Operation Management- Ch5

Identify the 7 steps involved in building the house of quality.

(1) Identify customer wants. (2) Identify how the good/service will satisfy customer wants. (3) Relate customer wants to product hows. (4) Identify relationships between the firm's hows. (5) Develop importance ratings. (6) Evaluate competing products. (7) Determine the desirable technical attributes, your performance, and the competitor's performance against these attributes.

A graphic technique for defining the relationship between customer desires and product (or service) is:

B) the house of quality.

Identify the benefits associated with manufacturability and value engineering.

Benefits include immediate cost reduction, reduced product complexity, additional standardization of components, improvement of functional aspects of the product, improved job design and job safety, improved maintainability (serviceability) of the product, and robust design.

Identify and briefly describe the three process regions from PCN analysis.

Direct interaction includes process steps that involve interaction between participants. Surrogate interaction includes process steps in which one participant is acting on another participant's resources, such as their information, materials, or technologies. Independent processing includes steps in which the participant is acting on resources where it has maximum control.

Operations managers must be able to anticipate changes in which of the following?

E) All of the above

Quality function deployment (QFD):

E) All of the above

Which of the following is TRUE concerning advantages of CAD?

E) All of the above

Which of the following represents an opportunity for generating a new product?

E) All of the above

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

E) I, II, III, IV, V

Which of these statements regarding Regal Marine is TRUE?

E. All of the above are true

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

FALSE

Modular design exists only in tangible products; it makes no sense in services.

FALSE

Identify at least three general benefits derived from CAD.

Faster development, better products, and accurate flow of information to other departments.

In the ________ phase of the product life cycle, the product design has begun to stabilize.

Growth

The ________ is a part of the quality function deployment process that utilizes a planning matrix to relate customer "wants" to "how" the firm is going to meet those "wants."

House of quality

Identify the methods of service design that can increase service efficiency and limit customer interaction.

Limit the options, delay customization, modularization, automation, and focusing design on the moment of truth.

Is it possible for a product's life cycle stage to affect its product strategy? In particular, describe how one product in growth and another in maturity might have different product strategies.

There is no reason for the strategy to be static through the life cycle stages. Organizations often treat new products differently than older ones, in terms of support for changes, aggressiveness in pursuit of market, etc. In particular, growth is associated with stabilization of design, and with ensuring that sufficient capacity exists. Maturity is a time for high-volume operations and cost control.

Aggressive new product development requires that organizations build structures internally that contain what features?

They should have open communication with customers, innovative product development cultures, aggressive R&D, strong leadership, formal incentives, and training.

What is time-based competition?

Time-based competition is competition that is based on time. It involves rapid development of products and moving them to market. Often, the first company into production may have its product adopted as the "standard."

What is the objective of the product decision?

To develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage.

Identify factors that influence new product opportunities.

Understanding the customer, economic change, sociological and demographic change, technological change, political/legal change, and other changes brought about through market practice, professional standards, suppliers, and distributors.

________ reviews successful products for improvement during the production process.

Value analysis

Explain the difference between value analysis and value engineering.

Value engineering is concerned with reducing cost and improving function in a preproduction setting, while value analysis, with similar aims, takes place during production, when the product has shown that it will succeed. Techniques are similar.

A listing of the hierarchy of components, their description, and the quantity of each required to make one unit of product is the ________.

bill of material

Product selection

choosing the goods or service to provide customers or clients

A drawing that shows the dimensions, tolerances, materials, and finishes of a component is a(n) ________.

engineering drawing

In analyzing product design decisions, decision trees determine the ________ of each course of action.

expected value or EMV

Products or services designed in easily segmented components are known as ________ designs.

modular

The ________ is the crucial moment between the service provider and the customer that exemplifies, enhances, or detracts from the customer's expectations.

moment of truth

Rapidly developing products and moving them to the market is referred to as ________.

time-based competition

Product Decision

to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage

The dimensions, tolerances, materials, and finishes of a component are typically shown on a(n):

B) engineering drawing.

What identifies components by a coding scheme that specifies size, shape, and the type of processing (such as size)?

B) group technology

An assembly drawing:

B) shows an exploded view of the product.

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?

B) surrogate interaction

What is a product-by-value analysis, and what type of decisions does it help managers make?

A product-by-value analysis lists products in descending order of their individual dollar contribution to the firm, as well as the total annual dollar contribution of the product. It helps managers evaluate possible strategies for each product. The report may also tell management which product offerings should be eliminated and which fail to justify further investment in research and development or capital equipment. The product-by-value report focuses management's attention on the strategic direction for each product.

What percentage of sales from new products is indicative of industry leaders?

A) 50%

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

What type of analysis focuses on the ways in which processes can be designed to optimize interaction between firms and their customers?

A) PCN

An engineering drawing shows the:

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

Group technology requires that:

A) each component be identified by a coding scheme that specifies size, shape, and the type of processing.

Which of the following would likely cause a change in market opportunities based upon levels of income and wealth?

A) economic change

Which of the following is NOT a service design technique used to increase service efficiency?

A) increase customer interaction

The three major elements of the product decision are:

A) selection, definition, and design.

An assembly chart:

A) shows graphically how the product is assembled.

A result of concurrent engineering in product design is:

A) speedier product development.

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.

12) An exploded view of the product is a(n) ________.

Assembly drawing

When should product strategy focus on forecasting capacity requirements?

B) at the growth stage of the product life cycle

What technology "builds" products by laying down successive thin layers of plastic, metal, glass, or ceramics?

C) 3-D printing

Which of the following is true regarding value engineering?

C) Value engineering is oriented toward improvement of design.

The hierarchy of components, their description, and the quantity of each required to make one unit of a product are documented on:

C) a bill of material

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?

C) a bill of material

Which of the following documents lists the operations necessary to produce the component with the material specified in the bill of material?

C) a route sheet

Which of the following is an example of an external product development strategy?

C) alliances

Which of the following shows in schematic form how a product is assembled?

C) an assembly chart

The role of decision trees in product design is to:

C) calculate the expected value of each course of action.

Reducing the complexity of a product and improving a product's maintainability are activities of:

C) manufacturability and value engineering.

At which stage of the product life cycle is product strategy likely to focus on improved cost control?

C) maturity

Boeing's 737 airplane and Hewlett-Packard's printer business are examples of using enhancements and migrations of existing products to build on a ________.

C) product platform

A process sheet is a type of:

C) route sheet.

Regal Marine

C) treats the product design decision as critical to its success.

Regal Marine's use of ________ has reduced product development time and reduced problems with tooling and production.

CAD or Computer-aided Design

The use of information technology to control machinery is called ________.

Computer-aided manufacturing (CAM)

What is the use of information technology to control machinery?

Computer-aided manufacturing (CAM)

How does configuration management manifest itself when you ask for service on your automobile?

Configuration management is used by every automobile manufacturer to track all of the changes between and during a model year. To be specific about the part that is needed, the VIN (vehicle identification number) is often used.

Which of the following is TRUE regarding computer-aided design?

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.

D) Product-by-value analysis

The Japanese method of organizing for product design features:

D) a single organization without subdivision or individual teams.

Payoffs, alternatives, and expected monetary values are terms associated with:

D) decision trees.

Transition to production refers to the act of moving a product to production from what?

D) development

Value analysis takes place

D) during the production process when it is clear that the new product is a success.

A product's life cycle is divided into four stages, which are:

D) introduction, growth, maturity, and decline.

Which of the following product development strategies has the highest product development risk?

D) new internally developed products

The analysis tool that lists products in descending order of their individual dollar contribution to the firm is:

D) product-by-value analysis.

A route sheet provides a(n):

D) sequence of operations necessary to produce the component.

7) According to PCN analysis, service operations exist only within the area(s) of:

D) surrogate interaction and direct interaction.

Discuss the advisability of using modular assemblies in manufacturing. (What are the advantages and disadvantages?) To what extent can these arguments be applied to service products?

Modules are easily segmented components. They add flexibility to production and marketing. They allow mix-and-match of components (customization at point of customer contact). Use of modules usually means fewer parts, less design and tooling expense. Disadvantages include using a module in a product for which a more specific component would have been better. It also may be possible that a module is more expensive than a product-specific version would be because it has to function properly for multiple products. Modules do exist in services, as in fast-food meals built to customer specification. Diff: 3

Briefly explain how product life-cycle management (PLM) impacts product design.

PLM is an umbrella of software programs that attempts to bring together many phases of product design and manufacture. PLM products often start with product design (CAD/CAM); move on to design for manufacture and assembly (DFMA); and then into product routing, materials, layout, assembly, maintenance and even environmental issues.

________ lists products in descending order of the individual dollar contribution to the firm.

Product-by-value analysis

What is quality function deployment (QFD)?

QFD refers to both (1) determining what will satisfy the customer and (2) translating those customer desires into the target design.

________ is a process for determining customer requirements and translating them into attributes that each functional area can understand and act upon.

Quality function deployment or QFD

If a design can be produced to requirements even when the production process has unfavorable conditions, the design is said to be ________.

Robust design

________ provides a format allowing the electronic transmittal of three-dimensional data.

Standard for the exchange of product data or STEP

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

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

TRUE

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

TRUE

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

TRUE

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

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

Identify the external product development strategies; describe each in a sentence or two.

The external product development strategies include alliances, joint ventures, and purchase of technology or expertise by acquiring the developer. Alliances are cooperative agreements that allow firms to remain independent, but use complementing strengths to pursue strategies consistent with their individual missions. Joint ventures are combined ownership to pursue new products or markets. Purchasing technology or expertise is usually accomplished by acquiring entrepreneurial firms that have already developed the technology that fits the mission. The issue then becomes fitting the purchased organization, its technology, and its product line into the buying firm, rather than a product development issue.

Provide some examples of recent product changes, i.e. new products that are replacing older ones.

The list in the text includes: TV to HDTV, radio to satellite radio, coffee shops to Starbucks lifestyle coffee, traveling circuses to Cirque du Soleil, land lines to cell phones, cell phone to iPhone, Walkman to iPod, and mops to Swiffers.

"With respect to the product decision, managers must be able to accept risk and tolerate failure." Comment on why this is a necessary hazard in making new product decisions, given all the powerful tools and carefully built systems that support that decision.

The vast majority of new product ideas do not become marketable products, and most marketable products are failures. Perhaps hundreds of designs accompany each success.

Within PCN analysis, a(n) ________ is a sequence of steps that accomplishes an identifiable purpose (of providing value to process participants).

process chain

Boeing's 737 airplane and Hewlett-Packard's printer business are examples of using enhancements and migrations of existing products to build on a(n) ________.

product platform