Deck 5: Design of Goods and Services

Question 1

A product's life cycle is divided into four stages,which are:

A)introduction,growth,saturation,and maturity.
B)introduction,growth,stability,and decline.
C)introduction,maturity,saturation,and decline.
D)introduction,growth,maturity,and decline.
E)incubation,growth,maturity,and decline.

Answer 1

introduction,growth,maturity,and decline.

Question 2

Which of these statements regarding Regal Marine is TRUE?

A)Product design is a critical decision for the firm.
B)Regal uses a three-dimensional CAD system to shorten product development time.
C)Regal still uses some wooden parts and hand-produces some components.
D)Regal's use of CAD has resulted in a superior product.
E)All of the above are true.

Answer 2

All of the above are true.

Question 3

The four phases of the product life cycle are incubation,introduction,growth,and decline.

Answer 3

False

Question 4

Relatively few new product ideas,perhaps only 1 in 250,become successfully marketed products.

Question 5

In the maturity stage of the product life cycle,operations managers will be particularly concerned with adding capacity or enhancing existing capacity to accommodate the increase in product demand.

Question 6

In which stage of the product life cycle should product strategy focus on process modifications as the product is being "fine-tuned" for the market?

A)introduction
B)growth
C)maturity
D)decline
E)incubation

Question 7

Product strategy may focus on developing a competitive advantage via differentiation,low cost,rapid response,or a combination of these.

Question 8

The three major elements of the product decision are:

A)selection,definition,and design.
B)goods,services,and hybrids.
C)strategy,tactics,and operations.
D)cost,differentiation,and speed of response.
E)legislative,judicial,and executive.

Question 9

What percentage of sales from new products is indicative of industry leaders?

A)50%
B)7.5%
C)10 to 15%
D)above 75%
E)20 to 25%

Question 10

Regal Marine:

A)no longer builds boats with any wooden parts.
B)has replaced all human labor with robots.
C)treats the product design decision as critical to its success.
D)gets its competitive advantage by being the low-cost producer of boats designed by others.
E)designs several new boats each year,but contracts other firms for their manufacture.

Question 11

The analysis tool that lists products in descending order of their individual dollar contribution to the firm is:

A)decision tree analysis.
B)Pareto analysis.
C)breakeven analysis.
D)product-by-value analysis.
E)product life cycle analysis.

Question 12

When should product strategy focus on forecasting capacity requirements?

A)at the introduction stage of the product life cycle
B)at the growth stage of the product life cycle
C)at the maturity stage of the product life cycle
D)at the decline stage of the product life cycle
E)at the saturation stage of the product life cycle

Question 13

At which stage of the product life cycle is product strategy likely to focus on improved cost control?

A)introduction
B)growth
C)maturity
D)saturation
E)inflation

Question 14

3M's goal is to produce 30% of its profit from products introduced in the last 4 years.

Question 15

________ lists products in descending order of the individual dollar contribution to the firm.

Question 16

In the ________ phase of the product life cycle,the product design has begun to stabilize.

Question 17

The objective of the product decision is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage.

Question 18

Regal Marine's attempts to keep in touch with customers and respond to the marketplace are made impossible because consumer tastes change and maritime engineering improves.

Question 19

________ is used to rank a company's products to determine which products represent the best use of the firm's resources,or,perhaps,to determine which products are to be eliminated.

A)Value analysis
B)Value engineering
C)Financial analysis
D)Product-by-value analysis
E)Product cost justification

Question 20

Regal Marine's use of ________ has reduced product development time and reduced problems with tooling and production.

Question 21

Identify factors that influence new product opportunities.

Question 22

Manufacturability and value engineering has which of the following benefits?
I.Reduced complexity of the product
II.Reduction of environmental impact
III.Additional standardization of components
IV.Robust design
V.Improved job design and safety

A)I,III,V
B)II,IV
C)I,III,IV
D)IV
E)I,II,III,IV,V

Question 23

Operations managers must be able to anticipate changes in which of the following?

A)product mix
B)product opportunities
C)the products themselves
D)product volume
E)all of the above

Question 24

What is the objective of the product decision?

Question 25

What is a product-by-value analysis,and what type of decisions does it help managers make?

Question 26

Which of the following is true regarding value engineering?

A)Value engineering occurs only after the product is selected and designed.
B)Value engineering creates fragile design.
C)Value engineering is oriented toward improvement of design.
D)Value engineering occurs during production when it is clear the product is a success.
E)Value engineering can save substantial amounts of product cost,but quality suffers.

Question 27

A graphic technique for defining the relationship between customer desires and product (or service)is:

A)product lifecycle management.
B)the house of quality.
C)the moment of truth.
D)the assembly drawing.
E)modular design.

Question 28

Provide some examples of recent product changes,i.e.new products that are replacing older ones.

Question 29

Which of the following represents an opportunity for generating a new product?

A)understanding the customer
B)demographic change,such as decreasing family size
C)changes in professional standards
D)economic change,such as rising household incomes
E)All of the above are such opportunities.

Question 30

Reducing the complexity of a product and improving a product's maintainability are activities of:

A)product lifecycle management (PLM).
B)product-by-value analysis.
C)manufacturability and value engineering.
D)organizing for product development.
E)design for destruction (DFD).

Question 31

Which of the following would likely cause a change in market opportunities based upon levels of income and wealth?

A)economic change
B)sociological and demographic change
C)technological change
D)political change
E)legal change

Question 32

The Japanese method of organizing for product design features:

A)teams.
B)product managers (champions).
C)distinct departments with assigned tasks.
D)a single organization without subdivision or individual teams.
E)none of the above.

Question 33

The ________ is a part of the quality function deployment process that utilizes a planning matrix to relate customer "wants" to "how" the firm is going to meet those "wants."

Question 34

Is it possible for a product's life cycle stage to affect its product strategy? In particular,describe how one product in growth and another in maturity might have different product strategies.

Question 35

Quality function deployment refers to both (1)determining what will satisfy the customer and
(2)translating those customer desires into a target design.

Question 36

"With respect to the product decision,managers must be able to accept risk and tolerate failure." Comment on why this is a necessary hazard in making new product decisions,given all the powerful tools and carefully built systems that support that decision.

Question 37

A result of concurrent engineering in product design is:

A)speedier product development.
B)lower quality.
C)less customer demand.
D)higher costs.
E)all of the above.

Question 38

________ is a process for determining customer requirements and translating them into attributes that each functional area can understand and act upon.

Question 39

Aggressive new product development requires that organizations build structures internally that contain what features?

Question 40

Quality function deployment (QFD):

A)determines what will satisfy the customer.
B)translates customer desires into the target design.
C)is used early in the design process.
D)is used to determine where to deploy quality efforts.
E)all of the above

Question 41

Which of the following is TRUE concerning advantages of CAD?

A)It provides accurate information flows to other departments.
B)Most product costs are determined at the design stage.
C)Design options are easier to review before final commitments are made.
D)Virtually all products have their development cycle shortened.
E)All of the above are true.

Question 42

What technology "builds" products by laying down successive thin layers of plastic,metal,glass,or ceramics?

A)CAM
B)STEP
C)3-D printing
D)replicator
E)virtual reality

Question 43

Computer-aided design (CAD)refers to the use of specialized computer programs to direct and control manufacturing equipment.

Question 44

Identify the benefits associated with manufacturability and value engineering.

Question 45

What is quality function deployment (QFD)?

Question 46

Products or services designed in easily segmented components are known as ________ designs.

Question 47

Robust design ensures that small variations in production or assembly do not adversely affect the product.

Question 48

Discuss the advisability of using modular assemblies in manufacturing.(What are the advantages and disadvantages?)To what extent can these arguments be applied to service products?

Question 49

The use of information technology to control machinery is called ________.

Question 50

Identify the 7 steps involved in building the house of quality.

Question 51

Bridget's Hamburger Stand uses only 7 ingredients but offers 15 different burgers.This process is known as:

A)Robust design.
B)QFD.
C)Modular design.
D)CAD.
E)Value analysis.

Question 52

If a design can be produced to requirements even when the production process has unfavorable conditions,the design is said to be ________.

Question 53

Which of the following is TRUE regarding computer-aided design?

A)It is too expensive to use in most manufacturing and design settings.
B)It is an obsolete technology.
C)It results in longer development cycles for virtually all products.
D)It is the use of computers to interactively design products and prepare engineering documentation.
E)It is the use of information technology to control machinery.

Question 54

________ provides a format allowing the electronic transmittal of three-dimensional data.

Question 55

Explain the difference between value analysis and value engineering.

Question 56

________ reviews successful products for improvement during the production process.

Question 57

Value analysis takes place:

A)when the product is selected and designed.
B)during the initial stages of production when something needs to be done to assure product success.
C)when the product is first conceived.
D)during the production process when it is clear that the new product is a success.
E)when the product cost is very low.

Question 58

What is the use of information technology to control machinery?

A)CAM
B)CAD
C)QFD
D)DFMA
E)STEP

Question 59

Modular design exists only in tangible products; it makes no sense in services.

Question 60

Identify at least three general benefits derived from CAD.

Question 61

Which of the following product development strategies has the highest product development risk?

A)acquiring the developer
B)alliances
C)joint ventures
D)new internally developed products
E)purchasing technology

Question 62

Boeing's 737 airplane and Hewlett-Packard's printer business are examples of using enhancements and migrations of existing products to build on a ________.

A)product template
B)product pulpit
C)product platform
D)product dais
E)product foundation

Question 63

Which of the following typically shows the hierarchy of components,their description,and the quantity of each required to make one unit of a product?

A)an engineering drawing
B)an assembly drawing
C)a bill of material
D)an assembly chart
E)a route sheet

Question 64

Which of the following is an example of an external product development strategy?

A)new internally developed products
B)enhancements to existing products
C)alliances
D)migrations of existing products
E)All of the above are examples of internal product development strategy.

Question 65

What identifies components by a coding scheme that specifies size,shape,and the type of processing (such as size)?

A)engineering drawing
B)group technology
C)bill of material
D)assembly drawing
E)assembly chart

Question 66

Group technology requires that:

A)each component be identified by a coding scheme that specifies size,shape,and the type of processing.
B)a specific series of engineering drawings be prepared.
C)all bills of material be prepared using the same format.
D)engineering change notices be linked to each of the bills of material and engineering notices.
E)the final products be standardized.

Question 67

The "make-or-buy" decision distinguishes between what an organization chooses to produce and what it chooses to purchase from suppliers.

Question 68

Boeing's 737 airplane and Hewlett-Packard's printer business are examples of using enhancements and migrations of existing products to build on a(n)________.

Question 69

Rapidly developing products and moving them to the market is part of time-based competition.

Question 70

Group technology enables the grouping of parts into families based on similar processing requirements.

Question 71

The hierarchy of components,their description,and the quantity of each required to make one unit of a product are documented on:

A)a group technology listing.
B)a route sheet.
C)a bill of material.
D)an engineering drawing.
E)a work order.

Question 72

A drawing that shows the dimensions,tolerances,materials,and finishes of a component is a(n)________.

Question 73

Identify the external product development strategies; describe each in a sentence or two.

Question 74

What is time-based competition?

Question 75

A listing of the hierarchy of components,their description,and the quantity of each required to make one unit of product is the ________.

Question 76

A work order is a list of the hierarchy of components,their description,and the quantity of each required to make one unit of the product.

Question 77

An engineering drawing shows the:

A)dimensions,tolerances,materials,and finishes of a component.
B)dimensions,tolerances,cost,and sales or use volume of a component.
C)materials,finishes,machining operations,and dimensions of a component.
D)cost,materials,tolerances,and lead-time for a component.
E)cost,dimensions,and machining operations for a component.

Question 78

Rapidly developing products and moving them to the market is referred to as ________.

Question 79

The dimensions,tolerances,materials,and finishes of a component are typically shown on a(n):

A)assembly chart.
B)engineering drawing.
C)bill of material.
D)assembly drawing.
E)route sheet.

Question 80

The enhancement of existing products is an external product development strategy.