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have wrestled with a few of them in the course of completing the exercise.
In-Class Use
You should allow enough time in Steps 1 and 2 for students to encounter some problems and/or concerns
about their measures. This time frame will vary per group, but you should probably allow at least fifteen
(15) to twenty (20) minutes.
What are some of the challenges of measuring productivity and quality?
Are these challenges greater for particular types of work?
Which level of measurement and accountability—individual or unit—is most likely to
generate positive results? Why?
What is the impact of productivity and quality systems of measurement and improvement
on workers?
How can firms ensure productivity and quality without overloading workers and/or
fostering unhealthy levels of stress?
Students may recognize a number of challenges of measuring productivity and quality, including: a)
measuring the “right things” (e.g., productivity vs. mere activity level); b) constructing accurate measures
of rather complex outcomes (e.g., innovative diabetes medication); and c) avoiding unintended
Finally, students should recognize that what is measured and rewarded is what will attract worker
attention and motivation. A simple illustration of this might be to ask students how the measurement and
reward information found in a class syllabus tends to steer their attention and motivation. For example,
suppose you are taking two summer courses—a History course and a Sociology course. On the first day
Develop Your Career Potential
TAKE A FACTORY TOUR
Purpose
The purpose of this assignment is to give students an opportunity to realize the detail and level of
complexity involved in running a factory.
Setting It Up
It’s my experience that most students have never visited a factory and have no idea what is required to
make and deliver even the most mundane products (i.e., butter, milk, or bread, much less automobiles).
Questions
Students’ answers will vary according to their experiences.
1. What steps or procedures does the company take to ensure the quality of its products?
2. How does the company measure productivity, and how does its productivity compare to others in the
industry?
Reel to Real – Biz Flix
Because they are so short, the Biz Flix videos are best used to supplement your lesson plans. They are
designed to illustrate the content rather than convey all of the chapter concepts.
Video: In Bruges
Segment Summary:
The tagline for the award-winning 2008 film, In Bruges was “Shoot first. Sightsee later.” That’s because
it’s the story of two hitmen – Ray (Colin Farrell) and Ken (Brandon Gleeson) – who tragically botch the
Discussion Questions from Text:
1. Ken is the customer and the ticket seller responds to him as a customer. Do you perceive the ticket
seller as having a customer focus as emphasized in this chapter? Why or why not?
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A customer focus is an organizational goal to concentrate on meeting customers’ needs at all levels of
2. As you were watching the ticket seller interact with Ken and Harry in the second part of this video,
did you predict that his customer approach could result in negative results for him? Why or why not?
Those that predict that the ticket seller’s customer approach would result in negative effects may
3. These scenes offer a lesson in customer focus. What did the ticket seller fail to understand about his
customers? Could he have handled the situations better?
Organizational success and profitability depends on how well employees deliver their services to
Additional Discussion Questions:
1. Following the incident in the scene, how could the ticket seller’s employer implement a
commitment to continuous improvement for all employees that interact with customers?
Continuous improvement is an ongoing commitment to increase product and service quality by
constantly assessing and improving the processes and procedures used to create those products and
2. Identify some components of internal service quality that the ticket seller’s company should focus
on to strengthen its service-profit chain.
The key concept behind the service-profit chain is internal service quality, meaning the quality of
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Reel to Real – Management Workplace
Management Workplace videos can support several in-class uses. In most cases you can build an entire
50-minute class around them. Alternatively, they can provide a springboard into a group lesson plan. The
Management Workplace video for Chapter 18 would be a nice companion to your introduction to the
course on the first day teaching this chapter.
Video: Barcelona Restaurant Group
Managing Service and Manufacturing Operations
Summary:
At Barcelona Restaurant Group, quality is defined not just by the food, but by the service that the
waitstaff delivers. The company’s restaurants are renowned for providing a personal touch to diners. And
Discussion Questions from Text:
1. How does Barcelona Restaurant Group’s approach to customer service fulfill the quality-related
characteristics of services?
As described in the chapter, there are five characteristics that distinguish a quality service:
reliability, tangibles, responsiveness, assurance, and empathy. Barcelona strives for service
2. How does Barcelona Restaurant Group’s approach to customer service fulfill the three aspects of
Total Quality Management?
The three principles of TQM are customer focus, continuous improvement, teamwork. Customer
focus is reflected in Barcelona’s near-singular focus on customer satisfaction. A significant
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Workplace Video Quiz
Video Segment 1
Video segment title
Managing Quality and Performance
Start time (in sec)
0:00
Stop time (in sec)
2:46
Quiz Question 1
According to Andy Pforzheimer, most restaurants could be successful if
they knew how to:
Option a
Maintain service reliaibility
Option b
Maximize tips
Option c
Print flashy menus
Option d
Decrease caloric intake
Correct option
a: maintain service reliability
Feedback for option a
Correct. According to Pforzheimer, most restaurants fail because they
don’t have a clue as to how to consistently perform a service well.
Feedback for option b
Incorrect. According to Pforzheimer, most restaurants fail because they
don’t have a clue as to how to consistently perform a service well.
Feedback for option c
Incorrect. According to Pforzheimer, most restaurants fail because they
don’t have a clue as to how to consistently perform a service well.
Feedback for option d
Incorrect. According to Pforzheimer, most restaurants fail because they
don’t have a clue as to how to consistently perform a service well.
Quiz Question 2
To Andy Pforzheimer, the most important factor in judging the success or
failure of his restaurants is:
Option a
Speed
Option b
Inventory
Option c
Quality
Option d
Flexibility
Correct option
c: quality
Feedback for option a
Incorrect. As Pforzheimer states, all resources of the company are directed
Feedback for option b
Incorrect. As Pforzheimer states, all resources of the company are directed
Feedback for option c
Correct. As Pforzheimer states, all resources of the company are directed
Feedback for option d
Incorrect. As Pforzheimer states, all resources of the company are directed
Quiz Question 3
As a service provider, which of the following quality-related characteristic
would Barcelona Restaurant Group not be interested in?
Option a
Tangibles
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Option b
Assurance
Option c
Responsiveness
Option d
Serviceability
Correct option
d: serviceability
Video Segment 2
Video segment title
Managing Quality and Performance
Start time (in sec)
2:47
Stop time (in sec)
5:00
Quiz Question 1
The team’s discussion of calculating food costs and setting the correct
prices reflects a desire for:
Option a
Variation
Option b
Continuous improvement
Option c
Customer focus
Option d
Tangibles
Correct option
b: continuous improvement
Feedback for option a
Incorrect.
Feedback for option c
Incorrect.
Feedback for option d
Incorrect.
Quiz Question 2
How do the weekly Wednesday meetings reflect Barcelona’s commitment
to teamwork?
Option a
Managers and chefs are asked to criticize each other’s performance
Option b
Managers and chefs are told what to do by company leaders
Option d
Managers and chefs focus on improving only their restaurant
Feedback for option a
Incorrect.
Feedback for option b
Incorrect.
Feedback for option c
Correct.
Feedback for option d
Incorrect.
Quiz Question 3
A customer leaves negative comments about her experience at one of the
Barcelona’s restaurants, noting that her waiter took too long to deliver her
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meal. This reflects an absence of:
Option a
Tangibles
Option b
Empathy
Option c
Assurance
Video Segment 3
Video segment title
Managing Quality and Performance
Start time (in sec)
5:00
Stop time (in sec)
7:11
Quiz Question 1
High value service not only lead to satisfied customers, but also to:
Option a
Long-term profits
Option b
Customer loyalty
Option c
Long-term growth
Option d
All of the above.
Correct option
d: all of the above.
customer satisfaction and customer loyalty, which in turn lead to long-term
profit and growth.
Feedback for option b
Incorrect. According to the service-profit chain, high-value service leads to
customer satisfaction and customer loyalty, which in turn lead to long-term
profit and growth.
Feedback for option c
customer satisfaction and customer loyalty, which in turn lead to long-term
Incorrect. According to the service-profit chain, high-value service leads to
Quiz Question 2
Actions that Barcelona staff would take in order to please a disappointed
customer would qualify as:
Option a
Serviceability
Option b
Service recovery
Option c
Service specials
Correct option
b: service recovery
Option d
Responsiveness
Correct option
d: Responsiveness
Incorrect. Responsiveness is the promptness and willingness with which
Incorrect. Responsiveness is the promptness and willingness with which
Incorrect. Responsiveness is the promptness and willingness with which
Correct. Responsiveness is the promptness and willingness with which
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Feedback for option b
Correct. Service recovery is the action of restoring customer satisfaction to
strongly dissatisfied customers.
Quiz Question 3
Andy Pforzheimer says that company chefs are not given bonuses so that
they can concentrate on delivering great food to customers without
worrying about saving every last penny. This action reflects a commitment
to:
Option a
Customer relations
Option b
Customer continuity
Option c
Customer focus
Option d
Customer defection
Correct option
c: customer focus
Feedback for option a
Incorrect. Customer focus means that the entire organization is focused on
meeting customers’ needs.
Feedback for option b
Incorrect. Customer focus means that the entire organization is focused on
meeting customers’ needs.
Feedback for option c
Correct. Customer focus means that the entire organization is focused on
meeting customers’ needs.
Review Questions
1. What is productivity and why does it matter?
Productivity is a measure of performance that indicates how many inputs it takes to produce or
create an output. Productivity matters because higher productivity can result in:
2. Explain the difference between partial and multifactor productivity.
Productivity is a measure of how many inputs it takes to produce or create an output. The greater the
output from one input, or the fewer inputs it takes to create an output, the higher the productivity.
3. How are quality-related characteristics different for products and services?
Quality can mean a product or service free of deficiencies or the characteristics of a product or
4. Compare ISO 9000 to the Baldrige National Quality Award.
ISO 9000 is a series of five international standards, from ISO 9000 to ISO 9004, for achieving
consistency in quality management and quality assurance in companies throughout the world. ISO
helps requires companies to establish quality processes appropriate to their industry and then audits
5. Discuss the elements of total quality management.
Total quality management (TQM) is an integrated, principle-based, organization-wide strategy for
6. What role does the service-profit chain play in customer satisfaction and company profitability?
The service-profit chain is a chain of events that leads a quality service organization to profit and
growth. The first step in the service-profit chain is internal service quality, meaning the quality of
7. Describe two ways to categorize manufacturing operations.
Manufacturing operations can be classified in one of two ways: according to the amount of processing
or assembly that occurs after receiving an order from customers; or in terms of flexibility. There are
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8. What is inventory and how is it typically measured?
Inventory is the amount and number of raw materials, parts, and finished products that a company
9. Discuss the costs associated with maintaining inventories.
Maintaining an inventory incurs four kinds of costs: ordering, setup, holding, and stockout. Ordering
cost is not the cost of the inventory itself, but the costs associated with ordering the inventory. It
includes the costs of completing paperwork, manually entering data into a computer, making phone
10. List and describe the systems organizations can use to manage their inventory. What factor
determines which system to use?
Inventory management has two basic goals. The first is to avoid running out of stock and angering
and dissatisfying customers. Consequently, this goal seeks to increase inventory levels to a “safe”
level that won’t risk stockouts. The second is to efficiently reduce inventory levels and costs as much
To decide which inventory management system is most appropriate, managers must first
determine whether the products they are working with are part of an independent or dependent
demand system. In independent demand systems, the level of one kind of inventory does not depend
Additional Assignments and Activities
Out-of-Class Project: “Quality Service.” Divide the class into small groups. Have each group select a
type of retailer that it wants to research (such as deep-discount stores or computer stores) and visit at least
In–Class Activity: “Service–Profit Chain.” Divide the class into small groups (3-4 students). Each group
should review the service-profit chain and describe how to apply each step of the chain by using your
college as an example. Discuss the results in class.
Baldrige National Quality Award. Go to the Web site of the Baldrige National Quality Award at
used by different companies. Contrast and compare the systems in a three-page paper.
Customer Service Web Site. Use the Internet to search for a company that is well known for its
customer service. A good idea is to look for e-commerce sites – such as Amazon.com – and review the
Web site. How is the Web site set up to deliver good service? What are the characteristics of quality e-
commerce service? How would these be different from that of a traditional business that does not engage
in e-commerce?