Q1. Difference between goods and services?

Q2. Limitation of model?

Q3. Why organization fall?

Q4. What factors are affecting productivity?

Q5. How to improve productivity?

Q6. The Triple Bottom Line? 100%

Q7. Time series forecast? 70%

Q8. Naïve forecast?

Q9. Steps of capacity planning? 100%

Q10. What is the importance of capacity?

Q1. Ans: Goods vs Service: Key Differences

Characteristic Goods Service

Customer contact Low High
Uniformity of input High Low
Labor content Low High
Uniformity of output High Low
Output Tangible Intangible
Measurement of productivity Easy Difficult
Opportunity to correct problems High Low
Inventory Much Little
Evaluation Easier Difficult
Patentable Usually Not usual
Q2. Ans: Limitations of Models

• Quantitative information may be emphasized over qualitative

• Models may be incorrectly applied and results misinterpreted

• Nonqualified users may not comprehend the rules on how to use the model

• Use of models does not guarantee good decisions

Q3. Ans: Why Some Organizations Fail

 Too much emphasis on short-term financial performance
 Failing to take advantage of strengths and opportunities
 Neglecting operations strategy
 Failing to recognize competitive threats
 Too much emphasis in product and service design and not enough on improvement
 Neglecting investments in capital and human resources
 Failing to establish good internal communications
 Failing to consider customer wants and needs

Q4. Factors Affecting Productivity

There are four factor that affecting productivity most.

1. Capital
2. Quality
3. Technology
4. Management

Other Factors Affecting Productivity:

 Standardization
 Quality
 Use of Internet
 Computer viruses
 Searching for lost or misplaced items
 Scrap rates
 New workers
Q5. Ans: Improving Productivity
 Develop productivity measures
 Determine critical (bottleneck) operations
 Develop methods for productivity improvements
 Establish reasonable goals
 Get management support
 Measure and publicize improvements
 Don’t confuse productivity with efficiency

Q6. The triple bottom lines

Q7. Time series forecast 70%

A time series is a time-ordered sequence of observations taken at regular intervals

Analysis of time-series data requires the analyst to identify the underlying behavior of the series.
 Trend - long-term movement in data
 Seasonality - short-term regular variations in data
 Cycle – wavelike variations of more than one year’s duration
 Irregular variations - caused by unusual circumstances
 Random variations - caused by chance

Q8. Naïve forecast

 Simple to use
 Virtually no cost
 Quick and easy to prepare
 Data analysis is nonexistent
 Easily understandable
 Cannot provide high accuracy
 Can be a standard for accuracy

Q9. Ans: Steps for Capacity Planning important 100%

1. Estimate future capacity requirements
2. Evaluate existing capacity
3. Identify alternatives
4. Conduct financial analysis
5. Assess key qualitative issues
6. Select one alternative
7. Implement alternative chosen
8. Monitor results
Q10. Importance of capacity planning
I. Impacts ability to meet future demands
II. Affects operating costs
III. Major determinant of initial costs
IV. Involves long-term commitment
V. Affects competitiveness (can be a barrier to deter potential new entry)
VI. Globalization adds complexity
VII. Impacts long range planning