Operations Management Chapter 5
_____ is defined as the probability that a manufactured good, piece of equipment, or system performs its intended function for a stated period of time under specified operating conditions.
Reliability
_____ is the activity of developing an efficient sequence of activities to satisfy both internal and external customer requirements.
Service process design
_____ should begin immediately after a service upset occurs and when the customer is visibly upset.
Service recovery
_____ design focuses on the interaction, directly or indirectly, between the service provider(s) and the customer.
Service-encounter
Jones and Johnson, a law firm, is expanding to incorporate three conference rooms and two executive waiting lounges in its office. Which dimension of servicescape is the firm addressing?
Spatial layout and functionality
The Taguchi Loss Function is represented by what shape of curve?
U-shaped
For manufactured goods, the form attribute addresses the important customer need of _____.
aesthetics
The products designed for sustainability
are designed for refurbishing.
Service-delivery systems with high customer contact:
are difficult to design
Unlike the customer benefit package design and configuration stage of designing goods and services, the detailed goods, services, and process design
focuses on implementation
Unlike the customer benefit package design and configuration stage of designing goods and services, the detailed goods, services, and process design:
focuses on implementation.
High customer contact systems would most likely be found in
front office operations
In the context of service-encounter design, high-contact systems would most commonly be found in:
front office operations.
In the context of designing manufactured goods, the _____ assumes that any value within the tolerance range is acceptable, but those outside are not.
goal-post model
Happy Cruises promises to authorize a full refund if 100% satisfaction is not met while on vacation. This is an example of a service
guarantee
The bottom of a House of Quality identifies the technical features that:
have the strongest relationships to customer requirements.
A(n) ______ is an example of an elaborate servicescape.
hospital
In the context of the servicescape, spatial layout and functionality refer to
how furniture, equipment, and office spaces are arranged.
In the context of quality function deployment, one of the first steps to build the House of Quality is to:
identify the technical features of the design of the product.
The roof portion (the upper most level) of the House of Quality refers to:
interrelationships
In the context of the service-delivery system design, a(n) _____ depends on good location decisions.
library
Design for _____ is defined as the process of designing a product for efficient production at the highest level of quality.
manufacturability
The fourth step that Lenscrafters uses to integrate goods and services is:
manufactured good design.
The fifth step that Lenscrafters uses to integrate goods and services is:
market introduction and deployment.
The sixth (final) step that Lenscrafters uses to integrate goods and services is:
marketplace evaluation.
Servicescape is all the _____ evidence a customer might use to form an impression.
physical
For manufactured goods, the _____ attribute addresses the important customer need of
place; consumption
Reliability is the
probability that a manufactured good, piece of equipment, or system performs its intended function for a stated period of time under specified operating conditions
The process of building prototypes within a short period of time to reduce product development cost and time to market is known as _____ prototyping.
rapid
Mandy owns a cosmetics store. When one of her employees, Misha, effectively deals with a service upset and manages to make a huge sale, Mandy awards her with a paid holiday. In the context of service-encounter design, this is a form of _____.
recognition
Samuel runs a small restaurant with limited parking space for employees. Every month he assigns a parking spot to the employee who generates maximum sale in the previous month. In the context of service-encounter design, this is a form of _____.
recognition
In the context of service-encounter design, giving discounts to employees is a form of:
recognition.
Building a House of Quality begins by identifying the voice of the customer and ______ , and listing them in the appropriate places in the diagram.
technical features of the design
The center portion (the middle level) of the House of Quality refers to:
technical features.
For manufactured goods, design blueprints specify a target dimension, along with a range of permissible variation called the:
tolerance.
In the context of quality function deployment, building a House of Quality begins by identifying the:
voice of the customer.
Which is true of Energy Star-certified products?
They exert less demand on electrical power plants.
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.
$372
The probability that your alarm clock will operate as designed is 99%. Since you have a job interview you have set a second alarm clock that has a 98% chance of operating as designed. What is the probability that both alarm clocks will fail?
0.0002
The service center for a brokerage company provides three functions to callers: account status, order confirmations, and stock quotes. The reliability was measured for each of these services over one month with these results: 0.90, 0.60, and 0.98, respectively. What is the overall reliability of the call center? Round your answer to four decimal places.
0.5292
The service center for a brokerage company provides three functions to callers: account status, order confirmations, and stock quotes. The reliability was measured for each of these services over one month with these results: 0.90, 0.70, and 0.96, respectively. What is the overall reliability of the call center? Round your answer to four decimal places.
0.6048
Given the diagram below, determine the total system reliability if the individual component reliabilities are: A = 0.97, B = 0.82, and C = 0.84. (Hint: Use Equations 5.2 and 5.3, and note that the reliabilities of the parallel components are different.) Round your answer to four decimal places.
0.9421
The probability that your alarm clock will operate as designed is 99%. Since you have a job interview you have set a second alarm clock that has a 98% chance of operating as designed. What is the probability that at least one alarm clock will operate?
0.9998
Two cooling fans are installed in some laptop computers. Suppose the reliability of each cooling fan is 0.97. What percent improvement in reliability does adding the second fan provide? Round your answer to the nearest whole number.
3
Suppose that the specifications for a part (in inches) are 7.00 ± 0.03, and that the Taguchi loss function is estimated to be L(x) = 6,600(x - T)2. Determine the economic loss if x = 7.07 inches. Round your answer to the nearest cent.
32.34
In the context of the service-delivery system design, which of the following establishments depends on good location decisions?
A bank branch
In the context of service-delivery system design, which establishment depends on good location decisions?
A health club
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 principal dimensions of the servicescape is designed to please the five human senses?
Ambient conditions
Which of the following is an example of an elaborate servicescape?
An airport
In the context of the sevicescape, in the service-delivery system design, which facility is a part of the spatial layout and functionality?
Building facade
Which requirement is an example of customer-contact requirements?
Cross-selling
In the context of designing manufactured goods, socially responsible designs are the ones that follow the concept of:
Design for Environment
__________ 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.
Design for Environment
While designing goods and services, which of the following steps follows the customer benefit package (CBP) design and configuration stage?
Detailed goods, services, and process design
_____ means giving people authority to make decisions based on what they feel is right, to have control over their work, to take risks and learn from mistakes, and to promote change.
Empowerment
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 element of service-delivery system design is Linda addressing?
Facility location and layout
YourCafe, a popular café in the United States, is planning to increase its market share and has decided to open its outlets in all major airports and shopping malls across the country. Which of the following elements of service-delivery system design is YourCafe trying to address?
Facility location and layout
The quality function deployment (QFD) process is initiated with a matrix called the _____.
House of Quality
Which is true of the House of Quality?
It contains key selling points and features.
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.
L(x) = 1,200,000 (x - 0.325)2
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 0.030 on either side, the product will require a $180.00 repair. In the given scenario, the Taguchi loss function is correctly represented by which equation?
L(x) = 200,000 (x − 0.40)2
The Taguchi loss function is ______ , where _______is a constant that translates the deviation into dollars.
L(x) = k(x-T)2; k
_____ servicescapes provide service using simple designs.
Lean
Machine A has a reliability of 0. Machine B has a reliability of 0.49. Machine C has a reliability of 0.7. Machine D has a reliability of 1. Which machine is the most reliable?
Machine D
What is the final step that LensCrafters uses to integrate goods and services?
Marketplace evaluation
The specifications for a refrigerator part (in cm) are 5.00 ± 0.10, and the Taguchi loss function is estimated to be L(x) = 5,500 (x - T)2. Determine the estimated loss per part if the quality characteristic (i.e., actual process performance) under study takes on a value of 4.91 cm.
More than $30 but less than or equal to $50
Which elements are included in the service-delivery system design?
Prototype testing
_____ is 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.
Prototype testing
_____ is an approach to guide the design, creation, and marketing of goods and services by integrating the voice of the customer into all decisions.
Quality function deployment
Which is one of the principal elements of service-encounter design?
Recognition and reward
The management of GoodMarket, a popular retail chain, has decided to expand to incorporate an enclosed and monitored play area for kids. The idea behind this decision is that keeping the kids busy in the play area will enable the customers to shop for longer periods. Which of the following dimensions of servicescape is the management of GoodMarket addressing?
Spatial layout and functionality
_______ is the first step that LensCrafters uses to integrate goods and services.
Strategic mission
From which of the following perspectives must service design be addressed?
The service encounter
At which stage is the perceptions of a firm and its goods and services created?
The service-encounter design stage
Which of the following is true of electrical equipment designed for sustainability?
They decrease the carbon dioxide release in the environment.
In the context of service-encounter design, empowered employees:
a. require a consistent understanding of what actions they may or should take.
Customer _____ refers to the physical or virtual presence of the customer in the service-delivery system during a service experience.
contact
The third step that Lenscrafters uses to integrate goods and services is:
customer benefit package design.
The _____ process must translate the voice of the customer into specific technical features that provide the "blueprint" for manufacturing or service delivery.
design
The critical differences between the designs of goods and services lie in the:
detailed product and process design phases.
Jane manages a small-town movie theater. Her boss allows her to compensate up to $25, in addition to refunds, to resolve customer complaints. This is an example of
empowerment
David runs a bed and breakfast in the outskirts of a big city. His employees are allowed to spend up to $200 to resolve any customer complaints, with no questions asked. This is an example of:
empowerment.
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:
empowerment.
The _____ of the House of Quality shows the interrelationships between any pair of technical features.
roof
The perceptions of a firm and its goods and/or services is created at the ______ stage.
service-encounter design
People around the world recognize the consistency in McDonald's restaurants: the golden arches, schemes and colors, packaging, etc. This is known as ______ and helps to establish its brand image.
servicescape
The _____ provides the behavioral setting where service encounters take place.
servicescape
Building facades are examples of ______ , in the context of the servicescape.
spatial layout and functionality
In the context of the servicescape, in the service-delivery system design, building footprints are examples of:
spatial layout and functionality.
For manufactured goods, design blueprints specify a nominal value which is the:
specified target dimension of the goods.
Prior to designing and configuring a customer benefit package, a firm should understand and develop its:
strategic mission and competitive priorities.
The first step that Lenscrafters uses to integrate goods and services is:
strategic mission.
