1. When comparing manufacturing and service activities, measuring the productivity and quality of services is:

a. more difficult than manufacturing since services are intangible and have more direct contact with the customer.

b. easier than manufacturing since services are intangible and have more direct contact with the customer.

c. more difficult than manufacturing since services are tangible and have a more direct contact with the customer.

d. easier than manufacturing since services are intangible and have less direct contact with the customer.

e. more difficult than manufacturing since services are tangible and have a less direct contact with the customer.

2. Which of the following is true with regards to the output of manufacturing?

a. It is a tangible product.

b. It is often produced and consumed separately.

c. It can be inventoried.

d. It has a consistent product definition.

e. All of the above.

3. Structural operational decision areas consist of:

a. investments in workforce, production planning/control, quality systems, and organization.

b. investments in facilities, capacity, vertical integration/sourcing, and technology.

c. investments in workforce, facilities, quality systems, and technology.

d. investments in facilities, capacity, production planning/control, and quality systems.

e. None of the above.

4. The implementation of total quality management (TQM):

a. is the same for both manufacturing and service organizations.

b. only applies to manufacturing organizations since continuous improvement tools and techniques are used to improve processes.

c. only applies to the service organizations and emphasizes customer satisfaction.

d. addresses all areas and employees of an organization, emphasizes customer satisfaction, and uses continuous improvement tools and techniques.

e. only considers customer satisfaction and customer retention.