MGMT CH 2

Which performance perspectives in the balanced scorecard model include the percent of sale from new goods and services? Customer perspective Learning perspective Innovation perspective Financial perspective

Customer perspective

Innovation and Learning Perspective:

Directs attention to the basis of a future success—the organization's people and infrastructure. Key measures might include intellectual and research assets, time to develop new goods and services, number of improvement suggestions per employee, employee satisfaction, market innovation, training hours per employee, hiring process effectiveness, revenue per employee, and skills development.

In the context of the triple bottom line (TBL), which is a performance measure of economic sustainability? Measures of perceived value Revenue from new goods and services Corporate ethics and governance Fines for environmental violations

Fines for environmental violations

Internal Perspective:

Focuses attention on the performance of the key internal processes that drive the business. This includes such measures as goods- and service-quality levels, productivity, flow time, design and demand flexibility, asset utilization, safety, environmental quality, rework, and cost.

Customer Perspective:

Focuses on customer wants and needs and satisfaction as well as market share and growth in market share. This includes safety, service levels, satisfaction ratings, delivery reliability, number of cooperative customer-company design initiatives, value of a loyal customer, customer retention, percent of sale from new goods and services, and frequency of repeat business.

Which performance perspective in the balanced scorecard model includes measures such as productivity, flow time, and asset utilization? Internal perspective Innovation and learning perspective Customer perspective Financial perspective

Internal perspective

Financial Perspective:

Measures the ultimate value that the business provides to its shareholders. This includes profitability, revenue growth, stock price, cash flows, return on investment, economic value added (EVA), and shareholder value.

measures the degree to which the output of a process meets customer requirements. Quality Variability Innovation Learning

Quality

_____ is the willingness to help customers and provide prompt recovery to service upsets. Reliability Responsiveness Empathy Assurance

Responsiveness

__________ is the willingness to help customers and provide prompt recovery to service upsets. Reliability Assurance Empathy Responsiveness

Responsiveness

Which is a financial performance measure at an organizational level? Labor and material costs Budget variance Revenue and profit Cost of quality

Revenue and profit

_____ measures include environmental measures such as energy consumption and recycling and other resource conservation activities. Financial Sustainability Innovation and learning Operation efficiency

Sustainability

Workforce:

This category addresses how an organization assesses workforce capability and capacity needs; builds a high-performance environment; and engages, manages, and develops its workforce to utilize its full potential in alignment with the organization's overall needs.

Operations:

This category addresses how an organization designs, manages, improves, and innovates its work systems and work processes to deliver customer value, and achieve organizational success.

Customers:

This category addresses how an organization engages its customers for long-term marketplace success, builds a customer-focused culture, listens to the voice of its customers, and uses this information to improve and identify opportunities for innovation.

Leadership:

This category addresses how senior leaders' personal actions guide and sustain the organization, the organization's governance system, and approaches for fulfilling ethical, legal, and societal responsibilities.

Results:

This category examines an organization's performance and improvement in key business areas—product and process results, customer-focused results, workforce-focused results, leadership and governance results, and financial and market results.

Strategy:

This category focuses on how an organization develops strategic objectives and action plans, implements them, and changes them if circumstances require, and measures progress.

Measurement, Analysis, and Knowledge Management:

This category focuses on how an organization selects, gathers, analyzes, manages, and improves its data, information, and knowledge assets; how it manages its information technology; and how it reviews data and uses the results to improve its performance.

In the context of the triple bottom line (TBL or 3BL), which of the following is a social sustainability measure? a. Consumer and workplace safety b. Donations to civic groups c. Energy consumption d. Legal or governmental sanctions

a. Consumer and workplace safety

In the context of the triple bottom line (TBL), which of the following is a performance measure of economic sustainability? a. Fines for environmental violations b. Corporate ethics and governance c. Revenue from new goods and services d. Measures of perceived value

a. Fines for environmental violations

_____ refers to creating, acquiring, and transferring knowledge, and modifying the behavior of employees in response to internal and external change. a. Learning b. Innovation c. Measurement d. Retention

a. Learning

_____ is the ability to provide goods and services to customers with minimum waste and maximum utilization of resources. a. Operational efficiency b. Volume flexibility c. Reliability d. Sustainability

a. Operational efficiency

Which of the following is the purpose of a balanced scorecard? a. To translate strategy into measures that uniquely communicate an individual's vision to an organization b. To quantify the performance relationships between all parts of the value chain c. To help justify improvement initiatives in job and process design, capacity and scheduling, and facility design d. To encourage the development of high-performance management practices through innovation, learning, and sharing of best practices

a. To translate strategy into measures that uniquely communicate an individual's vision to an organization

In the context of the value chain model, fewer resources are needed to achieve performance goals when "information replaces assets." a. True b. False

a. True

With interlinking models, managers can objectively make internal decisions that impact external outcomes. a. True b. False

a. True

Which of the following is a productivity and operational efficiency measure at an organizational level? a. Equipment utilization b. Order fulfillment time c. Manufacturing yield d. Assembly-line changeover time

a. equipment utilization

Assurance, one of the key dimensions used by customers to assess service quality, is defined as the: a. knowledge and courtesy of service providers and their ability to inspire trust and confidence in customers. b. ability of service providers to perform the promised service dependably and accurately. c. willingness of service providers to help customers and provide prompt recovery to service upsets. d. caring attitude and individualized attention provided to customers by service providers.

a. knowledge and courtesy of service providers and their ability to inspire trust and confidence in customers.

In the context of the scope of business and operations performance measurement, which of the following performance measures is a customer-focused performance measure? a. Warranty claims b. Product recalls c. Service representative courtesy d. Design flexibility

a. warranty claims

Quality measures the degree to which the output of a process conforms to the management's expectations and requirements. a. True b. False

b. False

Which of the following is an example of a productivity measure? a. Manufacturing yield b. Hotel revenue per full-time employee c. Supply-chain performance d. Times to set up machinery and equipment

b. Hotel revenue per full-time employee

Which of the following perspectives in the balanced scorecard model is most meaningful to operations managers? a. The financial perspective b. The internal perspective c. The learning perspective d. The customer perspective

b. The internal perspective

Which of the following is true of actionable measures? a. They are not related to the user. b. They reflect how an organization generates value to customers. c. They reflect how an organization generates value to the organization itself. d. They are not time bound.

b. They reflect how an organization generates value to customers.

Which of the following is a financial performance measure at an operational level? a. Return on assets b. Budget variance c. Earnings per share d. Revenue and profit

b. budget variance

Dextron, a privately owned computer technology company, provides a wide range of customized laptops to suit the needs of students, corporate professionals, and small business owners. In this case, Dextron's ability to provide a wide range of customized laptops to suit its customers' needs best describes _____. a. volume flexibility b. design flexibility c. budget variance d. manufacturing yield

b. design flexibility

In the context of the analytics in operations management, it costs three to five times more to keep an existing customer than acquire a new customer. a. True b. False

b. false

In the context of the value chain model, when "information replaces assets," the costs increase. a. True b. False

b. false

Actionable performance measures provide the basis for decisions at the: a. customer level. b. level at which they are applied. c. supplier level. d. level where measurement is the easiest.

b. level at which they are applied.

The time required to ramp up to an increased production output level in response to a surge in the sales of a product is a measure of _____. a. budget variance b. volume flexibility c. product recalls d. service upset

b. volume flexibility

Which of the following is true of the value chain model of organizational performance? a. It creates customer value and drives profitability. b. It determines whether a company's processes are meeting customers' expectations. c. It provides detailed frameworks for operations managers. d. It provides more of a "big picture" of organizational performance.

c. It provides detailed frameworks for operations managers.

_____ include environmental measures such as energy consumption and recycling and other resource conservation activities. a. Operation efficiency measures b. Innovation and learning measures c. Sustainability measures d. Financial measures

c. Sustainability measures

The triple bottom line (TBL or 3BL) refers to the measurement of _____ sustainability. a. political, economic, and governmental b. environmental, technological, and political c. environmental, social, and economic d. governmental, social, and political

c. environmental, social, and economic

_____ refers to the ability to create new and unique goods and services that delight customers and create competitive advantage. a. Reliability b. Empathy c. Innovation d. Responsiveness

c. innovation

In an assembly line of a factory that makes gears, it takes fifteen minutes to complete a drilling operation using a lathe. The duration of this operation is called _____. a. delay time b. queue time c. processing time d. standard time

c. processing time

According to research, a key dimension that customers use to assess service quality is _____. a. sustainability b. productivity c. reliability d. flexibility

c. reliability

The value of a loyal customer (VLC) quantifies the: a. annual revenue or profit from a target market customer that goes to competitors. b. cost savings from keeping an existing customer rather than finding a new customer. c. total revenue or profit each target market customer generates over the buyer's life cycle. d. annual advertising expense that is saved by providing better service to gain positive referrals.

c. total revenue or profit each target market customer generates over the buyer's life cycle.

One of the performance measures related to time is the _____ of a process. a. accuracy b. reliability c. variability d. sustainability

c. variability

Which of the following is a key measure of an organization's innovation and learning? a. Asset utilization b. Resource conservation activities c. Units produced per labor hour d. Intellectual asset growth

d. Intellectual asset growth

Which of the following performance perspectives in the balanced scorecard model includes the percent of sale from new goods and services? a. The financial perspective b. The innovation perspective c. The learning perspective d. The customer perspective

d. The customer perspective

Which of the following performance perspectives in the balanced scorecard model includes measures such as productivity, flow time, and asset utilization? a. The financial perspective b. The customer perspective c. The innovation and learning perspective d. The internal perspective

d. The internal perspective

While computing the value of a loyal customer (VLC), the customer defection rate is used to determine the _____. a. revenue per unit b. contribution margin to profit and overhead c. repurchase frequency d. buyer's life cycle

d. buyer's life cycle

The measures used by organizations to measure outputs and outcomes include: a. intellectual and research assets. b. training hours per employee. c. the number of ethical violations. d. defects per million opportunities

d. defects per million opportunities

In the context of performance measures, the ability to adapt quickly and effectively to changing requirements is called _____. a. innovation b. empathy c. variability d. flexibility

d. flexibility

The ability of an organization to respond quickly to changes in the quantity and type of demand is called _____. a. utility b. reliability c. demand variability d. volume flexibility

d. volume flexibility

The triple bottom line (TBL or 3BL) refers to the measurement of

environmental, social, and economic sustainability.

The quantitative modeling of cause-and-effect relationships between external and internal performance criteria is called __________ interlinking productivity operational efficiency sustainability

interlinking

Productivity

is the ratio of the output of a process to the input.

Key measures of innovation and learning include

percentage of new products developed.

Actionable measures

provide the basis for decisions at the level at which they are applied.

value of a loyal customer (VLC)

quantifies the total revenue or profit each target market customer generates over the buyer's life cycle.

In the context of the triple bottom line, _______ measures include corporate ethics and governance. environmental sustainability social sustainability economic sustainability political sustainability

social sustainability