Chapter 5 Design of Goods and Services

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.

A

What is the use of information technology to control machinery? A) CAM B) CAD C) QFD D) DFMA E) STEP

A

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%

A

What type of analysis focuses on the ways in which processes can be designed to optimize interaction between firms and their customers? A) PCN B) BOM C) OI D) DFMA E) PLM

A

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.

B

What identifies components by a coding scheme that specifies size, shape, and the type of processing (such as size)? A) engineering drawing B) group technology C) bill of material D) assembly drawing E) assembly chart

B

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

B

A process sheet is a type of: A) assembly drawing. B) assembly chart. C) route sheet. D) work order. E) bill of material.

C

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

C

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

C

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.

C

The hierarchy of 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) a work order.

C

What technology "builds" products by laying down successive thin layers of plastic, metal, glass, or ceramics? A) CAM B) STEP C) 3-D printing D) replicator E) virtual reality

C

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.

C

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

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

C

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.

D

Transition to production refers to the act of moving a product to production from what? A) inventory B) the supplier C) the market D) development E) the wholesaler

D

________ 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

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 the above are true.

E

A work order is a list of the hierarchy of components, their description, and the quantity of each required to make one unit of the product. True or False?

FALSE

According to PCN analysis, the consumer's process domain typically includes the set of activities at the beginning of the process chain. True or False?

FALSE

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

FALSE

A document for production that gives the instruction to make a given quantity of a particular item, usually to a given schedule, is a(n): A) work order. B) route sheet. C) bill of information. D) assembly chart. E) value analysis.

A

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

FALSE

The role of decision trees in product design is to: A) rank products in descending order of their dollar contribution to the firm. B) better understand the customers' wants. C) calculate the expected value of each course of action. D) calculate the value of quality function deployment. E) calculate the value of the moment of truth.

C

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

D

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

FALSE

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) assembly chart.

A

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 the above.

A

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

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

Group technology requires that: A) each component be identified by a coding scheme that specifies size, shape, and the type of 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

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

A

Which of the following is NOT a service design technique used to increase service efficiency? A) increase customer interaction B) delay customization C) automation D) modularization E) limit the options

A

According to PCN analysis, which process region includes process steps in which one participant is acting on another participant's resources, such as their information, materials, or technologies? A) independent processing B) surrogate interaction C) direct interaction D) resource processing E) process domain interaction

B

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

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

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).

C

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.

C

Which of the following documents lists the operations 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

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

Which of the following typically shows the hierarchy of 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 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

According to PCN analysis, service operations exist only within the area(s) of: A) independent processing. B) independent processing and surrogate interaction. C) independent processing and direct interaction. D) surrogate interaction and direct interaction. E) independent processing, surrogate interaction, and direct interaction.

D

Payoffs, alternatives, and expected monetary values are terms associated with: A) virtual reality. B) product life-cycle management. C) quality function deployment. D) decision trees. E) make-or-buy analysis.

D

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.

D

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.

D

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.

D

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.

D

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

E

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

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

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.

E

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

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

FALSE

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. True or False?

FALSE

Modular design exists only in tangible products; it makes no sense in services. True or False?

FALSE

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. True or False?

FALSE

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). True or False?

FALSE

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

TRUE

According to PCN analysis, firms intending to provide a value offering that focuses on customization should be positioned more toward the consumer's process domain. True or False?

TRUE

Group technology enables the grouping of parts into families based on similar processing requirements. True or False?

TRUE

Product strategy may focus on developing a competitive advantage via differentiation, low cost, rapid response, or a combination of these. True or False?

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

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

TRUE

The customer may participate in the design of, and in the delivery of, services. True or False?

TRUE

The moment-of-truth is the crucial moment between the service provider and the customer that exemplifies, enhances, or detracts from the customer's expectations. True or False?

TRUE

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. True or False?

TRUE