In order to keep processing costs down, which of the following should a company opt for in terms of operating processes?

• A. low variation, high visibility
• B. high variation, low visibility
• C. low volume, high variety
• D. high volume, low variety

The Public Sector only provides Services not Goods. Is this TRUE?

• A. no- the public sector may provide goods as well as services
• B. yes- the private sector is responsible for the production of goods, whereas services can be provided either by the public or private sector
• C. no- the public sector provides goods rather than services
• D. yes- the public sector provides services such as education and health care

Elderberry Ltd is an established organisation in the agricultural industry but has recently expanded into manufacturing its own juice range. The company is at the 'Introduction' stage of the product lifecycle and is attempting to bring new products to market. Which of the following performance objectives would be the most dominant at this stage of the lifecycle?

• A. dependability
• B. cost
• C. flexibility
• D. speed

Little Joy Ltd is a large company with several functional departments. Below are details of four departments. For each, you must decide which functional area of the business the department is, as well as the SERVQUAL Gap that each Department Lead is concerned with.
Department 1: This department is concerned with the creation of products. The products are created in line with BS EN 716-1 and undergo vigorous tests before they leave the factory. Many customers are unaware of the additional costs of testing to BS EN 716-1 and complain about the price of this product line.
Department 2: Other departments of the business are internal customers of this functional area and approach the Department Lead when they require something to be bought. Often the internal customers have unrealistic expectations of the timescales involved in the process and the Department Lead spends a lot of time explaining lead times and logistics.
Department 3: This functional area creates the budgets for the company and emails these to the Department Leads at the beginning of every quarter. Due to the complexity of the documents, other functional areas of the business often don't understand the information provided.
Department 4: This area of the business is concerned with revenue, which has recently slumped. The Department Lead is conducting market surveys to find out the reason for this.
Complete the table below by listing the Functional Area of the business, and the corresponding SERVQUAL Gap. Each response should only be used once: procurement, finance, sales, production, satisfaction gap, delivery gap, standards gap, communication gap.

Which of the following will you put into box 3?

• A. finance
• B. procurement
• C. sales
• D. production

Many companies choose locations for manufacturing facilities in low-cost countries. What is the benefit for a company of doing this?

• A. close to customers, low cost land, readily available labour
• B. low cost land and facilities, access to government incentives
• C. high environmental and ethical standards, low cost land
• D. far from customers, availability of raw materials