BUSI 650 CHAPTER 3 TEST

1405 words 6 pages
Chapter 3
Controlling Processes

Multiple Choice

1. 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

Answer: c
Difficulty: Hard
Response: Page 96
Reference: Monitoring and Control

2. 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,
…show more content…
Power and Associates
b) McDonald’s
c) American Express
d) Alaska Airlines

Answer: a
Difficulty: Medium
Response: See page 113
Reference: Controlling Service Quality

15. 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

Answer: c
Difficulty: Hard
Response: See pages 113-114
Reference: Controlling Service Quality

True/False

16. 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.

Answer: True
Difficulty: Easy
Response: Page 97
Reference: Monitoring and Control

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

Answer: False
Difficulty: Easy
Response: Wheelwright and Hayes offer four stages; see page 98
Reference: Process Monitoring

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

Answer: False
Difficulty: Medium
Response: See page 98
Reference: Process

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