Question 1

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

Accepted Answer

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

Accepted Answer

Patent applications are a measure of innovation and learning because they indicate the organization's ability to develop new ideas and products. Additionally, the process of filing a patent application requires a significant amount of research and analysis, which reflects the organization's commitment to continually learning and improving.

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

Accepted Answer

Measurement is the act of quantifying the performance of different aspects of a business, including organizational units, products and services, processes, and individuals. It involves collecting data and analyzing it to evaluate how well the organization is doing in achieving its goals and objectives. Forecasting is the process of predicting future outcomes based on past performance, while fulfillment refers to the process of delivering goods or services to customers. Litigating refers to the process of resolving legal disputes in a court of law.

Question 4

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

Accepted Answer

This concept is known as "information leverage," which means that organizations can achieve greater performance with less investment in physical assets by leveraging information and technology. This is because information can help streamline operations, optimize processes, and make better decisions, all of which contribute to improved performance.

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

Accepted Answer

According to research, empathy is a key dimension that customers use to assess service quality. This refers to the extent to which a service provider shows concern and understanding for the customer's needs and emotions. While operational efficiency, flexibility, and queue time are all important factors in service quality, empathy is consistently identified as a top priority for customers.

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

Accepted Answer

Dextron's ability to provide customized laptops suggests that they have design flexibility, meaning they can tailor their products to meet the specific needs of their customers. Options A, C, and D are not applicable to this scenario.

Question 7

_____ measures the degree to which the output of a process meets customer requirements.
A) Learning
B) Innovation
C) Variability
D) Quality

Accepted Answer

Quality is the measure of how well the output of a process meets customer requirements. Learning refers to gaining knowledge or skills, innovation involves the introduction of new ideas or methods, and variability refers to the degree of variation or inconsistency in output.

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

Accepted Answer

Service representative courtesy is a quality performance measure at an operational level because it relates to the behavior and actions of frontline employees who directly interact with customers. Their courtesy can impact customer satisfaction and retention, making it a key indicator of operational performance. The other options listed are also important measures of performance, but they may be better suited for higher-level strategic or financial analysis.

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

Accepted Answer

Corporate ethics and governance fall under the social sustainability aspect of the triple bottom line, which focuses on the company's impact on people, including employees, customers, and communities. Environmental sustainability relates to a company's impact on the planet, economic sustainability considers financial profits and benefits to stakeholders, and political sustainability focuses on a company's impact on policy and government regulations.

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.
$\begin{array} { | l | l | l | } 
\hline \text { Pair of Shoes Produced } & & 150,000 \
\hline \text { Cost Incurred } & \text { Direct Labor Cost } & \$ 60,000 \
\hline & \text { Energy Cost } & \$ 5,800 \
\hline & \text { Raw Material Cost } & \$ 42,000 \
\hline
\end{array}$
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

Accepted Answer

Productivity is calculated as the ratio of output to input. Here, the output is 150,000 pairs of shoes, and the total cost (input) is the sum of direct labor cost, energy cost, and raw material cost, which equals $60,000 + $5,800 + $42,000 = $107,800. Therefore, productivity = 150,000 pairs / $107,800 = 1.39 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

Accepted Answer

Social sustainability is one of the three pillars of the TBL, alongside environmental sustainability and economic sustainability. It includes an organization's impact on the social fabric of the community it operates in, which encompasses ethical considerations such as compliance with labor laws, equal treatment of employees, and adherence to principles of corporate social responsibility. Therefore, the number of ethical violations would be included as one of the indicators of social sustainability. The other choices are not directly related to ethical considerations.

Question 12

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

Accepted Answer

When information replaces assets, the costs decrease as the company no longer needs to invest in physical assets and can rely on digital technologies to manage and store data.

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

Accepted Answer

Sustainability measures refer to actions that organizations take to reduce their impact on the environment, including energy consumption and resource conservation. Option A (operation efficiency measures) concerns processes that help organizations reduce costs and improve productivity, and option D (financial measures) refers to metrics that organizations use to gauge their financial performance. Option B (innovation and learning measures) encompasses actions that organizations take to foster innovation and continuous learning, such as research and development and training programs.

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

Accepted Answer

Supply-chain performance and processing time are measures of operational efficiency, not innovation and learning. The variance around the average time can help identify potential issues, but it is not a direct measure of innovation and learning. The percentage of new products developed is a key measure of innovation and learning, as it reflects the organization's ability to generate new ideas and bring them to market.

Question 15

A paint manufacturing company has three factories located in France, Germany, and Spain. The productivity data of the factories are as follows: 
$\begin{array} { | l | l | l | } 
\hline \text { Factory Location } & \text { Amount of Paint Produced(US Gallons) } & \text { Total Input Cost (USD) } \
\hline \text { Spain } & 4,600,000,000 & \$ 5,250,000 \
\hline \text { Germany } & 5,500,000,000 & \$ 5,250,000 \
\hline \text { France } & 4,000,000,000 & \$ 3,500,000 \
\hline
\end{array}$
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.

Accepted Answer

The answer of A paint manufacturing company has three factories...

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

Accepted Answer

Employee satisfaction is an example of an innovation and learning performance measure. This measure focuses on the internal processes of the organization, specifically on the development of employees and their capacity to learn, innovate, and adapt to change. It reflects the organization's ability to create a culture of continuous improvement, knowledge creation, and teamwork. Flow processing or cycle time (B) and manufacturing yield (C) are examples of operational performance measures, while product-related litigation (D) is an example of a financial performance measure.

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.

Accepted Answer

The answer of Actionable performance measures should be meaningful to...

Question 18

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

Accepted Answer

Interlinking models allow managers to analyze how internal decisions can affect external outcomes, which leads to more objective decision-making.

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

Accepted Answer

Operational efficiency refers to the ability to provide goods and services to customers with minimum waste and maximum utilization of resources. It is the key to achieving cost savings and competitive advantage in business. Volume flexibility, reliability, and sustainability are also important factors but don't necessarily address the issue of waste reduction and resource optimization.

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.

Accepted Answer

It costs three to five times more to acquire a new customer than to keep an existing one. Retention strategies are generally more cost-effective than acquisition strategies.

Quiz 2: Measuring Performance in Operations and Value Chains

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

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

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

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

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

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

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

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

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

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

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

Key measures of innovation and learning include__________.

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

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.

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

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

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.