Question 1

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

Accepted Answer

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. 
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. E

Question 2

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

Accepted Answer

A)  50% 
B)  below 25% 
C)  25 to 35% 
D)  above 60% 
E)  35 to 45% 
A)  50% 
B)  below 25% 
C)  25 to 35% 
D)  above 60% 
E)  35 to 45% A

Question 3

Identify the factors that influence new product opportunities.

Accepted Answer

Factors that influence new product opportunities include economic change, sociological and demographic change, technological change, political change, and other changes brought about through market practice, professional standards, suppliers, and distributors.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

The answer of A listing of the components, their description,...

Question 7

What is quality function deployment (QFD)?

Accepted Answer

QFD refers to determining what

Question 8

A company manufactures specialty pollution-sensing devices for the offshore oil industry. One particular device has reached maturity, and the company is considering whether to replace it with a newer model. Technologies have not changed dramatically, so the new device would have similar functionality to the existing one, but would be smaller and lighter in weight. The firm's three choices are: keep the old model; design a replacement device with internal resources; and purchase a new design from a firm that is one of its suppliers. The market for these devices will be either "receptive" or "neutral" of the replacement model. The financial estimates are as follows: Keeping the old design will yield a profit of $6 million dollars. Designing the replacement internally will yield $10 million if the market is "receptive," but a $3 million loss if the market is "neutral." Acquiring the new design from the supplier will profit $4 million under "receptive," $1 million under "neutral." The company feels that the market has a 70% chance of being "receptive" and a 30% chance of being "neutral." Draw the appropriate decision tree. Calculate expected value for all courses of action. What action yields the highest expected value?

Accepted Answer

@#IMG-DLM& The three expected monetary values are:

Question 9

Black & Decker's hand-powered tools and Hewlett-Packard's printer business are examples of using enhancements and migrations of existing products to build on ________.

Accepted Answer

The answer of Black & Decker's hand-powered tools and Hewlett-Packard's...

Question 10

The ________ is the crucial moment between the service provider and the customer that exemplifies, enhances, or detracts from the customer's expectations.

Accepted Answer

The answer of The ________ is the crucial moment between...

Question 11

Identify the four methods of service design that can reduce costs and enhance the product.

Accepted Answer

Customizing as late in the process as po

Question 12

An operations manager's ethical responsibilities

Accepted Answer

A)  are limited to the production phase of product life cycle. 
B)  are limited to following published laws and regulations. 
C)  extend from design, to production, to final destruction/disposition of a product. 
D)  do not include being efficient with the firm's resources. 
E)  need not consider a product design's impact on the entire economy. 
A)  are limited to the production phase of product life cycle. 
B)  are limited to following published laws and regulations. 
C)  extend from design, to production, to final destruction/disposition of a product. 
D)  do not include being efficient with the firm's resources. 
E)  need not consider a product design's impact on the entire economy.

Question 13

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

Accepted Answer

A)  It is too expensive to use in most manufacturing and design settings. 
B)  It is an old 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 negatively impacts quality. 
A)  It is too expensive to use in most manufacturing and design settings. 
B)  It is an old 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 negatively impacts quality.

Question 14

For a full-time college student, which of the following moments of truth exemplifies the customer's standard expectations?

Accepted Answer

A)  Your advisor made you wait, even though you had an appointment. 
B)  You had to visit more than once to reach your academic advisor. 
C)  Your advisor was competent, helpful, and understanding. 
D)  Your advisor failed to keep her appointment with you. 
E)  Your advisor offered to work with you after regular work hours. 
A)  Your advisor made you wait, even though you had an appointment. 
B)  You had to visit more than once to reach your academic advisor. 
C)  Your advisor was competent, helpful, and understanding. 
D)  Your advisor failed to keep her appointment with you. 
E)  Your advisor offered to work with you after regular work hours.

Question 15

The role of decision trees in product design is

Accepted Answer

A)  to rank products in descending order of their dollar contribution to the firm. 
B)  to better understand the customers' wants. 
C)  to calculate the expected value of each course of action. 
D)  to calculate the value of quality function deployment. 
E)  to calculate the value of the moment of truth. 
A)  to rank products in descending order of their dollar contribution to the firm. 
B)  to better understand the customers' wants. 
C)  to calculate the expected value of each course of action. 
D)  to calculate the value of quality function deployment. 
E)  to calculate the value of the moment of truth.

Question 16

Which of the following statements is not true?

Accepted Answer

A)  Virtually all of Honda's sales (autos, motorcycles, generators, lawn mowers) are based on its outstanding engine technology. 
B)  Intel focuses on microprocessors. 
C)  Michelin focuses on tires. 
D)  Firms such as 3M establish goals for profitability from new products. 
E)  Dell Computers provides fast delivery to customers, but, in return, customers may only select from a limited choice of hardware configurations. 
A)  Virtually all of Honda's sales (autos, motorcycles, generators, lawn mowers) are based on its outstanding engine technology. 
B)  Intel focuses on microprocessors. 
C)  Michelin focuses on tires. 
D)  Firms such as 3M establish goals for profitability from new products. 
E)  Dell Computers provides fast delivery to customers, but, in return, customers may only select from a limited choice of hardware configurations.

Question 17

A company looking for venture capitalist funding is deciding on the design of its operating system (OS) for its new phone. The first option is to simply buy the OS from another company. This would result in sales of either 10,000 units if the market is not crowded with similar phones or sales of only 3,000 units if the market is crowded. If the company decides to design its own OS the phone would have sales of 70,000 units if the OS was popular but sales of only 2,000 if the OS was a failure. Suppose that to recoup the cost of designing their own OS the company would need to sell twice as many phones as when they simply buy the OS for the profit from the scenarios to be equal. Which option should the company choose if the probability that the market is/ is not crowded is 50% and the probability that the OS is popular is 75%?

Accepted Answer

@#IMG-DLM& EMV of buy OS is .5(3000) + .5(10000) =

Question 18

The three major subdivisions of the product decision are

Accepted Answer

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. 
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 19

Describe the benefits associated with value engineering.

Accepted Answer

Benefits include immediate cost reductio

Question 20

Which of the following is true regarding value engineering?

Accepted Answer

A)  Value engineering occurs only after the product is selected and designed. 
B)  Value engineering is the same as value analysis. 
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. 
A)  Value engineering occurs only after the product is selected and designed. 
B)  Value engineering is the same as value analysis. 
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.

Exam 5: Design of Goods and Services

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

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

Identify the factors that influence new product opportunities.

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

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

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

What is quality function deployment (QFD)?

Black & Decker's hand-powered tools and Hewlett-Packard's printer business are examples of using enhancements and migrations of existing products to build on ________.

The ________ is the crucial moment between the service provider and the customer that exemplifies, enhances, or detracts from the customer's expectations.

Identify the four methods of service design that can reduce costs and enhance the product.

An operations manager's ethical responsibilities

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

For a full-time college student, which of the following moments of truth exemplifies the customer's standard expectations?

The role of decision trees in product design is

Which of the following statements is not true?

The three major subdivisions of the product decision are

Describe the benefits associated with value engineering.

Which of the following is true regarding value engineering?

Operations and Productivity

Operations Strategy in a Global Environment

Project Management

Forecasting

Managing Quality

Process Strategy and Sustainability

Location Strategies

Layout Strategies

Human Resources, Job Design, and Work Measurement

Supply-Chain Management

Inventory Management

Aggregate Planning

Material Requirements Planning Mrp and Erp

Short-Term Scheduling

Lean Operations

Maintenance and Reliability

Decision-Making Tools

Linear Programming

Transportation Models

Waiting-Line Models

Learning Curves

Simulation

Supply Chain Management Analytics

Sustainability in the Supply Chain

Statistical Process Control

Capacity and Constraint Management

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