Deck 2: Measuring Performance in Operations and Value Chains

Question 1

Quality measures the degree to which the output of a process conforms to the management's expectations and requirements.

Answer 1

False

Question 2

In the context of the types of performance measures, which of the following is a measure of innovation and learning

A) Patent applications
B) Employee retention
C) Product recalls
D) Labor productivity

Answer 2

Patent applications

Question 3

_____ is the act of quantifying the performance of organizational units, goods and services, processes, people, and other business activities.

A) Measurement
B) Forecasting
C) Fulfillment
D) Litigating

Answer 3

Measurement

Question 4

In the context of the value chain model, fewer resources are needed to achieve performance goals when "information replaces assets."

Question 5

According to research, which of the following is a key dimension that customers use to assess service quality

A) Operational efficiency
B) Flexibility
C) Empathy
D) Queue time

Question 6

Dextron, a privately owned computer technology company, provides a wide range of customized laptops to suit the needs of students, corporate professionals, and small business owners. In this case, Dextron's ability to provide a wide range of customized laptops to suit its customers' needs best describes _____.

A) volume flexibility
B) design flexibility
C) budget variance
D) manufacturing yield

Question 7

_____ measures the degree to which the output of a process meets customer requirements.

A) Learning
B) Innovation
C) Variability
D) Quality

Question 8

Which of the following is a quality performance measure at an operational level

A) Customer ratings of goods and services
B) Customer retention
C) Service representative courtesy
D) Product recalls

Question 9

In the context of the triple bottom line,__________measures include corporate ethics and governance.

A) environmental sustainability
B) social sustainability
C) economic sustainability
D) political sustainability

Question 10

The table below shows the data for the number of pair of shoes produced and the cost incurred by Fancy Trends Inc. for the year 2015.
Based on the given data, the productivity of Fancy Trends Inc. for the year 2015 is _____.

A) 1 pair/USD
B) 1.39 pairs/USD
C) 2 pairs/USD
D) 2.46 pairs/USD

Question 11

In the context of the triple bottom line (TBL), which of the following measures includes the number of ethical violations

A) Responsiveness
B) Service quality
C) Social sustainability
D) Customer retention rate

Question 12

In the context of the value chain model, when "information replaces assets," the costs increase.

Question 13

_____ include environmental measures such as energy consumption and recycling and other resource conservation activities.

A) Operation efficiency measures
B) Innovation and learning measures
C) Sustainability measures
D) Financial measures

Question 14

Key measures of innovation and learning include__________.

A) supply-chain performance
B) processing time
C) percentage of new products developed
D) the variance around the average time

Question 15

A paint manufacturing company has three factories located in France, Germany, and Spain. The productivity data of the factories are as follows: Based on the productivity analysis of all the factories, the productivity of the factory in:

A) Germany is lower than that of the factory in Spain.
B) Spain is higher than that of the factory in France.
C) France is higher than that of the factory in Spain.
D) France is lower than that of the factory in Germany.

Question 16

In the context of the scope of business and operations performance measurement, which of the following measures is an example of an innovation and learning performance measure

A) Employee satisfaction
B) Flow processing or cycle time
C) Manufacturing yield
D) Product-related litigation

Question 17

Actionable performance measures should be meaningful to a company's management and should provide the basis for decisions at the strategic level in an organization.

Question 18

With interlinking models, managers can objectively make internal decisions that impact external outcomes.

Question 19

_____ is the ability to provide goods and services to customers with minimum waste and maximum utilization of resources.

A) Operational efficiency
B) Volume flexibility
C) Reliability
D) Sustainability

Question 20

In the context of the analytics in operations management, it costs three to five times more to keep an existing customer than acquire a new customer.

Question 21

Which of the following is a financial performance measure at an organizational level

A) Cost of quality
B) Revenue and profit
C) Budget variance
D) Labor and material costs

Question 22

Measures of__________focus on an organization's people and infrastructure.

A) goods and service design flexibility
B) customer and market
C) service quality
D) innovation and learning

Question 23

The__________is based on a set of cause-and-effect linkages between internal and external performance, and in this fashion, defines the key performance measurements on which service-based firms should focus.

A) Service-Profit Chain model
B) value chain model
C) balanced scorecard
D) Malcolm Baldrige Performance Excellence program

Question 24

__________is the willingness to help customers and provide prompt recovery to service upsets.

A) Responsiveness
B) Empathy
C) Assurance
D) Reliability

Question 25

Which of the following performance perspectives in the balanced scorecard model includes the percent of sale from new goods and services

A) The financial perspective
B) The innovation perspective
C) The learning perspective
D) The customer perspective

Question 26

The quantitative modeling of cause-and-effect relationships between external and internal performance criteria is called__________.

A) productivity
B) operational efficiency
C) interlinking
D) sustainability

Question 27

_____ is the ratio of the output of a process to the input.

A) Productivity
B) Flexibility
C) Variability
D) Reliability

Question 28

Which of the following performance perspectives in the balanced scorecard model measures the ultimate value that a business provides to its shareholders

A) The financial perspective
B) The internal perspective
C) The learning perspective
D) The customer perspective

Question 29

Which of the following performance perspectives in the balanced scorecard model includes measures such as productivity, flow time, and asset utilization

A) The financial perspective
B) The customer perspective
C) The innovation and learning perspective
D) The internal perspective

Question 30

The innovation and learning perspective in the balanced scorecard model includes measures such as:

A) return on investment, economic value added, and shareholder value.
B) number of cooperative customer-company design initiatives and percent of sale from new services.
C) training hours per employee, hiring process effectiveness, and revenue per employee.
D) service-quality levels, design and demand flexibility, and asset utilization.

Question 31

In an assembly line of a factory that makes gears, it takes fifteen minutes to complete a drilling operation using a lathe. The duration of this operation is called _____.

A) delay time
B) queue time
C) processing time
D) standard time

Question 32

The time required to ramp up to an increased production output level in response to a surge in the sales of a product is a measure of _____.

A) budget variance
B) volume flexibility
C) product recalls
D) service upset

Question 33

In the context of the triple bottom line (TBL), which of the following is a performance measure of economic sustainability

A) Fines for environmental violations
B) Corporate ethics and governance
C) Revenue from new goods and services
D) Measures of perceived value

Question 34

The ability of an organization to respond quickly to changes in the quantity and type of demand is called _____.

A) utility
B) reliability
C) demand variability
D) volume flexibility

Question 35

Airline revenue per passenger mile and hotel revenue per full-time employee are examples of _____.

A) reliability measures
B) flexibility measures
C) sustainability measures
D) productivity measures