12 Questions
What is the main purpose of measuring a company's Net Promoter Score (NPS)?
To assess customer satisfaction and the likelihood of customer referrals
How does efficient operations management impact a company's level of investment?
It decreases the required level of investment by reducing the need for capital employed
Which of the following is NOT one of the five operations 'performance objectives' used to judge operations performance at an operational level?
Sustainability
Which of the following is an example of how quality is important in operations management?
Quality reduces costs by reducing errors and time needed to correct them
How can operations managers gain valuable experience to enable future innovation?
By learning from their processes and building skills, knowledge, and experience
What is the impact of a 5% increase in revenue and a 5% reduction in costs for a business with $1,000,000 in annual revenue and $900,000 in annual costs?
The profitability of the business would increase by 95%
What aspect of operations performance contributes to the 'economic' aspect of the triple bottom line?
Quality, speed, dependability, and flexibility
Which factor determines the cost of products and services in operations management?
Efficiency of purchasing and converting transformed resources
What can significantly impact an organization's strategic 'economic' position according to the text?
Decisions and activities carried out by operations managers
Which factor directly influences revenue in operations management?
Quality, speed of delivery, dependability, and flexibility
Why is efficiency a crucial aspect of performance judgment for many operations managers?
It determines the cost of products and services
What are some benefits of even small improvements in cost and revenue in operations management?
Proportionally greater effect on profitability
Test your knowledge on how operations impact the financial performance through various factors. Explore the role of operations managers in dealing with immediate issues and making strategic decisions.
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