TRUE/FALSE 1. Having a large number of performance measures is much better than having a selected few. ANS: F PTS: 1 2. Measuring and reporting performance results can be a motivator for many workers. ...

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TRUE/FALSE
1. Having a large number of performance measures is much better than having a selected few.
ANS: F PTS: 1
2. Measuring and reporting performance results can be a motivator for many workers.
ANS: T PTS: 1
3. The only important measurement category in business is financial.
ANS: F PTS: 1
4. Return on assets would normally be classified as a productivity measure.
ANS: F PTS: 1
5. Good customer satisfaction measurement systems are designed to provide information about future
buying behavior.
ANS: T PTS: 1
6. Quality measures the degree to which the output of a process conforms to management's expectations
and requirements.
ANS: F PTS: 1
7. Service quality measures are generally based on data collected from observing front-line operations.
ANS: F PTS: 1
8. Reliability is the ability to perform a service dependably and accurately.
ANS: T PTS: 1
9. Assurance is the willingness to help customers and provide prompt recovery to service upsets.
ANS: F PTS: 1
10. Empathy is the caring attitude and individualized attention provided to customers.
ANS: T PTS: 1
11. Measures and indicators of product and service performance that have a strong correlation with
customer satisfaction are appropriate to monitor.
ANS: T PTS: 1

12. Most of the five dimensions of service quality pertain to behavioral characteristics, which makes them
easier to measure.
ANS: F PTS: 1
13. Errors in service creation and delivery are sometimes called service upsets.
ANS: T PTS: 1
14. Speed is usually measured in clock time, whereas reliability of a time-based measure is usually
measured in quantifying the variances in average performances or targets.
ANS: T PTS: 1
15. Queue time is a fancy term for service time variance.
ANS: F PTS: 1
16. Having intensive care nurses on call in case of a dramatic increase in patient demand is an example of
design flexibility.
ANS: F PTS: 1
17. Design flexibility is the ability to respond quickly to changes in the volume and type of demand.
ANS: F PTS: 1
18. Productivity is more closely related to effectiveness than efficiency.
ANS: F PTS: 1
19. As output decreases for a constant level of input, productivity also decreases.
ANS: T PTS: 1
20. It costs 3 to 5 times more to keep an existing customer than to acquire a new customer.
ANS: F PTS: 1
21. The "value of a loyal customer" links customer satisfaction and loyalty to a firm's profitability
measures.
ANS: T PTS: 1
22. Any measure a firm chooses to use should provide the basis for making executive-level strategic
decisions.
ANS: F PTS: 1
23. Health care and educational organizations were eligible for the Malcolm Baldrige National Quality
Award since its inception in 1987.
ANS: F PTS: 1

24. Although the award from the Malcolm Baldrige National Quality Award Framework receives the most
attention, the primary purpose of the program is to provide a framework for performance excellence
through self-assessment to understand an organization's strengths and weaknesses, thereby setting
prior