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A company has introduced a process improvement that reduces processing time for each unit,so that output is increased by 25% with less material,but one additional worker required.Under the old process,five workers could produce 60 units per hour.Labour 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 labour cost.Finished units sell for $31 each.What increase in productivity is associated with the process improvement?

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Making trade-offs among competitive priorities should be avoided in developing operations strategies.

A) True
B) False

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False

If you think of goals as destinations,then tactics are the roadmaps for reaching the destinations.

A) True
B) False

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The purchasing criteria of quality and timeliness of delivery are order winners for all companies.

A) True
B) False

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In an assembly operation at a furniture factory,six employees assembled an average of 450 standard dining chairs per 5-day week.What is the labour productivity of this operation?


A) 90 chairs/worker/day
B) 20 chairs/worker/day
C) 15 chairs/worker/day
D) 75 chairs/worker/day
E) None of the choices are correct.

F) C) and D)
G) B) and E)

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Which of the following is not a factor that affects productivity?


A) Use of computers in an office.
B) Design of the workspace.
C) Use of Internet and e-mail.
D) Standardizing work process.
E) Analysis of competitors.

F) None of the above
G) C) and E)

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Which of the following is not a general factor that affects productivity?


A) Methods and management
B) Equipment and technology
C) Competitors
D) Labour

E) None of the above
F) A) and B)

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Productivity is defined as the ratio of output to input.

A) True
B) False

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True

Product variety is an example of:


A) a generic operations strategy.
B) operations infrastructure.
C) a process type.
D) a dimension of flexibility.
E) a key purchasing criteria.

F) B) and E)
G) A) and E)

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Typically a manufacturing firm would not consider Enterprise Resource Planning (ERP)software as part of the organizations operations strategy.

A) True
B) False

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It is important that an organization has a clear and simple mission/vision/values statement.

A) True
B) False

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Time-Based strategies do not focus on:


A) the time to deliver a product.
B) maintaining quality.
C) planning time.
D) production design time.
E) changeover time.

F) A) and C)
G) C) and D)

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Which of the following are steps for formulating an operations strategy? I.Link the organizational goals to the operations strategy. II.Define the mission and values of the organization. III.Conduct an audit to determine the strengths/weaknesses of the current operations strategy. IV.Assess the degree of focus at each plant.


A) I and II only
B) I, II, and III only
C) I, III, and IV only
D) II, III, and IV only
E) I, II, III, and IV

F) C) and D)
G) A) and B)

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The generic operations strategy that emphasizes capital-intensive methods to achieve higher labour productivity and lower unit costs is referred to as _____________.


A) low labour cost strategy
B) scale-based strategy
C) focused factories strategy
D) outsourcing
E) flexible factories strategy

F) A) and E)
G) A) and D)

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In the 1990's Japanese manufacturing companies tended to shift their strategic orientation away from continuous improvement towards strategies based on low labour costs.

A) True
B) False

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Order qualifiers are those characteristics of an organization's goods or services that cause them to be perceived as better than the competition.

A) True
B) False

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Productivity is directly related to competitiveness.

A) True
B) False

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The manager of a carpet store is trying to determine optimal installation crew size.He has tried various crew sizes with the results shown below.Compute the average labour productivity for each crew size.Which crew size do you recommend? The manager of a carpet store is trying to determine optimal installation crew size.He has tried various crew sizes with the results shown below.Compute the average labour productivity for each crew size.Which crew size do you recommend?

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Labour costs are included as one of the inputs in all productivity measures.

A) True
B) False

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False

Time-based strategies focus on reducing the time required to accomplish certain activities,such as new product development or delivery to the customer.

A) True
B) False

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