Deck 3: Design of Products and Services

Question 1

The conclusion of the product development process is when the product is withdrawn from the market.

Answer 1

False

Question 2

A key tool of a quality function deployment team is the house of quality matrix.

Answer 2

True

Question 3

A contract manufacturer is an organization capable of manufacturing and/or purchasing all of the components needed to produce a finished product or device.

Answer 3

True

Question 4

Designing a new product for aesthetics and for the user is generally termed industrial design.

Question 5

One goal of having a core competency is to do something better than anyone else.

Question 6

Target customers are specified during "Phase 0: Planning" of the generic product development process.

Question 7

Early prototypes of a new product, using the same geometry and material processes as the production versions, are usually constructed during the concept development phase of the product development process.

Question 8

DFMA stands for design for manufacturing and assembly.

Question 9

Value analysis/value engineering has as its objective to increase product quality and reduce costs.

Question 10

In a concurrent engineering approach to product design and development, an integration team ensures that various parts of the product are compatible with the needs of the target customer.

Question 11

The generic development process outlined in the textbook is followed by many, if not most, of the firms in the Fortune 500.

Question 12

The main purpose of concurrent engineering is to improve product quality.

Question 13

Core competencies are those things that everyone in the firm must be able to do well.

Question 14

Specialized design firms tend to have highly developed processes that support the needs of particular industries.

Question 15

A key decision point in the generic development process during "Phase 1: Concept Development" is project approval.

Question 16

Quality function deployment is an engineering analysis whose purpose is to simplify products and processes.

Question 17

Quality function deployment involves listening to customers to determine the characteristics of a superior product.

Question 18

One of the methodologies that can aid in designing a new product for customers is a house of quality matrix.

Question 19

A key decision point in the generic development process during "Phase 4: Testing and Refinement" is concept approval.

Question 20

A competency is not core if it is easy for competitors to imitate.

Question 21

In the generic product development process, Phase 2 (system-level design) begins with corporate strategy and incorporates market objectives.

Question 22

The best way to understand the financial implications of a product development project is to construct a base-case financial model.

Question 23

An increase in cost will result in an increase in the NPV.

Question 24

Because ecodesigned products are innovative and have better environmental performance, they can be of a slightly lesser quality than the market standard.

Question 25

Designing a service is very similar to designing a product.

Question 26

In service design, divergence is a measure of how different a new service is from the existing services of the firm.

Question 27

Operational design and development decisions involve deciding if the firm should go ahead with a given decision or stop now.

Question 28

Designing a new service is costly.

Question 29

Productivity is a measure of how hard workers work.

Question 30

Sensitivity analysis uses mathematical models to model consumer acceptance of a new product based on the features that are included.

Question 31

The "house of quality" matrix is a technique that relates customer requirements to concrete operating or engineering goals.

Question 32

Ecodesign replaces one or more of the other requirements considered in the design process.

Question 33

The ecodesign approach focuses exclusively on the design and commercial launch phases of the product's life cycle.

Question 34

Incorporation of environmental considerations in the design and development of products or services is called ecodesign.

Question 35

One of the major benefits of DFMA is that products are designed that customers will want.

Question 36

Measures that relate to the reliability of the product in use are referred to as conformance quality.

Question 37

In the generic product development process, collecting customer needs is accomplished during Phase 0 (planning).

Question 38

DPMO measures variability.

Question 39

In determining how different a new service is compared to the current services offered by the firm, there are four things to consider.

Question 40

Ultimate value is the measure of the value of a product in the marketplace.

Question 41

Similarity of projects allows for a streamlined and highly structured development process in which variant of the generic product development process?

A) Technology-push products
B) Customized products
C) Complex systems
D) Quick-build products
E) Process-intensive products

Question 42

Which of the following is a time-to-market performance measure used in judging product development performance?

A) Frequency of new-product introductions
B) Product reliability
C) Customer loyalty
D) Yield
E) Value analysis

Question 43

The most basic categories of cash flow for a typical new product do not include:

A) Depreciation
B) Ramp-up cost
C) Development cost
D) Sales revenue
E) Marketing cost

Question 44

Which of the following is not a typical phases of product development?

A) Concept development
B) Value engineering
C) System-level design
D) Testing and refinement
E) Production/ramp-up

Question 45

Consumer electronics is an example of a product developed in which variant of the generic product development process?

A) Technology-push products
B) Customized products
C) Platform products
D) Quick-build products
E) Process-intensive products

Question 46

Concept development assumes a proven technology in which variant of the generic product development process?

A) Technology-push products
B) Quick-build products
C) Complex systems
D) Platform products
E) Process-intensive products

Question 47

Which of the following is a characteristic of concurrent engineering?

A) Integrated computer-assisted design
B) Using automated guided vehicles
C) Separate development teams working at once
D) Having an excellent forecasting system
E) The design-build-test cycle

Question 48

A reason that firms must develop more new products than ever is which of the following?

A) Product life cycles are shorter.
B) Commitments to joint venture partners.
C) They are replacing old customers with new ones.
D) To amortize heavy investments in development labs.
E) The increased difficulty of defending patents and trade names.

Question 49

Quality function deployment (QFD):

A) is a manufacturing function aimed at lowering cost by reducing the portion of rejected units.
B) fills the house of quality matrix with the designer's aspirations for the product.
C) starts with studying and listening to customers.
D) is a place where the quality assurance function is housed.
E) is another term for value engineering.

Question 50

What dimension of competitiveness does time-to-market performance in product design and process selection affect?

A) Engineering hours per project
B) The cost of ongoing service
C) Responsiveness to customer needs
D) Aesthetics of design
E) None of these choices are correct

Question 51

Advocates of financial modeling of product design projects argue that:

A) financial analysis focuses on measurable quantities only.
B) financial analysis brings discipline and control to the product development process.
C) sufficiently rigorous financial analysis can accurately forecast the product's profit potential.
D) financial analysis is as solid as the assumptions that go into the model.
E) financial analysis nurtures innovation and creativity.

Question 52

Which of the following is primarily used to help design products that will connect product attributes with customer desires?

A) Phase 0: Planning
B) House of quality matrix
C) Value analysis/value engineering
D) Concurrent engineering
E) System-level design

Question 53

Design for manufacturing and assembly delivers product improvements by emphasizing which of the following?

A) Reducing product quality during the assembly process
B) Simplification of the product by reducing the number of separate parts
C) Reducing equipment in the production process
D) Designing products so they can be manufactured by a virtual factory
E) Designing products that customers will want

Question 54

Economic analysis of product development projects must evaluate which of the following?

A) Planned profitability of the product
B) Expected market share to be attained
C) Net present value of profits
D) Timing and amount of net cash flow
E) Demand elasticity of the product

Question 55

The purpose of value analysis/value engineering (VA/VE) is to:

A) simplify products and processes
B) improve the value that customers find in existing products
C) relate the customer's needs to technical specifications
D) meet budgets and improve the results of financial models
E) facilitate better cooperation between business functions

Question 56

System integration and validation are an important step in which variant of the generic product development process?

A) Technology-push products
B) Customized products
C) Complex systems
D) Quick-build products
E) Process-intensive products

Question 57

The aim of quality function deployment (QFD) is:

A) to facilitate house of quality analysis.
B) to provide value analysis/value engineering input.
C) to integrate design for manufacturing and assembly (DFMA).
D) to facilitate better cooperation between business functions.
E) to get the voice of the customer into the design of a product.

Question 58

Sensitivity analysis of the base-case financial model is a useful tool for which of the following reasons?

A) To determine how long the development process can profitably last
B) To understand how many technical people are needed to make the project a success
C) To help understand the basic trade-offs of resources committed and cash received
D) To identify the necessary product launch date
E) To set marketing and sales budgets

Question 59

Economic analysis of product development projects is useful in which of the following circumstances?

A) Factory location
B) Distribution decisions
C) Go/no-go milestones
D) Demand estimation
E) Pricing

Question 60

What dimension of competitiveness does quality in product design affect?

A) Engineering hours per project
B) The cost of ongoing service
C) Responsiveness to customer needs
D) Aesthetics of design
E) None of these choices are correct

Question 61

A core competency has three characteristics. Which of the following is not one of those characteristics?

A) It provides potential access to a wide variety of markets.
B) It provides a low cost.
C) It increases perceived customer benefit.
D) It is hard for competitors to imitate.

Question 62

This phase includes the definition of the product architecture and the decomposition of the product into subsystems and components.

A) Phase 1: Concept development
B) Phase 2: System-level design
C) Phase 3: Detail design
D) Phase 4: Testing and refinement
E) Phase 5: Production ramp-up

Question 63

This phase includes the complete specification of the geometry, materials, and tolerances of all the unique parts in the product and the identification of all the standard parts to be purchased from suppliers.

A) Phase 1: Concept development
B) Phase 2: System-level design
C) Phase 3: Detail design
D) Phase 4: Testing and refinement
E) Phase 5: Production ramp-up

Question 64

Which of the following is not a typical phase of product development?

A) Concept development
B) Planning
C) System-level design
D) Early market feedback
E) Production/ramp-up

Question 65

An important issue when developing a new service or changing an existing one is the question of how different the new service is compared to the current services offered by the firm. Which of the following is not a general factor to consider when determining this?

A) Similarity to current services
B) Similarity of expected customers to current customers
C) Similarity to current processes
D) Financial justification

Question 66

The degree to which the product or service design specifications are met is:

A) conformance quality.
B) overall quality.
C) customer quality.
D) meaningful quality.
E) design quality.

Question 67

In this phase, the needs of the target market are identified, alternative product concepts are generated and evaluated, and one or more concepts are selected for further development and testing.

A) Phase 1: Concept development
B) Phase 2: System-level design
C) Phase 3: Detail design
D) Phase 4: Testing and refinement
E) Phase 5: Production ramp-up

Question 68

This phase involves the construction and evaluation of multiple preproduction versions of the product.

A) Phase 1: Concept development
B) Phase 2: System-level design
C) Phase 3: Detail design
D) Phase 4: Testing and refinement
E) Phase 5: Production ramp-up

Question 69

Performance measures discussed for development projects do not include

A) frequency of new product introductions.
B) yield.
C) percentage sales coming from very old products.
D) cost of materials and tooling.
E) conformance-reliability in use.

Question 70

In this phase, the product is made using the intended production system.

A) Phase 1: Concept development
B) Phase 2: System-level design
C) Phase 3: Detail design
D) Phase 4: Testing and refinement
E) Phase 5: Production ramp-up

Question 71

The inherent value of the product in the marketplace is:

A) conformance quality.
B) overall quality.
C) customer quality.
D) meaningful quality.
E) design quality.