Deck 11: Managing the New Product Development Process

Question 1

A sequential process has an early warning system to indicate that planned features are not manufacturable.

Answer 1

False

Question 2

Firms always make decisions about projects on the basis of marketing criteria.

Answer 2

False

Question 3

Three-dimensional printing can generate a model in a few hours.

Answer 3

True

Question 4

In the context of design rules for fabricated assembly products,minimizing the number of parts for a product reduces direct labor and material handling costs.

Question 5

A company with a short development cycle can quickly revise or upgrade its offering as design flaws are revealed or technology advances.

Question 6

Parallel development processes are universally endorsed.

Question 7

Which of the following statements is true of partly parallel development processes?

A) It enhances the probability that R&D will design products that are difficult to manufacture.
B) It requires costly iterations between design stages.
C) It shortens overall cycle time.
D) It initiates product design after concept development is complete.

Question 8

Josh is the executive vice president of a bank.The president of the bank has recently asked Josh to use his influence to ensure that the bank's online banking project is developed and implemented.Paul has been asked to be a(n):

A) devil's advocate.
B) project champion.
C) entrepreneur.
D) mentor.

Question 9

Using computer-aided design (CAD)to build and test product design increases cycle time.

Question 10

Many firms use beta testing to get customer input early in the development process.

Question 11

Which of the following statements is true about a firm with a long development cycle time?

A) It can quickly revise or upgrade its product offering.
B) It is more likely to have a high cost of capital.
C) It can take advantage of both first-mover and second-mover advantages.
D) It is more likely to be able to fully amortize the fixed costs of development before that generation becomes obsolete.

Question 12

Suppliers can contribute ideas for product improvement or increased development efficiency.

Question 13

A firm can benefit from developing "antichampions."

Question 14

The time elapsed from project initiation to product launch,usually measured in months or years,is referred to as _____.

A) diffusion of innovation time
B) technology trajectory
C) development cycle time
D) the Six Sigma period

Question 15

In failure modes and effects analysis (FMEA),potential problems in a system are classified according to the time at which they occurred.

Question 16

In the product development process,expenditures increase as uncertainty increases.

Question 17

Computer-aided manufacturing (CAM)is faster and more flexible than traditional methods of manufacturing.

Question 18

The majority of all new product development projects result in an economic return.

Question 19

The use of executive sponsors reduces the effectiveness of a development process.

Question 20

Trekker Inc.has developed a product with a very short product development cycle.Which of the following can it typically expect?

A) The product's sales will be slow as consumers would already be committed to other products.
B) It will be able to provide complementary goods to enhance the attractiveness of its product.
C) It will be unable to fully amortize the fixed costs of development before the product becomes obsolete.
D) It will not be able to upgrade its product.

Question 21

Omega Cleaning Corp.wants to use the house of quality matrix in designing and developing a new vacuum cleaner.The use of house of quality is most likely to:

A) provide a common language and framework for members of a project team to use.
B) blur the relationship between product attributes and customer requirements.
C) conceal the competitive shortcomings of the company's existing products.
D) hide design trade-offs.

Question 22

Customers who face the same general needs of the marketplace but are likely to experience them months or years earlier than the rest of the market and stand to benefit disproportionately from solutions to those needs are referred to as _____.

A) laggards
B) intrapreneurs
C) early followers
D) lead users

Question 23

Astech Inc.has been developing a new graphic design software.The firm has released a functional version of the software and has sent it to several lead users for testing.Based on the feedback from the lead users,the firm is going to improve the design of the product and begin commercial production.This initial version of the product is referred to as the _____.

A) spiral model
B) substitute product
C) beta version
D) theta model

Question 24

According to the stage-gate process developed by Robert

A) criteria
B) outputs
C) deliverables
D) beta versions
G) Cooper, _____ are the results of the previous stage and are the inputs for the gate review.

Question 25

Explain the function of the go/kill gate in the stage-gate process for project development.

Question 26

Which of the following measures assesses the ratio of a firm's total profits from new products to its total expenditures?

A) Return on innovation
B) Average cycle time of the innovation
C) Percentage of development projects meeting deadlines
D) Percentage of development projects within the estimated budget

Question 27

Additive manufacturing refers to:

A) printing a design by laying down thin horizontal cross sections of material.
B) manually printing a new design that converges with an old design by adding details.
C) constructing a model by injection molding.
D) constructing a model by machining a mold.

Question 28

Beta Cleaning Equipment Corp.has started the actual design and development of a new floor buffing machine.It has the details of manufacturing,marketing,and operations of the new product as well.According to the stage-gate process,what is the next stage of this project?

A) Launch of the product by producing it commercially and selling it
B) Verification and validation of the new product, and its marketing and production
C) Formation a focus group to make sure the product meets user expectations
D) Development of a business case to justify the project

Question 29

What are the risks of championing?

Question 30

Theta Cleaning Corp.wants to use the house of quality matrix in designing and developing a new vacuum cleaner.What is the first step that Theta Cleaning should take?

A) Identification of customer requirements
B) Determination of the relative value or weight of customer requirements
C) Identification of the engineering attributes that determine the performance of the vacuum cleaner
D) Evaluation of the competing products to determine how well they meet customer needs

Question 31

What is quality function deployment (QFD)? What are its advantages?

Question 32

A _____ of a product is an early working prototype of the product released to users for testing and feedback.

A) beta version
B) substitute
C) spiral model
D) sigma model

Question 33

What is a partly parallel development process? Is it universally used?

Question 34

In the context of project development,an "antichampion" is:

A) a person who wishes to sabotage a new project.
B) a person who plays the role of the "devil's advocate."
C) a person who uses subjective criteria to evaluate a new project.
D) a person in a competing firm who sabotages market tests by promoting his company's products more heavily than normal.

Question 35

Sigma Cleaning Inc.wants to use the house of quality matrix in designing and developing a new vacuum cleaner.What is the last step that Sigma Cleaning will have to take?

A) Determination of the relative value or weight of customer requirements
B) Creation of a new design based on the design targets
C) Identification of the engineering attributes that determine the performance of the vacuum cleaner
D) Evaluation of the competing products to determine how well they meet customer needs

Question 36

Which of the following statements is true of design for manufacturing (DFM)methods?

A) It lengthens the development cycle time for products.
B) It increases the cost of production by reducing the number of parts involved in the manufacturing process.
C) It is a method of facilitating integration between engineering and manufacturing.
D) It is a method by which firms identify potential failures in a system and classify them according to their severity.

Question 37

Jupiter Tech Inc.has conducted a failure modes and effects analysis of a digital identification system that it developed.The scores are as follows: Severity = 4
Likelihood of occurrence = 2
Inability of controls to detect it = 3
What is the risk priority number of the digital identification system?

A) 24
B) 6
C) 2.67
D) 9

Question 38

In the context of failure modes and effects analysis,which of the following formulas is used to calculate the risk priority number?

A) Risk priority number = total profits from new products/total expenditures
B) Risk priority number = total profits from new products - total expenditures
C) Risk priority number = successful projects/total project portfolio
D) Risk priority number = severity × likelihood of occurrence × inability of controls to detect

Question 39

_____ is a distributed problem-solving model whereby a design problem or production task is presented to people who voluntarily contribute their ideas and effort in exchange for compensation,intrinsic rewards,or a combination thereof.

A) Championing
B) Crowdsourcing
C) Partly parallel development
D) Sequential development

Question 40

Delta Cleaning Equipment Corp.is experimenting with a faster and quieter machine to polish floors.To develop this concept,the company is contemplating using the lead user method of concept development.How does this method work? What are its advantages?