Question 1

The two types of productivity are:&#10;A) partial productivity and complete productivity&#10;B) multifactor productivity and partial productivity&#10;C) individual productivity and departmental productivity&#10;D) departmental productivity and organizational productivity&#10;E) organizational productivity and industry productivity

Accepted Answer

Multifactor productivity involves measuring the output relative to multiple inputs, while partial productivity measures output relative to a single input. These two types of productivity are commonly used in analyzing different aspects of a business or organization's productivity. The other answer choices do not accurately describe the two main types of productivity.

Question 2

A product's quality is determined by its:&#10;A) reliability, homogeneity, and durability&#10;B) reliability, validity, and effectiveness&#10;C) serviceability, tangibility, and homogeneity&#10;D) durability, reliability, and serviceability&#10;E) consistency, tangibility, and durability

Accepted Answer

The product's quality depends on its durability, reliability, and serviceability. Durability refers to the product's ability to withstand wear and tear, reliability refers to its consistency in performance, and serviceability refers to the ease with which it can be serviced or repaired if it fails. These factors are critical to determining the product's overall quality.

Question 3

The term _______refers to restoring customer satisfaction to strongly dissatisfied customers.&#10;A) service recovery&#10;B) service enhancement&#10;C) customer focus&#10;D) customer reengineering&#10;E) relationship marketing

Accepted Answer

Service recovery specifically refers to addressing and resolving issues that have caused strongly dissatisfied customers, in order to restore their satisfaction and loyalty.

Question 4

Inventory is defined as the number of finished products that a company has in its possession either in the factory, in warehouses, or on delivery vehicles.

Accepted Answer

Inventory is the amount and number of raw materials, parts, and finished products that a company has in its possession.

Question 5

The three basic measures of inventory are inventory turnover, average aggregate inventory, and:&#10;A) inventory depreciation&#10;B) inventory amortization&#10;C) weeks of supply&#10;D) multifactor inventory&#10;E) speed of obsolescence

Accepted Answer

The other options (A, B, D, E) are not commonly used measures of inventory. Weeks of supply is a standard measure calculated by dividing the average aggregate inventory by the average weekly demand. It is a useful measure for determining the amount of time inventory will last and can help businesses plan for future inventory needs.

Question 6

When a manufacturer makes a product continuously, it is using:&#10;A) project manufacturing&#10;B) continuous-flow production&#10;C) line-flow production&#10;D) batch production&#10;E) job shops

Accepted Answer

Continuous-flow production is a manufacturing process that produces a product continuously without interruption, such as assembly lines. This method is commonly used in industries such as chemicals, oil and gas, and food processing.

Question 7

Which of the following shows the correct relationship for productivity, outputs, and inputs?&#10;A) productivity = (inputs/outputs)&#10;B) productivity = [(inputs $x$ outputs)/100]&#10;C) outputs = (productivity/inputs)&#10;D) productivity = (outputs/inputs)&#10;E) inputs = (productivity/outputs)

Accepted Answer

Productivity is defined as the ratio of outputs to inputs, so the correct relationship is productivity = (outputs/inputs).

Question 8

The three principles that characterize TQM are continuous improvement, teamwork, and:&#10;A) third party certification&#10;B) delegation&#10;C) participative management&#10;D) customer focus and satisfaction&#10;E) distinctive competence

Accepted Answer

The third principle that characterizes TQM is the focus on customer satisfaction and meeting their needs and expectations. This is achieved by incorporating their feedback into the quality improvement process and ensuring that the organization is constantly striving to provide the highest level of value to its customers. Participative management, delegation, and distinctive competence may be important components of TQM, but they are not core principles. Third party certification may be a tool for implementing TQM, but it is not a principle in and of itself.

Question 9

Which of the following types of operations are most dependent on the accuracy of sales forecasts?&#10;A) project manufacturing&#10;B) assemble-to-order operations&#10;C) make-to-order operations&#10;D) buy-to-sell operations&#10;E) make-to-stock operations

Accepted Answer

With this method, products are made before orders are received.

Question 10

It costs ten times as much to find a new customer as it does to keep an existing customer.

Accepted Answer

Studies have shown that it can cost up to ten times more to find a new customer than to retain an existing one due to marketing and advertising costs, sales commissions, and other expenses associated with trying to attract new customers. Therefore, it makes good business sense to focus on building long-term relationships with existing customers.

Deck 17: Section 2: Managing Information