Question 1

Gourmet Pretzels bakes soft pretzels on an assembly line. It currently bakes 800 pretzels each eight-hour shift. If the production is increased to 1,200 pretzels each shift, then productivity will have increased by:

Accepted Answer

The productivity increase is calculated by the formula [(New Production - Old Production) / Old Production] * 100. So, [(1200 - 800) / 800] * 100 = 50 percent.

Question 2

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

Accepted Answer

A productivity increase in one operation that does not improve overall productivity of the business is not worthwhile because it does not contribute to the overall efficiency or effectiveness of the business operations.

Question 3

For an organization to grow its market share, it must:

Accepted Answer

Exceeding minimum standards of acceptability for products or services can lead to higher customer satisfaction and loyalty, which can help grow market share.

Question 4

Which of the following is true?

Accepted Answer

Functional strategies are shaped by corporate strategy as they are developed to support and implement the broader goals and objectives set at the corporate level.

Question 5

With regard to operations, organization strategy should, ideally, take into account:

Accepted Answer

Organization strategy should consider operations' strengths and weaknesses to align operational capabilities with strategic goals.

Question 6

The external elements of SWOT analysis are:

Accepted Answer

Opportunities and threats are considered external elements in a SWOT analysis, as they are external factors that can impact an organization's performance but are outside of its direct control.

Question 7

Which of the following is not a key factor of competitiveness?

Accepted Answer

Size of the organization is not inherently a key factor of competitiveness. Competitiveness is more directly influenced by factors such as price, product differentiation, flexibility, and after-sale service, which can affect an organization's ability to compete in the market regardless of its size.

Question 8

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

Accepted Answer

Converting bond debt to stock ownership is not directly related to improving productivity. It is a financial strategy that might affect the company's capital structure but does not directly impact the operational or process improvements needed to enhance productivity.

Question 9

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

Accepted Answer

The labor productivity is calculated by dividing the total output by the total input. Here, the total output is 450 chairs per week, and the total input is 6 employees working for 5 days. So, the productivity per worker per day is $ \frac{450}{6 \times 5} = 15 $ chairs/worker/day.

Question 10

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

Accepted Answer

Product price is a result of productivity, not a factor affecting it. Factors that affect productivity include elements that directly impact the efficiency and effectiveness of production processes, such as computer viruses, workspace design, internet use, and process standardization.

Question 11

The fundamental purpose for the existence of any organization is described by its:

Accepted Answer

The fundamental purpose for the existence of any organization is described by its mission statement. The mission statement outlines the organization's goals, purpose, and values, guiding its operations and strategic direction.

Question 12

Which of the following is not typically considered a cure for poor competitiveness?

Accepted Answer

Minimizing attention to the operations function is not typically considered a cure for poor competitiveness. Operations are central to a company's ability to compete effectively, as they directly impact product quality, cost, and delivery. Improving operations is often a key strategy in enhancing competitiveness.

Question 13

The ratio of good output to quantity of raw material input is called

Accepted Answer

Process yield refers to the ratio of good output (i.e., the amount of usable product) to the quantity of raw material input. It is a measure of the efficiency and effectiveness of a manufacturing process in converting raw materials into good, usable products.

Question 14

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?

Accepted Answer

The answer of The manager of a carpet store is...

Question 15

Which of these factors would be least likely to affect productivity?

Accepted Answer

Advertising primarily influences demand and sales rather than the efficiency or effectiveness of production processes, making it the least likely factor to affect productivity directly.

Question 16

Core competencies in organizations generally do not relate to:

Accepted Answer

Core competencies in organizations relate to their fundamental strengths or strategic advantages in areas such as cost, quality, time, and flexibility. Sales price, while important, is more of a result of these competencies rather than a core competency itself. Core competencies are about how efficiently and effectively an organization can perform critical internal functions.

Question 17

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

Accepted Answer

Time-based approaches in business organizations typically focus on reducing the time it takes to accomplish external-facing or customer-impacting activities such as product/service design, processing, delivery, and response times for complaints. Internal audits, while important for compliance and operational efficiency, are less often the focus of time reduction efforts in these strategies, as they do not directly impact the speed of service or product delivery to the customer.

Question 18

The weekly output of a fabrication process is shown below, together with data for labor and material inputs. Standard selling price 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 foot. What is the average multifactor productivity?

Accepted Answer

The answer of The weekly output of a fabrication process...

Question 19

Which of the following is not a reason for poor performance of our organization in the marketplace?

Accepted Answer

D is not a reason for poor performance; it actually describes a positive action that should help an organization perform well by leveraging its strengths and opportunities while being aware of and addressing competitive threats.

Question 20

Productivity growth can be calculated by:

Accepted Answer

Productivity growth is calculated by dividing the change in productivity by the previous productivity and multiplying by 100.

Quiz 2: Competitiveness, Strategy, and Productivity