Chapter 4:TB MGMT – Flashcards
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Economies of scale may be found A.in several of a company's departments. B.only in manufacturing operations. C.principally in research and development activities. D.primarily in administrative areas of a company. E.none of these choices.
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In several of a company's departments
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Learning Effects are a result of A.automation. B. learning by doing. C.sound product planning tactics. D.diseconomies of scale. E.product standardization.
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Learning by doing
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The experience curve refers to the A.learning by doing technique. B.company's overall experience in a particular industry. C.systematic lowering of the cost structure and unit cost reductions. D.diseconomies of scale caused by inexperienced workers. E.increases in unit costs experienced over time.
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Systematic Lowering of the cost structure and unit cost reductions
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Managers should not become complacent about efficiency-based cost advantages because A.neither learning effects nor economics of scale go on forever. B. the experience curve is likely to bottom out at some point. C. cost advantages gained from experience effects can be made obsolete by the development of new technologies. D.all of these choices. E.none of these choices
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All of these choices
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Flexible production technology is sometimes referred to as A.just-in-time manufacturing. B.quick technology. C.lean production. D.stable production. E.unscheduled manufacturing.
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Lean Production
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The marketing strategy that a company adopts A.has little impact on a company's efficiency and cost structure. B.has an effect on efficiency and cost structure, but the extent of this effect cannot be determined. C.should not take into account the impact the strategy has on efficiency or cost structure. D.can have a major impact on efficiency and cost structure. E. none of these choices
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Can have a major impact on efficiency and cost structure.
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Effective employee training within an organization A.results in more productive employees. B.increases employee efficiency. C.raises employee skill levels. D.enables employees to perform tasks faster. E.all of these choices
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All of these choices
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The use of self-managing teams A.is limited to only very large organizations. B.requires members to coordinate their own activities and make decisions. C.typically increases the need for supervisors. D.all of these choices. E.none of these choices.
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Requires members to coordinate their own activities and make decisions
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Self-managing work teams A.increase per-unit costs of manufactured items. B. perform all workplace tasks except the making of hiring decisions. C.increase the cycle time of manufacturing items. D.require greater task specialization by members of the team. E.tend to increase productivity.
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Tend to increase productivity
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Pay for performance tends to A.increase per-unit costs. B. decrease employee output. C.have little effect on employee output. D.be used only for individual workers, not for teams. E. increase employee output.
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increase employee output
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A company's infrastructure includes the company's A.organization structure, culture, and style of leadership. B.organization structure and morale level. C.culture and productivity levels. D.overall profitability levels. E.short-run objectives.
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Organization Structure Culture and Style of Leadership
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The resources and capabilities that lead to the formation of distinctive competencies are mostly created at which level of the organization? A.Business B. Global C. Industry D. Functional E. Corporate
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Functional
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Economies of scale are A.unit cost reductions associated with learning effects. B.unit cost reductions associated with superior customer responsiveness. C.realized when output is as large as possible. D.realized when the point of maximum efficient scale is reached. E.unit cost reductions associated with a large-scale output.
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Unit cost reductions associated with a large-scale output
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____ refers to unit cost increases associated with a large scale of output. A.Economies of scale B.Learning effects C.Diseconomies of scale D.Flexible manufacturing E.Mass customization
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Diseconomies of scale
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Learning effects A.result in unit manufacturing costs declining by a certain amount each time output is doubled. B. result in unit manufacturing costs declining by a certain amount each time accumulated output is reduced. C.are more significant when simple steps in an assembly process are repeated. D.are more significant when a technologically complex task is repeated. E.lead to economies of scale.
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Are more significant when a technologically complex task is repeated.
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The experience curve concept A.is a result of a combination of learning effects and economies of scale. B.is a result of a combination of learning effects and economies of scale and suggests that unit manufacturing costs decline by a certain amount each time output is doubled. C.suggests that achieving low costs allows a firm to charge a premium price. D.is most important for specialized or customized production. E.suggests that unit manufacturing costs decline by a certain amount each time output is doubled.
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is a result of a combination of learning effects and economies of scale and suggests that unit manufacturing costs decline by a certain amount each time output is doubled.
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Which of the following is a tactical step for getting down the experience curve ahead of competitors? A.Premium pricing to create an image of uniqueness in consumers' minds B.Pursuing a distinctive competence in focused marketing C.Constructing a manufacturing plant of less than minimum efficient scale D.Using aggressive pricing and promotions to expand sales volume as rapidly as possible E.Making the assembly of the product as complex as possible because this results in greater learning effects
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Using aggressive pricing and promotions to expand sales volume as rapidly as possible
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Traditional manufacturing A.is no longer used. B.requires a tradeoff between unit costs and product variety. C.has higher unit costs than does flexible manufacturing. D.produces a variety of products in high volume. E.has higher unit costs than does flexible manufacturing and requires a tradeoff between unit costs and product variety.
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Requires a trades off between unit costs and product variety.
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Flexible manufacturing technologies allow companies to A.mass-produce a standardized output at a low delivered cost. B. avoid plant-level diseconomies of scale. C.produce small batches of high-quality customized products at a high cost. D.ride down the experience curve more rapidly than competitors. E.produce small batches of customized products at a relatively low cost.
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produce small batches of customized products at a relatively low cost
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Which of the following statements concerning customer defection rates is incorrect? A.Defection rates are determined by customer loyalty. B.The longer a company holds on to a customer, the greater is the volume of customer-generated unit sales and the lower is the average cost of each sale. C. Lowering customer defection rates allows a company to achieve a lower cost structure. D.Research and development should address the issue of customer loyalty in product development. E.There is a positive relationship between the length of time that a customer stays with the company and profit per customer.
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Research and development should address the issue of customer loyalty in product development
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Just in time inventory systems A.are used only by manufacturing firms. B.are implemented primarily by the manufacturing function. C.have components arrive at a manufacturing plant just in time to enter the production process. D.are valuable when there is a labor dispute with a key supplier. E. always keep extra inventory on hand for emergencies.
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have components arrive at a manufacturing plant just in time to enter the production process.
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Which of the following is not correct concerning self-managed teams? A.Increased responsibility and empowerment are seen as motivators. B.Performance bonuses linked to team production and quality targets are seen as motivators. C.Cost savings arise from eliminating supervisors. D. A flatter organizational hierarchy is created. E. All of these choices.
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All of these choices
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Which of the following is not one of the principles commonly found in companies that have successfully embraced the TQM philosophy? A. Building an organizational commitment to quality B.Finding ways to measure quality C.A strong customer focus D.Close supplier relations E.Creating a separate quality department within the firm
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Creating a separate quality department within the firm
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Formulating a plan to close the quality gap A.requires a strong customer focus. B. is the exclusive responsibility of top management. C. is an example of finding ways to measure quality. D.is the responsibility of manufacturing. E.should be done by qualified TQM consultants.
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Requires a strong customer focus
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Research and development (R&D) can help a company improve quality by A.designing products that are easy to manufacture. B.pursuing economies of scale. C.developing new products. D.integrating R&D with marketing. E.integrating R&D with materials management.
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Designing products that are easy to manufacture
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Limiting the number of suppliers from many to a manageable number A.is the responsibility of top management. B. may help a firm to achieve superior quality. C. may help a firm to achieve superior innovation. D.is the responsibility of research and development. E. is the responsibility of manufacturing.
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May help a firm to achieve superior quality
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Employee productivity is A.a function of employee socialization. B.one of the key determinants of a company's efficiency, cost structure, and profitability. C.not subject to measurement. D.typically not sustainable in the long run. E.none of these choices.
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One of the key determinants of a company's efficiency, cost structure and profitability.
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A company's hiring strategy A.directly affects employee productivity. B. has little effect on employee productivity. C. does not relate to profitability. D.is not part of the company's overall human resource strategy. E.None of these choices.
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directly affects employee productivity
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Quality can best be thought of as A.product usefulness. B. quality as reliability and quality as excellence. C.product innovation. D.a matter for a company's managers to decide for themselves without external input. E.a matter for the marketing function of a company to decide.
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Quality as reliability and quality as excellence
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The philosophy underlying TQM includes which of the following? A.Improved quality results in cost decreases. B.Better quality leads to higher market share. C.Better quality increases a company's profitability. D.Management should create an environment in which employees do not fear expressing themselves. E.All of these choices
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all of these choices
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The role played by infrastructure leadership in implementing reliability methodologies includes which of the following? A.Providing leadership and commitment quality B.Finding ways to manage quality C.Setting goals and creating incentives D.Soliciting input from employees E.All of these choices
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all of these choices
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Quality improvement efforts should focus on the A.product. B.external environment. C.customer. D.material costs. E.internal operations.
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Customer
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According to the TQM philosophy, who should be the primary evaluator of product quality? A.Top management B.Manufacturing workers C. Quality consultants D.The federal government E.Customers
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Customers
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Quality circles are a valuable tool for TQM because they A.solicit employee suggestions for improvement. B.identify and rework defective products. C.are used by top managers to communicate their intentions to workers. D.design high-quality products. E.survey customer attitudes about quality.
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Solicit Employee suggestions for improvement
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When a company successfully implements Six Sigma quality, how many units will be defective? A.17% (one-sixth of the units) B. 6% C.0.6% D.Three per million E.Three per 10 million
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Three per million
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Poor commercialization of new products A.is the result of inefficient manufacturing technology. B.occurs when a company markets a product for which there is not enough demand. C.occurs when a product is not well adapted to a customer's needs. D.is due to poor quality. E.is the result of uncertainty.
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Occurs when a product is not well adapted to a customer's needs
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If a product is to be properly commercialized, there must be integration between A.research and development (R&D) and marketing. B. R&D and materials management. C. finance and marketing. D.marketing and after-sales support. E. marketing and materials management.
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Research and development and marketing
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The concept of the development funnel suggests that A.senior managers should decide whether to accept or reject a project at the end of the idea generation phase. B.senior managers should decide whether to accept or reject a project at the end of the project refinement phase. C.cross-functional teams should decide whether to accept or reject a project at the end of the idea generation phase. D.cross-functional teams should decide whether to accept or reject a project at the end of the project refinement phase. E.project proposals should be implemented by the marketing function.
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.senior managers should decide whether to accept or reject a project at the end of the project refinement phase.
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Which of the following is one of the important skills required for effective project management? A.Ability to generate as many good ideas as possible B.Ability to select among competing projects at an early stage of development so that the most promising receive funding and potential costly failures are killed off C.Ability to minimize time to market D.All of these choices E.None of these choices
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All of these choices
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Which of the following is not a benefit of tight cross-functional integration among research and development (R&D), production, and marketing? A.New products are designed for ease of manufacture. B.Development costs are kept in check. C.Product development projects are driven by company innovations. D.Time to market is minimized. E.Customer needs are considered in the product development process.
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Product development projects are driven by company innovations.
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A computer manufacturer allows scientists and engineers a certain amount of company time to work on independent research projects. This company is trying to A.achieve superior innovation. B. achieve superior quality. C.achieve superior efficiency. D.achieve superior customer responsiveness. E.minimize the time to market.
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Achieve superior innovation
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Marina's new paint formulation builds on other product innovations to create paint with fewer toxic fumes. Marina's new paint is A.lower cost. B.poorly commercialized. C.efficient. D.a quantum innovation. E.an incremental innovation.
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an incremental innovation
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Which of the following is not a product attribute? A.Form B.Features C.Style D.Price E.Reliability
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Price
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The failure rate of innovative products is A.high. B.low. C. consistent with failure rates in other areas of a company's operations. D.moderate. E.too difficult to assess.
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High
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Instead of completing one task before starting another, Perry's team begins each task as soon as possible, allowing tasks to overlap where possible. Perry's team is using A.a self-managing team. B.a sequential process. C.TQM. D.customization. E.a partly parallel process.
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A partly parallel process
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Which of the following recommendations would not be appropriate for a manager who was starting a cross-functional product- development team? A.Let the team members co-manage the team. B.Locate team members in the same physical space. C.Allow the team to develop its own communication and conflict resolution processes. D.Compose the team with members from each of the key functional areas. E.Give the team the task of developing one project all the way from initial idea to market introduction.
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Let the team members co-manage the team
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Which of the following statements about customer focus is false? A.It must start at the top of the organization. B.It is a central part of TQM. C. It can be facilitated by soliciting feedback from the customer. D. It requires that all employees see the customer as the focus of their activity. E. It can be achieved by mass customization.
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It can be achieved by mass customization
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Which of the following trends has led to the fragmentation of many consumer markets? A.Self-managing teams B.Project management C.TQM D.Customization C.Increased response time
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Customization
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Customer defection rates are A.a reflection of customer loyalty. B.an indication of a company's ability to satisfy its customers. C. important to consider because of their potential impact on advertising and marketing costs. D.an important consideration because of their effect on sales volumes. E.all of the above.
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All of the above
