Chapter 6
Developing Products and Services
TRUE/FALSE
1. Product design refers to the development of physical products and intangible services. Answer: True Reference: Introduction Difficulty: Easy Keywords: product, design 2. All product development efforts directly benefit the consumer. Answer: False Reference: Introduction Difficulty: Easy Keywords: product, development, consumer 3. The ease with which parts can be replaced, checked or evaluated is testability. Answer: False Reference: Operations and Supply Chain Perspectives on Design Difficulty: Easy Keywords: serviceability, testability 4. Robust design is the design of products to be less sensitive to manufacturing variation and misuse. Answer: True Reference: Operations and Supply Chain Perspectives on Design Difficulty: Easy Keywords: robust, design, variation 5. An airline specifies a wider monitor for installation on their overseas flights. The airframe manufacturer will accommodate this order by issuing an engineering change. Answer: True Reference: Operations and Supply Chain Perspectives on Design Difficulty: Moderate Keywords: engineering, change, order 6. The concept development phase addresses the feasibility of a product or service. Answer: False Reference: The Development Process Difficulty: Easy Keywords: concept, development, phase 7. In the planning phase, the operations and supply chain function develops initial cost estimates and identifies key supply chain partners. Answer: True Reference: The Development Process Difficulty: Moderate Keywords: planning, phase, operations
8. The development funnel demonstrates that while initial conceptual development takes a long time, products design can progress quickly through the final phases of development. Answer: False Reference: The Development Process Difficulty: Moderate Keywords: development, funnel 9. Products developed using a concurrent engineering process can be developed more quickly than those using a sequential development process. Answer: True Reference: The Development Process Difficulty: Moderate Keywords: concurrent, engineering, sequential 10. Presourcing is the process of preapproving suppliers for specific commodities or parts. Answer: True Reference: The Development Process Difficulty: Easy Keywords: presourcing, preapproving 11. An example of black box design would be a producer of automotive brakes working at the design table with an automobile manufacturer through all phases of product development. Answer: False Reference: The Development Process Difficulty: Moderate Keywords: black, gray, box, design 12. Quality function development can be used to show linkages between customer requirements and product characteristics. Answer: True Reference: Approaches to Improving Product and Service Designs Difficulty: Moderate Keywords: QFD, quality, function, deployment 13. The roof of the house of quality displays conflicts between the voice of the customer and product characteristics and permits designers to rapidly identify trade-offs. Answer: False Reference: Approaches to Improving Product and Service Designs Difficulty: Moderate Keywords: QFD, quality, function, deployment, roof 14. CAD systems allow engineers to develop, modify, share, and test designs in a virtual world. Answer: True Reference: Approaches to Improving Product and Service Designs Difficulty: Easy Keywords: CAD, computer-aided, design AACSB: Use of Information Technology
15. Companies can reduce the time and cost of developing new products and reduce the cost of final products by using parts standardization. Answer: True Reference: Approaches to Improving Product and Service Designs Difficulty: Easy Keywords: parts, standardization 16. Target costing is the act of designing a process to meet a specific cost objective. Answer: False Reference: Approaches to Improving Product and Service Designs Difficulty: Moderate Keywords: target, costing, design, cost 17. Value may be increased by simultaneously increasing cost and decreasing functionality. Answer: False Reference: Approaches to Improving Product and Service Designs Difficulty: Moderate Keywords: value, cost, functionality MULTIPLE CHOICE
18. Which of the following functions is NOT typically involved in a cross functional product development effort? a. marketing b. operations c. finance d. all of these functions are involved. Answer: d Reference: Introduction Difficulty: Easy Keywords: product, development, cross-functional 19. The ease with which parts can be replaced or evaluated is: a. repeatability. b. serviceability. c. testability. d. functionality. Answer: b Reference: Operations and Supply Chain Perspectives on Design Difficulty: Easy Keywords: serviceability, repair, parts
20. The ease with which parts can be replaced or evaluated is: a. repeatability. b. serviceability. c. testability. d. functionality. Answer: b Reference: Operations and Supply Chain Perspectives on Design Difficulty: Easy Keywords: serviceability, replace, evaluate 21. A box of cake mix can be the basis for a tasty cake even if the novice baker adds olive oil instead of vegetable oil and forgets to set a timer. The cake recipe has probably been developed using: a. value analysis. b. the development funnel. c. robust design. d. DFE. Answer: c Reference: Operations and Supply Chain Perspectives on Design Difficulty: Moderate Keywords: robust, design 22. A revision to a drawing or design released by designers to correct a part is called a(n): a. engineering change. b. part mod. c. tweak. d. lock-in. Answer: a Reference: Operations and Supply Chain Perspectives on Design Difficulty: Moderate Keywords: engineering, change, order 23. The feasibility of a product or service is evaluated during the: a. planning phase. b. evaluation phase. c. launch phase. d. concept development phase. Answer: a Reference: The Development Process Difficulty: Moderate Keywords: planning, phase, development
24. The operations and supply chain functions develop detailed process maps of the operations and supply chain flows and test new processes in the: a. concept development phase. b. planning phase c. design and development phase. d. commercial preparation phase. Answer: c Reference: The Development Process Difficulty: Difficult Keywords: design, development, phase, development 25. Which of the following occurs during a sequential development process? a. Activities in different development stages overlap with one another. b. Constant communication is required between participants at various stages in the development effort. c. Prototypes can begin before product characteristics are finalized. d. The development funnel process takes place. Answer: d Reference: The Development Process Difficulty: Difficult Keywords: development funnel, sequential, concurrent 26. The development of specifications for the manufacturing equipment needed to make the product is the responsibility of: a. engineering. b. marketing. c. accounting. d. purchasing. Answer: a Reference: Organizational Roles in Product and Service Development Difficulty: Moderate Keywords: manufacturing, specifications, engineering 27. The process of preapproving suppliers for specific commodities or parts is known as: a. screening. b. presourcing. c. presaging. d. certifying. Answer: b Reference: Organizational Roles in Product and Service Development Difficulty: Moderate Keywords: presourcing, suppliers
28. In high tech firms, the group most likely to be responsible for the success of a product development process is: a. scientists and engineers. b. marketing. c. consumers. d. accounting/finance. Answer: a Reference: Organizational Roles in Product and Service Development Difficulty: Moderate Keywords: engineers, scientists, product development, process 29. The left side of the quality function deployment house of quality contains: a. product characteristics. b. relationships between product characteristics. c. customer requirements. d. product specifications. Answer: c Reference: Approaches to Improving Product and Service Designs Difficulty: Moderate Keywords: QFD, quality function deployment, 30. A consideration to create products and services that are easy to make is: a. DFE. b. CAM. c. QFD. d. DFM. Answer: d Reference: Approaches to Improving Product and Service Designs Difficulty: Moderate Keywords: DFM, design, manufacturability 31. Parts standardization typically does NOT: a. reduce the time to develop a new product. b. reduce the cost of final products. c. reduce the profit of a new product. d. reduce the cost of developing new products. Answer: c Reference: Approaches to Improving Product and Service Designs Difficulty: Moderate Keywords: parts standardization, product, development
32. A process that involves examining all elements of a component, assembly, end product, or service to make sure it fulfills its intended function at the lowest total cost is: a. target costing. b. design to cost. c. value analysis. d. examination costing. Answer: c Reference: Approaches to Improving Product and Service Designs Difficulty: Easy Keywords: value, value analysis FILL IN THE BLANK
33. __________ refers to the ease with which critical components or functions can be tested during production. Answer: Testability Reference: Operations and Supply Chain Perspectives on Design Difficulty: Easy Keywords: testability, components 34. The unexpected expenses associated with overhead and engineering change notices are __________. Answer: hidden costs Reference: Operations and Supply Chain Perspectives on Design Difficulty: Moderate Keywords: hidden cost, overhead 35. The company begins to address the feasibility of a product or service in the __________ phase of the development process. Answer: planning Reference: The Development Process Difficulty: Moderate Keywords: development, planning, phase 36. The __________ is the process whereby many ideas are considered at the concept development phase but few ideas make it to the commercial development and launch phases. Answer: development funnel Reference: The Development Process Difficulty: Moderate Keywords: development, funnel, phase 37. __________ allows activities in different development stages to overlap with one another. Answer: Concurrent engineering Reference: The Development Process Difficulty: Moderate Keywords: development, concurrent, engineering
38. In __________, the supplier works with the customer to jointly design the product. Answer: gray box design Reference: Organizational Roles in Product and Service Development Difficulty: Moderate Keywords: gray, box, design, development 39. The roof of the quality function deployment house of quality displays synergies among the __________. Answer: product characteristics Reference: Approaches to Improving Product and Service Designs Difficulty: Difficult Keywords: QFD, product, characteristics, roof 40. __________ is a product design in which each functional element maps into its own physical chunk. Answer: Modular architecture Reference: Approaches to Improving Product and Service Designs Difficulty: Easy Keywords: modular, architecture, standardization 41. Safety and health issues over the product’s projected life cycle are addressed by __________. Answer: design for the environment Reference: Approaches to Improving Product and Service Designs Difficulty: Easy Keywords: design, environment, health safety 42. The relationship between product functionality and product cost is quantified as __________. Answer: value (value analysis) Reference: Approaches to Improving Product and Service Designs Difficulty: Moderate Keywords: value, analysis function cost ESSAY
43. What are the four reasons that a company might develop new products and services? Answer: The authors identify four reasons why a company might develop new products or services or update its existing ones. The first reason is that new products or services can give firms a competitive advantage in the marketplace. The second reason is that new products can provide benefits to the firm (as opposed to benefiting customers directly). The third reason is that companies develop new products or services to exploit existing capabilities. Finally, companies can use new product development to block out competitors. Reference: Introduction Difficulty: Moderate Keywords: new product development
44. What are robust design, testability, and serviceability and how are they related? Answer: Robust design calls for the design of the product to be insensitive (or less sensitive than predecessors) to variations in manufacturing and use. This increases the probability that the product will be functional. Testability refers to the ease with which critical components or functions can be tested during production. Serviceability refers to the ease with which parts can be replaced, serviced, or evaluated. The three concepts represent the entire continuum of quality costs, with the first two classified as internal costs; robust design being prevention-related costs and testability costs falling in the appraisal category. Serviceability costs are primarily external. Reference: Operations and Supply Chain Perspectives on Design Difficulty: Moderate Keywords: robust design, testability, serviceability AACSB: Reflective Thinking 45. What are the phases of the product development process and what takes place in each? Answer: The five phases in the development of a new product or service are concept development, planning, design and development, commercial preparation, and launch. The first phase, concept development, is where the company identifies ideas for new or revised products and services. The second phase, the planning phase, is where the company begins to address the feasibility of a product or service. During the design and development phase the company starts to invest heavily in the development effort and builds and evaluates prototypes. The fourth phase is commercial preparation and consists of ramping up activities associated with the introduction of a new product or service. At this stage, firms start to invest heavily in the operations and supply chain resources needed to support the new product or service. The fifth and final phase of product development is the launch phase. For physical products, this usually means filling up the supply chain with products. For services, it can mean making the service broadly available to the target marketplace. Reference: The Development Process Difficulty: Difficult Keywords: development, phase, concept, planning, design, launch, commercial 46. What is the operations and supply chain function responsible for in each of the product development phases? Answer: The five phases in the development of a new product or service are concept development, planning, design and development, commercial preparation, and launch. In concept development, the operations and supply chain functions scan suppliers for promising technologies and capabilities. In planning, the operations and supply chain functions develop initial cost estimates and identify key supply chain partners. In design and development, the operations and supply chain functions develops detailed process maps of the operations and supply chain flows and test new processes. Commercial preparation calls for the operations and supply chain functions to build pilot units using new operations, train personnel, and verify that supply chain flows work as expected. Finally, in launch, the operations and supply chain functions ramp up volumes and meet targets for quality, cost and other performance goals. Reference: The Development Process Difficulty: Difficult Keywords: development, phase, concept, planning, design, launch, commercial, operations
47. How does quality function deployment work and what advantages are accrued when it is used? Answer: Quality function deployment (QFD) is a graphical tool for product design developed in Japan that helps organizations move from vague notions of what customers want to specific engineering and operational requirements. The first QFD matrix translates the voice of the customer into specific product characteristics and shows the relationship between those requirements and characteristics and also among the characteristics. This helps ensure that all customer requirements are addressed by the product or service and that there are no superfluous product characteristics. The end result is that successful designs are developed and deployed in a fraction of the time of a traditional sequential product development process and that these designs tend to meet with success in their initial release. Reference: Approaches to Improving Product and Service Designs Difficulty: Moderate Keywords: quality function deployment, QFD 48. What are the advantages for a manufacturer of parts standardization and modular architecture and how are they related? Answer: Parts standardization refers to the planned elimination of superficial, accidental, and deliberate differences between similar parts in the interest of reducing part and supplier proliferation. Modular architecture is product architecture in which each functional element maps into its own physical chunk. Different chunks perform different functions; the interactions between the chunks are minimal and they are generally welldefined. Modular architecture is essentially standardization in chunks. By standardizing parts or modules, a company can streamline the supply chain, carry less inventory, simplify training for production and field service personnel, and lower costs for themselves and their customers. Reference: Approaches to Improving Product and Service Designs Difficulty: Moderate Keywords: parts standardization, modular design
