Op Strategy Ch 2 Key Review

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True/False Questions

_____1.Competing on cost and being the low-cost producer is a guarantee of profitability and success.

_____2.There are two characteristics of a product/service that define quality: design quality and process quality.

_____3.An order winner is the minimum requirement necessary to enter the market with a product or service.

_____4.Choosing a target market to serve may lead to turning away business or ruling out a market segment that would be unprofitable or too hard to serve given the firm's capabilities.

_____5.Operations strategy in service firms is generally inseparable from the overall corporate strategy.

_____6.Productivity is a measure of how well a country, industry, or business unit is using its resources.

_____7.To increase productivity, we want to make the ratio of inputs to outputs as large as practical.

_____8.The statement: productivity is a relative measure, means that the productivity value in March is not meaningful by itself but is meaningful only if compared to February’s productivity value.

_____9.The ratio of output to a single input is total factor measurement of productivity.

_____ 10.Partial measures of productivity give managers information in familiar units, allowing them to easily relate these measures to the actual operations.

Multiple-Choice Questions

_____11.Typical quality issues include which of the following:

A.Facility location

B.Extent of use of outside suppliers

C.Defect prevention

D.Organizational structure

_____12.A major dimension that forms the competitive position of the company includes which of the following:





_____13.All firms in the highly competitive soft drink industry must have a readily available, good tasting product as judged by consumers. To differentiate themselves from the other competitors, the manufacturers must use extensive promotion and sponsorship of event. In this industry product availability and quality taste is:

A.An order winner

B.A qualifier

C.A world-class manufacturer

D.A plant-within-a plant

_____14.Which of the following is the first step in developing priorities when crafting a manufacturing strategy?

A.Determine the order winners and qualifiers for each group.

B.Segment the market according to the product group.

C.Identify the product requirements, demand patterns, and profit margins of each group.

D.Convert order winners into specific performance requirements.

_____15.The Garden Café made and sold 238 veggie pizzas last Saturday night. They employed two kitchen preparation employees and one cashier and two waitresses who together worked a total of 30 hours during Saturday night. Total labor productivity is:





_____16.Special services that are provided to augment the sale of manufactured products can include which of the following:

A.Technical liaison and support

B.Meeting a launch date

C.Supplier after-sale support

D.Other factors like colors, size, weight, and product mix options

E.All of the above

_____17.Adherence to a product’s dimensional tolerances is essential to ensuring a product’s ____________.




D.Delivery speed

_____18. Which is considered a component of productivity strategy?

A. Improve cost structure

B. Improve asset utilization

C. Both A and B

D. Neither A nor B

_____19. A company may differentiate itself in the marketplace by:

A. Product leadership

B. Customer intimacy

C. Operational excellence

D. All of the above...
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