O.M. Ch. 3-MC Flashcards
Concentrating on one process performance measure at a time is a good idea.
False
World-class organizations normally use between 3 and 10 performance measures per process.
True
Labor cost is an organizational-level, rather than an operational-level, measure of financial performance.
False
Errors in service creation and delivery are sometimes called service upsets.
True
Queue time is a fancy term for wait time.
True
Two important aspects of measuring time performance are speed and accuracy.
False
Productivity of a process is computed by dividing the quantity of input by the quantity of output.
False
The measures for the quantity of input and quantity of output used in the productivity equation must be in the same units.
False
Managers can objectively make internal decisions that impact external outcomes with the aid of interlinking models.
True
Actionable performance measures provide the basis for decisions at the strategic level in an organization.
False
The primary purpose of the Baldrige Performance Excellence Program is to provide a framework for performance excellence through neutral, outside-party assessment of an organization’s strengths and weaknesses.
False
Production being scheduled to real-time sales data is an example of “information replaces assets.”
True
The Service-Profit Chain focuses on employees or service-providers.
True
The number of performance measures normally used per process by world-class organizations is
between 3 and 10
Which of the following is more an operational-level performance measure than an organizational-level performance measure?
budget variance
Which of the following is not generally considered a customer-satisfaction measure?
credit applications
Assurance, one of the key dimensions used to assess service quality, is defined as
knowledge and courtesy of the service providers, and their ability to inspire trust and confidence in customers
Which of the following is not a key dimension used to assess service quality?
functionality
Two important aspects of measuring time performance are speed and
reliability
Flexibility can relate either to adapting to changing customer needs or to
changing volume of demand
The time required to “ramp up” to an increased production output level in response to a surge in sales of a product is a measure of
volume flexibility
Creating, acquiring, and transferring knowledge, and modifying the behavior of employees in response to internal and external change is the definition of
learning
The triple bottom line refers to the areas of sustainability measurement that include environmental, economic, and
social
The quantitative modeling of cause-and-effect relationships between external and internal performance criteria is called
interlinking
The value of a loyal customer quantifies the
total revenue or profit each target-market customer generates over the buyer’s life cycle
In computing the value of a loyal customer (VLC), customer defection rate is used in determining
buyer’s life cycle (BLC)
Actionable performance measures provide the basis for decisions at the
level at which they are applied
The balanced scorecard is designed to be linked directly to an organization’s
strategy
