Deck 2: Competitiveness, Strategy, and Productivity

Question 1

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

Answer 1

True

Question 2

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

Answer 2

True

Question 3

Competitiveness relates to the profitability of an organization in the marketplace.

Answer 3

False

Question 4

Global competition really only applies to multinational organizations.

Question 5

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

Question 6

Wage and salary increases that are not accompanied by productivity increases tend to exert inflationary pressures on a nation's economy.

Question 7

Productivity is defined as the ratio of input to output.

Question 8

A mission statement should provide a guide for the formulation of strategies for the organization.

Question 9

A business that is rated highly by its customers for service quality will tend to be more profitable than a business that is rated poorly.

Question 10

National productivity is determined by averaging the productivity measures of various companies or industries.

Question 11

Outsourcing tends to improve quality but at the cost of lowered productivity.

Question 12

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

Question 13

Productivity tends to be only a very minor factor in an organization's ability to compete.

Question 14

Productivity is defined as the ratio of output to input.

Question 15

An example of an operational operations management decision is inventory level management.

Question 16

Services often don't fit simple yield measurements.

Question 17

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

Question 18

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

Question 19

If people would only work harder, productivity would increase.

Question 20

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

Question 21

Traditional strategies of business organizations have tended to emphasize cost minimization or product differentiation.

Question 22

Which of the following is least likely to affect the cost an organization incurs in producing its products or services?

A) price
B) productivity
C) location
D) quality
E) inventory management

Question 23

Improving efficiency will guarantee a similar improvement in productivity.

Question 24

Productivity is expressed as:

A) output plus input.
B) output minus input.
C) output times input.
D) output divided by input.
E) input divided by output.

Question 25

The key to successfully competing is understanding what customers want and then __________ satisfy those wants.

A) training production workers to
B) finding suppliers who can
C) finding the best way to
D) designing products and services that
E) hiring enough workers to

Question 26

As long as we match a competitor on quality and price we will gain market share.

Question 27

The hierarchy and sequence of planning and decision making is: mission, organizational strategy, tactics, and operational decisions.

Question 28

Competitiveness doesn't include:

A) productivity.
B) effectiveness.
C) profitability.
D) operations strategy.
E) operations management.

Question 29

Where a firm locates would typically not affect that firm's:

A) costs.
B) convenience for customers.
C) delivery times.
D) strategy.
E) transportation costs.

Question 30

Standardization has the advantage of reducing variability.

Question 31

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

Question 32

Strategy includes both organizational and functional strategies.

Question 33

Product design and choice of location are examples of _______ decisions.

A) strategic
B) tactical
C) operational
D) customer-focused
E) design

Question 34

Which of the following would be least important in the pursuit of a time-based strategy?

A) cost minimization
B) quick changeover times
C) operational agility
D) reduced complaint resolution times
E) flexible technology

Question 35

Which of the following is not among the chief reasons organizations fail?

A) overemphasis on short-term financial performance
B) emphasizing labor productivity in labor-intensive environments
C) poor internal communications
D) not investing in capital and human resources
E) overemphasis on product (or service) design

Question 36

The majority of our textbook deals with tactical operations that support established functional strategies.

Question 37

Environmental scanning is a search for events or trends that present either threats or opportunities to the organization.

Question 38

An organization's mission statement serves as the basis for:

A) environmental scanning.
B) core competencies.
C) operating procedures.
D) distinctiveness.
E) organizational goals.

Question 39

Scheduling personnel is an example of an operations management:

A) mission implementation.
B) operational decision.
C) organizational strategy.
D) functional strategy.
E) tactical decision.

Question 40

Mission statements should be as specific as possible regarding exactly how they will be accomplished.

Question 41

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

A) policies.
B) procedures.
C) corporate charter.
D) mission statement.
E) bylaws.

Question 42

Which of the following is not typically considered a cure for poor competitiveness?

A) Remove communications barriers within organizations.
B) Minimize attention to the operations function.
C) Put less emphasis on short-term financial results.
D) Recognize labor as a valuable asset and act to develop it.
E) Improve quality.

Question 43

Core competencies in organizations generally do not relate to:

A) cost.
B) quality.
C) time.
D) flexibility.
E) sales price.

Question 44

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

A) methods and technology
B) workers
C) management
D) product mix
E) advertising

Question 45

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

A) computer viruses
B) design of the workspace
C) use of the Internet
D) standardizing processes
E) product price

Question 46

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

A) advertise using multimedia.
B) reduce prices.
C) exceed minimum standards of acceptability for its products or services.
D) establish an Internet Web site.
E) broaden its mission statement.

Question 47

Which of the following is true?

A) Corporate strategy is shaped by functional strategies.
B) Corporate mission is shaped by corporate strategy.
C) Functional strategies are shaped by corporate strategy.
D) External conditions are shaped by corporate mission.
E) Corporate mission is shaped by functional strategies.

Question 48

Which of the following is not a key factor of competitiveness?

A) price
B) product differentiation
C) flexibility
D) after-sale service
E) size of organization

Question 49

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

A) worthwhile.
B) trivial.
C) competence-destroying.
D) an order winner.
E) an order qualifier.

Question 50

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

A) nondefective productivity.
B) process yield.
C) worker quality measurement.
D) total quality productivity.
E) quantity/quality ratio.

Question 51

In an assembly operation at a furniture factory, six employees assembled an average of 450 standard dining chairs per five-day week. What is the labor productivity of this operation?

A) 90 chairs/worker/day
B) 20 chairs/worker/day
C) 15 chairs/worker/day
D) 75 chairs/worker/day
E) 60 chairs/worker/day

Question 52

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 pretzels each shift, then productivity will have increased by:

A) 50 percent.
B) 33 percent.
C) 25 percent.
D) 67 percent.

Question 53

Which of the following is not a key step toward improving productivity?

A) developing productivity measures for all operations
B) improving the bottleneck operations
C) establishing reasonable goals for improvement
D) considering incentives to reward workers
E) converting bond debt to stock ownership

Question 54

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

A) operations strategies.
B) improving quality.
C) marketing and financial strategies.
D) revising mission statements.
E) environmental issues.

Question 55

Which of the following is not a reason for poor performance of our organization in the marketplace?

A) placing too much emphasis on product/service design and too little on process design
B) failing to take into account customer wants and needs
C) putting too much emphasis on short-term financial performance
D) taking advantage of strengths/opportunities, and recognizing competitive threats
E) failing to monitor the external environment

Question 56

The manager of a carpet store is trying to determine the best installation crew size. He has tried various crew sizes with the results shown below. Based on productivity, what crew size do you recommend? $$\begin{array} { l c } \text { Crew Size } & \text { Yards Installed } \\\hline 2 & 716 \\4 & 1298 \\3 & 1017 \\3 & 1002 \\4 & 1278 \\2 & 702\end{array}$$

A) 2
B) 3
C) 4

Question 57

Value added can be calculated by:

A) average productivity gains over time.
B) inputs divided by the outputs.
C) outputs divided by the inputs.
D) input plus output divided by two.
E) outputs minus inputs.

Question 58

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

A) operations' strengths and weaknesses.
B) inventory levels.
C) labor productivity.
D) product mix.
E) production processes.

Question 59

The external elements of SWOT analysis are:

A) strengths and weaknesses.
B) strengths and threats.
C) opportunities and threats.
D) weaknesses and opportunities.
E) strengths and opportunities.

Question 60

Time-based approaches of business organizations focus on reducing the time to accomplish certain necessary activities. Time reductions seldom apply to:

A) product/service design time.
B) processing time.
C) delivery time.
D) response time for complaints.
E) internal audits.

Question 61

Which of the following factors would tend to reduce productivity?

A) improvements in workplace safety
B) reductions in labor turnover
C) more inexperienced workers
D) reductions in the scrap rate
E) less variety in the product mix

Question 62

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

A) Speed to market
B) Flexibility
C) Customization
D) Sustainability
E) Standardization

Question 63

The weekly output of a fabrication process is shown below, together with data for labor and material inputs. Standard selling price is $125 per unit. Overhead is charged weekly at the rate of $1,500 plus .5 times direct labor cost. Assume a 40-hour week and an hourly wage of $16. Material cost is $10 per foot. What is the average multifactor productivity? $$\begin{array} { l c c c } \text { Week } & \text { Output } & \text { \# Workers } & \text { Material (ft) } \\\hline 1 & 392 & 5 & 2720 \\2 & 408 & 6 & 2790\end{array}$$

A) 1.463
B) 1.457
C) 1.431

Question 64

Suppose a country's productivity last year was 84. If this country's productivity growth rate of 5 percent is to be maintained, this means that this year's productivity will have to be:

A) 88.2.
B) 79.8.
C) 82.8.
D) 78.9.
E) 4.2.

Question 65

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

A) functional strategies.
B) Balanced Scorecards.
C) supply chains.
D) core competencies.
E) sustainable initiatives.

Question 66

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

A) productivity analysis
B) environmental analysis
C) strategy implementation
D) sustainability analysis
E) growth forecasting

Question 67

A company has introduced a process improvement that reduces processing time for each unit; output is increased by 25 percent with less material, but one additional worker is required. Under the old process, five workers could produce 60 units per hour. Labor costs are $12/hour, and material input was previously $16/unit. For the new process, material is now $10/unit. Overhead is charged at 1.6 times direct labor cost. Finished units sell for $31 each. What increase in productivity is associated with the process improvement?

Question 68

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.

A) tactical implications; strategic
B) strategic implications; tactical
C) order winners; order qualifiers
D) profitability factors; productivity factors
E) order qualifiers; order winners

Question 69

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.

A) variation
B) streamlined flow
C) quality
D) capacity
E) productivity

Question 70

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

A) order qualifiers.
B) customization.
C) quality.
D) price.
E) flexibility.

Question 71

The weekly output of a production process is shown below, together with data for labor and material inputs. The standard inventory value of the output is $125 per unit. Overhead is charged weekly at the rate of $1,500 plus .5 times direct labor cost. Assume a 40-hour week and an hourly wage of $16. Material cost is $10 per running foot. What is the average multifactor productivity for this process?

Question 72

The Balanced Scorecard is a useful tool for helping managers translate their strategy into action in the following areas:

A) Sustainability; Flexibility; Efficiency; Technology
B) Customers; Financial; Internal Business Processes; Learning and Growth
C) Customization; Standardization; Efficiency; Effectiveness
D) The Environment; The Community; Suppliers; Other Stakeholders
E) Strategy; Tactics; Productivity; Profitability