Exam 5: Design of Goods and Services

An operations manager has carefully examined the 1500 parts produced in his factory and classified them into 30 families with geometric similarities using codes that contain design attributes. This is an example of:

Relatively few new product ideas, perhaps only 1 in 10,000, become successfully marketed products for DuPont.

The hierarchy of components, their description, and the quantity of each required to make one unit of a product are documented on:

Which of the following is TRUE regarding value engineering?

Identify the methods of service design that can increase service efficiency and limit customer interaction.

Which of the following typically shows the hierarchy of components, their description, and the quantity of each required to make one unit of a product?

All Boeing 777s are built exactly alike.

A company producing apps for a social networking site is deciding which path to pursue. The first is to create an app that has universal appeal but faces a crowded market. This app, A, would have sales of 200,000 copies at $1.99 each under ideal conditions, but under rough conditions would have sales of only 90,000 copies at $0.99 each. The other app, B, would have sales of 300,000 units at $1.49 each under ideal conditions, but sales would be reduced to 40,000 units at $0.49 each under rough conditions. If ideal and rough conditions occur with the same frequency, which app should the company produce? Note: both apps cost the same amount to develop.

The customer may participate in the design of, and in the delivery of, services.

In analyzing product design decisions, decision trees determine the ________ of each course of action.

How does configuration management manifest itself when you ask for service on your automobile?

________ is used to rank a company's products to determine which products represent the best use of the firm's resources, or, perhaps, to determine which products are to be eliminated.

A result of concurrent engineering in product design is:

A company is deciding if it should design a product in-house or outsource the design. If outsourced, the cost for a low bidder would be $40,000, and the cost for an expensive bidder would be $100,000. To design in-house would require overtime for an already stretched design team with total costs of $70,000. If all three designs (in-house, low bid, high bid) are equal in quality and the likelihood of finding a low bidder is 60% (meaning that 40% of the time the firm will have to hire the expensive bidder), should the company outsource design or do it in-house?

Which of the following documents lists the operations necessary to produce the component with the material specified in the bill of material?

An assembly drawing lists the operations necessary to produce the component.

Payoffs, alternatives, and expected monetary values are terms associated with:

The enhancement of existing products is an external product development strategy.

Explain the difference between value analysis and value engineering.

In the maturity stage of the product life cycle, operations managers will be particularly concerned with adding capacity or enhancing existing capacity to accommodate the increase in product demand.