Chapter 2
Competitiveness, Strategy and Productivity
True/False
1. An example of a strategic operations management decision is the choice of where
to locate.
Answer: True
2. An example of an operational operations management decision is inventory level
management.
Answer: True
3. An example of a tactical operations management decision is whether to build a
new facility or to expand an existing one.
Answer: False
4. An example of a tactical operations management decision is determining
employment levels.
Answer: True
5. Productivity is defined as the ratio of output to input.
Answer: True
6. Productivity is defined as the ratio of input to output.
Answer: False
7. Competitiveness relates to the profitability of an organization in the marketplace.
Answer: False
8. If people would only work harder, productivity would increase.
Answer: False
9. Tracking productivity measures over time enables managers to judge
organizational performance and decide where improvements are needed.
Answer: True
10. Productivity is directly related to the ability of an organization to compete.
Answer: True
1
, 11. A characteristic that was once an order winner may become an order qualifier,
and vice versa.
Answer: True
12. Outsourcing tends to improve quality but at the cost of lowered productivity.
Answer: False
13. Productivity tends to be only a very minor factor in an organizations ability to
compete.
Answer: False
14. An organization that is twice as productive as its competitor will be twice as
profitable.
Answer: False
15. National productivity is determined by averaging the productivity measures of
various companies or industries.
Answer: False
16. Wage and salary increases that are not accompanied by productivity increases
tend to exert inflationary pressures on a nation's economy.
Answer: True
17. Global competition really only applies to multi-national organizations.
Answer: False
18. A business that is rated highly by their customers for service quality will tend to
be more profitable than a business that is rated poorly.
Answer: True
19. Services often don’t fit simple yield measurements.
Answer: True
20. A mission statement should provide a guide for the formulation of strategies for
the organization.
Answer: True
21. The hierarchy and sequence of planning and decision-making is: mission,
organizational strategy, tactics, and operational decisions.
Answer: True
2
Competitiveness, Strategy and Productivity
True/False
1. An example of a strategic operations management decision is the choice of where
to locate.
Answer: True
2. An example of an operational operations management decision is inventory level
management.
Answer: True
3. An example of a tactical operations management decision is whether to build a
new facility or to expand an existing one.
Answer: False
4. An example of a tactical operations management decision is determining
employment levels.
Answer: True
5. Productivity is defined as the ratio of output to input.
Answer: True
6. Productivity is defined as the ratio of input to output.
Answer: False
7. Competitiveness relates to the profitability of an organization in the marketplace.
Answer: False
8. If people would only work harder, productivity would increase.
Answer: False
9. Tracking productivity measures over time enables managers to judge
organizational performance and decide where improvements are needed.
Answer: True
10. Productivity is directly related to the ability of an organization to compete.
Answer: True
1
, 11. A characteristic that was once an order winner may become an order qualifier,
and vice versa.
Answer: True
12. Outsourcing tends to improve quality but at the cost of lowered productivity.
Answer: False
13. Productivity tends to be only a very minor factor in an organizations ability to
compete.
Answer: False
14. An organization that is twice as productive as its competitor will be twice as
profitable.
Answer: False
15. National productivity is determined by averaging the productivity measures of
various companies or industries.
Answer: False
16. Wage and salary increases that are not accompanied by productivity increases
tend to exert inflationary pressures on a nation's economy.
Answer: True
17. Global competition really only applies to multi-national organizations.
Answer: False
18. A business that is rated highly by their customers for service quality will tend to
be more profitable than a business that is rated poorly.
Answer: True
19. Services often don’t fit simple yield measurements.
Answer: True
20. A mission statement should provide a guide for the formulation of strategies for
the organization.
Answer: True
21. The hierarchy and sequence of planning and decision-making is: mission,
organizational strategy, tactics, and operational decisions.
Answer: True
2
