_______ is not part of the service chain concept.

Inventory management A bank is an example of a service provider with a single-level bi-directional service supply relationship. True A clear hierachy of objectives in the project definition would not normally contain? Control mechanisms A continuous review system is generally used for Class C items in the ABC system of classification. False A cost leadership strategy is often associated with standardised service. True A critical path network diagram does not: Show how resources shared by more than one activity are scheduled A cruise ship has available a certain number of rooms in each of 10 categories of appointment ranging from a two-bunk inside cabin to a suite with an outside patio and indoor sitting area. If a passenger requests a reservation for a date when a desired cabin is unavailable, which one of the following actions would be considered the least viable alternative for the cruise line? Overbooking the cabin A customer who is interested in the self-service option would find which of the following dimensions of service most important? Customers control of the situation A customers failure to remember the process steps is an error that falls in the preparation category. False A difficult economic environment exists for service industries for all but one of the following reasons. Relatively high overall entry barriers A drawback to increased consumer participation is the fact that service quality is no longer completely under the control of the provider of the service. True A firm facing serious competition for the first time is in the journeyman stage of a service firms competitiveness. True A good overbooking strategy should: Balance the expected opportunity cost of idle service capacity and expected cost of turning away customers who have reservations A good supply chain management strategy would place a strong emphasis on promotional pricing. False A health club offering a reduced rate membership for students to workout before 4:00 p.m. on weekdays is an example of: promoting off-peak demand A hospital is an example of a service process that has. Low degree of labour intensity and high degree of customisation A machine that can produce operations from memory that was originally executed under human control is classified as intelligent automation. False A major incentive for innovation in services is the ability to patent an idea. False A moment of truth is not: when the customer is forming an opinion about the efficiency of the services system A Pareto chart: a. sorts problems by their frequency of occurrence in an ascending/descending bar graph A Portal is a term used to describe a website that combines search engines, information, directories, and shopping links. True A process is said to be in control when all the variation that is noticed can be assigned to specific causes. False A self-service petrol station that is equipped with a credit card reader is an example of a customer dominated service encounter. True A service blueprint with a large number of process steps is considered to have a: high degree of complexity A service organizations culture is communicated by all but one of the following methods. Manual A service that incorporates self-service is attempting to compete using a ____________ strategy. Overall cost leadership A service winner over time often becomes a qualifier. True A service with a low degree of divergence allows a manager to consider all but which one of the following options? Empower workers with decisionmaking authority A sky lounge for 1st class passengers represents a variant element for an airline. True A walk-through audit is a process-oriented survey given to customers and managers to evaluate the customer experience of the totality of a service. True ABC inventory analysis is an application of the 80-20 rule. True According to Maister which one of the following statements is not True of waits. In-process waits feel longer than pre-process waits According to Maisters Second Law of Service: First impressions can influence the remainder of the service experience All but one of the following are managerial implications of bi-directional relationships: Vendor selection based on reputation All but one of the following are techniques to lessen the boredom of waiting customers: Displaying time with a large analog clock All but one of the following depict the impact of service chain management: Pull system for flow of information All of the following are examples of detection costs of quality except: Quality planning An arrangement of servers in parallel is an insurance against breakdown of the service in case of absenteeism or equipment failure. It, thus, adds to flexibility at the expense of capacity utilization. True An event is a point in time that marks the beginning or ending of an activity. True An example of employing the virtual value chain is using information to allow customers to track their own parcel deliveries. True An important variable in the design process is the amount of customer participation in the delivery of the service. True An underlying belief behind employee empowerment is that people want to do good work, and will do so if given the opportunity. True Are clearly defined goals important to achieve a successful project. Important Balking is the term used to describe the phenomenon of customers leaving a queue that they have joined before service is rendered. False Bar coding and checkout scanner technology have created a wealth of consumer-buying information that can be used to target customers with precision. This process is an example of: Micromarketing Bars that offer happy hours in the afternoon are using the strategy of: Promoting off-peak demand Based on the service process matrix, a hotel is an example of a mass service. False Because customers participate directly in the service process, the success of technological innovation in services is usually dependent upon customer acceptance. True Because customers play an active role in the delivery of a service, the service provider often must educate them. True Bi-directional relationships are unique to service chain management. True Bidirectional optimization could be considered an example of a win-win outcome. True

Cause-and-effect diagrams are also known as Fishbone or Ishikawa diagrams: True Companies will often manage the evidence. For example a motel will place a plastic liner on the toilet seat to show that it has been cleaned. Which GAP is this activity attempting to close? GAP 4 Concealment of the waiting line or at least part of it is a very effective deterrent against reneging. False Consider the service in which you are participating while completing this WebCT assignment i.e. the provision of questions, input of answers, marking, and release of the results. Select those of the following that are back-room operations? The setting of questions, the marketing of the answers Continuous improvement is a valuable concept, but it lacks measurement techniques. False Conversion is a primary value component of service chain management. False Corporate culture influences the actions and perceptions of both employees and customers. True Cross training of employees as a strategy to increase flexibility is most effective when there exist tasks, the demands for which peak at different times. True Customer demand variability is the most difficult factor to determine in a goods supply chain. TRUE Data Envelopment Analysis (DEA) is a method for: Comparing the efficiency of multiple service units that provide similar services Dell computers are a good example of a click and mortar retailer. False Demand during leadtime distribution has a normal distribution no matter what the daily demand is. True Demming introduced the idea of the PDCA four-stage cycle for quality improvement. Describe these stages against the first letter of the stage. Dependent demand is described by a probability distribution. False Differential pricing is an attempt to make peak usage periods unattractive by imposing a penalty on the consumer for using the service during peak periods. False Disadvantages of online grocery shopping include all but one of the following: Impulse buying Dry cleaning is an example of a service where isolation of the technical core would be appropriate? True E-business is based on which of the following? Addressing system of URLs, communications standard TCP/IP and Personal computers Ebay is an example of a information content provider. False Efficiency versus satisfaction is the possible source of conflict in the relationship between the customer and the service organization. True Electronic services share few of the characteristics of traditional services. False Empirical studies have suggested that the distribution of inter-arrival times is: Exponential Employee empowered service companies have committed to all but one of the following: Link pay to output achieved Expected loss for an overbooking reservation strategy would be calculated by, multiplying the loss for each no-show possibility by its probability of occurrence, and then adding the products. True Fifty years ago cinemas had one screen and the employees would personally escort the patrons to their seats. Contrast that with todays multiplex cinemas. The cinema industry has changed from: Low complexity, high divergence to high complexity, low divergence Flexibility in meeting customer needs is the main reason that some service firms have empowered contact personnel. True Focus is a competitive strategy that creates a service perceived as being unique. False For a firm achieving journeyman competitive status, the back-office function is considered an activity that plays an important role in service competitiveness. False For companies offering customized services, which one of the following is True? A comprehensive employee hiring process is very important For industrialised countries the per cent of employment in services exceeds 70 per cent. True For seasonal items, a ______ system could be used to manage inventory. Single-period model For the exponential distribution we have: The mean equal to its standard deviation For the planned shortage model, when the cost of backorders approaches zero, the order quantity becomes undefined. True From an open-systems view, the output of a service system consists of satisfied customers. True Genichi Taguchi is credited with which one of the following quality ideas? Robustness Here are four statements about using technology for competitive advantage in services. Select those that are correct. Take a holistic approach, Optimise basic techniques and Offer customers more control If the number of arrivals in an interval of time follows an exponential distribution, the interarrival time is known to follow a Poisson distribution. False Improved information management has been the key in allowing services to meet customer demands without incurring the expense of excess inventory. True In an experience economy, the method of supply is: Revealed over time In analytical queuing models, the calling population mainly determines whether the queue will be finite or infinite. False In order to successfully implement a production-line approach for a service, that service must be standardised. The role of the manager is to: Create clear divisions of labour, Limit discretionary actions of the personnel, Substitute technology for people In retailing, profit is a function of mark-up multiplied by turnover. True In service industries that require extensive knowledge and training on the part of the service provider (e.g. medicine), which is the least viable way of dealing with demand variability and perishable capacity? Using Yield Management In services, scripting refers to: Predetermined phrases or sentences that are used by employees in specific situations In technology-____________ service encounters both the customer and the service provider have access to the same technology. Facilitated In the ABC inventory classification, C items can best be described as: Among the most numerous In the design of an inventory system all but one of the following is considered: Safety stocks In the management of projects, Gantt charts are best used to: Show the planned times for activities , show the schedule for the activities and the progress made In the New Service Development Process Cycle, analysis follows development and design. False

In the physical goods supply chain information moves to the left and material to the right. True In the service profit chain model which one of the following was not listed as a component of the internal service delivery system? Pay and compensation In the Six Sigma approach, what is the name of those who work within improvement teams, possibly as team leaders? Green Belt In which of the following competitive stages is operations seen as reactive at best? Available for service In which stage of economic activity do services first appear? Tertiary Independent demand is described by a probability distribution. True Information databases are considered an asset, because they represent a source of revenue. True Information is a substitute for inventory. True Information technology can be used to promote customer loyalty. True Internal failure costs, external failure costs, detection costs and prevention costs were identified by Juran. True Is frequently changing staff on long projects important to achieve a successful project. Not important Is having no direct top management involvement important to achieve a successful project. Not important Just as the lessons and techniques from agriculture were applied to manufacturing the same is True with the application of factory techniques to service organization. True Knowledge management is a strategy to retain skilled workers. False Lead-time inventories are stocks that have been ordered but not yet received. False Limited discretion of service workers is a feature of the production line approach to service design. True Loss of economising customers is an early warning of potential competitive threats.True Matinee prices before 6:00 p.m. in movie theatres is an example of partitioning demand. False Of the choices below, the most critical fail point in the service blueprint of a fitness facility is: The attention given to prospective members on their initial visit Of the nine dimensions of service competition, three are regarded as most likely to become service losers. Which one of the following is not one of those three vulnerable dimensions? Price one advantage of reduced divergence is: Greater efficiency one advantage of the multiple queue compared to a single queue is that multiple queues: Lead to a perceived shorter wait time Patients waiting for heart transplants are an example of an inventory model that has a backorder cost of zero. True Penalties for late delivery or nondelivery are part of shortage costs. True Planning, control, and ___________ make up the three-component cycle required for ISO 9000 implementation. Documentation Point-of-sale scanning only became feasible when industry agreed upon a universal system of bar coding. True Problem solving tools commonly used for continuous improvement efforts include: All the above except Service Guarantees Problems in measuring service productivity are: More acute in the service sector than manufacturing Quality Function Deployment is a service design tool to translate customer expectations into measurable conformance specifications. False Quality Improvement programmes suggest that each individual can contribute to quality improvement. True Quality is considered to be a structural element of the strategic service concept. False Reactive forecasting was used for capacity planning before the implementation of physical goods supply chain management. True Real-time information technologies that have a focus on internal operations can play a competitive role in increasing revenue opportunities. Which one of the following uses of information does not fit this category? Sales of Information Reuters is an example of a content provider E-Business model: True Select from the following those that are advantages of offering a service guarantee? It acts as a mechanism to reduce customers risk, it forces a firm to identify customer expectations, and it makes managers identify failure points in the system Select the statements that apply. Productivity tends to be lower in the service sector because service work is: Frequently individually processed, sometimes involves an intellectual task performed by professionals, typically more labour intensive than manufacturing Select those of the following statements regarding project management which are TRUE. Gantt charts give a timeline for each of a projects activities, but do not adequately show the interrelationships of activities, a project organisation is most suitable for projects that are temporary but critical to the organisation Select those of the following that are characteristics of a service organization with an inverted T structure: The layers of supervision are reduced, contact personnel are trained, motivated, and supplied with timely computer-based information; the service encounter is managed at the point of delivery Select those of the following that are examples of the customer as co-producer. Shopping in a supermarket, shopping on the Internet, dining in a buffer restaurant Select those of the following that are methods by which a service provider can use information to generate additional revenue. Yield management, expert systems and point-of-sale Select those of the following, which are distinctive characteristics of service operations: Customer participation, intangibility, and perishability Self-service, customer as co-producer and customer empowerment can be synonymous. True Service complexity can be measured by analysing the number and intricacy of the steps required performing it. True Service firms classified as available for service view quality improvement efforts with disdain. True Service industries have low entry barriers because economy-of-scale opportunities are limited. False Service innovation is driven by which factor listed below? Information technology and changing demographics Service tangibility increases as the focus of the service moves from property to people to process. False Services also reside in manufacturing firms. True

Services are time-perishable. An opportunity to provide a service, if forgone, is lost forever. True Services can be classified into a four-cell matrix by the extent of customisation and judgement exercised by the service personnel. Which of the following appears in all four cells? Food service Services can create barriers to entry by: All of the above Several approaches to demand management exist, but only _______ seeks to maximize revenue. Yield management Spatial distribution of demand is important to consider in which one of the following services? Emergency ambulance services Strategies to improve productive capacity include all but one of the following: Bidirectional optimization The average business only hears from 10 per cent of its dissatisfied customers. False The bullwhip effect is a phenomenon in the physical supply chain that describes the inventory stocking levels at various stages. False The calling population is termed finite when: Only a limited number of people may use the facility in any given period The central idea in the retail-discounting model is that: Turnover of stock generates money for future investment The convenience customer enjoys shopping for their service needs? False The degree of tangibility usually provides the purchaser with sufficient information to assist in the service purchase decision. False The Disney organization refers to its employees as cast members in order to promote its organizational culture. True The dotted line that separates the front office from the back office in a service blueprint is called the horizon line. False The fact that services can be inventoried is an important characteristic, which distinguishes them from manufacturing. False The first stage or rung of the service quality ladder is cost of quality. False The fishbone chart offers a structured approach for a team to identify, explore and display graphically all of the possible causes of a problem. True The idea behind the service profit chain is that: Happier employees lead to higher service value, which leads to happier customers, which lead to higher profitability The implementation of an effective process control cycle for service systems is hampered by: The intangibility of services making direct measurement difficult The Internet provides few opportunities for innovation for providers of Education Services. False The introduction of post-it notes by 3M is an example of the pull theory of innovation. False The major input into a large NHS hospital from a service point of view would be: Patients The moment of truth refers to the moment when the customer pays for the service. False The most common reason for difficulties during the interaction of customers and contact personnel is: Unrealistic customer expectations The net result of waiting, apart from the boredom and frustration experienced by the consumer and the associated loss of goodwill, is the reduced utilization of capacity of the service. False The prerecovery phase of the service recovery framework includes all but one of the following components: Speed of recovery The purpose of differential pricing is to: Make off-peak usage attractive The Radchuk ten step-planning guide to implementing the process of new technology adoption is mainly concerned with testing and quality issues. False The realms of an experience include all but one of the following: Elation The satisfaction mirror illustrates how both customer and employee have opposite views on service quality.False The service inventory hedging strategy benefits the firm by directing skill-enhancing activities into idle time slots. True The service package consists of four features. Which one of the four features listed below is not included in the package? Cost of service The specific concerns of Quality Improvement Programmes include a number of aspects. Which of the following is an aspect that is not normally found? Primarily a worker rather than a management activity The strategic service vision is a framework in the form of questions that need to be addressed when considering a new service. True The strategy of maintaining a speculative inventory is known as forward hedging. False The strategy of partitioning demand to reduce variation makes use of the fact that demand for a service is seldom from a homogeneous source. True The Taxonomy of Service Processes does not have an example service that simultaneously is highly divergent, people processing, and indirect customer contact. True The term customer contact refers to: The physical presence of the customers in the system The term interarrival time refers to the time elapsed between initiation of service and its completion. False There is often a wide discrepancy between the quality that a customer percieves and the quality that a employee believes is provided.False Time perishability of service capacity is a challenge for service managers because customers demand immediate service. False Transfer is an approach that enables customer self-service to enhance productive capacity. False Use of a Queuing Theory model is appropriate when the queuing system is in a transient state. FALSE Using the dimensions of strategic focus and competitive use of information, we can identify four strategic roles of information. Which one of the following is not a strategic role of information? Provide global communications Weekend and night rates for long-distance telephone call are examples of demand smoothing that uses price incentives to both discourage peak demand and promote additional off-peak usage. True What are the two dimensions in the DEA strategic matrix? Efficiency and profit What one is not true of a high-contact operation? A focus on service productivity When a quantity discount is offered, the first step should be to compute: EOQ for the lowest price per unit When screening front line employees, the purpose of the situational vignette is to determine: an applicants instincts, interpersonal capabilities, common sense and judgement When the customers role is built into the service delivery system, he or she is said to be a co-producer. True Which among the following services would need to prepare daily work shift schedules? Police departments, call centers and food restaurants Which category of Cost-Of-Quality is most related with Shingos Poka-Yoke? Prevention costs

Which is not a direct benefit normally associated with an unconditional service guarantee? Increases market share Which is the first stage in the project management role? Understanding the project environment Which item below would not be a good candidate for a planned shortage model? Staple Which of the following does not describe one or more aspects of the new service development process? . Due to the impersonal nature of technology, attempts to use automation in the front office normally fail Which of the following elements is not normally common in projects? No defined end point Which of the following involves customer participation in the design of the service? Providing a stockbroker with the desired distribution of a portfolio of stocks Which of the following is a question common to both the structural and managerial portions of the service design elements? A. How should we manage queues? Which of the following is not a characteristic of the experience economy? The seller is a provider Which of the following is not a method by which a service provider can use information to increase revenue? Data Envelopment Analysis Which of the following is not an unrealistic customer expectation? Being acknowledged Which of the following is the least likely source of difficulty with interactions between customers and contact personnel? Customers having no money to pay the bill Which of the following is the strongest disincentive to being an early adopter of new technology in services? Imitation by competitors Which of the following statements about empowerment is not true: Empowerment improves consistency of services Which of the following would not be an operations function in a fast food restaurant? Advertising and promotion Which one of the following best describes a service process exhibiting low customer contact, low divergence, and processing goods? Dry cleaning Which one of the following is a purchasing consideration for a professional service? Performance evaluation by top management Which one of the following is a strategy for closing the quality differences described as GAP 1 in the Parsuraman et al Quality Gap Model? Improved market research Which one of the following is an example of a value added service? Financing Which one of the following is an example of the competitive use of a database asset in generating revenue? Micromarketing Which one of the following is most affected by the bullwhip effect? Wholesaler Which one of the following is not a characteristic of a production-line approach to provide a service? High employee autonomy in task execution Which one of the following is not a characteristic of yield management? One homogeneous customer class Which one of the following is not a classification of shopping attitude for a service customer? Goal-seeking customer Which one of the following is not a principle of Demings philosophy? Employee loyalty Which one of the following is not a principle on which service experience design is based? Encourage customer feedback Which one of the following is not a role of information technology? Displacing workers Which one of the following is not a role that inventories play in a distribution system? Anticipative Which one of the following is not an element of a Quality Improvement Program? Emphasizing subjective data over difficult to analyse objective data Which one of the following is not an example of detection costs? Rework Which one of the following is not an example of the differential pricing policy? Difference in hospital fees for walk-in and scheduled services Which one of the following is not an organizations use for a website? Attracting customers Which one of the following is not considered effective in achieving and maintaining service quality? Increasing supervision of service providers Which one of the following is not included in the criteria for evaluating facilitating goods? Facility Layout Which one of the following is not possible using SERVQUAL? Identify the root causes of the quality failure Which one of the following is not true of multiple queue configurations? Jockeying is eliminated Which one of the following is true of a low-contact operation? Forecasts are long-term and output-oriented Which one of the following occurrences would be considered a moment of truth in a restaurant setting ? A receptionist assigning a table to a customer Which one of the following service providers would likely be involved in a single-level bi-directional service supply relationship? Professor Which one of the following service quality descriptions would be considered World Class? Raises the customers expectations and improves continuously Which pair of parameters describes the candidates for divestiture quadrant in the DEA strategic matrix? High efficiency and low profit Which quality expert believes quality is free? Crosby Which type of service falls under the category of high labour intensity/low customisation? Mass service Work shift scheduling attempts to deal with the service utilization problem by controlling the demand for the service and partitioning it so that utilization is uniform. False World-class service operations strive to replace workers with enhanced automation. False