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100 Cards in this Set
- Front
- Back
In a JIT system, the computer inventory data is the interface and control point between customers and supply cycles.
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False
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Which of the following is least related to a push system?
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Maximum customer responsiveness
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Quick setup or changeover of tooling and fixtures is associated with ____.
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Single minute exchange of dies
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In the 5Ss, items identified as unnecessary and thus removed from a workplace would be included with which S?
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Sort
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In a push system, finished goods inventory is produced in advance of customer demand using a forecast of sales.
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True
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Lean principles are of primary benefit to manufacturers and provide little value to service organizations.
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False
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Single minute exchange of dies (SMED) frees up capacity for other productive uses
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True
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Which of the following is not one of the 5Ss
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Synchronize
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Firms use the "5S" principles to create a clean and organized work environment
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True
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ABC Manufacturing uses a Kanban system for a component. The daily demand is 800 units. Each container has a combined waiting and processing time of 0.34 days. If the container size is 50 and efficiency (safety) factor is 9 percent, how many Kanban card sets should be authorized (round up)?
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6 sets
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Principles of lean operating systems include all of the following except
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Reduce workforce
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Which one of the following statements is true
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The heijunka system is a system of boxes much like in a mailroom set of boxes attached to a wall used to smooth production outputs.
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According to the Toyota Motor Company, which of the following is not one of the seven major waste categories?
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Single-piece flow
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Southwest Airlines illustrates the application of "lean principles" when it
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reduces airplane turnaround time at airport gates.
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Lean operating systems seek to apply the principles of continuous flow to the production of discrete parts by reducing batch size, ideally to a size of one
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True
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The number of Kanban cards is dependent on all of the following except
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Setup time
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Which one of the following statements is true concerning Lean Six Sigma
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Lean principles include the 5Ss framework and practices
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Which one of the following statements is true
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General Motors supply chain is a good example of a push system.
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In lean thinking, waste need not be classified as simply material waste such as scrap and defective parts.
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True
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Six Sigma addresses visible problems in processes; lean production is more concerned with less visible problems.
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False
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Larger orders result in higher total holding cost but lower total ordering cost.
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True
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Demand that incorporates uncertainty is called ____.
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Stochastic
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Which one of the following statements is true?
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The EOQ is most accurate when both inventory and order costs are estimated on a pure variable cost basis.
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Which is not an advantage of the periodic review system? |
Helps to control "A" items
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Safety stock inventory is an additional amount of inventory kept over and above the average amount required to meet demand. |
True
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An airline seat is an example of an asset held for future use or sale. |
True
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Which one of the following statements is true
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When demand is uncertain and no safety stock is maintained, stock outs will occur during approximately 50 percent of the cycles.
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In the fixed-period system, managers must make two key decisions: the time interval between reviews, and the replenishment level.
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True
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Which one of the following is not true regarding the Fixed Period System (FPS
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The optimal replenishment level includes the demand during the review period plus any desired safety stock.
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Which of the following is not a key assumption underlining the classic economic order quantity (EOQ) model?
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Demand is assumed to be stochastic
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Inventory position is computed using all the following except
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Lead time demand
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Which one of the following statements concerning the economic order quantity (EOQ) model is not true when the unit holding cost increases?
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total ordering cost will increase
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Inventory that acts as a buffer between workstations in flow shops or departments in job shops is called ____ inventory.
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Work-in-process |
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For the single-period inventory model, solving for the optimal order quantity involves using
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marginal economic analysis
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In ABC inventory analysis, which of the following is true for "C" items?
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"C" items make up a lower percentage of total inventory value ($) than either "A" or "B" items.
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Using ABC analysis, continuous monitoring and accurate record keeping relates best to ____ items
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a |
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Because of demanding customers, organizations must always maintain a 100% service level
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False
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Additional inventory kept over and above the average amount required to meet demand is called ____ inventory.
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Safety stock
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Average inventory in the EOQ model is defined as
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One-half the order quantity
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Dependent demand, unlike independent demand, needs to be forecasted.
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False
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A(n) ____ produces goods in advance of customer demand using a forecast of sales and moves them to points of sale where they are stored as finished goods inventory. |
Push system
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A contract manufacturer can offer significant competitive advantages. Which one of the following is notan advantage of using a contract manufacturer?
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Standardized design
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ISO 9000:2000 principles consist of all of the following except
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Zero defects
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The center-of-gravity method takes all the following into account except
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Service objectives
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All of the following relate to Six Sigma except
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Use of PDSA problem solving approach
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A(n) ____ seeks to balance capacity and demand, might use only a few large distribution centers, and minimize costs of routing products from factories to retail stores and customers.
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Efficient supply chain
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Which one of the following statements is false?
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At Dell, Inc. customer financing of purchases is a post-production service in their value chain.
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The Supply Chain Operations Reference (SCOR) Model function that entails all order management activities from processing customer orders to routing shipments, managing goods at distribution centers and invoicing the customer is called ____.
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Deliver
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Which of the following is not one of W. Edwards Deming's 14 points
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The only performance standard is Zero Defects
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Which of the following is true regarding order amplification?
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The fluctuation of orders is larger than the fluctuation in sales.
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Machine down time and downgrading costs are examples of which type of quality cost
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Internal-failure
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In the SERVQUAL instrument for measuring service quality, the concept of assurance is associated with
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The ability to convey trust and confidence
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Cause-and-effect diagrams would help most in which phase of the DMAIC problem-solving approach
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Analyze
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Which of the following is not directly related to W. Edwards Deming
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Quality is free
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A tool to help focus on the most significant problems is
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Pareto analysis
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The weights typically used in the center-of-gravity method are
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Volumes of goods
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____ is the process of delaying product customization until the product is closer to the customer at the end of a supply chain.
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Postponement
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The metric "perfect order fulfillment" is often used to measure ____
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Delivery reliability
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Which of the following is not a part of Philip Crosby's philosophy of quality?
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The only performance standard is Six Sigma
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Where in its supply chain does Dell, Inc. begin to use a pull system?
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supplier
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The average number of entities completed per unit time⎯the output rate⎯from a process is called ____.
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Throughput
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A legal defense preparation is an example of a project.
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true |
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The terms, "general purpose equipment," "flexible and capable of customizing work" and "wide variety of goods or services" best relate to
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Job shops
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A custom good or service is produced in anticipation of demand. |
False
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The service-positioning matrix focuses on the service encounter level rather than the overall design of the service system.
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true |
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Little's Law
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Evaluates average process performance
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Which one of the following major activities is not one of the six major activities to design a goods-producing or service-providing process?
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Use the product life cycle for each good or service to create a future state process map.
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____ offer customers broad freedom to select the pathways that are best suited for their immediate needs and wants from many possible pathways through the service delivery system.
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Customer-routed pathways
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Dell computers and Subway sandwiches are examples of ____ goods.
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Option
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The Product-Process Matrix works well for both goods and services. |
false
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Job shop processes use flexible, general purpose equipment that is capable of customizing work for individual customers.
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true |
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Which of the following is not a major activity in designing a goods-producing or service-providing process?
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Utilize reengineering
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Which of the following is not a common process design improvement strategy
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Decreasing agility
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A(n) ____ is a group of ____ needed to create and deliver an intermediate or final output |
Activity; tasks
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Configurations of standard parts, subassemblies, or services that can be selected by customers from a limited set are called "make to order" goods and services. |
false |
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A group of tasks needed to create and deliver an intermediate or final output is called a process. |
false |
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Which is the correct order of hierarchy?
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Value chain, process, activity, task
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A manufacturing firm that produces a standardized product, not made of discrete parts, with little-to-no customization, with high demand, is most likely to use this type of process.
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continuous flow
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Ships, weddings and estate planning are examples of ____ goods and services.
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Make-to-order
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Which of the following is least related to Value Stream Mapping? |
Reengineering
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In general, the designs of both goods and services follow a similar path. The critical differences lie in the detailed product and process design phases.
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true |
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The design of a service cannot be done independently from the process by which the service is delivered.
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true |
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Estate planning is an example of a low-contact system.
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false |
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The final step in using the House of Quality involves identifying those technical features that meet any of the following criteria except
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have the highest quality
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The fundamental planning tool used to implement Quality Function Deployment is the
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House of Quality
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The text presents an integrative case study of LensCrafters. Which statement is correct?
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Each store has a visible low contact area.
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A(n) ____ is a promise to reward and compensate a customer if a service upset occurs
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service guarantee
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The design of a customer benefit package (CBP) focuses on the operational choices that the firm must make in order to provide the CBP. |
false |
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Product simplicity encourages the use of standard parts and components.
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true |
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Customer contact, for the purpose of classifying a system as being high-contact or low-contact, is measured by
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the percentage of time the customer must be in the system relative to the total time it takes to provide the service
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Which of the following is not a principal dimension of the servicescape?
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Process and job design
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Service guarantees provide a reward or compensation as a response to a service upset and are offered to customers after a service upset has occurred.
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false |
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Which of the following is not a principal element in service encounter design?
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Technology and information support systems
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Which of the following is not one of the six customer attributes that impact the design and configuration of a customer benefit package?
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Reliability
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Ensuring that hotel staff at the front desk address a guest by name is an example of a servicescape requirement. |
false |
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Prior to designing and configuring a customer benefit package, a firm should understand and develop its ____.
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strategic mission and competitive priorities
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The House of Quality shows the interrelationships between any pair of technical features
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true |
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In design specification terminology, the target dimension is called
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nominal
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The design of a manufactured good focuses primarily on its physical characteristics
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true |
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A service encounter design focuses on the interaction, directly and indirectly, between the service provider(s) and the customer.
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true |