Operations Management: Processes and Supply Chains, 12e (Krajewski)

Chapter 2 Process Strategy and Analysis

2.1 Process Structure in Services

1) Process decisions are strategic in nature.

Answer: TRUE
Difficulty: Easy
Keywords: process strategy
Learning Outcome: Discuss operations and operations management as a competitive advantage for the
organization
AACSB: Application of Knowledge
Learning Obj.: Understand the process structure in services and how to position a service process on the
customer-contact matrix.

2) No process can exist without at least one product or service.

Answer: TRUE
Difficulty: Easy
Keywords: process, product, service
Learning Outcome: Discuss operations and operations management as a competitive advantage for the
organization
AACSB: Application of Knowledge
Learning Obj.: Understand the process structure in services and how to position a service process on the
customer-contact matrix.

3) All parts of an organization, as well as external suppliers and customers across the supply chain,
need to be involved to ensure that processes are providing the most value to their internal and
external customers.
Answer: TRUE
Difficulty: Easy
Keywords: supply chain process, business process
Learning Outcome: Discuss operations and operations management as a competitive advantage for the
organization
AACSB: Application of Knowledge
Learning Obj.: Understand the process structure in services and how to position a service process on the
customer-contact matrix.

4) Processes, by their nature, are found only in the operations function of an organization.
Answer: FALSE
Difficulty: Easy
Keywords: operations function, process
Learning Outcome: Discuss operations and operations management as a competitive advantage for the
organization
AACSB: Application of Knowledge
Learning Obj.: Understand the process structure in services and how to position a service process on the
customer-contact matrix.
5) Customer involvement reflects the ways in which customers become part of the process and the
extent of their participation.
Answer: TRUE
Difficulty: Moderate
Keywords: customer contact, customer participation, customer involvement
Learning Outcome: Discuss operations and operations management as a competitive advantage for the
organization
AACSB: Application of Knowledge
Learning Obj.: Understand the process structure in services and how to position a service process on the
customer-contact matrix.

6) Service providers with a line process tend to move customers, materials, or information in a fixed
sequence from one operation to the next.
Answer: TRUE
Difficulty: Moderate
Keywords: line process, service provider, standard process
Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in
services
AACSB: Application of Knowledge
Learning Obj.: Understand the process structure in services and how to position a service process on the
customer-contact matrix.

7) A moment of truth or service encounter is face-to-face interaction between the customer and a
service provider.
Answer: TRUE
Difficulty: Easy
Keywords: moment of truth, face-to-face interaction, customer, service provider
Learning Outcome: Discuss operations and operations management as a competitive advantage for the
organization
AACSB: Application of Knowledge
Learning Obj.: Understand the process structure in services and how to position a service process on the
customer-contact matrix.

8) Divergence is the extent to which the process is customized with considerable latitude on how the
tasks are performed.
Answer: TRUE
Difficulty: Moderate
Keywords: divergence, customization
Learning Outcome: Discuss operations and operations management as a competitive advantage for the
organization
AACSB: Application of Knowledge
Learning Obj.: Understand the process structure in services and how to position a service process on the
customer-contact matrix.

9) A front office structure features high levels of customer contact where the service provider interacts
directly with the internal or external customer.
Answer: TRUE
Difficulty: Easy
Keywords: front office process structure, customer contact, service provider interaction
Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in
services
AACSB: Application of Knowledge
Learning Obj.: Understand the process structure in services and how to position a service process on the
customer-contact matrix.
10) Back office work is typically routine, with many steps having considerable divergence.
Answer: FALSE
Difficulty: Easy
Keywords: back office process structure, divergence
Learning Outcome: Describe the main types of operations processes and layouts in manufacturing and in
services
AACSB: Application of Knowledge
Learning Obj.: Understand the process structure in services and how to position a service process on the
customer-contact matrix.