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Omozojie Inetabor's Quiz History: Term Test 2
Term Test 2 Results for Omozojie Inetabor
Score for this quiz: 70 out of 75
Submitted Jul 13 at 8:18p.m.
This attempt took 97 minutes.
Question 1
1 / 1 pts
All services need to be located near the customer.
true
Correct!
false
See Exhibit 9.2.
See Exhibit 9.2.
Question 2
1 / 1 pts
A process flowchart uses which of the following symbols to represent a
decision point in a flow diagram?
Rectangle
Arrow
Inverted triangle
Correct!
Diamond
A dashed line
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See Exhibit 11.1, legend: Flowchart Symbols.
See Exhibit 11.1, legend: Flowchart Symbols.
Question 3
0 / 1 pts
A favorable business climate in facility location decision making might
include government legislation of tax abatements.
orrect Answer
true
ou Answered
false
Probusiness government legislation and local government
intervention to facilitate businesses locating in an area via
subsidies, tax abatements, and other support are also factors.
Probusiness government legislation and local government
intervention to facilitate businesses locating in an area via
subsidies, tax abatements, and other support are also factors.
Question 4
1 / 1 pts
Which of the following is not an element of a good service guarantee?
Unconditional (no small print).
Correct!
The customer controls the process.
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Easy to understand.
Easy to communicate.
Meaningful to the customer.
Recent research on service guarantees has provided the following
conclusions about them:
1. Any guarantee is better than no guarantee.
2. Involve the customer as well as employees in the design.
3. Avoid complexity or legalistic language. Use big print, not small
print.
4. Do not quibble or wriggle when a customer invokes the
guarantee.
5. Make it clear that you are happy for customers to invoke the
guarantee.
Recent research on service guarantees has provided the following
conclusions about them:
1. Any guarantee is better than no guarantee.
2. Involve the customer as well as employees in the design.
3. Avoid complexity or legalistic language. Use big print, not small
print.
4. Do not quibble or wriggle when a customer invokes the
guarantee.
5. Make it clear that you are happy for customers to invoke the
guarantee.
Question 5
1 / 1 pts
Which of the following is an alternative possible service encounter
included in the service-system design matrix?
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Face-to-face distance
Correct!
Internet
Questionnaire response
Automated teller (ATM)
Response card encounter
See Exhibit 9.3.
See Exhibit 9.3.
Question 6
1 / 1 pts
Examples of this include golf clubs, skis, beverages, auto parts, and
services sold by the firm.
Supporting facility
Correct!
Facilitating goods
Information
Explicit services
Implicit services
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Facilitating goods: The material purchased or consumed by the
buyer or the items provided to the customer. Examples are golf
clubs, skis, beverages, auto parts, and services sold by the firm.
Facilitating goods: The material purchased or consumed by the
buyer or the items provided to the customer. Examples are golf
clubs, skis, beverages, auto parts, and services sold by the firm.
Question 7
1 / 1 pts
Which of the following are alternative possible service encounters
included in the service-system design matrix?
Correct!
Mail contact
Warranty
Sales call
Field service
None of these choices are correct.
See Exhibit 9.3.
See Exhibit 9.3.
Question 8
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1 / 1 pts
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A company wants to determine where it should locate a new warehouse.
It has two existing production plants (i.e., Plant A and Plant B) that will
ship units of a product to this warehouse. Plant A is located at the (X, Y)
coordinates of (50, 100) and will have volume of shipping of 250 units a
day. Plant B is located at the (X, Y) coordinates of (150, 200) and will
have a volume of shipping of 150 units a day. Using the centroid method,
which of the following are the X and Y coordinates for the new plant
location?
(81, 117)
Correct!
(88, 138)
(117, 102)
(76, 123)
X and Y coordinates cannot be computed from the data given.
Using equation 15.1, X = (50 × 250 + 150 × 150)/(250 + 150) =
87.5 and Y = (100 × 250 + 200 × 150)/(250 + 150) = 137.5.
Using equation 15.1, X = (50 × 250 + 150 × 150)/(250 + 150) =
87.5 and Y = (100 × 250 + 200 × 150)/(250 + 150) = 137.5.
Question 9
1 / 1 pts
Setup time is the time required to prepare a process to produce a
particular item.
Correct!
true
false
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The setup time is the time required to prepare a machine to make
a particular item.
The setup time is the time required to prepare a machine to make
a particular item.
Question 10
1 / 1 pts
When recovering from a defective service encounter, a botched task calls
for material compensation.
Correct!
true
false
A botched task calls for material compensation, while poor
treatment from a server calls for an apology.
A botched task calls for material compensation, while poor
treatment from a server calls for an apology.
Question 11
1 / 1 pts
Every service has a service package, which is defined as a bundle of
goods and services that is provided in some environment. This bundle
consists of five features. Which of the following is not one of those
features?
Supporting facility
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Correct!
Omozojie Inetabor's Quiz History: Term Test 2
Explicit goods
Information
Explicit services
Implicit services
Every service has a service package, which is defined as a bundle
of goods and services that is provided in some environment. This
bundle consists of five features: supporting facility, facilitating
goods, information, explicit services, and implicit services.
Every service has a service package, which is defined as a bundle
of goods and services that is provided in some environment. This
bundle consists of five features: supporting facility, facilitating
goods, information, explicit services, and implicit services.
Question 12
1 / 1 pts
An advantage of a make-to-stock process is which of the following?
Correct!
It features rapid delivery of a standard product.
All units of output are unique.
It responds directly to customer orders.
It allows the firm to avoid inventory costs.
It combines the best features of other processes.
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This is a highly efficient make-to-stock process that produces
standard products that can be delivered quickly to the customer.
This is a highly efficient make-to-stock process that produces
standard products that can be delivered quickly to the customer.
Question 13
1 / 1 pts
A favorable business climate in facility location decision making might
include local government providing basic skill training for prospective
members of the workforce.
Correct!
true
false
Probusiness government legislation and local government
intervention to facilitate businesses locating in an area via
subsidies, tax abatements, and other support are also factors.
Probusiness government legislation and local government
intervention to facilitate businesses locating in an area via
subsidies, tax abatements, and other support are also factors.
Question 14
1 / 1 pts
The "service blueprint" is a classification of services.
true
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false
Just as is the case with manufacturing process design, the
standard tool for service process design is the flowchart. Recently,
the service gurus have begun calling the flowchart a service
blueprint to emphasize the importance of process design.
Just as is the case with manufacturing process design, the
standard tool for service process design is the flowchart. Recently,
the service gurus have begun calling the flowchart a service
blueprint to emphasize the importance of process design.
Question 15
1 / 1 pts
Hybrid processes combine features of make-to-order and make-to-stock
production processes.
Correct!
true
false
In general, hybrid processes combine the features of both maketo-order and make-to-stock.
In general, hybrid processes combine the features of both maketo-order and make-to-stock.
Question 16
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1 / 1 pts
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Plant A is located at the (X, Y) coordinates of (200, 500) and has a
volume of shipping of 400 units a day. Plant B is located at the (X, Y)
coordinates of (300, 100) and has a volume of shipping of 300 units a day.
Using the centroid method, which of the following is the X coordinate for
the new plant location?
About 208
About 227
Correct!
About 243
About 389
X coordinate cannot be computed from the data given.
Using equation 15.1, (200× 400 + 300× 300)/(400 + 300) = 242.86.
Using equation 15.1, (200× 400 + 300× 300)/(400 + 300) = 242.86.
Question 17
1 / 1 pts
Effective management of services requires a clear focus on
understanding operations, so much so that it may even require the
exclusion of consideration of marketing or personnel.
true
Correct!
false
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It is difficult to separate the operations management functions from
marketing in services.
It is difficult to separate the operations management functions from
marketing in services.
Question 18
0 / 1 pts
One of the objectives of facility location analysis is to select a site with the
lowest total cost. Which of the following costs should be excluded from
the analysis?
orrect Answer
Historical costs
ou Answered
Inbound distribution costs
Land
Construction
Regional costs
The objective is to select a site with the lowest total cost. This
includes regional costs, inbound distribution costs, and outbound
distribution costs. Land, construction, labor, taxes, and energy
costs make up the regional costs.
The objective is to select a site with the lowest total cost. This
includes regional costs, inbound distribution costs, and outbound
distribution costs. Land, construction, labor, taxes, and energy
costs make up the regional costs.
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Question 19
1 / 1 pts
Little's law says there is a long-term relationship among the inventory,
throughput, and flow time of a production system in steady state.
Correct!
true
false
Little's law says there is a long-term relationship among the
inventory, throughput, and flow time of a production system in
steady state.
Little's law says there is a long-term relationship among the
inventory, throughput, and flow time of a production system in
steady state.
Question 20
1 / 1 pts
Suppose that using the centroid method you found the best location for a
communications tower. The location happens to be in the middle of a
pond. Then, you should locate the tower
at that location using water proof concrete and precast poles.
at the closest point outside the pond.
using some other method.
Correct!
after considering qualitative factors such as geography, roads and utilities
to help find the exact location.
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None of these choices are correct.
Once it (centroid) is found, the problem should consider qualitative
factors such as geography, roads, and utilities to find an exact
location.
Once it (centroid) is found, the problem should consider qualitative
factors such as geography, roads, and utilities to find an exact
location.
Question 21
1 / 1 pts
A "process" is any part of an organization that takes inputs and transforms
them into outputs that, hopefully, are of greater value to the organization
than the original inputs.
Correct!
true
false
A process is any part of an organization that takes inputs and
transforms them into outputs that, it is hoped, are of greater value
to the organization than the original inputs.
A process is any part of an organization that takes inputs and
transforms them into outputs that, it is hoped, are of greater value
to the organization than the original inputs.
Question 22
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1 / 1 pts
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An explicit service is readily observable by the senses.
Correct!
true
false
Explicit services are defined as the benefits that are readily
observable by the senses and that consist of the essential or
intrinsic features of the service.
Explicit services are defined as the benefits that are readily
observable by the senses and that consist of the essential or
intrinsic features of the service.
Question 23
1 / 1 pts
A bottleneck occurs when a stage in a production process is starving.
true
Correct!
false
A bottleneck is the activity in a process that limits the overall
capacity of the process.
A bottleneck is the activity in a process that limits the overall
capacity of the process.
Question 24
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1 / 1 pts
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Examples of this include the response time of an ambulance, airconditioning in a hotel room, and a smooth-running car after a tune-up.
Supporting facility
Facilitating goods
Information
Correct!
Explicit services
Implicit services
Explicit services: The benefits that are readily observable by the
senses and that consist of the essential or intrinsic features of the
service. Examples are the response time of an ambulance, airconditioning in a hotel room, and a smooth-running car after a
tune-up.
Explicit services: The benefits that are readily observable by the
senses and that consist of the essential or intrinsic features of the
service. Examples are the response time of an ambulance, airconditioning in a hotel room, and a smooth-running car after a
tune-up.
Question 25
1 / 1 pts
An example of a trading bloc is which of the following?
Correct!
European Free Trade Association
Free trade zones
ISO-9000 companies
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American Production and Inventory Control Society
Walmart and its suppliers
The European Free Trade Association (EFTA) formed a trading
bloc between Norway, Iceland, Switzerland, and Liechtenstein.
The European Free Trade Association (EFTA) formed a trading
bloc between Norway, Iceland, Switzerland, and Liechtenstein.
Question 26
1 / 1 pts
Which of the following terms describes a ratio of the actual output of a
process relative to some standard.
Cycle time
Flow time
Run time
Setup time
Correct!
Efficiency
Efficiency is a ratio of the actual output of a process relative to
some standard.
Efficiency is a ratio of the actual output of a process relative to
some standard.
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Question 27
1 / 1 pts
A favorable business climate in facility location decision making might
include local government intervention to facilitate businesses locating in
an area via subsidies.
Correct!
true
false
Probusiness government legislation and local government
intervention to facilitate businesses locating in an area via
subsidies, tax abatements, and other support are also factors.
Probusiness government legislation and local government
intervention to facilitate businesses locating in an area via
subsidies, tax abatements, and other support are also factors.
Question 28
1 / 1 pts
Inventory turn is a better measure than the total value of inventory for
comparative purposes because it is a relative measure.
Correct!
true
false
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A better measure than the total value of inventory is inventory turn.
Because inventory turn scales the amount of inventory by dividing
by the cost of goods sold, this provides a relative measure that has
some comparability.
A better measure than the total value of inventory is inventory turn.
Because inventory turn scales the amount of inventory by dividing
by the cost of goods sold, this provides a relative measure that has
some comparability.
Question 29
1 / 1 pts
A process flowchart uses which of the following symbols to represent
storage areas or queues in a flow diagram?
Rectangle
Arrow
Correct!
Inverted triangle
Diamond
A dashed line
See Exhibit 11.1, legend: Flowchart Symbols.
See Exhibit 11.1, legend: Flowchart Symbols.
Question 30
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1 / 1 pts
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A process flowchart uses which of the following symbols to represent
tasks or operations in a flow diagram?
Correct!
Rectangle
Arrow
Inverted triangle
Diamond
A dashed line
See Exhibit 11.1, legend: Flowchart Symbols.
See Exhibit 11.1, legend: Flowchart Symbols.
Question 31
1 / 1 pts
The centroid method for plant location uses which of the following data?
Correct!
Volume of goods to be shipped between existing points
Inbound transportation costs
Transport times between facilities
Correlation matrix of existing facilities
Probabilities and payoffs
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See equation 15.1 and discussion. X and Y coordinates and
volume of goods are the only data used in this application of the
centroid method.
See equation 15.1 and discussion. X and Y coordinates and
volume of goods are the only data used in this application of the
centroid method.
Question 32
1 / 1 pts
Examples of this include an Internet website, a golf course, a ski lift, an
airline, and an auto repair facility.
Correct!
Supporting facility
Facilitating goods
Information
Explicit services
Implicit services
Supporting facility: The physical resources that must be in place
before a service can be offered. Examples are an Internet website,
a golf course, a ski lift, an airline, and an auto repair facility.
Supporting facility: The physical resources that must be in place
before a service can be offered. Examples are an Internet website,
a golf course, a ski lift, an airline, and an auto repair facility.
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Question 33
1 / 1 pts
Value-added time is the total of all the time that work is being done on the
unit plus all the transfer times.
true
Correct!
false
Value-added time is the time in which useful work is actually being
done on the unit.
Value-added time is the time in which useful work is actually being
done on the unit.
Question 34
1 / 1 pts
Throughput rate of a production process is the amount of time a unit
spends actually being worked on.
true
Correct!
false
The throughput rate is the output rate that the process is expected
to produce over a period of time.
The throughput rate is the output rate that the process is expected
to produce over a period of time.
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Question 35
1 / 1 pts
Little’s law states that Inventory = Throughput rate ÷ Flow time.
true
Correct!
false
Inventory = Throughput rate × Flow time.
Inventory = Throughput rate × Flow time.
Question 36
1 / 1 pts
In which of the following situations should we not use the transportation
method of linear programming?
To find a new site location for a plant
To minimize costs of shipping n units to m destinations
To maximize profits of shipping n units to m destinations
Correct!
To determine which corner of a street intersection to locate a retail service
facility
To locate a finished goods distribution warehouse
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The two common objectives of such problems (transportation
method) are to either (1) minimize the cost of shipping n units to m
destinations or (2) maximize the profit of shipping n units to m
destinations. Because the cost would not differ on the scale of a
street intersection, you would not use the transportation method of
linear programming to determine which corner of a street
intersection to locate a retail service facility.
The two common objectives of such problems (transportation
method) are to either (1) minimize the cost of shipping n units to m
destinations or (2) maximize the profit of shipping n units to m
destinations. Because the cost would not differ on the scale of a
street intersection, you would not use the transportation method of
linear programming to determine which corner of a street
intersection to locate a retail service facility.
Question 37
0 / 1 pts
One way to categorize a process is to determine whether it is a multiplestage or a single-stage process.
orrect Answer
true
ou Answered
false
The first way to categorize a process is to determine whether it is a
single-stage or a multiple-stage process.
The first way to categorize a process is to determine whether it is a
single-stage or a multiple-stage process.
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Question 38
1 / 1 pts
There are many applications of poka-yokes in service organizations.
Which of the following is one of the three-T's used to classify poka-yokes?
Talent
Teamwork
Trust
Correct!
Treatment
Time
These can be classified into warning methods, physical or visual
contact methods, and by what we call the three T's—the task to be
done (Was the car fixed right?), the treatment accorded to the
customer (Was the service manager courteous?), and the tangible
or environmental features of the service facility (Was the waiting
area clean and comfortable?).
These can be classified into warning methods, physical or visual
contact methods, and by what we call the three T's—the task to be
done (Was the car fixed right?), the treatment accorded to the
customer (Was the service manager courteous?), and the tangible
or environmental features of the service facility (Was the waiting
area clean and comfortable?).
Question 39
1 / 1 pts
Job design is defined as the function of specifying the work activities of an
individual or group in an organizational setting.
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Correct!
Omozojie Inetabor's Quiz History: Term Test 2
true
false
Job design may be defined as the function of specifying the work
activities of an individual or group in an organizational setting.
Job design may be defined as the function of specifying the work
activities of an individual or group in an organizational setting.
Question 40
1 / 1 pts
Which of the following is a plant location methodology good for locating a
single facility within a set of existing facilities based in distances and
volumes of goods shipped?
Factor-rating systems
Correct!
Centroid method
Decision trees
Linear programming
Regression analysis
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The centroid method is a technique for locating single facilities that
considers the existing facilities, the distances between them, and
the volumes of goods to be shipped.
The centroid method is a technique for locating single facilities that
considers the existing facilities, the distances between them, and
the volumes of goods to be shipped.
Question 41
1 / 1 pts
Methods Time Management (MTM) and Most Work Measurement System
(MOST) are proprietary examples of predetermined motion-time data
systems (PMTSes).
Correct!
true
false
The two indirect methods are predetermined motion-time data
systems (PMTS), which sum data from tables of generic
movement times developed in the laboratory to arrive at a time for
the job, and elemental data, which sums times from a database of
similar combinations of movements to arrive at job time.
The two indirect methods are predetermined motion-time data
systems (PMTS), which sum data from tables of generic
movement times developed in the laboratory to arrive at a time for
the job, and elemental data, which sums times from a database of
similar combinations of movements to arrive at job time.
Question 42
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1 / 1 pts
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Make-to-order production processes are well suited for high-volume
production of a standardized product.
true
Correct!
false
This is a highly efficient make-to-stock process that produces
standard products that can be delivered quickly to the customer.
This is a highly efficient make-to-stock process that produces
standard products that can be delivered quickly to the customer.
Question 43
1 / 1 pts
Most services consist of a bundle of goods and services known as the
service package, which is the major output of the development process.
Correct!
true
false
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Every service has a service package, which is defined as a bundle
of goods and services that is provided in some environment. The
service package, rather than a definable good, constitutes the
major output of the development process.
Every service has a service package, which is defined as a bundle
of goods and services that is provided in some environment. The
service package, rather than a definable good, constitutes the
major output of the development process.
Question 44
1 / 1 pts
Inventory turn is the cost of goods sold divided by the average inventory
value.
Correct!
true
false
Another measure is the firm's inventory turn, which is the cost of
goods sold divided by the average inventory value.
Another measure is the firm's inventory turn, which is the cost of
goods sold divided by the average inventory value.
Question 45
1 / 1 pts
Because little or no inventory is carried in a service operation, it is easy to
separate the operations management functions from marketing in
services.
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true
Correct!
false
Too much capacity generates excessive costs. Insufficient capacity
leads to lost customers. In these situations, of course, we seek the
assistance of marketing. This is one reason we have discount
airfares, hotel specials on weekends, and so on. This is also a
good illustration of why it is difficult to separate the operations
management functions from marketing in services.
Too much capacity generates excessive costs. Insufficient capacity
leads to lost customers. In these situations, of course, we seek the
assistance of marketing. This is one reason we have discount
airfares, hotel specials on weekends, and so on. This is also a
good illustration of why it is difficult to separate the operations
management functions from marketing in services.
Question 46
1 / 1 pts
Facility location analysis considers proximity to customers important to
timeliness of deliveries.
Correct!
true
false
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Japan's NTN Driveshafts Inc. built a major plant in Columbus,
Indiana, to be closer to major automobile manufacturing plants in
the United States whose buyers want their goods delivered
yesterday.
Japan's NTN Driveshafts Inc. built a major plant in Columbus,
Indiana, to be closer to major automobile manufacturing plants in
the United States whose buyers want their goods delivered
yesterday.
Question 47
1 / 1 pts
Which of the following is not an infrastructure criteria used in facility
location analysis?
Adequate school system
Adequate health care
Adequate transportation
Correct!
Adequate low-cost labor
Adequate public utility systems
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Labor is not an infrastructure criterion. Quality of labor is, but low
cost labor is not mentioned. Infrastructure criteria mentioned
include adequate road, rail, air, and sea transportation; energy and
telecommunications; and the local government's willingness to
invest in upgrading infrastructure to the levels required.
Labor is not an infrastructure criterion. Quality of labor is, but low
cost labor is not mentioned. Infrastructure criteria mentioned
include adequate road, rail, air, and sea transportation; energy and
telecommunications; and the local government's willingness to
invest in upgrading infrastructure to the levels required.
Question 48
0 / 1 pts
The operation time is the sum of the setup time, run time, and transfer
time for a batch of parts that are run on a machine.
ou Answered
true
orrect Answer
false
The operation time is the sum of the setup time and run time for a
batch of parts that are run on a machine.
The operation time is the sum of the setup time and run time for a
batch of parts that are run on a machine.
Question 49
0 / 1 pts
Cycle time and flow time mean about the same thing.
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orrect Answer
true
ou Answered
false
In practice, the term cycle time is often used to mean flow time.
In practice, the term cycle time is often used to mean flow time.
Question 50
1 / 1 pts
"Combine the pain" is an application of behavioral science to service
encounters. It means that, when something is going wrong for a group of
customers, it is better to totally enrage one or a very few customers rather
than slightly annoying a large number of customers.
true
Correct!
false
Events seem longer when they are segmented. This suggests that
we want to break pleasant experiences into multiple stages and
combine unpleasant ones into a single stage.
Events seem longer when they are segmented. This suggests that
we want to break pleasant experiences into multiple stages and
combine unpleasant ones into a single stage.
Question 51
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1 / 1 pts
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In the service-system design matrix, a mail contact service encounter is
expected to have which of the following?
High sales opportunity
High degree of customer/server contact
High production efficiency
Correct!
Low sales opportunity
None of these choices are correct.
See Exhibit 9.3.
See Exhibit 9.3.
Question 52
1 / 1 pts
In the service-system design matrix, a face-to-face loose specs service
encounter is expected to have which of the following?
Low sales opportunity
Correct!
Low production efficiency
High production efficiency
Low degree of customer/server contact
None of these choices are correct.
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See Exhibit 9.3.
See Exhibit 9.3.
Question 53
1 / 1 pts
A supporting facility is the same thing as a facilitating good.
true
Correct!
false
A supporting facility is the physical resources that must be in place
before a service can be offered. A facilitating good is the material
purchased or consumed by the buyer or the items provided by the
customer.
A supporting facility is the physical resources that must be in place
before a service can be offered. A facilitating good is the material
purchased or consumed by the buyer or the items provided by the
customer.
Question 54
1 / 1 pts
Process velocity is the ratio of the total throughput time to the value added
time.
Correct!
true
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false
Process velocity (also known as throughput ratio) is the ratio of the
total throughput or flow time to the value-added time. Value-added
time is the time in which useful work is actually being done to the
unit.
Process velocity (also known as throughput ratio) is the ratio of the
total throughput or flow time to the value-added time. Value-added
time is the time in which useful work is actually being done to the
unit.
Question 55
1 / 1 pts
Facility location analysis considers the competitive imperative of locating
near the appropriate labor pool to take advantage of low wage costs
and/or skill levels.
Correct!
true
false
The educational and skill levels of the labor pool must match the
company's needs.
The educational and skill levels of the labor pool must match the
company's needs.
Question 56
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Run time is calculated by multiplying the number of units in a batch by the
setup time.
true
Correct!
false
Run time is the time required to produce a batch of parts. This is
calculated by multiplying the time required to produce each unit by
the batch size.
Run time is the time required to produce a batch of parts. This is
calculated by multiplying the time required to produce each unit by
the batch size.
Question 57
1 / 1 pts
Consider a three sequentially stepped process named as Process A,
Process B, and Process C. Input comes into Process A. Output from A
goes into Process B. Output from B goes into Process C. Output of C is
the final output. Suppose that it takes 2 minutes per unit in Process A, 3
minutes per unit in Process B and 1 minute per unit in Process C.
Suppose further that Process A receives input at the rate of 30 per hour.
Where would you place a buffer?
in front of Process A
Correct!
in front of Process B
in front of Process C
in front of both Process B and Process C
None of these choices are correct.
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Process A takes 2 minutes per unit and hence can process (60/2)
= 30 units per hour. Process B can process only (60/3) = 20 per
hour. Process C can handle (60/1) = 60 units per hour. Hence you
must place a buffer in front of Process B.
Process A takes 2 minutes per unit and hence can process (60/2)
= 30 units per hour. Process B can process only (60/3) = 20 per
hour. Process C can handle (60/1) = 60 units per hour. Hence you
must place a buffer in front of Process B.
Question 58
1 / 1 pts
Which of the following is a characteristic that can be used to guide the
design of service systems?
Correct!
Services cannot be inventoried.
Services are all similar.
Quality work means quality service.
Services businesses are inherently entrepreneurial.
Even service businesses have internal services.
In designing service organizations, we must remember one
distinctive characteristic of services: We cannot inventory services.
In designing service organizations, we must remember one
distinctive characteristic of services: We cannot inventory services.
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Question 59
1 / 1 pts
Which company is mentioned in the text as a pioneering of the
production-line approach to delivering on-site service?
Ritz-Carlton Hotel Company
Correct!
McDonald's Corporation
Prudential Insurance Company
Southwest Airlines
Citibank
The production-line approach pioneered by McDonald's refers to
more than just the steps required to assemble a Big Mac. Rather,
as Theodore Levitt notes, it treats the delivery of fast food as a
manufacturing process rather than a service process.
The production-line approach pioneered by McDonald's refers to
more than just the steps required to assemble a Big Mac. Rather,
as Theodore Levitt notes, it treats the delivery of fast food as a
manufacturing process rather than a service process.
Question 60
1 / 1 pts
The local government's willingness to invest in upgrading infrastructure to
the levels required by a company is an important issue in a company's
decision of where to locate a new facility.
Correct!
true
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false
The local government's willingness to invest in upgrading
infrastructure to the levels required may be an incentive to select a
specific location.
The local government's willingness to invest in upgrading
infrastructure to the levels required may be an incentive to select a
specific location.
5 / 5 pts
Question 61
How do facility location decisions differ for service facilities and
manufacturing plants?
Your Answer:
Parameters
Access
Service Facility
Manufacturing Plant
Convenient for target
Convenient for
employees working
customers & employees
Very important while
Visibility
Location
restriction
selecting the location &
preparing layout
there
Not an important
parameter
Lesser restriction. Service
More Restriction: To
facilities are generally close
be located far from
to the customers & near to
habitat area.
habitat area
Governmental
Less approvals required
More approvals
approvals
while selecting the location
required while
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requirement
selecting the location
Land cost/area
Cost per unit area is slightly Cost per area may be
higher
higher or lesser
Location
Location near to competitors Location near to
proximity
& customers
suppliers & customers
Immediate surroundings
Peaceful area to work.
should complement the
service
No adverse effect on
environment
Environment
Question 62
5 / 5 pts
Describe cycle time as it relates to business processes. Why is it
important to the management of business processes? How does it relate
to concepts like productivity and capacity utilization?
Your Answer:
Cycle time is the average time between completions of successive units in
a process. It is directly related to the output capacity of the system - as
cycle time is reduced, the process can produce more units in the same
period of time, increasing the best operating level used in capacity
analysis. Without an actual increase in production volume, capacity
utilization will decrease as cycle time decreases but productivity remains
the same. As the process produces more output per time period,
productivity and capacity utilization will then increase. From a business
standpoint, cycle time motivates you to pay close attention to different
aspects of your business processes and to thoughtfully consider the
changes that will be advantageous to you. Basically, an organization
gains a competitive edge in the market if its cycle time is lower than that
of its rivals. In light of this, customers will favor them more generally.
Shorter cycle time implies that the organization is very efficient; lower cost
and time spent is lesser and hence Profitability and ROI increases.
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Question 63
5 / 5 pts
Explain how having more work-in-process inventory can improve the
efficiency of a process? How can this ever be bad?
Your Answer:
WIP inventory is your good in inventory that are still in the process to be
completed . They are still not completed but soon will be . This process
can be very beneficial , but can also be very harmful as well . It can
improve the efficiency of a process because you know what your end goal
for the day , week , month or year . Knowing this you can have them
ready by a certain time . With this process you can push out orders for
customers and provide them with good much faster than other firms or
companies . The product is already at 75 - 90 % done and you would be
able to convert them to finished good mush faster thereby increasing the
efficiency . The harmful part comes by having these items at 75 - 90 %
done ; this means that the product will take more warehouse floor space .
More products in WIP means more product taking up space . Having
more products in WIP may signal that the company is not running
efficiently .
Quiz Score: 70 out of 75
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