1. Identify how changes in the external environment may affect the Operations Management (OM) strategy for a company. For example, what impact are the following factors likely to have on OM strategy?

a.        The occurrence of a major storm or hurricane.

b.        Terrorist attacks of 9/11/01.

c.        The change of government in the US

d.        Trade Legislation such as WTO and NAFTA and changes in tariffs and quotas.

e.        The rapid rate at which the cost of health insurance is increasing.

f.        The Internet.

g.        The corona virus pandemic

2. Operations managers are called upon to support the organization’s strategy. OM does this with some combination of one of three strategies. What are these three strategies and how does it help organizations achieve a competitive advantage?

3. How do services differ from goods? Identify five ways.

4. Identify the three productivity variables used in the book.

5. Frank has a part-time “cottage industry” producing seasonal plywood yard ornaments for resale at local craft fairs and bazaars. He currently works 4 hours per day to produce 8 ornaments.

a. What is his productivity?

b. He thinks that by redesigning the ornaments and switching from use of a wood glue to a hot-glue gun he can increase his total production to 25 ornaments per day. What is his new productivity?

c. What is his percentage increase in productivity?