Question 1

The balanced scorecard approach relies not only on financial performance measures,but includes customers,internal business processes,and organizational learning and growth.

Accepted Answer

The statement is true. The balanced scorecard approach emphasizes a broader perspective on performance measurement, with a focus on four interrelated perspectives: financial, customer, internal processes, and learning and growth.

Question 2

Among the best-known companies that use customer satisfaction surveys to evaluate service quality in various industries is:
A)J)D.Power and Associates
B)McDonald's
C)American Express
D)Alaska Airlines

Accepted Answer

J.D. Power and Associates is a global marketing company that specializes in market research and data analytics. They are known for their customer satisfaction surveys, which cover various industries such as automotive, financial services, healthcare, and more. Their surveys provide valuable insights into customer experiences and help companies improve their service quality.

Question 3

Which of the following is NOT a problem commonly found when monitoring?
A)Organizations collect data that are easily gathered
B)Gathered data are not the most important to reach the organization's goals
C)There is an undue emphasis on measuring objective output performance
D)Inputs measurements are used as a proxy for output completion

Accepted Answer

C

Question 4

Benchmarking is a process that helps compare a company against its competitors on a variety of relevant indicators.

Accepted Answer

Benchmarking is a process of measuring a company's performance against its competitors or industry standards to identify areas where improvements can be made.

Question 5

There are five stages of effectiveness in terms of the role their operations play in terms of strategic business objectives.

Accepted Answer

There are four stages of effectiveness in terms of the role operations play in strategic business objectives: internally neutral, externally neutral, internally supportive, and externally supportive.

Question 6

Which one of the following perceptual measures corresponds to a company that is in the internally neutral stage of operational effectiveness?
A)Outside experts are called in for strategic decisions
B)Aim is to achieve competitive parity
C)A manufacturing strategy is formulated and pursued
D)Goal is to achieve competitive superiority

Accepted Answer

The answer of Which one of the following perceptual measures...

Question 7

As control involves both mechanistic and human elements,it is one of the manager's most difficult tasks.Which of the following is the best answer about desirable characteristics of control systems?
A)Should be as simple as possible to operate and maintain
B)Should signal managers if they go out of order
C)Should be focused and admit the least amount of variation
D)Both A and B

Accepted Answer

Both options A and B are desirable characteristics of control systems. Option A states that control systems should be simple to operate and maintain, which is important to reduce errors and ensure consistency in the control process. Option B states that control systems should signal managers when they go out of order, which is equally important to ensure that corrective action can be taken promptly. Option C may not always be desirable as too much focus and admission of limited variation can lead to rigidity in the control process, which may not be suitable for all situations. Therefore, the best choice is D, which includes both desirable characteristics of control systems.

Question 8

Which of the following characteristics makes it EASIER to measure the quality of a service,relative to that of a product or facilitating good?
A)Service portions are abstract,rather than concrete
B)Service portions are transient,rather than permanent
C)Service portions are psychological,rather than physical
D)None of the above characteristics make it easier to measure service quality

Accepted Answer

Service quality is generally harder to measure than product quality due to its intangible, transient, and psychological nature.

Question 9

Departments within a stage 2 organization may exhibit a stage 3 orientation,thereby upgrading the organization to a stage 3 categorization.

Accepted Answer

The presence of departments within a stage 2 organization exhibiting a stage 3 orientation does not automatically upgrade the entire organization to a stage 3 categorization. Organizational stages are determined by the overall characteristics, practices, and culture of the organization, not just by parts of it.

Question 10

Which one of the following perceptual measures corresponds to a company that is in the internally supportive stage of operational effectiveness?
A)Outside experts are called in for strategic decisions
B)Aim is to achieve competitive parity
C)A manufacturing strategy is formulated and pursued
D)Goal is to achieve competitive superiority

Accepted Answer

The formulation and pursuit of a manufacturing strategy indicates that the company is focused on internal operations and improving efficiency, which is characteristic of the internally supportive stage of operational effectiveness. Choices A, B, and D do not specifically indicate this stage of development.

Question 11

Which of the following statements is FALSE?
A)ISO is a strictly European standard
B)ISO 9000 and ISO 14000 are two of the best known ISO standards
C)ISO 14000 has been updated in December 2008 and is known as ISO 14000:2008
D)Over 630,000 organizations in 152 countries have implemented ISO standards

Accepted Answer

The answer of Which of the following statements is FALSE?
A)ISO...

Question 12

In this stage of operational effectiveness,organizations use core capabilities residing in the operations area to obtain a sustainable competitive advantage.
A)Stage 1,internally supportive
B)Stage 2,externally neutral
C)Stage 3,internally supportive
D)Stage 4,externally supportive

Accepted Answer

Stage 4, also known as externally supportive stage, refers to the stage in which an organization uses its core capabilities in operations to achieve a sustainable competitive advantage in the market. This involves not only internal support but also external support, such as building strong relationships with suppliers, partners, and customers. Therefore, option D is the most appropriate choice.

Question 13

Some benefits of the balanced scorecard include:
A)It helps align departmental and personal goals to the organization
B)It is an effective way to clarify and gain authority within the organization
C)It is a mechanism for aligning personal goals with societal goals
D)It helps organizations track their competitors

Accepted Answer

The balanced scorecard is a tool that helps organizations align their departmental and personal goals with the overall organizational goals. It allows for better communication and understanding of how different departments and individuals contribute to the success of the organization.

Question 14

One of the most common errors when monitoring data is to gather information that has little or no probability of changing significantly from one collection period to the next.

Accepted Answer

This statement is true. It is important to focus on collecting data that is likely to change or is relevant to the problem being studied in order to avoid wasting time and resources on unnecessary data collection.

Question 15

Which of the following distributions can best represent the number-of-defects c chart?
A)Dichotomous
B)Poisson
C)Binomial
D)Chi square

Accepted Answer

Poisson distribution is used to represent the number of defects in a c chart.

Question 16

Which of the following is NOT a step in constructing control charts?
A)Initial samples of the process to be monitored need to be taken
B)Means and ranges for the samples must be calculated
C)Deriving the means by the ranges previously calculated
D)Graphing sample means and ranges chronologically

Accepted Answer

The step of deriving the means by the ranges previously calculated is not part of constructing control charts. Instead, means and ranges are used to calculate control limits and plot the data on a control chart graph.

Question 17

Which of the following is FALSE regarding statistical sampling for control purposes?
A)The more samples are taken,the higher the likelihood of accidentally selecting a sample with excessive values when the process actually is still under control
B)Deciding what indicators are high or low enough to be considered out of control is the simplest of the problems facing operation managers
C)Measuring upper and lower control limits are the basis for management by exception
D)Using high thresholds for control increases the risk of not detecting processes that are getting out of control

Accepted Answer

Deciding what indicators are high or low enough to be considered out of control is not a simple problem as it requires analysis and consideration of various factors such as historical data, process variability, and the impact on overall business goals. The other options are true statements about statistical sampling for control purposes.

Question 18

With respect to strategy maps and balanced scorecards,which of the following is FALSE?
A)Both address four perspectives: financial,customer,internal business process,and learning and growing perspectives
B)Strategy maps represent an easier way to develop a balanced scorecard
C)Both serve to monitor the cause-and-effect relationships identified through the development of a balanced scorecard
D)Employees' understanding of strategy interactions is enhanced through their use

Accepted Answer

Strategy maps are not necessarily easier to develop than balanced scorecards. In fact, strategy maps are often used as a tool to help develop a balanced scorecard.

Question 19

Service defections are important in process control for services because:
A)No advertising is necessary to get the business of long-term customers
B)They are equally important to organizations that produce tangible outputs
C)A customer who takes their business elsewhere is analogous to a product defect
D)Long-time customers are more likely to purchase additional products

Accepted Answer

Service defections are important in process control for services because when a customer takes their business elsewhere, it is similar to a product defect in a manufacturing process. It indicates that there was an issue with the service provided, and analyzing the reasons for the defection can help improve the service and prevent future defections.

Question 20

FMEA stands for:
A)Fail safe Mode and Effectuation Analysis
B)Failure in Massive Effects Analysis
C)Failure Mode in Eviction Analytics
D)Failure Mode and Effect Analysis

Accepted Answer

FMEA stands for Failure Mode and Effect Analysis. It is a structured approach used to identify and assess potential failures and their effects on a system, process, or product.

Quiz 3: Controlling Processes

The balanced scorecard approach relies not only on financial performance measures,but includes customers,internal business processes,and organizational learning and growth.

Among the best-known companies that use customer satisfaction surveys to evaluate service quality in various industries is:

Which of the following is NOT a problem commonly found when monitoring?

Benchmarking is a process that helps compare a company against its competitors on a variety of relevant indicators.

There are five stages of effectiveness in terms of the role their operations play in terms of strategic business objectives.

Which one of the following perceptual measures corresponds to a company that is in the internally neutral stage of operational effectiveness?

As control involves both mechanistic and human elements,it is one of the manager's most difficult tasks.Which of the following is the best answer about desirable characteristics of control systems?

Which of the following characteristics makes it EASIER to measure the quality of a service,relative to that of a product or facilitating good?

Departments within a stage 2 organization may exhibit a stage 3 orientation,thereby upgrading the organization to a stage 3 categorization.

Which one of the following perceptual measures corresponds to a company that is in the internally supportive stage of operational effectiveness?

Which of the following statements is FALSE?

In this stage of operational effectiveness,organizations use core capabilities residing in the operations area to obtain a sustainable competitive advantage.

Some benefits of the balanced scorecard include:

One of the most common errors when monitoring data is to gather information that has little or no probability of changing significantly from one collection period to the next.

Which of the following distributions can best represent the number-of-defects c chart?

Which of the following is NOT a step in constructing control charts?

Which of the following is FALSE regarding statistical sampling for control purposes?

With respect to strategy maps and balanced scorecards,which of the following is FALSE?

Service defections are important in process control for services because:

FMEA stands for: