Service Management Operations Strategy Information Technology 8th Edition By James A. Test Bank

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Service Management Operations Strategy Information Technology 8th Edition By James A. Test Bank


Service Management Operations Strategy Information Technology 8th Edition By James A. Test Bank




  1. The concept of quality service deployment is based on the belief that services should be designed to reflect customer requirements. (T)
  2. Being meaningful and easy to invoke are important elements of a good unconditional service guarantee. (T)
  3. A process is said to be in control when all the variation that is noticed can be assigned to specific causes. (F)
  4. The first stage or rung of the service quality ladder is cost of quality. (F)
  5. The average business hears only from 10 percent of its dissatisfied customers. (F)
  6. The systematic-response approach to service recovery uses a protocol to handle customer complaints. (T)


  1. The term producers risk refers to the probability that a sample will indicate an acceptable quality incorrectly. (F)
  2. A service guarantee becomes a service winner when it covers all aspects of the service. (T)
  3. When customer expectations are confirmed by perceptions, service quality is considered satisfactory. (T)
  4. According to the SERVQUAL quality assessment instrument, responsiveness is the most important dimension of service quality. (F)
  5. Serving complimentary drinks on a delayed flight is an example of empathy being shown by the service personnel to the irate customer. (F)
  6. In the service quality gap model, GAP1 arises because of the managements lack of understanding about how customers formulate their expectations. (T)
  7. Setting goals and standardizing service delivery tasks will help close GAP3, the service performance gap. (F)
  8. The most important function of SERVQUAL is to keep a record of service quality trends through periodic customer surveys. (T)
  9. Managing evidence of information is the key to closing the gap between customer perception and service delivery. (T)
  10. Severity of failure, speed of recovery, service guarantee and perceived service quality are all factors governing service recovery expectations. (F)
  11. A customers failure to remember the process steps is an error that falls in the preparation category. (F)
  12. Juran identified internal failure costs, external failure costs, detection costs, and prevention costs. (T)
  13. Fixing service-process problems before they affect the customer could be classified as another component to the systematic-response approach. (T)
  14. The Walk-through Audit focuses on the effectiveness of each stage in the service delivery process (T)
  15. The Club Med example illustrated the creative initiative by staff to implement a pre-recovery. (F)



Multiple Choice

  1. Which of the following dimensions of service quality is most important to customers?
  2. Empathy
  3. Assurance
  4. Reliability*
  5. Tangibles
  6. Which of the following is not an advantage of offering a service guarantee?
  7. It acts as a mechanism to differentiate the firm from its competitors.
  8. It advertises the firms commitment to quality.
  9. It allows employees to interpret broadly the firms service standards.*
  10. It acts as a means of receiving feedback from customers.
  11. Which of the following is a poka-yoke method?
  12. Adopting a checklist to help an employee avoid making a mistake*
  13. Designing a service to reflect the customers needs and requirements
  14. Designing a service in a robust manner that can withstand abuse by customers
  15. Comparing a firms quality performance to the performance of others that are considered best in class
  16. Which one of the following is not an approach to service recovery.
  17. case-by-case
  18. systematic-response
  19. unconditional guarantee*
  20. early intervention
  21. The costs of quality for services include all of the following except:
  22. failure costs.
  23. prevention costs.
  24. control costs.*
  25. detection costs



  1. A gap in service quality is not the difference between:
  2. customer expectations and managements perceptions of customer expectations.
  3. the service delivery and the results that are communicated externally to the customer.
  4. customer expectations and managements perception of the delivered service.*
  5. the perceptions of the delivered service that are translated into service quality specifications and the actual service delivery.
  6. Which one of the following is not an example of detection costs?
  7. Rework*
  8. Collecting quality data
  9. Process control
  10. Periodic inspection
  11. Which of the following is not considered effective in achieving and maintaining service quality?
  12. Encouraging service providers to be highly visible in dealing with customers.
  13. Establishing peer groups among service providers to foster teamwork and a sense of pride.
  14. Installing a system of incentives that emphasizes quality.
  15. Increasing supervision of service providers.*
  16. Which of the following is not part of a good service guarantee?
  17. It is unconditional.
  18. It is easy for the customer to understand.
  19. It is meaningful to the customer.
  20. It is difficult for the customer to invoke.*



  1. All of the following are examples of detection costs of quality except
  2. Quality planning.*
  3. Periodic inspection.
  4. Process control.
  5. Collecting quality data.
  6. Which quadrant in the matrix below represents attributes of a good service guarantee?
  No Conditions Many Conditions
Complex Detailed (a) (b)
Clear Precise   (c)* (d)




  1. Which of the following is a strategy for closing the gap between customer expectations and management perceptions of customers expectations (GAP 1)?
  2. Standardization of service delivery.
  3. Improved market research.*
  4. Employee empowerment.
  5. Investment in training.
  6. Which of the following statements is not true concerning a service guarantee?
  7. A well designed and implemented service guarantee can help a firm gain control over its operation
  8. Fear of customer cheating inhibits some mangers from adopting a service guarantee.
  9. Managers are likely to worry about the costs of a service guarantee, but for the wrong reasons.
  10. Managers who seek control over the financial consequences of a service guarantee should require customers to meet various conditions.*



  1. There are five dimensions that customers use to judge service quality. The willingness to help customers and to provide prompt service is
  2. *
  3. Shigeo Shingo is credited with which of the following quality ideas?
  4. robustness
  5. quality is free
  6. poka-yoke*
  7. quality function deployment
  8. When a process appears to be functioning properly when, if fact, it is out of control, the type of error and injured party is identified as:
  9. Type I error, producers risk
  10. Type II error, consumers risk*
  11. Type I error, consumers risk
  12. Type II error, producers risk
  13. The difference between a customers ________ of a service and the _______ of the service delivered is called GAP 5.
  14. perceptions; perceptions
  15. perceptions; expectations
  16. expectations; perceptions*
  17. expectations; expectations
  18. Which of the following is not a reason that a service guarantee works?
  19. Encourages individual employees to set their own standards.*
  20. Generates reliable data on poor performance.
  21. Builds customer loyalty.
  22. Forces a firm to identify failure points.



  1. Which of the following is not true of a Customer Satisfaction Survey?
  2. Survey can be completed at customer convenience.
  3. Survey usually is conducted by operations personnel.*
  4. Primary focus of survey is on overall impression of service.
  5. Survey is designed around common service dimensions.
  6. Which of the following is not possible using SERVQUAL?
  7. Record customer expectations.
  8. Track service quality trends.
  9. Measure the quality of competitors.
  10. Identify dimensions of service quality.*
  11. Which of the following is not true of a Walk-through Audit?
  12. Focuses on five dimensions of service package.
  13. Emphasis is on evaluation of each stage of service delivery.
  14. Survey is completed at customer convenience.*
  15. Survey usually conducted by operations personnel.





  1. DEA circumvents the need to develop standard costs for each service when comparing the efficiency of multiple service units that provide similar services. (T)
  2. Data envelopment analysis (DEA) is best used in an environment of low divergence and high complexity. (F)
  3. Data Envelopment Analysis (DEA), when used repeatedly, can facilitate the competitive strategy of cost leadership. (T)
  4. Continuous improvement is a valuable concept, but it lacks measurement techniques. (F)
  5. The Malcolm Baldrige Quality Award measures the quality of products manufactured or services delivered. (F)
  6. Benchmarking measures a firms quality performance by comparing it to the performance of other companies that are known for being best in class. (T)
  7. Pareto chart is an arrangement of data where the causes of a problem are arranged in ascending frequency of occurrence in order to highlight the most likely cause. (F)
  8. ISO 9002 does not apply to organizations that perform design and service activities. (T)
  9. The fishbone chart offers a structured approach for a team to identify, explore, and display graphically all of the possible causes of a problem. (T)
  10. The Deming wheel is a repetitive cycle where quality improvements result from continuous incremental turns of the wheel. (T)
  11. The objective of Six Sigma is to eliminate variation in process performance. (F)
  12. Process capability index measures the variability in a process. (F)
  13. A process capability index of two centered on the mean just meets Six Sigma standards. (T)
  14. Lean service is based upon the Toyota Production System. (T)
  15. The objective of lean service is a purposeful flow of satisfied customers. (F)




Multiple Choice

  1. Data Envelopment Analysis (DEA) is a method for:
  2. measuring a firms quality performance by comparing it with other companies that are recognized as best in class.
  3. determining the feasibility of technological innovations in service operations.
  4. analyzing the gap between the service customers expectations and perceptions.
  5. comparing the efficiency of multiple service units that provide similar services.*
  6. What are the two dimensions in the DEA strategic matrix?
  7. Efficiency and profit*
  8. Efficiency and quality
  9. Profit and quality
  10. Profit and location
  11. Which pair of parameters describes the candidates for divestiture quadrant in the DEA strategic matrix?
  12. Low efficiency, low profit
  13. Low efficiency, high profit
  14. High efficiency, high profit
  15. High efficiency, low profit*
  16. Which of the following is not an element of a Quality Improvement Program?
  17. Emphasizing subjective data over difficult-to-analyze objective data*
  18. Maintaining SOPs for routine and crisis situations
  19. Assuming employees are self-motivated and innovative
  20. Focusing on customer satisfaction
  21. Because customers participate directly in the service process, the success of technological innovation is dependent upon:
  22. the user-friendliness of the innovation.
  23. the ability of customers to pay for the service.
  24. customer acceptance.*
  25. market research.
  26. Which of the following categories carries the highest point value on the examination paper for the Malcolm Baldrige National Quality Award?
  27. Leadership
  28. Strategic quality planning
  29. Management of process quality
  30. Customer focus and satisfaction*




  1. Which of the following statements is not part of Demings 14-point philosophy?
  2. Create constancy of purpose for improvements of product and service.
  3. Promote numerical goals for the workforce.*
  4. Constantly and forever improve the system of production and service.
  5. Cease dependence on mass inspection.
  6. Which one of the following is not a principle of Demings philosophy?
  7. Customer satisfaction
  8. Management by facts
  9. Employee loyalty*
  10. Respect for people
  11. Which among the following is not a category that is eligible for the Malcolm Baldrige National Quality award?
  12. Manufacturing companies
  13. Service firms
  14. Small businesses
  15. Government agencies*
  16. Planning, control, and ___________ are the three-component cycle required for ISO 9000 implementation.
  17. Reporting
  18. Documentation*
  19. Testing
  20. Budgeting
  21. All but one of the following are quality tools for analysis and problem solving.
  22. Run chart
  23. Control chart
  24. Flow chart
  25. Bar chart*
  26. Which one the following is not a guiding principle of lean philosophy?
  27.    Satisfy the needs of customers by doing only value-added activities.
  28. Be flexible in response to customer demands.*
  29. Define the value stream by flowcharting the process.
  30.   Eliminate waste.




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