Question 1

Rekky n Brekky is a café where part of its employees' monthly salary depends on customer satisfaction. Eighty percent of the incentive is based on performance and the remaining twenty percent is based on customer satisfaction ratings and the quality of service. In this case, Rekky n Brekky is committed to _____.
A) line-flow production
B) total quality management
C) implementing a just-in-time program
D) internal service quality

Accepted Answer

Rekky n Brekky's commitment to basing part of their employees' salary on customer satisfaction and the quality of service indicates that they are committed to total quality management, which emphasizes the importance of continuous improvement and customer satisfaction. The other options listed are not directly related to this approach to management.

Question 2

Alaya's Secret is a chain of beauty salons, where part of the employees' monthly leaves is granted depending on customer feedback. Two days of leave are granted based on performance and the remaining three days are granted based on customers' feedback on the quality of service. In this case, Alaya's Secret is committed to _____.
A) total quality management
B) line-flow production
C) implementing a just-in-time program
D) internal service quality

Accepted Answer

Alaya's Secret is committed to total quality management by incorporating customer feedback into their employee leave system, which promotes a culture of continuous improvement and emphasizes the importance of meeting customer needs and expectations.

Question 3

In the context of total quality management, _____ is a deviation in the form, condition, or appearance of a product from the quality standard for that product.
A) aberration
B) variation
C) divergence
D) contention

Accepted Answer

Variation refers to any deviation from the quality standard of a product. Aberration and divergence may also indicate a deviation, but they are not commonly used terms in the context of total quality management. Contention refers to a disagreement or dispute, which is not relevant to this context.

Question 4

When customers become dissatisfied with the service they have received, service businesses must switch to the process of _____.
A) service recovery
B) service enhancement
C) service delivery
D) business process reengineering

Accepted Answer

When customers become dissatisfied with the service they have received, service businesses must switch to the process of service recovery, which refers to the actions service providers take in response to service failures to restore customer satisfaction. Service recovery is crucial to retaining customers and maintaining a positive reputation for the business. Service enhancement and service delivery are ongoing processes that ideally occur before service failures, while business process reengineering is a more comprehensive approach to improving overall business performance.

Question 5

In the context of the principles of total quality management (TQM), _____ is an organization's ongoing commitment to constantly assess and refine the processes and procedures used to create products and services.
A) service recovery
B) internal service quality
C) service reliability
D) continuous improvement

Accepted Answer

The principle of continuous improvement is a key aspect of TQM, emphasizing an organization's commitment to continually assessing and improving processes to create better products and services. Service recovery, internal service quality, and service reliability are also important components of TQM, but they do not specifically relate to the ongoing process of improvement.

Question 6

Wyatt Four-Wheel Services is a popular garage, where part of the employees' monthly salary depends on customer satisfaction. Seventy percent of the incentive is based on performance and the remaining thirty percent is based on customer satisfaction ratings and the quality of service. In this case, Wyatt Four-Wheel Services is committed to _____.
A) internal service quality
B) line-flow production
C) mplementing a just-in-time program
D) total quality management

Accepted Answer

Wyatt Four-Wheel Services is committed to total quality management, which focuses on continuously improving the quality of products and services based on customer needs and feedback. The fact that part of the employees' salary depends on customer satisfaction indicates that the company is taking a customer-centered approach to quality management.

Question 7

In the context of the principles of total quality management (TQM), _____ means collaboration between managers and nonmanagers, across business functions, and between companies, customers, and suppliers.
A) responsiveness
B) variation
C) teamwork
D) continuous improvement

Accepted Answer

The principle of teamwork is fundamental to TQM and emphasizes collaboration and mutual respect between all levels of the organization, as well as with external stakeholders such as suppliers and customers. This collaboration allows for a shared understanding of common goals and objectives, as well as the identification and resolution of problems through collective problem-solving efforts.

Question 8

The Cabin Retreat is a chain of hotels where part of its employees' monthly bonus depends on customer satisfaction. Ninety percent of the incentive is based on performance and the remaining ten percent is based on customer satisfaction ratings and the quality of service. In this case, The Cabin Retreat is committed to _____.
A) implementing a just-in-time program
B) line-flow production
C) total quality management
D) internal service quality

Accepted Answer

The Cabin Retreat is committed to total quality management, which involves a focus on continuous improvement of products or services based on customer satisfaction. The inclusion of customer satisfaction in the employees' bonus structure indicates a dedication to improving service quality and meeting customer needs.

Question 9

Woodlander is a chain of resorts where part of the employees' monthly incentives depends on customer satisfaction. Sixty percent of the incentive is based on performance and the remaining forty percent is based on customer satisfaction ratings and the class of service. In this case, Woodlander is committed to _____.
A) total quality management
B) line-flow production
C) implementing a just-in-time program
D) internal service quality

Accepted Answer

Total quality management (TQM) is a management philosophy that emphasizes continuous improvement in all aspects of an organization, including its products and services, production processes, and customer satisfaction. By basing part of their employees' incentives on customer satisfaction, Woodlander is demonstrating a commitment to TQM principles. This helps to ensure that the organization is focused on providing high-quality products and services that satisfy customer needs and expectations.

Question 10

Fit n Fine is a clothing company that is famous for its impressive standards of product quality. Recently, the company introduced a new collection of office wear that failed to grab the attention of its target customer group because of its inconsistent quality. This _____ in quality standard led the company to incur heavy losses.
A) conformity
B) stagnation
C) variation
D) distortion

Accepted Answer

The sentence mentions that the new collection of office wear had an inconsistent quality standard, which means there was a variation in the quality of the products. This variation in quality led to losses for the company. Therefore, the best choice is C, variation.

Question 11

Atrade Foods Inc. is a chain of supermarkets. Eighty percent of its employees' salary is based on earnings, and the remaining 20 percent is based on customer satisfaction ratings and service quality. In this case, Atrade Foods Inc. displays its commitment toward _____.
A) total quality management
B) line-flow production
C) implementing Kanban system
D) dependent demand systems

Accepted Answer

Atrade Foods Inc. displays its commitment toward total quality management by basing 20% of their employees' salary on customer satisfaction ratings and service quality. Total quality management emphasizes the importance of meeting customer expectations and continuously improving the quality of products and services.

Question 12

Bubbles Bath and Body Shop manufactures cosmetic products. Recently, the company manufactured a collection of new organic soaps and shampoos. One batch of the organic soaps was discarded because they were a bit different in size and could not meet the pre-defined quality standards. Which of the following was the main reason for discarding the batch of soaps?
A) Low multifactor productivity
B) Serviceability of the soaps
C) Variation in the soaps
D) Low partial productivity

Accepted Answer

The main reason for discarding the batch of soaps was the variation in size, indicating a lack of consistency in the manufacturing process. This is a quality control issue and is related to variability in the production process. Therefore, option C - variation in the soaps - is the best choice. The other options - low multifactor productivity, serviceability of the soaps, and low partial productivity - are not relevant to the specific issue of inconsistent soap size.

Question 13

A _____ does not start processing or assembling products until it receives a customer request.
A) assemble-to-batch operation
B) make-to-order operation
C) make-to-stock operation
D) assemble-to-order operation

Accepted Answer

A make-to-order operation is a manufacturing process where products are only produced once a specific customer order is received. This is in contrast to a make-to-stock operation, where products are produced ahead of time and stocked in inventory, ready for customers to purchase. An assemble-to-batch operation produces products in batches based on long-term demand forecasts. An assemble-to-order operation starts producing products only after receiving a customer order, but the products are made from pre-made components that are stocked in inventory.

Question 14

Bake Treats is a confectionery that makes cakes for special occasions and delivers them. They use gourmet ingredients while baking and deliver customized treats. In fact, they only start baking once they receive an official request from a customer. It is evident that Bake Treats has adopted a(n) _____.
A) make-to-order operation
B) make-to-stock operation
C) assemble-to-order operation
D) assemble-to-stock operation

Accepted Answer

Bake Treats' process of only starting to bake once they receive an official request from a customer indicates that they have adopted a make-to-order operation. This means that they do not keep stock of pre-made cakes and only produce them when there is demand.

Question 15

Courtney recently ordered a few books online. However, she received the wrong order. She was completely dissatisfied and returned the books. She then wrote to the customer service expressing her anger. In response, the manager of the store sent her an apology via e-mail. He also sent her the books she ordered and refunded her money. Courtney was impressed and ordered books only from that store thereafter. In this scenario, the process adopted by the online store to regain Courtney's trust is called _____.
A) service durability
B) service reliability
C) service recovery
D) service capability

Accepted Answer

The process adopted by the online store to regain Courtney's trust is called service recovery. Service recovery refers to the actions taken by a company to address and resolve a customer's complaint or issue. In this case, the online store apologized, sent the correct order, refunded the money, and ultimately regained the customer's trust. Service durability refers to the ability of a service to withstand time without deteriorating in quality. Service reliability refers to the ability of a service provider to perform their promised service dependably and accurately. Service capability refers to the ability of a company to deliver a specific service.

Question 16

Rodney is a manager at Gordon Publications. He meets his subordinates every week to come up with new ideas for articles to publish in the company's weekly magazine. In this scenario, this collaboration is termed as _____.
A) the service-profit chain
B) teamwork
C) customer focus
D) leadership

Accepted Answer

The collaboration between Rodney and his subordinates to generate ideas for the weekly magazine is an example of teamwork, where individuals work together towards a common goal. The service-profit chain refers to the relationship between profitability, customer loyalty, and employee satisfaction; customer focus is centered on meeting the needs and expectations of customers, and leadership is the ability to guide and direct a team towards a desired outcome.

Question 17

According to total quality management (TQM), which of the following should be a company's primary goal?
A) Reciprocity
B) Distinctive competency
C) Participative management
D) Customer satisfaction

Accepted Answer

TQM emphasizes on satisfying the customer by providing high-quality products and services. Therefore, customer satisfaction should be a company's primary goal to achieve TQM. Options A, B, C are significant in TQM, but they are not the primary goal.

Question 18

Michael ordered a pair of shoes from an e-commerce website. The company sent his order to the wrong address and this confusion delayed the delivery by 10 days. Michael was disappointed by this and stopped ordering shoes from that online store. To regain his trust, the company apologized for the inconvenience and sent him a gift voucher worth $1000 that he could redeem at any e-commerce website. This gesture proved to be fruitful and Michael recommended this e-commerce company to all his friends. The process adopted by the e-commerce company to regain Michael's trust is called _____.
A) service durability
B) service recovery
C) service reliability
D) service capability

Accepted Answer

The process adopted by the e-commerce company to regain Michael's trust is called service recovery. Service recovery refers to a process of regaining customer trust and satisfaction after a service failure or mistake. In this case, the company recognized the mistake, apologized for it, and provided compensation in the form of a gift voucher to regain Michael's trust.

Question 19

Service recovery sometimes requires service employees to:
A) temporarily stop contacting highly dissatisfied customers.
B) permanently pass decision-making authority and responsibility to managers.
C) switch to the process of service delivery.
D) perform heroic service acts that delight highly dissatisfied customers.

Accepted Answer

Service recovery often involves performing a heroic service act that goes above and beyond what the customer expected. This can help to not only resolve the issue at hand but also create a positive relationship with the customer going forward. Option A is incorrect because avoiding contact with dissatisfied customers is not an effective way of resolving their issues. Option B is incorrect because service employees should still have decision-making authority and responsibility when it comes to service recovery, though they may need to consult with managers for guidance. Option C is incorrect because the process of service delivery may have contributed to the customer's dissatisfaction in the first place, and service recovery requires a different approach.

Question 20

According to the service-profit chain, success begins with:
A) autocratic management.
B) a high degree of centralization in service operations.
C) how well management treats employees.
D) the availability of enterprising ideas.

Accepted Answer

According to the service-profit chain, success begins with how well management treats employees as this can lead to higher employee satisfaction, which in turn can result in better customer satisfaction and loyalty, ultimately leading to higher profits. Autocratic management and high degree of centralization can have a negative impact on employee morale and creativity, while the availability of enterprising ideas is dependent on the quality of the workforce and the management's ability to foster a culture of innovation.

Quiz 18: Managing Service and Manufacturing Operations

In the context of total quality management, _____ is a deviation in the form, condition, or appearance of a product from the quality standard for that product.

When customers become dissatisfied with the service they have received, service businesses must switch to the process of _____.

In the context of the principles of total quality management (TQM) , _____ is an organization's ongoing commitment to constantly assess and refine the processes and procedures used to create products and services.

In the context of the principles of total quality management (TQM) , _____ means collaboration between managers and nonmanagers, across business functions, and between companies, customers, and suppliers.

Atrade Foods Inc. is a chain of supermarkets. Eighty percent of its employees' salary is based on earnings, and the remaining 20 percent is based on customer satisfaction ratings and service quality. In this case, Atrade Foods Inc. displays its commitment toward _____.

A _____ does not start processing or assembling products until it receives a customer request.

Rodney is a manager at Gordon Publications. He meets his subordinates every week to come up with new ideas for articles to publish in the company's weekly magazine. In this scenario, this collaboration is termed as _____.

According to total quality management (TQM) , which of the following should be a company's primary goal?

Service recovery sometimes requires service employees to:

According to the service-profit chain, success begins with: