Question 1

As time-on-hold waiting decreases, customer satisfaction rating increases. This is an example of _____.

Accepted Answer

A)  productivity index 
B)  interlinking 
C)  value of a loyal customer 
D)  flexibility 
A)  productivity index 
B)  interlinking 
C)  value of a loyal customer 
D)  flexibility

Question 2

What are the major categories of organizational performance measures? Provide two example measures for each category at an organizational level.

Accepted Answer

Organizational performance measures can

Question 3

The ability to respond quickly to changes in the volume and type of demand is called _____.

Accepted Answer

A)  learning 
B)  service quality 
C)  demand variability 
D)  volume flexibility 
A)  learning 
B)  service quality 
C)  demand variability 
D)  volume flexibility

Question 4

Consider the following information. $\begin{array}{|l|c|c|}
\hline & \text { First Quarter } & \text { Second Quarter } \
\hline \text { Unit Selling Price } & \$ 15.00 & \$ 17.00 \
\hline \text { Total Units Sold } & 12,000 & 11,500 \\hline\\hline \text { Labor Hours } & 10,000 & 9,500 \
\hline \text { Labor Cost/Hour } & \$ 9.00 & \$ 10.00 \
\hline\\hline \text { Material Usage (Ibs.) } & 5,000 & 7,500 \
\hline \text { Material Cost/lb. } & \$ 12.00 & \$ 10.50 \
\hline\\hline \text { Other Costs } & & \$ 25,000 \
\hline
\end{array}$

a.Which quarter, first or second, had the higher labor productivity (output quantity per labor dollar input)?
b.Which quarter, first or second, had the higher material productivity (output quantity per material dollar input)?
c.Which quarter, first or second, had the higher total productivity (dollar output per total dollar input)?

Accepted Answer

a.Labor productivity, First Quarter: 12,

Question 5

Jeff Camm, the president of Biometrics, Inc. has received the following data from his accountant:
 $\begin{array}{|l|c|c|c|c|}
\hline & \text { Year 1 } & \text { Year 2 } & \underline{\text { Year 3 }} & \text { Year 4 } \
\hline \text { Sales } & \$ 26,000 & \$ 15,000 & \$ 17,000 & \$ 20,000 \
\hline \text { Material } & \$ 8,000 & \$ 5,000 & \$ 6,000 & \$ 6,000 \
\hline \text { Labor } & \$ 10,000 & \$ 7,500 & \$ 8,000 & \$ 8,000 \
\hline \text { Overhead } & \$ 4,000 & \$ 2,000 & \$ 2,500 & \$ 4,000 \
\hline
\end{array}$ How is the productivity changing in Jeff's firm?

Accepted Answer

Productivity measures for each year are

Question 6

Explain the difference between goods and service quality, and how they are measured.

Accepted Answer

Goods quality relates to the physical pe

Question 7

Explain the concept of interlinking and its significance.

Accepted Answer

The quantitative modeling of cause-and-e

Question 8

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

Accepted Answer

A)  Baldrige Performance Excellence framework and the value chain model 
B)  Balanced scorecard and the Service-Profit Chain 
C)  Baldrige Performance Excellence framework and the balanced scorecard 
D)  The value chain model and the Service-Profit Chain 
A)  Baldrige Performance Excellence framework and the value chain model 
B)  Balanced scorecard and the Service-Profit Chain 
C)  Baldrige Performance Excellence framework and the balanced scorecard 
D)  The value chain model and the Service-Profit Chain

Question 9

Identify the performance perspective in the balanced scorecard model that includes measures like intellectual and research assets, employee satisfaction, and skills development.

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 10

The Service-Profit Chain model focuses on _____.

Accepted Answer

A)  employees 
B)  costs 
C)  volume flexibility 
D)  equipment utilization 
A)  employees 
B)  costs 
C)  volume flexibility 
D)  equipment utilization

Question 11

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

Accepted Answer

A)  Service upsets represented 17 percent of total transactions. 
B)  Current performance reports indicate that the credit card division is meeting 99.2 percent of its service requirements. 
C)  The relationship between customer satisfaction and operating costs is negatively correlated. 
D)  The ultimate (real) service level for this organization is internal performance metrics. 
A)  Service upsets represented 17 percent of total transactions. 
B)  Current performance reports indicate that the credit card division is meeting 99.2 percent of its service requirements. 
C)  The relationship between customer satisfaction and operating costs is negatively correlated. 
D)  The ultimate (real) service level for this organization is internal performance metrics.

Question 12

When Bill Gates stated that "Microsoft is always two years away from failure," he was emphasizing the importance of _____.

Accepted Answer

A)  innovation and learning 
B)  productivity 
C)  design flexibility 
D)  speed 
A)  innovation and learning 
B)  productivity 
C)  design flexibility 
D)  speed

Question 13

_____ is the quantitative modeling of cause-and-effect relationships between internal and external performance criteria.

Accepted Answer

A)  Learning 
B)  Strategic planning 
C)  Interlinking 
D)  Forecasting 
A)  Learning 
B)  Strategic planning 
C)  Interlinking 
D)  Forecasting

Question 14

A retail store sells a popular cosmetic called Devine and the store manager is given $300,000 by the corporate office to improve store performance any way she thinks best. The "base case" information is a price of $30 per bottle, a contribution margin of 0.50, a customer defection rate of 20%, and a repurchase frequency of 3 times a year. If these improvement funds could be used to either (a) increase the contribution margin to 0.60 or (b) reduce the customer defection rate to 12% or (c) increase the repurchase frequency to 4 times per year, what is the best way to spend these improvement funds? (Assume all other variables remain at the base case level for each of the three improvement options.) VLC = P*CM*RF*BLC
You may want to use the worksheet below to help organize your computations and answer of the question(s).
 $\begin{array}{|c|c|c|c|c|c|}\hline \begin{array}{c}
\text { Improvement } \
\text { Option }
\end{array} & \text { Price } & \begin{array}{c}
\text { Contribution } \
\text { Margin }
\end{array} & \begin{array}{l}
\text { Repurchase } \
\text { Frequency }
\end{array} & \begin{array}{l}
\text { Defection } \
\text { Rate }
\end{array} &\text { VLC in } \$\
\hline \text { Base case } & \$ 30 & 0.50 & 3 & 20 \%& \
\hline(\mathrm{a}) & \$ 30 & & & \
\hline \text { (b) } & \$ 30 & & & \
\hline \text { (c) } & \$ 30 & & & \
\hline
\end{array}$
-The value of a loyal customer (VLC) for improvement option (a) is _____.

Accepted Answer

A)  more than $100 and less than or equal to $150 
B)  more than $150 and less than or equal to $200 
C)  more than $200 and less than or equal to $250 
D)  more than $250 
A)  more than $100 and less than or equal to $150 
B)  more than $150 and less than or equal to $200 
C)  more than $200 and less than or equal to $250 
D)  more than $250

Question 15

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

Accepted Answer

Many organizations define specific crite

Question 16

The theory of Baldrige Award states that leadership drives the system that creates results.

Accepted Answer

A) True 
 B)False

Question 17

A manufacturer of gear hobbers has a 30 percent customer retention rate. Their accounting department estimates the incremental contribution to profit and overhead as 20 percent. Customers purchase the workstations every two years at an average cost of $3,500. Determine the average value of a loyal customer.

Accepted Answer

VLC = P × CM × RF ×

Question 18

The value chain model of organizational performance is based on a set of cause-and-effect linkages among performance measures.

Accepted Answer

A) True 
 B)False

As time-on-hold waiting decreases, customer satisfaction rating increases. This is an example of _____.

What are the major categories of organizational performance measures? Provide two example measures for each category at an organizational level.

The ability to respond quickly to changes in the volume and type of demand is called _____.

Explain the difference between goods and service quality, and how they are measured.

Explain the concept of interlinking and its significance.

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

Identify the performance perspective in the balanced scorecard model that includes measures like intellectual and research assets, employee satisfaction, and skills development.

The Service-Profit Chain model focuses on _____.

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

When Bill Gates stated that "Microsoft is always two years away from failure," he was emphasizing the importance of _____.

_____ is the quantitative modeling of cause-and-effect relationships between internal and external performance criteria.

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

The theory of Baldrige Award states that leadership drives the system that creates results.

The value chain model of organizational performance is based on a set of cause-and-effect linkages among performance measures.

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

Exam 3: Measuring Performance in Operations

As time-on-hold waiting decreases, customer satisfaction rating increases. This is an example of _____.

What are the major categories of organizational performance measures? Provide two example measures for each category at an organizational level.

The ability to respond quickly to changes in the volume and type of demand is called _____.

Explain the difference between goods and service quality, and how they are measured.

Explain the concept of interlinking and its significance.

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

Identify the performance perspective in the balanced scorecard model that includes measures like intellectual and research assets, employee satisfaction, and skills development.

The Service-Profit Chain model focuses on _____.

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

When Bill Gates stated that "Microsoft is always two years away from failure," he was emphasizing the importance of _____.

_____ is the quantitative modeling of cause-and-effect relationships between internal and external performance criteria.

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

The theory of Baldrige Award states that leadership drives the system that creates results.

The value chain model of organizational performance is based on a set of cause-and-effect linkages among performance measures.

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