Chapter 2

Question 1

What is Processing time?

Answer 1

The time it takes to perform a task.

Question 2

What is Queue time?

Answer 2

Is the time spend waiting

Question 3

What is the productivity formula

Answer 3

Quantity of Output/Quantity of Input

Question 4

Total production is 100,000lb

Labor Cost: $180,000
Raw Materials: $30,000
Energy Cost: $ 5,000

1. What is input dollar per labor?
2. What is the labor productivity per lb?

Answer 4

1) 0.465lbs lb per $

2) 0.55 lb labor per $ lb

Question 5

What is the Value of loyal Customer Equation (VLC)?

Answer 5

VLC+ (P) (CM) (RF) (BLC)
P = Price
CM = contribution margin (%)
RF = repurchase frequent (# of purchases per year)
BLC= Buyers life cycle:
1/defaction rate = 1/ (1 - retention rate)

Question 6

What is the MBNQA framework?

Answer 6

To provide a framework for performance excellence by understanding an organizations strengths and weakness. It also improves quality levels. It is still being used today

Question 7

What are the four sections on balanced scorescard performance categories?

Answer 7

1. Innovation and learning perspective
2. Internal Business Perspective
3. Customer Perspective
4. Financial Perspective