Three Months Ago, the New Operations Manager at Acme Fastener

question 14

Multiple Choice

Three months ago, the new operations manager at Acme Fastener and Tool's manufacturing plant decided to increase the plant's production volume so that machines were operating at a higher capacity, even though the previous levels were sufficient to meet all of the company's orders. How would you characterize this manager's mistake?

• A) Focusing on a discrete event instead of taking a broader view
• B) Focusing on an issue that is not a key priority aligned with organizational goals
• C) Using a KPI that is too narrow
• D) Encouraging an incorrect outcome

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Definitions:

Nuts

Typically refers to a hard-shelled fruit of some plants that have an indehiscent seed, or in a broader sense, a significant source of nutrition and energy in the human diet.

Berries

Tiny, succulent fruits that are usually eatable, often having a juicy texture, spherical shape, vivid colors, and a flavor that ranges from sweet to sour.

Perfect Substitute

Goods that can be used in place of one another with no loss of utility to the consumer.

Utility Function

A mathematical representation of how consumers rank different bundles of goods based on the level of satisfaction or utility those goods provide.