Sample Questions for Chapter 3True/FalseIndicate whether the statement is true or false.____ 1. Having a large number of performance measures is much better than having a selected few.____ 2. Measuring and reporting performance results can be a motivator for many workers.____ 3. The only important measurement category in business is financial.____ . !eturn on assets would normally be classified as a productivity measure.____ ". #ood customer satisfaction measurement systems are designed to provide information about future buying behavior.____ $. %uality measures the degree to which the output of a process conforms to management&s e'pectations and re(uirements.____ ). *ervice (uality measures are generally based on data collected from observing front+line operations.____ ,. !eliability is the ability to perform a service dependably and accurately.____ -. .ssurance is the willingness to help customers and provide prompt recovery to service upsets.____ 1/. 0mpathy is the caring attitude and individuali1ed attention provided to customers.____ 11. Measures and indicators of product and service performance that have a strong correlation with customer satisfaction are appropriate to monitor.____ 12. Most of the five dimensions of service (uality pertain to behavioral characteristics2 which makes them easier to measure.____ 13. 0rrors in service creation and delivery are sometimes called service upsets.____ 1. *peed is usually measured in clock time2 whereas reliability of a time+based measure is usually measured in (uantifying the variances in average performances or targets.____ 1". %ueue time is a fancy term for service time variance.____ 1$. Having intensive care nurses on call in case of a dramatic increase in patient demand is an e'ample of design fle'ibility.____ 1). 3esign fle'ibility is the ability to respond (uickly to changes in the volume and type of demand.____ 1,. 4roductivity is more closely related to effectiveness than efficiency.____ 1-. .s output decreases for a constant level of input2 productivity also decreases.____ 2/. 5t costs 3 to " times more to keep an e'isting customer than to ac(uire a new customer.____ 21. The 6value of a loyal customer6 links customer satisfaction and loyalty to a firm&s profitability measures.____ 22. .ny measure a firm chooses to use should provide the basis for making e'ecutive+level strategic decisions.____ 23. Health care and educational organi1ations were eligible for the Malcolm 7aldrige 8ational %uality .ward since its inception in 1-,).____ 2. .lthough the award from the Malcolm 7aldrige 8ational %uality .ward 9ramework receives the most attention2 the primary purpose of the program is to provide a framework for performance e'cellence through self+assessment to understand an organi1ation&s strengths and weaknesses2 thereby setting priorities for improvement.____ 2". 5n the 7aldrige .ward criteria2 the 7usiness !esults category focuses on how an organi1ation selects2 gathers2 analy1es2 manages2 and improves its data2 information2 and knowledge assets.____ 2$. The :eadership category of the 7aldrige criteria includes how an organi1ation addresses its public and community responsibilities.____ 2). 0mployee satisfaction might be considered as a lagging indicator of employee turnover.____ 2,. The balanced scorecard is designed to be linked to an organi1ation&s strategy.____ 2-. The balanced scorecard model uses the same categories as the 7aldrige .ward.____ 3/. The value chain model is probably the dominant model for operations managers.____ 31. The service+profit chain model is based on understanding cause+and+effect linkages among performance measures.____ 32. The (uote 6Happy employees create happy customers6 best characteri1es the *ervice+4rofit ;hain hich one of the following statements is true with regard to the case study 7ank?*.@ ;redit ;ard 3ivisionAa. *ervice upsets represented 1) percent of total transactions.b. ;urrent performance reports indicate that the credit card division is meeting --.2 percent of its service re(uirements.c. The correlation between customer satisfaction and operating costs was negatively correlated.d. The ultimate hich of the following is trueAa. The theory of the 7alanced *corecard model of performance is leadership drives the operating system that creates business results.b. The *ervice+4rofit ;hain focuses on learning2 internal business2 customers2 and financial performance.c. Bolume fle'ibility allows the firm to change their learning behavior of employees as conditions change.d. 5n the 7ank?*.@ ;redit ;ard 3ivision case study internal and e'ternal performance was negatively correlated.____ 3". The triple bottom line orkforce 9ocusc. ;ustomer 9ocusd. Measurement2 .nalysis and Enowledge Management____ "2. >hich category of the Malcolm 7aldrige 8ational %uality .ward e'amines how the organi1ation fulfills its ethical2 legal2 and societal responsibilities2 and supports its key communitiesAa. :eadershipb. *trategic 4lanningc. ;ustomer 9ocusd. !esults____ "3. Df the four performance perspectives of the balanced scorecard model2 which is most relevant to operations managersAa. financialb. customerc. innovation and learningd. internal____ ". 0mployee satisfaction and other workforce+related measures fall into which perspective in the 7alanced *corecardAa. 9inancialb. ;ustomerc. 5nnovation and :earningd. 5nternal____ "". 5n regard to the value chain model2 efficiency2 cost and cycle time would be most related toa. suppliersb. inputsc. value creation processesd. outputs and outcomes____ "$. Balue chain measures would generally be less valuable toa. top managementb. middle managersc. first+line supervisorsd. employees to monitor any control____ "). The service+profit chain modela. is based on a set of cause+and+effect linkagesb. is only focused on internal performancec. was designed first for manufacturing organi1ationsd. is focused on e(uipment utili1ation____ ",. !egarding the service+profit chain model2 which of the following is not viewed as internal performanceAa. customer satisfactionb. employee satisfactionc. employee retentiond. employee productivity____ "-. >hich one of the following statements is true regarding 9ed0'&s *ervice %uality 5ndicator