In: Operations Management
1. Based on Food and Drug Administration (FDA) regulations, a pharmaceutical company that requires that the quality control manager of a supplier report directly to the top leadership of that organization rather than the VP in charge of manufacturing or marketing is an example of which factor affecting work organization of that supplier?
a. Financial stability
b. Diversity and complexity of product line
c. Company size
d. Customer influences
2. Which of the following is most likely a problem with a functional organizational structure?
a. It separates employees from customers
b. Makes quality everyone’s job
c. It adapts to changes with ease
d. It recognizes internal customers
3. Processes that drive the creation of products and services, are critical to customer satisfaction, and have a large impact on the strategic goals of an organization are generally considered _____ processes.
4. _____ processes are those that are most important to an organization’s value creation processes, employees, and daily operations, but generally do not add value directly to the product or service.
Answer 1: Option B - Diversity and complexity of product line
Explanation: The supplier QC manager who is reporting to the top management of the manufacturing firm is an example of complexity and diversity of the product line where QC is a non-negotiable area.
Answer 2: Option A - It separates employees from customers
Explanation: In a functional organizational structure, the employees report to their functional head and there is no interaction with the customer. This hinders the quality being responsibility of everyone in the firm.
Answer 3: Option D - Strategic
Explanation: The strategic processes cater to the long term strategy of the firm, driver customer satisfaction and are essential for creation of product and services.
Answer 4: Option B – Support
Explanation: Support processes are those which are important for the value creation of the firm but do not directly affect or add value to the service or product.