
will not manufacture at all anymore.
True False
4. Craft production depends on unskilled laborers to produce products
True False
5. Manufacturers are outsourcing less of their needs and at the same time becoming more directly linked to the
customer through service.
True False
6. In a knowledge-based economy, innovations substitute knowledge for other capital.
True False
7. Profitability differs from profit in that profitability measures productivity.
True False
8. Like cost, quality, and timeliness; processes and capabilities are also viewed by customers as a component of
value.
True False
,9. The following are typical resources managed by businesses: inventory, capacity, facilities and patents.
True False
10. Which of the following are saleable outputs of a business?
A. Products and Services
B. Quality and Speed
C. Capacity and Facilities
D. Value and Quality
11. Processes are made up of
A. Activities
B. Capabilities
C. Value
D. Value components
E. None of the above
12. According to the resource/profit model, the overriding objective of the business is:
A. Profit
B. Value
C. Strategy
D. Profitability
E. None of the above
13. Timeliness refers to whether a product or service
A. Is not obsolete
B. Is produced without taking too much labor
C. Uses exactly the correct amount of capacity
D. Created, delivered, and available when it is supposed to be
E. None of the above
14. The difference between something's market value and the cost of creating it creates a potential for:
A. Net worth
B. Profitability
C. Reduced costs
D. Sales
E. None of the above
,15. The two critical roles played by processes in defining the value of a product or service are:
A. Processes contribute value and also contribute costs
B. Processes contribute value as well as differentiation.
C. Processes reduce costs and enhance benefits to consumers
D. Processes enhance perceived value and reduce perceived costs.
E. None of the above
16. The components of value included in the resource profit model are:
A. Benefits, timeliness, and processes
B. Strategy, capabilities, and processes
C. Strategy, Profitability, and market share
D. Cost, quality, timeliness
E. None of the above
17. Integrative management frameworks:
A. Eliminate the need for managerial accounting
B. Replace profitability measures for measuring performance
C. Help managers make day-to-day decisions that are consistent with goals
D. Eliminate guesswork in decision-making
E. Rarely become part of good management practice
18. A technology that displaces an existing technology is often referred to as:
A. A progressive technology
B. A life cycle
C. A disruptive technology
D. A competitive advantage
19. A critical ramification of the intangible nature of services is:
A. Service quality is easier to measure than product quality
B. Consumers do not care about service processes as much as they care about service outcomes
C. Waiting lines are a frequent quality concern for service managers
D. Services cannot be stored for future use.
20. B2C refers to:
A. A business selling to a business
B. A business shifting its capacity
C. A cost reduction effort
D. A business selling to a consumer
, 21. Which of the following is often more important for business customers than consumer customers?
A. Cost
B. Timeliness
C. Product quality
D. Value
E. Service quality
22. Mass customization:
A. Will probably never exist
B. Is an objective of many U.S. manufacturers
C. Occurred as a result of the just-in-time revolution of the 1980's
D. Has already been achieved in the service sector.
23. A strategy is
A. A plan for maximizing profitability
B. A plan for designing effective processes
C. A plan for how the business will continue to be profitable in the future
D. A plan for beating competitors
E. None of the above
24. Which of the following is not an integrative management framework in the resource/profit model?
A. Lean systems
B. Constraint management
C. Customer relationship management
D. Supply chain management
25. The most influential environmental force that product- and service- oriented firms must deal with is:
A. Globalization
B. The Internet
C. Regulatory forces
D. The natural environment
E. None of the above
26. Constraint management focuses on:
A. Controlling employee behavior by establishing constraints
B. Cost reduction
C. How a limiting resource can determine system productivity
D. Reducing costs through elimination of process tasks
E. None of the above
