Chapter Five - Test Bank

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

e.all of the above

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

b.at the growth stage of the product life cycle

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

c.a bill of material

What country has become a popular destination for the disposal of electronic waste? a.Japan b.Hungary c.Vietnam d.China e.New Zealand

d.China

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 materials d.work order e.virtual technology

a.assembly drawing

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

a.dimensions, tolerances, materials, and finishes of a component

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

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

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

a.economic change

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

a.increasing customer interaction

In which stage of the product life cycle should product strategy focus on process modifications? a.introduction b.growth c.maturity d.decline e.none of the above

a.introduction

Modern ATM machines are an automated example of a service design that: a.reduces customer interaction b.modularizes the service c.delays service customization d.has no moment of truth e.has insufficient quality function deployment

a.reduces customer interaction

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

a.selection, definition, and design

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

a.shows graphically how the product is assembled

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

a.the work order

An operations manager's most ethical activity is: a.to enhance productivity while delivering desired goods and services b.to use less energy c.to use more recycled ingredients d.to use less harmful ingredients e.to follow appropriate OSHA and EPA regulations

a.to enhance productivity while delivering desired goods and services

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

b.engineering drawing

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

b.shows an exploded view of the product

Which of the following does not result from the effective use of group technology? a.reduced tooling setup time b.simplified training c.reduced raw materials and purchases d.simplified production planning and control e.improved layout, routing, and machine loading

b.simplified training

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

b.the House of Quality

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

b.using less energy

Which of the following statements regarding product life cycle and profitability is true? a.Profit is highest in the growth life cycle phase because the product is new and unique. b.Profit is lowest in the growth stage of the life cycle because costs are so high. c.Profit is at its greatest in the decline stage of the product life cycle. d.Breakeven is attained in the growth stage of the product life cycle. e.Cash flow turns positive in the maturity phase.

c.Profit is at its greatest in the decline stage of the product life cycle.

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.

c.Value engineering is oriented toward improvement of design.

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

c.Your advisor was competent, helpful, and understanding.

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 materials d.an engineering drawing e.none of the above

c.a bill of materials

Which of the following scenarios illustrates a moment that meets the customer's expectations? a.a sales clerk that called you by your name on your second visit to the store b.an express mail service that guarantees same day delivery c.a flight attendant that responds shortly after being called d.a professor that contacts people in several companies to find you a job e.a sales clerk at the clothing store that asked you to wait for a minute as soon as a wealthylooking customer entered the store

c.a flight attendant that responds shortly after being called

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

c.a route sheet

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.

c.alliances

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

c.an assembly chart

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

c.extend from design, to production, to final destruction/disposition of a product

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)

c.manufacturability and value engineering

In which stage of the product life cycle should product strategy focus on improved cost control? a.introduction b.growth c.maturity d.decline e.none of the above

c.maturity

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 what? a.product template b.product pulpit c.product platform d.product dais e.product foundation

c.product platform

Which of the following examples involves customer participation in the design of the service? a.investing in a mutual fund b.buying a life insurance policy 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

c.providing the stockbroker with the desired distribution of the portfolio

Which service design technique(s) would ordinarily not be appropriate for full-service restaurant meals? a.modularizing the product b.customization as late in the process as possible c.reducing customer interaction d.the moment of truth e.All of the above are appropriate.

c.reducing customer interaction

A process sheet is a type of a.assembly drawing b.assembly chart c.route sheet d.work order e.bill of materials

c.route sheet

The role of decision trees in product design is: 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

c.to calculate the expected value of each course of action

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

c.treats the product design decision as critical to its success

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, no longer in significant use. 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.

d.It is the use of computers to interactively design products and prepare engineering documentation.

______________ 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

d.Product-by-value analysis

Which of the following scenarios illustrates a moment that exceeds the customer's expectations? a.an express mail service that guarantees overnight delivery b.a flight attendant that responds shortly after being called c.a hairdresser that cuts your hair at the right length d.a professor that contacts people in several companies to find you a job e.a bank that sends you monthly account statements

d.a professor that contacts people in several companies to find you a job

Payoffs, alternatives, and expected monetary values are terms associated with: a.virtual reality b.Product Lifecycle Management c.Quality Function Deployment d.decision trees e.make-or-buy analysis

d.decision trees

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

d.during the production process when it is clear the new product is a success

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

d.introduction, growth, maturity, and decline

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

d.new internally developed products

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

d.product-by-value analysis

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

d.sequence of operations necessary to produce the component

Which of the following represent 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.

e.All of the above are such opportunities.

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.

e.All of the above are true.

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.

e.All of the above are true.

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 and chips. c.Microsoft focuses on PC software. 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.

e.Dell Computers provides fast delivery to customers, but, in return, customers may only select from a limited choice of hardware configurations.

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

e.all of the above

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

e.all of the above