Sample Questions for Chapter 6True/FalseIndicate whether the statement is true or false.____ 1. The decision of what goods and services to offer and how to position them in the marketplace is mainly an operational decision.____ 2. In general, the designs of both goods and services follow a similar path. The critical differences lie in the detailed product and process design phases.____ 3. The design of a customer benefit package !"#$ focuses on the operational choices that the firm must make in order to provide the !"#.____ %. The design of a service cannot be done independently from the process by which the service is delivered.____ &. The process by which the service is created and delivered is, in essence, the service itself.____ '. The design of a manufactured good focuses primarily on its physical characteristics.____ (. )apan*s +enichi Taguchi argued that any variation within the specification limits is e,ually good in terms of ,uality and long-run cost.____ .. /uppose that a manufacturing specification of a dimension is 1.0 0.0&. The permissible range of variation from 0.1& to 1.0& is called the tolerance.____ 1. The 2goal post model2 of conforming to specifications by specifying a nominal dimension and a tolerance is the basis for calculating the Taguchi loss function.____ 10. In the Taguchi loss function, as one deviates further from the target value, the loss increases in a linear fashion.____ 11. 3eliability is formally e4pressed as a probability between 0 and 1.____ 12. 3eliability does not apply to services processes.____ 13. 3edundancy is the use of backup components in a design.____ 1%. 5 parallel system has no redundancy.____ 1&. To find the reliability of a comple4 system, one must first convert the parallel components into e,uivalent series components in order to compute the reliability of the entire system.____ 1'. 6uality function deployment is focused primarily on developing a viable ,uality control plan.____ 1(. !ustomer re,uirements that are e4pressed in the customer*s own language is called the 2voice of the customer.2____ 1.. The roof of the house of ,uality shows the relationship matri4 between customer re,uirements and the technical features.____ 11. #rototype testing is an important step in the initial choice of a customer benefit package.____ 20. /ervice design must be addressed from two perspectivesthe service delivery system and the service encounter.____ 21. The 7ouse of 6uality shows the interrelationships between any pair of technical features.____ 22. 8ailure mode and effects analysis provides a basis for improving designs.____ 23. #roduct simplicity encourages the use of standard parts and components.____ 2%. 9esign for :nvironment 9f:$ is the e4plicit consideration of environmental concerns during the design of goods and services and processes, and include such practices as designing for recycling and disassembly.____ 2&. In designing a service delivery system, good ;ob and process design can usually overcome a poor location.____ 2'. The servicescape refers to the place where a service is located.____ 2(. 5 kiosk at an airport that allows passengers to check their baggage would be an e4ample of a lean servicescape environment.____ 2.. :state planning is an e4ample of a low-contact system.____ 21. 5 service encounter design focuses on the interaction, directly and indirectly, between the service providers$ and the customer.____ 30. 5 check processing operation would be an e4ample of a low-contact system.____ 31. !ustomer contact re,uirements are either technical or behavioral in nature.____ 32. :nsuring that hotel staff at the front desk address a guest by name is an e4ample of a servicescape re,uirement.____ 33. /ervice recovery is the process of correcting a service upset and satisfying the customer.____ 3%. /ervice guarantees provide a reward or compensation as a response to a service upset and are offered to customers after a service upset has occurred.____ 3&. The customer benefit package at