QM Ch. 1 & 2

What percentage of Hard Rock's profit is derived from retail shop sales?

50%

This year, Druehl Inc. will produce 60,000 hot water heaters at its plant in Delaware in order to meet expected global demand. To accomplish this, each laborer at the plant will work 200 hours per month. If the labor productivity at the plant is .25 hot water heaters per labor hour, how many laborers are employed at the plant?

100 laborers

A global network of organizations and activities that supply a firm with goods and services is referred to as

A supply chain

A strategy is

An action plan to achieve a mission

Which of the following does not represent competing on response

Based on providing uniqueness

Competing on differentiation is

Concerned with uniqueness

10 Strategic OM Decisions

Decisions of goods and services Managing Process and Capacity Location Layout HR and Job Design Supply Chain Inventory Scheduling Maintenance

An international business is a firm that

Engages in international trade or investment

How does management describe the "strategy" of Hard Rock Cafe?

Experience Strategy

which of the following tasks would NOT typically represent an operations management activity and Hard Rock Cafe: Receiving a shipment of incoming food ingredients Designing an efficient layout Filing a tax return Preparing an employees schedule

Filing a tax return

Which of the following is NOT one of the 10 strategic OM decisions listed in the text?

Finance/ accounting

Which is the purpose of rational for an organization's existence?

Mission

Which of these is NOT an advantage of outsourcing

Potential creation of future competition

Which of the following activities at an airline is NOT an operations activity: Catering Sales Crew scheduling Flying

Sales

The economic activities that typically produce an intangible product are referred to as

Services

Charles Lackey operates a bakery in Idaho​ Falls, Idaho. Because of its excellent product and excellent​ location, demand has increased by 25​% in the last year. On far too many​ occasions, customers have not been able to purchase the bread of their choice. Because of the size of the​ store, no new ovens can be added. At a staff​ meeting, one employee suggested ways to load the ovens differently so that more loaves of bread can be baked at one time. This new process will require that the ovens be loaded by​ hand, requiring additional manpower. This is the only production change that will be made in order to meet the increased demand. The bakery currently makes 1 comma 500 loaves per month. Employees are paid ​$8 per hour. In addition to the labor​ cost, Charles also has a constant utility cost per month of ​$850 and a per loaf ingredient cost of ​$0.40. a.) Current multifactor productivity for 640 work hours per month​ = ____ loaves/dollar b.)After increasing the number of work hours to 800 per month​, the multifactor productivity​ =_____ ​loaves/dollar ​ c.)The percentage increase in productivity​ =_____​%

a.) .228 b.) .234 c.) 2.63%

Lillian Fok is president of Lakefront​ Manufacturing, a producer of bicycle tires. Fok makes 1 comma 200 tires per day with the following​ resources: ​Labor: 425 hours per day ​@​ $12.00 per hour Raw​ Material: 20 comma 000 pounds per day​ @ ​$1.00 per pound ​Energy: ​$5 comma 250 per day ​Capital: ​$10 comma 000 per day ​a) Labor productivity per labor hour for these tires​ = ________ tires/ labor hour ​b) Multifactor productivity for these tires​ = ___________ tires/dollar c.) The percent change in multifactor productivity if Fok can reduce the energy bill by ​$1 comma 000 per day without cutting production or changing any other inputs​ = ______ 2.68%

a.) 2.82 b.) .0297 c.) 2.68%

Chuck Sox makes wooden boxes in which to ship motorcycles. Chuck and his three employees invest a total of 40 hours per day making the 200 boxes. a.) their productivity _____ boxes/hour Chuck and his employees have discussed redesigning the process to improve efficiency. Suppose they can increase the rate to 400 boxes per day b.) their new productivity _____ boxes/hour c.) the unit increase in productivity is _______ boxes/hour d.) the percentage increase in productivity is ______

a.) 5 b.) 10 c.) 5 d.) 100%