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Chapter 19—Managing the Value Chain, Information Technology, and E-Business TRUE/FALSE 1. In an automobile company, the technical core includes the plants that manufacture automobiles, while the same in a university includes teaching and research. ANS: T PTS: 1 DIF: 1 REF: 570 NAT: AACSB Technology | Operations Management TYP: A 2. Technical management is the field of management that specializes in production of goods and services and uses special tools and techniques for solving production problems. ANS: F PTS: 1 DIF: 2 REF: 570 NAT: AACSB Technology | Operations Management TYP: F 3. The field of management that specializes in production of goods and services and uses special tools and techniques for solving production problems is called operations management. ANS: F PTS: 1 DIF: 2 REF: 570 NAT: AACSB Analytic | Operations Management TYP: F 4. More than one-half of all businesses, today, are service organizations and one-third of the U.S. workforce is employed in services. ANS: F PTS: 1 DIF: 3 REF: 571 NAT: AACSB Analytic | Operations Management TYP: F 5. A service organization is an organization that produces nonphysical goods that require customer involvement and cannot be stored in inventory. ANS: T PTS: 1 DIF: 1 REF: 571 NAT: AACSB Analytic | Operations Management TYP: F 563
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Page 1: Chapter 19

Chapter 19—Managing the Value Chain, Information Technology, and E-Business

TRUE/FALSE

1. In an automobile company, the technical core includes the plants that manufacture automobiles, while the same in a university includes teaching and research.

ANS: T PTS: 1 DIF: 1 REF: 570NAT: AACSB Technology | Operations Management TYP: A

2. Technical management is the field of management that specializes in production of goods and services and uses special tools and techniques for solving production problems.

ANS: F PTS: 1 DIF: 2 REF: 570NAT: AACSB Technology | Operations Management TYP: F

3. The field of management that specializes in production of goods and services and uses special tools and techniques for solving production problems is called operations management.

ANS: F PTS: 1 DIF: 2 REF: 570NAT: AACSB Analytic | Operations Management TYP: F

4. More than one-half of all businesses, today, are service organizations and one-third of the U.S. workforce is employed in services.

ANS: F PTS: 1 DIF: 3 REF: 571NAT: AACSB Analytic | Operations Management TYP: F

5. A service organization is an organization that produces nonphysical goods that require customer involvement and cannot be stored in inventory.

ANS: T PTS: 1 DIF: 1 REF: 571NAT: AACSB Analytic | Operations Management TYP: F

6. Purchasing management is the term for managing the sequence of suppliers and purchasers covering all stages of processing from obtaining raw materials to distributing finished goods to final consumers.

ANS: F PTS: 1 DIF: 2 REF: 572NAT: AACSB Technology | Operations Management TYP: F

7. An e-supply chain creates seamless, integrated link that stretches from customers to suppliers by establishing electronic linkages between the organization and these external partners for sharing and exchange of data.

ANS: T PTS: 1 DIF: 2 REF: 572NAT: AACSB Technology | Operations Management TYP: F

563

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564 Chapter 19/Managing the Value Chain, Information Technology, and E-Business

8. More companies are opting for a partnership approach with integration, which involves cultivating intimate relationships with a few carefully selected suppliers and collaborating closely to coordinate tasks that benefit both parties.

ANS: T PTS: 1 DIF: 2 REF: 573NAT: AACSB Analytic | Operations Management TYP: F

9. A facilities layout in which machines that perform the same function are grouped together in one location is called a process layout.

ANS: T PTS: 1 DIF: 2 REF: 573NAT: AACSB Analytic | Operations Management TYP: F

10. The product remains in one location and the required tasks and equipment are brought to it with a product layout.

ANS: F PTS: 1 DIF: 2 REF: 574NAT: AACSB Analytic | Operations Management TYP: F

11. The drawback to the process layout is that the actual path a product or service takes can be long and complicated.

ANS: T PTS: 1 DIF: 2 REF: 574NAT: AACSB Technology | Operations Management TYP: F

12. The product layout is efficient when the organization produces or provides small quantities of different products and services.

ANS: F PTS: 1 DIF: 2 REF: 575NAT: AACSB Technology | Operations Management TYP: F

13. A cellular layout is a facilities layout in which machines dedicated to sequences of production are grouped in accordance with group-technology principles.

ANS: T PTS: 1 DIF: 2 REF: 576NAT: AACSB Analytic | Operations Management TYP: F

14. The fixed-position layout is one in which the equipment remains in one location and the products are brought to it.

ANS: F PTS: 1 DIF: 2 REF: 576NAT: AACSB Analytic | Operations Management TYP: F

15. An example of a computerized manufacturing system (CMS) is a small to medium-size automated production line that can be adapted to produce more than one product line.

ANS: F PTS: 1 DIF: 2 REF: 577NAT: AACSB Analytic | Operations Management TYP: F

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16. Radio-frequency identification uses electronic tags that can identify and track individual items such as books, automobiles, or even people.

ANS: T PTS: 1 DIF: 2 REF: 577NAT: AACSB Technology | Operations Management TYP: F

17. Finished goods, work in process, and raw materials are three types of normal inventory.

ANS: T PTS: 1 DIF: 1 REF: 578NAT: AACSB Analytic | Operations Management TYP: F

18. Raw materials inventory includes the materials moving through the stages of the production process that are not completed products.

ANS: F PTS: 1 DIF: 1 REF: 578NAT: AACSB Analytic | Operations Management TYP: F

19. Employees are discouraged to participate in the improvement of quality under lean manufacturing.

ANS: F PTS: 1 DIF: 1 REF: 578NAT: AACSB Analytic | Operations Management TYP: F

20. Keeping inventories low is especially important to the high-tech firms, because so many of their products lose value quickly.

ANS: T PTS: 1 DIF: 2 REF: 579NAT: AACSB Analytic | Operations Management TYP: F

21. In operations management, problems can be hidden with large inventories.

ANS: T PTS: 1 DIF: 1 REF: 579NAT: AACSB Analytic | Operations Management TYP: F

22. JIT inventory systems are designed to reduce the level of an organization's inventory to zero.

ANS: T PTS: 1 DIF: 1 REF: 579NAT: AACSB Analytic | Operations Management TYP: F

23. Although information technology enhances collaborations within the organization, it has yet to be successful in enhancing collaborations between the organizations and external constituencies such as customers and suppliers.

ANS: F PTS: 1 DIF: 2 REF: 580NAT: AACSB Technology | Operations Management TYP: F

24. The process of systematically gathering knowledge, making it widely available throughout the organization, and fostering a culture of learning is known as knowledge management.

ANS: T PTS: 1 DIF: 2 REF: 580NAT: AACSB Technology | Operations Management TYP: F

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25. Wiki is a Web site that allows anyone with access, inside or outside the organization, to create, share, and edit content through a simple, browser-based user interface.

ANS: T PTS: 1 DIF: 2 REF: 581NAT: AACSB Technology | Operations Management TYP: F

26. A Web site that allows anyone with access, inside or outside the organization, to create, share, and edit content through a simple, browser-based user interface is called social networking.

ANS: F PTS: 1 DIF: 2 REF: 581NAT: AACSB Technology | Operations Management TYP: F

27. Data are facts that are raw, unsummarized, and unanalyzed.

ANS: T PTS: 1 DIF: 1 REF: 581NAT: AACSB Technology | Operations Management TYP: F

28. Data that are converted into meaningful and useful context for the receiver are called information.

ANS: T PTS: 1 DIF: 1 REF: 581NAT: AACSB Technology | Operations Management TYP: F

29. A computer-based system that provides information and support for effective managerial decision making refers to management information systems.

ANS: T PTS: 1 DIF: 1 REF: 581NAT: AACSB Technology | Operations Management TYP: F

30. Operations information systems typically support the strategic decision-making needs of higher-level managers.

ANS: F PTS: 1 DIF: 1 REF: 582NAT: AACSB Technology | Operations Management TYP: F

31. An executive information system is a management information system to support the information needs of senior managers dealing with the highest level of strategic decisions.

ANS: T PTS: 1 DIF: 1 REF: 582NAT: AACSB Technology | Operations Management TYP: F

32. Groupware is a software that displays documents on more than one users screen and allows all users to see changes or comments as they are made by one person.

ANS: T PTS: 1 DIF: 1 REF: 582NAT: AACSB Technology | Operations Management TYP: F

33. A collaborative work system is a computer-based information system that enables a novice computer user to more easily access complex and powerful computer software.

ANS: F PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management TYP: F

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34. A business performance dashboard is a system that pulls data from a variety of organizational systems and databases; gauges the data against key performance metrics; pulls out the right nuggets of information; and delivers information to managers in a graphical, easy-to-interpret format.

ANS: T PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management TYP: F

35. Process control system is a type of management information systems.

ANS: F PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management TYP: F

36. The use of a huge database that combines all of a company's data and allows users to access the data directly, create reports and obtain answers to what-if questions are known customer relationship management systems.

ANS: F PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management TYP: F

37. An enterprise resource planning system can become the backbone of an organization's operations.

ANS: T PTS: 1 DIF: 1 REF: 583NAT: AACSB Technology | Operations Management TYP: F

38. A Web log that allows individuals to post opinions and ideas is called a blog.

ANS: T PTS: 1 DIF: 2 REF: 585NAT: AACSB Technology | Operations Management TYP: F

39. Social networking is online interaction in a community format where people share personal information and photos, produce and share all sorts of information and opinions, or unify activists and raise funds.

ANS: T PTS: 1 DIF: 2 REF: 585NAT: AACSB Technology | Operations Management TYP: F

40. A Web log that allows individuals to post opinions and ideas refers to social networking.

ANS: F PTS: 1 DIF: 2 REF: 585NAT: AACSB Technology | Operations Management TYP: F

41. A blog is online interaction in a community format where people share personal information and photos, produce and share all sorts of information and opinions, or unify activists and raise funds.

ANS: F PTS: 1 DIF: 2 REF: 585NAT: AACSB Technology | Operations Management TYP: F

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42. ERP, when carefully implemented, can cut costs, increase cycle time, and reduce productivity.

ANS: F PTS: 1 DIF: 2 REF: 585NAT: AACSB Technology | Operations Management TYP: F

43. Peer to peer software allows individual computers to talk directly with other PC's without an intermediary.

ANS: T PTS: 1 DIF: 3 REF: 586NAT: AACSB Technology | Operations Management TYP: F

44. Most commonly today, e-business refers to electronic linkages over the Internet with customers, partners, suppliers, employees or other key constituents.

ANS: T PTS: 1 DIF: 2 REF: 586NAT: AACSB Technology | Operations Management TYP: F

45. An internal communications system that uses the technology and standards of the Internet but is accessible only to people within the company is called an extranet.

ANS: F PTS: 1 DIF: 1 REF: 587NAT: AACSB Technology | Operations Management TYP: F

46. An intranet is an external communications system that uses the Internet and is shared by two or more organizations.

ANS: F PTS: 1 DIF: 1 REF: 587NAT: AACSB Technology | Operations Management TYP: F

MULTIPLE CHOICE

1. The heart of the organization's production of its product or service is called thea. manufacturing department.b. technical core.c. technological environment.d. production sector.e. output.

ANS: B PTS: 1 DIF: 1 REF: 570NAT: AACSB Technology | Operations Management TYP: F

2. In a computer-manufacturing firm, the technical core includesa. the plants where the computers are manufactured.b. the human resources department.c. the research and development department.d. the marketing department.e. all of these.

ANS: A PTS: 1 DIF: 2 REF: 570NAT: AACSB Technology | Operations Management TYP: F

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3. ____ is the field of management that specializes in the physical production of goods or services, according to your textbook.a. Engineering managementb. Quantitative managementc. Operations managementd. Production managemente. Service management

ANS: C PTS: 1 DIF: 1 REF: 570NAT: AACSB Analytic | Operations Management TYP: F

4. The service sector has increased ____ times as fast as the manufacturing sector in the North American economy.a. 3b. 5c. 7d. 9e. 11

ANS: A PTS: 1 DIF: 3 REF: 571NAT: AACSB Analytic | Operations Management TYP: F

5. ____ refers to an organization that produces physical goods.a. A manufacturing organizationb. A service organizationc. An operations management organizationd. A physical organizatione. None of these

ANS: A PTS: 1 DIF: 1 REF: 571NAT: AACSB Analytic | Operations Management TYP: F

6. Which of the following is an organization that produces nonphysical outputs that require customer involvement and cannot be stored in inventory?a. Manufacturing organizationb. Service organizationc. Operations management organizationd. Non-inventory organizatione. Consumer-driven organization

ANS: B PTS: 1 DIF: 1 REF: 571NAT: AACSB Analytic | Operations Management TYP: F

7. Which is not a manufacturing organization?a. Ford Motor Companyb. McDonald'sc. General Motorsd. Levi Strausse. All of these are manufacturing organizations.

ANS: B PTS: 1 DIF: 2 REF: 571NAT: AACSB Analytic | Operations Management TYP: A

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8. In which of the following ways do service organizations differ from manufacturing organizations?a. In manufacturing organizations, the customer is directly involved in the production

process.b. In service organizations, employees are generally more satisfied.c. In manufacturing organizations, the manufactured product cannot be placed in inventory.d. In service organizations, the customer is directly involved in the production process.e. In service organizations, the final product can be stored in inventory.

ANS: D PTS: 1 DIF: 2 REF: 571NAT: AACSB Analytic | Operations Management TYP: F

9. Airlines, universities, and consulting companies are all examples ofa. service organizations.b. manufacturing organizations.c. production organizations.d. public sector organizations.e. industrial organization.

ANS: A PTS: 1 DIF: 2 REF: 571NAT: AACSB Analytic | Operations Management TYP: A

10. What do manufacturing organizations and service organizations have in common?a. Both types of organizations must obtain raw materials.b. Both types of organizations need to be concerned with scheduling.c. Both types of organizations should be concerned with quality and productivity.d. All of thesee. Both types of organizations must obtain raw materials and need to be concerned with

scheduling

ANS: D PTS: 1 DIF: 2 REF: 571-572NAT: AACSB Analytic | Operations Management TYP: F

11. Which of the following is the term for managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to final consumers?a. Procurement managementb. Supply chain managementc. Customer satisfactiond. Logisticse. Competitive advantage

ANS: B PTS: 1 DIF: 1 REF: 572NAT: AACSB Analytic | Operations Management TYP: F

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12. In a(n) ____ approach of supplier relationships, an organization spreads its purchases among many suppliers and encourages them to compete with one another.a. co-opb. outreachc. arm's lengthd. collaboratione. partnership

ANS: C PTS: 1 DIF: 1 REF: 573NAT: AACSB Analytic | Operations Management TYP: F

13. With integration, more companies are opting for a(n) ____, which involves cultivating intimate relationships with a few carefully selected suppliers and collaborating closely to coordinate tasks that benefit both parties.a. co-opb. outreachc. arm's lengthd. divesturee. partnership

ANS: E PTS: 1 DIF: 1 REF: 573NAT: AACSB Analytic | Operations Management TYP: F

14. A ____ is a facilities layout in which machines that perform the same function are grouped together in one location.a. fixed-position layoutb. one-position layoutc. process layoutd. product layoute. flexible manufacturing system

ANS: C PTS: 1 DIF: 1 REF: 573NAT: AACSB Analytic | Operations Management TYP: F

15. Which of the following is an advantage of the process layout?a. Potential economies of scaleb. It facilitates group problem solvingc. It facilitates teamworkd. All of thesee. Potential economies of scale and group problem solving

ANS: A PTS: 1 DIF: 2 REF: 573NAT: AACSB Analytic | Operations Management TYP: F

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16. A ____ is a facilities layout in which machines and tasks are arranged according to the sequence of steps in the production process.a. product layoutb. process layoutc. cellular layoutd. one position layoute. multi-layer layout

ANS: A PTS: 1 DIF: 1 REF: 574NAT: AACSB Analytic | Operations Management TYP: F

17. The product layout is most efficient whena. the organization produces huge volumes of custom products.b. the organization produces huge volumes of identical products.c. the flow of raw materials is constant.d. combined with a process layout.e. all of these

ANS: B PTS: 1 DIF: 2 REF: 575NAT: AACSB Analytic | Operations Management TYP: F

18. ____ is a facilities layout in which machines dedicated to sequences of production are grouped into cells in accordance with group-technology principles.a. A product layoutb. A process layoutc. A fixed-position layoutd. A one-position layoute. A cellular layout

ANS: E PTS: 1 DIF: 1 REF: 576NAT: AACSB Analytic | Operations Management TYP: F

19. Which of these is based on group-technology principles?a. A fixed-position layoutb. A cellular layoutc. A product layoutd. A process layoute. All of these

ANS: B PTS: 1 DIF: 1 REF: 576NAT: AACSB Analytic | Operations Management TYP: F

20. In ____, staffing flexibility enhanced.a. process layoutb. product layoutc. cellular layoutd. fixed-position layoute. one position layout

ANS: C PTS: 1 DIF: 2 REF: 576NAT: AACSB Analytic | Operations Management TYP: F

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21. ____ is a facilities layout in which the product remains in one position.a. A fixed-position layoutb. A product layoutc. A process layoutd. A cellular layoute. All of these

ANS: A PTS: 1 DIF: 1 REF: 576NAT: AACSB Analytic | Operations Management TYP: F

22. The fixed-position layout is necessary fora. long production runs.b. when the organization is producing in huge volumes.c. custom orders.d. mass production.e. small miniature items.

ANS: C PTS: 1 DIF: 2 REF: 576NAT: AACSB Analytic | Operations Management TYP: F

23. Which of the following refers to a small or medium-sized automated production line that can be adapted to produce more than one product line?a. Materials requirement planningb. Reliable production systemc. Flexible manufacturing systemd. Dependent demand systeme. MRPII

ANS: C PTS: 1 DIF: 2 REF: 577NAT: AACSB Analytic | Operations Management TYP: F

24. ____ uses electronic tags that can identify and track individual items.a. Flexible manufacturing systemb. Radio-frequency identificationc. Universal product code systemd. Lean manufacturing systeme. Finished-goods inventory system

ANS: B PTS: 1 DIF: 2 REF: 577NAT: AACSB Technology | Operations Management TYP: F

25. ____ is inventory consisting of items that have passed through the complete production process but have yet to be sold.a. Finished goods inventoryb. Work-in progress inventoryc. Raw material inventoryd. Possessed inventorye. Non-physical inventory

ANS: A PTS: 1 DIF: 1 REF: 578NAT: AACSB Analytic | Operations Management TYP: F

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26. Inventory includesa. finished goods.b. work in process.c. raw materials.d. all of these.e. work in process and raw materials.

ANS: D PTS: 1 DIF: 2 REF: 578NAT: AACSB Analytic | Operations Management TYP: F

27. ____ is defined as the goods that the organization keeps on hand for use in the production process up to the point of selling the final product to customers.a. Inventoryb. Finished-goodsc. Raw materialsd. Work in processe. All of these

ANS: A PTS: 1 DIF: 2 REF: 578NAT: AACSB Analytic | Operations Management TYP: F

28. ____ inventory is inventory consisting of the basic inputs to the organization's production process.a. Finished goodsb. Work-in progressc. Raw materiald. Possessede. Non-physical

ANS: C PTS: 1 DIF: 1 REF: 578NAT: AACSB Analytic | Operations Management TYP: F

29. Flour, sugar, and baking soda are ____ for a bakery.a. finished-goodsb. raw materialsc. work in processd. outputse. distribution goods

ANS: B PTS: 1 DIF: 2 REF: 578NAT: AACSB Analytic | Operations Management TYP: F

30. Which of the following statements about inventory is NOT true?a. Inventory sitting on the shop floor costs money.b. The best criterion for gauging the effectiveness of manufacturing operations is inventory.c. A company's worth can be measured by the size of its inventory.d. Large inventories hide operations management problems.e. None of these.

ANS: C PTS: 1 DIF: 2 REF: 579NAT: AACSB Analytic | Operations Management TYP: F

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31. Why do companies try to keep inventory low?a. It keeps production stable.b. Money that is not tied up with inventory can be used for other purposes.c. The lower the inventory, the more flexibility the company has.d. It keeps the employment in check.e. It keeps the raw materials market balanced.

ANS: B PTS: 1 DIF: 2 REF: 579NAT: AACSB Analytic | Operations Management TYP: F

32. Which of these are designed to reduce an organization's inventories to zero?a. Just-in-time systemsb. Stockless systemsc. Kanban systemsd. All of thesee. Just-in-time systems and stockless systems

ANS: D PTS: 1 DIF: 1 REF: 579NAT: AACSB Analytic | Operations Management TYP: F

33. ____ consists of hardware, software, telecommunications, database management, and other technologies.a. Microsoft Office Suitb. Information technologyc. Executive Information managementd. Process controlse. Data

ANS: B PTS: 1 DIF: 1 REF: 580NAT: AACSB Technology | Operations Management TYP: F

34. Which of the following refers to an effort to systematically gather knowledge, make it widely available in the organization, and foster a culture of learning?a. An ERPb. Knowledge managementc. Data miningd. Empowermente. Data warehousing

ANS: B PTS: 1 DIF: 1 REF: 580NAT: AACSB Technology | Operations Management TYP: F

35. Which of the following is a Web site that allows anyone with access, inside or outside the organization, to create, share, and edit content through a simple, browser-based user interface?a. Blogb. P2Pc. Social networkd. Wikie. OIS

ANS: D PTS: 1 DIF: 1 REF: 581NAT: AACSB Technology | Operations Management TYP: F

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36. A computer-based information system that provides information and supports effective managerial decision making is known as a(n) ____ information system.a. operationsb. managementc. peerd. sociale. uniform

ANS: B PTS: 1 DIF: 1 REF: 581NAT: AACSB Technology | Operations Management TYP: F

37. ____ refers to raw facts and figures that in and of themselves may not be useful.a. Informationb. Technologyc. Datad. E-commercee. EDI

ANS: C PTS: 1 DIF: 1 REF: 581NAT: AACSB Technology | Operations Management TYP: F

38. One of your supervisors gives you a report that analyzes the latest production counts. This supervisor is giving youa. data.b. timely updates.c. information.d. work that the supervisor should be doing.e. none of these.

ANS: C PTS: 1 DIF: 2 REF: 581NAT: AACSB Technology | Operations Management TYP: A

39. Which of the following systems typically support the strategic decision-making needs of mid-level and top management?a. Management informationb. Geographic informationc. Expertd. Operations informatione. Process control

ANS: A PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management TYP: F

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40. Frank is a production manager at a local potato chip company. He needs data on the anticipated number of orders and the current inventory. He is using a computer-based information system to help him make production decisions. What type of system is he using?a. A transaction processing systemb. An executive information systemc. A production information systemd. A management information systeme. None of these

ANS: D PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management TYP: A

41. Which of these is NOT a management information system?a. Groupwareb. Information-reporting systemc. Executive information systemd. Decision support systeme. Process control system

ANS: E PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management TYP: F

42. Which of the following is an interactive computer-based system that uses decision models and specialized databases to support organization decision makers?a. Expert systemb. Office automation systemc. Decision support systemd. Transaction processing systeme. GIS

ANS: C PTS: 1 DIF: 1 REF: 582NAT: AACSB Technology | Operations Management TYP: F

43. Which of these are management information systems to facilitate strategic decision making at the highest level of management?a. DSSsb. EISsc. IRSsd. TPSse. PCSs

ANS: B PTS: 1 DIF: 1 REF: 582NAT: AACSB Technology | Operations Management TYP: F

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44. A ____ is a system that pulls data from a variety of organizational systems and databases; gauges the data against key performance metrics; pulls out the right nuggets of information; and delivers information to managers in a graphical, easy-to-interpret format.a. blogb. business performance dashboardc. social networkd. wikie. performance taillight

ANS: B PTS: 1 DIF: 1 REF: 582NAT: AACSB Technology | Operations Management TYP: F

45. ____ displays a document on more than one user's screen and allows all the users to see changes or comments as they are made by one person.a. Intranetb. Groupwarec. Extranetd. Middlewaree. Hardware

ANS: B PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management TYP: F

46. A(n) ____ is also known as a group decision support system.a. expert systemb. collaborative work systemc. total organizational systemd. geographic information systeme. GIS

ANS: B PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management TYP: F

47. Which of the following is a networked information system that collects, processes, and provides information about an organization's entire enterprise, from identification of customer needs and receipt of orders to distribution of products and receipt of payments?a. Customer relationship management systemb. Business performance dashboardc. Enterprise resource planning systemd. Wikie. Performance taillight

ANS: C PTS: 1 DIF: 1 REF: 582NAT: AACSB Technology | Operations Management TYP: F

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48. ____ collects, processes, and provides information about an organization's entire enterprise, including orders, product design, production, purchasing, inventory, distribution, HR, receipt of payments, and forecasting of future demands.a. GISb. GDSSc. ERPd. EISe. DSS

ANS: C PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management TYP: F

49. According to MANAGER'S SHOPTALK in Chapter 19, tips for setting up performance dashboards include all of the following EXCEPT:a. don't contribute to information overloadb. let line managers and employees drive the developmentc. carefully asses who needs a dashboardd. don't forget the human touche. more information is always better

ANS: E PTS: 1 DIF: 2 REF: 583NAT: AACSB Technology | Operations Management TYP: F

50. Which of these is a Web log that allows individuals to post opinions and ideas?a. Blogb. P2Pc. Social networkd. Wikie. OIS

ANS: A PTS: 1 DIF: 1 REF: 585NAT: AACSB Technology | Operations Management TYP: F

51. Which of the following is online interaction in a community format where people share personal information and photos, produce and share all sorts of information and opinions, or unify activists and raise funds?a. Blogb. P2Pc. Social networkingd. Wikie. OIS

ANS: C PTS: 1 DIF: 1 REF: 585NAT: AACSB Technology | Operations Management TYP: F

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52. ____ is any business that takes place by digital processes over a computer network rather than in physical space.a. P2P Technologyb. Brick and mortarc. Recruitingd. Intranete. E-business

ANS: E PTS: 1 DIF: 2 REF: 586NAT: AACSB Technology | Operations Management TYP: F

53. ____ file sharing allows PCs to communicate directly with one another over the Internet, bypassing central databases, servers, and Web pages.a. B2Bb. C2Cc. P2Pd. C2Be. B2C

ANS: C PTS: 1 DIF: 2 REF: 586NAT: AACSB Technology | Operations Management TYP: F

54. Business exchanges that occur electronically refers toa. Internet.b. WWW.c. EDI.d. e-commerce.e. C2B.

ANS: D PTS: 1 DIF: 1 REF: 586NAT: AACSB Technology | Operations Management TYP: F

55. Which of the following is a computer network that uses Internet technology but limits access to all or some of the organization's employees?a. Extranetb. Middlewarec. Groupwared. Intranete. GDSS

ANS: D PTS: 1 DIF: 1 REF: 587NAT: AACSB Technology | Operations Management TYP: F

56. A(n) ____ is a computer network that uses Internet technology but links authorized users inside the company with certain outsiders such as customers or vendors.a. GISb. middlewarec. intranetd. groupwaree. extranet

ANS: E PTS: 1 DIF: 1 REF: 587NAT: AACSB Technology | Operations Management TYP: F

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CASE

Scenario - Larry Slaton

Larry Slaton is an executive with InfoTech Productions. This morning, Larry has been attending a top management meeting exploring the potential value of using a new computer system at InfoTech. The executive team has reached a consensus opinion that the new system should be able to increase the effectiveness and the efficiency of operations and services. Larry has been assigned to work directly with computer system vendors and to develop the best system for InfoTech.

1. As Larry has reviewed the development of computer technology, he recognizes that, of the following, the most complex hardware/software combination isa. a Transaction Processing System.b. an Executive Information System.c. an Office Automation System.d. a Production Information System.e. none of these.

ANS:b

PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management KEY: Scenario QuestionsTYP: A

2. Larry is negotiating with a computer software firm to develop an interactive CBIS that facilitates group communication and decision making. This software is normally classified asa. artificial intelligence.b. a collaborative work system.c. an expert system.d. an electronic data exchange.e. none of these.

ANS:b

PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management KEY: Scenario QuestionsTYP: A

COMPLETION

1. The heart of an organization's production of its product or service is known as the ____________________.

ANS: technical core

PTS: 1 DIF: 2 REF: 570NAT: AACSB Technology | Operations Management TYP: F

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582 Chapter 19/Managing the Value Chain, Information Technology, and E-Business

2. ____________________ is formally defined as the field of management that specializes in the production of goods and services and uses special tools and techniques for solving manufacturing problems.

ANS: Operations management

PTS: 1 DIF: 2 REF: 570NAT: AACSB Analytic | Operations Management TYP: F

3. ____________________ tools and techniques apply to services as well as manufacturing.

ANS: Operations management

PTS: 1 DIF: 2 REF: 570NAT: AACSB Analytic | Operations Management TYP: F

4. ____________________ organizations are those that produce physical goods.

ANS: Manufacturing

PTS: 1 DIF: 2 REF: 571NAT: AACSB Analytic | Operations Management TYP: F

5. An organization that produces nonphysical outputs that require customer involvement and cannot be stored in inventory is called a(n) ____________________ organization.

ANS: service

PTS: 1 DIF: 2 REF: 571NAT: AACSB Analytic | Operations Management TYP: F

6. ____________________ is the recognition of the important role of operations in organizational success and the involvement of operations managers in the organization's strategic planning.

ANS: Operations strategy

PTS: 1 DIF: 2 REF: 571NAT: AACSB Analytic | Operations Management TYP: F

7. ____________________ is the term for managing the sequence of suppliers and purchasers, covering all stages of processing from obtaining raw materials to distributing finished goods to final consumers.

ANS: Supply chain management

PTS: 1 DIF: 2 REF: 572NAT: AACSB Analytic | Operations Management TYP: F

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8. The most recent advances in ____________________ involve using Internet technologies to achieve the right balance of low inventory levels and customer responsiveness.

ANS: supply chain management

PTS: 1 DIF: 2 REF: 572NAT: AACSB Analytic | Operations Management TYP: F

9. Many supplier relationships used to be based on a(n) ____________________ approach, in which an organization spread purchases among many suppliers and encourages them to compete with one another.

ANS: arm's length

PTS: 1 DIF: 2 REF: 573NAT: AACSB Analytic | Operations Management TYP: F

10. With integration, more companies are opting for a(n) ____________________ approach, which involves cultivating intimate relationships with a few carefully selected suppliers and collaborating closely to coordinate tasks that benefit both parties.

ANS: partnership

PTS: 1 DIF: 2 REF: 573NAT: AACSB Analytic | Operations Management TYP: F

11. A facilities layout in which machines that perform the same function are grouped together in one location is known as a(n) ____________________.

ANS: process layout

PTS: 1 DIF: 2 REF: 573NAT: AACSB Analytic | Operations Management TYP: F

12. A facilities layout in which machines and tasks are arranged according to the sequence of steps in the production of a single product is called a(n) ____________________ layout.

ANS: product

PTS: 1 DIF: 2 REF: 574NAT: AACSB Analytic | Operations Management TYP: F

13. A facilities layout in which machines dedicated to sequences of production are grouped into cells in accordance with group-technology principles is referred to as a(n) ____________________ layout.

ANS: cellular

PTS: 1 DIF: 2 REF: 576NAT: AACSB Analytic | Operations Management TYP: F

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14. The ____________________ layout is one in which the product remains in one location, and tasks and equipment are brought to it.

ANS: fixed-position

PTS: 1 DIF: 2 REF: 576NAT: AACSB Analytic | Operations Management TYP: F

15. A small or medium-sized automated production line that can be adapted to produce more than one product line is known as a(n) ____________________.

ANS: flexible manufacturing system

PTS: 1 DIF: 2 REF: 577NAT: AACSB Analytic | Operations Management TYP: F

16. ____________________ is the goods the organization keeps on hand for use in the production process.

ANS: Inventory

PTS: 1 DIF: 2 REF: 578NAT: AACSB Analytic | Operations Management TYP: F

17. ____________________ inventory includes items that have passed through the entire production process but have not been sold.

ANS: Finished-goods

PTS: 1 DIF: 2 REF: 578NAT: AACSB Analytic | Operations Management TYP: F

18. ____________________ inventory includes the materials moving through the stages of the production process that are not completed products.

ANS: Work-in-process

PTS: 1 DIF: 2 REF: 578NAT: AACSB Analytic | Operations Management TYP: F

19. ____________________ inventory includes the basic inputs to the organization's production process.

ANS: Raw materials

PTS: 1 DIF: 2 REF: 578NAT: AACSB Analytic | Operations Management TYP: F

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20. ____________________ manufacturing is a manufacturing process using highly trained employees at every stage of the production process to cut waste and improve quality.

ANS: Lean

PTS: 1 DIF: 2 REF: 578NAT: AACSB Analytic | Operations Management TYP: F

21. ____________________ systems are designed to reduce the level of an organization's inventory to zero.

ANS: Just-in-time inventory, JIT inventory

PTS: 1 DIF: 2 REF: 579NAT: AACSB Analytic | Operations Management TYP: F

22. An organization's ____________________ consists of the hardware, software, telecommunications, database management, and other technologies it uses to store data and make them available in the form of information for organizational decision making.

ANS: information technology

PTS: 1 DIF: 2 REF: 580NAT: AACSB Technology | Operations Management TYP: F

23. Efforts to systematically gather knowledge, make it widely available in the organization, and foster a culture of learning is called ____________________.

ANS: knowledge management

PTS: 1 DIF: 2 REF: 580NAT: AACSB Technology | Operations Management TYP: F

24. ____________________ is a Web site that allows anyone with access, inside or outside the organization, to create, share, and edit content through a simple, browser-based user interface.

ANS: Wiki

PTS: 1 DIF: 2 REF: 581NAT: AACSB Technology | Operations Management TYP: F

25. ____________________ are unsummarized and unanalyzed facts and figures.

ANS: Data

PTS: 1 DIF: 2 REF: 581NAT: AACSB Technology | Operations Management TYP: F

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26. Data that have been converted into a meaningful and useful context for the receiver is called ____________________.

ANS: information

PTS: 1 DIF: 2 REF: 581NAT: AACSB Technology | Operations Management TYP: F

27. A(n) ____________________ is a computer-based system that provides information and support for effective managerial decision making.

ANS: management information system, MIS

PTS: 1 DIF: 2 REF: 581NAT: AACSB Technology | Operations Management TYP: F

28. ____________________ are interactive, computer-based information systems that rely on decision models and specialized databases to support decision makers.

ANS: Decision support systems, DSSs

PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management TYP: F

29. ____________________ are management information systems to facilitate strategic decision making at the highest level of management.

ANS: Executive information systems, EIS

PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management TYP: F

30. A(n) ____________________ is a system that pulls data from a variety of organizational systems and databases; gauges the data against key performance metrics; pulls out the right nuggets of information; and delivers information to managers in a graphical, easy-to-interpret format.

ANS: business performance dashboard

PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management TYP: F

31. A networked information system that collects, processes, and provides information about an organization's entire enterprise, from identification of customer needs and receipt of orders to distribution of products and receipt of payments is called a(n) ____________________.

ANS: enterprise resource planning System, ERP System

PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management TYP: F

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32. An interactive computer-based system that facilitates group communication and decision making is known as a(n) ____________________.

ANS: groupware

PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management TYP: F

33. ____________________ is software that displays documents on more than one user's screen and allows all users to see changes or comments as they are made by one person.

ANS: Groupware

PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management TYP: F

34. A(n) ____________________ is a Web log that allows individuals to post opinions and ideas.

ANS: blog

PTS: 1 DIF: 2 REF: 585NAT: AACSB Technology | Operations Management TYP: F

35. ____________________ networking is online interaction in a community format where people share personal information and photos, produce and share all sorts of information and opinions, or unify activists and raise funds.

ANS: Social

PTS: 1 DIF: 2 REF: 585NAT: AACSB Technology | Operations Management TYP: F

36. ____________________ file sharing allows PCs to communicate directly with one another over the Internet, bypassing central databases, servers, control points, and Web pages.

ANS: Peer-to-peer, P2P

PTS: 1 DIF: 2 REF: 586NAT: AACSB Technology | Operations Management TYP: F

37. Any business that takes place by digital processes over a computer network rather than in physical space refers to ____________________.

ANS: e-business

PTS: 1 DIF: 2 REF: 586NAT: AACSB Technology | Operations Management TYP: F

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38. ____________________ refers to business exchanges that occur electronically.

ANS: E-commerce

PTS: 1 DIF: 2 REF: 586NAT: AACSB Technology | Operations Management TYP: F

39. A computer network that uses internet technology but limits access to all or some of the organization's employees is referred to as a(n) ____________________.

ANS: intranet

PTS: 1 DIF: 2 REF: 587NAT: AACSB Technology | Operations Management TYP: F

40. A computer network that uses internet technology but links authorized users inside the company with certain outsiders such as customers or vendors is called a(n) ____________________.

ANS: extranet

PTS: 1 DIF: 2 REF: 587NAT: AACSB Technology | Operations Management TYP: F

SHORT ANSWER

1. List the three types of management information systems.

ANS:(1) decision support systems, (2) executive information systems, and (3) groupware.

PTS: 1 DIF: 2 REF: 582NAT: AACSB Technology | Operations Management TYP: F

ESSAY

1. In terms of goods produced, what are the basic differences between a manufacturing organization and a service organization?

ANS:A manufacturing organization produces physical tangible goods that can be stored in inventory. A service organization produces nonphysical goods that require customer involvement and cannot be stored in inventory. Furthermore, unlike the manufacturing customer, the service customer is involved in the actual production process.

PTS: 1 DIF: 2 REF: 571NAT: AACSB Analytic | Operations Management TYP: F

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2. Name and briefly describe the four most common types of facilities layouts.

ANS:The four most common types of facilities layouts are process, product, cellular, and fixed position. With process layout, machines that perform the same function are grouped together in the same location. With product layout, machines and tasks are arranged according to the sequence of steps in the production of a single product. With cellular layout, machines dedicated to the sequences of production are grouped into cells in accordance with group-technology principles. Finally, with fixed position layout the product remains in one location and the required tasks and equipment are brought to it.

PTS: 1 DIF: 2 REF: 573-576NAT: AACSB Analytic | Operations Management TYP: F

3. Differentiate between data and information.

ANS:The primary difference between data and information is the level of value. Data has a lower value because it is raw, unsummarized, and unanalyzed facts. By comparison, information consists of data that are meaningful and can alter the receiver's understanding.

PTS: 1 DIF: 1 REF: 581NAT: AACSB Technology | Operations Management TYP: F

4. Discuss the new generation of IT: Blogs and social networking. What are your personal experiences with these technologies?

ANS:A Blog is a Web log that allows individuals to post opinions and ideas.

Social networking is online interaction in a community format where people share personal information and photos, produce and share all sorts of information and opinions, or unify activists and raise funds.

PTS: 1 DIF: 2 REF: 585NAT: AACSB Technology | Operations Management TYP: F

5. Differentiate between intranet and extranet.

ANS:Intranet is a computer network that uses Internet technology but limits access to all or some of the organization's employees. An extranet also uses Internet technology but links authorized users inside the company with certain outsiders such as customers or vendors.

PTS: 1 DIF: 2 REF: 587NAT: AACSB Technology | Operations Management TYP: F