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

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


A) operations strategies.
B) improving quality.
C) marketing and financial strategies.
D) revising mission statements.
E) environmental issues.

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

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If people would only work harder, productivity would increase.

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

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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 2716412983101731002412782702\begin{array} { l c } \text { Crew Size } & \text { Yards Installed } \\\hline 2 & 716 \\4 & 1298 \\3 & 1017 \\3 & 1002 \\4 & 1278 \\2 & 702\end{array}


A) 2
B) 3
C) 4

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Improving efficiency will guarantee a similar improvement in productivity.

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


A) order qualifiers.
B) customization.
C) quality.
D) price.
E) flexibility.

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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) 141262840236452550339252720440862790\begin{array} { l c c c } \text { Week } & \text { Output } & \text { \# Workers } & \text { Material (ft) } \\\hline 1 & 412 & 6 & 2840 \\2 & 364 & 5 & 2550 \\3 & 392 & 5 & 2720 \\4 & 408 & 6 & 2790\end{array}

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Productivity is defined as the ratio of input to output.

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

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


A) developing productivity measures for all operations
B) improving the bottleneck operations
C) establishing reasonable goals for improvement
D) considering incentives to reward workers
E) converting bond debt to stock ownership

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


A) strategic
B) tactical
C) operational
D) customer-focused
E) design

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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:


A) product/service design time.
B) processing time.
C) delivery time.
D) response time for complaints.
E) internal audits.

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


A) worthwhile.
B) trivial.
C) competence-destroying.
D) an order winner.
E) an order qualifier.

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

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