Connect Homework 1&2

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

False

Operations, marketing, and finance function independently of each other in most organizations.

False

Organizational strategy should be determined without considering the realities of functional area strengths and weaknesses since they can be changed to meet out strategy.

False

Service operations require additional inventory because of the unpredictability of consumer demand.

False

The responsibilities of the operations manager are:

Planning, Organizing, Staffing, Directing and Controlling

The ratio of good output to quantity of raw material input is called

Process Yield

Tracking productivity measures over time enable managers to judge organizational performance and decide where improvements are needed

True

An organization that is twice as productive as its competitor will be twice as profitable.

False

Production systems with customized outputs typically have relatively

Skilled Workers

Which of the following factors would tend to reduce productivity?

More Inexperienced Workers

Scheduling personnel is an example of an operations management:

Operational Decision

ompute the multifactor productivity measure for each of the weeks shown for production of chocolate bars. Assume 40-hour weeks and an hourly wage of $10. Overhead is 1.5 times weekly labor cost. Material cost is $6 per pound. Week, Output,Workers, Materials (lbs) 1, 30,000, 5, 450 2, 34,000, 7, 530 3, 32,000, 7, 500 4, 35,000, 10, 500

1, 3.90 2, 3.34 3, 3.20 4, 2.69

Gourmet Pretzels bakes soft pretzels on an assembly line. It currently bakes 800 pretzels each eight-hour shift. If the production is increased to 1,200 each shift, then productivity will have increased by:

50 percent

Which of these factor would be least likely to affect productivity?

Advertising

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

Environmental Analysis

Companies are either producing goods or delivering services. This means that only one of the two types of operations management strategies are used.

False

Managers should often rely on quantitative techniques for important decisions since quantitative approaches result in more accurate decisions.

False

Operations and sales are the two ___ functions in businesses.

Line

Which of the following is not a benefit of using models in decision making?

They force the decision maker to take into account qualitative issues such as personalities and emotions.

An abstraction of reality, a model is a simplified version of a real phenomenon.

True

The Pareto phenomenon is one of the most important and pervasive concepts that can be applied at all levels of management.

True

property title search firm is contemplating using online software to increase its search productivity. Currently an average of 65 minutes is needed to do a title search. The researcher cost is $1.70 per minute. Clients are charged a fee of $480. Company A's software would reduce the average search time by 16 minutes, at a cost of $3.50 per search. Company B's software would reduce the average search time by 19 minutes at a cost of $5.70 per search.

a. Calculate the productivity in terms of revenue per dollar of input. (Round your intermediate calculations and final answers to 2 decimal places. Omit the "$" sign in your response.) Approach Productivity (Revenue per Dollar Input) Current $ 4.34 +- 0.01 Company A $ 5.53+- 0.01 Company B $ 5.72+-0.01 b. Which option would have the highest productivity in terms of revenue per dollar of input? Company B Explanation: Approach Average Time Cost Productivity (Revenue per Dollar Input) Current 65 65 × $1.70 = $110.50 $480/$110.50 = $4.34 Company A 49 49 × $1.70 + $3.50 = $86.80 $480/$86.80 = $5.53 Company B 46 46 × $1.70 + $5.70 = $83.90 $480/$83.90 = $5.72