Deck 5: Design of Goods and Services

Question 1

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) incubation

Answer 1

A

Question 2

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

Answer 2

False

Question 3

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 these are true.

Answer 3

E

Question 4

Regal Marine's use of ________ has reduced product development time and reduced problems with tooling and production.

Question 5

Relatively few new product ideas, perhaps only 1 in 10,000, become successfully marketed products for DuPont.

Question 6

In the ________ phase of the product life cycle, the product design has begun to stabilize.

Question 7

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

A) 50%
B) 7.5%
C) 10 to 15%
D) above 75%
E) 20 to 25%

Question 8

Regal Marine:

A) no longer builds boats with any wooden parts.
B) has replaced all human labor with robots.
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 9

The three major elements 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 10

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) at the saturation stage of the product life cycle

Question 11

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) incubation, growth, maturity, and decline.

Question 12

________ 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 13

Product strategy may focus on developing a competitive advantage via either differentiation, low cost, or rapid response, but not a combination of these.

Question 14

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 15

The analysis tool that lists 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 16

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

Question 17

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

Question 18

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 19

At which stage of the product life cycle is product strategy likely to focus on improved cost control?

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

Question 20

Apple generates almost 90% of its revenue from products launched in the past 4 years.

Question 21

Which of the following is TRUE regarding value engineering?

A) Value engineering occurs only after the product is selected and designed.
B) Value engineering creates fragile design.
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 22

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 23

Identify factors that influence new product opportunities.

Question 24

________ lists products in descending order of the individual dollar contribution to the firm.

Question 25

Is it possible for a product's life cycle stage to affect its product strategy? In particular, describe how one product in growth and another in maturity might have different product strategies.

Question 26

Quality function deployment is used mainly in the after-sales stage to build customer loyalty.

Question 27

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 these.

Question 28

A graphic technique for defining the relationship between customer desires and product (or service) is:

A) product lifecycle management.
B) the house of quality.
C) the moment of truth.
D) the assembly drawing.
E) modular design.

Question 29

Provide some examples of recent product changes, i.e. new products that are replacing older ones.

Question 30

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 these

Question 31

What is the objective of the product decision?

Question 32

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 33

"With respect to the product decision, managers must be able to accept risk and tolerate failure." Comment on why this is a necessary hazard in making new product decisions, given all the powerful tools and carefully built systems that support that decision.

Question 34

A 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 these.

Question 35

Quality function deployment refers to both (1) determining what will satisfy the customer and (2) translating those customer desires into a target design.

Question 36

What is a product-by-value analysis, and what type of decisions does it help managers make?

Question 37

Aggressive new product development requires that organizations build structures internally that contain what features?

Question 38

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 these are such opportunities.

Question 39

Reducing the complexity of a product and improving a product's maintainability 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 40

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 these

Question 41

Identify the benefits associated with manufacturability and value engineering.

Question 42

________ is a process for determining customer requirements and translating them into attributes that each functional area can understand and act upon.

Question 43

________ provides a format allowing the electronic transmittal of three-dimensional data.

Question 44

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

Question 45

Additive manufacturing (3-D printing) is an extension of:

A) modular design.
B) quality function deployment.
C) robust design.
D) concurrent engineering.
E) computer-aided design.

Question 46

The use of information technology to control machinery is called ________.

Question 47

Identify the 7 steps involved in building the house of quality.

Question 48

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

Question 49

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 obsolete 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 is the use of information technology to control machinery.

Question 50

What is the use of information technology to control machinery?

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

Question 51

Robust design ensures that small variations in production or assembly do not adversely affect the product.

Question 52

3-D printing has proven to be particularly advantageous for:

A) prototypes, spares, and difficult-to-replace parts.
B) modular design.
C) quality function deployment.
D) robust design.
E) computer-aided design.

Question 53

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

Question 54

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 55

Which of the following is TRUE concerning advantages of CAD?

A) It provides 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 these are true.

Question 56

Value analysis focuses on preproduction design and manufacturing issues.

Question 57

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."

Question 58

If a design can be produced to requirements even when the production process has unfavorable conditions, the design is said to be ________.

Question 59

What is quality function deployment (QFD)?

Question 60

What technology "builds" products by adding material layer upon layer?

A) CAM
B) STEP
C) additive manufacturing
D) replicator
E) virtual reality

Question 61

What is time-based competition?

Question 62

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

Question 63

Rapidly developing products and moving them to the market is referred to as ________.

Question 64

Which of the following product development strategies has the rapidest product development speed?

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

Question 65

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

Question 66

________ reviews successful products for improvement during the production process.

Question 67

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

Question 68

Products or services designed in easily segmented components are known as ________ designs.

Question 69

Boeing's 737 airplane and Hewlett-Packard's printer business are examples of using enhancements and migrations of existing products to build on a(n) ________.

Question 70

Explain the difference between value analysis and value engineering.

Question 71

Identify the external product development strategies; describe each in a sentence or two.

Question 72

Identify at least three general benefits derived from CAD.

Question 73

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

Question 74

Discuss the advisability of using modular assemblies in manufacturing. (What are the advantages and disadvantages?) To what extent can these arguments be applied to service products?

Question 75

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

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

Question 76

Group technology distinguishes between what the firm wants to produce and what it wants to purchase.

Question 77

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 78

Boeing's 737 airplane 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 79

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 80

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 these are examples of internal product development strategy.