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183 Cards in this Set

  • Front
  • Back
customer benefit package (CBP)
A clearly defined set of tangible (goods-content) and intangible (service-content) features that the customer recognizes, pays for, uses, or experiences. (LO4)
durable good
A product that typically lasts at least three years. (LO3)
good
A physical product that you can see, touch, or possibly consume. (LO3)
moment of truth
Any episode, transaction, or experience in which a customer comes into contact with any aspect of the delivery system, however remote, and thereby has an opportunity to form an impression. (LO3)
nondurable good
A product that is perishable and generally lasts for less than three years. (LO3)
operations management (OM)
The science and art of ensuring that goods and services are created and delivered successfully to customers. (LO1)
peripheral goods or services
Goods or services that are not essential to the primary good or service, but enhance it. (LO4)
primary good or service
The “core” offering that attracts customers and responds to their basic needs. (LO4)
process
A sequence of activities that is intended to create a certain result. (LO5)
service
Any primary or complementary activity that does not directly produce a physical product. (LO3)
service encounter
An interaction between the customer and the service provider. (LO3)
service management
integrates marketing, human resource, and operations functions to plan, create, and deliver goods and services, and their associated service encounters. (LO3)
backward integration
Acquiring capabilities at the front-end of the supply chain (for instance, suppliers). (LO4)
forward integration
Acquiring capabilities toward the back-end of the supply chain (for instance, distribution or even customers). (LO4)
multinational enterprise
A organization that sources, markets, and produces its goods and services in several countries to minimize costs, and to maximize profit, customer satisfaction, and social welfare. (LO6)
off shoring
The building, acquiring, or moving of process capabilities from a domestic location to another country location while maintaining ownership and control. (LO5)
operational structure
The value chain is the configuration of resources such as suppliers, factories, warehouses, distributors, technical support centers, engineering design and sales offices, and communication links. (LO4)
outsourcing
The process of having suppliers provide goods and services that were previously provided internally. (LO4)
supply chain
The portion of the value chain that focuses primarily on the physical movement of goods and materials, and supporting flows of information and financial transactions through the supply, production, and distribution processes. (LO3)
value
The perception of the benefits associated with a good, service, or bundle of goods and services (i.e., the customer benefit package) in relation to what buyers are willing to pay for them. (LO1)
value chain
A network of facilities and processes that describes the flow of goods, services, information, and financial transactions from suppliers through the facilities and processes that create goods and services and deliver them to customer. (LO1)
value chain integration
The process of managing information, physical goods, and services to ensure their availability at the right place, at the right time, at the right cost, at the right quantity, and with the highest attention to quality. (LO4)
value proposition
A competitively dominant customer experience. (LO1)
vertical integration
The process of acquiring and consolidating elements of a value chain to achieve more control. (LO4)
competitive advantage
A firm’s ability to achieve market and financial superiority over its competitors. (LO1)
competitive priorities
The strategic emphasis that a firm places on certain performance measures and operational capabilities within a value chain. (LO4)
core competencies
The strengths that are unique to an organization. (LO5)
credence attributes
Any aspects of a good or service that the customer must believe in, but cannot personally evaluate even after purchase and consumption. (LO3)
dissatisfiers
requirements that are expected in a good or service. (LO2)
exciters/delighters
new or innovative good or service features that customers do not expect. (LO2)
experience attributes
Those that can be discerned only after purchase or during consumption or use. (LO3)
infrastructure
The nonprocess features and capabilities of the organization and includes the workforce, operating plans and control systems, quality control, organizational structure, compensation systems, learning and innovation systems, and support services. (LO6)
innovation
The discovery and practical application or commercialization of a device, method, or idea that differs from existing norms. (LO4)
mass customization
Being able to make whatever goods and services the customer wants, at any volume, at any time for anybody, and for a global organization, from any place in the world. (LO4)
operations design choices
The decisions management must make as to what type of process structure is best suited to produce goods or create services. (LO6)
operations strategy
How an organization will execute its chosen business strategies. (LO5)
order qualifiers
Basic customer expectations—dissatisfiers and satisfiers—are generally considered the minimum performance level required to stay in business. (LO2)
order winners
Goods and service features and performance characteristics that differentiate one customer benefit package from another, and win the customer’s business. (LO2)
satisfiers
requirements that customers say they want. (LO2)
search attributes
Those that a customer can determine prior to purchasing the goods and/or services. (LO3)
strategy
A pattern or plan that integrates an organization’s major goals, policies, and action sequences into a cohesive whole. (LO5)
customer contact
The physical or virtual presence of the customer in the service delivery system during a service experience. (LO7)
customer-contact requirements
Measurable performance levels or expectations that define the quality of customer contact with representatives of an organization. (LO7)
design for Environment (DfE)
The explicit consideration of environmental concerns during the design of goods, services, and processes and includes such practices as designing for recycling and disassembly. (LO5)
elaborate servicescape environments
More complicated structures and service systems. (LO6)
empowerment
Giving people authority to make decisions based on what they feel is right, to have control over their work, to take risks and learn from mistakes, to promote change. (LO7)
failure-mode-and-effects analysis (FMEA)
A technique in which each component of a product is listed along with the way it may fail, the cause of failure, the effect or consequence of failure, and how it can be corrected by improving the design. (LO5)
green manufacturing or green practices
A focus on improving the environment by better good or service design. (LO5)
high-contact systems
Systems in which the percentage is high; (LO7)
lean servicescape environments
Servicescapes, that are very simple. (LO6)
low-contact systems
Systems in which the percentage is low; (LO7)
product and process simplification
The process of trying to simplify designs to reduce complexity and costs and thus improve productivity, quality, flexibility, and customer satisfaction. (LO5)
prototype testing
The process by which a model (real or simulated) is constructed to test the good’s physical properties or use under actual operating conditions, as well as consumer reactions to the prototypes. (LO5)
quality engineering
A process of designing quality into a manufactured good based on a prediction of potential quality problems prior to production. (LO5)
quality function deployment (QFD)
Both a philosophy and a set of planning and communication tools that focus on customer requirements in coordinating the design, manufacturing, and marketing of goods or services. (LO4)
reliability
The probability that a manufactured good, piece of equipment, or system performs its intended function for a stated period of time under specified operating conditions. (LO3)
robust
Goods that are insensitive to external sources of variation. (LO2)
service delivery system design
Facility location and layout, the servicescape, service process and job design, technology and information support systems, and organizational structure. (LO6)
service encounter design
The interaction, directly or indirectly, between the service-provider(s) and the customer. (LO7)
service guarantee
A promise to reward and compensate a customer if a service upset occurs during the service experience. (LO7)
service process design
The activity of developing an efficient sequence of activities to satisfy both internal and external customer requirements (LO6)
service recovery
The process of correcting a service upset and satisfying the customer. (LO7)
service upset
Any problem a customer has—real or perceived—with the service delivery system and includes terms such as service failure, error, defect, mistake, or crisis. (LO7)
servicescape
All the physical evidence a customer might use to form an impression. The servicescape also provides the behavioral setting where service encounters take place. (LO6)
value analysis
Cost reduction of the manufactured good or service process. (LO5)
value engineering
Cost avoidance or cost prevention before the good or service is created. (LO5)
voice of the customer
Customer requirements, as expressed in the customer’s own terms. (LO4)
activity
A group of tasks needed to create and deliver an intermediate or final output. (LO4)
bottleneck
The work activity that effectively limits throughput of the entire process. (LO6)
continuous flow processes
Highly standardized goods or services, usually around the clock in very high volumes. (LO1)
custom, or make-to-order, goods and services
Generally produced and delivered as one-of-a-kind or in small quantities, and are designed to meet specific customers’ specifications. (LO1)
customer-routed services
Those that offer customers broad freedom to select the pathways that are best suited for their immediate needs and wants from many possible pathways through the service delivery system. (LO3)
flow shop processes
Organized around a fixed sequence of activities and process steps, such as an assembly line to produce a limited variety of similar goods or services. (LO1)
flow time, or cycle time
The average time it takes to complete one cycle of a process. (LO6)
job shop processes
Organized around particular types of general-purpose equipment that are flexible and capable of customizing work for individual customers. (LO1)
option, or assemble-to-order, goods and services
Configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set. (LO1)
pathway
A unique route through a service system. (LO3)
process
Consists of a group of activities. (LO4)
process boundary
The beginning or end of a process. (LO4)
process map (flowchart)
The sequence of all process activities and tasks necessary to create and deliver a desired output or outcome. (LO4)
product life cycle
A characterization of product growth, maturity, and decline over time. (LO3)
product-process matrix
A model that describes the alignment of process choice with the characteristics of the manufactured good. (LO2)
projects
Large-scale, customized initiatives that consist of many smaller tasks and activities that must be coordinated and completed to finish on time and within budget. (LO1)
provider-routed services
Constrain customers to follow a very small number of possible and predefined pathways through the service system. (LO3)
reengineering
Defined as “the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service, and speed.” (LO5)
service encounter activity sequence
Consists of all the process steps and associated service encounters necessary to complete a service transaction and fulfill a customer’s wants and needs. (LO3)
standard, or make-to-stock, goods and services
Made according to a fixed design, and the customer has no options from which to choose. (LO1)
task
A specific unit of work required to create an output. (LO4)
throughput
The average number of entities completed per unit time—the output rate—from a process. (LO6)
utilization
The fraction of time a workstation or individual is busy over the long run. (LO6)
value chain
A network of processes. (LO4)
value stream
Refers to all value-added activities involved in designing, producing, and delivering goods and services to customers. (LO4)
Which of the following is the definition of operations management?

a. The science and art of delivering goods-services to customers that they value.
b. The science of lowering costs in all businesses.
c. The science of creating and delivering goods-services to customers that they value.
d. The science of making businesses more efficient.
a. The science and art of delivering goods-services to customers that they value.
You are employed as a company cost accountant. Which of your activities would not be considered a part of OM?

a. Quantifying the costs of poor quality.
b. Working with line managers and finance to precisely define inventory holding costs.
c. Determining which costs are truly variable and which are fixed for facility location decisions.
d. Interfacing with financial accounting.
d. Interfacing with financial accounting.
You are an outside sales representative for a medical devices company. Which of your work activities would not be considered part of OM?

a. Interfacing with manufacturing to ensure that new product offerings fit within the scope of what production can do and fit within the firm's business strategy.
b. Interpret customer feedback for technical personnel.
c. Evaluate advertising agencies for the impact of their proposed ads.
d. Interfacing with the engineering design group to come up with new product ideas that mesh the firm's technical capabilities with market requirements.
c. Evaluate advertising agencies for the impact of their proposed ads.
You are a software developer for a firm that develops real estate appraisal products. Which of your work activities would not be considered part of OM?

a. Working with human resources to develop a better total compensation package for developers.
b. Learning the C# programming language.
c. Developing conceptual designs in concert with a sample of end users and management.
d. Participating in code walk-throughs to assess and improve deliverable quality.
b. Learning the C# programming language.
You are the CEO of a company that manages amusement parks. Which of your activities would not be considered OM?

a. Managing the project for new part rollouts.
b. Formulating business strategy.
c. Developing human resource plans.
d. Ensuring that patron satisfaction survey results are linked to park improvement projects.
b. Formulating business strategy.
Which set of disciplines come together for service management?

a. Marketing, operations, and human resources
b. Finance, accounting, and operations
c. Operations, marketing, and finance
d. Operations, finance, and human resources
a. Marketing, operations, and human resources
T/F

Customer contact skills are equally important in predominantly goods producing situations as in predominantly service situations.
False
A ______ is a deviation from the normal CPP.
Variant
What is the correct sequence?

a. CBPs-Customer needs-Processes
b. Customer needs-Processes-CBPs
c. Processes-CBPs-Customer needs
d. Customer needs-CBPs-Processes
d. Customer needs-CBPs-Processes
Why is demand forecasting more critical for services than in manufacturing?

a. The units to be forecasted are much smaller for services.
b. Service demand is harder to forecast.
c. Services are inherently more important.
d. Inventory cannot be stored for later sale for services.
d. Inventory cannot be stored for later sale for services.
Which of the following is true?

a. Value chains are subsets of processes.
b. Value chains are equivalent to processes.
c. Processes are subsets of value chains.
d. Value chains are unrelated to processes.
c. Processes are subsets of value chains.
Processes are:

a. instructions for fabricating and assembling a product.
b. a series of actions designed to achieve a result.
c. a design for transforming raw materials into a physical product.
d. specifications agreed upon between a buyer and seller.
b. a series of actions designed to achieve a result.
Today, projects are most commonly organized by:

a. functions, working independent of other functions.
b. processes that involve different functions.
c. senior management, who runs projects in a command-and-control fashion.
d. having a functional area lead and draw on help outside the firm for functions they are not familiar with.
b. processes that involve different functions.
What is the most accurate description of support processes?

a. They operate independent of processes.
b. They are controlled by outside consultants.
c. They cut across all processes.
d. They reside within a single functional area.
c. They cut across all processes.
General accounting and information systems are:

a. support processes.
b. value creation processes.
c. value chains.
d. general management processes.
d. general management processes.
A simplification of reality for the purpose of making decisions in a timely fashion about complicated situations is called a ______
Model
Select one characteristic of good modeling.

a. Abruptly ends bickering among decision makers in complex situations.
b. Should be kept as simple as possible so that insights can be gained.
c. Faithfully incorporates every detail of the decision situation.
d. Always uses the most sophisticated mathematics and software available.
b. Should be kept as simple as possible so that insights can be gained.
Which of the following statements is true when competing on customization and design?

a. One should operate a lean facility to promote agility.
b. One must have plenty of slack in the system to account for the large amount of uncertainty.
c. Unit costs must go up.
d. Cruder, more flexible manufacturing technology is required.
a. One should operate a lean facility to promote agility.
Which of the following statements is true?

a. Cost minimization is the predominant goal of operations today.
b. Time based competition is at odds with lean manufacturing.
c. Quality emphasis has gone out of style today.
d. The importance of service operations is growing since the fraction of the world's workforce involved in services keeps increasing.
d. The importance of service operations is growing since the fraction of the world's workforce involved in services keeps increasing.
The chronological sequence of primary emphases in operations has been:

a. Quality-Efficiency-Customization-Time-Services.
b. Customization-Quality-Efficiency-Time-Services.
c. Efficiency-Quality-Customization-Time-Services.
d. Time-Efficiency-Quality-Customization-Services.
c. Efficiency-Quality-Customization-Time-Services.
Value is defined as:

a. the price paid for the customer benefit package.
b. quantifiable benefits to the customer divided by their price paid.
c. the sum of the perceived benefits of the customer benefit package.
d. the sum of perceived benefits divided by cost to the customer.
d. the sum of perceived benefits divided by cost to the customer.
Which of the following actions at a hotel does not result in a value increase?

a. Adding free to-from airport transportation via fast, reliable vans at a property targeting budget-conscious customers.
b. Making the proportional increase in overall customer satisfaction, exclusive of the room rate, equal to the proportional increase in room rate.
c. Keeping the room rate constant while improving room service, a highly-used function.
d. Lowering select room rates while maintaining all quality characteristics.
b. Making the proportional increase in overall customer satisfaction, exclusive of the room rate, equal to the proportional increase in room rate.
T/F

The input-output view of a value chain looks at the flow of materials from supplier to finished product and the corresponding sequence of services from the time the customer first gets attracted to the product-service mix until the customer has consumed their customer benefit package.
True
T/F

The pre- and post-service view of the value chain is like the input-output view in that it is a strictly sequential view of activities.
False
Which of the following would be part of a value chain but not part of a supply chain?

a. Financing practices in regards to inventory.
b. Flow of goods from supplier to the firm.
c. Information systems that coordinate the flow of goods for the firm.
d. Training for customer contact personnel on negotiating skills with clients.
d. Training for customer contact personnel on negotiating skills with clients.
Which of the following is true?

a. For a particular process, if a firm increases the overall proportion of outsourcing, the overall proportion of vertical integration must decrease.
b. Outsourcing and vertical integration are completely unrelated.
c. For a particular process, a firm can increase the overall proportion of both outsourcing and vertical integration.
d. Increasing outsourcing is preferable to increasing vertical integration in today's economy.
a. For a particular process, if a firm increases the overall proportion of outsourcing, the overall proportion of vertical integration must decrease.
For a firm working in a space involving numerous potential suppliers, vendors, distributors, and markets:

a. supply chain integration would be advisable only if the increased complexity associated with it is more than offset by cost reductions for all partners.
b. supply chain integration would be advisable only if the learning benefits accrued to the firm via integration more than offset the increased coordination costs.
c. supply chain integration is essential.
d. supply chain integration would be advisable only if quality improvements due to integration more than offset the increased coordination costs.
c. supply chain integration is essential.
Which of the following government initiatives have not necessarily enhanced the effectiveness of global value chains?

a. Reducing import tariffs and restrictions.
b. Development of a good logistics infrastructure.
c. Privatizing government-owned businesses.
d. Forced cutback of the workweek.
d. Forced cutback of the workweek.
Which of the following is not an impetus for expanding business overseas?

a. Obtaining lower labor costs.
b. Gain initial access advantage to virgin markets.
c. Hedge against individual country currency swings.
d. Share intellectual property.
d. Share intellectual property.
Which of the following is not a characteristic of a foreign factory type?

a. Much lower unit costs.
b. Take advantage of a skill differential.
c. A lead design plant in the firm's portfolio for product lines that will never change.
d. Exploit local business-cultural knowledge.
c. A lead design plant in the firm's portfolio for product lines that will never change.
Which of the following pairs of foreign factory types does not have the riskier type listed first?

a. Contributor factory-Lead factory
b. None of these choices
c. Outpost factory-Offshore factory
d. Source factory-Server factory
a. Contributor factory-Lead factory
Which of the following is not a generally accepted practice for preparing to offshore?

a. Have more rigor in outsourcing
b. Design for manufacturability
c. Strive for low labor costs
d. Reduce overhead
c. Strive for low labor costs
Traditional market research is least effective in assessing which of these customer requirement classes?

a. Both exciters and delighters
b. Dissatisfiers
c. Delighters
d. Exciters
a. Both exciters and delighters
What is the correct progression?

a. Satisfiers to Dissatisfiers to Exciters/Delighers
b. Exciters/Delighters to Dissatisfiers to Satisfiers
c. Dissatisfiers to Satisfiers to Exciters/Delighters
d. Exciters/delighters to Satisfiers to Dissatisfiers
d. Exciters/delighters to Satisfiers to Dissatisfiers
Which of these attributes is most difficult for a firm to evaluate in consumers?

a. Experience
b. None
c. Search
d. Credence
d. Credence
T/F

Complex supply chains hinder flexibility.
True
Reduction in flow time has what impact on quality?

a. Reduces it independent of other competitive priorities.
b. Improves it only if flexibility improves.
c. Improves it independent of other competitive priorities.
d. Reduces it only if flexibility worsens.
c. Improves it independent of other competitive priorities.
Reduction in flow time has what impact on costs?

a. Increases costs independent of other competitive priorities.
b. Reduces costs only if flexibility improves.
c. Increases costs only if flexibility worsens.
d. Reduces costs independent of other competitive priorities.
d. Reduces costs independent of other competitive priorities.
Historically, the weakest links have been between:

a. finance and operations.
b. human resources and marketing.
c. marketing and finance.
d. marketing and operations.
d. marketing and operations.
What is the proper sequence in strategy formation?

a. Business strategy-croprorate strategy-functional strategy
b. Corporate strategy-business strategy-functional strategy
c. Corporate strategy-functional strategy-business strategy
d. Functional strategy-business strategy-corporate strategy
c. Corporate strategy-functional strategy-business strategy
At what level is operations strategy formed?

a. Corporate
b. Functional
c. SKU
d. Business
b. Functional
Level of innovation is in which phase of Hill's Strategy Development Framework?

a. Corporate Objective
b. Operations Strategy
c. Order Qualifiers/Winners
d. Marketing Strategy
d. Marketing Strategy
Level and type of Quality emphasis is in which phase of Hill's Strategy Development Framework?

a. Corporate Objective
b. Order Qualifiers/Winners
c. Operations Strategy
d. Marketing Strategy
b. Order Qualifiers/Winners
Compensation systems is in which phase of Hill's Strategy Development Framework?

a. Marketing Strategy
b. Order Qualifiers/Winners
c. Corporate Objective
d. Operations Strategy
d. Operations Strategy
McDonald's switch from a make-to-stock to make-to-order system involves which shift?

a. Process-oriented toward product-oriented
b. Product-oriented toward process-oriented
c. Speed-oriented toward cost-oriented
d. Cost-oriented toward speed-oriented
b. Product-oriented toward process-oriented
McDonald's systems place which emphasis?

a. Proper service capacity and inventory levels independent of one another.
b. Proper service capacity levels.
c. Proper inventory levels.
d. Proper service capacity and inventory levels set jointly.
d. Proper service capacity and inventory levels set jointly.
The most important factor in a McDonald's outlet location decision involves:

a. proximity to transportation routes.
b. proximity to product distribution centers.
c. proximity to raw materials (e.g., agriculture).
d. proximity to customers.
d. proximity to customers.
The company that manufactures the Lamborghini automobile has which type of infrastructure?

a. A production planning and control system designed for high volume.
b. High conformance quality control system.
c. A command-and-control learning system.
d. A quality system representing artistry.
d. A quality system representing artistry.
What type of organization structure would be best for an aerospace company that is project-driven but employs highly-trained specialists from many disciplines?

a. A pure process structure
b. A highly-layered hierarchical structure
c. A functional structure
d. A matrix structure
d. A matrix structure
What type of compensation system works best for an emergency medicine team requiring extensive cooperation among members and involving little individual oversight?

a. A team-based system
b. An individual-based system
c. A piece-rate system
d. A hybrid individual-team system
a. A team-based system
With respect to the McDonald's case: which marketing strategy is most likely to cause conflict with the low price order winner competitive priority?

a. Develop new food items
b. Commitment to a diverse work force
c. Ideal store location
d. Tie demand analysis to promotions
a. Develop new food items
With respect to the McDonald's case: which order winner is most likely to cause conflict with the low price order winner?

a. High goods quality
b. Brand image
c. Demand flexibility
d. High service quality
c. Demand flexibility
With respect to the McDonald's case: which order winner is most likely to cause conflict with the quick service order winner?

a. Brand image
b. High goods quality
c. Low prices
d. Demand flexibility
d. Demand flexibility
The steps in the integrated framework for goods and services design where services and goods differ most are:

a. customer benefits package design and configuration.
b. strategic mission and vision.
c. goods/service design and process design.
d. strategic and market analysis, and understanding competitive priorities.
c. goods/service design and process design.
The Marketplace evaluation step in the integrated framework involves most directly:

a. basing the evaluation on net profit generated.
b. basing the evaluation on a constant evaluation of customer reactions and sales.
c. basing the evaluation on cash flow increase.
d. basing the evaluation on return on investment.
b. basing the evaluation on a constant evaluation of customer reactions and sales.
The ________ of a service cannot be done independently from the ______ by which the service is delivered.
design, process
T/F

Manufacturing process A has zero probability of going outside its specification limits, process B has a 10% chance of going outside its limits, but B has a higher standard deviation. A must have a lower total Taguchi loss.
False
Which activity comes first among Quality engineering and Value engineering?

a. They are unrelated
b. Value engineering
c. Quality engineering
d. They occur simultaneously
c. Quality engineering
A robust design:

a. is insensitive to external sources of variation.
b. was put together by a cross-disciplinary team.
c. is a modular design.
d. can meet many different customer uses.
a. is insensitive to external sources of variation.
Which of the following are elements of a servicescape?

a. Packaging
b. Color schemes
c. The physical structures
d. All answers are correct
d. All answers are correct
What type of organizational structure is best for services?

a. A hybrid of functional and process
b. Functional
c. Command-and-control
d. Process
d. Process
_______ is the activity of developing an efficient sequence of activities to satisfy both internal and external customer requirements.
Service Process Design
T/F

Customer Contact refers to verbal interaction between the customer and a representative of the firm.
False
Which service business has the most capability to differentiate their CBPs from competitors?

a. Law firm
b. Fast-food restaurant
c. Department store
d. Discount financial services firm
a. Law firm
Empowerment means enabling employees to:

a. learn from mistakes
b. These are both wrong.
c. promote change
d. These are both correct.
d. These are both correct.
Which of the following Time attributes does LensCrafter use?

a. Time reduction due to home delivery.
b. Precise 1 hour wait.
c. Reliable 1-2 hour arrival time-to-leave with glasses.
d. Discount for allowing the industry-standard 2-15 day wait.
c. Reliable 1-2 hour arrival time-to-leave with glasses.
Which of the following Place attributes does LensCrafter use?

a. Allows for Internet ordering.
b. Located in convenient areas for most people.
c. Allows for home delivery.
d. Will come to one's home for fittings.
b. Located in convenient areas for most people.
Which of the following Information attributes does LensCrafter use?

a. Eyeglass specifications
b. Bill
c. All answers are correct
d. Payment receipt
c. All answers are correct
What is the final component to be filled-in for the House of Quality?

a. Technical requirement priorities
b. Voice of the customer
c. Competitive evaluation
d. Technical requirements
a. Technical requirement priorities
As one moves to more detailed Houses of Quality for a given product/service, what is a correct example of links from one House to the next?

a. Component characteristics move from top to side.
b. Technical requirement priorities move from bottom to top.
c. Component characteristics move from side to top.
d. Voice of the customer moves from side to top.
a. Component characteristics move from top to side.
What aspect of QFD do U.S. firms deemphasize (unfortunately)?

a. Competitive evaluations with respect to the voice of the customer.
b. Detailed process control planning.
c. Capturing the voice of the customer.
d. Linking high-level technical requirements to the voice of the customer.
b. Detailed process control planning.
Custom products are best made on which type(s) of processes?

a. Job Shop
b. Project or Job Shop
c. Flow Shop
d. Project
b. Project or Job Shop
Assemble-to-order products are best made on which type(s) of processes?

a. Continuous Flow
b. Job Shop or Flow Shop
c. Flow Shop
d. Job Shop
b. Job Shop or Flow Shop
Standardized products are best made on which type(s) of processes?

a. Flow Shop or Continuous Flow
b. Flow Shop
c. Continuous Flow
d. Job Shop
a. Flow Shop or Continuous Flow
What part of the product-process matrix would mass customization fit into?

a. Off-diagonal position B
b. Flow Shop
c. Job Shop
d. Off-diagonal position A
a. Off-diagonal position B
As a product moves from the beginning toward the middle of its lifecycle, what direction should it go on the product-process matrix?

a. Bottom-up, right-to-left
b. Bottom-up, left-to-right
c. Top-down, left-to-right
d. Top-down, right-to-left
c. Top-down, left-to-right
As a product line regenerates itself by meeting new market segment requirements, what direction should the line go on the product-process matrix?

a. Top-down, right-to-left
b. Bottom-up, left-to-right
c. Bottom-up, right-to-left
d. Top-down, left-to-right
c. Bottom-up, right-to-left
Which of the following is a mismatch for the service positioning matrix?

a. Low repeatability of service encounter activity sequence-Low degree of management control of service system
b. High repeatability of service encounter activity sequence-Small number of pathways
c. High customer discretion-Large number of pathways
d. Low customer discretion-High degree of management control of service system
a. Low repeatability of service encounter activity sequence-Low degree of management control of service system
Why isn't the product-process matrix for goods transferable to services?

a. Service processes can remain constant as changeover time from one customer to the next increases.
b. Service processes can remain constant at traffic increases.
c. Service processes can remain constant as degree of customization changes.
d. Service processes can remain constant as variety of services increases.
b. Service processes can remain constant at traffic increases.
What is a pathway?

a. A unique physical routing through a service system.
b. A unique Internet connection.
c. A unique route through a service system.
d. A unique layout for a service facility.
c. A unique route through a service system.
Which of the following has the most provider-routed services?

a. Supermarket shopping
b. Health club usage
c. Commercial aircraft boarding
d. Taxi service
c. Commercial aircraft boarding
T/F

Unlike the product-process matrix, there is no evidence that a firm can benefit by operating far from the optimum diagonal.
True
How do firms exploit economies of scale for fast-paced life-cycles?

a. Follow the life-cycle through to the decline/turnaround stage, and reap economies of scale for each individual product in the maturity phase.
b. Obtain economies of scale for each individual product in its growth stage.
c. Obtain economies of scale for each individual product in its introduction stage.
d. Continuously introduce new products globally so that the sum of each market's small volume equates to a large volume.
d. Continuously introduce new products globally so that the sum of each market's small volume equates to a large volume.
During the introduction stage of the product life cycle, what is(are) the dominant process(es)?

a. Flow shop
b. Continuous flow
c. Job shop/Project
d. Job shop
c. Job shop/Project
What is the best time to increase market share in terms of product life cycle phases?

a. Maturity
b. Decline
c. Growth
d. Introduction
d. Introduction
Which framework studied earlier in the course has the most relevance to process design?

a. Decision analysis
b. Breakeven analysis
c. Scoring models
d. House of quality
d. House of quality
T/F

The general type of process - e.g., job shop, flow shop - influences the best specific process design decisions - e.g., types of equipment..
True
What is the only difference between process mapping and value stream mapping?

a. Value stream mapping covers potential process designs, whereas process maps just cover existing process designs.
b. Value stream mapping covers the entire value chain, whereas process mapping focuses on a single process.
c. Value stream mapping just takes a high-level view of the value chain, whereas process mapping can vary its level of detail.
d. Value stream mapping adds costs and other numeric information to each block in the process map.
d. Value stream mapping adds costs and other numeric information to each block in the process map.
Which of these competitive priorities is most cited as the catalyst to improved overall business performance?

a. Time
b. Cost
c. Innovation
d. Quality
a. Time
How does improving process efficiency directly increase revenue?

a. Improves innovation
b. Lowers costs
c. Makes product more available
d. Improves quality
c. Makes product more available
T/F

In a production system, there will always be at least one workstation that is a bottleneck with respect to throughput.
True