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Felcher & Sons Goes Global Upon graduating from university, Steve Bergman began his career as a management trainee at Felcher & Sons Ltd, a manufacturer of mid-priced office furniture.The firm has recently decided to expand overseas with manufacturing plants in Singapore and Thailand and sales offices in the Far East, Europe and the United States.In conjunction with this investment in new plants and technologies, the firm plans to develop an online presence that will enable customers to individually tailor the products they order from Felcher & Sons.Terry Tate, VP of Operations for Felcher & Sons, has been tasked with overseeing the development of these plants and new capabilities.Mr Tate has asked that Steve be assigned to him to help him in this process. -Refer to Felcher & Sons Goes Global (Scenario) .Mr Tate has been tasked with bringing these new plants into compliance with ISO 9000 standards.Mr Tate asks Steve if he is familiar with ISO 9000.Steve admits that while he remembers hearing about it in school, he is NOT 100 per cent sure.Mr Tate tells him that ISO 9000 is a(n) ________.


A) quality standard that establishes a goal of no more than 3.4 defects per 10,000 units
B) quality standard that establishes a goal of no more than 3.4 defects per 100,000 units
C) quality standard that establishes a goal of no more than 3.4 defects per 1,000,000 units
D) series of international quality management standards
E) export quality manufacturing standards mandated for US exporters

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

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'Productivity' includes the overall output of goods and services that is then divided by the inputs.

A) True
B) False

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According to the textbook, 'how a product looks and feels' is a description of the aesthetics dimension of product quality.

A) True
B) False

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All of the following are examples of inputs as described by an organisation's operation system EXCEPT ________.


A) capital
B) information
C) sales
D) materials
E) technology

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

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According to a survey of manufacturers, there were four primary benefits of value chain management: improved procurement, improved logistics, improved product development and improved customer profitability.

A) True
B) False

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The ________ standards have become the internationally recognised standard for evaluating and comparing companies in the global marketplace.


A) Six Sigma
B) ISO 9000
C) ISO 250
D) BS 5400
E) Seven Beta

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

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Organisational barriers that are among the most difficult obstacles for managers to handle include all of the following EXCEPT ________.


A) reluctance to shake up the status quo
B) security issues
C) refusal to share information
D) incompetent employees
E) both A and B

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

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Felcher & Sons Goes Global Upon graduating from university, Steve Bergman began his career as a management trainee at Felcher & Sons Ltd, a manufacturer of mid-priced office furniture.The firm has recently decided to expand overseas with manufacturing plants in Singapore and Thailand and sales offices in the Far East, Europe and the United States.In conjunction with this investment in new plants and technologies, the firm plans to develop an online presence that will enable customers to individually tailor the products they order from Felcher & Sons.Terry Tate, VP of Operations for Felcher & Sons, has been tasked with overseeing the development of these plants and new capabilities.Mr Tate has asked that Steve be assigned to him to help him in this process. -Refer to Felcher & Sons Goes Global (Scenario) .Mr Tate and Steve have scheduled a site visit to a nearby Dell Computer assembly facility in order to see firsthand many of the technologies available to Felcher & Sons.Dell Computer uses technologies such as computer-controlled factory equipment, industrial robots, bar code scanners and logistics software that enable them to manufacture, assemble and ship custom-designed computers in a very short time.Such technologies characterise ________, which give companies the ability to quickly readjust their assembly lines to make products to order.


A) design-to-order manufacturing techniques
B) new technological techniques
C) email customer specifications input
D) flexible manufacturing techniques
E) intellectual property techniques

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

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All of the following are mentioned in the textbook as obstacles in managing the value chain EXCEPT ________.


A) people
B) technology
C) cultural attitudes
D) required capabilities
E) organisational barriers

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

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Non-Deming On Monday, the big news arrived.Bob's company announced they would be implementing a Total Quality Management system in their company.Their goals, they said, were to 'plan for the now, impress stockholders and take advantage of this system for increasing short-term profits.Those who don't agree can begin looking for a new job'.Bob, along with everyone else, grumbled under his breath.What in the world was top management thinking? Their 'zero quality defects' program had failed and now they were jumping on this new bandwagon.Training was non-existent in the company and managers were fond of pushing responsibility for these programs down to the lowest level.Top management was happy with the quality of the product and now they wanted total quality concerning the employees.At lunch, he read the note board, which said, 'Statistical process control classes will begin immediately, see your supervisor for a training date'.Bob sighed and wondered what fad was next. -Refer to Non-Deming (Scenario) .Deming, unlike Bob's company, suggested that a company should ________ concerning the quality of their product.


A) strive for 5 per cent defects
B) allow for moderate defects
C) strive for zero defects
D) always be complacent
E) never be complacent

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

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Organisations with extensive and successful quality improvement programs tend to rely on two important people approaches: ________ and ________.


A) empowered work teams; cross-functional work teams
B) cross-functional work teams; closely supervised work teams
C) self-directed work teams; transgenerational work teams
D) closely supervised work teams; empowered work teams
E) transgenerational work teams; empowered work teams

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

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________ refers to the transformation process that converts resources such as labour and raw materials into finished goods and services.


A) Control management
B) Transformation management
C) Systems management
D) Operations management
E) Planning management

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

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ISO 9000 is a quality standard that establishes a goal of no more than 3.4 defects per million units or procedures.

A) True
B) False

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For organisations to improve productivity, they should focus on people and operations.

A) True
B) False

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In its entirety, the ________ can encompass the supplier's suppliers to the customer's customers.


A) supply chain
B) ethical chain
C) value chain
D) financial chain
E) technology chain

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

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According to the textbook, value chain management can be successful with or without leadership's support.

A) True
B) False

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Felcher & Sons Goes Global Upon graduating from university, Steve Bergman began his career as a management trainee at Felcher & Sons Ltd, a manufacturer of mid-priced office furniture.The firm has recently decided to expand overseas with manufacturing plants in Singapore and Thailand and sales offices in the Far East, Europe and the United States.In conjunction with this investment in new plants and technologies, the firm plans to develop an online presence that will enable customers to individually tailor the products they order from Felcher & Sons.Terry Tate, VP of Operations for Felcher & Sons, has been tasked with overseeing the development of these plants and new capabilities.Mr Tate has asked that Steve be assigned to him to help him in this process. -Refer to Felcher & Sons Goes Global (Scenario) .Having been assigned to help Mr Tate bring new plants into compliance with ISO 9000 standards, Steve asks Mr Tate why obtaining ISO 9000 is so important to Felcher & Sons Ltd.Mr Tate responds that ________.


A) this type of certification is becoming a prerequisite for doing business internationally
B) quality is often a big problem for overseas plants because labour is less highly skilled
C) US law requires manufacturers bring their operations into compliance by 2007
D) this quality goal establishes a goal of no more than 3.4 defects per million units or procedures
E) if implemented by Felcher, they will be one of the first in their field to do so, which will give them a distinct marketing advantage

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

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According to a survey of manufacturers who have embarked on value chain management initiatives, which of the following was NOT one of the primary benefits cited in the textbook?


A) increased sales
B) improved procurement
C) improved logistics
D) improved product development
E) enhanced customer order management

F) B) and E)
G) None of the above

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Which of the following obstacles is mentioned in the textbook as the most difficult for managers to handle?


A) required capabilities
B) organisational barriers
C) people
D) technology
E) cultural attitudes

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

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Which of the following is NOT mentioned as a main requirement for successful value chain management?


A) competition
B) technology investment
C) coordination
D) organisational attitudes
E) organisational processes

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

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