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