Question 1

A written agreement that details product development factors such as responsibilities, resource commitments, budgets, time lines, and development milestones is called a contract book.

Accepted Answer

A written agreement that details product development factors such as responsibilities, resource commitments, budgets, time lines, and development milestones is called a contract book.

Question 2

The members of a team who bear primary responsibility for the success of a project and who stay with a project from inception to completion are called contract members.

Accepted Answer

The members of a team who bear primary responsibility for the success of a project and who stay with a project from inception to completion are called core members.

Question 3

Using the Internet to manage the value chain reduces the costs of coordination both between the company and its customers and between the company and its suppliers.

Accepted Answer

Using the Internet to manage the value chain reduces the costs of coordination both between the company and its customers and between the company and its suppliers.

Question 4

The gradual improvement and refinement of existing products over time as existing technologies are perfected is called incremental product innovations.

Accepted Answer

The gradual improvement and refinement of existing products over time as existing technologies are perfected is called incremental product innovation.

Question 5

Inputs from an organization's members are sufficient for successful product development.

Accepted Answer

Successful product development requires inputs from more than just an organization's members; also needed are inputs from customers and suppliers.

Question 6

The just-in-time view of inventory leads an organization to stockpile excess inputs in a warehouse in case it needs them to meet sudden upturns in demand.

Accepted Answer

The just-in-time inventory system is a system in which parts or supplies arrive at an organization when they are needed, not before.

Question 7

Total quality management focuses on stocking a large inventory so that raw materials are available even before they are needed.

Accepted Answer

Total quality management promotes the introduction of a just-in-time inventory system in which parts or supplies arrive at an organization when they are needed, not before.

Question 8

Flexible manufacturing is a strategy based on the use of manual labor to reduce the costs associated with the product assembly process or the way services are delivered to customers.

Accepted Answer

Flexible manufacturing is a strategy based on the use of IT to reduce the costs associated with the product assembly process or the way services are delivered to customers.

Question 9

An automobile manufacturer redesigning the body of one of its cars to improve its aerodynamics is an example of quantum product innovation.

Accepted Answer

The gradual improvement and refinement of existing products over time as existing technologies are perfected is called incremental product innovations. Quantum product innovation results in the development of new, often radically different, kinds of goods and services because of fundamental shifts in technology brought about by pioneering discoveries.

Question 10

Increasing the efficiency of a system is not related to attracting more customers.

Accepted Answer

Developing functional strategies to improve efficiency is an extremely important issue for managers because increased efficiency lowers production costs, which lets an organization make a greater profit or attract more customers by lowering its price.

Question 11

Product development is the management of the value chain activities involved in bringing new or improved goods and services to the market.

Accepted Answer

Product development is the management of the value chain activities involved in bringing new or improved goods and services to the market.

Question 12

People often respond poorly to greater autonomy and responsibility; the use of empowered self-managed teams decreases productivity and efficiency.

Accepted Answer

People often respond well to greater autonomy and responsibility, the use of empowered self-managed teams can increase productivity and efficiency.

Question 13

The more steps required to assemble a product or provide a service, the more opportunities there are for making a mistake.

Accepted Answer

The more steps required to assemble a product or provide a service, the more opportunities there are for making a mistake.

Question 14

The greater the rate of technological change in an industry, the more important it is for managers to innovate.

Accepted Answer

The greater the rate of technological change in an industry, the more important it is for managers to innovate.

Question 15

Process reengineering involves the fundamental rethinking and radical redesign of customer services.

Accepted Answer

Process reengineering involves the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical measures of performance such as cost, quality, service, and speed.

Question 16

In a process layout, each workstation is self-contained, and a product goes to whichever workstation is needed to perform the next operation to complete the product.

Accepted Answer

In a process layout, each workstation is relatively self-contained, and a product goes to whichever workstation is needed to perform the next operation to complete the product.

Question 17

Incremental product innovation results in the development of new, often radically different, kinds of goods and services because of fundamental shifts in technology brought about by pioneering discoveries.

Accepted Answer

Quantum product innovation results in the development of new, often radically different, kinds of goods and services because of fundamental shifts in technology brought about by pioneering discoveries. Incremental product innovation results in gradual improvements and refinements of existing products.

Question 18

The goal of Six Sigma is to improve a company's quality to only six defects per million.

Accepted Answer

The goal of Six Sigma is to improve a company's quality to only three defects per million.

Question 19

Effective process reengineering reduces the number of order fulfillment tasks that must be performed or reduces the time each task takes.

Accepted Answer

Effective process reengineering reduces the number of order fulfillment tasks that must be performed, or reduces the time they take, and so reduces operating costs.

Question 20

A fixed-position layout is used for producing a variety of custom-made products, each tailored to the needs of a different kind of customer.

Accepted Answer

In a fixed-position layout, the product stays in a fixed position. A fixed-position layout is commonly used for products that are complex and difficult to assemble or so large that moving them from one workstation to another would be difficult.

Quiz 9: Value Chain Management: Functional Strategies for Competitive Advantage

A written agreement that details product development factors such as responsibilities, resource commitments, budgets, time lines, and development milestones is called a contract book.

The members of a team who bear primary responsibility for the success of a project and who stay with a project from inception to completion are called contract members.

Using the Internet to manage the value chain reduces the costs of coordination both between the company and its customers and between the company and its suppliers.

The gradual improvement and refinement of existing products over time as existing technologies are perfected is called incremental product innovations.

Inputs from an organization's members are sufficient for successful product development.

The just-in-time view of inventory leads an organization to stockpile excess inputs in a warehouse in case it needs them to meet sudden upturns in demand.

Total quality management focuses on stocking a large inventory so that raw materials are available even before they are needed.

Flexible manufacturing is a strategy based on the use of manual labor to reduce the costs associated with the product assembly process or the way services are delivered to customers.

An automobile manufacturer redesigning the body of one of its cars to improve its aerodynamics is an example of quantum product innovation.

Increasing the efficiency of a system is not related to attracting more customers.

Product development is the management of the value chain activities involved in bringing new or improved goods and services to the market.

People often respond poorly to greater autonomy and responsibility; the use of empowered self-managed teams decreases productivity and efficiency.

The more steps required to assemble a product or provide a service, the more opportunities there are for making a mistake.

The greater the rate of technological change in an industry, the more important it is for managers to innovate.

Process reengineering involves the fundamental rethinking and radical redesign of customer services.

In a process layout, each workstation is self-contained, and a product goes to whichever workstation is needed to perform the next operation to complete the product.

Incremental product innovation results in the development of new, often radically different, kinds of goods and services because of fundamental shifts in technology brought about by pioneering discoveries.

The goal of Six Sigma is to improve a company's quality to only six defects per million.

Effective process reengineering reduces the number of order fulfillment tasks that must be performed or reduces the time each task takes.

A fixed-position layout is used for producing a variety of custom-made products, each tailored to the needs of a different kind of customer.