Ch 2 KEY REVIEW
Competing on cost and being the low-cost producer is a guarantee of profitability and success.
There are two characteristics of a product/service that define quality: design quality and process quality.
An order winner is the minimum requirement necessary to enter the market with
a product or service.
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
Operations strategy in service firms is generally inseparable from the overall
Productivity is a measure of how well a country, industry, or business unit is
using its resources.
To increase productivity, we want to make the ratio of inputs to outputs as large
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.
The ratio of output to a single input is total factor measurement of productivity.
Partial measures of productivity give managers information in familiar units,
allowing them to easily relate these measures to the actual operations.
Typical quality issues include which of the following:
Extent of use of outside suppliers
A major dimension that forms the competitive position of the company includes which of the following:
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:
An order winner
A world-class manufacturer
A plant-within-a plant
Which of the following is the first step in developing priorities when crafting a
Determine the order winners and qualifiers for each group.
Segment the market according to the product group.
Identify the product requirements, demand patterns, and profit
margins of each group.
Convert order winners into specific performance requirements.
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:
Special services that are provided to augment the sale of manufactured products can include which of the following:
Technical liaison and support
Meeting a launch date
Supplier after-sale support
Other factors like colors, size, weight, and product mix options
All of the above
Adherence to a product’s dimensional tolerances is essential to ensuring a
_____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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