Question 1

Efficiency refers to goods and services that are reliable,dependable,and satisfying,and that do the job they were designed for.

Accepted Answer

Efficiency refers to the amount of inputs required to produce a given output.

Question 2

Most organizations focus on partial productivity to measure the efficiency of an individual unit.

Accepted Answer

Though sometimes a useful measure of efficiency overall,total factor productivity obscures the exact contribution of an individual input to the production of a given output.Consequently,most organizations focus on specific measures of efficiency,known as partial productivity,that measure the efficiency of an individual unit.

Question 3

Customer relationship management (CRM)is a technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time.

Accepted Answer

Customer relationship management (CRM)is a technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time.CRM IT monitors,controls,and links each of the functional activities involved in marketing,selling,and delivering products to customers.

Question 4

Quality refers to the amount of inputs that are required to produce a given output.

Accepted Answer

Quality refers to goods and services that are reliable,dependable,or psychologically satisfying: They do the job they were designed for and do it well,or they possess some attribute that gives their users something they value.

Question 5

Total factor productivity isolates the exact contribution of an input to the production of a given output.

Accepted Answer

Sometimes a useful measure of efficiency overall,total factor productivity obscures the exact contribution of an individual input-such as labor-to the production of a given output.

Question 6

Profit-seeking organizations have customers,but not-for-profit organizations do not have customers.

Accepted Answer

All organizations,profit seeking or not-for-profit,have customers.Without customers,most organizations would cease to exist.

Question 7

Improving product quality increases the operating costs of the organization.

Accepted Answer

Achieving high product quality lowers operating costs because of the effect of quality on employee productivity.Higher product quality means less employee time is wasted in making defective products that must be discarded or in providing substandard services,and thus less time has to be spent fixing mistakes.

Question 8

A production system is the system that an organization uses to acquire inputs,convert inputs into outputs,and dispose of the outputs.

Accepted Answer

A production system is the system that an organization uses to acquire inputs,convert inputs into outputs,and dispose of the outputs.

Question 9

Customers prefer products that are,as far as possible,customized to their unique needs.

Accepted Answer

Customers prefer products that are,as far as possible,customized or tailored to their unique needs.Customers also prefer low prices,products of high quality and quick services.

Question 10

Management experts recommend that an organization should define its business in terms of the products it is producing,and not in terms of the customer needs that it is attempting to satisfy.

Accepted Answer

Management writers recommend that organizations define their business in terms of which customer wants or needs they are satisfying,not the type of products they are producing.

Question 11

CRM systems have two interconnected components,sales and selling and after-sales service and support.

Accepted Answer

CRM systems have three interconnected components,sales and selling,after-sales service and support,and marketing.CRM IT monitors,controls,and links each of the functional activities involved in marketing,selling,and delivering products to customers.

Question 12

Responsiveness to customers refers to actions taken to meet the demands and needs of customers.

Accepted Answer

Responsiveness to customers refers to actions taken to meet the demands and needs of customers.

Question 13

To increase quality,managers should embrace the philosophy that mistakes,defects,and poor-quality materials should be limited to 0.5 percent of total production.

Accepted Answer

To increase quality,managers need to develop strategic plans that state goals exactly and spell out how they will be achieved.Managers should embrace the philosophy that mistakes,defects,and poor-quality materials are not acceptable and should be eliminated.

Question 14

Operations managers are managers who are responsible for managing an organization's production system.

Accepted Answer

Operations managers are managers who are responsible for managing an organization's production system.They do whatever it takes to transform inputs into outputs.

Question 15

Higher quality translates into higher employee productivity,which means lower costs for the organization.

Accepted Answer

Achieving high product quality lowers operating costs because of the effect of quality on employee productivity: Higher product quality means less employee time is wasted in making defective products that must be discarded or in providing substandard services,and thus less time has to be spent fixing mistakes.This translates into higher employee productivity,which means lower costs.

Question 16

The major advantage of total factor productivity is that each input is typically measured in the same units.

Accepted Answer

The problem with total factor productivity is that each input is typically measured in different units: Labor's contribution,the contribution of materials,the contribution of energy,and so on.To compute total factor productivity,managers must convert all the inputs to a common unit before they can work the equation.

Question 17

The concept of "quality" can be applied only to manufacturing organizations,but not to service organizations.

Accepted Answer

Quality is a concept that can be applied to the products of both manufacturing and service organizations-goods such as a Toyota car or services such as Southwest Airlines flight service or customer service in a Citibank branch.

Question 18

A CRM system can be used as a comprehensive method of gathering crucial information about the way customers respond to a company's products.

Accepted Answer

A CRM system can be used as a comprehensive method of gathering crucial information about the way customers respond to a company's products.

Question 19

Attributes of an organization's outputs-their quality,cost,and features-are determined by the organization's production system.

Accepted Answer

Because satisfying customers is so important,managers try to design production systems that can produce the outputs that have the attributes a customer desires.The attributes of an organization's outputs-their quality,cost,and features-are determined by the organization's production system.

Question 20

Managers should create an environment in which subordinates will not be afraid to report problems or recommend improvements.

Accepted Answer

First-line managers should spend more time working with nonmanagerial employees and providing them with the tools they need to do the job.Managers should create an environment in which subordinates will not be afraid to report problems or recommend improvements.

Quiz 14: Operations Management: Managing Vital Operations and Processes

Efficiency refers to goods and services that are reliable,dependable,and satisfying,and that do the job they were designed for.

Most organizations focus on partial productivity to measure the efficiency of an individual unit.

Customer relationship management (CRM)is a technique that uses IT to develop an ongoing relationship with customers to maximize the value an organization can deliver to them over time.

Quality refers to the amount of inputs that are required to produce a given output.

Total factor productivity isolates the exact contribution of an input to the production of a given output.

Profit-seeking organizations have customers,but not-for-profit organizations do not have customers.

Improving product quality increases the operating costs of the organization.

A production system is the system that an organization uses to acquire inputs,convert inputs into outputs,and dispose of the outputs.

Customers prefer products that are,as far as possible,customized to their unique needs.

Management experts recommend that an organization should define its business in terms of the products it is producing,and not in terms of the customer needs that it is attempting to satisfy.

CRM systems have two interconnected components,sales and selling and after-sales service and support.

Responsiveness to customers refers to actions taken to meet the demands and needs of customers.

To increase quality,managers should embrace the philosophy that mistakes,defects,and poor-quality materials should be limited to 0.5 percent of total production.

Operations managers are managers who are responsible for managing an organization's production system.

Higher quality translates into higher employee productivity,which means lower costs for the organization.

The major advantage of total factor productivity is that each input is typically measured in the same units.

The concept of "quality" can be applied only to manufacturing organizations,but not to service organizations.

A CRM system can be used as a comprehensive method of gathering crucial information about the way customers respond to a company's products.

Attributes of an organization's outputs-their quality,cost,and features-are determined by the organization's production system.

Managers should create an environment in which subordinates will not be afraid to report problems or recommend improvements.