Question 1

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

Accepted Answer

Nationalization is a political risk where a government may seize or take over a firm's assets or operations, often without compensation.

Question 2

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

Accepted Answer

Machine productivity is calculated by dividing the total output by the number of machines, making the number of machines the denominator. Therefore, the statement is true.

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

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

Accepted Answer

Multifactor productivity takes into account more than one resource used in production and calculates the output in relation to the cost of these resources.

Question 5

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

Accepted Answer

Regional trading blocs create a freer flow of goods, services and investment among member countries, altering the competitive landscape.

Question 6

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. Inputs to a production system may include capital, materials, human resources, and information from customers on their needs and expectations. Processing of these inputs creates outputs, which may be goods or services. Operations management deals with both manufacturing and service organizations.

Question 7

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 passage states that the percentage of the workforce in service jobs in some industrialized countries such as Canada, France, Japan, and Britain is "more than 60 percent of the total workforce in these countries." Therefore, option B is correct.

Question 8

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

The answer of In countries such as Canada,the United States,Japan...

Question 9

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

The definition provided correctly describes order qualifier as the level of performance required for a firm to compete in a particular market segment.

Question 10

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

Accepted Answer

Labour productivity is indeed an index that measures the amount of output (goods or services) produced per person or per hour worked. It is an important measure of economic performance and efficiency.

Question 11

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. Therefore, statement A is true.

B is not true because service-sector organizations can and do utilize operations management techniques.

C is false because the text does not provide information on the percentage of service jobs in the Canadian economy.

D is false because inventories can be important for service systems, such as in the case of hotels or restaurants keeping track of food or supplies.

Question 12

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...

Question 13

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 furniture manufacturer represents a clear example of a production system since the organization (furniture manufacturer) receives input (wood), process (sanding), and produces output (chairs). A, B, and D represent industries rather than production systems, and their organization-input-process-output definitions are not as clear-cut.

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 is a measure which accounts for multiple inputs in the production process, and is therefore more comprehensive than single-factor productivity measures. Options A, B, and D are false statements about productivity.

Question 15

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

Accepted Answer

The principles of operations management cover a wide range of topics such as quality management, supply chain management, inventory management, process design, and capacity planning among others. It is not limited to directing customers' traffic, although it may involve managing customer flow as part of operations management.

Question 16

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 may not account for other inputs that contribute to a firm's output, such as capital or technology. Multifactor measures of productivity may provide a more holistic view of a firm's productivity. Therefore, the statement that measures of labour productivity are generally more informative than multifactor measures of productivity is false.

Question 17

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

Accepted Answer

An operations strategy is indeed a pattern of decisions and investments over time that aim to create a competitive advantage for a company.

Question 18

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 19

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 20

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

Accepted Answer

China and India have lower labor costs and other cost advantages such as lower production and transportation costs compared to Canada and the U.S. This makes them more competitive in certain industries and markets.

Quiz 1: Creating Customer Value Through Operations

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

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

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

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

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

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

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

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

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.

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

Which one of the following statements is TRUE?

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

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?

Which one of the following statements concerning productivity is TRUE?

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

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

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

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

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

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