The document provides study materials for an operations and supply chain management test, including definitions of key terms, formulas, and sample exam questions and answers. It covers topics such as operations strategy, processes and analytics; supply chain job roles; operations metrics like inventory turnover and receivables turnover ratios; risk management; product and service design; project management techniques like critical path method; and learning curves. The document aims to prepare students for an exam by testing their understanding of fundamental OSCtv1 concepts.

1. ~ ( j C r cu I: :_t , textbooks, questions
Operations- Preparation for Test 1
,. 10 studiers in the last day
Terms in this set (t.O)
Operations and supply chain
management is concerned
with the design and
management of the entire
system that has what
function?
creates and delivers a firm's products and services
What are the three elements
that require integration to be
successful in operations and
supply chain management?
strategy, processes, and analytics

2. Match the following OSCM
job titles with the appropriate
duties and responsibilities.
A Plans and coordinates staff
activities such as new product
development and new facility
location.
B. Oversees the movement of
goods throughout the supply
chain.
C. Oversees the workforce
and resources required to
produce the firm's products.
D. Negotiates contracts with
vendors and coordinates the
flow of material inputs to the
production process.
E. Applies the tools of lean
production to reduce cycle
time and eliminate waste in a
process.
Plant manager
Supply Chain Manager
Project manager
Business Process
Improvement Analyst
Logistics Manager
A - Project Manager
B - Logistics manager
C - Plant manager
D - Supply chain manager
E - Business Process Improvement Analyst

3. What high-level OSCtv1 Chief Operating Officer
position manager is
responsible for working with
the CEO and company
president to determine the
company's competitive
strategy?
Which historical development Sustainability
in OSCtv1 relates to the ability
of a firm to maintain balance
in a system, considering the
ongoing economic,
employee, and environmental
viability of the firm?
Receivable Turnover Ratio Total Credit Sales/ Average Accounts Receivable
Formula
Inventory Turnover Ratio I
cost of goods sold/average inventory
Asset Turnover Ratio I
total sales/average total assets
A company has recently It will increase; Quicker payments will reduce the
implemented an automated average amount of accounts receivables, so the
online billing and payment receivables turnover ratio will increase.
processing system for orders
it ships to customers. As a
result, it has reduced the
average number of days
between billing a customer
and receiving payment by 10
days. How will this affect the
receivables turnover ratio?

4. A firm's strategy should It's current shareholders:
describe how it intends to A firm has a responsibility to its shareholders to
create and sustain value for create and sustain value in exchange for the
------- shareholders' investment in the firm.
What is the term used to Stakeholders:
describe individuals or Those who are influenced by the actions of the
organizations that are firm are called stakeholders. This group obviously
influenced by the actions of includes shareholders, but many others as well,
the firm? such as customers, vendors, and communities.
What is the term used to Competitive dimensions:
describe product attributes Firms need to define how their products and
that attract certain customers services are differentiated from the competition
and can be used to form the so as to attract customers in the desired market.
competitive position of a The ways they differ are known as competitive
firm? dimensions.
Delivery speed and Delivery reliability:
What are the two main
When it comes to product delivery, customers are
competitive dimensions
mainly interested in two things: the speed and
reliability of delivery. They want things delivered
related to product delivery?
quickly, and they want to be able to count on a
promised delivery date.
A diagram that shows how a Activity-system map:
company's strategy is An activity-system map is a specialized diagram
delivered by a set of that shows how the firm's activities interact to
supporting activities is called support the firm's strategy
a

5. Customers:
In implementing supply chain
At the core of a firm's strategy is the customer.
strategy, a firm must minimize
Only by satisfying the needs of the customer can a
its total cost without
compromising the needs of its
firm compete. An extremely low-cost supply chain
is worthless if nobody buys the firm's products or
------- services.
Risks caused by natural or Disruption Risks:
manmade disasters, and Every supply chain faces the possibility of
therefore impossible to disruption through these unpredictable events.
reliably predict, are called This is called disruption risk and should be
------- planned for in any good supply chain strategy.
The assessment of the
Risk mapping:
probability of a negative
Risk mapping analyzes the risk of certain events
and the resultant cost of those events. Some risks
event against the aggregate
may be so improbable or have such a low cost
severity of the related loss is
that the system may consider such losses a cost of
called
----------- doing business.
Partial Labor Productivity total output/ total input
formula
Capital productivity I
Output per unit of capital = output/ capital input
Multi-factor Productivity
output/ labor(hours), material, energy, capital,
misc.

6. Which phase of the generic
development process
involves construction and
evaluation of multiple
preproduction versions of the
product?
Testing and Refinement:
After the design detail phase, the firm will then
build and test multiple prototypes in the testing
and refinement phase
A process that emphasizes
cross-functional integration
and concurrent development
of a product and its
associated processes is
known as
concurrent engineering:
Product design engineers and manufacturing
process planners work together in the process
known as concurrent engineering to ensure that
the product is designed in a way that it can be
produced by the firm. Any needed changes to the
processes can be planned for and put in place
when production is scheduled to begin.

7. Match the following product
types to the appropriate
product development
description.
A Entail unusually large
uncertainties about the
technology or market. The
development process takes
steps to address those
uncertainties.
B. A firm with a new
proprietary technology seeks
out a market where that
technology can be applied.
C. Uses a repeated
prototyping cycle. Results
from one cycle are used to
modify priorities in the
ensuing cycle.
D. The production process has
an impact on the product
properties. Therefore, product
design and process design
cannot be separated.
E. Products are designed and
built around a pre-existing
technological subsystem.
A - High Risk Products
B - Technology-push products
C - Quick-build products
D - process-intensive products
E - platform products

8. Designing products for
aesthetics and with the user in
mind is generally called what?
Industrial design:
It may not sound very intuitive, but designing for
looks and with the customer in mind is called
industrial design.
The purpose of value
analysis/value engineering is
to
simplify products and processes:
The purpose of value analysis/value engineering is
to simply both products and processes, so as to
maximize value added at each step of the
manufacturing process.
What is it about service
processes that makes their
design and operation so
different from manufacturing
processes?
direct customer involvement in the process:
tv1ost service operations directly involve the
customer in the process to some extent. These
customers bring uncertainty and variability into
the process that is not seen in manufacturing
processes.
What are the three general
factors that determine the fit
of a new or revised service
process?
Skills fit, technology fit, and training:
According to the model proposed by Frances
Frei, the three factors for determining fit are the
service experience fit, the operational fit, and the
financial impact of the service design.
tv1easures of product
development success can be
organized in what three
categories?
Time to market, productivity, and quality:
The categories and specific examples of
measurements are provided in Exhibit 3.11 in the
text.

9. What is the term used for the
service package:
bundle of goods and services
All service systems provide some combination of
service and goods in a certain environment that
that are provided in some
the customer interacts with to some degree. This
environment by every service
total combination is referred to as the service
operation?
package.
tv1ore difficult:
Are service operations with a
Customers bring increased uncertainty and
variation into the service system through their
high degree of customer
direct interaction with the system. The greater the
contact more or less difficult
to control than those with a
level of interaction, the higher the level of
low degree of customer
uncertainty and variation. Therefore, systems with
high levels of customer contact are more difficult
contact?
to control than those with low levels of customer
contact.
A ride at an amusement park Face-to-face, tight specs:
is an example of a service A ride at an amusement park is definitely a face-
operation where there is to-face encounter. The lack of discretion in how to
direct contact between the provide the service makes this process a good
customer and server, but little example of a face-to-face, tight specs service
variation in the service system.
process-neither the customer
nor server has much
discretion in how the service
will be provided. As shown on
the Service System Design
tv1atrix, which type of service
is being delivered?

10. An important difference
between service and
manufacturing operations is
that customers introduce far
more variability into the
operations in a service
system. Which of the following
is not one of the basic types
of variation that customers
bring to a service system?
Environmental variation:
There are a number of types of variation that a
customer brings into a service system: arrival
variability, request variability, capability variability,
effort variability, and subjective preference
variability. Customers would not have an impact
on the environment of the system.
Flowcharts are a common
process design and analysis
tool used in both
manufacturing and services.
What is a key feature on
flowcharts used in service
operations that differentiates
between the front-office and
back-office aspects of the
system?
Line of visibility:
A characteristic of good service design is to keep
back-office operations out of sight of the
customer. On a flowchart, the separation between
front- and back-office operations is shown with
the line of visibility.
What are the "Three Ts"
relevant to poka-yokes in
service systems?
Task to be done, Treatment of the customer,
Tangible features of the service facility:
In working to fail-safe a service process, you need
to consider the task to be done, how the customer
is treated, and the tangible or environmental
features of the service facility.

11. A psychological therapist Personal attention approach :
treats patients according to This type of customized service focusing on the
their individual needs. Patients individual customer's needs is a good example of
are all treated in the same the personal attention service design
office on a scheduled basis.
Each patient's treatment is
developed and customized
for the individual according to
the therapist's professional
training. Which of the
contrasting service designs in
the chapter would best
describe the therapist's
service operation?
What is the term for a group
Work package:
Projects are often completed by a number of
of project activities that are
different organizational units. A work package is a
assigned to a single
group of activities combined to be assignable to a
organizational unit?
single organizational unit.
a project-management tool that illustrates the
relationships among all the activities involved in
Critical Path Method completing a project and identifies the sequence
of activities likely to take the longest to
complete.
The time that an activity can be delayed without
slack time
delaying the entire project; the difference
between the late and early start times of an
activity. (look at pg 51 for example/ explanation)

12. estimated learning
percentage
time it took the first unit/ time it took second unit
OR
last unit made/ first unit
Learning curve theory states that as output
doubles, the time to perform a task decreases by a
fixed amount. In this problem, as we produced the
second unit, we had doubled output from the first
unit, so we can make an estimate of the learning
percentage= (Unit 2 time)/(Unit l time)
expected production time for
second unit
hours*learning percentage
As we move from the first to the second unit of
production (thus doubling output) we expect the
time for the second unit to be equal to the time for
the first unit multiplied by the learning percentage:
160 X 83%: 132.8.