University of Houston

MBA 6205

Chapter 2: Customer Fulfillment Strategies

Multiple Choice

1)All of the following are opportunity considerations for businesses to create customer value except      .

1. quality
2. cost
3. flexibility
4. location

2. The real measure of quality is whether or not a product or service lives up to

                    expectations.

5. customer
6. design
7. company
8. supply chain

3. Motorola established its 6-sigma quality improvement program more than a decade ago. The numerical value of 6-sigma is                                       .

5. 99.98% defect free
6. 3.4 PPM
7. 6 PPM
8. 1000 PPM

4. One of Garvin’s 8 factors that comprise quality as viewed by the customer is performance. Performance refers to the                 .
   1. primary operating characteristics of the product or service
   2. delivery speed of the product or service
   3. number of product or service features
   4. customer viewed dependability of the product or service

5. One of Garvin’s 8 factors that comprise quality as viewed by the customer is reliability. Reliability is defined as                                              .

5. the y of the product to be repaired
6. a product or service characteristic where it can be counted upon not to fail
7. how well a product or service matches established specifications
8. the delivery speed of the product or service

6. One of Garvin’s 8 factors that comprise quality as viewed by the customer is serviceability. Serviceability refers to the                                              .

5. product or service characteristic where it can be counted upon not to fail
6. customer viewed dependability of the product or service
7. speed of repair when quality problems arise

8. the frequency of repair

7. There are four supply chain cost-reduction strategies employed by competent procurement functions as cited in the text. They include (1) productivity enhancement, (2)                                   , (3) locating facilities in countries with low-cost inputs, and (4) sourcing from the world’s most efficient suppliers.
   1. placing large quantity purchase orders
   2. sourcing from past suppliers
   3. adoption of advanced process technology
   4. sourcing from local suppliers

8. Supply chain managers include quality, cost, flexibility, delivery and innovation as the most significant business contributors when creating                                       .
   1. revenue
   2. customer value
   3. strategic plans
   4. process maps

9. All of the following are steps critical to creating a “flexibility” culture except                   .
   1. make cycle time a priority throughout the organization
   2. benchmark against customer requirements and competitors’ capabilities
   3. build learning loops into every process throughout the organization
   4. train workers for few but selective tasks and organize work in single function teams

10.                                  (ESI) is a key element of innovation strategies at industry leaders like Canon, Honda, and 3M.

5. Enterprise source information
6. Early supplier involvement
7. Environmental strategy implementation
8. Export sourcing interface

11. When managers emphasize efficient operations over appropriate customer satisfaction requirements, discrepancies in service quality can lead to                     .

5. service gaps
6. customer feedback
7. higher operating costs
8. higher fill rate targets

12. When developing customer satisfaction strategies, customer feedback helps managers with all of the following except:
    1. align measures to customer expectations
    2. benchmark the performance of the competition
    3. allocate resources and reevaluate priorities

1. 4. adopt new customer satisfaction policies or practices

13. A                      is something that your company does so well that it provides the business a competitive advantage.

5. Pareto principle
6. customer segmentation
7. fulfillment strategy
8. core competency

14. An effective customer service feedback system addresses all of the following questions except:
    1. Does our current performance meet our customers’ requirements?
    2. Would an improvement in our performance really be valued by our customers?
    3. Are customers’ performance measurements adequate?
    4. How do important customers define quality, on-time delivery, responsiveness, and other key value areas?

15. Identifying specific customer needs and then matching the company’s               to those needs is the key to implementing a successful customer fulfillment strategy.

5. core competencies
6. promises and capabilities
7. delivery
8. synergies

16. The text suggests that customers can be segmented by percent of sales into an A, B and C categories. Applying the Pareto principle, approximately 80% of sales is provided by 20% of the customers. This segment is defined as the A segment. What statement below best characterizes the relationship?
    1. Members of this group often become tomorrow’s “customers of choice”.
    2. The business operation provides high levels of standardized service excellence.
    3. Dedicated customer account teams are used to establish a consistent point of contact and a personal touch.
    4. Frequent communication occurs between the two firms at many levels, including marketing, engineering, logistics, and senior management.

17. All of the following are the primary reasons why a business’s customer service may not fulfill customer needs except                                     .

5. the level of service provided is based on the customer’s level of value to the business
6. improvements are directed at efforts that add no customer value
7. claims of improved service do not match the business’s actual performance
   4. the business treats each customer contact as an opportunity to make an unprofitable customer profitable or make a profitable customer more profitable

18. Which of the following are the top four causes of customer fulfillment dissatisfaction?
    5. employee training, budget constraints, policies and customer expectations

1. 6. employee training, measurement, empowerment and policies
   7. employee training, measurement, policies and customer expectations
   8. employee training, budget constraints, customer expectations and policies

19. The term                     was coined to signify that 15 to 40 percent of a firm’s capacity is used to find and fix poor-quality work.

5. Kaizen
6. hidden plant
7. core competency
8. Pareto principle

20. Considering a competency-success factor alignment matrix, when customer success factors are high and competencies are high, this condition will most likely result in                                     . A) diminished focus and dissipated capabilities
    2. resources expended here are wasted
    3. effective alignment results in Profitable Customer Takeaway
    4. effort and resources dedicated to non-valued activities result in low customer takeaway

True/

26. One of the major characteristics of today’s customers is that they are empowered with a broad range of product and pricing information.
27. Customer empowerment means that businesses up and down the supply chain must decrease their ability to deliver value.  
28. A major goal of the supply chain manager is to assure that operations creates processes that meet customer needs.  
29. The following are the 5 basic areas of customer value: quality, flexibility, innovation, delivery and cost.
30. Quality is most often defined by the customer as meeting customer specifications.  
31. Best-in-class companies manage quality and achieve a very low defective parts per million.
32. Six-sigma, the quality level that many companies strive to achieve is quality that is equal to or less than 34 defects per million parts produced.  
33. “Performance” refers to the product’s mean time between failures and its overall life expectancy.  
34. “Serviceability” refers to the speed of repair when quality problems arise.
35. Since customers in these economic times demand high quality products and services, this is achieved through extensive inspections.  
36. Globalization has increased factor mobility and market access, requiring local companies to match the cost position of global rivals who often possess low-cost labor advantages.
37. A typical cost reduction technique employed by a manufacturer is to improve the productivity of their manufacturing processes.
38. Flexibility is a supply chain strategy that is often avoided since it requires increases in capital and people.