MGSC 395 EVALUATION TEST ANSWERS AND
QUESTIONS SET A+
✔✔Developing a corporate strategy - ✔✔the four considerations are- (1) Monitoring and
adjusting to changes in the business environment, (2) Identifying and developing the
firm's core competencies, (3) developing the firm's core processes, and (4) developing
the firm's global strategies
✔✔Productivity = - ✔✔output/input
✔✔Labor productivity = - ✔✔output/input = policies processed/employee hours
(employees x hours)
✔✔Multifactor productivity = - ✔✔value of output/total cost
✔✔Core competencies - ✔✔the unique resources and strengths that an organization's
management considers when formulating strategy
✔✔Developing core competencies include the following - ✔✔(1) workforce, (2) facilities,
(3) market and financial know-how, (4) systems and technology
✔✔Lead time - ✔✔the elapsed time between the receipt of a customer order and filling
it
✔✔Two effective global strategies - ✔✔(1) strategic alliances, (2) locating abroad
✔✔Competitive priorities - ✔✔the critical dimensions that a process or supply chain
must process to satisfy its internal or external customers, both now and in the future
✔✔Competitive capabilities - ✔✔the cost, quality, time, and flexibility dimensions that a
process or supply chain actually processes and is able to deliver
✔✔Time-based competition - ✔✔a strategy that focuses on the competitive priorities of
delivery speed and development speed
, ✔✔Order winner - ✔✔a criterion customers use to differentiate the services or products
of one firm from those of another
✔✔Measure for low-cost operations - ✔✔cost per billing statement and weekly postage
✔✔Measure for consistent quality - ✔✔percent errors in bill information and percent
errors in posting payments
✔✔Measure for delivery speed - ✔✔lead time to process merchant payments
✔✔Measure for volume flexibility - ✔✔utilization
✔✔Productivity - ✔✔the value of outputs (services and products) produced divided by
the values of input resources (wages, costs of equipment, and so on)
✔✔Two principles to keep in mind - ✔✔(1) each part of an organization, not just the
operations function, must design and operate processes that are part of a supply chain
and deal with quality, technology, and staffing issues. (2) each function of an
organization has its own identity and yet is connected with operations through shared
processes
✔✔Break even analysis - ✔✔helps the manager identify how much change in volume or
demand is necessary before a second alternative becomes better than the first
alternative
✔✔The preference matrix - ✔✔helps a manager deal with multiple criteria that cannot
be evaluated with a single measure of merit such as total profit or cost
✔✔Decision theory - ✔✔helps the manager choose the best alternative when outcomes
are uncertain
✔✔Break even quantity - ✔✔the volume at which total revenues equal total costs
✔✔Break even analysis - ✔✔the use of break even quantity; it can be used to compare
processes by finding the volume at which two different processes have equal total costs
✔✔Variable costs (cQ) - ✔✔the portion of the total cost that varies directly with volume
of output
✔✔Fixed cost (F) - ✔✔the portion of the total cost that remains constant regardless of
changes in levels of output
✔✔Total cost = - ✔✔F + cQ
QUESTIONS SET A+
✔✔Developing a corporate strategy - ✔✔the four considerations are- (1) Monitoring and
adjusting to changes in the business environment, (2) Identifying and developing the
firm's core competencies, (3) developing the firm's core processes, and (4) developing
the firm's global strategies
✔✔Productivity = - ✔✔output/input
✔✔Labor productivity = - ✔✔output/input = policies processed/employee hours
(employees x hours)
✔✔Multifactor productivity = - ✔✔value of output/total cost
✔✔Core competencies - ✔✔the unique resources and strengths that an organization's
management considers when formulating strategy
✔✔Developing core competencies include the following - ✔✔(1) workforce, (2) facilities,
(3) market and financial know-how, (4) systems and technology
✔✔Lead time - ✔✔the elapsed time between the receipt of a customer order and filling
it
✔✔Two effective global strategies - ✔✔(1) strategic alliances, (2) locating abroad
✔✔Competitive priorities - ✔✔the critical dimensions that a process or supply chain
must process to satisfy its internal or external customers, both now and in the future
✔✔Competitive capabilities - ✔✔the cost, quality, time, and flexibility dimensions that a
process or supply chain actually processes and is able to deliver
✔✔Time-based competition - ✔✔a strategy that focuses on the competitive priorities of
delivery speed and development speed
, ✔✔Order winner - ✔✔a criterion customers use to differentiate the services or products
of one firm from those of another
✔✔Measure for low-cost operations - ✔✔cost per billing statement and weekly postage
✔✔Measure for consistent quality - ✔✔percent errors in bill information and percent
errors in posting payments
✔✔Measure for delivery speed - ✔✔lead time to process merchant payments
✔✔Measure for volume flexibility - ✔✔utilization
✔✔Productivity - ✔✔the value of outputs (services and products) produced divided by
the values of input resources (wages, costs of equipment, and so on)
✔✔Two principles to keep in mind - ✔✔(1) each part of an organization, not just the
operations function, must design and operate processes that are part of a supply chain
and deal with quality, technology, and staffing issues. (2) each function of an
organization has its own identity and yet is connected with operations through shared
processes
✔✔Break even analysis - ✔✔helps the manager identify how much change in volume or
demand is necessary before a second alternative becomes better than the first
alternative
✔✔The preference matrix - ✔✔helps a manager deal with multiple criteria that cannot
be evaluated with a single measure of merit such as total profit or cost
✔✔Decision theory - ✔✔helps the manager choose the best alternative when outcomes
are uncertain
✔✔Break even quantity - ✔✔the volume at which total revenues equal total costs
✔✔Break even analysis - ✔✔the use of break even quantity; it can be used to compare
processes by finding the volume at which two different processes have equal total costs
✔✔Variable costs (cQ) - ✔✔the portion of the total cost that varies directly with volume
of output
✔✔Fixed cost (F) - ✔✔the portion of the total cost that remains constant regardless of
changes in levels of output
✔✔Total cost = - ✔✔F + cQ
