Chapter 18: Managing Service and Manufacturing Operations
TRUE/FALSE
1. Two common measures of productivity are extrinsic productivity and intrinsic productivity.
2. The first step in the service-profit chain is external service quality or the quality of treatment that
employees receive from a company’s internal service providers.
MULTIPLE CHOICE
1. Which of the following shows the correct relationship for productivity, outputs, and inputs?
a.
productivity = (inputs/outputs)
b.
productivity = [(inputs outputs)/100]
c.
outputs = (productivity/inputs)
d.
productivity = (outputs/inputs)
e.
inputs = (productivity/outputs)
2. The three principles that characterize TQM are continuous improvement, teamwork, and:
a.
third party certification
b.
delegation
c.
participative management
d.
customer focus and satisfaction
e.
distinctive competence
3. Which of the following is NOT a criterion on which companies are judged when applying for the
Baldrige National Quality Award?
a.
leadership
b.
business results
c.
customer and market focus
d.
competitive advantage
e.
process management
4. __________ is a deviation in the form, condition, or appearance of a product from the quality standard
for that product.
a.
Performance breakdown
b.
Quality underperformance
c.
Aberration
d.
Divergence
e.
Variation
5. The term __________ refers to restoring customer satisfaction to strongly dissatisfied customers.
a.
service recovery
b.
service enhancement
c.
customer focus
d.
customer reengineering
e.
relationship marketing
6. _______ refers to a manufacturing operation that divides manufacturing processes into separate parts
or modules that are combined to create semi-customized products.
a.
Assemble-to-stock
b.
Assemble-to-order
c.
Make-to-order
d.
Make-to-stock
e.
Batch processing
7. Which of the following types of operations are most dependent on the accuracy of sales forecasts?
a.
project manufacturing
b.
assemble-to-order operations
c.
make-to-order operations
d.
buy–to-sell operations
e.
make-to-stock operations
8. Which of the following is the most flexible manufacturing operation?
a.
project manufacturing
b.
continuous-flow production
c.
line-flow production
d.
batch production
e.
job shops
9. The three basic measures of inventory are inventory turnover, average aggregate inventory, and:
a.
inventory depreciation
b.
inventory amortization
c.
weeks of supply
d.
multifactor inventory
e.
speed of obsolescence
10. Downtime and lost efficiency are both examples of:
a.
ordering costs
b.
setup costs
c.
holding costs
d.
stockout costs
e.
depreciation costs