Ch2

Student:___________________________________________________________________________
1.Aneffectiveoperationsstrategymustbeintegratedwiththeorganization'scorporatestrategy.
TrueFalse

2.Oneofthecompetitivedimensionsthatformthecompetitivepositionofacompanywhenplanningtheir
strategiesiscost.
TrueFalse

3.Oneofthecompetitivedimensionsthatformthecompetitivepositionofacompanywhenplanningtheir
strategiesisdeliveryspeed.
TrueFalse

4.Oneofthecompetitivedimensionsthatformthecompetitivepositionofacompanywhenplanningtheir
strategiesistheplantwithinaplant(PWP).
TrueFalse

5.Centraltotheconceptofoperationsstrategyisthenotionofoperationsfocusandtradeoffs.
TrueFalse

6.Theprocesswhenacompanyseekstomatchthebenefitsofasuccessfulpositionwhilemaintainingits
existingpositionbyaddingnewfeatures,services,andtechnologiesintoitscurrentportfolioiscalledPWP.
TrueFalse

7.Theprocesswhenacompanyseekstomatchthebenefitsofasuccessfulpositionwhilemaintainingits
existingpositionbyaddingnewfeatures,services,andtechnologiesintoitscurrentportfolioitiscalled
straddling.
TrueFalse

8.Followingastraddlingstrategy,firmscanbroadentheircapabilitiesandeffectivelycompetewithmore
focusedfirmsinmarketsrequiringlowcostforsuccess.
TrueFalse

9.Anorderwinnerisasetofcriteriathatdifferentiatestheproductsorservicesofonefirmfromanother.
TrueFalse

10.Anorderwinnerisasetofscreeningcriteriathatpermitsafirm'sproductstobeconsideredaspossible
candidatesforpurchase.
TrueFalse

11.Anorderqualifierisasetofscreeningcriteriathatpermitsafirm'sproductstobeconsideredaspossible
candidatesforpurchase.
TrueFalse

12.Activitysystemmapsshowhowacompany'sstrategyisdeliveredthroughasetoftailoredactivities.
TrueFalse

13.Activitysystemmapsareusefulinunderstandinghowwellasystemofactivitiesfitstheoverallcompany's
strategy.
TrueFalse

14.Activitysystemmapsdepictthegeographicreachofacompany'sbusinessstrategies.
TrueFalse

15.Anoperationsstrategyinvolvesalongtermprocessthatmustresistchange.
TrueFalse

16.Anoperationsstrategyinvolvesdecisionsthatrelatetothedesignofaprocessandtheinfrastructureneeded
tosupporttheprocess.
TrueFalse

17.Infrastructuredecisionswithinoperationsstrategyincludetheselectionoftheappropriatetechnology,the
roleofinventoryandthelocationoffacilities.
TrueFalse

18.Intheoperationsstrategyframeworkproposedinthetextbook,financialmanagementisconsidereda
supportplatform.
TrueFalse

19.Processbasedcapabilitiesinserviceoperationsunderpinsuchcompetitiveadvantagesasshortleadtimes.
TrueFalse

20.Systembasedcapabilitiesinserviceoperationsunderpinsuchcompetitiveadvantagesastheabilityto
produceabroadrangeofproductsandservices.
TrueFalse

21.Processbasedcapabilitiesinserviceoperationsarederivedfromactivitiesthattransformmaterialor
informationandtendtoprovideadvantagessuchaslowcost.
TrueFalse

22.Organizationbasedcapabilitiesinserviceoperationsunderpinsuchcompetitiveadvantagesasshortlead
times.
TrueFalse

23.Onceanoperationsstrategyisadoptedandarticulated,theprimaryemphasisbecomesperfectingthesystem
ofactivitiesthatmakeupthestrategythroughdetailedrefinementsoveralongperiodoftime.
TrueFalse

24.Processbasedcapabilitiesinserviceoperationsinvolvetheabilitytomasternewtechnologies,designand
introducenewproducts,andbringnewplantsonlinesignificantlyfasterthanone'scompetitors.
TrueFalse

25.Organizationbasedcapabilitiesinserviceoperationsinvolvetheabilitytomasternewtechnologies,design
andintroducenewproducts,andbringnewplantsonlinesignificantlyfasterthanone'scompetitors.
TrueFalse

26.Productivityisarelativemeasure.
TrueFalse

27.Inapartialmeasureofproductivitythedenominatoroftheratiowouldincludeallresourcesusedorall
inputs.
TrueFalse

28.Inamultifactormeasureofproductivitythenumeratoroftheratiowouldincludeallresourcesusedorall
inputs.
TrueFalse

29.Foranoperationsbasedcompetitiveadvantagetoendureovertime,operationsbasedstrategiesmustbe
keptrelativelystablewhileundergoingcontinualrefinementandimprovement.
TrueFalse

30.Theprimaryjobofoperationsstrategyistodeliverthemostfeaturerich,highestqualityproductatthe
lowestpricewithinspecifiedparametersofdeliverytimeandcustomization.
TrueFalse

31.Whichofthefollowingisnotoneofthemajorstrategicoperationalcompetitivedimensionsthatforma
company'scompetitiveposition?
A.Costorprice
B.Deliveryspeed
C.Deliveryreliability
D.Managementacumen
E.Copingwithchangesindemand

32.Amajorcompetitivedimensionthatformsacompany'sstrategicoperationalcompetitivepositionintheir
strategicplanningiswhichofthefollowing?
A.Costorprice
B.Focusedfactories
C.PWP
D.Straddling
E.Activitysystemmaps

33.Indevelopinganoperationsstrategy,whichofthefollowingwouldbeanimportantproductspecificcriteria
toconsider?
A.Technicalliaison
B.Learningcurve
C.PlantWithinaPlant(PWP)
D.Productionlotsize
E.Totalqualitymanagement

34.Indevelopinganoperationsstrategy,whichofthefollowingwouldbeanimportantproductspecificcriteria
toconsider?
A.Focusedfactory
B.Productionlotsize
C.Supplieraftersalesupport
D.Learningcurve
E.Totalqualitymanagement

35.Whenacompanyseekstomatchthebenefitsofasuccessfulpositionwhilemaintainingitsexistingposition
inofferingcustomersavarietyofdifferingservices,whatisthisprocesscalled?
A.Operationscapabilityanalysis
B.Straddling
C.Orderqualifier
D.Orderwinners
E.Interfunctionalanalysis

36.Anactivitybasedmapiswhichofthefollowing?
A.Anetworkguidetorouteairlines
B.Alistingofactivitiesthatmakeupaproject
C.Anetworkthatshowshowacompany'sstrategyisdeliveredtocustomers
D.Afacilitylayoutschematicnotingwhatisdonewhere
E.Atimelinedisplayingmajorplannedevents

37.Theoperationsstrategyframeworkpresentedinthetextbookincludeswhichofthefollowingenterprise
capabilities?
A.Quality
B.Dependability
C.Flexibility
D.Price
E.People

38.Theoperationsstrategyframeworkpresentedinthetextbookincludeswhichofthefollowingenterprise
capabilities?
A.CustomerSatisfaction
B.ProductLeadership
C.Distribution
D.Price
E.Dependability

39.Whichofthefollowingisnotanenterprisecapabilitypresentedinthetextbookaspartoftheoperations
strategyframework?
A.Technology
B.Systems
C.People
D.R&D
E.Price

40.Intheoperationsstrategyframeworkpresentedinthetextbook,whichofthefollowingisasupport
platform?
A.Salesforcemanagement
B.Informationmanagement
C.Productionscheduling
D.Corporatemanagement
E.Customers

41.Capabilitiesofaserviceorganizationthatarederivedfromactivitiesthattransformmaterialorinformation
andtendtoprovidelowcostandhighqualityadvantagesareclassifiedaswhichofthefollowing?
A.Processbasedcapabilities
B.Systemsbasedcapabilities
C.Organizationbasedcapabilities
D.Globallybasedcapabilities
E.Marketbasedcapabilities

42.Capabilitiesofaserviceorganizationthatarederivedfromtheabilitytomasternewtechnologies,design
andintroducenewproducts,andbringnewplantsonlinesignificantlyfasterthanone'scompetitorsare
classifiedaswhichofthefollowing?
A.Processbasedcapabilities
B.Systemsbasedcapabilities
C.Organizationbasedcapabilities
D.Globallybasedcapabilities
E.Marketbasedcapabilities

43.Whichofthefollowingisapartialmeasureofproductivity?
A.Output/Materials
B.Output/(Labor+Capital+Energy)
C.Output/Allresourcesused
D.Output/Inputs
E.Alloftheabove

44.Whichofthefollowingisamultifactormeasureofproductivity?
A.Output/(Materials+Labor)
B.Output/(Labor+Capital+Energy)
C.Output/Allresourcesused
D.Output/Inputs
E.Alloftheabove

45.Whichofthefollowingisatotalmeasureofproductivity?
A.Output/Materials
B.Output/(Labor+Capital+Energy)
C.Output/Labor
D.Output/Inputs
E.Alloftheabove

46.Ifallyouknewaboutaproductionsystemwasthattotaldailyoutputwas400unitsandthetotallabor
necessarytoproducethe400unitswas350hours,whatkindofproductivitymeasurecouldyouusetocompute
productivity?
A.Partialmeasure
B.Multifactormeasure
C.Totalmeasure
D.Globalmeasure
E.Alloftheabove

47.Ifallyouknewaboutaproductionsystemwasthattotaldailyoutputwas400unitsandthetotallabor
necessarytoproducethe400unitswas350hours,andthetotalmaterialsusedwere425units,whatkindof
productivitymeasurecouldyouusetocomputeproductivity?
A.Partialmeasure
B.Multifactormeasure
C.Totalmeasure
D.AandBabove
E.BandCabove

48.Thetotaloutputfromaproductionsysteminonedayis500unitsandthetotallabornecessarytoproduce
the500unitsis350hours.Usingtheappropriateproductivitymeasure,whichofthefollowingnumbers
representstheresultingproductivityratio?
A.1.000
B.1.428
C.0.700
D.0.411
E.Noneoftheabove

49.Thetotaloutputfromaproductionsysteminonedayis900unitsandthetotallabornecessarytoproduce
the900unitsis900hours.Usingtheappropriateproductivitymeasure,whatistheresultingproductivityratio?
A.1.000
B.1.428
C.0.700
D.0.411
E.Noneoftheabove

50.Larry'sAutoBodyRepairShophadrevenuesthataveraged$60,000perweekinApriland$50,000per
weekinMay.Duringbothmonths,theshopemployedsixfulltime(40hours/week)workers.InAprilthefirm
alsohadfourparttimeworkersworking25hoursperweekbutinMaytherewereonly2parttimeworkersand
theyonlyworked10hoursperweek.WhatisthepercentagechangeinlaborproductivityfromApriltoMayfor
Larry'sAutoBodyRepair?
A.17.65
B.15.84
C.8.97
D.1.76
E.19.23

51.VariousfinancialdataforSunPathManufacturingfor2005&2006follow.

WhatisthepercentagechangeinSunPath'stotalproductivitymeasurebetween2005&2006?
A.9.22
B.2.33
C.0.53
D.2.88
E.10.39

52.VariousfinancialdataforSunPathManufacturingfor2005&2006follow.

WhatisthepercentagechangeintheenergypartialproductivitymeasureforSunPathbetween2005&2006?
A.9.22
B.2.33
C.0.53
D.2.88
E.10.39

53.VariousfinancialdataforSunPathManufacturingfor2005&2006follow.

WhatisthepercentagechangeinthelaborpartialproductivitymeasureforSunPathbetween2005&2006?
A.9.22
B.2.33
C.0.53
D.2.88
E.10.39

54.VariousfinancialdataforSunPathManufacturingfor2005&2006follow.

WhatisthepercentagechangeinthemultifactorlaborandrawmaterialsproductivitymeasureforSunPath
between2005&2006?
A.9.22
B.2.33
C.0.53
D.2.88
E.10.39

55.Whatconceptsuggeststhatdifferentmanufacturingstrategiescancoexistwithoutconfusioninthesame
factory?

56.Whatisacriterionorproductcharacteristicthatdifferentiatesaproductfromtheproductsofcompetitorsin
awaymeaningfultothemarketcalled?

57.Aspecificstrategythatdefineshowacompanywillcompetefornewcustomersoranincreasingshareof
existingcustomerbusinessiscalledwhat?

58.Adiagramshowinghowacompany'sstrategyisdeliveredthroughasetoftailoredactivitiesiscalledwhat?

59.Theskillsthatdifferentiateamanufacturingorservicefirmfromitsrivalsarecalledwhat?

60.Describeaspecificexampleofthetradeoffsbetweenanytwoofthesevenoperationalcompetitive
dimensions.

61.ConsiderKaplanandNorton'sGenericStrategyMap.Explaintheadvantagesandtherisksoffocusing
exclusivelyonthe"productivitystrategy"ratherthanthe"revenuegrowthstrategy"asameansofimproving
shareholdervalue.

62.Explaintherolethat"orderqualifiers"and"orderwinners"playastheinterfacebetweenmarketingand
operations.

63.Whymightapartialproductivitymeasurebepreferredtothemorecomprehensivetotalfactormeasureof
productivity?

64.Whatarethethreemajorcomponentsofstrategy?

65.Whatarethemainobjectivesoftheprocessofdevelopingamanufacturingstrategy?

Ch2Key

1.Aneffectiveoperationsstrategymustbeintegratedwiththeorganization'scorporatestrategy.
TRUE

Chase002Operations...#1
Level:Easy

2.Oneofthecompetitivedimensionsthatformthecompetitivepositionofacompanywhenplanningtheir
strategiesiscost.
TRUE

Chase002Operations...#2
Level:Easy

3.Oneofthecompetitivedimensionsthatformthecompetitivepositionofacompanywhenplanningtheir
strategiesisdeliveryspeed.
TRUE

Chase002Operations...#3
Level:Easy

4.Oneofthecompetitivedimensionsthatformthecompetitivepositionofacompanywhenplanningtheir
strategiesistheplantwithinaplant(PWP).
FALSE

Chase002Operations...#4
Level:Easy

5.Centraltotheconceptofoperationsstrategyisthenotionofoperationsfocusandtradeoffs.
TRUE

Chase002Operations...#5
Level:Easy

6.Theprocesswhenacompanyseekstomatchthebenefitsofasuccessfulpositionwhilemaintainingits
existingpositionbyaddingnewfeatures,services,andtechnologiesintoitscurrentportfolioiscalledPWP.
FALSE

Chase002Operations...#6
Level:Easy

7.Theprocesswhenacompanyseekstomatchthebenefitsofasuccessfulpositionwhilemaintainingits
existingpositionbyaddingnewfeatures,services,andtechnologiesintoitscurrentportfolioitiscalled
straddling.
TRUE

Chase002Operations...#7
Level:Easy

8.Followingastraddlingstrategy,firmscanbroadentheircapabilitiesandeffectivelycompetewithmore
focusedfirmsinmarketsrequiringlowcostforsuccess.
FALSE

Chase002Operations...#8
Level:Medium

9.Anorderwinnerisasetofcriteriathatdifferentiatestheproductsorservicesofonefirmfromanother.
TRUE

Chase002Operations...#9
Level:Easy

10.Anorderwinnerisasetofscreeningcriteriathatpermitsafirm'sproductstobeconsideredaspossible
candidatesforpurchase.
FALSE

Chase002Operations...#10
Level:Easy

11.Anorderqualifierisasetofscreeningcriteriathatpermitsafirm'sproductstobeconsideredaspossible
candidatesforpurchase.
TRUE

Chase002Operations...#11
Level:Easy

12.Activitysystemmapsshowhowacompany'sstrategyisdeliveredthroughasetoftailoredactivities.
TRUE

Chase002Operations...#12
Level:Easy

13.Activitysystemmapsareusefulinunderstandinghowwellasystemofactivitiesfitstheoverallcompany's
strategy.
TRUE

Chase002Operations...#13
Level:Easy

14.Activitysystemmapsdepictthegeographicreachofacompany'sbusinessstrategies.
FALSE

Chase002Operations...#14
Level:Easy

15.Anoperationsstrategyinvolvesalongtermprocessthatmustresistchange.
FALSE

Chase002Operations...#15
Level:Easy

16.Anoperationsstrategyinvolvesdecisionsthatrelatetothedesignofaprocessandtheinfrastructureneeded
tosupporttheprocess.
TRUE

Chase002Operations...#16
Level:Easy

17.Infrastructuredecisionswithinoperationsstrategyincludetheselectionoftheappropriatetechnology,the
roleofinventoryandthelocationoffacilities.
FALSE

Chase002Operations...#17
Level:Medium

18.Intheoperationsstrategyframeworkproposedinthetextbook,financialmanagementisconsidereda
supportplatform.
TRUE

Chase002Operations...#18
Level:Easy

19.Processbasedcapabilitiesinserviceoperationsunderpinsuchcompetitiveadvantagesasshortleadtimes.
FALSE

Chase002Operations...#19
Level:Medium

20.Systembasedcapabilitiesinserviceoperationsunderpinsuchcompetitiveadvantagesastheabilityto
produceabroadrangeofproductsandservices.
TRUE

Chase002Operations...#20
Level:Medium

21.Processbasedcapabilitiesinserviceoperationsarederivedfromactivitiesthattransformmaterialor
informationandtendtoprovideadvantagessuchaslowcost.
TRUE

Chase002Operations...#21
Level:Medium

22.Organizationbasedcapabilitiesinserviceoperationsunderpinsuchcompetitiveadvantagesasshortlead
times.
FALSE

Chase002Operations...#22
Level:Medium

23.Onceanoperationsstrategyisadoptedandarticulated,theprimaryemphasisbecomesperfectingthesystem
ofactivitiesthatmakeupthestrategythroughdetailedrefinementsoveralongperiodoftime.
FALSE

Chase002Operations...#23
Level:Medium

24.Processbasedcapabilitiesinserviceoperationsinvolvetheabilitytomasternewtechnologies,designand
introducenewproducts,andbringnewplantsonlinesignificantlyfasterthanone'scompetitors.
FALSE

Chase002Operations...#24
Level:Medium

25.Organizationbasedcapabilitiesinserviceoperationsinvolvetheabilitytomasternewtechnologies,design
andintroducenewproducts,andbringnewplantsonlinesignificantlyfasterthanone'scompetitors.
TRUE

Chase002Operations...#25
Level:Medium

26.Productivityisarelativemeasure.
TRUE

Chase002Operations...#26
Level:Easy

27.Inapartialmeasureofproductivitythedenominatoroftheratiowouldincludeallresourcesusedorall
inputs.
FALSE

Chase002Operations...#27
Level:Easy

28.Inamultifactormeasureofproductivitythenumeratoroftheratiowouldincludeallresourcesusedorall
inputs.
FALSE

Chase002Operations...#28
Level:Easy

29.Foranoperationsbasedcompetitiveadvantagetoendureovertime,operationsbasedstrategiesmustbe
keptrelativelystablewhileundergoingcontinualrefinementandimprovement.
FALSE

Chase002Operations...#29
Level:Medium

30.Theprimaryjobofoperationsstrategyistodeliverthemostfeaturerich,highestqualityproductatthe
lowestpricewithinspecifiedparametersofdeliverytimeandcustomization.
FALSE

Chase002Operations...#30
Level:Medium

31.Whichofthefollowingisnotoneofthemajorstrategicoperationalcompetitivedimensionsthatforma
company'scompetitiveposition?
A.Costorprice
B.Deliveryspeed
C.Deliveryreliability
D.Managementacumen
E.Copingwithchangesindemand

Chase002Operations...#31
Level:Medium

32.Amajorcompetitivedimensionthatformsacompany'sstrategicoperationalcompetitivepositionintheir
strategicplanningiswhichofthefollowing?
A.Costorprice
B.Focusedfactories
C.PWP
D.Straddling
E.Activitysystemmaps

Chase002Operations...#32
Level:Easy

33.Indevelopinganoperationsstrategy,whichofthefollowingwouldbeanimportantproductspecificcriteria
toconsider?
A.Technicalliaison
B.Learningcurve
C.PlantWithinaPlant(PWP)
D.Productionlotsize
E.Totalqualitymanagement

Chase002Operations...#33
Level:Easy

34.Indevelopinganoperationsstrategy,whichofthefollowingwouldbeanimportantproductspecificcriteria
toconsider?
A.Focusedfactory
B.Productionlotsize
C.Supplieraftersalesupport
D.Learningcurve
E.Totalqualitymanagement

Chase002Operations...#34
Level:Easy

35.Whenacompanyseekstomatchthebenefitsofasuccessfulpositionwhilemaintainingitsexistingposition
inofferingcustomersavarietyofdifferingservices,whatisthisprocesscalled?
A.Operationscapabilityanalysis
B.Straddling
C.Orderqualifier
D.Orderwinners
E.Interfunctionalanalysis

Chase002Operations...#35
Level:Easy

36.Anactivitybasedmapiswhichofthefollowing?
A.Anetworkguidetorouteairlines
B.Alistingofactivitiesthatmakeupaproject
C.Anetworkthatshowshowacompany'sstrategyisdeliveredtocustomers
D.Afacilitylayoutschematicnotingwhatisdonewhere
E.Atimelinedisplayingmajorplannedevents

Chase002Operations...#36
Level:Easy

37.Theoperationsstrategyframeworkpresentedinthetextbookincludeswhichofthefollowingenterprise
capabilities?
A.Quality
B.Dependability
C.Flexibility
D.Price
E.People

Chase002Operations...#37
Level:Medium

38.Theoperationsstrategyframeworkpresentedinthetextbookincludeswhichofthefollowingenterprise
capabilities?
A.CustomerSatisfaction
B.ProductLeadership
C.Distribution
D.Price
E.Dependability

Chase002Operations...#38
Level:Medium

39.Whichofthefollowingisnotanenterprisecapabilitypresentedinthetextbookaspartoftheoperations
strategyframework?
A.Technology
B.Systems
C.People
D.R&D
E.Price

Chase002Operations...#39
Level:Medium

40.Intheoperationsstrategyframeworkpresentedinthetextbook,whichofthefollowingisasupport
platform?
A.Salesforcemanagement
B.Informationmanagement
C.Productionscheduling
D.Corporatemanagement
E.Customers

Chase002Operations...#40
Level:Easy

41.Capabilitiesofaserviceorganizationthatarederivedfromactivitiesthattransformmaterialorinformation
andtendtoprovidelowcostandhighqualityadvantagesareclassifiedaswhichofthefollowing?
A.Processbasedcapabilities
B.Systemsbasedcapabilities
C.Organizationbasedcapabilities
D.Globallybasedcapabilities
E.Marketbasedcapabilities

Chase002Operations...#41
Level:Medium

42.Capabilitiesofaserviceorganizationthatarederivedfromtheabilitytomasternewtechnologies,design
andintroducenewproducts,andbringnewplantsonlinesignificantlyfasterthanone'scompetitorsare
classifiedaswhichofthefollowing?
A.Processbasedcapabilities
B.Systemsbasedcapabilities
C.Organizationbasedcapabilities
D.Globallybasedcapabilities
E.Marketbasedcapabilities

Chase002Operations...#42
Level:Medium

43.Whichofthefollowingisapartialmeasureofproductivity?
A.Output/Materials
B.Output/(Labor+Capital+Energy)
C.Output/Allresourcesused
D.Output/Inputs
E.Alloftheabove

Chase002Operations...#43
Level:Easy

44.Whichofthefollowingisamultifactormeasureofproductivity?
A.Output/(Materials+Labor)
B.Output/(Labor+Capital+Energy)
C.Output/Allresourcesused
D.Output/Inputs
E.Alloftheabove

Chase002Operations...#44
Level:Easy

45.Whichofthefollowingisatotalmeasureofproductivity?
A.Output/Materials
B.Output/(Labor+Capital+Energy)
C.Output/Labor
D.Output/Inputs
E.Alloftheabove

Chase002Operations...#45
Level:Easy

46.Ifallyouknewaboutaproductionsystemwasthattotaldailyoutputwas400unitsandthetotallabor
necessarytoproducethe400unitswas350hours,whatkindofproductivitymeasurecouldyouusetocompute
productivity?
A.Partialmeasure
B.Multifactormeasure
C.Totalmeasure
D.Globalmeasure
E.Alloftheabove

Chase002Operations...#46
Level:Medium

47.Ifallyouknewaboutaproductionsystemwasthattotaldailyoutputwas400unitsandthetotallabor
necessarytoproducethe400unitswas350hours,andthetotalmaterialsusedwere425units,whatkindof
productivitymeasurecouldyouusetocomputeproductivity?
A.Partialmeasure
B.Multifactormeasure
C.Totalmeasure
D.AandBabove
E.BandCabove

Chase002Operations...#47
Level:Medium

48.Thetotaloutputfromaproductionsysteminonedayis500unitsandthetotallabornecessarytoproduce
the500unitsis350hours.Usingtheappropriateproductivitymeasure,whichofthefollowingnumbers
representstheresultingproductivityratio?
A.1.000
B.1.428
C.0.700
D.0.411
E.Noneoftheabove

Chase002Operations...#48
Level:Medium

49.Thetotaloutputfromaproductionsysteminonedayis900unitsandthetotallabornecessarytoproduce
the900unitsis900hours.Usingtheappropriateproductivitymeasure,whatistheresultingproductivityratio?
A.1.000
B.1.428
C.0.700
D.0.411
E.Noneoftheabove

Chase002Operations...#49
Level:Medium

50.Larry'sAutoBodyRepairShophadrevenuesthataveraged$60,000perweekinApriland$50,000per
weekinMay.Duringbothmonths,theshopemployedsixfulltime(40hours/week)workers.InAprilthefirm
alsohadfourparttimeworkersworking25hoursperweekbutinMaytherewereonly2parttimeworkersand
theyonlyworked10hoursperweek.WhatisthepercentagechangeinlaborproductivityfromApriltoMayfor
Larry'sAutoBodyRepair?
A.17.65
B.15.84
C.8.97
D.1.76
E.19.23

Chase002Operations...#50
Level:Hard

51.VariousfinancialdataforSunPathManufacturingfor2005&2006follow.

WhatisthepercentagechangeinSunPath'stotalproductivitymeasurebetween2005&2006?
A.9.22
B.2.33
C.0.53
D.2.88
E.10.39

Chase002Operations...#51
Level:Hard

52.VariousfinancialdataforSunPathManufacturingfor2005&2006follow.

WhatisthepercentagechangeintheenergypartialproductivitymeasureforSunPathbetween2005&2006?
A.9.22
B.2.33
C.0.53
D.2.88
E.10.39

Chase002Operations...#52
Level:Medium

53.VariousfinancialdataforSunPathManufacturingfor2005&2006follow.

WhatisthepercentagechangeinthelaborpartialproductivitymeasureforSunPathbetween2005&2006?
A.9.22
B.2.33
C.0.53
D.2.88
E.10.39

Chase002Operations...#53
Level:Medium

54.VariousfinancialdataforSunPathManufacturingfor2005&2006follow.

WhatisthepercentagechangeinthemultifactorlaborandrawmaterialsproductivitymeasureforSunPath
between2005&2006?
A.9.22
B.2.33
C.0.53
D.2.88
E.10.39

Chase002Operations...#54
Level:Hard

55.Whatconceptsuggeststhatdifferentmanufacturingstrategiescancoexistwithoutconfusioninthesame
factory?
PlantWithinAPlant(PWP)

Chase002Operations...#55
Level:Easy

56.Whatisacriterionorproductcharacteristicthatdifferentiatesaproductfromtheproductsofcompetitorsin
awaymeaningfultothemarketcalled?
Orderwinner

Chase002Operations...#56
Level:Medium

57.Aspecificstrategythatdefineshowacompanywillcompetefornewcustomersoranincreasingshareof
existingcustomerbusinessiscalledwhat?
Thevalueproposition

Chase002Operations...#57
Level:Medium

58.Adiagramshowinghowacompany'sstrategyisdeliveredthroughasetoftailoredactivitiesiscalledwhat?
Activitysystemmap

Chase002Operations...#58
Level:Medium

59.Theskillsthatdifferentiateamanufacturingorservicefirmfromitsrivalsarecalledwhat?
Corecapabilitiesorcorecompetencies

Chase002Operations...#59
Level:Easy

60.Describeaspecificexampleofthetradeoffsbetweenanytwoofthesevenoperationalcompetitive
dimensions.
Thisquestionrequiresthatthestudentrecallatleasttwoofthesevenoperationaldimensionsdescribedunder
theheading"OperationsCompetitiveDimensions"onpages2526ofthetext.Inevaluatingthestudent's
responsetheinstructorshouldtakecarethatthestudent'sargumentsdo,indeedillustratea"tradeoff"ora
situationwhereanimprovementinonedimensioncomesatthecostofalesseningofadifferentdimension.A
fairlycommonexampleisbetweenachievinglowcostorpriceattheexpenseofquality.Forthisexampleitis
necessaryforthestudenttospecifythatheistalkingaboutreducingdesignqualitytoachievelowcost(for
example)insteadofprocessqualitywhereimprovementstypicallyresultinloweredcost.

Chase002Operations...#60
Level:Medium

61.ConsiderKaplanandNorton'sGenericStrategyMap.Explaintheadvantagesandtherisksoffocusing
exclusivelyonthe"productivitystrategy"ratherthanthe"revenuegrowthstrategy"asameansofimproving
shareholdervalue.
Asuccessfulresponsetothisquestionwillindicatethatabalancedstrategywithsomeemphasisonbothis
consideredbest.Thestudentshouldbeabletodifferentiatebetweenthetimingofresultsseenfromthetwo
strategies,thatis,thatthe"productivitystrategy"willhavetypicallyyieldresultssoonerthanthe"revenue
growthstrategy."Discussionofthistopicisfoundinthetextonpages2830undertheheading"TheCorporate
StrategyDesignProcess."

Chase002Operations...#61
Level:Medium

62.Explaintherolethat"orderqualifiers"and"orderwinners"playastheinterfacebetweenmarketingand
operations.
Thestudent'sanswertothisquestionshouldindicatetheusefulnessofarticulatinganddifferentiatingbetween
orderwinnersandorderqualifiers.Inessence,thesefactorsshouldindicatetheessenceofwhatisrequiredto
competeinthemarketplaceandthewaysthattheproductorservice,itself,differentiatesitselffromcompeting
productsandservices.Thistopicisdiscussedinthetextonpages2728undertheheading"OrderWinnersand
Qualifiers:TheMarketingOperationsLink."

Chase002Operations...#62
Level:Medium

63.Whymightapartialproductivitymeasurebepreferredtothemorecomprehensivetotalfactormeasureof
productivity?
Studentresponsestothisquestionwillseparatethemselvesintoreasonsrelatedtotheadequacyandreliability
ofdata(acorrectbutonlysatisfactoryresponse)andreasonsrelatedtotheusesoftheproductivitymeasure(a
morethoughtfulresponse.)Asanexampleofthelatter,apartialproductivitymeasureofenergymightbeof
interestwhentrackingnewenergyconservationpolicies.Amorethoroughdiscussionoftheseissuescanbe
foundinthetextonpages3941undertheheading"ProductivityMeasurement."

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64.Whatarethethreemajorcomponentsofstrategy?
Thethreemajorcomponentsofstrategyareoperationseffectiveness,customermanagementandproduct
innovation.Thispointismadeinthetextonpage24immediatelyfollowingtheSouthwestAirlinesexample
whichbeginsthechapter.

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Level:Hard

65.Whatarethemainobjectivesoftheprocessofdevelopingamanufacturingstrategy?
Totranslatetherequiredcompetitivedimensionsoftheproduct(notethepossiblelanguagerelatingtoorder
winnersandqualifiers)intospecificperformancerequirementsmeaningfultooperationsandtomakethe
necessaryplanstoensurethatoperationscapabilitiesaresufficienttoaccomplishthem.Thisissueisdiscussed
onpage35ofthetextundertheheading"DevelopingaManufacturingStrategy."

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Ch2Summary
Category

#ofQuestions

Chase002Operations...

65

Level:Easy

30

Level:Hard

Level:Medium

31