Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Employee satisfaction might be considered as a lagging indicator of employee turnover.

Accepted Answer

A) True 
 B)False

Question 3

Regarding the service-profit chain model, which of the following is not viewed as internal performance?

Accepted Answer

A) customer satisfaction 
B) employee satisfaction 
C) employee retention 
D) employee productivity 
A) customer satisfaction 
B) employee satisfaction 
C) employee retention 
D) employee productivity

Question 4

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

Accepted Answer

VLC = (P)(RF)(CM)(BLC)
520 = (

Question 5

Which of the following is true?

Accepted Answer

A) The theory of the Balanced Scorecard model of performance is leadership drives the operating system that creates business results. 
B) The Service-Profit Chain focuses on learning, internal business, customers, and financial performance. 
C) Volume flexibility allows the firm to change their learning behavior of employees as conditions change. 
D) In the BankUSA: Credit Card Division case study internal and external performance was negatively correlated. 
A) The theory of the Balanced Scorecard model of performance is leadership drives the operating system that creates business results. 
B) The Service-Profit Chain focuses on learning, internal business, customers, and financial performance. 
C) Volume flexibility allows the firm to change their learning behavior of employees as conditions change. 
D) In the BankUSA: Credit Card Division case study internal and external performance was negatively correlated.

Question 6

Measures and indicators of product and service performance that have a strong correlation with customer satisfaction are appropriate to monitor.

Accepted Answer

A) True 
 B)False

Question 7

The service-profit chain model is based on understanding cause-and-effect linkages among performance measures.

Accepted Answer

A) True 
 B)False

Question 8

Using the information provided in the table below, determine the percentage change in productivity from 2009 to 2010.

Accepted Answer

Total inputs for 2009 = $296,000; total

Question 9

Of the seven categories of the Malcolm Baldrige National Quality Award criteria, which is least relevant to an operations manager?

Accepted Answer

A) Leadership 
B) Workforce Focus 
C) Customer Focus 
D) Measurement, Analysis and Knowledge Management 
A) Leadership 
B) Workforce Focus 
C) Customer Focus 
D) Measurement, Analysis and Knowledge Management

Question 10

In choosing performance measures, an organization might consider all of the following criteria except

Accepted Answer

A) Is the measure actionable? 
B) Is the measure based on behavioral performance? 
C) Is the measure important to customers? 
D) Does the measurement support the firm's mission? 
A) Is the measure actionable? 
B) Is the measure based on behavioral performance? 
C) Is the measure important to customers? 
D) Does the measurement support the firm's mission?

Question 11

Which of the following would not be a typical organizational-level financial performance measure?

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 12

Which category of the Malcolm Baldrige National Quality Award examines how the organization fulfills its ethical, legal, and societal responsibilities, and supports its key communities?

Accepted Answer

A) Leadership 
B) Strategic Planning 
C) Customer Focus 
D) Results 
A) Leadership 
B) Strategic Planning 
C) Customer Focus 
D) Results

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

Goods quality relates to the physical pe

Question 15

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 correlation between customer satisfaction and operating costs was 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 correlation between customer satisfaction and operating costs was negatively correlated. 
D) The ultimate (real) service level for this organization is internal performance metrics.

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

A retail store sells a popular cosmetic called Devine and the store manager was 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
a.What is the value of a loyal customer (VLC) for improvement option (a)?
b.What is the best way to use the $300,000 in improvement funds?

Accepted Answer

@#IMG-DLM&a.$270 (as seen in the table a

Question 18

Queue time is a fancy term for service time variance.

Accepted Answer

A) True 
 B)False

Question 19

Briefly discuss the seven categories of the Malcolm Baldrige National Quality Award.

Accepted Answer

1.Leadership - This category examines ho

Question 20

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

Accepted Answer

A) Malcolm Baldrige National Quality Award Framework and the Value Chain model 
B) Balanced Scorecard and the Service-Profit Chain 
C) Malcolm Baldrige National Quality Award Framework and the Balanced Scorecard 
D) Value Chain model and Service-Profit Chain 
A) Malcolm Baldrige National Quality Award Framework and the Value Chain model 
B) Balanced Scorecard and the Service-Profit Chain 
C) Malcolm Baldrige National Quality Award Framework and the Balanced Scorecard 
D) Value Chain model and Service-Profit Chain

Exam 3: Measuring Performance in Operations

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

Employee satisfaction might be considered as a lagging indicator of employee turnover.

Regarding the service-profit chain model, which of the following is not viewed as internal performance?

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

Which of the following is true?

Measures and indicators of product and service performance that have a strong correlation with customer satisfaction are appropriate to monitor.

The service-profit chain model is based on understanding cause-and-effect linkages among performance measures.

Using the information provided in the table below, determine the percentage change in productivity from 2009 to 2010.

Of the seven categories of the Malcolm Baldrige National Quality Award criteria, which is least relevant to an operations manager?

In choosing performance measures, an organization might consider all of the following criteria except

Which of the following would not be a typical organizational-level financial performance measure?

Which category of the Malcolm Baldrige National Quality Award examines how the organization fulfills its ethical, legal, and societal responsibilities, and supports its key communities?

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

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

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

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

Queue time is a fancy term for service time variance.

Briefly discuss the seven categories of the Malcolm Baldrige National Quality Award.

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

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 Design

Supply Chain Design

Capacity Management

Forecasting and Demand Planning

Managing Inventories

Resource Management

Operations Scheduling and Sequencing

Quality Management

Quality Control and Spc

Lean Operating Systems

Project Management

Work Measurement, Learning Curves, and Standards

Queuing Analysis

Modeling Using Linear Programming

Simulation

Decision Analysis

Filters