Exam 3: Measuring Performance in Operations

A computer manufacturer currently has a 15 percent customer defection rate. Their accounting department estimates the incremental contribution to profit and overhead as 30 percent. Customers purchase computers every four years at an average cost of $1,200.00. In an effort to reduce the defection rate, the company is improving both the quality of its computers and its post-sale service. Determine the increase in the average value of a loyal customer if the defection rate drops to 5 percent.

The ability to respond quickly to changes in the amount and type of demand is called

Productivity is more closely related to effectiveness than efficiency.

Provide some examples of criteria that can be used to help select and delete performance measures from an organization's information system.

Measuring and reporting performance results can be a motivator for many workers.

Empathy is the caring attitude and individualized attention provided to customers.

Return on assets would normally be classified as a productivity measure.

Reliability is the ability to perform a service dependably and accurately.

Explain the difference between design flexibility and volume flexibility.

It costs 3 to 5 times more to keep an existing customer than to acquire a new customer.

Service quality measures are generally based on data collected from observing front-line operations.

The quote "Happy employees create happy customers" best characterizes the Service-Profit Chain (SPC) model.

Which one of the following statements is true with regard to the case study BankUSA: Credit Card Division?

In regard to the value chain model, efficiency, cost and cycle time would be most related to

Having intensive care nurses on call in case of a dramatic increase in patient demand is an example of design flexibility.

Of the four models of organizational performance, which two focus on the "big picture" of organizational performance rather than on operational-level framework?

Interlinking is the quantitative modeling of cause-and-effect relationships between

In the Baldrige Award criteria, the Business Results category focuses on how an organization selects, gathers, analyzes, manages, and improves its data, information, and knowledge assets.

Which of the following would be an example of an innovation and learning performance measure?

Speed is usually measured in clock time, whereas reliability of a time-based measure is usually measured in quantifying the variances in average performances or targets.