Chapter 2: Operations Strategy and Competitiveness

Productivity

A measure of how efficiently an organization converts inputs into outputs.

Total productivity

Productivity computed as a ratio of output to all organizational inputs.

Partial productivity

Productivity computed as a ratio of output to only one input (e.g., labor, materials, machines).

Multifactor productivity

Productivity computed as a ratio of output to several, but not all, inputs

Productivity is essentially a) a scorecard of how efficiently resources are used b) the current business fad c) a balance scorecard metric d) measure of resource effectiveness e) something to fill out managers reports

a scorecard of how efficiently resources are used

Which of the following would not be considered a core competency that a company might have? a) skills in attracting and raising capital b) an inefficient distribution system c) quality control techniques d) a highly trained workforce e) use of information technology

an inefficient distribution system

Once a business strategy has been developed: a) an operations strategy must be formulated b) contracting with external sources must begin c) insourcing will be conducted d) competition must be identified e) service prices are established

an operations strategy must be formulated

Order winners and qualifiers: a) only matter when responding to formal competitive bid requests b) are consistent between manufacturing and service organizations c) change over time d) only apply to quasi-manufacturing firms e) remain constant over time

change over time

The process of monitoring the external environment is called what? a) environmental inspection b) environmental perusal c) environmental scrutiny d) environmental examination e) environmental scanning

environmental scanning

Decisions regarding which of the following are NOT part of the production process infrastructure? a) organization of workers b) worker pay c) quality control measures d) facilities e) management policies

facilities

Empire West displays what by specializing in making a wide variety of products? a) quality b) flexibility c) SCM d) outsourcing e) efficiency

flexibility

Highly-skilled hourly workers would be MOST needed by companies employing which of the following competitive priorities? a) flexibility b) cost c) location d) development speed e) time

flexibility

Which of the following competitive priorities typically requires the use of more general-purpose equipment? a) time b) flexibility c) technology d) cost e) quality

flexibility

Which of the following is NOT described in the chapter as one of the major environmental trends that firms should monitor? a) economic trends b) marketplace trends c) social trends d) political trends e) global climate trends

global climate trends

Which type of technology has had the greatest impact on business? a) safety technology b) information technology c) environmental technology d) product technology e) process technology

information technology

Operations decisions related to the planning and control systems of the operation, such as organization of operations, skills and pay of workers, and quality measures. a) infrastructure b) structure

infrastructure

When does productivity increase? a) inputs increase while outputs remain the same b) inputs decrease while outputs remain the same c) inputs and outputs increase proportionally d) inputs and outputs decrease proportionally e) outputs decrease while inputs remain the same

inputs decrease while outputs remain the same

How does Federal Express maintain its ability to compete on time during peak demand periods? a) it purchases more planes b) it subcontracts overload to other firms c) it purchases more vans d) overtime e) it uses a very flexible part-time workforce

it uses a very flexible part-time workforce

Consider a pizza parlor. Which of the following would not be a valid productivity measure? a) pizzas produced / cost of workers and ingredients b) pizzas produced / number of workers used c) pizzas produced / number of ovens d) pizzas produced / cost of all inputs used e) labor hours / pizzas produced

labor hours/ pizza produced

Vericol, Inc. manufactures drugs using workers and automated machines. The firm has decided to replace two workers with a new machine, while the output per day is not expected to change. Which of the following cannot be true? a) machine productivity will decrease b) multifactor productivity will decrease c) multifactor productivity will increase d) labor productivity will decrease e) labor productivity will increase

labor productivity will decrease

Decisions regarding which of the following are not part of the production process structure? a) management policies b) robots c) facilities d) flexible manufacturing system (FMS) machines e) flow of goods and services through the facility

management policies

Which of the following is not typically considered to be a core competency? a) facilities b) technology c) market understanding d) mission e) workforce

mission

A manager has just replaced three workers with a machine that is cheaper to operate than the cost of the three replaced workers. Output is expected to remain the same. Which of the following is true? a) machine productivity will increase b) multifactor productivity will decrease c) the value of output will decrease d) labor productivity will decrease e) multifactor productivity will increase

multifactor productivity will increase

When making competitive priority decisions the firm: a) must select the correct supply chain b) must make trade-off decisions c) must isolate the competing internal departments d) must ensure the PWP is correctly established e) must focus on the one competitive priority at the exclusion of all others

must make trade-off decisions

Suppose that a plant has a daily productivity of 0.85 parts per employee? What can we conclude? a) nothing b) the plant must be highly automated c) the plant is not earning profits d) the daily productivity is excellent e) the plant can hire more workers and still earn profits

nothing

Suppose that a plant has a daily productivity of 200 parts per employee? What can we conclude? a) the daily productivity is excellent b) the plant can hire more workers and still earn profits c) the plant must be highly automated d) nothing e) the plant is not earning profits

nothing

Competitive priorities that must be met for a company to compete in the marketplace. a) order winner b) order qualifier c) competition factor d) flexibility

order qualifier

Competitive priorities that win orders in the marketplace. a) competition factor b) order qualifier c) flexibility d) order winner

order winner

What term describes the process of obtaining goods or services from an outside provider? a) outsourcing b) transferization c) subsourcing d) supersourcing e) outproviding

outsourcing

Operational efficiency is: a) decreasing the firm's input requirements b) increasing the firm's output c) performing operations tasks well d) ensuring the right tasks are performed e) driving the business strategy

performing operations tasks well

Which of the following is a valid type of "productivity measure"? a) imperfect productivity measure b) multi-output productivity measure c) partial productivity measure d) multi-part productivity measure e) multi-component productivity measure

practical productivity measure

Computer-aided manufacturing is an example of what? a) environmental technology b) information technology c) safety technology d) product technology e) process technology

process technology

The three types of technology important to operations. process monitoring product accounting information

process, product, information

Teflon is an example of what? a) safety technology b) product technology c) process technology d) information technology e) environmental technology

product technology

What are the three primary types of technology? a) information technology, environmental technology, and safety technology b) product technology, process technology, and safety technology c) product technology, process technology, and environmental technology d) product technology, process technology, and information technology e) environmental technology, information technology, and process technology

product, process, information

Operations decisions related to the design of the production process, such as facilities, technology, and flow of goods and services through the facility. a) structure b) infrastructure

structure

Which of the following is not considered one of the four broad categories of competitive priorities? a) cost b) time c) quality d) technology e) flexibility

technology

Environmental scanning would not provide information on: a) changes in global competition b) the firms internal inefficient distribution system c) opportunities and threats d) changes in information technology e) sources of highly trained workers

the firms internal inefficient distribution system

Technology should be acquired because: a) the new technology keeps the employees happy b) the new technology supports the companys chosen competitive priorities c) the new technology is fun d) the new technology always improves productivity e) the new technology doesnt cost very much

the new technology supports the company's chosen competitive priorities

Suppose that a plant has a total productivity measure of 0.85. What can we conclude? a) the plant is highly automated b) the plant is not earning profits c) the daily productivity is excellent d) nothing d) the plant should lay off workers

the plant is not earning profits

What are the two key components of the operations strategy of Federal Express? a) they own their own fleet of tractor trailers, and they use a sophisticated bar code technology b) they use a sophisticated bar code technology, and they have a large warehouse in every state c) they own their own fleet of airplanes, and they have a large warehouse in every state d) they own their own fleet of tractor trailers, and they have a large warehouse in every state e) they own their own fleet of airplanes, and they use a sophisticated bar code technology

they own their own fleet of airplanes, and they use a sophisticated bar code technology

The need to focus more on one competitive priority than on others. a) order qualifier b) order winner c) trade-off d) flexibility

trade-off

During the 1970s and 1980s, firms from which country provided the most serious competitive threat to U.S. companies? a) Mexico b) Germany c) Japan d) Canada e) United Kingdom

Japan