Chap 004

Chapter 04 - Product and Service Design

Chapter 04Product and Service Design

True / False Questions

1. Global teams provide diversity while eliminating conflicts and miscommunication. FALSE

AACSB: MDDifficulty: MediumTLO: 14Taxonomy: Knowledge

2. A ‘House of Quality' is achieved when no department in a single location has more than 15% rejects. FALSE

Difficulty: EasyTLO: 9Taxonomy: Knowledge

3. Concurrent Engineering is another term for sequential development. FALSE


4. One of the main advantages of standardization is that it increases the potential variety of products. FALSE

Difficulty: MediumTLO: 4Taxonomy: Knowledge

4-1


5. A disadvantage of standardization is the possibility of standardizing designs too early, which may make it difficult to modify in the future. TRUE


6. Reducing consumer choices makes service more efficient. TRUE


7. Modular design increases costs of purchasing and controlling inventory compared to non-modular. FALSE


8. Product failures can be easier to remedy with modular design. TRUE


9. One motivation for an organization to redesign its product or service is to avoid the alternative of downsizing the organization. TRUE


4-2


10. A major benefit of Computer Aided Design (CAD) is the increased productivity of designers. TRUE

AACSB: ITDifficulty: EasyTLO: 10Taxonomy: Knowledge

11. Most of the time what is called product or service design is actually a redesign of an existing product or service. TRUE


12. A service blueprint is quite similar to an architectural drawing. TRUE

AACSB: RTDifficulty: EasyTLO: 13Taxonomy: Knowledge

13. The process of dismantling and inspecting a competitor's product to discover product improvement is called benchmarking. FALSE


4-3


14. To save money, it is essential that designers revise the production capabilities to meet the requirements of the new products. FALSE

AACSB: RTDifficulty: MediumTLO: 10Taxonomy: Knowledge

15. Many US manufacturers are now shifting their focus from products to both product and process improvements. TRUE


16. Applied research has the objective of achieving commercial applications for new ideas. TRUE


17. Basic research is done with the expectation that discoveries will have near-term commercial application. FALSE


4-4


18. "Design for production" takes into account the capabilities of the organization to produce or deliver a given product or service. TRUE


19. Consumers tend to resist purchasing products containing recycled materials. FALSE


20. "Concurrent engineering" brings people concerned with manufacturing into the design phase earlier than in the "over-the-wall" approach. TRUE


21. "Concurrent engineering" means that at least two engineers are involved in product design at the same time. FALSE


4-5


22. One approach to extending a product's life cycle is to promote alternate uses of the product. TRUE


23. "Quality Function Deployment" is a structured approach that guarantees that the highest quality product or service will be designed. FALSE

AACSB: RTDifficulty: EasyTLO: 9Taxonomy: Knowledge

24. Product liability means that a manufacturer is liable for any injuries and damages caused by a faulty product because of poor workmanship or design. TRUE


25. The process of dismantling and inspecting a competitor's product to discover improvement is called reverse engineering. TRUE


4-6


26. Research and development (R&D) refers to organized efforts that are directed toward increasing scientific knowledge and product (or process) innovation. TRUE


27. Standardization refers to the extent to which there is absence of variety in a product, service, or process. TRUE


28. Re-manufacturing refers to removing some of the components of old products and reusing them in new products. TRUE


29. The demand for a product and the rate of technological change have significant impact on the length of a given phase of the product life cycle. TRUE


4-7


30. Robust design describes a product that will perform satisfactorily so long as it is used in a very narrow range of conditions. FALSE


31. Taguchi design methods involve identifying the optimal operating or environmental conditions for a given product. FALSE


32. Quality function deployment (QFD) is based on a set of standards which relate customer requirements to company capabilities. FALSE

Difficulty: HardTLO: 9Taxonomy: Knowledge

33. The quality function deployment (QFD) matrices are often referred to as the "House of Quality" because, when completed, they "house" all of the customer's quality requirements. FALSE


4-8


34. Service design often must take into account the degree of customer contact required. TRUE


35. Reliability refers to the ability of a product to perform its intended function under normal conditions. TRUE


36. Applied research is the major R & D effort of business organizations because of the desire for commercial applications. TRUE


37. Commonality of components is beneficial for manufacturing but not for services. FALSE


4-9


38. Standardization can at times lead to serious difficulties and competitive struggles, particularly when systems are running under different conditions. FALSE


39. The term failure as applied to reliability means that a part or item does not function at all. FALSE


40. Reliability can be defined in terms of a particular point in time or in terms of length of service. TRUE


41. Reliability can be improved by the use of backup components. TRUE


42. Delayed differentiation and modular design are tactics for mass customization. TRUE

AACSB: CADifficulty: MediumTLO: 10Taxonomy: Knowledge

4-10


43. Life-cycle assessment involves incorporating where the product or service is in its life-cycle into system-design decision-making. FALSE


44. The goal of life-cycle assessment is to incorporate the environmental impact of products or services into product-design or service-design decision-making. TRUE


45. The three Rs – Reduce, Re-use and Recycle – are more applicable in service design than in product design. FALSE


Multiple Choice Questions

46. The goal of value analysis is to find ways of _________. A. I. Reducing the cost of parts and materialsB. II. Improving the performance of the product or serviceC. III. Incorporating multiple cultural values in global system designD. Both I and IIIE. Both I and II


4-11


47. When considering re-use issues for a given product, an important factor to take into account is that product's _________. A. Ethical impactB. ReliabilityC. DurabilityD. Design for assemblyE. None of the above


48. Incorporating design for disassembly (DFD) principles in product design helps firms with ___________ design issues. A. LegalB. SocialC. Re-useD. Reverse engineeringE. Re-engineering


49. Designing for recycling helps facilitate ________. A. Reduced legal liabilityB. Compliance with regulatory environmentsC. Increased product reliabilityD. Reduced standardization costsE. None of the above


4-12


50. One way to increase reliability is to: A. improve component designB. increase the number of service stationsC. increase mean repair timeD. increase the number of dependent componentsE. none of the above


51. One way to increase reliability is to: A. eliminate backup componentB. improve preventive maintenance proceduresC. increase mean repair timeD. increase the number of independent componentsE. none of the above


52. Which of the following is not a reason for redesigning a product or service? A. to reduce labor or material costB. to increase the level of employee satisfactionC. to increase the level of customer satisfactionD. to attract and increase customer demandE. to increase quality


4-13


53. A disadvantage of global teams for product design is that: A. Customers may have different needs in different countriesB. The product designed may have increased marketability and utilityC. The diversity of an international team may be a detrimentD. Ease of face to face meetings is absent since members are located everywhereE. Technology allows constant contact with team members

AACSB: MDDifficulty: MediumTLO: 5Taxonomy: Knowledge

54. The stage in a product or service life cycle where some firms adopt a defensive research posture is: A. incubationB. growthC. maturityD. saturationE. decline


55. One step that isn't part of service blueprinting is: A. Eliminate boundaries for the service and decide on the level of interaction neededB. Identify and determine the sequence of customer and service actions and interactionsC. Develop time estimates for each phase of the processD. Understand the time variability involvedE. Identify potential failure points and develop a plan to minimize them


4-14


56. The research and development activity which starts after positive research results are available and attempts to turn these results into useful commercial applications is: A. basic researchB. applied researchC. developmentD. redesignE. commercial research


57. The advantages of standardization include which of the following? (I.) The opportunity to freeze design at a very early stage(II.) Fewer parts to deal with in inventory(III.) Reduced training cost and time(IV.) Purchasing is more routine A. I, IIB. I, IVC. I, II, IIID. II, III, IVE. I, II, III, IV


58. Products or services with a high degree of similarity of features and components are called: A. genericB. copy-catC. rip-offsD. product familiesE. product/service matrix


4-15


59. "Must have", "expected" and "excitement" characteristics are categories in the ____ model. A. Bi-polarB. KanoC. ParetoD. QualityE. Service Matrix


60. One possible disadvantage of modular design is that: A. replacement and repair is more difficultB. failure diagnosis is more complexC. number of configurations of modules decreasesD. individual parts lose their identitiesE. inventory problems arise


61. In the area of product and service design, the acronym CAD refers to: A. conceptually appropriate designB. computer aided designC. commercial applications designD. competitive advantage designE. completely automated design

AACSB: ITDifficulty: EasyTLO: 10Taxonomy: Knowledge

4-16


62. Which of the following statements about CAD is not true? A. It increases the productivity of designers.B. It uses computer graphics.C. It requires a good data base.D. Some systems permit engineering or cost analysis of proposed designs.E. It is used successfully by 68% of the manufacturing companies.

AACSB: ITDifficulty: HardTLO: 10Taxonomy: Knowledge

63. Which one of the following is not a factor of successful product and service design? A. be aware of what the competitors are doingB. be aware of what customers wantC. know what government regulations areD. use computerized design techniquesE. know what new technologies are available


64. As part of a strategy for improving competitiveness, a manager may have to initially sacrifice: A. research and developmentB. short-term performanceC. employee pay raisesD. product or service qualityE. personal incentive bonuses

AACSB: EUDifficulty: MediumTLO: 1Taxonomy: Knowledge

4-17


65. Ideas for new or improved designs can come from: A. customersB. competitorsC. research and development departmentsD. production departmentsE. all of the above


66. The process of dismantling and inspecting a competitor's new or revised product for the purpose of gleaning design ideas is called: A. design by imitationB. product analysisC. reverse engineeringD. benchmarkingE. disassembly


67. The term ‘degrees of newness' is associated with: A. average age of employeesB. average length of time on the jobC. total years of business experienceD. degree of design changeE. average age of the capital equipment


4-18


68. The term ‘standardization' is closely associated with: A. customizationB. high costC. longer lead timesD. varietyE. interchangeability


69. Service design generally differs from product design in which of the following ways? A. Service design tends to focus on tangible factors.B. There is less latitude in detecting and correcting errors prior to delivery.C. There is a lesser requirement to be aware of competitors' offerings.D. There is less visibility to customers.E. There is no difference


70. The structural approach for integrating customer requirements into every aspect of product development is known as: A. total quality managementB. customer satisfactionC. quality function deploymentD. customer integrationE. a product development team


4-19


71. Which of the following is an issue that designers must take into account in product and service design? A. legal, environmental, and ethical issuesB. reliabilityC. standardizationD. range of operating conditionsE. all of the above

AACSB: EUDifficulty: MediumTLO: 3Taxonomy: Knowledge

72. One of these is not a characteristic of a well-designed service system: A. User friendlyB. RobustC. Distributed computer networksD. Cost effectiveE. Easy to sustain


73. A formal way to document customer requirements is: A. consumer surveysB. quality function deployment (QFD)C. focus groupsD. Delphi techniqueE. sales/marketing matrix


4-20


74. Which of the following is not true about re-manufacturing? A. Re-manufactured products can be sold at lower cost.B. The process requires mostly unskilled and semiskilled workers.C. There is less depletion of natural resources.D. It produces high quality products easily.E. Re-manufacturing is mainly carried out by small and mid-sized companies.


4-21

Chap 004

Documents

quality function

computer aided

commercial

reverse engineering

customer satisfaction

concurrent

modular design

design decision