Operations Management Exam 2 (Chapter 5)

In the context of service-delivery system design, which of the following establishments depends on good location decisions? a. A health club b. An ice-cream factory c. An insurance claim processing center d. A distribution center

a. A health club

In the context of designing manufactured goods, socially responsible designs are the ones that follow the concept of: a. Design for Environment b. Design for reliability c. Design for manufacturability d. Design for Accuracy

a. Design for Environment

In the context of service-encounter design, free trips and extra vacation days is not considered a form of recognition. a. True b. False

b. False

A critical part has a manufacturing specification (in cm) of 0.325 ± 0.010. Based on this information, if this measurement is larger than 0.335 or smaller than 0.315, the product fails at a cost of $120. Determine the Taguchi loss function in the given scenario. a. L(x) = 1,200,000 (x - 0.335) 2 b. L(x) = 1,200,000 (x - 0.325) 2 c. L(x) = 1,200 (x - 0.315) 2 d. L(x) = 1,200 (x - 0.010) 2

b. L(x) = 1,200,000 (x - 0.325) 2

focuses on the interaction, directly or indirectly, between the service provider(s) and the customer. a. Service process design b. Service-encounter design c. Lean servicescape design d. Customer benefit package design

b. Service-encounter design

At which of the following stages are the perceptions of a firm and its goods and services created? a. The process design stage b. The service-encounter design stage c. The customer benefit package configuration stage d. The market introduction and evaluation stage

b. The service-encounter design stage

Which of the following is true of Energy Star-certified products? a. They cannot be salvaged for reuse. b. They exert less demand on electrical power plants. c. They have a higher carbon footprint in the environment. d. They cannot be repaired easily since they use advanced technology.

b. They exert less demand on electrical power plants.

Which of the following elements is included in the service-delivery system design? a. Prototype testing b. Service guarantees and recovery c. Company mission d. Facility location and layout

d. Facility location and layout

For manufactured goods, design blueprints specify a nominal dimension which is the: a. dimension with the least manufacturing cost. b. dimension with the greatest variation from the target dimension. c. range of permissible variation in the target dimension of the goods. d. specified target dimension of the goods.

d. specified target dimension of the goods.

In the context of service-encounter design, giving discounts to employees is a form of _____. a. recognition b. guarantee c. assurance d. compensation

a. recognition

The specifications for an automobile part (in inches) are 10.00 ± 0.15, and the Taguchi loss function is estimated to be L(x) = 9,300 (x - T) 2. Determine the estimated loss per part if the concerned quality feature has an actual value of 10.20 inches. a. $37200 b. $93000 c. $372 d. $93

c. $372

Linda is the owner of Souvenirstop, a chain of souvenir shops. One of the shops is located at the City Centre Mall. Though the shop is popular, she does not get many tourists in the City Centre Mall branch. She is considering opening another store near a popular tourist attraction to attract more tourists to her shop. Which of the following elements of service-delivery system design is Linda addressing? a. The servicescape b. Service process design c. Facility location and layout d. The voice of the customer

c. Facility location and layout

Which of the following is one of the principal elements of service-encounter design? a. Customer benefit package design b. Market introduction c. Recognition and reward d. Quality function deployment

c. Recognition and reward

should begin immediately after a service upset occurs and when the customer is visibly upset. a. Service guarantee b. Servicescape design c. Service recovery d. Service process design

c. Service recovery

Jones and Johnson, a law firm, is expanding to incorporate three conference rooms and two executive waiting lounges in its office. Which of the following dimensions of servicescape is the firm addressing? a. Ambient conditions b. Market deployment and evaluation c. Spatial layout and functionality d. Signs, symbols, and artifacts

c. Spatial layout and functionality

is the explicit consideration of ecological concerns during the design of goods, services, and processes, and includes such practices as designing for recycling and disassembly. a. Quality function deployment b. Service-encounter design c. Environmental intervention d. Design for Environment

d. Design for Environment

A quality characteristic has a specification (in cm) of 0.40 ± 0.03. If the value of the quality characteristic exceeds 0.40 by the tolerance of 0.03 on either side, the product will require a $180 repair. In the given scenario, the Taguchi loss function is correctly represented by which of the following equations? a. L(x) = 200 (x − 0.03) 2 b. L(x) = 2,000 (x − 0.43) 2 c. L(x) = 200,000 (x − 0.37) 2 d. L(x) = 200,000 (x − 0.40) 2

d. L(x) = 200,000 (x − 0.40) 2

the process by which a model (real or simulated) is constructed to assess a product's performance under actual operating conditions, as well as consumer reactions to the model. a. Quality function deployment b. Value engineering c. Detailed product design d. Prototype testing

d. Prototype testing

Mitch is the owner of GameOn, a popular sports bar. He personally trains his servers and then gives them autonomy to make on-the-spot decisions to resolve any customer complaints and issues. This is a form of _____. a. service guarantee b. assurance c. flexibility d. empowerment

d. empowerment

The bottom of a House of Quality identifies the technical features that: a. are interrelated to each other. b. have the highest competitive performance. c. are the weakest selling points. d. have the strongest relationships to customer requirements.

d. have the strongest relationships to customer requirements.