SCM Exam 2 (6, 8, 10, 12)

When CRM applications are available 24/7 on smartphones, tablets, and desktops, this is referred to as:

continuous connectivity

A practical independent measure firms can take to improve information security is:

continuously monitor employee desktop applications, e-mails, and phone calls

Which of the following quality gurus believed that companies should strive for zero defects and that quality was, in a sense, free since quality improvement programs invariably paid for themselves?

crosby

Which of the following are required elements of an effective CRM initiative?

cross selling customers after an initial purchase

The online retailer Ecatalog.com has decided to send consumers of the new John Grisham book an e-mail with suggestions for books with similar themes and has also offered them a 20% discount if those suggested books were purchased. This type of marketing/promotion is an example of:

cross-selling

Companies work very hard to reduce the number of customers who don't return. This customer defection is often referred to as:

customer churn

CRM systems can flag customers which slow or stop purchasing. This CRM attribute is called:

customer defection analysis

Not all ERP software is designed to provide the exact same tools, nonetheless, some of the common modules usually included in ERP software packages include:

customer relationship management and human resource management

The element of a CRM program in which a customer's lifetime value is calculated is referred to as:

customer value determination

According to recent research which of the following is NOT one of the top three reasons for customer defections?

customers like to touch and feel the merchandise

An important outcome of statistical process control is:

d. Both "Firms can take corrective actions before process variabilities get out of control" & "Firms can visually monitor process performance"

Users in a company can retrieve and study a large amount of information about consumers by housing that information in a centralized database that is commonly referred to as a:

data warehouse

All of the following are considerations used in designing service layouts EXCEPT:

ease of access to parking lot

When an organization attempts to offer the right products and services to customers at the right time through the offer of individual promotions tied to specific events like birthdays and anniversaries, this is referred to as:

event-based marketing

All of the following are recommended for designing and implementing a successful CRM program EXCEPT:

expect employees to "learn on the job" and adapt their way of working

A firm is comparing two potential service layouts using the Closeness Desirability Rating. Option 1's closeness desirability score is 18. Option 2's closeness desirability score is 22. It can be concluded that Option 1 layout is better.

false

Lean production, JIT, and Six Sigma quality mean the same thing.

false

The goal of an efficient queuing system is that customers never have to wait in a queue.

false

The optimal capacity utilization for an organization would be 100%.

false

The three inputs for calculating Customer Lifetime Value are Average Annual Sales, Expected Lifetime and Forecasted Profits.

false

in most services, customers are not involved in the production of the service itself

false

keeping an existing customer is 5x more expensive than finding a new customer

false

A customer's lifetime value is calculated by:

finding the npv of a customers projected lifetime profits for the firm

chase strategy

firm adjust capacity to match variable demand. finished goods inventory remains constant, works well with make-to-order firms requiring low labor workers

mixed production strategy

firm maintains stable core workforce using overtime, subcontracting, and part-time workers to manage short-term demand. works well with firms producing multiple products

One reason CRM programs fail is because:

firms have diminished efforts to build customer relationships

The difference between customer expectations and customer perceptions of what was actually received during the service encounter is referred to as service quality ________.

gaps

minimize the discrepancy between capacity and demand

goal of resource planning

Which of the following is NOT a technique for managing customers' perceived waiting times:

hiding the wait time

Which of the following is NOT consistent with the lean philosophy?

increasing batch sizes to take advantage of economies of scale

The Five-Ss refer to:

industrial housekeeping

The Quick Response program, developed in the 1980's, was an offshoot of the following supply chain concept:

just-in-time

Lean production systems are sometimes referred to as pull systems because demand from customers activates the production actions of the manufacturing facilities. In order for this demand to be communicated to everyone in the supply chain/manufacturing facility a signal must be passed from downstream processing centers to the upstream processing centers. This system of relaying signals is referred to as a:

kanban system

Japanese manufacturing firms sometimes create cooperative coalitions with their suppliers in order to provide the suppliers with a certain degree of financial support. What are these cooperative coalitions called?

keiretsu

Your top sales executive leaves your company to work for a competitor. Fortunately, all of her notes regarding prior dealings with customers have been captured in a:

knowledge management system

A basic strategy for managing capacity is:

level demand strategy

aggregate production plan

long range, high level plan of activities and operations

Which of the following is an example of a person that would be considered to provide a Pure Service?

management consultant, musical entertainer, attorney, lawyer

The ___________ planning horizon is shorter than the aggregate production plan's, but must be longer than a firm's production lead time to ensure the end item can be completed within the planning horizon?

master production schedule

Which of the following seeks to develop short range plans seeking to effectively and efficiently manage components and/or subassemblies over time period of few days to a few weeks?

material requirement plan

capacity

maximum output in a given period of time

master production schedule

mid range plan of exactly what is to be produced by a specific date

Which strategy uses overtime and subcontracting to cope with the high demand periods?

mixed production strategy

If an available-to-promise (ATP) for any period is negative, the deficit must be subtracted from the:

most recent positive ATP

Service provided by multiple servers acting in parallel is referred to as:

multiple channel queuing system

Which tool is useful for presenting data in an organized fashion, indicating process problems from most to least severe:

pareto charts

Your company allows customers to "opt-out" of receiving email advertisements. This is referred to as:

permission marketing

The following is a term that refers to error or mistake proofing:

poka-yoke

You are a manager at Sunnydale Appliances. A customer who recently purchased a dishwasher contacts you with a problem and requests warranty information. According to the text, this is an example of:

post transaction customer service

Five Dimensions of Service Quality

reliability, responsiveness, assurance, empathy, tangibles

A customer who enters the waiting line but leaves the system prior to receiving service is said to have:

reneged

7 R's Rule

right price, right customer, right quantity, right product, right time, right condition, right place

A system which allows sales managers to obtain current information and reporting capabilities regarding each salesperson's activities on each customer's account is referred to as a:

sales territory management system

David Maister's First Rule of Service is:

satisfaction = perception - expectation

Which of the following is one of the most basic and important activities of CRM?

segmenting customers

The four primary activities of concern in service response logistics are the management of:

service capacity, waiting times, distribution channels, and service quality

As capacity utilization approaches 1.0, which of the following tends to happen?

services become more congested

Which of the following is a difference between goods and services?

services cannot be inventoried

Which person was a key figure in developing the Toyota Production System and also developed the concept of poka-yoke?

shingo

materials requirement plan

short range plan

system nervousness

small changes in the top level MPS can cause major changes in the lower-level MPS and MRP

Which strategy allows finished goods inventories to accrue and relies on backlogs to handle the demand?

the level production strategy

resource planning

the process of determining the production inputs and capacity required to meet demand

Master Production Schedule

the production quantity of end items to meet demand from all sources, listing the exact end items to be produced by a specific date

CRM systems today require less training because:

they are designed to be more user friendly

the purpose of customer commitments is all of the following except

they can change over time

Which company probably played the largest role in the development of the Toyota Production System?

toyota

According to the text, poor planning is typically the cause of most unsuccessful CRM initiatives.

true

The Malcolm Baldrige National Quality Award recognizes firms for their quality achievements but is only given to U.S. firms.

true

When lean firms share their best practices with supply chain members, this is referred to as yokoten.

true

customer satisfaction with service depends on both the service itself and the way it was delivered

true

typically, quick recovery from service failures can keep customers loyal and coming back

true

Which of the following would NOT be considered an acceptable option in managing capacity when demand exceeds available service capacity?

utilizing fewer facilitating products

Why do so many CRM programs fail?

Firms concentrate more on the CRM software instead of taking care of customers

The average transaction at a single channel, single phase automatic teller can be completed in 7.5 minutes and customers arrive at the average rate of one every ten minutes. On average, what is the server utilization? (Choose the closest answer.)

0.75

level, chase, mixed

3 basic production strategies

level production strategy

Relies on a constant output rate while varying inventory & backlog according to fluctuating demand. Firm relies on fluctuating finished goods & backlogs to meet demand. Works well for make-to-stock firms.

Organizations find they must continue to identify and develop innovative ways to _________ customer relationships to maintain a competitive advantage.

add value to

The __________ specifies which end product is to be made, how many are required, and when they need to be completed.

aggregate production plan

Which of the following is an example of how lean programs can help to protect the environment?

batch size reduction to reduce plastic, parts made from recycled materials, using rubber from used tire parts

Using the ________________ multiple software infrastructures and databases may have to be used to link the multiple applications obtained from different vendors.

best of breed solution