Chapter 2 Concepts- Competitiveness, Strategy, Productivity

Scheduling personnel is an example of an operations management:

Operational decision. Staffing-level decisions are made low in the hierarchy.

An example of a strategic operations management decision is the choice of where to locate.

True

A firm pursuing a strategy based on customization and variety will tend to structure and manage its supply chain to accommodate more _____________ than a firm pursuing a strategy based on low cost and high volume.

variation

A productivity increase in one operation that does not improve overall productivity of the business is not

worthwhile

Productivity is defined as the ratio of input to output.

False. Productivity is the ratio of outputs to inputs.

Government statistics are a good source of data about productivity trends in the service sector.

False. The service sector is often omitted in government statistics.

Total measure

Goods or services produced/all inputs used to produce them

Multifactor productivity

Output/ Labor+Material+Overhead

Multifactor Measures

Output/ Multiple Inputs Ex: Output/ Labor+ Machine

Partial Measures

Output/Single Output Ex: Output/ Labor

Productivity

Outputs/Inputs

Productivity is directly related to the ability of an organization to compete.

True. A more productive organization is a more competitive organization.

A characteristic that was once an order winner may become an order qualifier, and vice versa.

True. Order qualifiers and order winners are shaped by the environment.

An example of a tactical operations management decision is determining employment levels.

True. Staffing is an ongoing, tactical decision.

Unique attributes of firms that give them a competitive edge are called:

core competencies. Core competencies can be translated into competitive advantage.

Functional strategies are shaped by

corporate strategy

For firms competing in worldwide markets, conducting __________________ is more complex, since what works in one country or region might not work in another.

environmental analysis. Environmental analysis takes into account the relevant factors in the environment; there are more of these if there are more markets to consider.

For an organization to grow its market share, it must:

exceed minimum standards of acceptability for its products or services.

In the 1970s and early 1980s in the United States, organizations concentrated on:

marketing and financial strategies

The fundamental purpose for the existence of any organization is described by its:

mission statement

With regard to operations strategy, organization strategy should, ideally, take into account:

operations' strengths and weaknesses.

The external elements of SWOT analysis are:

opportunities and threats

Years ago in the overnight delivery business, providing package tracking capability gave some firms a competitive advantage. Now, all firms must offer this capability simply to be in this line of business. This is an example of ______________ becoming ____________ over time.

order winners; order qualifiers

Value added can be calculated by:

outputs minus inputs. Value added represents the change in value of the original inputs.

Increasing the service offered to the customer makes it more difficult to compete on the basis of:

price. More extensive service can be more costly, and more costly outputs make price-based strategies more difficult.

Which of the following is not a factor that affects productivity?

product price

Competitiveness doesn't include:

profitability. A company can be competitive relative to similar companies and still be unprofitable if the competitive environment is inherently unprofitable.

Core competencies in organizations generally do not relate to:

sales price. What a firm charges for its outputs is not a core competency. What it can charge, however, is potentially related to a core competency.

___________ is generally used to facilitate an organization strategy that emphasizes low cost.

standardization