Business Services Business Services Operations 1 — Questions and Answers
Question 1: What is the primary goal of business process outsourcing (BPO)?
- Increase headcount
- Delegate non-core functions to external providers (Correct answer)
- Build proprietary software
- Eliminate all vendors
Correct answer: Delegate non-core functions to external providers
BPO involves contracting non-core business functions to third-party service providers to reduce costs and improve efficiency.
Question 2: Which metric is most commonly used to measure call center operational efficiency?
- Net Promoter Score
- Average Handle Time (AHT) (Correct answer)
- Employee turnover rate
- Gross margin
Correct answer: Average Handle Time (AHT)
Average Handle Time (AHT) measures the average duration of a customer interaction, making it a key call center efficiency metric.
Question 3: What does SLA stand for in business services contracts?
- Sales Leadership Agreement
- Service Level Agreement (Correct answer)
- Standard Liability Allowance
- Supplier License Authorization
Correct answer: Service Level Agreement
A Service Level Agreement (SLA) is a contract that defines the expected level of service between a provider and a client.
Question 4: Which of the following best describes a shared services center?
- A department that shares office space with competitors
- A centralized unit that provides support services to multiple business units (Correct answer)
- A customer-facing retail location
- An outsourced IT helpdesk
Correct answer: A centralized unit that provides support services to multiple business units
A shared services center consolidates support functions like HR, finance, and IT into one centralized unit serving multiple internal departments.
Question 5: In operations management, what does 'throughput' measure?
- Employee satisfaction
- The rate at which a system produces output over time (Correct answer)
- Total cost of services delivered
- Number of customer complaints
Correct answer: The rate at which a system produces output over time
Throughput is the rate at which a system generates output or completes processes within a given time period.
Question 6: What is a key benefit of implementing workflow automation in business services?
- Increases manual data entry
- Reduces processing errors and speeds up routine tasks (Correct answer)
- Eliminates the need for SLAs
- Requires more supervisory staff
Correct answer: Reduces processing errors and speeds up routine tasks
Workflow automation reduces human error and accelerates repetitive tasks, improving consistency and operational speed.
What is the primary goal of business process outsourcing (BPO)?