MGO 302 Lecture Notes - Lecture 1: Alarm Clock, Operations Management
EQS Module 1
Question 1
1.
Which of the following statements is (are) true?
I. Measurement of productivity in a service system is more straightforward than in
manufacturing due to the high degree of uniformity of inputs.
II. Services usually involve a much higher degree of customer contact than goods
manufacturing.
III. Methods and actions that pursue strategic goals are often referred to as 'tactics.'
I and II
I only
III only
II only
II and III
1 points
Question 2
1.
Which of the following statements is (are) true?
I. Gasoline is a good example of a standardized product.
II. A common term used to describe high-volume, highly standardized production is
“Make-to-Stock”.
III. Service systems tend to produce tangible outputs.
II only
III only
II and III are true
I and II are true
I only
Notes: Production of goods results in a
tangible output
, such as an automobile, a clock radio, a
golf ball, a refrigerator—anything that we can see or touch. It may take place in a factory,
but can occur elsewhere. Service, on the other hand, generally implies an
act
. A physi-
cian’s examination, TV and auto repair, lawn care, and projecting a film in a theatre are
examples of services. The majority of service jobs fall into these categories:
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1 points
Question 3
1.
Suppose you are studying a trucking company. Which of the following is not an input of
the trucking company's operation?
skilled drivers
pollution
fuel
trucks
government permits
1 points
Question 4
1.
Link’s Lumber creates pressure treated wooden poles from logs bought from several
surrounding tree plantations. At the Link’s Lumber operation, a batch of 100 logs will
yield 85 wooden poles with 5 labor hours required to process the entire batch. Link’s
Lumber is owned by Artemis Link, whose brother Devious Link is planning to marry
Betty Davis, owner of Northlands Pine Plantation. Artemis expects that his future sister-
in-law will sell him logs for the same price he is paying to purchase them from other tree
growers right now. The difference in Northlands Pine Plantation logs, however, is that
they are considerably higher quality wood then the logs he purchases from his current
suppliers. If Betty agrees to sell him Northlands Pine Plantation pine logs, each batch of
100 logs can be expected to yield 100 wooden poles, although it will take an additional 4
labor hours per batch to process the higher quality wood. What would be the labor
productivity at Link’s Lumber, if logs are indeed purchased from Northlands Pine
Plantation?
20 wooden poles per labor hour
11.11 wooden poles per labor hour
0.85 wooden poles per labor hour
17 wooden poles per labor hour
0.17 wooden poles per labor hour
1 points
Question 5
1.
Archer Contracting repaved 35 miles of four-lane interstate roadway working 10 days
with a crew of five employees using $7890 of paving material. Nearby, Bronson
Contracting repaved 50 miles of two-lane county roadway with a crew of six
employees. Bronson's crew worked 8 days and used $7000 worth of paving material.
Both Archer Contracting and Bronson Contracting rented the same paving equipment to
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complete their respective assignments, costing each $1500 a day, and labor cost per
employee is $160 a day for both companies. Which company is more productive and by
how much?
Bronson Contracting is more productive by about 20.9%
Archer Contracting is more productive by about 16.7%
Bronson Contracting is more productive by about 16.7%
Archer Contracting is more productive by about 20.9%
Archer Contracting is more productive by about 71.3%
1 points
Question 6
1.
Link’s Lumber creates pressure treated wooden poles from logs bought from several
surrounding tree plantations. At the Link’s Lumber operation, a batch of 100 logs will
yield 85 wooden poles with 5 labor hours required to process the entire batch. Link’s
Lumber is owned by Artemis Link, whose brother Devious Link is planning to marry
Betty Davis, owner of Northlands Pine Plantation. Artemis expects that his future sister-
in-law will sell him logs for the same price he is paying to purchase them from other tree
growers right now. The difference in Northlands Pine Plantation logs, however, is that
they are considerably higher quality wood then the logs he purchases from his current
suppliers. If Betty agrees to sell him Northlands Pine Plantation pine logs, each batch of
100 logs can be expected to yield 100 wooden poles, although it will take an additional 4
labor hours per batch to process the higher quality wood. What is the labor productivity
of Link’s Lumber current operation, without the benefit of this potential arrangement
with Northlands?
20 wooden poles per labor hour
0.85 wooden poles per labor hour
17 wooden poles per labor hour
11.11 wooden poles per labor hour
0.17 wooden poles per labor hour
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Document Summary
Which of the following statements is (are) true: gasoline is a good example of a standardized product. A common term used to describe high-volume, highly standardized production is. Notes: production of goods results in a tangible output. , such as an automobile, a clock radio, a golf ball, a refrigerator anything that we can see or touch. It may take place in a factory, but can occur elsewhere. Service, on the other hand, generally implies an act. A physi- cian"s examination, tv and auto repair, lawn care, and projecting a film in a theatre are examples of services. The majority of service jobs fall into these categories: Which of the following is not an input of the trucking company"s operation? skilled drivers pollution fuel trucks government permits. Archer contracting repaved 35 miles of four-lane interstate roadway working 10 days with a crew of five employees using of paving material.