O.M. Ch. 3-MC

Question 1

Concentrating on one process performance measure at a time is a good idea.

Answer 1

False

Question 2

World-class organizations normally use between 3 and 10 performance measures per process.

Answer 2

True

Question 3

Labor cost is an organizational-level, rather than an operational-level, measure of financial performance.

Answer 3

False

Question 4

Errors in service creation and delivery are sometimes called service upsets.

Answer 4

True

Question 5

Queue time is a fancy term for wait time.

Answer 5

True

Question 6

Two important aspects of measuring time performance are speed and accuracy.

Answer 6

False

Question 7

Productivity of a process is computed by dividing the quantity of input by the quantity of output.

Answer 7

False

Question 8

The measures for the quantity of input and quantity of output used in the productivity equation must be in the same units.

Answer 8

False

Question 9

Managers can objectively make internal decisions that impact external outcomes with the aid of interlinking models.

Answer 9

True

Question 10

Actionable performance measures provide the basis for decisions at the strategic level in an organization.

Answer 10

False

Question 11

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.

Answer 11

False

Question 12

Production being scheduled to real-time sales data is an example of “information replaces assets.”

Answer 12

True

Question 13

The Service-Profit Chain focuses on employees or service-providers.

Answer 13

True

Question 14

The number of performance measures normally used per process by world-class organizations is

Answer 14

between 3 and 10

Question 15

Which of the following is more an operational-level performance measure than an organizational-level performance measure?

Answer 15

budget variance

Question 16

Which of the following is not generally considered a customer-satisfaction measure?

Answer 16

credit applications

Question 17

Assurance, one of the key dimensions used to assess service quality, is defined as

Answer 17

knowledge and courtesy of the service providers, and their ability to inspire trust and confidence in customers

Question 18

Which of the following is not a key dimension used to assess service quality?

Answer 18

functionality

Question 19

Two important aspects of measuring time performance are speed and

Answer 19

reliability

Question 20

Flexibility can relate either to adapting to changing customer needs or to

Answer 20

changing volume of demand

Question 21

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

Answer 21

volume flexibility

Question 22

Creating, acquiring, and transferring knowledge, and modifying the behavior of employees in response to internal and external change is the definition of

Answer 22

learning

Question 23

The triple bottom line refers to the areas of sustainability measurement that include environmental, economic, and

Answer 23

social

Question 24

The quantitative modeling of cause-and-effect relationships between external and internal performance criteria is called

Answer 24

interlinking

Question 25

The value of a loyal customer quantifies the

Answer 25

total revenue or profit each target-market customer generates over the buyer’s life cycle

Question 26

In computing the value of a loyal customer (VLC), customer defection rate is used in determining

Answer 26

buyer’s life cycle (BLC)

Question 27

Actionable performance measures provide the basis for decisions at the

Answer 27

level at which they are applied

Question 28

The balanced scorecard is designed to be linked directly to an organization’s

Answer 28

strategy