BSAT 382 Ch. 8, EXAM 2 Questions, BSAT 382 Ch. 6, BSAT 382 Chapter 6 questions, BSAT 382 ch 8, BSAT 382 Ch 8, Operations Management, BSAT 382 - Managing Quality, BSAT 382 Chapter 8 questions, Operations Management Exam 2, Operations Management Exam 2...

The goal of life-cycle assessment is to incorporate the environmental impact of products or services into product-design or service-design decision-making.

TRUE Life-cycle assessment involves assessing the environmental impact of a product or service as it goes through its useful life.

Product failures can be easier to remedy with modular design

TRUE Modular designs make it easy to change only portions of the design.

A service blueprint is quite similar to an architectural drawing

TRUE A service blueprint shows the basic customer and service actions involved in a service operation.

Reliability can be improved by the use of backup components

TRUE Adding a backup component is often cheaper than increasing the reliability of a given component.

One approach to extending a product's life cycle is to promote alternate uses of the product.

TRUE Alternate uses extend product life cycles.

The term capacity refers to the maximum quantity an operating unit can process over a given period of time.

TRUE An operation's capacity is defined as the maximum rate of output possible.

Applied research has the objective of achieving commercial applications for new ideas

TRUE Applied research is aimed at commercializing basic research.

Many US manufacturers are now shifting their focus from products to both product and process improvements

TRUE Both product and process must be considered in the product/service design question.

A major benefit of Computer Aided Design (CAD) is the increased productivity of designers.

TRUE CAD tends to greatly increase designers' productivity.

Service design often must take into account the degree of customer contact required.

TRUE Customer contact is a critical service design issue

Design capacity refers to the maximum output that can possibly be attained.

TRUE Design capacity is only reachable under ideal conditions.

"Design for production" takes into account the capabilities of the organization to produce or deliver a given product or service.

TRUE Design for production is important to ensure that product or service design decisions are feasible.

Reducing consumer choices makes service more efficient

TRUE Efficiency comes from the standardization that results from reduced consumer choices.

Reliability refers to the ability of a product to perform its intended function under normal conditions.

TRUE Greater reliability translates into a greater likelihood of the product working in normal conditions.

The demand for a product and the rate of technological change have significant impact on the length of a given phase of the product life cycle

TRUE How long a product stays in a particular phase of its life cycle depends greatly on the rate of technological change.

"Concurrent engineering" brings people concerned with manufacturing into the design phase earlier than in the "over-the-wall" approach.

TRUE In concurrent engineering people concerned with manufacturing are actively engaged in the design phase.

Geographic Information Systems (GIS)

- Computer-based system for collecting, storing, retrieving, and displaying demographic data on maps - Important tool to help in location analysis - Enables more complex demographic analysis - Available databases include: - Detailed census data - Detailed maps - Utilities - Geographic features - Locations of major services

Location and Innovation

- Motorola and Intel - Opened $3 billion semiconductor facility in Arizona - Reasoning - Skilled Labor - IP - Tax breaks - Close to headquarters

Location strategy

- One of the most important decisions a firm makes - Increasingly global in nature - Significant impact on fixed and variable costs - Decisions made relatively infrequently - The objective is to maximize the benefit of location to the firm

The Call Center Industry

- Requires neither face-to-face contact nor movement of materials - Has very broad location options - Traditional variables are no longer relevant - Cost and availability of labor may drive location decisions

Clustering

- The location of competing companies near each other - Often driven by resources such as natural, information, capital, talent - Found in both manufacturing and service industries LOOK ON SLIDES

One of these is not a characteristic of a well-designed service system: A. User friendly B. Robust C. Distributed computer networks D. Cost effective E. Easy to sustain

. Distributed computer networks

Which of the following is not true about re-manufacturing? A. Re-manufactured products can be sold at lower cost. B. The process requires mostly unskilled and semiskilled workers. C. There is less depletion of natural resources. D. It produces high quality products easily. E. Re-manufacturing is mainly carried out by small and mid-sized companies.

. It produces high quality products easily.

Location Decisions: Region/Community Decisions Key Success Factors

1. Corporate desires 2. Attractiveness of region 3. Labor availability and costs 4. Costs and availability of utilities 5. Environmental regulations 6. Government incentives and fiscal policies 7. Proximity to raw materials and customers 8. Land/construction costs

Three steps in the Locational Break- Even Analysis method

1. Determine fixed and variable costs for each location 2. Plot the cost for each location 3. Select location with lowest total cost for expected production volume MATH ON SLIDES

Six steps in the Factor Rating Method

1. Develop a list of relevant factors called key success factors 2. Assign a weight to each factor 3. Develop a scale for each factor 4. Score each location for each factor 5. Multiply score by weights for each factor for each location 6. Recommend the location with the highest point score

Factors That Affect Location Decisions

1. Labor Productivity 2. Clustering

Location Decisions: Country Decisions Key Success Factors

1. Political risks, government rules, attitudes, incentives 2. Cultural and economic issues 3. Location of markets 4. Labor talent, attitudes, productivity, costs 5. Availability of supplies, communications, energy 6. Exchange rates and currency risks

Location Decisions: Site Decisions Key Success Factors

1. Site size and cost 2. Air, rail, highway, and waterway systems 3. Zoning restrictions 4. Proximity of services/ supplies needed 5. Environmental impact issues

One step that isn't part of service blueprinting is: A. Eliminate boundaries for the service and decide on the level of interaction needed B. Identify and determine the sequence of customer and service actions and interactions C. Develop time estimates for each phase of the process D. Understand the time variability involved E. Identify potential failure points and develop a plan to minimize them

A. Eliminate boundaries for the service and decide on the level of interaction needed

One way to increase reliability is to: A. improve component design B. increase the number of service stations C. increase mean repair time D. increase the number of dependent components E. none of the above

A. improve component design

Designing for recycling helps facilitate ______. A. Reduced legal liability B. Compliance with regulatory environments C. Increased product reliability D. Reduced standardization costs E. None of the above

B. Compliance with regulatory environments

"Must have", "expected" and "excitement" characteristics are categories in the ____ model. A. Bi-polar B. Kano C. Pareto D. Quality E. Service Matrix

B. Kano

Service design generally differs from product design in which of the following ways? A. Service design tends to focus on tangible factors. B. There is less latitude in detecting and correcting errors prior to delivery. C. There is a lesser requirement to be aware of competitors' offerings. D. There is less visibility to customers. E. There is no difference

B. There is less latitude in detecting and correcting errors prior to delivery.

In the area of product and service design, the acronym CAD refers to: A. conceptually appropriate design B. computer aided design C. commercial applications design D. competitive advantage design E. completely automated design

B. computer aided design

Mobile phones have evolved from devices intended to place and receive phone calls into handheld multimedia communications devices, but in the eyes of some customers these new features make the phones less desirable. This is an example of _________. A. robust design B. creeping featurism C. sustainable design D. quality function deployment E. component commonality

B. creeping featurism

In services, flowcharts are useful for _______________. A. translating basic research into applied research B. identifying and determining the sequence of customer and service actions and interactions C. developing time estimates for each phase of the service process D. evaluating ways of standardizing service elements with component commonality E. estimating customer satisfaction with the service process

B. identifying and determining the sequence of customer and service actions and interactions

One way to increase reliability is to: A. eliminate backup component B. improve preventive maintenance procedures C. increase mean repair time D. increase the number of independent components E. none of the above

B. improve preventive maintenance procedures

A formal way to document customer requirements is: A. consumer surveys B. quality function deployment (QFD) C. focus groups D. Delphi technique E. sales/marketing matrix

B. quality function deployment (QFD)

Which of the following is not a reason for redesigning a product or service? A. to reduce labor or material cost B. to increase the level of employee satisfaction C. to increase the level of customer satisfaction D. to attract and increase customer demand E. to increase quality

B. to increase the level of employee satisfaction

48. Incorporating design for disassembly (DFD) principles in product design helps firms with ___________ design issues. A. Legal B. Social C. Re-use D. Reverse engineering E. Re-engineering

C. Re-use

Elements of the service process in which there is little to no contact with the customer are referred to as ____________. A. robust B. delayed differentiators C. back-of-the-house D. user-friendly E. mission-consistent

C. back-of-the-house

The research and development activity which starts after positive research results are available and attempts to turn these results into useful commercial applications is: A. basic research B. applied research C. development D. redesign E. commercial research

C. development

One possible disadvantage of modular design is that: A. replacement and repair is more difficult B. failure diagnosis is more complex C. number of configurations of modules decreases D. individual parts lose their identities E. inventory problems arise

C. number of configurations of modules decreases

The structural approach for integrating customer requirements into every aspect of product development is known as: A. total quality management B. customer satisfaction C. quality function deployment D. customer integration E. a product development team

C. quality function deployment

The process of dismantling and inspecting a competitor's new or revised product for the purpose of gleaning design ideas is called: A. design by imitation B. product analysis C. reverse engineering D. benchmarking E. disassembly

C. reverse engineering

A software company is weighing whether to release a new version of its software. The company can go ahead and release the version now and correct flaws with subsequent patches or upgrades, or it can wait until the new version is reasonably bug-free. This is an example of _____. A. life-cycle analysis B. value analysis C. vaporware D. concurrent engineering E. design for production

C. vaporware

A disadvantage of global teams for product design is that: A. Customers may have different needs in different countries B. The product designed may have increased marketability and utility C. The diversity of an international team may be a detriment D. Ease of face to face meetings is absent since members are located everywhere E. Technology allows constant contact with team members

D. Ease of face to face meetings is absent since members are located everywhere

The advantages of standardization include which of the following? (I.) The opportunity to freeze design at a very early stage (II.) Fewer parts to deal with in inventory (III.) Reduced training cost and time (IV.) Purchasing is more routine A. I, II B. I, IV C. I, II, III D. II, III, IV E. I, II, III, IV

D. II, III, IV

The term 'degrees of newness' is associated with: A. average age of employees B. average length of time on the job C. total years of business experience D. degree of design change E. average age of the capital equipment

D. degree of design change

Products or services with a high degree of similarity of features and components are called: A. generic B. copy-cat C. rip-offs D. product families E. product/service matrix

D. product families

Which one of the following is not a factor of successful product and service design? A. be aware of what the competitors are doing B. be aware of what customers want C. know what government regulations are D. use computerized design techniques E. know what new technologies are available

D. use computerized design techniques

The goal of value analysis is to find ways of _______. A. I. Reducing the cost of parts and materials B. II. Improving the performance of the product or service C. III. Incorporating multiple cultural values in global system design D. Both I and III E. Both I and II

E. Both I and II

Which of the following statements about CAD is not true? A. It increases the productivity of designers. B. It uses computer graphics. C. It requires a good data base. D. Some systems permit engineering or cost analysis of proposed designs. E. It is used successfully by all manufacturing companies.

E. It is used successfully by all manufacturing companies

. When considering re-use issues for a given product, an important factor to take into account is that product's _______. A. Ethical impact B. Reliability C. Durability D. Design for assembly E. None of the above

E. None of the above

. Which of the following is an issue that designers must take into account in product and service design? A. legal, environmental, and ethical issues B. reliability C. standardization D. range of operating conditions E. all of the above

E. all of the above

Ideas for new or improved designs can come from: A. customers B. competitors C. research and development departments D. production departments E. all of the above

E. all of the above

Capacity decisions are usually one-time decisions; once they have been made, we know the limits of our operations.

FALSE A number of factors can either increase or reduce a unit's capacity over time.

Basic research is done with the expectation that discoveries will have near-term commercial application.

FALSE Basic research is done with no clear expectations regarding commercial application.

. Cost and competitive priorities reduce effective capacities

FALSE Changes in competitive priorities can actually increase effective capacity

Concurrent Engineering is another term for sequential development.

FALSE Concurrent engineering involves simultaneous product and production development.

"Concurrent engineering" means that at least two engineers are involved in product design at the same time

FALSE Concurrent engineering means that engineers, marketing, manufacturing and purchasing personnel often are jointly involved in the product design.

Consumers tend to resist purchasing products containing recycled materials

FALSE Consumers are beginning to respond positively when informed that their purchases contain recycled materials.

If the unit cost to buy something is less than the variable cost to make it, the decision to make or buy is based solely on the fixed costs.

FALSE Cost is not the only consideration that enters into the "make or buy" decision.

The process of dismantling and inspecting a competitor's product to discover product improvement is called benchmarking.

FALSE Dismantling and inspecting a competitor's product to discover product improvement is called reverse engineering.

The term failure as applied to reliability means that a part or item does not function at all.

FALSE Failure means that the part or item does not function as it should.

Utilization is defined as the ratio of effective capacity to design capacity.

FALSE If the bottleneck isn't increased, the capacity of the process remains unchanged.

Standardization can at times lead to serious difficulties and competitive struggles, particularly when systems are running under different conditions

FALSE It is the lack of standardization that can at times lead to serious difficulties and competitive struggles.

Life-cycle assessment involves incorporating where the product or service is in its life-cycle into system-design decision-making.

FALSE Life-cycle assessment involves assessing the environmental impact of a product or service as it goes through its useful life.

Modular design increases costs of purchasing and controlling inventory compared to non-modular.

FALSE Modular designs make inventory management easier and cheaper.

The quality function deployment (QFD) matrices are often referred to as the "House of Quality" because, when completed, they "house" all of the customer's quality requirements.

FALSE QFD matrices link customer requirements with other product/process design elements.

Quality function deployment (QFD) is based on a set of standards which relate customer requirements to company capabilities.

FALSE QFD relates customer requirements to product designs and the capabilities necessary to carry these designs out.

"Quality Function Deployment" is a structured approach that guarantees that the highest quality product or service will be designed.

FALSE Quality Function Deployment ensures that the voice of the customer is integrated into the product or service design question.

Robust design describes a product that will perform satisfactorily so long as it is used in a very narrow range of conditions

FALSE Robust designs perform satisfactorily across a wide range of conditions.

To save money, it is essential that designers revise the production capabilities to meet the requirements of the new products

FALSE Saving money requires designers to ensure that new products can be produced using existing production capabilities.

Commonality of components is beneficial for manufacturing but not for services.

FALSE Services can benefit from commonality in service elements.

The three Rs - Reduce, Re-use and Recycle - are more applicable in service design than in product design.

FALSE Services cannot be re-used or recycled.

One of the main advantages of standardization is that it increases the potential variety of products.

FALSE Standardization reduces the variety of products.

Taguchi design methods involve identifying the optimal operating or environmental conditions for a given product.

FALSE Taguchi design methods involve designing products that are relatively insensitive to environmental factors

Stating capacity in dollar amounts generally results in a consistent measure of capacity regardless of the actual units of measure.

FALSE The dollar value of a unit's output can change even though that unit's capacity hasn't

A 'House of Quality' is achieved when no department in a single location has more than 15% rejects.

FALSE The house of quality is a means of integrating the voice of the customer into the product or service development process.

Global teams provide diversity while eliminating conflicts and miscommunication.

FALSE Using globally diverse design teams increases the risks of conflicts and miscommunication.

Locational Break-Even Analysis

Method of cost-volume analysis to make an economic comparison of location alternatives

Factor - Rating Method

Popular because a wide variety of factors can be included in the analysis

Increasing productivity and also quality will result in increased capacity.

TRUE

Applied research is the major R & D effort of business organizations because of the desire for commercial applications.

TRUE Most business organizations focus on applied rather than basic research.

Product liability means that a manufacturer is liable for any injuries and damages caused by a faulty product because of poor workmanship or design

TRUE Product liability is a serious issue for manufacturers.

Research and development (R&D) refers to organized efforts that are directed toward increasing scientific knowledge and product (or process) innovation

TRUE Product or process innovations often result from deliberate R&D programs.

Re-manufacturing refers to removing some of the components of old products and reusing them in new products

TRUE Re-manufacturing is a way of increasing sustainability.

Reliability can be defined in terms of a particular point in time or in terms of length of service.

TRUE Reliable designs can be counted on to work over time.

The process of dismantling and inspecting a competitor's product to discover improvement is called reverse engineering

TRUE Reverse engineering is a legitimate means of evaluating the competitive landscape.

A disadvantage of standardization is the possibility of standardizing designs too early, which may make it difficult to modify in the future.

TRUE Standardization locks firms into designs that aren't easily changed.

Standardization refers to the extent to which there is absence of variety in a product, service, or process.

TRUE Standardization reduces variety and leads to greater efficiency.

An example of an external factor that influences effective capacity is government safety regulations.

TRUE Stricter safety regulations can reduce effective capacity

One motivation for an organization to redesign its product or service is to avoid the alternative of downsizing the organization.

TRUE The threat of downsizing often spurs product or service redesign.

Delayed differentiation and modular design are tactics for mass customization

TRUE These allow variety without giving up too much in the way of standardization

Most of the time what is called product or service design is actually a redesign of an existing product or service

TRUE Usually the core product or service remains relatively unchanged even though other features are modified or enhanced.

Labor Productivity

Wage rates are not the only cost Lower productivity may increase total cost LOOK ON SLIDE

The term 'standardization' is closely associated with: A. customization B. high cost C. longer lead times D. variety E. interchangeability

interchangeability

Which of the following is not one of the phases of product design and development? A. specify product specifications B. conduct market test C. specify process specifications D. conduct design review E. performance applied research

performance applied research