Question 1

_____ have the primary responsibility to design and manage the processes and associated resources that create value for customers.

Accepted Answer

A)  Operations managers 
B)  Testers 
C)  First-line supervisors 
D)  End users 
A)  Operations managers 
B)  Testers 
C)  First-line supervisors 
D)  End users

Question 2

Which of the following performance perspectives in the balanced scorecard model includes measures like productivity, flow time, and asset utilization?

Accepted Answer

A)  Financial perspective 
B)  Customer perspective 
C)  Innovation and learning perspective 
D)  Internal perspective 
A)  Financial perspective 
B)  Customer perspective 
C)  Innovation and learning perspective 
D)  Internal perspective

Question 3

Which of the following is NOT a financial performance measure at an organizational level?

Accepted Answer

A)  Labor and material costs 
B)  Revenue and profit 
C)  Return on assets 
D)  Earnings per share 
A)  Labor and material costs 
B)  Revenue and profit 
C)  Return on assets 
D)  Earnings per share

Question 4

Explain the difference between design flexibility and volume flexibility.

Accepted Answer

Design flexibility is the ability to dev

Question 5

A manufacturer of paint has two factories located in France and Spain and due to economic conditions must close one of them. The factory productivity data is as follows:
 $$\begin{array} { | l | c | c | } 
\hline & \text { Gallons of Paint } & \text { Resource Cost } \
\hline \text { Factory (France) } & \text { Produced (in 1,000s) } & \text { per Gallon } \
\hline \text { Factory (Spain) } & 4,600 & \$ 4.25 \
\hline
\end{array}$$

Accepted Answer

France: Productivity = 0.235 g

Question 6

_____ is the ability to provide goods and services to customers with minimum waste and maximum utilization of resources.

Accepted Answer

A)  Operational efficiency 
B)  Volume flexibility 
C)  Reliability 
D)  Sustainability 
A)  Operational efficiency 
B)  Volume flexibility 
C)  Reliability 
D)  Sustainability

Question 7

Good customer satisfaction measurement systems are designed to provide information about a customer's future buying behavior.

Accepted Answer

A) True 
 B)False

Question 8

A coffee shop's average transaction price is $3, the contribution margin is 60 percent, a typical customer makes a purchase once a week or 52 weeks per year, and the management estimates the value of a loyal customer over the buying life cycle as $520. What is the customer defection rate?

Accepted Answer

Value of a loyal customer = Revenue per

Question 9

Briefly discuss the four performance perspectives of the Balanced Scorecard Model.

Accepted Answer

The four p

Question 10

The balanced scorecard is designed to be linked to an organization's strategy.

Accepted Answer

A) True 
 B)False

Question 11

As output decreases for a constant level of input, productivity also decreases.

Accepted Answer

A) True 
 B)False

Question 12

Assurance is the willingness to help customers and provide prompt recovery to service upsets.

Accepted Answer

A) True 
 B)False

Question 13

Service-quality measures are based primarily on human perceptions of service collected from customer surveys, focus groups, and interviews.

Accepted Answer

A) True 
 B)False

Question 14

Describe the five key dimensions of assessing service quality.

Accepted Answer

Research has shown that customers use fi

Question 15

A family rents videos from a local video store. On an average, they spend $80 a month. The store's contribution margin is 45 percent and the average customer defection is 40 percent. Determine the value of a loyal customer.

Accepted Answer

A)  Less than or equal to $500 
B)  More than $500 and less than or equal to $1,000 
C)  More than $1,000 and less than or equal to $1,500 
D)  More than $1,500 and less than or equal to $2,000 
A)  Less than or equal to $500 
B)  More than $500 and less than or equal to $1,000 
C)  More than $1,000 and less than or equal to $1,500 
D)  More than $1,500 and less than or equal to $2,000

Question 16

Identify a true statement about models of organizational performance.

Accepted Answer

A)  The theory of the balanced scorecard states that leadership drives the system that creates business results. 
B)  The Service-Profit Chain model focuses on learning, internal business, customers, and financial performance. 
C)  The five performance perspectives of the balanced scorecard model are cost, time, quality, flexibility, and innovation. 
D)  The Service-Profit Chain model is based on a set of cause-and-effect linkages between internal and external performance. 
A)  The theory of the balanced scorecard states that leadership drives the system that creates business results. 
B)  The Service-Profit Chain model focuses on learning, internal business, customers, and financial performance. 
C)  The five performance perspectives of the balanced scorecard model are cost, time, quality, flexibility, and innovation. 
D)  The Service-Profit Chain model is based on a set of cause-and-effect linkages between internal and external performance.

Question 17

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

Accepted Answer

A) True 
 B)False

Question 18

Explain the concepts underlying the Service-Profit Chain model.

Accepted Answer

The model is based on a set of cause-and

Question 19

Which of the following performance perspectives in the balanced scorecard model measures the ultimate value that a business provides to its shareholders?

Accepted Answer

A)  Financial perspective 
B)  Internal perspective 
C)  Learning perspective 
D)  External perspective 
A)  Financial perspective 
B)  Internal perspective 
C)  Learning perspective 
D)  External perspective

Question 20

In the value chain model, efficiency, cost, and cycle time are related to _____.

Accepted Answer

A)  management processes 
B)  inputs 
C)  value-creation processes 
D)  outputs and outcomes 
A)  management processes 
B)  inputs 
C)  value-creation processes 
D)  outputs and outcomes

Exam 3: Measuring Performance in Operations

_____ have the primary responsibility to design and manage the processes and associated resources that create value for customers.

Which of the following performance perspectives in the balanced scorecard model includes measures like productivity, flow time, and asset utilization?

Which of the following is NOT a financial performance measure at an organizational level?

Explain the difference between design flexibility and volume flexibility.

A manufacturer of paint has two factories located in France and Spain and due to economic conditions must close one of them. The factory productivity data is as follows: Gallons of Paint Resource Cost Factory (France) Produced (in 1,000s) per Gallon Factory (Spain) 4,600 \ 4.25

_____ is the ability to provide goods and services to customers with minimum waste and maximum utilization of resources.

Good customer satisfaction measurement systems are designed to provide information about a customer's future buying behavior.

A coffee shop's average transaction price is $3, the contribution margin is 60 percent, a typical customer makes a purchase once a week or 52 weeks per year, and the management estimates the value of a loyal customer over the buying life cycle as $520. What is the customer defection rate?

Briefly discuss the four performance perspectives of the Balanced Scorecard Model.

The balanced scorecard is designed to be linked to an organization's strategy.

As output decreases for a constant level of input, productivity also decreases.

Assurance is the willingness to help customers and provide prompt recovery to service upsets.

Service-quality measures are based primarily on human perceptions of service collected from customer surveys, focus groups, and interviews.

Describe the five key dimensions of assessing service quality.

A family rents videos from a local video store. On an average, they spend $80 a month. The store's contribution margin is 45 percent and the average customer defection is 40 percent. Determine the value of a loyal customer.

Identify a true statement about models of organizational performance.

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

Explain the concepts underlying the Service-Profit Chain model.

Which of the following performance perspectives in the balanced scorecard model measures the ultimate value that a business provides to its shareholders?

In the value chain model, efficiency, cost, and cycle time are related to _____.

Goods, Services, and Operations Management

Value Chains

Operations Strategy

Technology and Operations Management

Goods and Service Design

Process Selection, Design, and Analysis

Facility and Work Designs

Supply Chain Design

Capacity Management

Forecasting and Demand Planning

Managing Inventories

Resource Management

Operations Scheduling and Sequencing

Quality Management

Appendix: Quality Management

Quality Control and Spc

Appendix: Queuing Analysis

Appendix: Modeling Using Linear Programming

Lean Operating Systems

Appendix: Simulation

Project Management

Appendix: Decision Analysis

Filters