Test bank for operations management 12th edition stevenson

Standardization A productivity increase in one operation that does not improve overall productivity of the business is not 1?. Strategy; Tactics; Productivity; Profitability With regar

Test Bank for Operations Management 12th Edition Stevenson

Multiple Choice Questions

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

1 A nondefective productivity.

2 B process yield.

3 C worker quality measurement.

4 D total quality productivity.

5 E quantity/quality ratio.

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

1 A order qualifiers.

2 B customization.

3 C quality.

4 D price.

5 E flexibility.

Core competencies in organizations generally do not relate to:

1 A cost.

2 B quality.

3 C time.

4 D flexibility.

5 E sales price.

Which of the following would be least important in the

pursuit of a time-based strategy?

1 A cost minimization

2 B quick changeover times

3 C operational agility

4 D reduced complaint resolution times

5 E flexible technology

Product design and choice of location are examples of

_ decisions

1 A strategic

2 B tactical

3 C operational

4 D customer-focused

5 E design

Which of the following factors would tend to reduce

productivity?

1 A improvements in workplace safety

2 B reductions in labor turnover

3 C more inexperienced workers

4 D reductions in the scrap rate

5 E less variety in the product mix

In the 1970s and early 1980s in the United States,

organizations concentrated on:

1 A operations strategies.

2 B improving quality.

3 C marketing and financial strategies.

4 D revising mission statements.

5 E environmental issues.

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

1 A product/service design time.

2 B processing time.

3 C delivery time.

4 D response time for complaints.

5 E internal audits.

Which of the following is not among the chief reasons

organizations fail?

1 A overemphasis on short-term financial performance

2 B emphasizing labor productivity in labor-intensive environments

3 C poor internal communications

4 D not investing in capital and human resources

5 E overemphasis on product (or service) design

Which of the following is not a key factor of

competitiveness?

1 A price

2 B product differentiation

3 C flexibility

4 D after-sale service

5 E size of organization

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

1 A Remove communications barriers within organizations.

2 B Minimize attention to the operations function.

3 C Put less emphasis on short-term financial results.

4 D Recognize labor as a valuable asset and act to develop it.

5 E Improve quality.

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

1 A advertise using multimedia.

2 B reduce prices.

3 C exceed minimum standards of acceptability for its products or services.

4 D establish an Internet Web site.

5 E broaden its mission statement.

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?

1 A 2

2 B 3

3 C 4

Scheduling personnel is an example of an operations

management:

1 A mission implementation.

2 B operational decision.

3 C organizational strategy.

4 D functional strategy.

5 E tactical decision.

The external elements of SWOT analysis are:

1 A strengths and weaknesses.

2 B strengths and threats.

3 C opportunities and threats.

4 D weaknesses and opportunities.

5 E strengths and opportunities.

The fundamental purpose for the existence of any

organization is described by its:

1 A policies.

2 B procedures.

3 C corporate charter.

4 D mission statement.

5 E bylaws.

Which of the following is not a reason for poor performance

of our organization in the marketplace?

1 A placing too much emphasis on product/service design and too little on process design

2 B failing to take into account customer wants and needs

3 C putting too much emphasis on short-term financial performance

4 D taking advantage of strengths/opportunities, and recognizing competitive threats

5 E failing to monitor the external environment

Value added can be calculated by:

1 A average productivity gains over time.

2 B inputs divided by the outputs.

3 C outputs divided by the inputs.

4 D input plus output divided by two.

5 E outputs minus inputs.

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

1 A Speed to market

2 B Flexibility

3 C Customization

4 D Sustainability

5 E Standardization

A productivity increase in one operation that does not

improve overall productivity of the business is not

1 A worthwhile.

2 B trivial.

3 C competence-destroying.

4 D an order winner.

5 E an order qualifier.

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:

1 A 50 percent.

2 B 33 percent.

3 C 25 percent.

4 D 67 percent.

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

1 A environmental scanning.

2 B core competencies.

3 C operating procedures.

4 D distinctiveness.

5 E organizational goals.

Which of these factors would be least likely to affect

productivity?

1 A methods and technology

2 B workers

3 C management

4 D product mix

5 E advertising

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:

1 A 88.2.

2 B 79.8.

3 C 82.8.

4 D 78.9.

5 E 4.2.

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

1 A variation

2 B streamlined flow

3 C quality

4 D capacity

5 E productivity.

For firms competing in worldwide markets, conducting

is more complex, since what works in one country or region might not work in another.

1 A productivity analysis

2 B environmental analysis

3 C strategy implementation

4 D sustainability analysis

5 E growth forecasting

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?

1 A 1.463

2 B 1.457

3 C 1.431

Which of the following is not a factor that affects

productivity?

1 A computer viruses

2 B design of the workspace

3 C use of the Internet

4 D standardizing processes

5 E product price

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

1 A tactical implications; strategic

2 B strategic implications; tactical

3 C order winners; order qualifiers

4 D profitability factors; productivity factors

5 E order qualifiers; order winners

The Balanced Scorecard is a useful tool for helping

managers translate their strategy into action in the following areas:

1 A Sustainability; Flexibility; Efficiency; Technology

2 B Customers; Financial; Internal Business Processes; Learning and Growth

3 C Customization; Standardization; Efficiency; Effectiveness

4 D The Environment; The Community; Suppliers; Other Stakeholders

5 E Strategy; Tactics; Productivity; Profitability

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

1 A operations' strengths and weaknesses.

2 B inventory levels.

3 C labor productivity.

4 D product mix.

5 E production processes.

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

1 A developing productivity measures for all operations

2 B improving the bottleneck operations

3 C establishing reasonable goals for improvement

4 D considering incentives to reward workers

5 E converting bond debt to stock ownership

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

1 A costs.

2 B convenience for customers.

3 C delivery times.

4 D strategy.

5 E transportation costs.

Productivity is expressed as:

1 A output plus input.

2 B output minus input.

3 C output times input.

4 D output divided by input.

5 E input divided by output.

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

1 A training production workers to

2 B finding suppliers who can

3 C finding the best way to

4 D designing products and services that

5 E hiring enough workers to

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?

1 A 90 chairs/worker/day

2 B 20 chairs/worker/day

3 C 15 chairs/worker/day

4 D 75 chairs/worker/day

5 E 60 chairs/worker/day

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

1 A functional strategies.

2 B Balanced Scorecards.

3 C supply chains.

4 D core competencies.

5 E sustainable initiatives.

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

1 A price

2 B productivity

3 C location

4 D quality

5 E inventory management

Which of the following is true?

1 A Corporate strategy is shaped by functional strategies.

2 B Corporate mission is shaped by corporate strategy.

3 C Functional strategies are shaped by corporate strategy.

4 D External conditions are shaped by corporate mission.

5 E Corporate mission is shaped by functional strategies.

Competitiveness doesn't include:

1 A productivity.

2 B effectiveness.

3 C profitability.

4 D operations strategy.

5 E operations management.

True - False Questions

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

strategy

1 True

2 False

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

1 True

2 False

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

1 True

2 False

Productivity is defined as the ratio of output to input

1 True

2 False

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

1 True

2 False

A mission statement should provide a guide for the

formulation of strategies for the organization

1 True

2 False

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

1 True

2 False

Tracking productivity measures over time enables managers

to judge organizational performance and decide where

improvements are needed

1 True

2 False

Productivity is directly related to the ability of an

organization to compete

1 True

2 False

National productivity is determined by averaging the

productivity measures of various companies or industries

1 True

2 False

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

1 True

2 False

Global competition really only applies to multinational

organizations

1 True

2 False

Productivity is defined as the ratio of input to output

1 True

2 False

A characteristic that was once an order winner may become

an order qualifier, and vice versa

1 True

2 False

Traditional strategies of business organizations have tended

to emphasize cost minimization or product differentiation

1 True

2 False

Mission statements should be as specific as possible

regarding exactly how they will be accomplished

1 True

2 False

An example of a strategic operations management decision

is the choice of where to locate

1 True

2 False

Outsourcing tends to improve quality but at the cost of

lowered productivity

1 True

2 False

Standardization has the advantage of reducing variability

1 True

2 False

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

1 True

2 False

Improving efficiency will guarantee a similar improvement in productivity

1 True

2 False

Productivity tends to be only a very minor factor in an

organization's ability to compete

1 True

2 False

Competitiveness relates to the profitability of an

organization in the marketplace

1 True

2 False

Strategy includes both organizational and functional

strategies

1 True

2 False

Wage and salary increases that are not accompanied by productivity increases tend to exert inflationary pressures

on a nation's economy

1 True

2 False

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

1 True

2 False

If people would only work harder, productivity would

increase

1 True

2 False

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

1 True

2 False

Services often don't fit simple yield measurements

1 True

2 False

An example of an operational operations management

decision is inventory level management

1 True

2 False