Question 1

Productivity is defined as the ratio of output to input.

Accepted Answer

Productivity is indeed defined as the ratio of output (or the amount of goods or services produced) to input (or the resources used to produce them).

Question 2

Matching a competitor on quality or price is usually sufficient to gain market share.

Accepted Answer

Matching a competitor on either quality or price may not be enough to gain market share, as there are other factors such as branding, marketing, customer service, and product differentiation that also influence consumer behavior and purchasing decisions.

Question 3

Making trade-offs among competitive priorities should be avoided in developing operations strategies.

Accepted Answer

Making trade-offs among competitive priorities is necessary and unavoidable in operations strategy development. Focusing too much on one priority can negatively impact others, so a balance must be found to satisfy all priorities to the best extent possible.

Question 4

Strategic planning includes both determining long-term plans and implementing them through allocation of resources and action plans.

Accepted Answer

Strategic planning involves both the development of long-term plans and the practical steps needed to implement them. This includes deciding how resources will be allocated and creating specific action plans to achieve goals.

Question 5

The variety of models and options available to customers is an example of key purchasing criteria that establishes the basis of competition.

Accepted Answer

The availability of different models and options for customers to choose from is a crucial factor that affects their purchasing decision, making it an important criterion determining the competition in the market. Therefore, the statement is true.

Question 6

Formulating an operations strategy requires focusing solely on the operations function,leaving the concerns of other functions and the status of external markets to broader organizational strategic planning.

Accepted Answer

Formulating an operations strategy requires integrating the operations function with other functions (like marketing, finance, etc.) and considering the status of external markets to ensure the strategy aligns with the overall organizational goals and market demands.

Question 7

In large manufacturing organizations,the operations function tends to adopt a passive role in strategic planning,relying on the functional areas of marketing and finance to establish the strategic direction of the organization.

Accepted Answer

In large manufacturing organizations, the operations function often plays a critical and active role in strategic planning, working alongside marketing, finance, and other functional areas to establish and implement the strategic direction of the organization. Operations are central to how products are designed, produced, and delivered, directly impacting the company's efficiency, quality, and customer satisfaction.

Question 8

It is important that an organization has a clear and simple mission/vision/values statement.

Accepted Answer

A clear and simple mission/vision/values statement helps to guide the organization's strategy, decision-making, and overall direction. It also provides clarity and direction to employees and stakeholders, helping to align everyone towards a common purpose.

Question 9

If you think of goals as destinations,then tactics are the roadmaps for reaching the destinations.

Accepted Answer

The answer of If you think of goals as destinations,then...

Question 10

Typically a manufacturing firm would not consider Enterprise Resource Planning (ERP)software as part of the organizations operations strategy.

Accepted Answer

Enterprise Resource Planning (ERP) software is often seen as an important part of a manufacturing firm's operations strategy as it can help with inventory management, production scheduling, financial management, and other key aspects of the business. Implementing ERP software can streamline processes and improve efficiency, making it a valuable tool for manufacturers.

Question 11

Order qualifiers are those characteristics of an organization's goods or services that cause them to be perceived as better than the competition.

Accepted Answer

Order qualifiers are the basic criteria that permit the firm's products to be considered as candidates for purchase by customers, rather than factors that differentiate the product from the competition.

Question 12

Tactics are short-term projects to accomplish a specific objective,assigned to an individual,with a deadline and the resources needed identified.

Accepted Answer

The answer of Tactics are short-term projects to accomplish a...

Question 13

Vertical integration refers to the ownership of a major part or the whole of the supply chain.

Accepted Answer

Vertical integration involves owning different stages of the production and supply process, from raw materials to distribution channels, in order to increase efficiency and control costs.

Question 14

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

Accepted Answer

A mission statement defines the purpose and priorities of an organization, and serves as a basis for decision making and strategy development.

Question 15

The purchasing criteria of quality and timeliness of delivery are order winners for all companies.

Accepted Answer

Different companies prioritize different purchasing criteria based on their strategic goals and market demands. While quality and timeliness of delivery might be critical for some, others might prioritize cost, innovation, or flexibility.

Question 16

In the 1990's Japanese manufacturing companies tended to shift their strategic orientation away from continuous improvement towards strategies based on low labour costs.

Accepted Answer

In the 1990's, Japanese manufacturing companies faced increasing competition from other countries and responded by emphasizing continuous improvement and innovation to stay ahead, rather than focusing on low labor costs. This strategy became known as "Monozukuri," which translates to "the art of making things."

Question 17

Time-based strategies focus on reducing the time required to accomplish certain activities,such as new product development or delivery to the customer.

Accepted Answer

Time-based strategies are aimed at reducing the time required for different activities to improve productivity and efficiency. This can lead to cost savings, competitive advantage, and customer satisfaction. Examples include Lean and Six Sigma methodologies that target process improvement and waste reduction.

Question 18

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

Accepted Answer

As market conditions and customer preferences change, a characteristic that was once the reason why customers chose a product over competitors (order winner) may become a standard expectation that all products in the industry meet (order qualifier). Similarly, a characteristic that was once a minimum requirement for consideration may become the deciding factor (order winner) due to changes in customer needs or preferences. Therefore, characteristics can switch between being order winners and order qualifiers.

Question 19

Organizational strategy must be determined without considering the realities of functional area strengths and weaknesses.

Accepted Answer

Organizational strategy should take into consideration the strengths and weaknesses of each functional area to ensure that resources are properly allocated and all areas are aligned to achieve the overall organizational goals. Ignoring functional area strengths and weaknesses can result in a disjointed strategy that is difficult to implement and may not achieve the desired outcomes.

Question 20

The hierarchy of planning and decision-making is: mission/vision,goals,strategies,tactics,and action plans.

Accepted Answer

This is the correct hierarchy of planning and decision-making. It starts with defining the organization's mission and vision, followed by setting specific goals to achieve that vision, developing strategies to reach those goals, determining tactics to implement those strategies, and finally creating action plans to execute those tactics.

Quiz 2: Competitiveness, strategic Planning, and Productivity