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The process of completely overhauling an operation to achieve the greatest possible benefits for the customer and the company is known as


A) configuring.
B) standardizing.
C) innovating.
D) reengineering.
E) integrating.

F) A) and D)
G) B) and E)

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Scenario D.As a manager working directly under the company president,Chloe has been given the assignment of transitioning the firm from a slow-moving bureaucracy to an agile,responsive organization.Chloe knows that the structure an organization adopts to accomplish agility will depend on its strategy,its customers,and its technology. -Chloe's boss is considering forming a strategic alliance to enter a new market.In order to be successful at doing so,Chloe recommends that before moving forward with the strategic alliance,her boss must first


A) consider the other firm's area of expertise.
B) be certain he would remain the president.
C) develop a worldwide network with the other firm.
D) ensure that the other firm uses authority as he does.
E) find a decentralized organization with which to partner.

F) B) and C)
G) A) and B)

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A value chain is the sequence of activities that flow from raw materials to the delivery of a good or service,with value subtracted at each step.

A) True
B) False

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Scenario E.The top management of EatWell,a snack food manufacturer,sits down for an annual meeting.The chairperson,Janelle,wants to create processes that will help the company interact with customers and gather knowledge of their wants,needs,and buying patterns.She also wants to improve internal quality management by using some ideas from Deming's "14 points" theory.The president of the company,Lee,wants to use an approach to management that helps to attain customer satisfaction through tools that deliver high-quality goods.The senior managers put forward the idea that the organization should adopt a method to analyze the causes of defects in products that need to be eliminated to improve customer satisfaction. -In order to fulfill senior management's aim of adopting a method to analyze the causes of defects in products that need to be eliminated to improve customer satisfaction,the company might consider a quality initiative such as


A) six sigma.
B) just-in-time.
C) downsizing.
D) rightsizing.
E) logistics.

F) A) and E)
G) C) and D)

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The "sigma" in the term "six sigma quality" refers to Greek letter used to designate the estimated standard deviation or variation in a process.The higher the sigma level,the ________ and the higher the quality.


A) higher the amount of variation
B) lower the quotient of indeterminacy
C) higher the index of deviation
D) lower the amount of variation
E) higher the quotient of indeterminacy

F) A) and D)
G) A) and C)

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In Japanese operations strategy,kaizen refers to


A) zero defects.
B) total quality management.
C) value chain.
D) continuous improvement.
E) rightsizing.

F) C) and D)
G) D) and E)

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In a small batch organization,


A) the structure is likely to be mechanistic.
B) decision making is typically centralized.
C) people tend to make mutual adjustments.
D) procedures are formal and rule-oriented.
E) the emphasis is on low variety and high volume.

F) B) and E)
G) A) and D)

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In order to develop a world-class capability,a company should first


A) strive to win market share for specific products.
B) purchase more capital assets to improve profits.
C) hire more people in anticipation of economic downturns.
D) commit to excellence and leadership in capabilities.
E) be maintaining and growing the stock price.

F) All of the above
G) C) and D)

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Briefly discuss the key organizational elements of time-based competition.

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Time-based competition (TBC)refers to st...

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A company that provides goods or services in very low volume or small batches is called a ________ shop.


A) job
B) batch
C) small
D) custom
E) specialty

F) A) and E)
G) C) and D)

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General Motors and Chipotle have production processes that tend to be standardized,and all customers receive similar if not identical products.These organizations are examples of ________ technologies.


A) large batch
B) small batch
C) continuous process
D) large process
E) small process

F) C) and D)
G) None of the above

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In order to meet six sigma standards,the figure 99.99966 is significant because that is the percentage of


A) team members trained in total quality management.
B) products delivered through the value chain.
C) time that a product or process should be defect-free.
D) time that kaizen,or continuous improvement,is maintained.
E) products that comply with ISO 9001.

F) C) and D)
G) B) and C)

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Rightsizing refers to


A) achieving the size at which the company performs most effectively.
B) guilt on the part of management for downsizing departments within a company.
C) a slump in market share after a new company enters the market.
D) lack of motivation in the people who got laid off to find new jobs.
E) distress experienced by employees who have been laid off.

F) B) and E)
G) A) and E)

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An integrative approach to management that supports the attainment of customer satisfaction through a wide variety of tools and techniques,resulting in high-quality goods and services is


A) total quality management.
B) customer relationship management.
C) value-added manufacturing.
D) mass customization methodology.
E) computer-integrated manufacturing.

F) C) and D)
G) A) and B)

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Compare and contrast the three types of technology configuration.Give examples of each.

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Student answers and examples will vary b...

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If jobholders rely more heavily on judgment than on rules,the organization most likely has a(n) ________ structure.


A) mechanistic
B) hierarchical
C) matrix
D) organic
E) departmentalized

F) C) and E)
G) B) and E)

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To be successful,partners in a strategic alliance must pay the most attention to the ________ the partnership.


A) human relationships in
B) financial aspects of
C) public relations side of
D) hierarchical structure of
E) lines of authority in

F) A) and B)
G) A) and E)

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Scenario C.Goal! Sportswear,a maker of clothing for soccer players,buys textiles made in South Asia,which are then sewn into jerseys,shorts,and other items of sportswear at factories in East Asia.Recently,Darius,the company president,has received a large volume of negative emails from customers concerned with allegations of unfair labor practices at these facilities,and therefore the company is reviewing its entire process.Darius has appointed Millie,Avi,and Asher,three company managers,to assess the company's choices as to textile suppliers and production facilities and to examine what the customers-both amateur and professional soccer players-are looking for in the company's products. -When Millie reviews the process of producing the actual sportswear,the part of the value chain she is most likely to look at is


A) inbound logistics.
B) operations.
C) outbound logistics.
D) marketing and sales.
E) research and development.

F) A) and B)
G) B) and D)

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A strategic alliance can be made with just about any other organization except one's competitors.

A) True
B) False

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Among the support activities in the generic value chain is


A) research and development.
B) operational management.
C) outbound logistics.
D) technology development.
E) marketing and sales.

F) C) and E)
G) A) and B)

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