MGT Exam 1

The voice of the customer is the customer's requirements as expressed in the customer's own words.

true

A hospital is evaluating whether to outsource or perform in-house a large set of blood and urine laboratory tests. The fixed cost of the laboratory equipment located in the hospital is $600,000 and the weighted average variable cost per test if performed in-house is $30.10. A third-party lab located three miles from the hospital will perform the same tests with more advanced and faster equipment. The lab distributes the results electronically to the hospital at a price of $31.25. If the annual volume last year was 300,000 tests, should the hospital do all lab tests in-house or outsource? What is the Break-Even quantity?

521,739

Which of the following is defined as a promise to reward and compensate a customer if a service upset occurs during the service experience?

A service guarantee

Which of the following is true of customer relationship management (CRM)?

A typical CRM system includes market segmentation and analysis.

If an organization establishes a business where the incremental cost to serve more customers is zero, then the firm is said to

be infinitely scalable.

Nanotechnology can be used to

develop faster computer processing.

Using the Internet and technology to provide facilities that create and deliver time, place, information, entertainment, and exchange value to customers and support the sale of goods is known as

e-service.

In order to design and improve goods and services, most companies use some type of structured process. The designs of both goods and services follow a similar path. For the six steps in the integrated framework, they are the same except which step?

4

You need to expand your small business, Paddle Incorporated that manufactures paddle board rackets. The fixed cost for the new technological advanced equipment is $15,600. The variable cost to produce each unit using the new equipment is $10, and the selling price for the finished product is $25. What quantity needs to be produced and sold to break-even?

1000

The four models of organizational performance discussed in class are: the Baldrige Performance Excellence Framework, Value Chain Model, Service-Profit Chain, and

Balanced Scorecard

Conhugeco is deciding between three levels of automation for the work cell that produces a key component. The Amazing Criswell, the company forecaster, believes that there could be three levels of demand for the products produced in this work cell and has developed this table of probable annual maintenance costs for company executives.

CAD/CAM

Customer relationship management (CRM) helps firms gain and maintain competitive advantage by

Correct: studying which goods and services are purchased together.

In order to increase value, an organization must

Decrease price or cost while holding perceived benefits constant

Which centers are warehouses that act as intermediaries between factories and customers, shipping directly to customers or to retail stores where products are made available to customers?

Distribution

Competitive Advantage should be driven by the company owner's needs and expectations.

False

Lean servicescape environments have more complicated designs and service systems.

False

Order Winners are basic customer expectations that are considered the minimum performance level required to stay in business.

False

When considering the value of a loyal customer, it costs three to five times more to keep an existing customer than to acquire a new customer.

False

A conservative, risk-averse manager would use the ___________ criterion, while an aggressive, risk-taking manager would use the ________ criterion.

Maximin ; Maximax

What is the act of quantifying the performance of organizational units, goods and services, people, and other business activities?

Measurement

Which of the following refers to machine tools that enable the machinist's skills to be duplicated by a programmable device that controls the movements of a tool used to make complex shapes?

Numerical control (NC)

The value of goods and services can be determined by dividing

Perceived benefits by price (cost) to customer.

Which of the following can be attached to objects and used to track and manage inventory and assets?

Radio-frequency identification tags

Which of the following terms means a measure of the contribution margin required to deliver a good or service as the business grows and volumes increase?

Scalability

In the context of sustainability, which performance measures include corporate ethics and governance?

Social

What type of sustainability is driven by ethics and human ideals of protecting the planet and its people for the well-being of future generations?

Social

Changing a business ____________ has implications for operations and the entire value chain, from the reconfiguration of facilities to the acquisition of new technologies and the design of new processes and jobs.

Strategy

Global supply chains have historically competed based on the three factors of quality, cost, and time. What is the fourth factor that has been added to this mix?

Sustainability

Which term refers to an organization's ability to strategically address current business needs and successfully develop a long-term strategy that embraces opportunities and manages risk for all products, systems, supply chains, and processes to preserve resources for future generations?

Sustainability

Which of the following statements is true of sustainability?

Sustainability practices lead to better public perception.

Errors in service creation and delivery are sometimes called service upsets or service failures.

True

Process flexibility is the ability to respond to changes in volume and type of demand.

True

Which of the following terms describes the perception of the benefits associated with a good, service, or bundle of goods and services in relation to what buyers are willing to pay for them?

Value

What is a customer benefit package (CBP) feature that departs from the standard CBP and its normally location specific or firm specific?

Variant

Queue time is the time spent waiting. it is also the fancy word for

Wait time

One of the service recovery process includes a step of slowly responding after a service upset occurs

false

The modern successor to bar codes are

radio-frequency identification tags.

The process of building prototypes quickly to reduce product development cost and time to market is known as

rapid prototyping

What type of technology refers to the application of the Internet, computer programs, and information systems to provide data, information, and analysis to facilitate the creation and delivery of goods and services?

soft