Exam 5: Design of Goods and Services

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A graphic technique for defining the relationship between customer desires and product/service is

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

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A company is deciding if it should do design of a product in-house or outsource the design.If outsourced the cost for a low bidder would be $40,000 and the cost for an expensive bidder $100,000.To do the design in-house would require over-time for an already stretched design team with total costs of $70,000.If all three designs (in-house,low bid,high bid)are equal in quality and the likelihood of finding a low bidder is 60% (meaning that 40% of the time the firm will have to hire the expensive bidder),should the company outsource design or do it in-house?

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  EMV of outsource is .4(100,000)+ .6(40,000)= $64,000 EMV of in-house is $70,000 Thus to minimize costs the firm should outsource the design. EMV of outsource is .4(100,000)+ .6(40,000)= $64,000
EMV of in-house is $70,000
Thus to minimize costs the firm should outsource the design.

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

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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."

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

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

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How does configuration management manifest itself when you ask for service on your automobile?

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

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Which of the following statements is not true?

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An operations manager's most ethical activity is to enhance productivity while delivering desired goods and services.Unfortunately,this activity is not environmentally sound.

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What is the objective of the product decision?

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Which of the following makes products that are less friendly to the environment?

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Which of the following scenarios illustrates a moment that meets the customer's expectations?

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The role of decision trees in product design is

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Identify the steps involved in building the House of Quality.

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Group technology requires that

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A product strategy may focus on differentiation,low cost,or rapid response.

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________ 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.

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The moment-of-truth is the crucial moment between the service provider and the customer that exemplifies,enhances,or detracts from the customer's expectation.

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