erp ch 2 quiz
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39 Terms
Which of the following statements is FALSE regarding the "Activity-system maps?"
Activity-system maps show how a company's strategy is delivered through a set of tailored activities.
Activity-system maps depict the geographic reach of a company's business strategies.
Activity-system maps are useful in understanding how well a system of activities fits the overall company's strategy.
Activity-system maps depict the geographic reach of a company's business strategies.
Operations and supply strategy can be viewed as part of a planning process that coordinates operational goals with those of the larger organization
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Infrastructure decisions within operations strategy include the selection of the appropriate technology, the role of inventory, and the location of facilities
tf
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Operations strategy has two main parts:
Structural decisions → facilities, capacity, technology, location
Infrastructure decisions → planning systems, quality management, workforce, scheduling, inventory policy
Infrastructure decisions within operations strategy include the selection of the logic associated with the planning and control systems.
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An operations and supply chain strategy must be integrated with the organization's corporate strategy.
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In a partial measure of productivity the denominator of the ratio would include all resources used or all inputs.
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A partial measure of productivity does NOT include all inputs in the denominator.
Partial productivity = output ÷ one specific input (like labor OR capital)
Multifactor productivity = output ÷ multiple inputs
Total productivity = output ÷ all inputs (all resources used)
So the statement is describing total productivity, not partial productivity.
In a multifactor measure of productivity the numerator of the ratio would include all resources used or all inputs.
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Multifactor productivity formula:
MFP = Output / (Labor + Capital + Materials + Other selected inputs)
Key idea:
Numerator =
OutputDenominator =
Multiple inputs (NOT all inputs)
So the statement is:
Which of the following statements is FALSE?
According to the economic aspect of the triple bottom line concept, the firm is required to compensate shareholders by paying dividends and growing the value of their common stock faster than their competitors.
The social impact of the triple bottom line concept pertains to fair and beneficial business practices toward labor, the community, and the region in which a firm conducts its business.
The triple bottom line considers evaluating the firm against social, economic, and environmental criteria.
Within a sustainability framework, the economic dimension of the triple bottom line concept goes beyond just profit for the firm but also provides lasting economic benefit to society.
According to the economic aspect of the triple bottom line concept, the firm is required to compensate shareholders by paying dividends and growing the value of their common stock faster than their competitors.
This is too narrow and too “shareholder-focused.”
TBL economic dimension is about broader economic sustainability, not outperforming competitors or prioritizing shareholder returns.
Sustainability means meeting a firm's current needs without excessively compromising the ability of future generations to meet their own needs.
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Which of the following is NOT a major strategic operational competitive dimension that forms a company's competitive position?
-Management acumen
-Delivery reliability
-Delivery speed
-Coping with changes in demand
-Cost or price
Management acumen
The major operations competitive dimensions typically include:
Cost (or price)
Delivery speed
Delivery reliability
Flexibility / coping with changes in demand
Quality (often included in full lists even if not shown here)
Management acumen = refers to managerial skill/leadership ability
A major competitive dimension that forms a company's strategic operational competitive position in their strategic planning is which of the following?
Cost or price
Activity-system mapping
Focus
Straddling
Automation
Cost or price
Cost or price is a major competitive dimension because it defines a company's ability to win customers by offering the lowest expense, as seen in Walmart's strategy of everyday low prices
When developing an operations and supply chain strategy, which of the following is an important product-specific criterion to consider?
Competitor's product performance
Learning curve
Total quality management
Technical liaison
Production lot-size
Technical liaison
-a supplier may be expected to provide technical assistance for product development
In development of an operations and supply chain strategy, which of the following may be an important product-specific criteria to consider?
Production lot-size
Learning curve
Supplier after-sale support
Focus
Total quality management
Supplier after-sale support
- involves the availability of replacement parts
An activity-system map is which of the following?
A network guide to route airlines
A listing of activities that make up a project
A facility layout schematic noting what is done where
A diagram that shows how a company's strategy is delivered to customers
A timeline displaying major planned events
A diagram that shows how a company's strategy is delivered to customers
a total measure of productivity
output/inputs
a partial measure of productivity
output/materials
a multifactor measure of productivity
output/(labor+capital+energy)
If all you knew about a production system was that the total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, what kind of productivity measure could you use to compute productivity?
Global measure
Partial measure
Multifactor measure
Total measure
Partial measure
A partial measure is used because you are only looking at one single input (labor) to see how efficient it is, rather than looking at everything else like machinery or materials.
For example, if a bakery makes 100 cakes using 20 hours of labor, its labor productivity is 5 cakes per hour—ignoring the cost of the flour, sugar, or ovens used.
One of the competitive dimensions that form the competitive position of a company when planning their strategies is delivery speed.
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If all you knew about a production system was that total daily output was 400 units and the total labor necessary to produce the 400 units was 350 hours, and the total materials used were 425 units, what kind of productivity measure could you use to compute productivity?
A. Partial measure
B. Multifactor measure
C. Total measure
Choice A and B above
The total output from a production system in one day is 500 units and the total labor necessary to produce the 500 units is 350 hours. Using the appropriate productivity measure, which of the following numbers represents the resulting productivity ratio?
None of these
1.000
0.700
1.428
0.411
1.428
total output/labor hours
500/350=1.428
The total output from a production system in one day is 900 units and the total labor necessary to produce the 900 units is 900 hours. Using the appropriate productivity measure, what is the resulting productivity ratio?
0.411
1.428
0.700
1.000
None of these
1.000
Larry's Auto Body Repair Shop had revenues that averaged $60,000 per week in April and $50,000 per week in May. During both months, the shop employed six full-time (40 hours/week) workers. In April the firm also had four part-time workers working 25 hours per week but in May there were only two part-time workers and they only worked 10 hours per week. What is the percentage change in labor productivity from April to May for Larry's Auto Body Repair?
−15.82%
8.95%
2.3%
−20.00%
None of these
−25.00%
8.95%
April:
Output: $60,000
Hours: 340 (6 workers × 40 hrs + 4 workers × 25 hrs)
60000/340
Productivity: 176.5
May:
Output: $50,000
Hours: 260 (6 workers × 40 hrs + 2 workers × 10 hrs)
50000/260
Productivity: 192.3
Formula
Percentage Change = ((May Productivity - April Productivity) / April Productivity) × 100
Calculation
((192.3 - 176.5) / 176.5) × 100 = 8.95%
Various financial data for SunPath Manufacturing for 2015 and 2016 follow.
2015 | 2016 | ||||||
Output: | Sales | $ | 300,000 | $ | 330,000 | ||
Inputs: | Labor | $ | 40,000 | $ | 43,000 | ||
Raw Materials: | $ | 45,000 | $ | 51,000 | |||
Energy: | $ | 10,000 | $ | 9,000 | |||
Capital Employed: | $ | 250,000 | $ | 262,000 | |||
Other: | $ | 2,000 | $ | 6,000 | |||
What is the percentage change in SunPath’s total productivity measure between 2015 and 2016?
− 0.53
10.39
None of these answer items
2.33
− 9.22
2.88
2.88
output/inputs = productivity
(productivity2-productivity1)/productivity 1
Various financial data for SunPath Manufacturing for 2015 and 2016 follow.
2015 | 2016 | ||||||
Output: | Sales | $ | 300,000 | $ | 330,000 | ||
Inputs: | Labor | $ | 40,000 | $ | 43,000 | ||
Raw Materials: | $ | 45,000 | $ | 51,000 | |||
Energy: | $ | 10,000 | $ | 9,000 | |||
Capital Employed: | $ | 250,000 | $ | 262,000 | |||
Other: | $ | 2,000 | $ | 6,000 | |||
What is the percentage change in the energy partial productivity measure for SunPath between 2015 and 2016?
2.33%
− 9.22%
22.2%
− 0.53%
2.88%
None of these
22.2%
Various financial data for SunPath Manufacturing for 2015 and 2016 follow.
2015 | 2016 | ||||||
Output: | Sales | $ | 300,000 | $ | 330,000 | ||
Inputs: | Labor | $ | 40,000 | $ | 43,000 | ||
Raw Materials: | $ | 45,000 | $ | 51,000 | |||
Energy: | $ | 10,000 | $ | 9,000 | |||
Capital Employed: | $ | 250,000 | $ | 262,000 | |||
Other: | $ | 2,000 | $ | 6,000 | |||
What is the percentage change in the labor partial productivity measure for SunPath between 2015 and 2016?
− 0.53
None of these
10.39
− 9.22
2.33
2.88
2.33
Various financial data for SunPath Manufacturing for 2015 and 2016 follow.
2015 | 2016 | ||||||
Output: | Sales | $ | 300,000 | $ | 330,000 | ||
Inputs: | Labor | $ | 40,000 | $ | 43,000 | ||
Raw Materials: | $ | 45,000 | $ | 51,000 | |||
Energy: | $ | 10,000 | $ | 9,000 | |||
Capital Employed: | $ | 250,000 | $ | 262,000 | |||
Other: | $ | 2,000 | $ | 6,000 | |||
What is the percentage change in the multifactor labor and raw materials productivity measure for SunPath between 2015 and 2016?
−2.88
10.39
−0.53
None of these
2.33
−9.22
−0.53
What is meant by the term "operations effectiveness?"
Operations that can adapt quickly and efficiently to new and evolving conditions
Operations that run without error and with no surprises for top management
Performing activities in a manner that best implements strategic priorities at minimum cost
Products produced in sufficient volume to meet demand
Products produced at the lowest price in the industry
Performing activities in a manner that best implements strategic priorities at minimum cost
Decisions that relate to the design of the processes and the infrastructure needed to support these processes relate to which Operations and Supply Chain Management (OSCM) concept?
Competitive dimensions of OSCM
Making trade-offs
Sustainability
integrating operations and supply chain strategy with a firm's operational capabilities
Supply chain risk
integrating operations and supply chain strategy with a firm's operational capabilities
Designing processes and infrastructure is part of integrating operations and supply chain strategy with a firm's operational capabilities because it means building the exact workspace, tools, and steps a company needs to actually achieve its big business goals.
One of the competitive dimensions that form the competitive position of a company when planning their strategies is making the best trade-off.
tf
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Making a trade-off is a strategic decision or action, not a competitive dimension itself
Triple bottom line is a phrase that captures
the concept that sustainability, social awareness, and profitability are three important measures for a firm affecting shareholders and stakeholders.
the concept that firms should consider economic prosperity, environmental stewardship and social responsibility affecting only shareholders.
the concept that firms should consider economic prosperity, environmental stewardship and social responsibility affecting shareholders and stakeholders
the concept that shareholders like economic, environmental and societal stewardship affecting shareholders and stake holders.
the concept that firms should consider economic prosperity, environmental stewardship and social responsibility affecting shareholders and stakeholders
Which of the following list contains only the competitive dimensions of a firm discussed in the text?
Delivery speed, delivery reliability, order qualifiers
Cost or price, Triple bottom line, order winners
Cost or price, delivery speed, delivery reliability, new product design
Cost or price, delivery speed, delivery reliability, flexibility, and new product introduction speed
Triple bottom line, delivery speed, deliver reliability, supplier after-sale support
Cost or price, delivery speed, delivery reliability, flexibility, and new product introduction speed
Which of the following statements is TRUE in the context of operations and supply chain?
Order winners may have been order qualifiers before.
Order qualifier is a screening criterion while order winner is a differentiating criteria.
Order winners differentiate a product or service from another while order qualifiers are built-in features.
Order winners are built in features and order qualifiers are necessary features.
Order winners and order qualifiers are two ways of describing market-oriented dimensions of a product.
Order qualifier is a screening criterion while order winner is a differentiating criteria.
In a firm, if the employees attend a training program, then the time to assemble one unit reduces by 10%. Training program will
decrease capital productivity
increase both labor and multifactor productivity
increase the multifactor productivity only
increase the labor productivity only
have no effect on productivity.
increase both labor and multifactor productivity
In a firm, all other things remaining the same, if the material usage per unit of final product decreases to half of the current usage, then the firm will
double the material productivity and increase the multifactor productivity
double the material productivity
decrease capital productivity
have no effect on productivity.
increase the multifactor productivity
double the material productivity and increase the multifactor productivity
If the firm uses half as much material per unit of output, it is producing the same output with fewer material inputs.
That means:
Material productivity = output ÷ material input → input is halved → productivity doubles
By following a straddling strategy, firms can broaden their capabilities and effectively compete with more focused firms in markets requiring low cost for success.
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Straddling doesn’t fully achieve low-cost efficiency because the firm serves multiple segments, so it can’t match the cost focus of specialized low-cost competitors.
_____________ is a set of criterion that differentiates the products or services of one firm from another.
An order winner
_______ is the process when a company seeks to match the benefits of a successful position while maintaining its existing position by adding new features, services, and technologies into its current portfolio.
Straddling
_____ is a screening criterion that permits a firm's products to even be considered as possible candidates for purchase
Order qualifying