The question asked in this Post's title may not, after first reading it, make much sense. Don't worry, things will clear up.
For openers, it's an important question because its answer (if we can figure what it's asking) can make a big difference. It's the same sort of question as, "Can a firm's capital structure make a difference?" As we learned looking at Southwest Airlines, the answer is, "You bet!"
Before figuring out the question, and then what to do with the answers, here are my lecture notes and PowerPoint slides for the Production and Operations Management "story":
Before getting to the main event, here are some things to look for in Chapter 9 of your textbook (Chapter 10 gets discussed separately in the Human Resources materials).