Questions Answered Correct.
Wait-and-see strategy - Answer Cons: Must have credibility and must signal its plan before
competition can
Capacity gap - Answer Positive or negative difference between projected demand and current
capacity
Economies of Scale - Answer A concept that states that the average unit cost of a service or
good can be reduced by increasing its output rate
Diseconomies of Scale - Answer Occurs when the average cost per unit increases as the
facility's size increases
Contributing Factors to Diseconomies of Scale - Answer Increasing the output rate results in
increasing average unit costs, Complexity, Loss of focus, Inefficiencies
Tools for capacity planning - Answer Waiting-line models, Simulation, Decision Trees
Waiting-line models - Answer An abstract representation of the queue that enables us to
predict waiting times and other performance measures
Waiting-line models - Answer Useful in high customer-contact processes
Simulation - Answer Useful when models are too complex for waiting-line analysis
Decision trees - Answer A decision support tool that uses a tree-like graph or model of
decisions and their possible consequences, including chance event outcomes, resource costs,
and utility
Decision trees - Answer Useful when demand is uncertain and sequential decisions are
involved
, A term used by customer to describe their general satisfaction with a service or product
Defect - Answer Any instance when a process fails to satisfy its customer
customer satisfaction center of quality - Answer conformance to specifications
fitness for use
value
support
psychological impression
Conformance to Specifications - - Answer Meeting certain advertised or implied performance
standards. E.g., size, weight, battery life, consistent quality, on-time delivery etc.
• Fitness for Use - - Answer How well the service or product serves its intended purpose. E.g.,
functionality, features, performance, durability, convenience etc.
• Value - Answer - How well the service or product serves its intended purpose at a price
costumers are willing to pay.
• Support - - Answer How efficiently and effetely the company offers help when problem
occurs or to maintain the product or service. E.g. A/S services, warranty, customer service etc.
• Psychological Impressions - Answer - Appearance of the product or service offering. E.g.
Atmosphere, image, aesthetics etc.
Quality awards and certifications - Answer
Benefits of Good Quality - Answer Word of Mouth, Loyalty, Better Brand, Customers Like