Exam 2: Competitiveness, Strategy, and Productivity

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

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Improving efficiency will guarantee a similar improvement in productivity.

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

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Product design and choice of location are examples of _______ decisions.

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Traditional strategies of business organizations have tended to emphasize cost minimization or product differentiation.

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Productivity is defined as the ratio of input to output.

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

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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? Crew Size Yards Installed 2 716 4 1298 3 1017 3 1002 4 1278 2 702

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

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A characteristic that was once an order winner may become an order qualifier, and vice versa.

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Productivity tends to be only a very minor factor in an organization's ability to compete.

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Mission statements should be as specific as possible regarding exactly how they will be accomplished.

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

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Global competition really only applies to multinational organizations.

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An example of an operational operations management decision is inventory level management.

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A productivity increase in one operation that does not improve overall productivity of the business is not

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The weekly output of a production process is shown below, together with data for labor and material inputs. The standard inventory value of the output 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 running foot. What is the average multifactor productivity for this process? Week Output \# Workers Material (ft) 1 412 6 2840 2 364 5 2550 3 392 5 2720 4 408 6 2790

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A company has introduced a process improvement that reduces processing time for each unit; output is increased by 25 percent with less material, but one additional worker is required. Under the old process, five workers could produce 60 units per hour. Labor costs are $12/hour, and material input was previously $16/unit. For the new process, material is now $10/unit. Overhead is charged at 1.6 times direct labor cost. Finished units sell for $31 each. What increase in productivity is associated with the process improvement?

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If people would only work harder, productivity would increase.

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In the 1970s and early 1980s in the United States, organizations concentrated on:

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