Operation Management - Chapter 5 & 6

Characteristics of companies who has competitive advantage are ...

• Is driven by customer wants and needs

• Matches organization’s unique resources with opportunities

• Is durable and lasting

• Unable to have direction and goals

Which of the factors below can be described as a competitive advantage of a product?

• Lower quality

• Has less feature

• Differentiation

• Has similar feature

Answer explanation

The three sources of competitive advantage are :

1. Cost Leadership
2. Differentiation
3. People

"Capacity for flexibility and rapid change" can be described as ...

"The time it takes to accomplish one cycle of a process" can be described as ...

Which of theses aspect(s) are measured on Balance Scorecard?

• Financial Perspective

• Innovation and Learning Perspective

• Family Perspective

• Relationship Perspective

Answer explanation

The aspects of a business Balance Scorecard are :

1. Financial perspective

1. 2. Internal perspective

2. 3. Customer perspective

3. 4. Innovation and learning perspective

TRUE or FALSE

"Vision" is described as where the organization is headed and what it intends to be

• TRUE

• FALSE

TRUE or FALSE

Action plans are broad statements that set the direction for the organization to take in realizing its mission and vision.

• TRUE

• FALSE

Answer explanation

Action plans are things that an organization must do to achieve its strategic objectives.

Strategies are broad statements that set the direction for the organization to take in realizing its mission and vision.

Which of this tools can be used to compete on superior product design?

• Focus Group Discussion

• Concurrent Engineering

• Diagram Analysis

• Detailed Planning

Answer explanation

Below are the tools that can be used to compete on superior product design :

1. Concurrent engineering

2. Value analysis

3. Design reviews

4. Experimental design

TRUE or FALSE

Loyal customers spend more, are willing to pay higher prices, refer new clients, and are less costly to do business with.

• TRUE

• FALSE

A metric that can be used to measure “ What is the likelihood that you would recommend us?” is called ...