Op Strategy Ch 2 Key Review
Ch 2 KEY REVIEW
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:
A. Organization
B. Planning
C. Controlling
D. Flexibility
_____ 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
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:
A. Organization
B. Planning
C. Controlling
D. Flexibility
_____ 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