Question 1

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

Accepted Answer

The decision of where to locate a facility or operation is a strategic operations management decision. It can impact the availability of resources, the cost of production, and the ability to efficiently serve customers.

Question 2

Productivity is defined as the ratio of output to input.

Accepted Answer

Productivity is a measure of efficiency, calculated by dividing an organization's output by its inputs. This ratio can be used to measure the performance of an individual, team, department or entire organization. Therefore, productivity is defined as the ratio of output to input.

Question 3

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

Accepted Answer

Productivity is a major factor in an organization's ability to compete as it affects efficiency, cost effectiveness, and ultimately, profitability. Higher productivity can lead to lower costs, higher quality products or services, and faster delivery times, all of which can give an organization a competitive advantage.

Question 4

Productivity is defined as the ratio of input to output.

Accepted Answer

Productivity is defined as the ratio of output to input, measuring how efficiently production inputs, such as labor and capital, are being used to produce a given level of output.

Question 5

Global competition really only applies to multinational organizations.

Accepted Answer

Global competition applies to all organizations, regardless of their size or multinational status, as they are all competing in a global economy with increasingly interconnected markets.

Question 6

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

Accepted Answer

When wages and salaries increase without accompanying increases in productivity, it can result in businesses raising prices to make up for the higher labor costs. This can lead to inflationary pressures on the overall economy.

Question 7

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

Accepted Answer

Competitiveness relates to the ability of an organization to offer products or services that meet the quality standards of the local or global markets at prices that are competitive while ensuring sustainable returns. It's more about the organization's position in the market relative to its competitors, rather than directly about profitability.

Question 8

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

Accepted Answer

Tracking productivity measures over time provides data that can be analyzed to identify trends, areas of strengths and weaknesses, and opportunities for improvement in organizational processes and operations. This information can help managers make data-driven decisions to enhance productivity and achieve better performance outcomes.

Question 9

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

Accepted Answer

Productivity and profitability are related but not directly proportional. An organization can be more productive but may not necessarily be twice as profitable due to factors such as costs, market prices, and demand.

Question 10

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

Accepted Answer

The answer of Government statistics are a good source of...

Question 11

A characteristic that was once an order winner may become an order qualifier.

Accepted Answer

A characteristic that was once an order winner, meaning it distinguished a product or service and led a customer to choose it over competitors, may become an order qualifier as customer expectations and industry standards evolve. The characteristic may still be important, but it is now necessary just to be considered by customers rather than a sole determining factor in their decision-making process.

Question 12

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.

Accepted Answer

Customers are more likely to be loyal to businesses that provide high-quality service, leading to repeat business and positive word-of-mouth referrals. This can result in increased revenue and profits for the business. Conversely, businesses that provide poor service may struggle to retain customers and may receive negative reviews, ultimately hurting their profits.

Question 13

Services often don't fit simple yield measurements.

Accepted Answer

Services typically involve intangible benefits that cannot easily be measured by simple yield measurements such as profit or return on investment. Other metrics, such as customer satisfaction or loyalty, may be more appropriate for assessing the effectiveness of services.

Question 14

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

Accepted Answer

Outsourcing can actually lead to increased productivity as well as improved quality if managed properly.

Question 15

If people would only work harder, productivity would increase.

Accepted Answer

Productivity is not solely determined by individual effort, but also influenced by factors such as access to resources, training, motivation, and organizational policies. Simply working harder may not address these underlying factors that impact productivity.

Question 16

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

Accepted Answer

Inventory level management is an example of an operational operations management decision as it involves determining the appropriate levels of inventory to maintain to meet customer demand while minimizing costs.

Question 17

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

Accepted Answer

A mission statement outlines an organization's purpose and values, which can serve as a foundation for strategic planning and decision making.

Question 18

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

Accepted Answer

Determining employment levels is an example of a tactical operations management decision. Tactical decisions involve short-term planning and resource allocation to achieve specific goals and objectives. Decisions related to workforce management, such as hiring, training, and scheduling, fall under the tactical category.

Question 19

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

Accepted Answer

National productivity is determined by aggregating the total output of goods and services of a country and dividing it by the total inputs used in the production process, not merely by averaging the productivity measures of various companies or industries.

Question 20

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

Accepted Answer

Productivity is a key factor in determining the efficiency and effectiveness of an organization's operations. This, in turn, influences its competitiveness in the market. An organization with a higher level of productivity can produce goods or services at a lower cost or more quickly, giving it an edge in the marketplace.

Quiz 2: Competitiveness