MRKTG 372 Ch 3
d
17. Approximately what percentage of ideas do not make it past the screening stage? a) 30% b) 50% c) 60% d) 80% e) 90%
a
3. A company's product design supports its business strategies by a) designing products that appeal to its customers b) designing as many products as possible c) including the company's mission somewhere in the product d) designing products that aid strategic planning activities e) designing the company's strategy
a
30. Which type of operation is used to produce many different products with varying process requirements in lower volumes? a) intermittent b) repetitive c) continuous d) downstream e) gateway
b
31. Which of the following is not characteristic of intermittent operations? a) produce many different products with varying processing requirements b) capital intensive c) workers need to be able to perform different tasks depending on the processing needs of the product d) general purpose equipment e) volume of goods produced directly tied to number of customer orders
Project Process
make a one-at-a-time product exactly to customer specifications. -Building a bridge over the Mississippi River for a new highway uses a
much of the time at your last doctor's appointment was spent waiting. An important metric that measures how much wasted time exists in a process is
process velocity.
throughput time
the amount of time required to turn raw materials into completed products. , which is the average amount of time it takes a product to move through the system. This includes the time someone is working on the product as well as the waiting time.
e
67. The steps in the product design process include a) Idea Development, Product Screening, Break-even analysis, Build b) Idea Development, Benchmarking, Preliminary Design, Final Design c) Seek Competitors Design Specs, Product Screening, Manufacture, Sell d) Seek Customer Input, Product Screening, Testing, Final Design e) Idea Development, Product Screening, Preliminary Design & Testing, Final Design
d
28. Which of the following is not a guideline for design for manufacture? a) use modular design b) design parts for different products c) minimize parts d) rely on automated equipment e) simplify operations
c
29. Maturity and decline are also referred to as: a) the early stages b) the life cycle c) the later stages d) design for manufacture stages e) re-engineering stages
a
32. Building a bridge over the Mississippi River for a new highway uses a a) project process b) batch process c) line process d) continuous process e) recycle process
b
33. The classes that you are taking at the university use a ___________ process. a) project b) batch c) line d) continuous e) recycle
c
34. What type of process is designed to produce a large volume of a standardized product for mass production, such as automobiles? a) project processes b) batch processes c) line processes d) continuous processes e) recycle processes
a
35. Which type of process would be least likely to produce goods for inventory rather than for a specific customer request? a) project b) batch c) line d) continuous e) remanufacturing
c
36. Which of the following is a tool for evaluating an operation in terms of the sequence of steps from inputs to outputs with the goal of improving its design? a) operations analysis b) operations sequencing c) process flow analysis d) input/output analysis e) sequencing analysis
b
37. If the third stage of a repetitive line process cannot complete its activities as fast as stage one or two it has become a: a) key work location b) bottle neck c) place not to work d) project process location e) none of these
d
55. What is a type of automation system that provides the flexibility of intermittent operations with the efficiency of repetitive operations? a) CAD b) AGV c) AS/RS d) FMS e) CAM
b
56. In manufacturing, a robot typically: a) resembles a human in appearance b) has a mechanical arm c) is mobile d) has legs e) is very small
a
57. What type of machine is controlled by a computer and can do a variety of tasks, such as drilling, boring, or turning parts of different sizes and shapes? a) numerically controlled b) variable turning c) flexible driven d) non-calculating e) next component
b
68. Which type of operational function represents an Assemble-to-Order? a) wedding invitations b) corporate training c) airline flights d) legal services e) vacation packages
e
58. What term is used to describe the integration of product design, process planning, and manufacturing using an integrated computer system? a) CAD/CAM b) AGV c) AS/RS d) FMS e) CIM
e
59. Since services are intangible, the design of the service needs ___________ . a) to be intangible b) to be very specific c) to be in the mind of the customer d) to be explained to the customer prior to delivery of the service e) to specify exactly what the customer is supposed to experience.
c
6. All product designs begin with ____________ . a) a blueprint b) a cost analysis c) an idea d) a feasibility study e) a focus group
a
60. Services with low customer contact are called _____________ . a) quasi-manufacturing b) quasi-services c) mixed services d) pure services e) mixed manufacturing
d
61. Highly labor intensive services are called _____________ . a) quasi-manufacturing b) quasi-services c) mixed services d) pure services e) mixed manufacturing
d
62. Firms that have areas that have little customer contact and others with high customer contact are classified as _________ services. a) pure services b) quasi-manufacturing c) quasi-services d) mixed services e) manufacturing
a
63. What are the three elements of the service package? a) physical goods, sensual benefits, and psychological benefits b) sales, return policy, and warranty c) customer service, return policy, and warranty d) kindness, information provision, and speed e) physiological benefits, sensual benefits, and psychological benefits
e
64. What are the three different service designs that are described in the chapter? a) substitute people for technology; get the customer involved, high customer attention approach b) customer-based market research, high customer attention approach, substitute technology for people c) customer-based market research, high customer attention approach, gets the customer involved d) substitute people for technology, customer-based market research, and high customer attention approach e) substitute technology for people; get the customer involved, high customer attention approach
c
65. Product design decisions are: a) purely tactical decisions. b) mixed tactical and strategic decisions. c) strategic in nature. d) only made by the OM department. e) rarely made.
d
66. Company A has a great idea for a product. What is the first step for Company A? a) do a break-even analysis b) determine characteristics and features of the product c) determine the process selection d) determine characteristics and features of the product and determine the process selection e) benchmark other similar company's products
c
69. A series of stages that products pass through in their lifetime, characterized by changing product demands over time is defined as a) Development life cycle b) Design program c) Product life cycle d) Services life cycle e) Product life methodology
Why is a process flowchart useful?
for seeing the totality of the operation and for identifying potential problem areas
Process-flow analysis
is a tool for evaluating an operation in terms of the sequence of steps from inputs to outputs with the goal of improving its design. The tool used is a flow chart
process flowchart
is used for viewing the sequence of steps involved in producing the product and the flow of the product through the process.
step in product design
preliminary design and testing, idea development, product screening, final design
new car models and new fashion are predictable, but new skin care products are not
this is true regarding the relative predictability of the cycle of new product
Process Performance Metrics
-are measurements of different process characteristics that tell us how a process is performing.-capacity -efficiency -timeliness -flexibility -quality
typical symbols used are arrows
to represent flows, triangles to represent decision points, inverted triangles to represent storage of goods, and rectangles as tasks.
c
25. During the final design and testing stage: a) the product design idea is evaluated according to the needs of the major business functions. b) design engineers hand the product over to the final design engineers. c) the product specifications are drawn up. d) marketing becomes involved for the first time. e) the product achieves full production.
b
20. Which of the following is not a fixed cost? a) land rent b) materials c) overhead d) taxes e) insurance
a
21. In break-even analysis, what is the break-even point? a) the quantity where revenue equals total cost b) the quantity where revenue equals fixed cost c) the quantity where revenue equals variable cost d) the quantity beyond which the firm starts to lose money e) the quantity where variable cost equals fixed cost
a
22. In break-even analysis, in order to make a profit the company must a) sell above the break-even point b) sell below the break-even point c) sell at a loss d) sell at the break-even point e) sell on consignment
e
23. For which of the following is break-even analysis not appropriate? a) deciding how much of a product must be sold to make a profit b) evaluating different processes c) deciding whether it is better to make or buy a product d) deciding between different products e) deciding how to allocate overhead
d
27. What refers to the use of common and interchangeable parts? a) design automation b) design specification c) design reduction d) design standardization e) design simplification
a
1. The ease with which the product can be made is its a) manufacturability b) repeatability c) readiness for manufacturing d) reliability e) accountability
Which of the following are characteristic of intermittent operations?
1. workers need to be able to perform different tasks depending on the processing needs of the product 2. produce many different products with varying processing requirements 3. not capital intensive 4. general-purpose equipment 5. volume of goods produced directly tied to the number of customer orders
c
10. When designing the Taurus model, what did Ford Motor Company do with regard to BMW and Toyota? a) benchmarking b) hired some of their employees c) reverse engineering d) copied their quality management techniques e) bought some of their dealerships
d
11. Reverse engineering is: a) altering the basic design based on user input. b) reengineering a failing product. c) acquiring a competitor's product and relabeling it for sale. d) acquiring a competitor's product and studying its design features. e) changing your mind on the previous design.
d
12. Studying the practices of companies considered "best in class" and comparing the performance of our company against their performance is a) competition b) copying c) frustration d) benchmarking e) notching
e
13. Involving suppliers early in the design process is called: a) reengineering b) disaggregation c) redesign d) benchmarking e) supplier involvement
a
14. Evaluating a product idea to determine its likelihood of success is a) product screening b) estimating c) technological forecasting d) product windowing e) product evolution
d
15. In product screening, issues such as "Will we need new facilities and equipment?" and "Can material for production be readily obtained?" are addressed by a) marketing b) finance c) engineering d) operations e) accounting
a
16. In product screening, issues such as, "What is the market size?" and "What is the long term-product potential?" are addressed by: a) marketing b) finance c) engineering d) operations e) accounting
b
18. What technique is based on computing the quantity of goods a company needs to sell to just cover its costs? a) net present value b) break-even analysis c) internal rate of return d) activity based costing e) variable costing
e
19. Costs that are proportional to the amount of units produced, such as materials and labor, are a) fixed costs b) marginal revenue c) sunk costs d) cost drivers e) variable costs
e
2. Service design differs from product design by including _____________ . a) customer needs b) marketing personnel in the decision making process c) speed d) quality e) the esthetic and psychological benefits of the product
a
24. Which of the following is not included in the preliminary design and testing stage? a) the product design idea is evaluated according to the needs of the major business functions b) design engineers translate general performance specifications into technical specifications c) "bugs" are worked out d) revising the design based on test results e) prototypes are built and tested
e
26. Which one of these refers to reducing the number of parts and features of the product whenever possible? a) design automation b) design specification c) design reduction d) design standardization e) design simplification
b
38. Which of the following is correct sequence for relating product design, process selection, and arrangement of equipment in the factory? a) product design determines arrangement of equipment which determines process selection b) product design determines process selection which determines arrangement of equipment c) process selection determines product design which determines arrangement of equipment d) process selection determines arrangement of equipment which determines product design e) arrangement of equipment determines process selection which determines product design
d
39. What type of operations focus on products in the early stage of the life cycle? a) repetitive b) downstream c) gateway d) intermittent e) recycle
d
4. Which of the following is not a step in product design? a) final design b) preliminary design and testing c) idea development d) conceptual design e) product screening
d
40. With respect to competitive priorities, intermittent operations compete more on _____________ compared to repetitive operations. a) cost and features b) durability and cost c) availability and reliability d) flexibility and delivery e) durability and features
b
41. Intermittent operations group their resources based on a) requirements of the product b) similar operations or functions c) shape of the shop floor d) abilities of the labor force e) the number of machines
b
42. Compared to intermittent operations, repetitive operations a) have higher material handling costs b) have greater efficiency c) have slower processing rates d) have more flexibility e) are less specialized
c
43. Which product and service strategy is used to produce standard components that can be combined to customer specifications? a) assemble-to-deliver b) make-to-stock c) assemble-to-order d) make-to-order e) make-to-package
d
44. Which product and service strategy has the longest delivery lead time? a) assemble-to-deliver b) make-to-stock c) assemble-to-order d) make-to-order e) make-to-package
c
45. Pre-fabricated furniture with choices of fabric colors is an example of which product and service strategy? a) assemble-to-deliver b) make-to-stock c) assemble-to-order d) make-to-order e) make-to-package
b
46. Which product and service strategy is typically seen in repetitive operations? a) assemble-to-deliver b) make-to-stock c) assemble-to-order d) make-to-order e) make-to-package
d
47. If a firm's facility layout is not correct it will create: a) project processes b) optimum outputs c) equal number of products d) inefficiency e) job satisfaction
c
48. Information Technology does not assist the firm in: a) information storage b) information processing c) information creation d) intra firm information communication e) inter firm information communication
e
49. Vertical integration is a good strategic option for a manufacturing company when a) it needs several different parts and subassemblies b) it makes many different products c) its facilities are obsolete d) it uses distributed processing e) it needs one input material in large volumes
e
5. ___________ is a vital link between customers and product design. a) Engineering b) Accounting c) The Internet d) Operations e) Marketing
a
50. Which of the following is a disadvantage of automation? a) inflexibility for product and process changes b) inconsistency of products c) inefficiency for producing large volumes d) harder to monitor quality e) frequent interruptions of production
b
51. What is a small battery-driven truck that is not operated by a human and moves material from location to location? a) CAD b) AGV c) AS/RS d) FMS e) CAM
c
52. A technology which uses sensor tags to monitor perishable products is: a) FMS b) CAD c) RFID d) CAM e) RF
c
53. What is an automated material handling system that basically is an automated warehouse? a) CAD b) AGV c) AS/RS d) FMS e) CAM
b
54. What is CAD short for? a) conceptually appropriate design b) computer aided design c) commercial applications design d) competitive advantage design e) completely automated design
b
7. Which of the following is true regarding the relative predictability of the cycle of new product introductions? a) new car models are predictable, but new fashion and new skin care products are not b) new car models and new fashion are predictable, but new skin care products are not c) new car models, new fashion, and new skin care products are all predictable d) new car models, new fashion, and new skin care products are all unpredictable e) new fashion and new skin care products are predictable, but new car models are not
d
70. Why is a process flowchart useful? a) for designing a product b) for determining where the strengths are in a process c) for determining where the weaknesses are in a process d) for seeing the totality of the operation and for identifying potential problem areas e) for benchmarking against other processes
T
72. One source of new product ideas is a product manager.
T
73. To remain competitive, companies must be innovative and bring out new products regularly.
T
74. Analyzing customer preferences is an ongoing process.
T
77. Buying a competitor's new product and studying its design features by disassembling it and analyzing its parts and features is reverse engineering.
a
8. Lands' End is a well-known benchmarking target because of its __________ . a) catalog business b) supply chain management c) success at resolving complaints d) labor relations e) environmental policies
T
81. Design standardization refers to the use of common and interchangeable parts.
T
84. Remanufacturing is the concept of using components of old products in the production of new ones.
T
86. A common difference between intermittent and repetitive operations is degree of product standardization.
T
87. Intermittent operations group their resources based on similar operations or functions.
T
88. The make-to-stock product and service strategy has the shortest delivery lead time among the possible strategies, but the customer has no involvement in product design.
d
9. In 1997, who performed a large benchmarking study for IBM? a) Boston Consulting Group b) Anderson Consulting c) i2 Technologies d) Mercer Management Consultants e) Manugistics
T
90. Outsourcing instead of pursuing vertical integration is often a good strategic option for a firm using an intermittent operation.
T
92. Triangle symbols are used in a process flowchart to represent decision points?
line processes
A type of process used to produce a large volume of a standardized product. -What type of process is designed to produce a large volume of a standardized product for mass production, such as automobiles?
Batch Process
Batch processes (part of intermittent) are used to produce small quantities of products in groups or batches based on customer orders or product specifications. They are also known as job shops.
The quantity where revenue equals total costs
In break-even analysis, is the break-even point
are used to produce a variety of products with different processing requirements in lower volumes. Examples are an auto body shop, a tool and die shop, or a healthcare facility, specialty cake shop
Intermittent operations
The Continuum of Process Types
Interum is project and batch// Repetitive is line and continuos
Which type of process would be least likely to produce goods for inventory rather than for a specific customer request?
Project
intermittent
Which type of operation is used to produce many different products with varying process requirements in lower volumes?
repetitive operations
are used to produce one or a few standardized products in high volume. Examples are a typical assembly line, cafeteria, or automatic car wash.
The classes that you are taking at the university use a ___________ process.
batch
Fixed costs (overhead)
costs that do not vary with production or sales level eg. land rent, overhead, taxes, and insurance
variable costs
costs that vary with the quantity of output produced
