Chapter 18: Managing Service and Manufacturing Operations
TRUE/FALSE
1. Since the Baldrige Award is directly based on ISO 9000 standards, it is essentially a U.S. version of
recognition for excellence in meeting the ISO 9000 standards.
2. It costs ten times as much to find a new customer as it does to keep an existing customer.
3. Inventory is defined as the number of finished products that a company has in its possession either in
the factory, in warehouses, or on delivery vehicles.
MULTIPLE CHOICE
1. The two types of productivity are:
a.
partial productivity and complete productivity
b.
multifactor productivity and partial productivity
c.
individual productivity and departmental productivity
d.
departmental productivity and organizational productivity
e.
organizational productivity and industry productivity
2. 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)
3. A product’s quality is determined by its:
a.
reliability, homogeneity, and durability
b.
reliability, validity, and effectiveness
c.
serviceability, tangibility, and homogeneity
d.
durability, reliability, and serviceability
e.
consistency, tangibility, and durability
4. 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
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. 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
7. 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
8. 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