Question 1

Order qualifier refers to the criterion customers use to differentiate the services or goods of one firm from those of another.

Accepted Answer

The answer of Order qualifier refers to the criterion customers...

Question 2

Multifactor productivity is an index of the output provided by more than one of the resources used in production.

Accepted Answer

Multifactor productivity considers the output in relation to multiple resources used in production, such as labor, capital, and materials.

Question 3

Labour productivity in Canadian business has improved by an average of 3.1 percent annually over the past four decades.

Accepted Answer

The answer of Labour productivity in Canadian business has improved...

Question 4

Productivity is the value of outputs produced divided by the total values of resources.

Accepted Answer

The answer of Productivity is the value of outputs produced...

Question 5

The principles of operations management is strictly for the supervisor to direct customers' traffic.

Accepted Answer

The principles of operations management involve much more than just directing customers' traffic. It involves various strategies and methods to efficiently manage resources, improve productivity, and ensure customer satisfaction.

Question 6

An operations strategy is a pattern of decisions and investments over time that develop a competitive advantage.

Accepted Answer

An operations strategy focuses on creating a unique and valuable position in the market by making decisions about product design, process design, supply chain management, and other operational issues. The goal is to create a sustainable competitive advantage that differentiates the company from its competitors and creates value for customers.

Question 7

China and India have comparative cost advantages over Canada and the U.S.

Accepted Answer

China and India have lower labor costs and lower costs of production in many industries, giving them a comparative cost advantage over Canada and the U.S.

Question 8

Order qualifier refers to the demonstrated level of performance of an order winner that is required for a firm to do business in a particular market segment.

Accepted Answer

Order qualifier defines the minimum level of performance that a firm must achieve in order to be considered as a candidate for doing business in a particular market segment. It is not the same as an order winner which is a criterion that differentiates a firm's product or service from that of its competitors and helps it win orders from customers.

Question 9

Which one of the following statements regarding operations management is TRUE?
A) Inputs to a production system include capital and materials, but not human resources.
B) Operations management deals only with manufacturing organizations because service organizations do not have tangible outputs.
C) Typical inputs to a production system are processes and consumer goods.
D) Customer participation and information on performance are two special types of inputs to a production system.

Accepted Answer

Customer participation and information on performance are two special types of inputs to a production system. A) is incorrect because human resources are also inputs to a production system. B) is incorrect as operations management also deals with service organizations. C) is incorrect as typical inputs to a production system are raw materials, technology, and labor.

Question 10

Which one of the following statements concerning measures of productivity is FALSE?
A) The number of insurance claims processed per week by employees in an insurance company is a valid measure of productivity.
B) Productivity is measured as the ratio of outputs divided by inputs.
C) Multifactor measures of productivity must convert the quantities being measured to a common unit of measure such as dollars.
D) Measures of labour productivity are generally more informative than multifactor measures of productivity.

Accepted Answer

Measures of labour productivity only consider the amount of labour input and do not take into account other factors such as capital, materials, and energy. Multifactor measures of productivity are generally more informative as they consider all inputs and their impact on output.

Question 11

Nationalization is a political risk in which a government may take over a firm's assets without paying compensation.

Accepted Answer

Nationalization refers to the transfer of private property to public ownership and control by a government. In some cases, the government may do so without paying compensation, which poses a political risk for businesses operating in that country.

Question 12

Operations management is part of a production system that can be described in the following manner: Organization: inputs-processes-outputs.Which one of the following correctly describes a production system?
A) Airline: pilots-planes-transportation
B) Bank: tellers-computer equipment-deposits
C) Furniture manufacturer: wood-sanding-chair
D) Telephone company: satellites-cables-communication

Accepted Answer

The organization of a furniture manufacturer can be described in the format of inputs (wood), processes (sanding), outputs (chair). The other options do not follow this format accurately. In option A, airline transportation is not an output but a service provided by the organization. In option B, deposits are not an output but a result of the service provided. In option D, communication is not an output but a service provided by the organization.

Question 13

In countries such as Canada,the United States,Japan and Germany,productivity gains in the service sector
A) have tended to lag gains in labour productivity in manufacturing.
B) have improved recently with widespread adoption of the Internet as a means to service customers more directly.
C) have accelerated with greater international competition in areas such as financial services.
D) all the above

Accepted Answer

Productivity gains in the service sector have historically lagged behind manufacturing but have improved with the adoption of the Internet and increased international competition.

Question 14

Which one of the following statements concerning productivity is TRUE?
A) Accounting for several inputs simultaneously is not possible.
B) The low growth in service productivity has had little effect on overall productivity in countries such as Canada and the U.S..
C) Multifactor productivity is an index of the output provided by more than one of the resources used in production.
D) Productivity improvement is achieved by increasing the inputs used to produce a given level of output.

Accepted Answer

Multifactor productivity measures the output per unit of combined inputs, such as labor, capital, and materials. Accounting for several inputs simultaneously is possible with multifactor productivity. The statement in option B is false as the low growth in service productivity has had a significant effect on overall productivity in countries such as Canada and the U.S. Option D is also false as productivity improvement is usually achieved by increasing the output produced by the same level of inputs or by producing the same output using fewer inputs.

Question 15

Labour productivity is an index of the output per person or hour worked.

Accepted Answer

Labour productivity is defined as the amount of output produced per unit of labour input. It is typically measured as output per worker or output per hour worked.

Question 16

Which one of the following statements is TRUE?
A) The share of the workforce in service jobs in countries such as Canada, France, Britain, Japan, and the United States is well above 60 percent.
B) Service-sector organizations generally cannot utilize operations management techniques.
C) The absolute number of Canadian manufacturing jobs has decreased since the late 1950s because the percentage of service jobs in the economy increased.
D) Because outputs from service organizations typically cannot be inventoried, inventories are of little importance to service systems.

Accepted Answer

According to the text, "the share of the workforce in service jobs in countries such as Canada, France, Britain, Japan, and the United States is well above 60 percent." Option B is false because service-sector organizations can indeed utilize operations management techniques. Option C is not true because there is no information given to support it. Option D is not accurate because while it's true that service outputs can't be inventoried, inventory and supply chain management are still vital in service systems.

Question 17

Regional trading blocs such as NAFTA and the EU further change the competitive landscape in both services and manufacturing.

Accepted Answer

Regional trading blocs like NAFTA and the EU promote free trade and economic integration among member countries, which can lead to changes in the competitive landscape in both goods and services markets. For example, companies within the trading bloc may have access to a larger market, benefit from lower tariffs and trade barriers, and face increased competition from foreign companies. This can have both positive and negative effects on domestic firms in the trading bloc, depending on their competitiveness and ability to adapt to changing market conditions.

Question 18

Machine productivity is a measure where the denominator is the number of machines.

Accepted Answer

Machine productivity is calculated by taking the total output produced by all machines and dividing it by the number of machines used to produce it. Therefore, the denominator of the formula is the number of machines.

Question 19

The percentage of the workforce in service jobs in some industrialized countries such as Canada,France,Japan,and Britain is
A) much lower than that of the manufacturing sector in these countries.
B) more than 60 percent of the total workforce in these countries.
C) higher than that in the manufacturing sector now, but shows a declining trend.
D) lower than that in the manufacturing sector now, but shows a rising trend.

Accepted Answer

The statement mentions that the percentage of the workforce in service jobs is high in industrialized countries such as Canada, France, Japan, and Britain. The statement specifies that the percentage is more than 60 percent of the total workforce in these countries. Hence, option B is the correct answer. Options A, C, and D are all incorrect as they do not align with the information provided in the statement.

Question 20

Consistent quality is the frequency with which the product or service meets any specification.

Accepted Answer

The answer of Consistent quality is the frequency with which...

Quiz 1: Creating Customer Value through Operations

Order qualifier refers to the criterion customers use to differentiate the services or goods of one firm from those of another.

Multifactor productivity is an index of the output provided by more than one of the resources used in production.

Labour productivity in Canadian business has improved by an average of 3.1 percent annually over the past four decades.

Productivity is the value of outputs produced divided by the total values of resources.

The principles of operations management is strictly for the supervisor to direct customers' traffic.

An operations strategy is a pattern of decisions and investments over time that develop a competitive advantage.

China and India have comparative cost advantages over Canada and the U.S.

Order qualifier refers to the demonstrated level of performance of an order winner that is required for a firm to do business in a particular market segment.

Which one of the following statements regarding operations management is TRUE?

Which one of the following statements concerning measures of productivity is FALSE?

Nationalization is a political risk in which a government may take over a firm's assets without paying compensation.

Operations management is part of a production system that can be described in the following manner: Organization: inputs-processes-outputs.Which one of the following correctly describes a production system?

In countries such as Canada,the United States,Japan and Germany,productivity gains in the service sector

Which one of the following statements concerning productivity is TRUE?

Labour productivity is an index of the output per person or hour worked.

Which one of the following statements is TRUE?

Regional trading blocs such as NAFTA and the EU further change the competitive landscape in both services and manufacturing.

Machine productivity is a measure where the denominator is the number of machines.

The percentage of the workforce in service jobs in some industrialized countries such as Canada,France,Japan,and Britain is

Consistent quality is the frequency with which the product or service meets any specification.