Deck 10: Managing Customer and Work Flows

Question 1

Process automation can be used to?

A) Increase productivity
B) Increase service capacity
C) Increase both productivity and service capacity
D) Process automation is unrelated to productivity and service capacity

Answer 1

C

Question 2

The matching of service capacity to customer demand to minimize customer waiting is associated with what type of capacity management technique?

A) Employee scheduling
B) Yield/revenue management
C) Capacity sharing
D) Self-service

Answer 2

A

Question 3

Allowing employees to seamlessly move from an idle process to a busy process is associated with what type of capacity management technique?

A) Employee scheduling
B) Yield/revenue management
C) Capacity sharing
D) Employee cross-training

Answer 3

D

Question 4

Which of the following activities would most likely be associated with the "no customer contact" level of a service?

A) Receipt of customer payment at a cash register
B) Employee training
C) Checking a customer's pulse and blood pressure
D) Serving a customer drinks at a bar

Question 5

Which of the following would most likely be an example of a customer contact point?

A) An ATM
B) A grocery store self-checkout kiosk
C) A ticket window at a theatre
D) An online store

Question 6

Which of the following activities would most likely not be associated with the "no customer contact" level of a service?

A) Accounting/bookkeeping
B) Receipt of customer payment at a cash register
C) Employee training
D) Preparation of customer invoices

Question 7

Managers can visualize the flow of customers through a service delivery system with a?

A) Customer process map
B) Customer flow map
C) Customer attention map
D) Customer management map

Question 8

Which of the following activities is most likely beyond the line of visibility?

A) Receipt of customer payment at a cash register
B) Preparation of a customer's invoice
C) Checking a customer's pulse and blood pressure
D) Serving a customer drinks at a bar

Question 9

A self-service checkout stand at a grocery store is an example of?

A) Continuous improvement
B) Service blueprinting
C) Process automation
D) Customer flow mapping

Question 10

Finding alternative uses for underutilized capacity is associated with what type of capacity management technique?

A) Employee scheduling
B) Yield/revenue management
C) Capacity sharing
D) Employee cross-training

Question 11

The separation between processes that the customer contacts and those that the customer does not contact is referred to as the?

A) Veil of vision
B) Service divider
C) Service separator
D) Line of visibility

Question 12

Customers interact with employees at?

A) Customer engagement points
B) Customer contact points
C) Customer reflection points
D) Customer connection points

Question 13

Bottlenecks in waiting lines occur when?

A) Capacity exceeds demand
B) Customers move quickly through the line
C) The waiting line is empty
D) Demand exceeds available capacity

Question 14

Assessing the level of customer contact for service processes is referred to as?

A) Service blueprinting
B) Service planning
C) Service mapping
D) Service evaluation

Question 15

Customers __________.

A) Enjoy waiting
B) Dislike waiting
C) Find value in waiting
D) Gain satisfaction from waiting

Question 16

The use of overbooking, allocating capacity among customer segments, and differential pricing is what type of capacity management technique?

A) Employee scheduling
B) Yield/revenue management
C) Capacity sharing
D) Self-service

Question 17

Managing customer flows effectively can lead to?

A) Enhanced customer satisfaction
B) Enhanced firm competitiveness
C) Both enhanced customer satisfaction and firm competitiveness
D) Neither enhanced customer satisfaction nor firm competitiveness

Question 18

In the context of service blueprinting, a customer's food being prepared in a closed kitchen is occurring beyond the?

A) Line of sight
B) Line of visibility
C) Line of disruption
D) Line of supervision

Question 19

Separating processing requiring customer contact from those not requiring customer contact is often referred to as?

A) Service separation
B) Service blueprinting
C) Service optimization
D) Service division

Question 20

Queuing analysis can likely be used to do all of the following except?

A) Determine customer waiting times
B) Determine the number of customers waiting in queue
C) Identify appropriate suppliers
D) Assist in capacity decisions

Question 21

The primary trade-off in service capacity planning is?

A) Cost of service capacity versus cost of holding inventory
B) Cost of service capacity versus cost of customer waiting
C) Cost of marketing versus cost of customer waiting
D) Cost of loss of goodwill versus cost of customer waiting

Question 22

Selling the same product to different customers for different prices is referred to as?

A) Price discrimination
B) Differential pricing
C) Revenue matching
D) Sales deception

Question 23

The use of too much service capacity can result in?

A) Idle servers
B) High labor costs
C) Idle servers and high labor costs
D) Long customer wait times and lost sales

Question 24

Separating customers in such a way that they are better directed to the appropriate service process is referred to as?

A) Complementary services
B) Reservations
C) Demand sorting
D) Pricing policies/promotions

Question 25

Encouraging customers to use an ATM rather than coming into the bank is what type of capacity management technique?

A) Employee scheduling
B) Yield/revenue management
C) Self-service
D) Employee cross-training

Question 26

Accepting more reservations than can be accommodated is referred to as?

A) Overbooking
B) Capacity underutilization
C) Differential pricing
D) Disruptive pricing

Question 27

The use of too little service capacity can result in?

A) Idle servers
B) Long customer wait times
C) Lost sales
D) Long customer wait times and lost sales

Question 28

Regulating customer arrivals and more evenly spreading out demand can be accomplished by?

A) Complementary services
B) Reservations
C) Demand sorting
D) Pricing policies/promotions

Question 29

Utilizing pricing changes to alter demand is referred to as?

A) Complementary services
B) Reservations
C) Demand sorting
D) Pricing policies/promotions

Question 30

A grocery store that trains its self-stockers to also check out customers at the cash register is using what type of capacity management technique?

A) Employee scheduling
B) Yield/revenue management
C) Self-service
D) Employee cross-training

Question 31

An automated system for cell phone customers to check their current balance and pay their bill is an example of?

A) Cross-training employees
B) Overbooking
C) Self-service
D) Capacity sharing

Question 32

A restaurant using more servers on busy evenings is using what type of capacity management technique?

A) Employee scheduling
B) Yield/revenue management
C) Self-service
D) Employee cross-training

Question 33

A local ski resort leases their facilities for concerts during the summer months. This is an example of?

A) Cross-training employees
B) Overbooking
C) Self-service
D) Capacity sharing

Question 34

Consistent mediocrity is most often associated with which capacity management technique?

A) Cross-training employees
B) Overbooking
C) Self-service
D) Capacity sharing

Question 35

A rental car company allowing customers to claim and pay for a car in advance is an example of?

A) Complementary services
B) Reservations
C) Demand sorting
D) Pricing policies/promotions

Question 36

Offering diversions to occupy customers while they wait is referred to as?

A) Complementary services
B) Reservations
C) Demand sorting
D) Pricing policies/promotions

Question 37

Using customers as servers is associated with what type of capacity management technique?

A) Employee scheduling
B) Yield/revenue management
C) Self-service
D) Employee cross-training

Question 38

An airline that overbooks seats on its aircraft is using what type of capacity management technique?

A) Employee scheduling
B) Yield/revenue management
C) Self-service
D) Employee cross-training

Question 39

A rail company choosing to modify its pricing for tickets as the departure day/time gets closer is utilizing which type of capacity management technique?

A) Overbooking
B) Capacity utilization
C) Differential pricing
D) Discounting

Question 40

An airline selling some seats at lower fares to compete with low-cost carriers is an example of?

A) Yield management
B) Capacity underutilization
C) Monopolistic behavior
D) Capacity matching

Question 41

A local smoothie shop offers discounted drinks in the middle of the afternoon. This is an example of?

A) Complementary services
B) Reservations
C) Demand sorting
D) Pricing policies/promotions

Question 42

A demand source for a large retail store in a large city would likely be considered to be?

A) Finite
B) Infinite
C) Neither finite nor infinite
D) Both finite and infinite

Question 43

Approximately what percentage of customers indicated (via a survey) that they had given up on buying something due to a long queue?

A) 25%
B) 50%
C) 75%
D) 90%

Question 44

A grocery store provides samples of cheeses and crackers while customers wait in line. This is an example of?

A) Complementary services
B) Reservations
C) Demand sorting
D) Pricing policies/promotions

Question 45

Disney World's FASTPASS system is an example of a?

A) VIP program
B) Customer segmentation program
C) Discount/promotion program
D) Virtual queue

Question 46

Using a single queue to feed multiple servers ("a snake line") is an example of?

A) Keeping customers informed
B) Designing a fair waiting system
C) Keeping customers occupied
D) Grouping customers together

Question 47

An airline boarding its passengers by passenger status is an example of?

A) Complementary services
B) Reservations
C) Demand sorting
D) Pricing policies/promotions

Question 48

A worker at a grocery store directing customers to lines based on the amount of groceries they are purchasing is an example of?

A) Complementary services
B) Reservations
C) Demand sorting
D) Pricing policies/promotions

Question 49

Electricity companies may reduce their prices during low demand periods. This is an example of?

A) Complementary services
B) Reservations
C) Demand sorting
D) Pricing policies/promotions

Question 50

The Second Law of Service suggests that?

A) It is easy to play catch-up
B) Satisfaction = perception - expectation
C) Perception = satisfaction - expectation
D) It is difficult to play catch-up

Question 51

Designing a waiting area to be conducive to conversation is an example of?

A) Keeping customers informed
B) Designing a fair waiting system
C) Keeping customers occupied
D) Grouping customers together

Question 52

A customer that gives up and leaves the queue is?

A) Reneging
B) Balking
C) Jockeying
D) Neither reneging, balking, nor jockeying

Question 53

A restaurant providing customers with pagers so that they do not have to physically wait in a queue is an example of?

A) Imaginary queues
B) Virtual queues
C) Invisible queues
D) Queue redirection

Question 54

A dentist's office providing TVs for patients in the waiting room is an example of?

A) Keeping customers informed
B) Designing a fair waiting system
C) Keeping customers occupied
D) Grouping customers together

Question 55

The First Law of Service suggests that?

A) Satisfaction = expectation - perception
B) Satisfaction = perception - expectation
C) Perception = satisfaction - expectation
D) Expectation = perception - satisfaction

Question 56

Posting expected waiting times is an example of?

A) Keeping customers informed
B) Designing a fair waiting system
C) Keeping customers occupied
D) Grouping customers together

Question 57

The arrangement of a queue and servers is referred to as a queue _______?

A) Configuration
B) Layout
C) Construction
D) Ensemble

Question 58

A customer that chooses not to join a queue because it is too long is?

A) Reneging
B) Balking
C) Jockeying
D) Neither reneging, balking, nor jockeying

Question 59

Customers arrive into a queuing system from a demand __________?

A) Creator
B) Generator
C) Source
D) Start

Question 60

According to the First Law of Service, customer perceptions/expectations may?

A) Not be based in reality
B) Vary considerably from one customer to the next
C) Not be based in reality and vary considerably from one customer to the next
D) The First Law of Service is unrelated to customer perceptions/expectations

Question 61

For a stable queuing system with one server and one queue, which of the following relationships should be true?

A) $\rho$ < 0.5
B) $\lambda$ < $\mu$
C) $\mu$ < $\lambda$
D) $\rho$ > 0.5

Question 62

Using separate queues depending on the type of work or service that is to be provided refers to the use of?

A) Queue sections
B) Queue classes
C) Queue disciplines
D) Queue segments

Question 63

For a single server, single queue system with an arrival rate of 12 customers per hour and a service rate of 20 customers per hour, what is the mean server utilization (to two decimal places)?

A) 1.67
B) 0.60
C) 8.00
D) Cannot be determined from the information given

Question 64

A demand source for an office soda machine would likely be considered to be?

A) Finite
B) Infinite
C) Neither finite nor infinite
D) Both finite and infinite

Question 65

For a single server, single queue system with an arrival rate of 12 customers per hour and a service rate of 20 customers per hour, what is the mean number of customers in the queue (to two decimal places)?

A) 0.90
B) 0.60
C) 1.50
D) Cannot be determined from the information given

Question 66

A customer that switches lines to try to find a faster line is?

A) Reneging
B) Balking
C) Jockeying
D) Neither reneging, balking, nor jockeying

Question 67

The FCFS queue discipline refers to?

A) First-caught, first-served
B) First-called, first-seated
C) First-come, first-served
D) First-come, first-seated

Question 68

Assume that customer arrivals at a small cafe can be modeled by a Poisson distribution. The average arrival rate is 3 customers per hour. What is the probability of exactly 1 arrival in the next hour (to two decimal places)?

A) 1.00
B) 0.15
C) 0.30
D) 0.45

Question 69

Assume that customer arrivals at a ticket counter can be modeled by a Poisson distribution. The average arrival rate is 12 customers per hour. What is the probability of zero arrivals in the next hour (to three decimal places)?

A) 1.000
B) 0.002
C) 0.000
D) 0.012

Question 70

Assume that customer arrivals at a ticket counter can be modeled by a Poisson distribution. The average arrival rate is 12 customers per hour. What is the probability of exactly 6 arrivals in the next hour (to three decimal places)?

A) 1
B) 0.25
C) 0.17
D) 0.08

Question 71

For a single server, single queue system with an arrival rate of 12 customers per hour and a service rate of 20 customers per hour, what is the probability of zero customers in the system (to two decimal places)?

A) 1.67
B) 0.60
C) 0.40
D) Cannot be determined from the information given

Question 72

Assume that customer arrivals at a small cafe can be modeled by a Poisson distribution. The average arrival rate is 3 customers per hour. What is the probability of 2 or fewer arrivals in the next hour (to three decimal places)?

A) Cannot be determined from the information given
B) 0.152
C) 0.224
D) 0.423

Question 73

Assume that customer arrivals at a small cafe can be modeled by a Poisson distribution. The average arrival rate is 3 customers per hour. What is the probability of exactly 2 arrivals in the next hour (to two decimal places)?

A) 1.00
B) 0.15
C) 0.22
D) 0.45

Question 74

A common arrival time pattern can be described by which statistical distribution?

A) Weibull
B) Poisson
C) Binomial
D) Normal

Question 75

Assume that customer arrivals at a ticket counter can be modeled by a Poisson distribution. The average arrival rate is 12 customers per hour. What is the probability of exactly 1 arrival in the next hour (to three decimal places)?

A) 1
B) 0.015
C) 0.000
D) 0.002

Question 76

A common probability distribution used for relatively easy and short processes is the?

A) Erlang
B) Poisson
C) Normal
D) Exponential

Question 77

For a single server, single queue system with an arrival rate of 12 customers per hour and a service rate of 20 customers per hour, what is the mean waiting time in the queue (to two decimal places)?

A) 0.90 hours
B) 0.08 hours
C) 0.13 hours
D) Cannot be determined from the information given

Question 78

For a single server, single queue system with an arrival rate of 12 customers per hour and a service rate of 20 customers per hour, what is the mean number of customers in the system (to two decimal places)?

A) 0.90
B) 0.60
C) 1.50
D) Cannot be determined from the information given

Question 79

The policy used to select the next customer to serve in a queuing system is referred to as the?

A) Queue structure
B) Queue discipline
C) Queue priority
D) Queue management

Question 80

The _____________ describes the time between customer arrivals to a queuing system.

A) Arrival focus
B) Arrival control
C) Arrival fluctuation
D) Arrival pattern