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Exam 5: Design of Goods and Services

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Question 21

Multiple Choice

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What information is contained in the roof of the House of Quality?

A) what the customer wants
B) what we can do
C) competitive assessment
D) how well what we do meets the customer's wants
E) relationship between the things we can do

F) B) and D)
G) B) and C)

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Question 22

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Operations managers must be able to anticipate changes in which of the following?

A) product mix
B) product opportunities
C) the products themselves
D) product volume
E) all of the above

F) A) and D)
G) A) and C)

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Question 23

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Black & Decker's hand-powered tools and Hewlett-Packard's printer business are examples of using enhancements and migrations of existing products to build on ________.

A company manufactures specialty pollution-sensing devices for the offshore oil industry.One particular device has reached maturity,and the company is considering whether to replace it with a newer model.Technologies have not changed dramatically,so the new device would have similar functionality to the existing one,but would be smaller and lighter in weight.The firm's three choices are: keep the old model;design a replacement device with internal resources;and purchase a new design from a firm that is one of its suppliers.The market for these devices will be either "receptive" or "neutral" of the replacement model.The financial estimates are as follows: Keeping the old design will yield a profit of $6 million dollars.Designing the replacement internally will yield $10 million if the market is "receptive," but a $3 million loss if the market is "neutral." Acquiring the new design from the supplier will profit $4 million under "receptive," $1 million under "neutral." The company feels that the market has a 70% chance of being "receptive" and a 30% chance of being "neutral." Draw the appropriate decision tree.Calculate expected value for all courses of action.What action yields the highest expected value?

Which of the following is true regarding value engineering?

Identify the specific guidelines that can help an operations manager achieve environmentally friendly designs.

Discuss the advisability of using modular assemblies in manufacturing.(What are the advantages and disadvantages?)To what extent can these arguments be applied to service products?

Sensitivity to a wide variety of environmental issues in production processes is referred to as ________.

A company is deciding if it should design an advertising system for use on Twitter©.The first option is to skip out on designing,with no net costs or gains.The second option is System A,which would result in additional sales of either $50,000 under good conditions or $10,000 under bad conditions.The final choice is System B,which would increase sales by $20,000 under both good and bad conditions.Suppose that good conditions are twice as likely as bad conditions.Which option should the company pursue if developing a system costs $25,000?

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

Two issues-viewing a product in terms of its impact on the entire economy and considering the life cycle of a product-combine to increase the likelihood of ethical decisions by managers.

One environmentally friendly approach to product design is to use lighter components.

Relatively few new product ideas,perhaps only 1 in 250,become successfully marketed products.

One result of concurrent engineering in product design is

"With respect to the product decision,managers must be able to accept risk and tolerate failure." Comment on why this is a necessary hazard in making new product decisions,given all the powerful tools and carefully built systems that support that decision.

An operations manager's ethical responsibilities

The use of product development teams in design and engineering activities is also known as

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

The expected value of each course of action in a decision tree is determined by starting at the beginning of the tree (the left-hand side)and working toward the end of the tree (the right).

Reducing the complexity of a product and improving a product's maintainability for use are activities of