Question 1

Service experience tends to vary each time because:

Accepted Answer

The human element inherent in providing services leads to variability because different people provide services in different ways, and even the same person can provide services differently at different times.

Question 2

In comparison to manufacturers,service providers require more labor because:

Accepted Answer

Service providers often require more labor because their offerings typically involve a high level of customer contact, necessitating personnel to interact with customers, customize services, and address specific needs or issues in real-time. Unlike manufactured goods, which can be produced in advance and stored, many services are intangible and produced and consumed simultaneously, making direct interaction between the provider and the customer crucial.

Question 3

The output of service providers must be consumed immediately,and only a few services can be saved,stored,resold,or returned.Which characteristic feature of services does this best illustrate?

Accepted Answer

The characteristic feature best illustrated by the statement is the perishability of outputs. Services are often time-dependent and cannot be stored for future use, making them perishable. Unlike physical goods, services cannot be saved, stored, resold, or returned once they have been delivered. This is a key distinction between goods and services.

Question 4

The fact that a haircut given to a customer cannot be exactly the same as a haircut given to another customer relates to the difference between service providers and manufacturers in terms of:

Accepted Answer

Services, unlike manufactured goods, are inherently heterogeneous, meaning each service provided can vary from one instance to another, leading to a lack of uniformity in output. This is why a haircut for one customer cannot be exactly replicated for another.

Question 5

The products of service providers tend to be more customized than those of manufacturers because:

Accepted Answer

Service providers often tailor their offerings to meet the specific needs of different customers, unlike manufacturers who may produce goods in bulk with less customization.

Question 6

ProCar Inc.is a reputed automobile company,and Coral Holidays Inc.is an established chain of travel agencies.How will the two businesses differ from each other?

Accepted Answer

ProCar Inc., being a manufacturing company, has tangible outputs making productivity measurements more straightforward through units produced, efficiency, and quality metrics. In contrast, Coral Holidays Inc., a service company, deals with intangible outputs, making productivity measurement more complex due to the variability in services and customer experiences.

Question 7

A primary reason for using standardization is to:

Accepted Answer

Standardization helps in reducing production costs by minimizing variability and simplifying the manufacturing process, leading to economies of scale.

Question 8

When compared to service providers,the products of manufacturers are typically:

Accepted Answer

Manufacturers typically produce goods that are more uniform in quality and characteristics, as their processes are designed to ensure consistency and standardization in the products they create. This contrasts with services, which can vary greatly depending on the provider and the circumstances of delivery.

Question 9

It can be extremely difficult for service providers to accurately estimate the demand for a service in order to match the right supply of the service because:

Accepted Answer

The perishability of services means they cannot be stored for later use, making it challenging to match supply with fluctuating demand accurately. Unlike goods, services are consumed as they are produced, so any mismatch in supply and demand directly affects service delivery and customer satisfaction.

Question 10

For manufacturers,measuring productivity is fairly straightforward because:

Accepted Answer

Manufacturers typically produce tangible goods, making it easier to measure productivity by quantifying the output in relation to the input.

Question 11

Zedpro Computer Company is determining the demand for a new product and how much consumers are willing to pay for it.For this,Zedpro should best rely on:

Accepted Answer

Marketing research is the most effective method for determining consumer demand and pricing for a new product. It involves collecting, analyzing, and interpreting data about markets, competitors, and consumer preferences, which directly informs product development and pricing strategies.

Question 12

Maple Health Care,a chain of private hospitals and laboratories,finds it difficult to measure the productivity of its staff.Which of the following reasons can be attributed to this problem of service providers?

Accepted Answer

Service productivity measurement is challenging because the requirements can significantly vary from job to job, making standardization and comparison difficult.

Question 13

A consumer electronics company is involved in the process of deciding what new products to manufacture and for what group of customers.Once this has been decided,it will need to determine what processes it will use to make these products as well as the facilities it needs to produce them.These decisions comprise _____.

Accepted Answer

The decisions described involve determining what products to manufacture, for which customer group, and the processes and facilities needed for production. This falls under operations planning, which focuses on the operational aspects of a company, including production processes and facilities management.

Question 14

Which of the following is an advantage of standardization?

Accepted Answer

Standardization streamlines production processes, making them more efficient and faster by reducing the variety of products and components. This efficiency can lead to increased productivity and potentially lower costs.

Question 15

Carbon Devices Inc.is a contract manufacturer of 32GB USB flash drives.All USB devices sold under the brand name Carbon are identical to each other and are of the same quality.This is an example of _____.

Accepted Answer

This is an example of standardization because all USB devices sold under the brand name Carbon are identical to each other and of the same quality, indicating that a consistent and uniform production process is used.

Question 16

Compared to service providers,manufacturers are generally more:

Accepted Answer

Manufacturers are generally more capital-intensive because they rely heavily on machinery and equipment for production, unlike service providers who are more labor-intensive.

Question 17

Tree Moon Hospitality Inc.has a chain of reputed hotels and resorts across the globe.First Care Inc.is a pharmaceutical company known for its breakthrough life-saving drugs.How will the two businesses differ from each other?

Accepted Answer

Tree Moon Hospitality Inc. can customize its services to meet individual customer preferences, whereas First Care Inc. must adhere to strict regulations and standards for drug production, limiting customization.

Question 18

Actual performance of a service provider's product typically occurs:

Accepted Answer

Actual performance of a service typically occurs at the point of consumption, as services are often consumed at the same time they are produced.

Question 19

From the perspective of manufacturers,the term standardization means:

Accepted Answer

Standardization in manufacturing refers to the process of making products or components that are identical and interchangeable. This approach helps in reducing manufacturing costs, improving quality, and ensuring compatibility across different products or systems.

Question 20

Which of the following is true of services and their providers?

Accepted Answer

The quality of the service experience is often significantly influenced by the service contact employee, as their skills, attitude, and behavior can directly affect the customer's perception of the service.

Quiz 8: Managing Service and Manufacturing Operations