Exam 3: Measuring Performance in Operations

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.

Having a large number of performance measures is much better than having a selected few.

The only important measurement category in business is financial.

Which of the following is true?

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

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?

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

Queue time is a fancy term for service time variance.

The balanced scorecard model uses the same categories as the Baldrige Award.

The triple bottom line TBL or 3BL) refers to the measurement of sustainability in all of the following areas except

A manufacturer of business copier workstations has a 75 percent customer retention rate. Their accounting department estimates the incremental contribution to profit and overhead as 40 percent. Customers purchase the workstations every three years at an average cost of $1,500.00. Determine the average value of a loyal customer.

Dell's ability to provide a wide range of customized computer hardware to accommodate customers' needs best describes

The "value of a loyal customer" links customer satisfaction and loyalty to a firm's profitability measures.

Design flexibility is the ability to respond quickly to changes in the volume and type of demand.

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

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

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

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

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

A family rents videos from a local video store. On average, they spend $80.00 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.