Operations And Supply Chain Management 14 Edition By Jacobs – Test Bank

 

 

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Sample Test

Chapter 03

Design of Products and Services

 

True / False Questions

1.	Concept development is one of the typical phases of product development. True    False

 

2.	Early prototypes of a new product, using the same geometry and material processes as the production versions, are usually constructed during the concept development phase of the product development process. True    False

 

3.	A key decision point in the generic development process during “Phase 4: Testing and Refinement” is concept approval. True    False

 

4.	A key decision point in the generic development process during “Phase 1: Concept Development” is project approval. True    False

 

5.	The generic development process outlined in the textbook is followed by many, if not most, of the firms in the Fortune 500. True    False

 

6.	Target customers are specified during “Phase 0: Planning” of the generic product development process. True    False

 

7.	The main purpose of concurrent engineering is to improve product quality. True    False

 

8.	Quality function deployment is an engineering analysis whose purpose is to simplify products and processes. True    False

 

9.	Quality function deployment involves listening to customers to determine the characteristics of a superior product. True    False

 

10.	Designing a new product for aesthetics and for the user is generally termed industrial design. True    False

 

11.	One of the methodologies that can aid in designing a new product for customers is a house of quality matrix. True    False

 

12.	Value analysis/value engineering has as its objective to increase product quality and reduce costs. True    False

 

13.	DFMA stands for design for manufacturing and assembly. True    False

 

14.	In a concurrent engineering approach to product design and development, an integration team ensures that various parts of the product are compatible with the needs of the target customer. True    False

 

15.	A key tool of a quality function deployment team is the house of quality matrix. True    False

 

16.	A contract manufacturer is an organization capable of manufacturing and/or purchasing all of the components needed to produce a finished product or device. True    False

 

17.	Specialized design firms tend to have highly developed processes that support the needs of particular industries. True    False

 

18.	Core competencies are those things that everyone in the firm must be able to do well. True    False

 

19.	A competency is not core if it is easy for competitors to imitate. True    False

 

20.	One goal of having a core competency is to do something better than anyone else. True    False

 

21.	The conclusion of the product development process is when the product is withdrawn from the market. True    False

 

22.	In the generic product development process, phase 2 (system-level design) begins with corporate strategy and incorporates market objectives. True    False

 

23.	In the generic product development process, collecting customer needs is accomplished during phase 0 (planning). True    False

 

24.	Most purchasers of electronic products cannot fully operate them and use only a small number of the available features. True    False

 

25.	The “house of quality” matrix is a technique that relates customer requirements to concrete operating or engineering goals. True    False

 

26.	One of the major benefits of DFMA is that products are designed that customers will want. True    False

 

27.	Incorporation of environmental considerations in the design and development of products or services is called ecodesign. True    False

 

28.	Ecodesign replaces one or more of the other requirements considered in the design process. True    False

 

29.	Because ecodesigned products are innovative and have better environmental performance, they can be of a slightly lesser quality than the market standard. True    False

 

30.	The ecodesign approach focuses exclusively on the design and commercial launch phases of the product’s life cycle. True    False

 

 

Multiple Choice Questions

31.	Which of the following is not a typical phases of product development? A. Concept development   B. Value engineering   C. System-level design   D. Testing and refinement   E. Production/ramp-up

 

32.	Which of the following is a characteristic of concurrent engineering? A. Integrated computer-assisted design   B. Using automated guided vehicles   C. Separate development teams working at once   D. Having an excellent forecasting system   E. The design-build-test cycle

 

33.	Which of the following is primarily used to help design products that will connect product attributes with customer desires? A. Phase 0: Planning   B. House of quality matrix   C. Value analysis/value engineering   D. Concurrent engineering   E. System-level design

 

34.

Design for manufacturing and assembly delivers product improvements by emphasizing which of the following? A. Reducing product quality during the assembly process   B. Simplification of the product by reducing the number of separate parts   C. Reducing equipment in the production process   D. Designing products so they can be manufactured by a virtual factory   E. Designing products that customers will want

 

35.	Which of the following is a time-to-market performance measure used in judging product development performance? A. Frequency of new-product introductions   B. Product reliability   C. Customer loyalty   D. Yield   E. Value analysis

 

36.	What dimension of competitiveness does time-to-market performance in product design and process selection affect? A. Engineering hours per project   B. The cost of ongoing service   C. Responsiveness to customer needs   D. Aesthetics of design   E. None of these

 

37.	What dimension of competitiveness does quality in product design affect? A. Engineering hours per project   B. The cost of ongoing service   C. Responsiveness to customer needs   D. Aesthetics of design   E. None of these

 

38.

A reason that firms must develop more new products than ever is which of the following? A. Product life cycles are shorter   B. Commitments to joint venture partners   C. They are replacing old customers with new ones   D. To amortize heavy investments in development labs   E. The increased difficulty of defending patents and trade names

 

39.	Concept development assumes a proven technology in which variant of the generic product development process? A. Technology-push products   B. Quick-build products   C. Complex systems   D. Platform products   E. Process-intensive products

 

40.	Similarity of projects allows for a streamlined and highly structured development process in which variant of the generic product development process? A. Technology-push products   B. Customized products   C. Complex systems   D. Quick-build products   E. Process-intensive products

 

41.

Sensitivity analysis of the base-case financial model is a useful tool for which of the following reasons? A. To determine how long the development process can profitably last   B. To understand how many technical people are needed to make the project a success   C. To help understand the basic trade-offs of resources committed and cash received   D. To identify the necessary product launch date   E. To set marketing and sales budgets

 

42.

Advocates of financial modeling of product design projects argue that: A. Financial analysis focuses on measurable quantities only.   B. Financial analysis brings discipline and control to the product development process.   C. Sufficiently rigorous financial analysis can accurately forecast the product’s profit potential.   D. Financial analysis is as solid as the assumptions that go into the model.   E. Financial analysis nurtures innovation and creativity.

 

43.	System integration and validation are an important step in which variant of the generic product development process? A. Technology-push products   B. Customized products   C. Complex systems   D. Quick-build products   E. Process-intensive products

 

44.	Consumer electronics is an example of a product developed in which variant of the generic product development process? A. Technology-push products   B. Customized products   C. Platform products   D. Quick-build products   E. Process-intensive products

 

45.	The most basic categories of cash flow for a typical new product do not include: A. Depreciation   B. Ramp-up cost   C. Development cost   D. Sales revenue   E. Marketing cost

 

46.	Economic analysis of product development projects is useful in which of the following circumstances? A. Factory location   B. Distribution decisions   C. Go/no-go milestones   D. Demand estimation   E. Pricing

 

47.	Economic analysis of product development projects must evaluate which of the following? A. Planned profitability of the product   B. Expected market share to be attained   C. Net present value of profits   D. Timing and amount of net cash flow   E. Demand elasticity of the product

 

48.

Quality function deployment (QFD): A. Is a manufacturing function aimed at lowering cost by reducing the portion of rejected units.   B. Fills the house of quality matrix with the designer’s aspirations for the product.   C. Starts with studying and listening to customers.   D. Is a place where the quality assurance function is housed.   E. Is another term for value engineering.

 

49.

The aim of quality function deployment (QFD) is: A. To facilitate house of quality analysis   B. To provide value analysis/value engineering input   C. To integrate design for manufacturing and assembly (DFMA)   D. To facilitate better cooperation between business functions   E. To get the voice of the customer into the design of a product

 

50.

The purpose of value analysis/value engineering (VA/VE) is to: A. Simplify products and processes   B. Improve the value that customers find in existing products   C. Relate the customer’s needs to technical specifications   D. Meet budgets and improve the results of financial models   E. Facilitate better cooperation between business functions

 

 

Fill in the Blank Questions

51.

What are the six phases of the generic product development process? 1. ______________________________ 2. ______________________________ 3. ______________________________ 4. ______________________________ 5. ______________________________ 6. ______________________________ ________________________________________

 

52.

What seven variants of the generic product development process are discussed in the text? 1. ______________________________ 2. ______________________________ 3. ______________________________ 4. ______________________________ 5. ______________________________ 6. ______________________________ 7. ______________________________ ________________________________________

 

53.	What is the name for a matrix that helps a product design team translate customer requirements into operating and engineering goals? _______________________________________ ________________________________________

 

54.	In product development, what is the analysis called that works toward simplifying products and processes to achieve equivalent or better performance at lower cost? ________________________________________ ________________________________________

 

55.	What are the three characteristics of a core competency? 1. _____________________________ 2. _____________________________ 3. _____________________________ ________________________________________

 

 

Essay Questions

56.	Describe what rapid prototyping is and where it is particularly useful in the development process.

 

57.	Describe what concurrent engineering teams are and what problems they address.

 

58.	How might the generic product development process described in the text be different if developing a process-intensive product?

 

 

Chapter 03 Design of Products and Services AnswerKey
 

True / False Questions

1.

Concept development is one of the typical phases of product development. TRUE Our generic product development process consists of six phases, as illustrated in Exhibit 3.1. The process begins with a planning phase, which is the link to advanced research and technology development activities. The output of the planning phase is the project’s mission statement, which is the input required to begin the concept development phase.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Design Process

 

2.

Early prototypes of a new product, using the same geometry and material processes as the production versions, are usually constructed during the concept development phase of the product development process. FALSE Phase 4: Testing and refinement. The testing and refinement phase involves the construction and evaluation of multiple preproduction versions of the product. Early prototypes are usually built with parts with the same geometry and material properties as the production version of the product but not necessarily fabricated with the actual processes to be used in production.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Design Process

 

3.	A key decision point in the generic development process during “Phase 4: Testing and Refinement” is concept approval. FALSE Concept approval is not part of the generic development process discussed in the text.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Development Process

 

4.

A key decision point in the generic development process during “Phase 1: Concept Development” is project approval. FALSE Phase 1: Concept Development. In this phase, the needs of the target market are identified, alternative product concepts are generated and evaluated, and one or more concepts are selected for further development and testing. A concept is a description of the form, function, and features of a product and is usually accompanied by a set of specifications, an analysis of competitive products, and an economic justification of the project. Project approval is not mentioned.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Development Process

 

5.

The generic development process outlined in the textbook is followed by many, if not most, of the firms in the Fortune 500. FALSE Some firms define and follow a precise and detailed development process, while others may not even be able to describe their processes. Every organization employs a process that is different from that of every other organization; in fact, the same organization may follow different processes for different product groups.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Development Process

 

6.

Target customers are specified during “Phase 0: Planning” of the generic product development process. TRUE Phase 0: Planning. The planning activity is often referred to as “phase zero” because it precedes the project approval and launch of the actual product development process. This phase begins with corporate strategy and includes assessment of technology developments and market objectives. The output of the planning phase is the project mission statement, which specifies the target market for the product, business goals, key assumptions, and constraints.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Development Process

 

7.

The main purpose of concurrent engineering is to improve product quality. FALSE Traditionally, the attitude of designers has been “We design it; you build it.” This has now been termed the “over-the-wall approach,” where the designer is sitting on one side of the wall and throwing the design over the wall to the manufacturing engineers. These manufacturing engineers then have to deal with the problems that arise because they were not involved in the design effort. One way to overcome this problem is to consult the manufacturing engineers during the design stage. The resulting teamwork avoids many of the problems that might arise. These concurrent engineering teams require analysis tools to help them study proposed designs and evaluate them from the point of view of manufacturing difficulty and cost.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: Designing Products for Manufacture and Assembly

 

8.	Quality function deployment is an engineering analysis whose purpose is to simplify products and processes. FALSE One approach to getting the voice of the customer into the design specification of a product is quality function deployment (QFD).

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Designing for the Customer

 

9.	Quality function deployment involves listening to customers to determine the characteristics of a superior product. TRUE The QFD process begins with studying and listening to customers to determine the characteristics of a superior product.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Designing for the Customer

 

10.	Designing a new product for aesthetics and for the user is generally termed industrial design. TRUE Designing for aesthetics and for the user is generally termed industrial design.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Designing for the Customer

 

11.

One of the methodologies that can aid in designing a new product for customers is a house of quality matrix. TRUE Customer requirement information forms the basis for a matrix called the house of quality. By building a house of quality matrix, the cross-functional QFD team can use customer feedback to make engineering, marketing, and design decisions. The matrix helps the team translate customer requirements into concrete operating or engineering goals. However, the most important benefit of the house of quality is that it helps the team focus on building a product that satisfies customers.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-03 Discuss how stereotyping; attribution; self-fulfilling prophecy; halo; falseconsensus primacy; and recency influence the perceptual process. Topic: Designing for the Customer

 

12.	Value analysis/value engineering has as its objective to increase product quality and reduce costs. FALSE The purpose of value analysis/value engineering is to simplify products and processes.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Designing for the Customer

 

13.	DFMA stands for design for manufacturing and assembly. TRUE How does design for manufacturing and assembly (DFMA) work?

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Designing Products for Manufacture and Assembly

 

14.

In a concurrent engineering approach to product design and development, an integration team ensures that various parts of the product are compatible with the needs of the target customer. FALSE Detail design of the components is a highly parallel process, often referred to as concurrent engineering, with many separate development teams working at once.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Development Process

 

15.

A key tool of a quality function deployment team is the house of quality matrix. TRUE In quality function deployment (QFD), one of the major steps is to determine the product characteristics that are important to the consumer and to evaluate the firm’s product in relation to others. The end result is a better understanding and focus on product characteristics that require improvement, Using this information as the basis, a house of quality matrix is constructed which may be used to improve the product design.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Designing Products for Manufacture and Assembly

 

16.

A contract manufacturer is an organization capable of manufacturing and/or purchasing all of the components needed to produce a finished product or device. TRUE Companies that specialize in designing and manufacturing products for other companies have become very successful. The producing companies are called contract manufacturers.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Design Process

 

17.	Specialized design firms tend to have highly developed processes that support the needs of particular industries. TRUE Companies that specialize in the design of products have highly developed processes to support the activities needed for an industry.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Design Process

 

18.	Core competencies are those things that everyone in the firm must be able to do well. FALSE A company’s core competency is the one thing that it can do better than its competitors.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Design Process

 

19.	A competency is not core if it is easy for competitors to imitate. TRUE A core competency must have three characteristics: 3. It is hard for competitors to imitate.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Design Process

 

20.	One goal of having a core competency is to do something better than anyone else. FALSE The goal is to have a core competency that yields a long-term competitive advantage to the company.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Design Process

 

21.	The conclusion of the product development process is when the product is withdrawn from the market. FALSE The conclusion of the product development process is the product launch.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Development Process

 

22.	In the generic product development process, phase 2 (system-level design) begins with corporate strategy and incorporates market objectives. FALSE Phase 0: Planning. This phase begins with corporate strategy and includes assessment of technology developments and market objectives.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Development Process

 

23.	In the generic product development process, collecting customer needs is accomplished during phase 0 (planning). FALSE Phase 1: Concept Development. In this phase, the needs of the target market are identified.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Development Process

 

24.

Most purchasers of electronic products cannot fully operate them and use only a small number of the available features. TRUE Most purchasers of electronic products cannot fully operate them and use only a small number of the available features. This has occurred because computer chips are inexpensive and adding more controls has negligible cost.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Designing for the Customer

 

25.

The “house of quality” matrix is a technique that relates customer requirements to concrete operating or engineering goals. TRUE By building a house of quality matrix, the cross-functional QFD team can use customer feedback to make engineering, marketing, and design decisions. The matrix helps the team translate customer requirements into concrete operating or engineering goals.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: The Product Development Process

 

26.

One of the major benefits of DFMA is that products are designed that customers will want. FALSE The greatest improvements related to DFMA arise from simplification of the product by reducing the number of separate parts. This has little or nothing to do with making the products more attractive to customers except in the sense that the cost of manufacture will be less.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Designing Products for Manufacture and Assembly

 

27.	Incorporation of environmental considerations in the design and development of products or services is called ecodesign. TRUE Ecodesign is the incorporation of environmental considerations in the design and development of products or services.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Ecodesign

 

28.	Ecodesign replaces one or more of the other requirements considered in the design process. FALSE Ecodesign is an extension of the other important requirements considered in the design process such as quality, costs, manufacturability, functionality, durability, ergonomics, and aesthetics.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Ecodesign

 

29.	Because ecodesigned products are innovative and have better environmental performance, they can be of a slightly lesser quality than the market standard. FALSE Ecodesigned products are innovative, have better environmental performance, and are of a quality at least equal to the market standard.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Ecodesign

 

30.	The ecodesign approach focuses exclusively on the design and commercial launch phases of the product’s life cycle. FALSE The whole life cycle of the product or service is considered.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Ecodesign

 

Multiple Choice Questions

31.

Which of the following is not a typical phases of product development? A. Concept development   B. Value engineering   C. System-level design   D. Testing and refinement   E. Production/ramp-up The six phases of the generic development process are: Phase 0: Planning Phase 1: Concept development Phase 2: System-level design Phase 3: Design detail Phase 4: Testing and refinement Phase 5: Production ramp-up

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Development Process

 

32.

Which of the following is a characteristic of concurrent engineering? A. Integrated computer-assisted design   B. Using automated guided vehicles   C. Separate development teams working at once   D. Having an excellent forecasting system   E. The design-build-test cycle Detail design of the components is a highly parallel process, often referred to as concurrent engineering, with many separate development teams working at once.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Development Process

 

33.

Which of the following is primarily used to help design products that will connect product attributes with customer desires? A. Phase 0: Planning   B. House of quality matrix   C. Value analysis/value engineering   D. Concurrent engineering   E. System-level design The house of quality matrix helps translate customer requirements into concrete operating or engineering goals. However, the most important benefit of the house of quality is that it helps focus on building a product that satisfies customers.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Designing for the Customer

 

34.

Design for manufacturing and assembly delivers product improvements by emphasizing which of the following? A. Reducing product quality during the assembly process   B. Simplification of the product by reducing the number of separate parts   C. Reducing equipment in the production process   D. Designing products so they can be manufactured by a virtual factory   E. Designing products that customers will want The greatest improvements related to DFMA arise from simplification of the product by reducing the number of separate parts.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Designing Products for Manufacture and Assembly

 

35.	Which of the following is a time-to-market performance measure used in judging product development performance? A. Frequency of new-product introductions   B. Product reliability   C. Customer loyalty   D. Yield   E. Value analysis See Exhibit 3.11.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-05 Outline the main features of a global mindset and justify its usefulness to employees and organizations. Topic: Measuring Product Development Performance

 

36.	What dimension of competitiveness does time-to-market performance in product design and process selection affect? A. Engineering hours per project   B. The cost of ongoing service   C. Responsiveness to customer needs   D. Aesthetics of design   E. None of these See Exhibit 3.11.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-05 Outline the main features of a global mindset and justify its usefulness to employees and organizations. Topic: Measuring Product Development Performance

 

37.	What dimension of competitiveness does quality in product design affect? A. Engineering hours per project   B. The cost of ongoing service   C. Responsiveness to customer needs   D. Aesthetics of design   E. None of these See Exhibit 3.11.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-05 Outline the main features of a global mindset and justify its usefulness to employees and organizations. Topic: Measuring Product Development Performance

 

38.

A reason that firms must develop more new products than ever is which of the following? A. Product life cycles are shorter   B. Commitments to joint venture partners   C. They are replacing old customers with new ones   D. To amortize heavy investments in development labs   E. The increased difficulty of defending patents and trade names Because the number of new products has increased while model lives and life cycles have shrunk, firms must mount more development projects than previously, and these projects must use substantially fewer resources per project.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Measuring Product Development Performance

 

39.	Concept development assumes a proven technology in which variant of the generic product development process? A. Technology-push products   B. Quick-build products   C. Complex systems   D. Platform products   E. Process-intensive products See Exhibit 3.2.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Development Process

 

40.	Similarity of projects allows for a streamlined and highly structured development process in which variant of the generic product development process? A. Technology-push products   B. Customized products   C. Complex systems   D. Quick-build products   E. Process-intensive products See Exhibit 3.2.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Development Process

 

41.

Sensitivity analysis of the base-case financial model is a useful tool for which of the following reasons? A. To determine how long the development process can profitably last   B. To understand how many technical people are needed to make the project a success   C. To help understand the basic trade-offs of resources committed and cash received   D. To identify the necessary product launch date   E. To set marketing and sales budgets Sensitivity analysis uses the financial model to answer “what if” questions by calculating the change in NPV corresponding to a change in the factors included in the model.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-04 Discuss three ways to improve perceptions; with specific application to organizational situations. Topic: Measuring Product Development Performance

 

42.

Advocates of financial modeling of product design projects argue that: A. Financial analysis focuses on measurable quantities only.   B. Financial analysis brings discipline and control to the product development process.   C. Sufficiently rigorous financial analysis can accurately forecast the product’s profit potential.   D. Financial analysis is as solid as the assumptions that go into the model.   E. Financial analysis nurtures innovation and creativity. Financial modeling and sensitivity analysis are powerful tools for supporting product development decisions, but these techniques have important limitations. Many argue that rigorous financial analyses are required to bring discipline and control to the product development process. Others argue that financial analysis only focuses on measurable quantities and that it is often extremely difficult to predict these values accurately.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-04 Discuss three ways to improve perceptions; with specific application to organizational situations. Topic: Measuring Product Development Performance

 

43.	System integration and validation are an important step in which variant of the generic product development process? A. Technology-push products   B. Customized products   C. Complex systems   D. Quick-build products   E. Process-intensive products See Exhibit 3.2.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Development Process

 

44.	Consumer electronics is an example of a product developed in which variant of the generic product development process? A. Technology-push products   B. Customized products   C. Platform products   D. Quick-build products   E. Process-intensive products See Exhibit 3.2.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Development Process

 

45.

The most basic categories of cash flow for a typical new product do not include: A. Depreciation   B. Ramp-up cost   C. Development cost   D. Sales revenue   E. Marketing cost The most basic categories of cash flow for a typical new-product-development project are: • Development cost • Ramp-up cost • Marketing and support cost • Production cost • Sales revenue

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Discuss three ways to improve perceptions; with specific application to organizational situations. Topic: Economic Analysis of Product Development Projects

 

46.

Economic analysis of product development projects is useful in which of the following circumstances? A. Factory location   B. Distribution decisions   C. Go/no-go milestones   D. Demand estimation   E. Pricing Economic analysis is useful in at least two different circumstances: 1. Go/no-go milestones. 2. Operational design and development decisions.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-04 Discuss three ways to improve perceptions; with specific application to organizational situations. Topic: Economic Analysis of Product Development Projects

 

47.

Economic analysis of product development projects must evaluate which of the following? A. Planned profitability of the product   B. Expected market share to be attained   C. Net present value of profits   D. Timing and amount of net cash flow   E. Demand elasticity of the product Computing the NPV requires that the net cash flow for each period be determined.

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-04 Discuss three ways to improve perceptions; with specific application to organizational situations. Topic: Economic Analysis of Product Development Projects

 

48.

Quality function deployment (QFD): A. Is a manufacturing function aimed at lowering cost by reducing the portion of rejected units.   B. Fills the house of quality matrix with the designer’s aspirations for the product.   C. Starts with studying and listening to customers.   D. Is a place where the quality assurance function is housed.   E. Is another term for value engineering. The QFD process starts with studying and listening to customers to determine the characteristics of a superior product.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Designing for the Customer

 

49.

The aim of quality function deployment (QFD) is: A. To facilitate house of quality analysis   B. To provide value analysis/value engineering input   C. To integrate design for manufacturing and assembly (DFMA)   D. To facilitate better cooperation between business functions   E. To get the voice of the customer into the design of a product One approach to getting the voice of the customer into the design specification of a product is quality function deployment (QFD).

 

AACSB: Analytic Blooms: Remember Difficulty: 2 Medium Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Designing for the Customer

 

50.

The purpose of value analysis/value engineering (VA/VE) is to: A. Simplify products and processes   B. Improve the value that customers find in existing products   C. Relate the customer’s needs to technical specifications   D. Meet budgets and improve the results of financial models   E. Facilitate better cooperation between business functions The purpose of value analysis/value engineering (VA/VE) is to simplify products and processes.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Designing for the Customer

 

Fill in the Blank Questions

51.

What are the six phases of the generic product development process? 1. ______________________________ 2. ______________________________ 3. ______________________________ 4. ______________________________ 5. ______________________________ 6. ______________________________ Phase 0: Planning; Phase 1: Concept development; Phase 2: System level design; Phase 3: Design detail; Phase 4: Testing and refinement; Phase 5: Production ramp-up The six phases of the generic development process are: Phase 0: Planning Phase 1: Concept development Phase 2: System level design Phase 3: Design detail Phase 4: Testing and refinement Phase 5: Production ramp-up

 

AACSB: Analytic Blooms: Remember Difficulty: 3 Hard Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Development Process

 

52.

What seven variants of the generic product development process are discussed in the text? 1. ______________________________ 2. ______________________________ 3. ______________________________ 4. ______________________________ 5. ______________________________ 6. ______________________________ 7. ______________________________ 1. technology-push; 2. platform; 3. process-intensive; 4. customized; 5. high-risk; 6. quick-build; 7. complex systems In addition to the generic market-pull processes, several variants are common and correspond to the following: technology-push products, platform products, process-intensive products, customized products, high-risk products, quick-build products, and complex systems.

 

AACSB: Analytic Blooms: Remember Difficulty: 3 Hard Learning Objective: 03-01 Describe the elements of self concept and explain how they affect an individual’s behavior and well-being. Topic: The Product Development Process

 

53.

What is the name for a matrix that helps a product design team translate customer requirements into operating and engineering goals? _______________________________________ house of quality By building a house of quality matrix, the cross-functional QFD team can use customer feedback to make engineering, marketing, and design decisions.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Designing for the Customer

 

54.

In product development, what is the analysis called that works toward simplifying products and processes to achieve equivalent or better performance at lower cost? ________________________________________ value analysis/value engineering (VA/VE) The purpose of value analysis/value engineering (VA/VE) is to simplify products and processes. Its objective is to achieve equivalent or better performance at a lower cost while maintaining all functional requirements defined by the customer.

 

AACSB: Analytic Blooms: Remember Difficulty: 1 Easy Learning Objective: 03-02 Outline the perceptual process and discuss the effects of categorical thinking and mental models in that process. Topic: Designing for the Customer