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Homework answers / question archive / University of Waterloo AFM 231 Chapter 5 Design of Good and Services 1)Which of the following is a characteristic of the maturity phase of the product life cycle? A
University of Waterloo
AFM 231
Chapter 5 Design of Good and Services
1)Which of the following is a characteristic of the maturity phase of the product life cycle?
A. Competitors are well established.
B. Product designs begin to stabilize.
C. Products are "fine-tuned."
D. Products are considered for termination.
2. Listing products in descending order of their individual dollar contribution to the firm is called
A. product decision.
B. product life cycle.
C. product-by-value analysis.
D. brainstorming.
3. Which of the following statements is NOT true?
A. The product decision includes the selection, definition, and design of products.
B. Many service firms refer to their offerings as "products." C. The term "products" refers to tangible goods only.
D. The objective of the product decision is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage.
4. Which of the following phases of the product life cycle has negative cash flow and increasing spending on development and production?
A. growth phase
B. introductory phase
C. decline phase
D. maturity phase
5. Which of the following statements is NOT true?
A. Understanding the customer is the premier issue in new-product development.
B. Economic change brings increasing levels of affluence in the short run but economic cycles and price changes in the long run.
C. Sociological and demographic change may appear in such factors as decreasing family size.
D. Political/legal change brings about new trade agreements, tariffs, and government requirements.
6. A house of quality would depict the strength of the relationship between which of the following two items?
A. The customer's need for a sealable change pocket and the customer's need for plastic inserts to display pictures. B. The customer's desire for a durable wallet and the company's choice of material for the wallet.
C. The stitching used in your company's new product and the stitching used in a competitor's wallet.
D. The design team's choice of material for a wallet and the materials that were considered but rejected by the design team.
7. What is the first step to build a house of quality?
A. Determine the desirable technical attributes. B. Identify customer wants.
C. Identify how the good/service will satisfy customer wants.
D. Relate customer wants to product hows.
8. Which of the following statements is TRUE regarding the approach Japanese organizations use for product development?
A. Japanese organizations assign a product manager to "champion" the product.
B. Japanese organizations bypass the team issue by not subdividing organizations into research and development, engineering, production, and so forth.
C. The Japanese approach to product development is an organization with distinct departments.
D. Japanese organizations use teams to develop products.
9. Which of the following is NOT a benefit generated by manufacturability and value engineering?
A. reduction of environmental impact
B. improved job design and job safety
C. reduced standardization of components
D. reduced complexity of the product
10. When ordering a new zagflatz, customers must choose the style of three major components, each of which has about ten variations. This is an example of
A. CAD.
B. modular design.
C. robust design.
D. environmentally friendly design.
11. What is a design that can be produced to requirements even with unfavorable conditions in the production process?
A. robust design
B. CAD
C. DFMA
D. modular design
12. Which of the following technologies is particularly useful for prototype development and small lot production?
A. CAM
B. 3-D printing
C. STEP
D. CAD
13. What is a review of successful products that takes place during the production process?
A. virtual reality B. value analysis
C. LCA
D. CAD
14. Which of the following is an external product development strategy?
A. migrations of existing products
B. new internally developed products
C. enhancements to existing products D. joint ventures
15. Which of the following represents an internal product development strategy?
A. migration of existing products
B. alliances
C. joint ventures
D. purchase technology or expertise by acquiring the developer
16. Which of the following statements is NOT true regarding joint ventures?
A. Joint ventures are firms establishing joint ownership to pursue new products or markets.
B. Joint ventures are usually between just two firms.
C. Joint ventures are more likely to work when the risks are unknown.
D. Ownership can be 50-50, or one owner can assume a larger portion to ensure tighter control.
17. What are cooperative agreements that allow firms to remain independent, but pursue strategies consistent with their individual missions?
A. enhancements and migration
B. acquisitions
C. joint ventures D. alliances
18. Defining a product means
A. to list the hierarchy of components, their description, and the quantity of each required to make one unit of a product.
B. to identify components by a coding scheme that specifies size, shape, and the type of processing.
C. to decide to produce a component or service or purchase from an outside source. D. to define the new good's or service's function.
19. Which of the following statements is NOT true regarding a bill of material (BOM)?
A. A BOM lists the hierarchy of components and their description.
B. A BOM lists the quantity of each coponent required to make one unit of a product.
C. In the food-service industry, BOMs manifest themselves in portion-control standards. D. A BOM cannot be referenced on other bills of material.
20. Most manufacturing items and their components are defined by
A. a BOM.
B. group technology.
C. an engineering drawing.
D. the make-or-buy decision.
21. Group technology identifies components by a coding scheme that specifies the
A. shape and type of processing.
B. size and shape.
C. size and type of processing.
D. size, shape, and type of processing.
22. A route sheet
A. is a correction or modification of an engineering drawing or bill of materials.
B. shows in schematic form how a product is assembled.
C. lists the operations necessary to produce the component.
D. is an instruction to make a given quantity of a particular item.
23. An assembly chart is
A. an exploded view of the product.
B. a listing of the operations necessary to produce the component. C. a schematic showing how the product is assembled.
D. an instruction to make a given quantity of a particular item.
24. In a make-to-order system, when a customer places a request for a product or service with a producer,
A. a work order is created.
B. an assembly chart is created.
C. an engineering change notice is created.
D. a route sheet is created.
25. What is an umbrella of software programs that may include CAD/CAM, product routing, maintenance, and other product concerns?
A. DFMA
B. material requirements planning C. product life-cycle management
D. configuration management
26. What is analysis that focuses on the ways in which processes can be designed to optimize interaction between firms and their customers?
A. value engineering
B. value analysis
C. process-chain-network analysis
D. product-by-value analysis
27. Self-checkout at a grocery store is an example of
A. customer participation in service delivery.
B. complete automation.
C. customer participation in service design.
D. delayed customization.
28. Which of the following regions of a process chain includes the process steps that involve interaction between participants?
A. independent processing region
B. substitute interaction region
C. surrogate interaction region D. direct interaction region
29. Operation of a hair salon is an example of
A. delayed customization.
B. an assembly line.
C. automation.
D. modularization.
30. Moving a product from development to production is referred to as
A. product definition.
B. product design.
C. transition to production.
D. product development.
31. Which of the following is NOT an approach to ensure a successful transition from development to production?
A. Use product development teams.
B. Segregation of the product development and manufacturing organizations.
C. Integration of the product development and manufacturing organizations.
D. Appoint a project manager.
B. Segregation of the product development and manufacturing organizations
32. A result of concurrent engineering in product design is:
A. speedier product development.
B. higher costs.
C. less customer demand.
D. lower quality.
E. All of the above.
33. When should product strategy focus on forecasting capacity requirements?
A. at the decline stage of the product life cycle
B. at the maturity stage of the product life cycle
C. at the introduction stage of the product life cycle D. at the growth stage of the product life cycle
E. at the saturation stage of the product life cycle
34. A graphic technique for defining the relationship between customer desires and product (or service) is:
A. product lifecycle management.
B. the moment of truth.
C. modular design.
D. the assembly drawing. E. the house of quality.
35. Which of the following statements is NOT true regarding decision trees?
A. Decision trees can be used for other management problems besides product design.
B. A decision tree is a great tool for thinking through a problem.
C. Decision trees are particularly helpful when there are a series of decisions and various outcomes that lead to subsequent decisions followed by other outcomes.
D. decision trees should be used for new-product decisions when no uncertainty is present
36. Which of the following procedures is TRUE regarding the construction of a decision tree for product design?
A. Payoffs are entered at the beginning of the appropriate branch.
B. The possible alternatives include an alternative of "doing nothing."
C. Be sure that all possible alternatives and states of nature (beginning on the right and moving left) are included in the tree.
D. To determine the expected value of each course of action, we need to start at the beginning of the tree and work toward the end of the tree.
