Question 1

Briefly discuss the seven categories of the Malcolm Baldrige National Quality Award.

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Question 2

A guest at Raphael's Italian Restaurant generally spends $150.00 on a meal.Most of Raphael's customers are local and eat at the restaurant twice a month.If the restaurant's margins are 60 percent, and a loyal customer is estimated to be worth $3000, determine the average defection rate.

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Question 3

Consider the following information.
 
a.Which quarter, First or Second, had the higher labor productivity (output quantity per labor dollar input)?
b.Which quarter, First or Second, had the higher material productivity (output quantity per material dollar input)?
c.Which quarter, First or Second, had the higher total productivity (dollar output per total dollar input)?

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a.Which quarter, First...

Question 4

A family rents videos from a local video store.On average, they spend $80.00 a month.The store's contribution margin is 45 percent and the average customer defection is 40 percent.Determine the value of a loyal customer.

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Question 5

A manufacturer of business copier workstations has a 75 percent customer retention rate.Their accounting department estimates the incremental contribution to profit and overhead as 40 percent.Customers purchase the workstations every three years at an average cost of $1,500.00.Determine the average value of a loyal customer.

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Question 6

A manufacturer of paint has two factories located in France and Spain and due to economic conditions must close one of them.The factory productivity data is as follows:

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Question 7

A retail store sells a popular cosmetic called Devine and the store manager was given $300,000 by the corporate office to improve store performance any way she thinks best.The "base case" information is a price of $30 per bottle, a contribution margin of 0.50, a customer defection rate of 20%, and a repurchase frequency of 3 times a year.If these improvement funds could be used to either (a) increase the contribution margin to 0.60 or (b) reduce the customer defection rate to 12% or (c) increase the repurchase frequency to 4 times per year, what is the best way to spend these improvement funds? (Assume all other variables remain at the base case level for each of the three improvement options.) VLC = P*CM*RF*BLC
a.What is the value of a loyal customer (VLC) for improvement option (a)?
b.What is the best way to use the $300,000 in improvement funds?

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Question 8

Using the information provided in the table below, determine the percentage change in productivity from 2009 to 2010.

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Question 9

Provide some examples of criteria that can be used to help select and delete performance measures from an organization's information system.

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Question 10

A retail store sells a popular cosmetic called Devine and the store manager was given $100,000 by the corporate office to improve store performance any way she thinks best.The "base case" information is a price of $30 per bottle, a contribution margin of 0.50, a customer defection rate of 17%, and a repurchase frequency of 3 times a year.If these improvement funds could be used to either increase the contribution margin to 0.58 or reduce the customer defection rate to 15% or increase the repurchase frequency to 4 times per year, what is the best way to spend these funds? (Assume all other variables remain at the base case level for each improvement option.)
You may want to use the table below to help organize your computations and answer.
  Note: BLC is 1/.17 = 5.882 years and 1/.15 = 6.67 years.

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Question 11

Explain the difference between goods quality and service quality, and how they are measured.

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Question 12

Define interlinking.Why is this concept significant?

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Question 13

A computer manufacturer currently has a 15 percent customer defection rate.Their accounting department estimates the incremental contribution to profit and overhead as 30 percent.Customers purchase computers every four years at an average cost of $1,200.00.In an effort to reduce the defection rate, the company is improving both the quality of its computers and its post-sale service.Determine the increase in the average value of a loyal customer if the defection rate drops to 5 percent.

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Question 14

Explain the concepts underlying the service-profit chain model.

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Question 15

Using the information below, determine the productivity (measured as output per dollar input) for the each quarter and calculate the percentage change in productivity.

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Question 16

Describe the five key dimensions of assessing service quality.

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Question 17

A coffee shop's average transaction price is $3, the contribution margin is 60 percent, the typical customer makes a purchase once a week or 52 weeks per year, and management estimates the value of a loyal customer over the buying life cycle as $520.What is the customer defection rate?

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Question 18

Briefly discuss the four performance perspectives of the Balanced Scorecard Model.

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Question 19

Jeff Camm, the president of Biometrics, Inc.has received the following data from his accountant:
  How is productivity changing in Jeff's firm?

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Question 20

Explain the difference between design flexibility and volume flexibility.

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Quiz 3: Measuring Performance in Operations