Deck 5: Design of Goods and Services

Question 1

Two issues-viewing a product in terms of its impact on the entire economy and considering the life cycle of a product-combine to increase the likelihood of ethical decisions by managers.

Answer 1

True

Question 2

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

Answer 2

True

Question 3

Quality function deployment refers to first, determining what will satisfy the customer, and second, translating the customers' desires into a target design.

Answer 3

True

Question 4

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

Question 5

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 6

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

Question 7

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.

Question 8

One environmentally friendly approach to product design is to use lighter components.

Question 9

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

Question 10

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

Question 11

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

Question 12

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

Question 13

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

Question 14

Virtual reality technology can improve designs less expensively than the use of physical models or prototypes.

Question 15

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 16

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

Question 17

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

Question 18

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

Question 19

Political/legal change and economic change are both factors influencing market opportunities for new products.

Question 20

Robust design is a method that ensures that small variation in production or assembly does not adversely affect the product.

Question 21

In which stage of the product life cycle should product strategy focus on improved cost control?

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

Question 22

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.

Question 23

Which of the following statements is not true?

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 24

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) none of the above

Question 25

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

Question 26

An assembly drawing lists the operations necessary to produce the component.

Question 27

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 28

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.

Question 29

The customer may participate in the design of, and in the delivery of, services.

Question 30

What information is contained in the roof of the House of Quality?

A) what the customer wants
B) what we can do
C) competitive assessment
D) how well what we do meets the customer's wants
E) relationship between the things we can do

Question 31

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) none of the above

Question 32

Regal Marine

A) no longer builds boats with any wooden parts
B) designs and builds boat hulls by hand
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 33

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 34

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) none of the above

Question 35

The analysis tool that helps determine what products to develop, and by what strategy, by listing 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 36

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 37

The three major subdivisions 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 38

The expected value of each course of action in a decision tree is determined by starting at the beginning of the tree (the left-hand side) and working toward the end of the tree (the right).

Question 39

An assembly chart shows an exploded view of the product, usually a three-dimensional or isometric drawing.

Question 40

__________ 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 41

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 the new product is a success
E) when the product cost is very low

Question 42

Reducing the complexity of a product and improving a product's maintainability for use 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 43

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

A) Product Lifecycle Management
B) the House of Quality
C) the moment of truth
D) the assembly drawing
E) the product development team

Question 44

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 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) All of the above are true.

Question 45

One method used to determine a product's total environmental impact from conversion of inputs through production and to disposal is

A) QFD
B) Design for manufacturability
C) Environmental Scanning
D) Life Cycle Assessment
E) CAD

Question 46

When constructing a House of Quality, what value is assigned to a "Medium" relationship between the things that we can do?

A) 3
B) 2
C) 50
D) 5
E) 10

Question 47

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 48

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 49

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 50

Products are more "environmentally friendly" when they are made

A) using cheaper materials
B) using less energy
C) according to OSHA standards
D) where environmental regulations are lax
E) more difficult to disassemble

Question 51

When developing the Trident Splash, Cadbury faced design problems overcome by

A) manufacturability and value engineering
B) QFD
C) the House of Quality
D) CAD
E) decision trees

Question 52

Which of the following is true regarding value engineering?

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.

Question 53

One 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 54

The use of product development teams in design and engineering activities is also known as

A) the Japanese approach
B) concurrent engineering
C) QFD
D) the traditional U.S. approach
E) none of the above

Question 55

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 a __________.

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

Question 56

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 57

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

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

Question 58

Which of the following is true concerning CAD?

A) 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 59

A manufacturing plant uses a computerized scanner to measure the inner diameters of the belts it produces to ensure they are within the specifications. This is referred to as

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

Question 60

Which of the following makes products that are friendlier to the environment?

A) using less materials
B) more recycled materials
C) using less energy
D) using less harmful ingredients
E) all of the above

Question 61

Which of the following documents lists the operations (including assembly and inspection) necessary to produce the component with the material specified in the bill of material?

A) an engineering drawing
B) an assembly drawing
C) a route sheet
D) an assembly chart
E) an operations chart

Question 62

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 63

A process sheet is a type of

A) assembly drawing
B) assembly chart
C) route sheet
D) work order
E) bill of material

Question 64

A restaurant kitchen contains a wall poster that shows, for each sandwich on the menu, a sketch of the ingredients and how they are arranged to make the sandwich. This is an example of a(n)

A) assembly drawing
B) route sheet
C) bill of material
D) work order
E) virtual technology

Question 65

An operations manager's ethical responsibilities

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 66

Which of the following does not result from the effective use of group technology?

A) reduced tooling setup time
B) better electronic communication between team members
C) reduced raw materials and purchases
D) simplified production planning and control
E) improved layout, routing, and machine loading

Question 67

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 68

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

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

Question 69

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 70

Which of the following typically shows the 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 71

Which of the following shows in schematic form how a product is assembled?

A) an engineering drawing
B) an assembly routing
C) an assembly chart
D) a route sheet
E) a process sheet

Question 72

The document for production that gives the instruction to make a given quantity of a particular item, usually to a given schedule, is

A) the work order
B) the route sheet
C) the bill of information
D) the assembly chart
E) the value analysis

Question 73

The 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) none of the above

Question 74

A route sheet provides a(n)

A) exploded view of the product
B) instruction to make a given quantity of a particular item
C) schematic showing how the product is assembled
D) sequence of operations necessary to produce the component
E) set of detailed instructions about how to perform a task

Question 75

Group technology requires that

A) each component be identified by a coding scheme that specifies the type of processing and the parameters of the 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 76

Which of the following examples involves customer participation in the design of the service?

A) investing in a mutual fund
B) getting a chest x-ray at the hospital
C) providing the stockbroker with the desired distribution of the portfolio
D) seeing a movie at the theater
E) eating at a fast-food restaurant

Question 77

An assembly drawing

A) shows, in schematic form, how the product is assembled
B) shows an exploded view of the product
C) lists the operations, including assembly and inspection, necessary to produce the component with the material specified in the bill of material
D) provides detailed instructions on how to perform a given task
E) describes the dimensions and finish of each component

Question 78

Which of the following is not a service design technique used to reduce cost?

A) increasing customer interaction
B) delaying customization
C) automation
D) modularizing the product
E) reducing customer interaction

Question 79

An assembly chart

A) shows graphically how the product is assembled
B) shows an exploded view of the product
C) lists the operations, including assembly and inspection, necessary to produce the component with the material specified in the bill of material
D) provides detailed instructions on how to perform a given task
E) describes the dimensions and finish of each component

Question 80

The change in cell-phone model life cycles from 2 years to under 6 months is the result of

A) time-based competition
B) design for manufacturability
C) life cycle assessment
D) value analysis
E) all of the above