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



Sample  Questions





  1. The “line of visibility” found in a service blueprint separates the front office operations from the back office operations. (T)
  2. A factor that simplifies the design of service systems is the presence of the customer in the process. (F)
  3. A “line of interaction” also can be found on a service blueprint. (T)
  4. An increase in divergence can maximize the revenue that is generated by each customer. (T)
  5. Dry cleaning is an example of a service where isolation of the technical core would be inappropriate. (F)
  6. Fast-food restaurants have adopted the production-line approach to service design. (T)
  7. An important variable in the design process is the amount of customer participation in the delivery of the service. (T)
  8. Financial consulting is a service with low complexity and high divergence. (T)
  9. Ideas for new service innovations often originate with customers. (T)
  10. A major incentive for innovation in services is the ability to patent an idea. (F)
  11. Service complexity can be measured by analyzing the number and intricacy of the steps required performing it. (T)
  12. The “project authorization” in the NSD cycle is part of the development step. (F)
  13. The “line of visibility” for a self-service process blueprint would be near the top of the diagram. (F)
  14. A service blueprint will not facilitate creative problem solving because it will be too rigid a definition of the service delivery system. (F)
  15. Investment banking is a financial service that has high complexity and high divergence. (T)
  16. Limited discretion of service workers is a feature of the production-line approach to service design. (T)
  17. Basic research typically is limited to federal, university, and nonprofit organizations. (T)
  18. In the new service development process cycle, development follows design. (F)
  19. JIT is an example of information driven technology innovation. (F)
  20. The service encounter is a structural service design element. (F)
  21. Intellectual property is a creation of the mind. (T)
  22. Intellectual property rights allow the owner to secure monopoly profits for a limited time. (T)
  23. Radical service innovations are driven mostly by technological innovations. (T)
  24. Readiness to embrace new technology is a measure of how fast new technology is adopted in the marketplace. (F)


Multiple Choice

  1. Which of the following is not a characteristic of a production-line approach to provide a service?
  2. Division of labor
  3. Substitution of technology for people
  4. Standardization of the process and service provided
  5. High employee autonomy in task execution*
  6. One advantage of reduced divergence is
  7. quicker response to market demands.
  8. greater efficiency.*
  9. maximization of revenue per customer.
  10. the ability to command higher prices.
  11. Service processes can be classified according to each of the following, except the
  12. degree of customer satisfaction.*
  13. degree of customer contact.
  14. object of the service activity defined as goods, information or people.
  15. degree of divergence ranging from standard to customized service.



  1. Which one of the following is not an example of a high customer contact service?
  2. Dry cleaning*
  3. Banking
  4. School
  5. Hotel
  6. The term “customer contact” refers to the
  7. handling of the product by the customer.
  8. influence the customer has on service design.
  9. amount of time spent waiting in the system.
  10. physical presence of the customer in the system.*
  11. A service with a low degree of divergence allows a manager to consider all but one of the following options?
  12. Hire workers who have little technical skills.
  13. Substitute automation for repetitive tasks.
  14. Empower workers with decision-making authority.*
  15. Incorporate a “production-line” approach to service.
  16. The most interactive element in the service blueprint of a fitness facility is the
  17. choice of music played.
  18. amount and type of exercise equipment.
  19. attention given to prospective members on their initial visit.*
  20. cleanliness of the locker rooms.
  21. A service blueprint can be used for all but one of the following:
  22. Educate customers.
  23. Identify areas of service improvement.
  24. Maintain the level of service complexity and divergence.*
  25. Identify points where moments of truth will occur.
  26. For companies offering customized services, which one of the following is true?
  27. A comprehensive employee hiring process is very important.*
  28. Employee tasks are low on divergence.
  29. A production-line approach to service is desirable.
  30. Information processing plays a minor role.



  1. Which of the following is not an increase in service complexity?
  2. A supermarket adds a florist shop.
  3. A supper club opens for Sunday brunch.*
  4. A restaurant switches from “house salad” to a salad bar with 40 items.
  5. A health spa hires a massage therapist.
  6. Which of the following is not an advantage of reducing the divergence of a service process?
  7. Improved productivity
  8. Uniformity
  9. Greater flexibility*
  10. Reduced costs
  11. A service blueprint with a large number of intricate steps is considered to have a
  12. high degree of divergence.
  13. low degree of complexity.
  14. high degree of complexity.*
  15. low degree of divergence.
  16. The new service development process cycle contains all but one of the following activities:
  17. Engineering*
  18. Analysis
  19. Development
  20. Full launch
  21. Which of the following is not an incremental service innovation?
  22. Service line extension
  23. Service improvements
  24. Style changes
  25. Service quality initiative*
  26. Which of the following is not a service design element?
  27. Capacity planning
  28. Managing capacity and demand
  29. Market research*
  30. Information



  1. Which of the following features does not illustrate a contribution that the customer can make in the delivery of services?
  2. Substitution of customer labor for provider labor
  3. Smoothing service demand
  4. Service standardization *
  5. None of the above
  6. Only _______ exceeded the United States in percent non-manufacturing share of total business R&D expenditure in 2001.
  7. Japan
  8. Norway*
  9. Sweden
  10. United Kingdom
  11. Internet ________ shared the highest customer satisfaction score with Express Delivery.
  12. search engines
  13. auctions
  14. brokerage
  15. retail*
  16. _________ is not a source of technology-driven service innovation.
  17. Power/energy
  18. Material
  19. Location*
  20. Facility design
  21. In service design, to promote sales opportunity _______ is preferred to ________.
  22. Phone Contact, Face-to-face Customized
  23. Onsite Technology, Website*
  24. Website, Onsite Technology
  25. None of the above.
  26. ___________ is not one of the categories of intellectual property.
  27. A trademark
  28. A trade secret
  29. Industrial design.
  30. Process layout*




  1. Check processing is an example of a process with
  2. indirect customer contact and low divergence.
  3. direct customer contact and low divergence.
  4. no customer contact and high divergence.
  5. no customer and low divergence.*




  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 firm’s 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 firm’s 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 customer’s 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 Deming’s 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 Deming’s 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.