Deck 6: Goods and Service Design

Question 1

Prototype testing is an important step in the initial choice of a customer benefit package.

Answer 1

False

Question 2

Service design must be addressed from two perspectives - the service delivery system and the service encounter.

Answer 2

True

Question 3

Redundancy is the use of backup components in a design.

Answer 3

True

Question 4

The process by which the service is created and delivered is, in essence, the service itself..

Question 5

The decision of what goods and services to offer and how to position them in the marketplace is mainly an operational decision.

Question 6

Customer requirements that are expressed in the customer's own language is called the "voice of the customer."

Question 7

Quality function deployment is focused primarily on developing a viable quality control plan.

Question 8

In general, the designs of both goods and services follow a similar path. The critical differences lie in the detailed product and process design phases.

Question 9

Japan's Genichi Taguchi argued that any variation within the specification limits is equally good in terms of quality and long-run cost.

Question 10

Suppose that a manufacturing specification of a dimension is 1.0 $\pm$ 0.05. The permissible range of variation from 0.95 to 1.05 is called the tolerance.

Question 11

In the Taguchi loss function, as one deviates further from the target value, the loss increases in a linear fashion.

Question 12

To find the reliability of a complex system, one must first convert the parallel components into equivalent series components in order to compute the reliability of the entire system.

Question 13

A parallel system has no redundancy.

Question 14

Reliability is formally expressed as a probability between 0 and 1.

Question 15

The roof of the house of quality shows the relationship matrix between customer requirements and the technical features.

Question 16

The "goal post model" of conforming to specifications by specifying a nominal dimension and a tolerance is the basis for calculating the Taguchi loss function.

Question 17

The design of a service cannot be done independently from the process by which the service is delivered.

Question 18

The design of a manufactured good focuses primarily on its physical characteristics.

Question 19

The design of a customer benefit package CBP) focuses on the operational choices that the firm must make in order to provide the CBP.

Question 20

Reliability does not apply to services processes.

Question 21

Service recovery is the process of correcting a service upset and satisfying the customer.

Question 22

The final step in using the House of Quality involves identifying those technical features that meet any of the following criteria except

A)have the strongest relationship to customer requirements
B)have the highest quality
C)have poor competitive performance
D)will be strong selling points

Question 23

Design for Environment DfE) is the explicit consideration of environmental concerns during the design of goods and services and processes, and include such practices as designing for recycling and disassembly.

Question 24

In designing a service delivery system, good job and process design can usually overcome a poor location.

Question 25

A check processing operation would be an example of a low-contact system.

Question 26

A service encounter design focuses on the interaction, directly and indirectly, between the service providers) and the customer.

Question 27

The text presents an integrative case study of LensCrafters. Which statement is correct?

A)LensCrafters primary product is eyewear.
B)Each store has very different layout and servicescape.
C)Each store has a visible low contact area.
D)Low cost makes a long drive to a LensCrafters store worthwhile.

Question 28

Product simplicity encourages the use of standard parts and components.

Question 29

The customer benefit package at LensCrafters is weighted more toward the primary good, which is eyewear.

Question 30

Estate planning is an example of a low-contact system.

Question 31

A system design consisting of several parallel components that function independently of each other and where the system fails only if all the parallel components fail is an example of

A)simplification
B)redundancy
C)deployment
D)sustainability

Question 32

Which of the following is not a principal dimension of a servicescape?

A)spatial layout and functionality
B)signs, symbols and artifacts
C)facility location
D)ambient conditions

Question 33

Failure mode and effects analysis provides a basis for improving designs.

Question 34

Service guarantees provide a reward or compensation as a response to a service upset and are offered to customers after a service upset has occurred.

Question 35

Ensuring that hotel staff at the front desk address a guest by name is an example of a servicescape requirement.

Question 36

A kiosk at an airport that allows passengers to check their baggage would be an example of a lean servicescape environment.

Question 37

Customer contact requirements are either technical or behavioral in nature.

Question 38

A bank provides four sequential services to its customers. Over the last quarter, the reliability of each of these services was 92%, 97%, 95% and 90%. What is their overall reliability?

A)0.9700
B)0.9350
C)0.7630
D)0.7400

Question 39

The servicescape refers to the place where a service is located.

Question 40

The House of Quality shows the interrelationships between any pair of technical features.

Question 41

In a design specification 25 $\pm$ 1.5, the value 25 is called the ____, while $\pm$ 1.5 is called the ____.

A)nominal, reliability
B)average, tolerance
C)average, nominal
D)nominal, tolerance

Question 42

The process by which a model is constructed to test a good's physical properties or use under actual operating conditions is called

A)Quality Function Deployment
B)Value engineering
C)Detailed product design
D)Prototype testing

Question 43

If a redundant component is added to a system, the overall system reliability

A)will decrease
B)will increase
C)will stay the same
D)will double

Question 44

The fundamental planning tool used to implement Quality Function Deployment is the

A)Voice of the customer
B)Technical requirement relationship matrix
C)House of Quality
D)Market and competitive evaluation rating matrix

Question 45

Prior to designing and configuring a customer benefit package, a firm should understand and develop its ____.

A)detailed goods, services and process design
B)process and service encounter design
C)strategic mission and competitive priorities
D)marketplace evaluation

Question 46

Which of the following is not supported by Japan's Genichi Taguchi?

A)optimizing tolerances
B)goal post model
C)quadratic loss function
D)monetary expression of variation

Question 47

Which of the following is not a principal issue in service encounter design?

A)facility location
B)customer contact behavior and skills
C)service provider selection, development and empowerment
D)service recovery and guarantees

Question 48

Which of the following is not a principal dimension of the servicescape?

A)Ambient condition
B)Process and job design
C)Spatial layout and functionality
D)Signs, symbols and artifacts

Question 49

Which of the following is not correct regarding product or process simplification?

A)reduces flexibility
B)reduces opportunity for error
C)speeds up flow time
D)improves reliability

Question 50

In design specification terminology, the target dimension is called

A)nominal
B)exceptional
C)bull's-eye
D)goal

Question 51

Which of the following steps is not the same for both goods and services?

A)detailed goods, services and process design
B)Customer Benefit Package design and configuration
C)market introduction/deployment
D)marketplace evaluation

Question 52

To improve system reliability, one option is to

A)use better components
B)use more components in series
C)use quality function deployment
D)eliminate redundancy

Question 53

Quality Function Deployment QFD) starts with

A)Competitive evaluation
B)Technical requirements
C)Voice of the customer
D)Technical requirement priorities

Question 54

In design specification terminology, permissible variation is called

A)nominal
B)buffer
C)tolerance
D)leeway

Question 55

Which of the following is not a principal element in service encounter design?

A)Technology and information support systems
B)Customer contact behavior and skills
C)Service provider selection, development and empowerment
D)Service recovery and guarantees

Question 56

Which of the following is not one of the six customer attributes that impact the design and configuration of a customer benefit package?

A)Time
B)Information
C)Exchange
D)Reliability

Question 57

Which of the following is not an important element of reliability definition?

A)probability
B)time
C)redundancy
D)operating conditions

Question 58

Which of the following is not included in a failure-mode-and-effects analysis FMEA)?

A)ways in which components might fail
B)calculation of the component reliability
C)consequences of failure
D)how potential failures can be corrected in the design

Question 59

Regarding the first House of Quality, the interrelationship between any pair of technical features is found in

A)the voice of the customer
B)the relationship matrix
C)the roof
D)the basement

Question 60

Taguchi's loss function is most closely associated with

A)design failure-mode-and-effects analysis
B)reliability calculation
C)tolerance design
D)prototype testing

Question 61

Assume the specifications for a part in inches) are 5.00 $\times$ 0.37, and the Taguchi loss function is estimated to be L(x) = 9,300 (x - T)². Determine the estimated loss if the quality characteristic under study takes on a value of 5.50 inches.

Question 62

Define reliability. Include the four major elements.

Question 63

Describe the Taguchi loss function. Contrast it to the "goal post" model.

Question 64

Explain the basic principles of Quality Function Deployment QFD). Also, discuss the advantages of using this methodology.

Question 65

A critical part has a manufacturing specification of 0.325 cm $\times$ 0.010. Based on historic information, if this measurement is larger than 0.335 or smaller than 0.315, the product fails at a cost of $120. Determine the Taguchi loss function.

Question 66

Objectives of service guarantees include all of the following except

A)increasing brand image
B)reducing customer risk
C)forcing operational improvement
D)allowing reduced pricing

Question 67

Explain the importance of service recovery and service guarantees.

Question 68

Explain the concept of Design Failure-Mode-and-Effect analysis.

Question 69

Explain service encounter design. Include the principal issues that must be addressed.

Question 70

Discuss the concept of Design for Environment DfE).

Question 71

Summarize the process of designing goods and services, and explain where the process differs between goods and services.

Question 72

Customer contact, for the purpose of classifying a system as being high-contact or low-contact, is measured by

A)the percentage of a service provider's workday spent with customers
B)the percentage of time the customer must be in the system relative to the total time it takes to provide the service
C)the number of service encounters occurring in a given span of time
D)the number of different service providers required to serve one customer

Question 73

List the five elements of a service delivery system.

Question 74

A quality characteristic has a specification in cm.) of 0.400 $\times$ 0.03. If the value of the quality characteristic exceeds 0.400 by the tolerance of 0.030 on either side, the product will require a $180.00 repair. What is the appropriate Taguchi loss function?

Question 75

High customer contact systems would most commonly be found in ____.

A)distribution systems
B)mid office operations
C)front office operations
D)back office operations

Question 76

Discuss the concept of servicescape.

Question 77

Differentiate between high customer contact systems and low customer contact systems. Include examples of each.

Question 78

An) ____ is a promise to reward and compensate a customer if a service upset occurs.

A)service guarantee
B)customer contact requirement
C)service recovery
D)empowerment

Question 79

Explain the concept of Design for Manufacturability DFM).

Question 80

A quality characteristic has a manufacturing specification in cm) of 0.200 $\times$ 0.05. Historical data indicate that if the quality characteristic takes on values larger than 0.25 cm or smaller than 0.15 cm, the product fails and a cost of $75 is incurred. Based on this data, answer the questions below.
a. Determine the Taguchi Loss Function
b. Estimate the loss for a quality characteristic of 0.135 cm.