OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN DECISIONS & CASES 7Th Edition By Roger – Test Bank
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Sample Test
Chapter 3 Product Design Answer Key
Multiple-Choice
Questions
1. The
market-pull view of new product innovation is to
A.”pull” the products into the market as fast as possible.
B. develop
products that the company can sell, based on customer needs.
C. market whatever the company makes best.
D. make new products appealing through innovative packaging.
LO: 3.1
Topic: Strategies for New Product Development
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: Market pull is
described in the text as a firm making what it can sell.
2.
Which of the following is NOT part of the new product
development process?
A. Concept development
B. Product design
C. Development
of the marketing strategy
D. Pilot production/testing
LO: 3.2
Topic: New Product Development Process
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: The three
typical phases are concept development, product design, and pilot
production/testing.
3. An
example of a prototype is
A.a military aircraft.
B. the personal computer.
C. a Broadway play.
D. the
original McDonald’s restaurant.
LO: 3.2
Topic: New Product Development Process
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: A, B, and C
would be considered not prototypes but production output. An original
restaurant, especially one later developed into a chain, would be considered a
prototype.
4. Process
design
A.is the way new product ideas are developed.
B. is the next stage after product design.
C. is considered less important to a company than product design.
D. should
occur at the same time as product design.
LO: 3.2
Topic: New Product Development Process
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Process design
should be taking place simultaneously with product design and is of equal
importance because the process will be required to produce the product.
5. A
restaurant offers a “customer’s choice” sandwich for which the customer
specifies the bread, meat, cheese, and topping he or she wants. There are three
types of bread, three types of meat, three types of cheese, and four types of topping.
How many different sandwiches can the restaurant make?
A.4
B. 27
C. 108
D. 162
LO: 3.6
Topic: Modular Design
Difficulty: 2 Moderate
AACSB: Analytic
Bloom’s: Apply
Feedback: The number of
combinations is the product of multiplying the number of choices together (3 x
3 x 3 x 4 = 108).
6. Modular
design involves
A.dividing the production process into separate work units.
B. dividing the products into product lines.
C. dividing
the products into their similar components.
D. dividing the products into different cost categories.
LO: 3.6
Topic: Modular Design
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: The core idea of
modular design is to develop a series of basic product components, or modules,
that can be assembled into a wide variety of finished products.
7. Typical
misalignments between product design and operations include
A.technology,
reward systems, and infrastructure.
B. technology, process, and design.
C. technology, culture, and hierarchy.
D. none of the above.
LO: 3.3
Topic: Cross-Functional Product Design
Difficulty: 3 Hard
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Misalignments
can occur in technology, infrastructure, and reward systems, and also in
marketing.
8.
Quality function deployment
A. links
customer requirements to technical specifications.
B. eliminates customer attributes.
C. depends only on engineering characteristics.
D. assumes that interactions between engineering characteristics are
unimportant.
LO: 3.5
Topic: Quality Function Deployment
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: QFD is a tool
for linking customer requirements, as defined by the customer, to technical
requirements.
9. Quality
function deployment includes which of the following? (1) Relative importance of
customer attributes, (2) tolerance stack-up, (3) a comparison to the
competitor’s product, (4) engineering characteristics, (5) customer
perceptions, (6) customer attributes, (7) variation around a target, (8) value
analysis.
A.3, 5, 6, 7, 8
B. 1,
3, 4, 5, 6
C. 1, 2, 4, 6, 7
D. 2, 5, 6, 7, 8
LO: 3.5
Topic: Quality Function Deployment
Difficulty: 3 Hard
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: From Figures 3.4
and 3.5, the components of QFD include the relative importance of customer
attributes (chimney), a comparison to the competitor’s product (right side and
bottom), engineering characteristics (top), customer perceptions (right side),
and customer attributes (left side).
10.
The concept that a product should not only fit the market needs
but have a technical advantage as well is known as the
A.market pull approach to new product introduction.
B. technology push approach to new product introduction.
C. interfunctional
view to new product introduction.
D. dual approach to new product introduction.
LO: 3.1
Topic: Strategies for New Product Development
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: The
interfunctional view holds that the product should not only fit the market
needs but have a technical advantage as well.
11.
In which phase of the new product design process should
considerations about trade-offs among product cost, quality, and schedule be
made?
A.Concept development
B. Product
design
C. Preliminary process design
D. Pilot production/testing
LO: 3.1
Topic: Strategies for New Product Development
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Product design
requires consideration of many different trade-offs between product cost,
quality, and schedule.
12.
When marketing, engineering, and operations simultaneously
develop a product, this approach is known as
A.sequential process.
B. traditional approach.
C. concurrent
engineering.
D. none of the above.
LO: 3.3
Topic: Cross-Functional Product Design
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: The concurrent
engineering approach includes these primary functions, and often other
functions, suppliers, and customers.
13.
Quality function deployment
A.is a tool for linking customer requirements to technical specifications.
B. facilitates interfunctional cooperation between marketing, engineering,
and manufacturing.
C. relates engineering characteristics to each other.
D. all
of the above.
LO: 3.5
Topic: Quality Function Deployment
Difficulty: 3 Hard
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: All of the above
are true of QFD.
14.
Product design decisions are strategically important for a
variety of reasons. Which of the following statements concerning the importance
of product design is FALSE?
A.Product design decisions provide firms with an important opportunity to
enhance supply chain collaboration.
B. There is an obvious link between the design of new products and the
long-term success of an organization.
C. Product
design decisions typically account for an insignificant percent of a product’s
postdevelopment production costs.
D. Product design decisions contribute to the attainment of strategic
objectives, enabling a firm to maintain a competitive advantage.
LO: 3.1
Topic: Phases of New Product Development
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Even small
changes in product design can account for a substantial percent of
postdevelopment production cost (i.e., a poor design can result in high
production cost).
15.
There are three fundamentally different ways to introduce new
products. Which of the following is NOT a new product introduction approach?
A.Capacity
choice
B. Market pull
C. Technology push
D. Interfunctional view
LO: 3.1
Topic: Strategies for New Product Development
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: The three
approaches are market pull, technology push, and the interfunctional view.
16.
The common first phase of product development focuses on concept
development. Which of the following is NOT an activity of concept development?
A.Generation and evaluation of several competing concepts.
B. Prototype
building and testing.
C. Selection of “best” concept.
D. Top management approval to proceed to product development phase two.
LO: 3.2
Topic: New Product Development Process
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Prototype
building and testing are part of the third phase, pilot production/testing.
17.
The second common phase of product development focuses on
product design. Which of the following is NOT typically an activity of the
product design?
A.Physically designing the product, including consideration of trade-offs among
product cost, quality, and schedule.
B. Pilot product testing by way of virtual prototype computer simulation.
C. Management commitment of project funding to build product.
D. Transmission
of computer images and databases to production.
LO: 3.2
Topic: New Product Development Process
Difficulty: 3 Hard
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: A, B, and C are
typical of product design, but D would occur during the pilot
production/testing phase.
18.
The third common phase of product development focuses on pilot
production and testing. Which of the following is NOT an activity of the pilot
production and testing?
A.Prototype testing to ensure performance specifications are met.
B. Finalization of process design.
C. Introduction
of full-scale production and market introduction.
D. Information package finalization.
LO: 3.2
Topic: New Product Development Process
Difficulty: 3 Hard
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Full scale
production and introduction to the market would occur after the pilot
production/testing phase is complete.
19.
Correctly complete the following sentence. Concurrent
engineering is
A.a sequential attempt among functional disciplines to design new products.
B. a
cross-functional approach to introduce new products to market.
C. an approach to new product introduction that requires participation of
one single functional discipline at a time, thereby reducing new product development
costs.
D. an approach to new product development that has resulted in a large number
of prototype build and testing iterations.
LO: 3.3
Topic: Cross-Functional Product Design
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Concurrent
engineering is not sequential, but facilitates simultaneous involvement of key
functions. Its purpose is not to produce a large number of prototypes.
20.
Which of the following statements concerning quality function
deployment (QFD) is FALSE?
A.It facilitates including the “voice of the customer” in product design
activities.
B. Mitsubishi introduced it in 1972.
C. QFD
is a tool used to monitor the sampled output of high-volume operations
continuously to ensure products continually meet technical design
specifications during long production runs.
D. QFD promotes interfunctional collaboration.
LO: 3.5
Topic: Quality Function Deployment
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: QFD is not a
statistical tool of the type that would be used to monitor sampled output for
conformance to specifications.
21.
Which of the following best describes the utility of the “roof”
in the quality function deployment (QFD) matrix?
A.The roof relates the customer attributes (CA) to the engineering
characteristics (EC).
22.
The roof compares engineering characteristics (EC), which
enables the study of any trade-offs among the EC.
C.The roof provides the relative importance of the customer attributes (CA).
D. The roof provides a competitive evaluation of the engineering
characteristics (EC).
LO: 3.5
Topic: Quality Function Deployment
Difficulty: 3 Hard
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: The roof shows
how ECs relate to each other and highlight trade-offs required (see Figure
3.5).
22.
The Knee-Hugger Jeans Company makes designer jeans in six colors
under a make-to-stock approach. Customers have expressed the desire to acquire
these jeans in three different styles: regular, slim, and relaxed fit; with and
without distressed tears in the fabric; and with one of four cuts for the pants
leg: boot cut, bell-bottom cut, flared cut, or regular cut. How many different
combinations of unique end products would this company have to inventory?
A.18
B. 36
C. 144
D. 160
LO: 3.6
Topic: Modular Design
Difficulty: 2 Moderate
AACSB: Analytic
Bloom’s: Apply
Feedback: The number of
possible combinations is the product of the number of option choices multiplied
together (6 x 3 x 2 x 4 = 144).
23.
According to the text, which of the ways to introduce new
products is “most appealing” and “most difficult to implement”
A.Interfunctional
view
B. Technology push
C. Market pull
D. Sequential process
LO: 3.1
Topic: Strategies for New Product Development
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: From the text:
“This is the most appealing of the three views but also the most difficult to
implement.”
24.
When considering new product development, which of the following
best describes “technology misalignment”?
A.Marketing creates specifications for a new product that engineering is unable
to design.
B. Operations produces a product that is technologically inferior to a
competitor’s product.
C.
A new product designed by engineering cannot be made by operations.
D. None of the above correctly describes technology misalignment.
LO: 3.3
Topic: Cross-Functional Product Design
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Technology
misalignment occurs when the product designed by engineering cannot be made by
operations.
25.
Which of the following statements best match the concept of
concurrent engineering?
A.An
overlapping approach where all major functions (operations, engineering,
marketing, finance) are involved in the new product design process.
B. A sequential approach where marketing (research) identifies the
customer requirements and then hands it to engineering for design.
C. A sequential approach where engineering designs the product prototype
and then hands it to operations for production.
D. An overlapping approach where marketing and logistics are involved in the
new product development process.
LO: 3.3
Topic: Cross-Functional Product Design
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: Concurrent
engineering is an overlapping (simultaneous) approach including the primary
functions of operations, engineering, marketing, and finance. It is not
described as an approach involving only marketing and logistics.
26.
What element is shown along the left side of the quality
function deployment (QFD) matrix?
A.Analysis of the competitive environment.
B. Target specifications for the new product.
C. Engineering characteristics of the new product.
D. Customer
attributes for the new product.
LO: 3.5
Topic: Quality Function Deployment
Difficulty: 3 Hard
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Customer
attributes are positioned on the left side (see Figure 3.4).
27.
What is shown by the “chimney” in the house of quality (QFD
matrix)?
A.The relationships and trade-offs among the engineering characteristics.
B. A
ranking of the relative importance of each customer attribute.
C. Engineering characteristics of the new product.
D. Customer attributes for the new product.
LO: 3.5
Topic: Quality Function Deployment
Difficulty: 3 Hard
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: The chimney
shows the relative importance of the customer attributes (see Figure 3.4).
28.
According to the text, which of the following is a prerequisite
to mass customization?
A.Modular
design
B. Cross-functional collaboration
C. Quality function deployment (QFD)
D. Concurrent engineering
LO: 3.6
Topic: Modular Design
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Modular design
is described as a prerequisite to mass customization, where the modules enable
more product variety without adding substantial cost.
29.
Quality function deployment (QFD) can be used for which of the
following?
A.Manufactured products such as automobiles, electronics, and appliances.
B. Services such as hair styling and pizza delivery.
C. Both
of the above.
D. Neither of the above.
LO: 3.5
Topic: Quality Function Deployment
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: QFD can be
applied to services in much the same way it is applied to manufacturing.
30.
Which of the following statements concerning the technology push
strategy is FALSE?
A.A
cross-functional team is key to this strategy.
B.Relatively little effort is spent understanding customer needs.
C. It is marketing’s role to create demand for technology push new
products.
D. Products with superior technology have a natural market advantage.
LO: 3.1
Topic: Strategies for New Product Development
Difficulty: 3 Hard
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: B, C, and D are
included in the description of technology push (see Section 3.1). Although a
cross-functional approach may be advisable for a technology push strategy, it
is not the key to this strategy’s success.
31.
Which of the following statements concerning the new product
development (NPD) process is correct?
A.One purpose of the NPD process is to avoid missing any critical issues in
product development.
B. ISO-certified companies are required to have a prescribed NPD process.
C. Most companies have a formal NPD process already in place.
D. All
of the above are correct.
LO: 3.2
Topic: New Product Development Process
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: All of the above
are correct (see Section 3.2).
32.
Which of the following is NOT a typical phase in the development
of new products?
A.Concept development
B. Product development
C. Supplier
development
D. Pilot production and testing
LO: 3.2
Topic: New Product Development Process
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: The three phases
are concept development, product development, and pilot production/testing.
33.
Which of the following statements is correct concerning
concurrent engineering?
A.Marketing, engineering, and operations must put forth equal effort across the
product development timeline.
B. A concurrent approach is like a relay race, with hand-offs from
marketing to engineering, to operations.
C. Projects
with high uncertainty may not be appropriate for concurrent approaches.
D. Concurrent engineering avoids the need for a cross-functional team.
LO: 3.3
Topic: Cross-Functional Product Design
Difficulty: 3 Hard
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Research
indicates concurrent engineering may not be appropriate for high-uncertainty
projects, as it may inhibit creativity.
34.
Which of the following would NOT be a form of new product
development collaboration with customers?
A.Providing them with prototypes or beta versions free, in exchange for their
feedback.
B. Observing customers as they use existing products or services.
C. Simply
asking customer what they want or need.
D. All of the above are recommended forms of collaboration with customers on
new product development.
LO: 3.4
Topic: Supply Chain Collaboration
Difficulty: 3 Hard
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: From the text:
“…designers cannot simply ask the customers what they want or need, since
customers don’t always know.” It is important to ask customers the right
questions—what would help make your lives easier or more productive?
True/False Questions
35.
Product design supports the business strategy.
TRUE
LO: 3.2
Topic: New Product Development Process
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: Product design
follows from the development of the business strategy.
36.
Misalignments between operations and product design can occur in
technology, infrastructure, rewards systems, and marketing.
TRUE
LO: 3.3
Topic: Cross-Functional Product Design
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: Misalignments
can occur in marketing, technology, infrastructure, and reward systems.
37.
The first step in quality function development is to determine
the customer attributes. The second step in QFD is to translate the customer
attributes into target values.
FALSE
LO: 3.5
Topic: Quality Function Deployment
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: The second step
is to translate the customer attributes into engineering characteristics. The
setting of competitive target values is the last step.
38.
Concurrent engineering works much better with product line
extensions or products that serve familiar markets than entirely new products.
TRUE
LO: 3.3
Topic: Cross-Functional Product Design
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Research has
found this to be true because entirely new products call for more creativity,
and concurrent approaches do not lend themselves to that level of
creativity.
39.
Market pull is the best way to introduce new products.
FALSE
LO: 3.1
Topic: Strategies for New Product Development
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: The best product
introduction strategy depends on the firm’s business strategy.
40.
Modular design offers new opportunities for product and process
design.
TRUE
LO: 3.6
Topic: Modular Design
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: Modular design
offers a fundamental way to change thinking about product design, which
includes process design.
41.
ISO 9000 requires that a new product development process be
defined and followed by a company.
TRUE
LO: 3.2
Topic: New Product Development Process
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: It is true that
ISO certification requires that a prescribed NPD process be defined and
followed.
42.
With the technology push view of new product introduction,
technology and the market equally determine which products a firm should make.
FALSE
LO: 3.1
Topic: Strategies for New Product Development
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: Technology push
is one strategy, market pull is another, and the interfunctional view is the
approach that attempts to balance the two.
43.
Ideally, process design occurs immediately after the product is
designed.
FALSE
LO: 3.2
Topic: New Product Development Process
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Ideally, process
design occurs at the same time as product design.
44.
If one doesn’t already exist, a cross-functional team should be
created once management agrees to proceed with the new product development.
TRUE
LO: 3.2
Topic: New Product Development Process
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: At the time of
management approval of the conceptual design, a cross-functional team should be
created.
Essay Questions
45.
Medtronic Inc. designs and manufacturers pacemakers, which are
small metal cases that contain electronic circuitry and a battery to regulate a
person’s heartbeat. Describe the typical process that should be followed by
Medtronic Inc. while developing a new generation of this technology.
LO: 3.2
Topic: New Product Development Process
Difficulty: 3 Hard
AACSB: Reflective
thinking, written communication
Bloom’s: Understand
Feedback: See below.
Concept development phase: This phase is concerned with
generating ideas regarding the product (pacemaker) and evaluating various
alternatives for making this product. For example, decisions regarding the type
of material used, the types of battery used, and so forth are discussed during
this stage. The concept development phase does not involve physical design of
the product, but it consists of a selection process wherein the best
alternative is selected by the company.
Product design phase: This phase is concerned with the development of
engineering specifications for the pacemaker. For example, the size of the
pacemaker, the weight, and other engineering characteristics are designed in
this stage. At the end of this stage, Medtronic Inc. would possibly have sufficient
details in the form of engineering drawings that could be utilized for
prototype development.
Process design phase: This phase should take place simultaneously with the
product design phase, and decisions regarding the type of process (e.g., a
flexible manufacturing system) to be used for manufacturing the pacemaker are
made during this phase.
Pilot production/testing phase: A prototype of the pacemaker is made during
this phase before the beginning of the actual production process. This phase
also involves various testing procedures that validate the functioning of the
pacemaker. Reliability and durability of the product developed are also
verified during this phase. An information package consisting of the pacemaker
specifications and process design training procedures is developed, which
facilitates the transition from the design to the production process.
(Refer to Section 3.2 to augment this answer.)
46.
Explain the information conveyed by various elements in the
house of quality (quality function development or QFD).
LO: 3.5
Topic: Quality Function Deployment
Difficulty: 3 Hard
AACSB: Reflective
thinking, written communication
Bloom’s: Understand
Feedback: See below.
Relative importance: This is represented as the chimney of the
QFD chart and captures the relative importance of the customer attributes (CA)
based on the customer responses.
Competitive comparison: This is present on the right side of the chart and is
used to compare the firm and its competitors based on the customer attributes
(CA).
Engineering characteristics (EC): These are present at the center of the chart
and represent the product design specifications. QFD involves the process of
translating CA into EC.
Relationships between engineering characteristics: These are shown on the roof
of the chart and represent the nature of relationship among ECs (strong
positive, positive, negative, strong negative).
Competitive evaluation: This is shown at the bottom of the QFD chart and
measures the engineering characteristics of the competitor’s product.
Target values: These are present at the bottom of the QFD chart and depict the
target values set for the new product design and are determined from the
relationships between CAs and ECs.
(Refer to Section 3.5 to augment this answer.)
47.
What are ways in which a company could collaborate with
customers for new product design?
LO: 3.4
Topic: Supply Chain Collaboration
Difficulty: 2 Moderate
AACSB: Reflective
thinking, written communication
Bloom’s: Understand
Feedback: See below.
Asking customers the right questions: What can we do to make
your life easier or more productive?
Aligning incentives (merchandise, monetary awards, and first access to new
designs) for customers to share their knowledge with the design team.
Creating a collaborative technology platform to share information.
Including customers as advisers to the design team.
(Refer to Section 3.4 to augment this answer.)
48.
What criteria are important when a company is considering a
supplier as a potential collaborator in new product development?
LO: 3.4
Topic: Supply Chain Collaboration
Difficulty: 2 Moderate
AACSB: Reflective
thinking, written communication
Bloom’s: Understand
Feedback: See below.
Whether the supplier has technical expertise the company lacks.
Capability of the supplier to meet targets for cost, quality, and product
performance.
Whether the supplier has the capacity to meet the product development schedule
and ramp up to production.
Whether the supplier exhibits low risk regarding performing as expected.
(Refer to Section 3.4 to augment this answer.)
49.
Describe modular design. What are the desirable outcomes of
modular design to the firm? To customers?
LO: 3.6
Topic: Modular Design
Difficulty: 2 Moderate
AACSB: Reflective
thinking, written communication
Bloom’s: Understand
Feedback: See below.
Modular design is the development of a series of basic product
components, or modules, that can be assembled into a large number of different
products.
For the firm, there are only a limited number of basic
components and processes (reducing complexity).
For the customer, it appears that there are a great number of
different products.
(Refer to Section 3.7 to augment this answer.)
Chapter 05 Service Delivery System Design Answer Key
Multiple-Choice Questions
1. Which
of the following is NOT a general characteristic of a service?
A.Production and consumption are simultaneous.
B. The
service can be transported.
C. No resale is possible.
D. The service cannot be stored.
LO: 5.1
Topic: Defining Service
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Except for
electricity and communications, services cannot be transported (though
producers can be—see Table 5.1).
2. Which
of the following are characteristics of a low-contact service delivery system?
A.Lower costs and more standardization.
B. Greater flexibility, need for people who are highly skilled in
interpersonal relations, and a customer orientation.
C. Need for people with a high level of technical skills oriented toward
efficient processing, well-defined procedures, and smooth flow.
D. Both
a and c.
E. All of the above.
LO: 5.4
Topic: Customer Contact
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Flexibility,
strong interpersonal skills, and customer orientation are not characteristics
of a low-contact system.
3. The
degree of customer contact measures
A.the amount of time the customer is separated from the service delivery
system.
B. the
amount of time the customer is in the service delivery system.
C. the customization abilities of the service system.
D. none of the above.
LO: 5.4
Topic: Customer Contact
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: The degree of
customer contact measures the amount of time for the service to be produced,
delivered, and consumed by the customer—in other words, the amount of time the
customer is in the service delivery system.
4. A
service recovery process
A.follows every service transaction.
B. is an implicit service.
C. is
rapid compensation for a service failure.
D. is none of the above.
LO: 5.5
Topic: Service Recovery and Guarantees
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Swift service recovery
is necessary for an effective recovery process.
5. A
service guarantee
A.is like a product guarantee except that it is for a service.
B. specifies exactly what the service delivery system must provide.
C. builds loyalty.
D. all
of the above.
LO: 5.5
Topic: Service Recovery and Guarantees
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: All are true of
service guarantees (see Section 5.5).
6. A
good service guarantee
A.is often an advertising gimmick.
B. is
an honest assurance that the customer will be satisfied.
C. has many stipulations and conditions.
D. costs a lot.
LO: 5.5
Topic: Service Recovery and Guarantees
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Effective
guarantees should not be viewed as any form of gimmick or contain many
stipulations or conditions.
7. Which
of the following is NOT a correct statement?
A.A service is produced and consumed simultaneously.
B. Services are provided in a bundle of services and goods.
C. The
service delivery system should be designed primarily around the employees in
the system.
D. Low-contact services can usually be made more efficient than
high-contact services.
LO: 5.3
Topic: Service Delivery System Matrix
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: The service
delivery system is designed around the customer.
8. Which
of the following is NOT a differentiator between manufacturing and service
operations?
A.Transportation
B. Customer contact
C. Resale
D. Cost
per unit
LO: 5.1
Topic: Defining Service
Difficulty: 1 Easy
AACSB: Reflective thinking
Bloom’s: Remember
Feedback: Cost per unit is
not a differentiator, though all of the others are (see Table 5.1).
9. Which
of the following is NOT a characteristic of service operations?
A.Intangible output.
B. The buyer can perform part of the production.
C. The product cannot be stored.
D. Ownership
is transferred at time of purchase.
LO: 5.1
Topic: Defining Service
Difficulty: 2 Moderate
AACSB: Reflective thinking
Bloom’s: Understand
Feedback: Because services
are intangible, ownership generally is not transferable.
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