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Exam 3: Measuring Performance in Operations

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Question 31

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The only important measurement category in business is financial.

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Question 32

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A guest at Raphael's Italian Restaurant generally spends $150.00 on a meal. Most of Raphael's customers are local and eat at the restaurant twice a month. If the restaurant's margins are 60 percent, and a loyal customer is estimated to be worth $3000, determine the average defection rate.

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VLC = P * CM * RF * BLC
3000 =...

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Question 33

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Define interlinking. Why is this concept significant?

The number of patent applications and the number of improvement suggestions implemented relate best to which operational performance measure category?

Productivity is the

Measures and indicators of product and service performance that have a strong correlation with customer satisfaction are appropriate to monitor.

At a basic level, quality should be measured in three areas. Which of the following is not one of those areas?

Which of the following would be a typical operational-level quality performance measure?

The value chain model is probably the dominant model for operations managers.

The service-profit chain model

Although the award from the Malcolm Baldrige National Quality Award Framework receives the most attention, the primary purpose of the program is to provide a framework for performance excellence through self-assessment to understand an organization's strengths and weaknesses, thereby setting priorities for improvement.

A retail store sells a popular cosmetic called Devine and the store manager was given $100,000 by the corporate office to improve store performance any way she thinks best. The "base case" information is a price of $30 per bottle, a contribution margin of 0.50, a customer defection rate of 17%, and a repurchase frequency of 3 times a year. If these improvement funds could be used to either increase the contribution margin to 0.58 or reduce the customer defection rate to 15% or increase the repurchase frequency to 4 times per year, what is the best way to spend these funds? (Assume all other variables remain at the base case level for each improvement option.) You may want to use the table below to help organize your computations and answer. Note: BLC is 1/.17 = 5.882 years and 1/.15 = 6.67 years.

Briefly discuss the four performance perspectives of the Balanced Scorecard Model.

Good customer satisfaction measurement systems are designed to provide information about future buying behavior.

Of the seven categories of the Malcolm Baldrige National Quality Award criteria, which is least relevant to an operations manager?

Errors in service creation and delivery are sometimes called service upsets.

Employee satisfaction might be considered as a lagging indicator of employee turnover.

Which of the following is not a key dimension of service quality?

Explain the concepts underlying the service-profit chain model.

The balanced scorecard model uses the same categories as the Baldrige Award.