Question 1

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 2

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 emphasizes on reducing waste and improving efficiency which can be achieved by minimizing unnecessary inventory. TQM aims at producing goods and services on demand and ensuring timely deliveries to customers.

Question 3

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

Accepted Answer

This statement is false. Research has shown that giving employees greater autonomy and responsibility can actually increase their motivation and job satisfaction, leading to higher productivity and efficiency. Empowered self-managed teams can also lead to better decision-making and problem-solving abilities. However, it is important to provide the necessary resources, training, and support to ensure that teams are set up for success.

Question 4

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 5

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 team members, not contract members. Contract members are those who are hired to work on the project for a specific period of time or task.

Question 6

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

A fixed-position layout is typically used for large and complex products that are difficult or impossible to move, such as ships, aircraft, or buildings. It is not typically used for producing custom-made products.

Question 7

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

Accepted Answer

Although inputs from members are important, they may not be sufficient on their own for successful product development. Other factors such as market research, technological advancements, and competitor analysis also need to be taken into consideration.

Question 8

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, workstations are arranged based on the type of process required, and each workstation is self-contained, allowing the products to move to whichever station is needed for the next operation.

Question 9

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 involves managing the activities of the value chain, from idea generation to commercialization, to bring new or improved goods and services to the market.

Question 10

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

Incremental product innovation refers to small, gradual improvements to existing products or services, rather than the development of radically new ones. Fundamental shifts in technology may lead to disruptive innovation, which can result in the creation of new goods and services.

Question 11

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

Accepted Answer

This statement is true as each step in the process increases the chances of an error occurring, whether it be due to human error or a fault in the machinery being used.

Question 12

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, timelines, and development milestones is called a contract book.

Question 13

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 view of inventory aims to reduce excess inventory and instead have inputs delivered as they are needed to meet demand, rather than keeping excess stock in a warehouse. This is done to reduce waste and increase efficiency.

Question 14

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

Accepted Answer

When the rate of technological change is high, managers need to innovate in order to keep up with the competition and to stay relevant in the market. Failure to innovate could lead to obsolescence and eventual failure of the company. Therefore, it is important for managers to constantly explore new ideas, technologies and processes to stay ahead of the curve.

Question 15

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

Accepted Answer

This is correct, incremental product innovations refer to the gradual improvements and refinements of existing products as existing technologies are perfected. This is in contrast to radical product innovation, which involves the creation of entirely new products or technologies.

Question 16

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

Accepted Answer

Increasing the efficiency of a system can lead to increased customer satisfaction, which can attract more customers.

Question 17

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

By using the internet, companies can streamline communication and information sharing with both customers and suppliers, leading to more efficient coordination and potentially reducing costs.

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

This statement is true, as process reengineering entails identifying and eliminating tasks that are unnecessary or redundant, and streamlining the remaining tasks to improve efficiency and reduce the time required for each task. The end goal is to make the order fulfillment process faster and more efficient, which ultimately benefits both the business and its customers.

Question 20

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 automation technology and systems to allow for efficient and adaptable production processes. It aims to reduce costs and increase productivity through quick adaptation to changes in demand and product customization.

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