Deck 2: Customer Fulfillment Strategies

Question 1

All of the following are opportunity considerations for businesses to create customer value except________.

A) quality
B) cost
C) flexibility
D) location

Answer 1

location

Question 2

Quality is most often defined by the customer as meeting customer specifications.

Answer 2

False

Question 3

The following are the 5 basic areas of customer value: quality, flexibility, innovation, delivery and cost.

Answer 3

True

Question 4

Customer empowerment means that businesses up and down the supply chain must decrease their ability to deliver value.

Question 5

The real measure of quality is whether or not a product or service lives up to ________expectations.

A) customer
B) design
C) company
D) supply chain

Question 6

One of Garvin's 8 factors that comprise quality as viewed by the customer is reliability. Reliability is defined as ________.

A) the y of the product to be repaired
B) a product or service characteristic where it can be counted upon not to fail
C) how well a product or service matches established specifications
D) the delivery speed of the product or service

Question 7

One of the major characteristics of today's customers is that they are empowered with a broad range of product and pricing information.

Question 8

Identifying specific customer needs and then matching the company's ________to those needs is the key to implementing a successful customer fulfillment strategy.

A) core competencies
B) promises and capabilities
C) delivery
D) synergies

Question 9

Considering a competency-success factor alignment matrix, when customer success factors are high and competencies are high, this condition will most likely result in ________.

A) diminished focus and dissipated capabilities
B) resources expended here are wasted
C) effective alignment results in Profitable Customer Takeaway
D) effort and resources dedicated to non-valued activities result in low customer takeaway

Question 10

_____________ (ESI) is a key element of innovation strategies at industry leaders like Canon, Honda, and 3M.

A) Enterprise source information
B) Early supplier involvement
C) Environmental strategy implementation
D) Export sourcing interface

Question 11

All of the following are the primary reasons why a business's customer service may not fulfill customer needs except ________.

A) the level of service provided is based on the customer's level of value to the business
B) improvements are directed at efforts that add no customer value

Question 12

When managers emphasize efficient operations over appropriate customer satisfaction requirements, discrepancies in service quality can lead to__________.

A) service gaps
B) customer feedback
C) higher operating costs
D) higher fill rate targets

Question 13

One of Garvin's 8 factors that comprise quality as viewed by the customer is serviceability. Serviceability refers to the________.

A) product or service characteristic where it can be counted upon not to fail
B) customer viewed dependability of the product or service
C) speed of repair when quality problems arise
D) the frequency of repair

Question 14

There are four supply chain cost-reduction strategies employed by competent procurement functions as cited in the text. They include (1) productivity enhancement, (2)________, (3) locating facilities in countries with low-cost inputs, and (4) sourcing from the world's most efficient suppliers.

A) placing large quantity purchase orders
B) sourcing from past suppliers
C) adoption of advanced process technology
D) sourcing from local suppliers

Question 15

A major goal of the supply chain manager is to assure that operations creates processes that meet customer needs.

Question 16

Motorola established its 6-sigma quality improvement program more than a decade ago. The numerical value of 6-sigma is _______.

A) 99.98% defect free
B) 3.4 PPM
C) 6 PPM
D) 1000 PPM

Question 17

The term ________ was coined to signify that 15 to 40 percent of a firm's capacity is used to find and fix poor-quality work.

A) Kaizen
B) hidden plant
C) core competency
D) Pareto principle

Question 18

A ________ is something that your company does so well that it provides the business a competitive advantage.

A) Pareto principle
B) customer segmentation
C) fulfillment strategy
D) core competency

Question 19

One of Garvin's 8 factors that comprise quality as viewed by the customer is performance. Performance refers to the ________.

A) primary operating characteristics of the product or service
B) delivery speed of the product or service
C) number of product or service features
D) customer viewed dependability of the product or service

Question 20

Best-in-class companies manage quality and achieve a very low defective parts per million.

Question 21

In well-managed customer-of-choice relationships, information systems of the supplier and customer are linked to enable real-time information exchange on inventory levels, order status, and future demand.

Question 22

The American Customer Satisfaction Index shows that companies have made great progress in recent years in living up to customer expectations.

Question 23

One of the key benefits of "Innovation" is the ability to capture market share.

Question 24

The text suggests that early supplier involvement (ESI) is a key element of innovation strategies of industry leaders. Please explain.

Question 25

Regarding a customer-centric fulfillment strategy, not all customers are equal and they do not all deserve the same high level of service.

Question 26

Six-sigma, the quality level that many companies strive to achieve is quality that is equal to or less than 34 defects per million parts produced.

Question 27

One of the major reasons why customer service in America does not product a high level of customer satisfaction is that many companies claim to be service oriented, but fail to deliver on their promises.

Question 28

Regarding customer relationships, managers need to treat each customer contact as an opportunity to make an unprofitable customer profitable or make a profitable customer more profitable.

Question 29

In order to identify a core competency, two questions should be asked: "What are we known for that makes us uniquely good?" and "What do we do as good as anyone else?"

Question 30

Fast, reliable delivery requires the reduction of order cycle time and the elimination of variability.

Question 31

The text makes the statement "As managers gain knowledge of downstream requirements, they become consultants to their customers." Please explain this statement.

Question 32

Flexibility is a supply chain strategy that is often avoided since it requires increases in capital and people.

Question 33

Identify each of the five areas of customer value and explain how each is important in developing a distinctive advantage with regard to the competition.

Question 34

Customer satisfaction initiatives that focus too much on what has worked in the past leave the supply chain vulnerable to the dynamics and competition of a global marketplace.

Question 35

A typical cost reduction technique employed by a manufacturer is to improve the productivity of their manufacturing processes.

Question 36

Leading companies have found that shared information, the elimination of restrictive work rules, and proactive measurement enable cost, quality, flexibility, delivery, and innovation to work together to move businesses forward to a stronger competitive position.

Question 37

"Performance" refers to the product's mean time between failures and its overall life expectancy.

Question 38

The Pareto principle when applied to sales suggests that about 20 percent of sales area generated by about 80 percent of all customers.

Question 39

Globalization has increased factor mobility and market access, requiring local companies to match the cost position of global rivals who often possess low-cost labor advantages.

Question 40

"Traditional" customer service efforts focus primarily on external service levels and goals.

Question 41

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Identifying specific customer needs and then matching the company's promises and capabilities to those needs is the key to implementing a successful customer strategy.

Question 42

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(CRM) software has increased the sophistication of customer segmentation by incorporating data-capturing, storage, and analysis capabilities to help companies create customer profiles.

Question 43

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-The following are several key steps that are critical to creating a supply chain flexibility culture.
$\bullet$ ________workers and organize work in multifunctional teams.
$\bullet$ Design performance measures to value fast-cycle capabilities.
$\bullet$ Develop information systems to track activities and share information.
The following are the eight attributes developed by Garvin that define product quality:

Question 44

Fill in the Blank(s)
Customer factors are the capabilities that first-tier customers need to satisfy their downstream customers.

Question 45

Identifying specific customer needs and then matching the company's promises and capabilities to those needs is the key to implementing a successful customer fulfillment strategy. Explain in detail a minimum of 3 of those typical customer needs.

Question 46

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Opportunities to deliver customer value occur in five areas: cost, flexibility, delivery, innovation and

Question 47

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Meeting customers' needs better than the competition creates and yields valuable long-term relationships.

Question 48

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A core is something that your company does so well that it provides the company a competitive advantage.

Question 49

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The key to satisfying customers is to understand their .

Question 50

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A method of determining actual costs of a product or process cited in the text as costing ties specific costs directly to the customers that create them.

Question 51

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Customer , the identification of unique groups of customers who possess similar needs, helps managers develop the products and establish the systems needed to fulfill the needs of different customer groups.

Question 52

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Pareto principle suggests that about 80 percent of sales are generated by about percent of all customers.

Question 53

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Customer success strategies consist of (1) a clearly communicated goal to help customers succeed, (2) a clear understanding of downstream requirements, (3) investments in customer-valued capabilities, (4) provided to customers, and (5) resources shared with customers.

Question 54

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-are the "bells and whistles" or extras that distinguish a product from competitors' offerings.

Question 55

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Sourcing, operations, and play key roles in building a delivery capability.

Question 56

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-refers to the primary operating characteristics of the product.

Question 57

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-The following are several key steps that are critical to creating a supply chain flexibility culture.
$\bullet$ Make cycle time a priority throughout the organization.
$\bullet$ Map processes to make them visible.
$\bullet$ ________against customer requirements and competitors' capabilities

Question 58

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When a customer makes a purchase, he/she is buying a set of

Question 59

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Experience has shown that simplifying the operating environment and creating a fluid organizational culture promotes regarding customer value trade-offs.

Question 60

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A negative between customer expectations and customer experience leads to customer dissatisfaction.

Question 61

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-deals with perceptions of fit and finish or artistic value.

Question 62

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-represents the notion that a product can be counted on not to fail.

Question 63

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-refers to the speed of repair when quality problems arise.

Question 64

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-refers to the product's overall life expectancy.

Question 65

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-measures how well a product matches established specifications.

Question 66

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A performance metric used to measure the percent of products ordered that are actually delivered from distribution centers is called the

Question 67

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-deals with overall perceptions of a product or brand's quality reputation.