Deck 5: Product and Service Innovations

Question 1

13)The percentage of new products that fail is estimated to be over ______.

A)55%
B)65%
C)75%
D)85%

Answer 1

D

Question 2

3)In recent years,changes in technology have ______.

A)blurred the differences between products and services
B)made the differences between products and services more distinct
C)required products to be offered with services
D)made products more important than services

Answer 2

A

Question 3

15)The Newton device was______.

A)introduced in 1983
B)inexpensive at $200
C)bulky
D)free of bugs

Answer 3

C

Question 4

12)Factors that influence the success of a new product include ______.

A)understanding of the market and the needs of customers
B)introducing the product at the right stage of the product life cycle
C)making sure government regulations are followed
D)ensuring ISO protocols are adhered to

Question 5

2)A new product offering can be ______.

A)tangible-something that you can physically touch and feel
B)mandated-the government requires a product to be sold to customers even if customers do not want it
C)required by international trade-trade requirements demand that a product be sold to customers even if customers do not want it
D)required by the United Nations-international regulations demand that a product be sold to customers even if customers do not want it

Question 6

9)Thanks to new technologies ______.

A)products have longer life cycles
B)products have shorter life cycles
C)products are becoming way more expensive than they used to be
D)products are becoming less useful than they used to be

Question 7

18)Which of the following statements is true regarding how customers' understanding of a new product can contribute to its failure?

A)Customers are fully aware of the benefits of a new product.
B)Customers do not want to buy the product at its current price.
C)Customers do not understand the benefits of a new product.
D)Customers do not know where the product is available.

Question 8

17)If benefits from a product are not correctly matched with the product's price,then ______.

A)the product is likely to succeed
B)the product's life cycle is likely to be extended
C)this may be a violation of government regulations governing product launch
D)the product is doomed to failure

Question 9

6)Consumer tastes and preferences are changing due to ______.

A)growing health awareness
B)the U.S.population becoming younger
C)increasing costs of most consumer goods
D)difficulty of procuring staple food items

Question 10

8)Which of the following correctly pairs a product with the stage in its life cycle?

A)checkbooks: growth
B)credit cards: maturity
C)3-D televisions: obsolescence
D)smart cards: decline

Question 11

10)Which of the following is NOT a consequence of advances in technology?

A)Companies can stay ahead of the competition.
B)Companies can avoid product obsolescence.
C)Companies can introduce new products and services that are less expensive.
D)Companies can shorten the product life cycle.

Question 12

7)Which of the following shows the correct sequence of the stages of a product life cycle?

A)growth,maturity,introduction,decline
B)introduction,growth,maturity,decline
C)introduction,maturity,growth,decline
D)growth,introduction,maturity,decline

Question 13

1)The importance of sustainability is growing ______.

A)despite lack of enthusiasm and support from companies
B)due to regulatory mandates by the government
C)although consumers are not interested
D)because of ISO requirements

Question 14

20)One of the problems facing the Apple watch is its ______.

A)large number of functions
B)large face
C)difficult-to-use display
D)clear understanding by customers of the purpose of the product

Question 15

19)In launching a product,it is not particularly helpful if ______.

A)the company describes the technical capabilities and features of the product in its advertising
B)the company describes the features the product in its advertising
C)the company advertises the locations where the product is available
D)the company advertises when the product will be available

Question 16

5)Leading companies view new product development as ______.

A)a proactive process
B)a temporary process
C)an expensive process
D)a necessary evil

Question 17

4)Which of the following is NOT a reason companies introduce new products?

A)to improve market share
B)to stay ahead of the competition
C)to survive in the marketplace
D)to exploit customers unfairly

Question 18

11)To meet new legal and regulatory requirements,companies may ______.

A)introduce poor quality products
B)redesign existing products
C)refurbish used products
D)recycle old models of products

Question 19

14)The textbook cites the McDonald's McAfrica sandwich as an example of a product failure to illustrate ______.

A)the importance of regular,not pita,bread in sandwiches
B)the importance of naming the product appropriately
C)the lack of sensitivity by including tomatoes in the sandwich,which may be harmful to people allergic to tomatoes
D)the impact of not having fries to go with the sandwich

Question 20

16)One reason that products are likely to fail in the market place include ______.

A)misunderstanding the target market
B)correct product positioning
C)failure to meet government regulations
D)failure to meet ISO Requirements

Question 21

23)Which of the following statements is true with regard to types of innovation?

A)Firms can choose between sustaining and incremental innovations.
B)Sustaining innovations are targeted toward an existing market.
C)Incremental innovations are targeted toward future markets.
D)Produce designers cannot easily move from one to the other type of innovation.

Question 22

30)Which of the following statements is true with regard to the product lifecycle management (PLM)?

A)PLM focuses on managing the engineering aspects of a product throughout its useful life.
B)The decline stage is usually shorter than the growth stage in the PLM.
C)The growth stage is usually shorter than the decline stage in the PLM.
D)PLM is a manufacturing concept that refers to the decline phase of the product.

Question 23

35)Which of the following is NOT a benefit of the Stage-Gate approach?

A)quicker product launch
B)less rework
C)more rapid recycling
D)higher DPMO

Question 24

26)A disruptive innovation is a product or service that ______.

A)takes root initially in simple applications
B)takes root typically at the high end of a market
C)is usually high priced
D)is mandated by the government

Question 25

33)Which of the following statements is true with regard to the traditional approach to product development?

A)The actual number of steps in the process depends on the type of the product.
B)The actual number of steps in the process is standardized across different companies.
C)The actual number of steps in the process is mandated by the government.
D)The actual number of steps in the process is dictated by ISO.

Question 26

34)In the Stage-Gate approach,______.

A)Stage refers to the critical activities that need to take place once a product has been launched
B)Stage refers to the critical activities that need to be completed to be in compliance with government regulations
C)Stage refers to the critical activities that need to take place during a given stage of the project
D)Stage refers to the critical activities that need to be completed to be in compliance with ISO regulations

Question 27

36)In reverse engineering,______.

A)a firm looks at the process in which customers return products to see how this return process can be reengineered and improved
B)a firm dismantles competitors' existing products to see how they work and whether they can be improved
C)a firm develops a product with the end use or application and works backwards (or in reverse)
D)the focus is primarily on disruptive innovation

Question 28

31)Which of the following tactics is likely to be used in the product life-cycle management (PLCM)?

A)launching promotional campaigns
B)changing the product design process to accommodate changes in production volume
C)changing the manufacturing process to accommodate changes in demand elasticity
D)changing the product development process to accommodate changes in supply

Question 29

24)A sustaining innovation can be ______.

A)radical
B)done only infrequently
C)targeted toward potential future markets
D)difficult to introduce

Question 30

29)According to the Product Development Management Association,new product development (NPD)includes ______.

A)commercialization of a product
B)product life cycle management
C)replacement of product at the end of the introduction phase
D)refurbishment of returned products

Question 31

32)The Stage-Gate approach to product design ______.

A)is a technical road map
B)uses cross-functional teams to move the product from one stage to the next
C)is a way to apply government regulations
D)analyzes product failure

Question 32

27)Which of the following types of innovation is likely to create new and often unexpected markets?

A)sustaining innovation
B)disruptive innovation
C)incremental innovation
D)gradual innovation

Question 33

21)Which of the following statements is true about the Bjork-Shiley synthetic heart valve?

A)It failed to clog over time.
B)It led to hundreds of unnecessary deaths.
C)Early indicators of problems were immediately addressed by the company.
D)It was effective.

Question 34

38)The most critical,and perhaps the most difficult,phase of the Stage-Gate approach is ______.

A)developing the business case for the product
B)the scoping stage
C)designing the product
D)manufacturing the product

Question 35

37)In the scoping stage of the new product development process,______.

A)the team evaluates the technical merits of the product in relation to its potential target market
B)the team analyzes the channels through which the product can be distributed
C)the team reviews the media for advertising the product
D)the team recruits the team that will manufacture the product

Question 36

25)An incremental innovation ______.

A)increases the scope of an existing innovation
B)increases its impact over the life of the product
C)is an improvement to an existing product
D)all of these

Question 37

28)What do cellular phones,community colleges,discount retailers,and medical clinics in retail stores have in common?

A)They all offer cheap products.
B)They are sustaining innovations implemented gradually.
C)They are disruptive innovations.
D)They are sustaining innovations implemented incrementally.

Question 38

40)The project plan for the development of the product includes ______.

A)the importance of the project
B)resources needed for the project
C)the government requirements for the project
D)the ISO mandates for the project

Question 39

22)A product may fail due to ______.

A)adequate infrastructure
B)excellent supporting services
C)poor supply chain infrastructure
D)government regulations

Question 40

39)Which of the following is included in the business-case document for a new product?

A)a complete definition of the product
B)the technical capabilities required for manufacturing the product
C)the advertising capabilities required to increase awareness of the product
D)the packaging needed for the product

Question 41

50)Product variations can arise from ______.

A)internal variation
B)supplier variation
C)market variation
D)customer variation

Question 42

51)Internal variations,as a cause of product variation,come from ______.

A)wear and tear of production equipment as it ages
B)environmental factors
C)government regulations
D)company procedures

Question 43

44)Field testing of a product is known as ______.

A)alpha testing
B)beta testing
C)market testing
D)real-time testing

Question 44

59)DFMA ______.

A)cannot be implemented using software
B)refers to designed for maximum aggravation
C)refers to products definitely for mature application
D)refers to design for manufacturing and assembly

Question 45

42)Which of the following is not one of the options for the product following gate review?

A)terminate
B)suspend
C)recycle
D)proceed

Question 46

52)Which of the following examples does NOT correctly illustrate the corresponding type of variation?

A)Fabric that will not deteriorate when exposed to varying environments is an example of product design considering external variation.
B)Product standardization between different models of a product is an example of product design considering modular variation.
C)A replacement part that will fit properly is an example of product design considering unit-to-unit variation.
D)A product that is durable is an example of product design considering internal variation.

Question 47

41)A feasibility analysis evaluates ______.

A)the difficulty of carrying out the project
B)whether the project materials can be recycled
C)how government requirements can be circumvented
D)how the product life cycle can be shortened

Question 48

46)Modular design is an approach in which independently created units called modules ______.

A)can be combined with other modules
B)can be recycled
C)can be sold at a price below cost of production
D)do not need to comply with government regulations

Question 49

55)Value engineering provides value to ______.

A)customers
B)employees
C)boards of directors
D)government agencies

Question 50

56)One significant area where value engineering has produced impressive results is with regard to ______.

A)reducing costs of inputs into a product
B)the information technology in product manufacture
C)analyzing the market to ensure customers receive value
D)reducing the cost of reverse logistics

Question 51

45)Which of the following is an optional test phase in a product launch?

A)market testing
B)primary testing
C)design testing
D)prototype testing

Question 52

60)Which of the following is NOT one of the elements of DFMA system?

A)the raw material
B)choosing the right machines and processes
C)assembly
D)marketing

Question 53

48)Robust product design ______.

A)helps avoid disruptions in production due to significant changes in inputs
B)was pioneered by Genichi Taguchi
C)was used by Henry Ford in his original assembly line system of production
D)is used to protect market share

Question 54

58)Mass customization is an approach that has been applied in ______.

A)the automobile industry
B)oil refineries
C)glass production
D)steel production

Question 55

57)Mass customization is ______.

A)the mass production of individually customized products
B)the reuse of components discarded from scrapped products
C)the redesign of components found to be faulty in earlier versions of a product
D)the production of each product by hand for specific customers

Question 56

54)Value analysis is ______.

A)used to improve,at a minimum cost,the functionality of a product without affecting its existing functions and standards
B)used to completely analyze and improve the value of all of the components used to develop a product from its design to its final delivery
C)used to design a product with a view to meet the requirements for a new market
D)used to analyze the process by which market requirements may be satisfied

Question 57

49)Which of the following is an area in which sustainability has an impact?

A)the ability of manufacturer to take into account environmental aspects
B)the ability of customer to buy the product
C)the ability of customer to return the product
D)the ability of manufacturer to increase the price

Question 58

43)During the testing and validation process,______.

A)market research for the product is gathered
B)the production process is validated
C)product design is initiated
D)raw materials for the product are evaluated

Question 59

47)Modular design attempts to combine the advantages of standardization with ______.

A)economic order quantity
B)economies of scale
C)customization
D)sustainability

Question 60

53)Value is defined as ______.

A)the product of the function to its cost
B)the ratio of the function to its cost
C)the reciprocal of the function to its cost
D)the difference between the function and its cost

Question 61

73)It is estimated that by simply rearranging their product development activities and personnel in a global way ______.

A)companies can increase productivity by 210%
B)companies can realize cost savings
C)companies can increase elasticity of demand
D)companies can be more compliant with government regulations

Question 62

80)Costs associated with inventory include the costs of ______.

A)transportation
B)packaging
C)stock-out costs
D)in-transit carrying costs

Question 63

76)Which of the following is LEAST likely to be one of the challenges related to global product development?

A)protecting the firm's intellectual property
B)formulating a global process of development
C)ensuring compatibility of data and software systems
D)ensuring participation by each country in the product development process

Question 64

74)Which of the following countries is NOT a significant recipient of outsourcing of manufacturing by industrialized countries?

A)China
B)Myanmar
C)Vietnam
D)Russia

Question 65

70)New product development for many industries has been impacted by ______.

A)global competition
B)the nuclear pact with Iran
C)the emergence of ISIS
D)the increase in terrorist attacks

Question 66

68)Which of the following is FALSE with regard to CAD and CAE?

A)CAD refers to software facilitates designing new products electronically.
B)CAD stands for computer-aided design.
C)CAE stands for computer-aided engineering.
D)CAE is part of CAD.

Question 67

63)QFD ______.

A)stands for quality function development
B)is a method companies use to translate customers' wants and needs into product or service features
C)was introduced by Henry Ford
D)applies to assembly line manufacturing

Question 68

65)Which of the following is NOT true with regard to the serial approach in a large-scale production project?

A)It is slow.
B)It is costly.
C)It is used to develop products effectively.
D)May require frequent engineering changes.

Question 69

72)In comparison to a baseline,productivity is higher if ______.

A)for given input,output is higher
B)for given output,input is higher
C)the cost of production increases with volume of production
D)there is increase in demand with increase in volume of production

Question 70

79)Which of the following is NOT one of the four options a company can consider with regard to locating its inventories?

A)at the manufacturer's facility
B)in a warehousing facility
C)in a retail facility
D)offshoring inventory

Question 71

77)The association of black color with bad luck (in China)or the breakfast preferences of Indians are discussed as examples of ______.

A)cultural differences
B)religious differences
C)industrial differences
D)political differences

Question 72

75)Which of the following statements with regard to offshoring is FALSE?

A)It is a complex process.
B)It can cause quality control problems.
C)It offers enormous cost advantages.
D)It expedites lead times.

Question 73

62)DFDRR ______.

A)helps to reduce waste
B)increases marketing costs
C)reduces advertising costs
D)ensures compliance with government regulations

Question 74

71)The overall objective of global product development is ______.

A)to introduce innovative new products that exceed customer expectations
B)to minimize the financial and operational productivity of the product development process
C)to ensure participation by as many countries as possible in product development
D)to ensure participation by as many cultures as possible in product development

Question 75

64)Which of the following is NOT true with regard to HOQ?

A)It is a tool used in the quality function deployment approach.
B)It refers to head of quality in an organization.
C)An HOQ diagram resembles a house.
D)It is used in product development.

Question 76

69)Benefits of CAD include ______.

A)elimination of routine mistakes
B)an increase in design times
C)the use of better raw materials
D)the use of qualified labor

Question 77

78)A question related to inventory levels that a company needs to ask is,______?

A)How can we minimize the cost of inventories
B)Where should these inventories be located
C)How can these inventories be insured
D)How can these inventories be transported

Question 78

61)DFR ______.

A)refers to design for recycling
B)ensures that a product functions as intended
C)refers to definitely for resale
D)refers to designed for refurbishing

Question 79

67)Which of the following is NOT true of a new product prototype?

A)It is an actual working model of the new product.
B)It is a full-scale model of the new product.
C)It can be developed quickly using rapid prototyping.
D)Its development may be facilitated by virtual reality technology.

Question 80

66)Which of the following is NOT true with regard to the serial approach in a large-scale production project?

A)It is slow.
B)It is costly.
C)Is used in designing for recycling.
D)It may require frequent engineering changes.