Question 1

While a conversion process defined by manufacture (or production) yields a tangible output called the product, a conversion process defined by service yields an intangible output.Which forms can this intangible output take?

Accepted Answer

The intangible outputs of a service conversion process can indeed take the forms of activity, action, performance, or effort. These are the ways in which services are often described and experienced, emphasizing the non-physical nature of their outcomes.

Question 2

Which one of the options below IS NOT a characteristic of a good?

Accepted Answer

A good is a physical commodity that can be transferred from one owner to another and is homogenous. However, a characteristic of a good is that it can be stockpiled, so option A is not a characteristic of a good.

Question 3

Which one of the options below IS NOT a characteristic of a service?

Accepted Answer

Tangibility is a characteristic of a physical product, not a service. Services are intangible in nature. The other options listed (process or activity, heterogeneous, simultaneous production, distribution, and consumption) are all characteristics of services.

Question 4

What is the conversion of input into output within an organisation based on?

Accepted Answer

The answer of What is the conversion of input into...

Question 5

Based on many studies, Mullins (2005, 1993) considers organisations to be __________________.

Accepted Answer

Mullins (2005, 1993) considers organisations to be open systems. This means that they interact with and are affected by the environment outside of the organisation. They must adapt and respond to changes in order to survive and thrive.

Question 6

What is the title of the arrow that connects the outputs box to the inputs box in the input-transformation-output model?

Accepted Answer

The arrow connecting the outputs box to the inputs box represents feedback, which is essential in the input-transformation-output model to ensure that the inputs are adjusted based on the outputs received. This helps to improve the overall efficiency and effectiveness of the transformation process. Choice B (Response), C (Reaction), and D (Process) do not accurately reflect the function of this arrow.

Question 7

UnderstandingQUESTION: Different types of operations have been categorised by Slack, Brandon-Jones and Johnston (2013) into four principal dimensions, commonly called the Four Vs of operations. The dimensions seek to answer some basic question.Which V seeks the answer to "how many products or services are made by the operation?"?

Accepted Answer

The dimension of Volume seeks to answer the question of "how many products or services are made by the operation?" It relates to the quantity of output or the scale of production. Therefore, A) Volume is the correct choice.

Question 8

The variation in demand dimension can be easily measured using the peak to trough ratio.What is the peak to trough ratio of a restaurant that operates at full capacity during the busiest period compared to at merely around 25% during its lowest period?

Accepted Answer

The peak to trough ratio is calculated by dividing the peak demand by the lowest demand. In this case, the peak demand is when the restaurant operates at full capacity and the lowest demand is when it is only operating at around 25%. Therefore, the peak to trough ratio is 4:1 (full capacity is four times greater than 25%). Option A is the correct answer.

Question 9

All the process dimensions have implications on the costs of creating products or services depending on whether the specific dimension is high or low.Which dimension, at its low end is well defined, routine, standardised, regular, and with low unit costs?

Accepted Answer

The answer of All the process dimensions have implications on...

Question 10

All the process dimensions have implications on the costs of creating products or services depending on whether the specific dimension is high or low.Which dimension, at its high end leads to high repeatability, specialisation, systemisation, is capital intensive, and with low unit costs?

Accepted Answer

The dimension described in the question is volume, which refers to the level of output or quantity of products or services being produced. High volume allows for specialization, systemization, and repeatability, which leads to lower unit costs. However, high volume also requires significant capital investment, such as large-scale production equipment, which can be costly.

Question 11

All the process dimensions have implications on the costs of creating products or services depending on whether the specific dimension is high or low.Which dimension, at its high end leads to a short waiting tolerance, satisfaction that is governed by customer perception, need for customer contact skills, received variety is high, and high unit costs?

Accepted Answer

Visibility, when high, implies that the process is very open to customer view, leading to short waiting tolerance, satisfaction governed by customer perception, a need for customer contact skills, high received variety, and high unit costs.

Question 12

Performance objectives are the goals an organisation must achieve, selected based on the strategy of the organisation, and influenced by those stakeholders who could have an interest in, or are affected by the operation.Which amongst the broad category of stakeholders will be more concerned about liquidity, contract terms, and equitable business opportunities?

Accepted Answer

Suppliers are more concerned about liquidity, contract terms, and equitable business opportunities because they need to ensure that they can get paid for their goods or services, that the terms of the contract are fair, and that they have a fair chance to compete for business.

Question 13

Many authors have identified the five basic performance objectives applicable to all types of operations as dependability, flexibility, speed as well as____________.

Accepted Answer

The five basic performance objectives applicable to all types of operations are dependability, flexibility, speed, cost, and quality. Therefore, choice A, which includes both cost and quality, is the best answer.

Question 14

The sand cone model of operational excellence of Ferdows and de Meyer (1990) indicates the sequence in which four operational capabilities should be developed. The capabilities are dependability, quality, speed, and cost efficiency.Which operational capability is at the bottom of the model?

Accepted Answer

The sand cone model suggests that quality is the foundational capability upon which other capabilities like dependability, speed, and cost efficiency are built.

Question 15

In the manufacturing product-process matrix, there are five process types. Four of the process types are project, job shop or jobbing, line flow or mass, and continuous.Which is the missing process type?

Accepted Answer

The missing process type is batch. Batch production involves manufacturing products in groups or batches based on specific orders or specifications. This process is commonly used in industries where a certain quantity of products needs to be produced, but not in large enough volumes to justify continuous production.

Question 16

The service-process matrix has been designed for the services industry, and services have been classified into the four categories of professional service, service shop, mass service, and service factory.Based on the degree of labour intensity and customer involvement, which process type is found at the intersection of high customer involvement and high labour intensity?

Accepted Answer

The intersection of high customer involvement and high labour intensity suggests a service that is highly customized and personalized, requiring extensive knowledge and skills from the service provider. This is typical of professional services, such as legal or medical services, where the customer is heavily involved in the service delivery process and there is a high degree of labor intensity. Service shops and mass services involve lower levels of customization and knowledge, while service factories have low levels of customer involvement and are highly standardized.

Question 17

The service-process matrix has been designed for the services industry, and services have been classified into the four categories of professional service, service shop, mass service, and service factory.Based on the degree of capital intensity and customer involvement, which process type is found at the intersection of low customer involvement and low capital intensity?

Accepted Answer

Mass service is found at the intersection of low customer involvement and low capital intensity because it involves standardized services with little customer interaction and requires minimal capital investment.

Question 18

Lovelock and Wirtz (2011) underline the need of service marketers to maintain a holistic view of the entire performance they want their customers to experience; they indicate that the value proposition must integrate three essential components.Which component supplies the central, problem-solving benefit that customers seek?

Accepted Answer

The central, problem-solving benefit that customers seek is provided by the core product, which is the main offering of the service. Supplementary services, delivery processes, and sustaining processes are all important components of the overall service experience, but they do not supply the central benefit that customers are seeking.

Question 19

Lovelock and Wirtz (2011) underline the need of service marketers to maintain a holistic view of the entire performance they want their customers to experience; they indicate that the value proposition must integrate three essential components.Which component facilitates use of the core product and add value and differentiation to the customer's overall experience?

Accepted Answer

This component, also referred to as peripheral services, includes all the additional services that facilitate the use of the core product and add value and differentiation to the customer's overall experience. Examples of supplementary services include delivery, installation, training, maintenance, and customer support. By offering relevant and high-quality supplementary services, service marketers can enhance the perceived value of their offerings, differentiate themselves from competitors, and build long-term relationships with customers.

Question 20

In the flower of service, Lovelock and Wirtz (2011) have split supplementary services into two types - facilitating services, and enhancing services.Which one IS NOT an enhancing service in the options below?

Accepted Answer

Order-taking is considered a facilitating service, not an enhancing service. It is essential for the core service delivery, unlike enhancing services which add value and enrich the customer's experience.

Quiz 11: Conceiving Hospitality Processes