BUS 3010 SB CH 9
In stage ______ of the stage-gate development funnel, managers encourage employees to come up with as many new product ideas as possible.
1
The primary goal in stage ______ is to draft a detailed product development plan.
2
The primary goal in stage _______ is to draft a detailed product development plan.
2
Developing a product development plan can take about ______.
3 months
In which of the following ways can each functional activity along the value chain of a product add value to the product?
By lowering the cost By adding differentiated qualities
Sales and selling, after-sales service and support, and marketing are the three interconnected components of ______.
CRM
What type of information system quickly provides information about customer preferences and needs?
CRM
What are two main concerns for facility managers when designing facility layout?
Cost of setting up equipment Location of workers and machines
Samir wants to ensure a high level of coordination and communication among managers who have different functions. What kind of team might be effective at implementing his goal?
Cross-functional team
_______ are a major source of information about the causes of poor quality, so it's important that managers solicit employee suggestions about improvements.
Employees
True or false: A common mistake that managers make in product development is to fund too few new projects.
False
True or false: If a company is using a just-in-time (JIT) inventory system, the goods are finished and marketed just in time to meet consumer demand
False
True or false: If a company is using a just-in-time (JIT) inventory system, the goods are finished and marketed just in time to meet consumer demand.
False
_______ manufacturing is a strategy based on the use of IT to reduce costs associated with the product assembly process or the way services are delivered to customers.
Flexible
A ______ -level strategy is a plan of action to improve the ability of an organization's departments to perform their task-specific activities in ways that add value to the organization's products or services.
Functional
Which of the following play the two most key roles in helping organizations achieve superior quality, efficiency, innovation, and responsiveness to customers?
Functional strategy Value-chain management
What four things can companies do to achieve a competitive advantage?
Improve innovation Improve quality Improve efficiency Improve responsiveness to customers
Shandice is seeking to lower costs and increase differentiation to obtain a competitive advantage in her market. She is creating a plan to achieve superior efficiency, elevate quality, and increase speed and flexibility. What is the final aspect of the plan that Shandice needs to implement?
Improve responsiveness to customers
What are the two principal kinds of innovation?
Incremental product Quantum product
_______ is the stock of raw materials, inputs, and component parts that an organization has on hand at a particular time.
Inventory
Keeping costs down by only supplying the components needed at the time of production is which type of inventory system?
JIT
What are the general qualities or attributes that define what customers want?
Low price Quick service Customized to their needs High quality
Which of the following are general qualities or attributes that define what customers want in a product?
Lower price, high quality, quick service, good after-sales service, and customized products
Match the activity to its purpose.
Marketing activities - Directly contribute to the making of a product or service—for example, logistics and operations Support activities - Contribute to creating value but are not directly linked to a product or service—for example, company infrastructure and new technology
______ ______ is the management of the value chain activities involved in bringing new or improved goods and services to market.
Product development
What aspect of management is involved in bringing new or improved goods and services to the market?
Product development
What value-chain activity is involved in the management of bringing a new product to market?
Product development
Which of the following refers to the management of the value chain activities involved in bringing new or improved goods and services to the market?
Product development
______ is the engineering and scientific research activities involved in innovating new or improved products that add value to a product.
Product development
The starting point of the value chain is often the search for new and improved products that will better appeal to customers. This validates the importance of which functions?
Product development Marketing
Match the facility layout type with the correct definition on the right.
Product layout - Machines are organized so that each operation needed to manufacture a product or process a patient is performed at workstations arranged in a fixed sequence. Fixed-position layout - The product stays in a fixed position. Its component parts are produced in remote workstations and brought to the production area for final assembly. Process layout - Workstations are not organized in a fixed sequence. Rather, each workstation is relatively self-contained, and a product goes to whichever workstation is needed to perform the next operation to complete the product
Kali is spending her time locating potential customers, informing them about her company's product, and then trying to persuade them to buy it. She is engaging in what function?
Sales
What function locates customers, informs and persuades them to buy products?
Sales
What are the three components of CRM systems?
Sales and selling, after-sales service and support, and marketing.
Which functional strategy uses 5 to 15 employees to produce an entire product?
Self-managed work teams
Seth is trying to assess how much improvement his company has made through changes they have recently implemented. To make this assessment, he is using refined statistical methods. Seth is likely engaging in what TQM technique?
Six Sigma
Which of the following techniques is used to measure quality improvements across the value chain of a product?
Six Sigma
High-quality products possess the following attributes.
Superior design Reliability After-sales support
The breakdown of barriers between value-chain functions is required for the successful implementation of ______.
TQM
Alyssa is undertaking a management initiative to focus all aspects of her company's value chain on improving the quality of their products. The name of this strategy is ______.
Total Quality Management
True or false: The impact of information systems on productivity can potentially affect all activities of a company.
True
______ is the development of a set of functional-level strategies that support a company's business-level strategy and strengthen its competitive advantage.
Value chain management
To evaluate quality, it is helpful when organizations develop ______ system.
a TQM
The goal of Six Sigma is to improve a company's quality by systematically altering the way _____, and then carefully measuring _____ using statistical methods.
all the processes in the value chain are performed; how much improvement has been made
At gate 2, projects can be:
allowed to pass through to stage 3. sent back for revision. rejected.
A complete product development plan includes:
an analysis of the product's market potential. a list of desired product features. a list of technological requirements. strategic and financial objectives.
Managers can pursue a low-cost strategy by keeping product prices ______ or pursue a differentiation strategy and add value to a product by finding ways to ______.
as low as or lower than competitors' prices; make it superior to products of competitors`
The primary goal of stage 1 in the stage-gate funnel is to identify ______.
as many new product ideas as possible
In the production function, the major activities associated with physical products are manufacturing and ______.
assembly
For TQM to be successful, companies need to create a sense of ______ quality in the employees.
commitment to
Companies develop value-chain management strategies to strengthen their ______ advantage.
competitive
In the value chain, organizational functions convert inputs, such as ______, into outputs, such as ______.
component parts; finished goods
JIT inventory keeps costs down by only supplying the ______ needed at the time of production.
components
For TQM implementation to be successful, employees in different value-chain functions need to ______.
cooperate
Cross-functional teams, which include many different managers in different departments, allow for a high level of ______.
coordination
A company that customizes every product to the unique demands of individual customers is likely to see its ______.
costs grow out of control
After-sales service is an important component of the ______ service function.
customer
In a TQM system, quality product or service is defined by the ______.
customer
The insights gained during the product development process help to define what ______ to target.
customer base
Companies such as aircraft manufacturer Boeing talk to companies such as American Airlines to get ______ in their design process.
customer input
It is important for marketing managers to focus on defining their company's business needs in terms of ______.
customer needs
Many new products fail when they reach the marketplace because they were designed with little attention to ______.
customer needs
A system that quickly provides information about customer preferences and can increase the speed and efficiency with which companies act is a ______ system.
customer relationship management
Information that allows for quick adjustments in marketing to better respond to customer needs is known as ______.
customer relationship management
Marketing departments can make quick adjustments to respond to customer desires with information from a(n) ______ system
customer relationship management
Providing after-sales service and support is a part of the role of the ______ function
customer service
A successful product first requires thorough market research to identify what the ______.
customer wants
Boeing includes its ______, such as American Airlines, when making design decisions on new commercial jet aircraft.
customers
Organizations must correctly identify their ______ and pursue strategies that best meet their needs.
customers
The product development plan will help managers:
decide whether to proceed with a project.
In a JIT inventory system, ______.
defective inputs can be quickly spotted
Facilities layout is the strategy of ______.
designing machine-worker interface to increase operating system efficiency
A plan that specifies all of the relevant information that managers need in order to decide whether to proceed with a full-blown product development effort is a product ______ plan.
development
The reason for using a cross-functional team is to ensure a high level of coordination and communication among ______.
different functional managers
The fewer the input resources required to produce a given volume of output, the higher the ______ of the operating system will be.
efficiency
One important source of information about the causes of poor quality is ______.
employee input
According to the textbook, the three strategies that managers use to develop innovative products are to:
establish a stage-gate development funnel. involve both customers and suppliers. establish cross-functional teams.
The strategy of designing the machine-worker interface to increase operating system efficiency is ______.
facilities layout
Once a customer purchases a product or service, the company can improve the product or service as a result of customers providing ______.
feedback
The product development plan should include a list of:
financial requirements. human resource requirements. production costs.
The TQM system pushes managers to:
find defects. trace defects to their source. understand why defects occurred.
Product layout arranges machines needed to manufacture a product in a ______ sequence.
fixed
When producing large scale products, such as aircraft, ______ layouts are most efficient; for mass production lines, ______ layouts are most appropriate.
fixed-position; product
Reduction in set-up time is the aim of:
flexible manufacturing
The set of techniques that attempt to reduce the costs associated with product assembly or the way services are delivered to customers is ______.
flexible manufacturing
The stage-gate development funnel is a technique that ______.
forces managers to choose among competing projects
A plan of action to improve the ability of an organization's functions or departments (such as manufacturing or marketing) to perform task-specific activities in ways that add value to an organization's goods and services is a ______ strategy
functional-level
A plan of action to improve the ability of an organization's functions or departments (such as manufacturing or marketing) to perform task-specific activities in ways that add value to an organization's goods and services is a ______ strategy.
functional-level
Cross-functional teams allow for a high level of coordination among many different managers in different ______.
functions
With the stage-gate funnel, managers evaluate the potential of ideas and choose only a few so that the company does not overstretch its resources by trying to ______.
fund too many projects
In the stage-gate funnel, the gate at which projects are rejected, sent back for revision, or allowed to pass through to the final stage is ______.
gate 2
Superior design, features, reliability, and after-sales support are attributes that ______ possess.
high-quality products
By not warehousing defective parts for long periods of time, just-in-time systems allow defective parts to be ______.
identified quickly
With the use of technology, the value-chain process can be ______.
improved
In step four of the TQM process, managers set a challenging quality goal and create ______ for reaching the goal.
incentives
Inventory is the stock of ______ that an organization has on hand.
inputs raw materials component parts
The stage-gate funnel gives managers control over product development and allows them to rapidly ______.
intervene to take corrective action
According to the textbook, the three strategies that managers use to develop innovative products are: establish a stage-gate development funnel; establish cross-functional teams; and ______.
involve both customers and suppliers
TQM will do little to improve the performance of an organization unless the organization
is committed to quality.
An inventory system in which parts or supplies arrive at the organization when they are needed is known as a ______ inventory system.
just-in-time
When measuring efficiency, an organization uses all its resources such as ______ to produce its outputs, or goods and services.
labor materials capital
Because many different functional areas come together in a cross-functional team, it becomes important that there is a ______ who can give the team direction and focus.
leader
The success of a cross-functional team depends on how effectively it is managed and if it has the right kind of ______.
leadership
Cost of setup and ______ are two main concerns for facility managers when designing facility layout.
location of workers and machines
Managers can use two basic business-level strategies to add value to an organization's products and achieve a competitive advantage. They can pursue a ______ strategy or a ______ strategy.
low-cost; differentiation
When we talk about production, we generally mean manufacturing and assembly, which are __ products. Regarding banking or retailing, production takes place when the service is actually provided or delivered to the customer, which are __ products.
physical; service
Jordan is attempting to reduce overhead costs by rethinking and redesigning the company's business processes. Jordan is most directly engaging in ______.
process reengineering
The process of rethinking and redesigning business systems to reduce costs and improve quality, service, and speed is ______.
process reengineering
Machines organized so that each operation needed to produce a product are arranged in a fixed sequence is an example of a ______ layout.
product
The _______ ______ plan specifies all of the relevant information that managers needs to decide whether to go ahead with a full-blown product development effort.
product development
In the stage-gate funnel, proposals are reviewed before they can pass through Gate 1 into Stage 2 for ______.
product development
Companies have found it worthwhile to include customer representatives as members of their ______.
product development teams
Mass production lines use ______ layout designs; while custom-made applications use ______ layout designs.
product; process
A major source of product defects is the ______.
production system
The stage-gate development funnel is used to filter out and choose which ______ will be developed.
products
The goal of Six Sigma is to improve the company's ______.
quality
The type of innovation that results in the development of new, often radically different, kinds of goods and services is ______ innovation; the type of innovation that results in gradual improvements and refinements of existing products over time is ______ innovation.
quantum product; incremental product
The stage-gate development funnel filters ideas and proposals to determine which products will be:
rejected. developed.
Gate 2 in the stage-gate funnel functions as the second review point when the product development plan is reviewed by _______.
senior management
One of the important steps while implementing an organization wide TQM program is to _____.
set a challenging quality goal and to create incentives for reaching that goal
By redesigning the manufacturing process so production equipment geared for manufacturing one product can be quickly replaced with equipment geared to make another product, ____.
setup times can be reduced dramatically costs can be reduced dramatically
The customer service function can create a perception of superior value in the minds of customers by ______ after they have purchased the product
solving customer problems supporting customers
A strategy to evaluate product development proposals and decide which to support or reject is a ______.
stage-gate development funnel
A technique that forces managers to choose among competing projects so functional resources are not spread thinly over too many projects is known as a(n) ______.
stage-gate development funnel
The technique that forces managers to choose among competing projects so that functional resources are not spread thinly over too many projects is the ______.
stage-gate development funnel
To evaluate product development proposals, managers may develop a _____ process.
structured
Michael Porter broke down the value chain into primary and _____ activities.
support
The customer service function can create a perception of superior value in the minds of customers by ______ after they have purchased the product.
supporting customers solving customer problems
The use of self-managed work teams allows a single team to produce ______ product.
the entire
Kush is learning about his company's value chain. Broadly speaking, this would mean ______.
the sequence of activities that transform inputs into finished goods or services
A planning model that forces managers to make choices among competing projects is known as ______.
the stage-gate development funnel
With TQM, the challenges of focusing on the customer are:
to identify what the company actually provides. to identify the quality gap. to identify what customers want.
The development of a measuring system that managers can use to evaluate quality requires ______.
total quality management
The management technique that focuses on improving the quality of an organization's products and services is known as ______.
total quality management
The coordinated sequence of functional activities necessary to transform inputs into finished goods or services is called the ______.
value chain
To keep costs down, while still responding to customer wants, organizations can use the ______.
value chain
One purpose of the product development plan is to help managers decide ______.
whether or not to proceed with a complete product development plan
The product development plan specifies all of the relevant information that managers need to decide ______.
whether to go ahead with a complete product development effort
