Solutions for Operations and
Supply Chain Management for
MBAs, 8th Edition
Job Performance - ANSWERSvalue of set of employee behaviors that contribute either positvely or
negatively to a organization goal accomplishment
Operations Management - ANSWERSdesign, operates and improves productive systems - systems for
getting work done
Operations - ANSWERSis often defined as a transformation process
inputs (material, machines , labor, management, )= outputs(goods or service )
The role of operations is to create - ANSWERSvalue
Value Chain - ANSWERSa serious of activities from supplier to customers that add value to product
or service
Competitiveness - ANSWERSThe degree to which a nation can produce goods and services that meet
the test of international markets
Productivity - ANSWERSoutput/input
Productivity - ANSWERSthe ratio of output to input
Productivity is - ANSWERSthe most common measure of competitiveness
Increase in Productivity - ANSWERS1)allow wages to grow without producing
inflation, thus raising the standard of living
2) productivity growth also represents how quickly an economy can expand its capacity to supply
goods and services
,Single -factor productivity - ANSWERScompares output to individual input, such as labor hrs,
investments in equipment, material usage, or square footage
Multifactor productivity - ANSWERSrelates to output to a combination of inputs such as
(labor+capital) or (labor + capital +energy +materials)
Capital can include - ANSWERSfacilities, inventory, land
Total Factor Productivity - ANSWERScompares the total quantity of goods and services produced
with all the inputs used to produce them
Examples of Single- Factor productivity - ANSWERS1)output/ labor
2) output/ materials
3)output/ capital
Examples of Multi factor Productivity - ANSWERS1)output/ labor+ materials+overhead
2) output/labor+energy+capital
Examples of Total Factor Productivity - ANSWERSgoods and services produced
/ all inputs used to produce them
Misleading Patterns of Productivity - ANSWERS1)Companies can be retrenching but still have
productivity increase,
2)productivity assumes that if there is more input there is more output
3) productivity emphasizes output produced not output sold
Strategy - ANSWERSprovides direction for achieving a mission
5 Strategy Steps - ANSWERS1) Defining Primary Task
2) Assessing core competencies
3) Determining order winners and order qualifiers
4) Positioning the firm
, 5) Developing the strategy
Primary Task - ANSWERSwhat the firm is in business doing (goes along with mission statement )
Core Competency - ANSWERSWhat the firm does better than anyone else.
1) Based on experience, knowledge , know-how, core competencies represents sustainable
competitive advantage
Core competencies that do not evolve and are not aligned with customer needs can become -
ANSWERScore rigidities
ex: Dell customers started to want to test computers more and personal after service customer
service
Order qualifiers and order winners - ANSWERS1)what qualifies an item to be considered for
purchase
low prices but not what wowed a customer
2) what wins the order
Positioning - ANSWERShow the firm chooses to compete ( strengths and weakness, need of a market
place, positions of competitors )
Competing positions - ANSWERS1) Cost - elimination of all waste ( companies produce standardized
products, stabilizing production process, tightening productivity standards, investing automating)
-measured by reduction potential, direct labor
2) Speed -fast moves, fast adaptations, tight linkages
ex: time-based competition- build to order production and efficient supply chains
ex: Zara( 9 day design to rack)
3) Quality- please the customer
ex: American Customer Satisfaction Index compiled each year (Ritz-Carlton Hotel Company is a
Award Winning)
4) Flexibility -Adjust changes in product mix, production volume, or design
Ex: National Bicycle Industrial Company fists bikes to exact customer measurements.
20 or 30 different models
Supply Chain Management for
MBAs, 8th Edition
Job Performance - ANSWERSvalue of set of employee behaviors that contribute either positvely or
negatively to a organization goal accomplishment
Operations Management - ANSWERSdesign, operates and improves productive systems - systems for
getting work done
Operations - ANSWERSis often defined as a transformation process
inputs (material, machines , labor, management, )= outputs(goods or service )
The role of operations is to create - ANSWERSvalue
Value Chain - ANSWERSa serious of activities from supplier to customers that add value to product
or service
Competitiveness - ANSWERSThe degree to which a nation can produce goods and services that meet
the test of international markets
Productivity - ANSWERSoutput/input
Productivity - ANSWERSthe ratio of output to input
Productivity is - ANSWERSthe most common measure of competitiveness
Increase in Productivity - ANSWERS1)allow wages to grow without producing
inflation, thus raising the standard of living
2) productivity growth also represents how quickly an economy can expand its capacity to supply
goods and services
,Single -factor productivity - ANSWERScompares output to individual input, such as labor hrs,
investments in equipment, material usage, or square footage
Multifactor productivity - ANSWERSrelates to output to a combination of inputs such as
(labor+capital) or (labor + capital +energy +materials)
Capital can include - ANSWERSfacilities, inventory, land
Total Factor Productivity - ANSWERScompares the total quantity of goods and services produced
with all the inputs used to produce them
Examples of Single- Factor productivity - ANSWERS1)output/ labor
2) output/ materials
3)output/ capital
Examples of Multi factor Productivity - ANSWERS1)output/ labor+ materials+overhead
2) output/labor+energy+capital
Examples of Total Factor Productivity - ANSWERSgoods and services produced
/ all inputs used to produce them
Misleading Patterns of Productivity - ANSWERS1)Companies can be retrenching but still have
productivity increase,
2)productivity assumes that if there is more input there is more output
3) productivity emphasizes output produced not output sold
Strategy - ANSWERSprovides direction for achieving a mission
5 Strategy Steps - ANSWERS1) Defining Primary Task
2) Assessing core competencies
3) Determining order winners and order qualifiers
4) Positioning the firm
, 5) Developing the strategy
Primary Task - ANSWERSwhat the firm is in business doing (goes along with mission statement )
Core Competency - ANSWERSWhat the firm does better than anyone else.
1) Based on experience, knowledge , know-how, core competencies represents sustainable
competitive advantage
Core competencies that do not evolve and are not aligned with customer needs can become -
ANSWERScore rigidities
ex: Dell customers started to want to test computers more and personal after service customer
service
Order qualifiers and order winners - ANSWERS1)what qualifies an item to be considered for
purchase
low prices but not what wowed a customer
2) what wins the order
Positioning - ANSWERShow the firm chooses to compete ( strengths and weakness, need of a market
place, positions of competitors )
Competing positions - ANSWERS1) Cost - elimination of all waste ( companies produce standardized
products, stabilizing production process, tightening productivity standards, investing automating)
-measured by reduction potential, direct labor
2) Speed -fast moves, fast adaptations, tight linkages
ex: time-based competition- build to order production and efficient supply chains
ex: Zara( 9 day design to rack)
3) Quality- please the customer
ex: American Customer Satisfaction Index compiled each year (Ritz-Carlton Hotel Company is a
Award Winning)
4) Flexibility -Adjust changes in product mix, production volume, or design
Ex: National Bicycle Industrial Company fists bikes to exact customer measurements.
20 or 30 different models
