Question 1

The ____________ of a maker of cloth dolls would include over 200 yards of fabric, 100 yards of ribbon, a box of 500 wiggle eyes, stuffing, 20 dolls in various stages of completion, and 15 completed dolls.
A) raw materials
B) component materials
C) finished products
D) inventory
E) SKUs

Accepted Answer

Inventory is the amount and number of raw materials, parts, and finished products that a company has in its possession.

Question 2

The term____________  refers to restoring customer satisfaction to strongly dissatisfied customers.
A) service recovery
B) service enhancement
C) customer focus
D) customer reengineering
E) relationship marketing

Accepted Answer

Service recovery is the term used to describe the process of restoring customer satisfaction after a service failure or complaint. This typically involves addressing the complaint or issue, offering some form of compensation or apology, and making efforts to ensure that the problem does not happen again in the future. Service recovery is a key aspect of customer service, as it can help to retain customers who might otherwise leave as a result of a negative experience.

Question 3

Which of the following is a specific component of internal service quality?
A) MBO
B) high value service
C) delegation
D) autonomy
E) span of management

Accepted Answer

High value service is a specific component of internal service quality, as it refers to the level of service provided to internal customers within an organization. MBO (Management by Objectives), delegation, autonomy, and span of management are not specific components of internal service quality.

Question 4

Pamela Katian makes cloth dolls, which she sells to friends and relatives. Her total inventory includes over 200 yards of fabric, 100 yards of ribbon, a box of 500 eyes, stuffing, 20 dolls in various stages of completion, and 15 completed dolls. How many items are in Katian's work-in-process inventory?
A) 100
B) 200
C) 15
D) 20
E) cannot tell from information given

Accepted Answer

Work-in-process inventory refers to partially finished goods consisting of assembled component parts.

Question 5

The first step in the service-profit chain is the establishment of____________  .
A) employee satisfaction
B) service capability
C) internal service quality
D) high value service
E) nonmonetary rewards

Accepted Answer

The first step in the service-profit chain is the establishment of internal service quality, which refers to creating a positive work environment and supporting employees to enable them to provide high-quality service to customers. Employee satisfaction, service capability, high value service, and nonmonetary rewards all come later in the service-profit chain and are influenced by internal service quality.

Question 6

Continuous improvement is typically associated with____________  .
A) low morale and reduced customer satisfaction
B) a reduction in variation and higher customer satisfaction
C) batch processing and a broad chain of command
D) a flat organizational structure and a broad chain of command
E) higher customer satisfaction and a narrower chain of command

Accepted Answer

Variation is a deviation in the form, condition, or appearance of a product from the quality standard for that product.

Question 7

____________ refers to a manufacturing operation that divides manufacturing processes into separate parts or modules that are combined to create semi-customized products.
A) Assemble-to-stock
B) Assemble-to-order
C) Make-to-order
D) Make-to-stock
E) Batch processing

Accepted Answer

Assemble-to-order refers to a manufacturing process where pre-manufactured components or modules are assembled only after the customer orders them, allowing for semi-customized products.

Question 8

One of the key assumptions in the service business is that success depends on how well employees deliver their services to customers. However, according to the service-profit chain, success depends on ____________ .
A) the availability of factors of production
B) autocratic management
C) a high degree of centralization
D) how well employees are treated
E) market size

Accepted Answer

The service-profit chain model suggests that success in service business depends on how well employees are treated. This includes providing training and development opportunities, fair compensation, and a supportive work environment, which in turn leads to increased employee satisfaction, loyalty, and motivation. This employee satisfaction ultimately results in improved service quality, customer satisfaction, and overall financial performance. Factors of production (A), autocratic management (B), and high degree of centralization (C) are not specific to the service business and do not directly impact the service-profit chain model. Market size (E) may be a contributing factor but it is not the main driver of success according to this model.

Question 9

A company has purchased new software which will allow its employees to extend the electronic support capabilities and parts­ordering efficiencies the company offers its customers. The company's improved____________  should lead to improved employee satisfaction.
A) service capability
B) lean manufacturing
C) service benchmarking
D) service empowerment
E) customer empathy

Accepted Answer

Service capability is an employee's perception of his or her ability to serve customers well.

Question 10

____________ inventories include the basic inputs in a manufacturing process.
A) Finished goods
B) Work-in-process
C) Component parts
D) Raw materials
E) Recyclable

Accepted Answer

Raw materials are the basic inputs in a manufacturing process. Finished goods (A) are the final products that are ready to be sold, work-in-process (B) refers to partially completed products, component parts (C) are individual parts that are assembled into a finished product, and recyclable (E) refers to materials that can be reused or repurposed.

Question 11

This is a description of what happened to a patron at Royal Mail (the United Kingdom's equivalent of the USPS). "In the 15 minutes I waited in line, during which I shuffled forward one yard and two places, I had ample opportunity to watch what the other three staff were doing. They were busy all right, but the main task was counting each stamp in their folders. In this vital work, two of the three were overseen by another member of staff. There was no eye contact with the waiting customers." Assuming this experience is typical, the Royal Mail needs to engage in____________  .
A) service recovery
B) process integration
C) manufacturing flexibility
D) just-in-time manufacturing
E) process changeover

Accepted Answer

Service recovery is restoring customers' satisfaction to strongly dissatisfied customers.

Question 12

According to the TQM strategy, what should be a company's primary goal?
A) customer focus and satisfaction
B) continuous improvement
C) teamwork
D) participative management
E) reciprocity

Accepted Answer

According to the TQM strategy, a company's primary goal should be customer focus and satisfaction. This means that all efforts and processes should be directed towards meeting and exceeding customer expectations, ensuring their satisfaction, and ultimately building customer loyalty. Continuous improvement, teamwork, participative management, and reciprocity are all important principles of TQM but they are subordinate to the ultimate goal of customer satisfaction.

Question 13

The lowest degree of processing occurs in____________  operations, where a company orders parts and assembles standardized products before receiving customer orders.
A) assemble-to-stock
B) buy-to-sell
C) make-to-order
D) make-to-stock
E) assemble-to-order

Accepted Answer

The answer of The lowest degree of processing occurs in____________...

Question 14

Which of the following statements about service recovery is true?
A) Service recovery refers to restoring customer satisfaction to strongly dissatisfied customers.
B) Service recovery sometimes requires not only that mistakes be fixed but also that heroic service be performed that far surpasses the expectations dissatisfied customers have regarding fair treatment.
C) The purpose of empowering service employees is zero customer defections.
D) Service recovery increases the cost of selecting and hiring service workers who are capable of solving problems and dealing with irate customers.
E) All of these statements about service recovery are true.

Accepted Answer

All the statements provided about service recovery are true, as they each describe different aspects and implications of the service recovery process.

Question 15

When a CEO of a company says that TQM 's payoff comes when everyone shares solutions with others, the CEO is promoting which characteristic of TQM?
A) continuous improvement
B) variation elimination
C) teamwork
D) market focus
E) a customer orientation

Accepted Answer

In TQM, teamwork is the collaboration between managers and nonmanagers across business functions and between companies, customers, and suppliers.

Question 16

The highest degree of processing occurs in____________  operations.
A) assemble-to-order
B) make-to-order
C) make-to-stock
D) batch
E) real-time

Accepted Answer

Make-to-order operations involve creating products or services tailored specifically to individual customer's needs. This requires higher levels of processing, as each order may require unique components or specifications.

Question 17

Which of the following types of operations are most dependent on the accuracy of sales forecasts?
A) project manufacturing
B) assemble-to-order operations
C) make-to-order operations
D) buy-to-sell operations
E) make-to-stock operations

Accepted Answer

With the make-to-stock method, products are made before orders are received.

Question 18

Many organizations rely on teaming as a key to their productivity and credit their use of teams with performance improvements in such areas as efficiency and quality. This statement is another way to illustrate____________  .
A) the importance of benchmarking
B) the prevalence of ISO certification
C) how restructuring leads to stakeholder satisfaction
D) the importance of morale in the creation of a positive bureaucracy
E) how teamwork can result in total quality management

Accepted Answer

The three principles that characterize TQM are continuous improvement, customer focus and satisfaction, and teamwork.

Question 19

Classifying manufacturing operations in terms of the amount of assembly that occurs after an order is received from customers is the same as classifying those operations in terms of____________  .
A) processing
B) flexibility
C) production
D) operations
E) technical skills

Accepted Answer

Classifying manufacturing operations in terms of the amount of assembly that occurs after an order is received from customers is the same as classifying those operations in terms of processing. Processing refers to the steps involved in converting raw materials into finished products, and the amount of assembly required after an order is received is a key factor in determining the processing requirements.

Question 20

____________ is a deviation in the form, condition, or appearance of a product from the quality standard for that product.
A) Performance breakdown
B) Quality underperformance
C) Aberration
D) Divergence
E) Variation

Accepted Answer

Variation refers to any deviation or fluctuation from the standard or expected quality of a product. This can include changes in form, condition, or appearance of the product, and can occur due to differences in manufacturing processes, materials, or other factors. Variations can be either positive or negative, but they are always a deviation from the expected or desired quality level for the product. Choices A, B, C, and D all describe specific types of quality-related problems, but do not capture the broad concept of variation as a general phenomenon.

Quiz 17: Section 1: Managing Information

The ____________ of a maker of cloth dolls would include over 200 yards of fabric, 100 yards of ribbon, a box of 500 wiggle eyes, stuffing, 20 dolls in various stages of completion, and 15 completed dolls.

The term____________ refers to restoring customer satisfaction to strongly dissatisfied customers.

Which of the following is a specific component of internal service quality?

The first step in the service-profit chain is the establishment of____________ .

Continuous improvement is typically associated with____________ .

____________ refers to a manufacturing operation that divides manufacturing processes into separate parts or modules that are combined to create semi-customized products.

One of the key assumptions in the service business is that success depends on how well employees deliver their services to customers. However, according to the service-profit chain, success depends on ____________ .

A company has purchased new software which will allow its employees to extend the electronic support capabilities and partsordering efficiencies the company offers its customers. The company's improved____________ should lead to improved employee satisfaction.

____________ inventories include the basic inputs in a manufacturing process.

According to the TQM strategy, what should be a company's primary goal?

The lowest degree of processing occurs in____________ operations, where a company orders parts and assembles standardized products before receiving customer orders.

Which of the following statements about service recovery is true?

When a CEO of a company says that TQM 's payoff comes when everyone shares solutions with others, the CEO is promoting which characteristic of TQM?

The highest degree of processing occurs in____________ operations.

Which of the following types of operations are most dependent on the accuracy of sales forecasts?

Many organizations rely on teaming as a key to their productivity and credit their use of teams with performance improvements in such areas as efficiency and quality. This statement is another way to illustrate____________ .

Classifying manufacturing operations in terms of the amount of assembly that occurs after an order is received from customers is the same as classifying those operations in terms of____________ .

____________ is a deviation in the form, condition, or appearance of a product from the quality standard for that product.