CHAPTER 5 Flashcards
Although the term products may often refer to tangible goods, it also refers to
offerings by service organizations. True or false?
True
—The selection, definition, and design of products.
Product Decision
A list of products, in descending order of their
individual dollar contribution to the firm, as well as the total annual dollar
contribution of the product
Product-by-value analysis
A process for determining customer
requirements (customer “wants”) and translating them into attributes (the
“hows”) that each functional area can understand and act on
Quality function deployment (QFD
A part of the quality function deployment process that utilizes
a planning matrix to relate customer wants to how the firm is going to meet
those wants
House of quality
—Teams charged with moving from market
requirements for a product to achieving product success
Product development teams
Simultaneous performance of the various stages of
product development
Concurrent engineering
Activities that help improve a
product’s design, production, maintainability, and use.
Manufacturability and value engineering
A design that can be produced to requirements even with unfavorable conditions in the production process
Robust design
A design in which parts or components of a product are
subdivided into modules that are easily interchanged or replaced.
Modular design
—Interactive use of a computer to develop and
document a product
Computer-aided design (CAD)
—Software that allows designers
to look at the effect of design on manufacturing of a product.
Design for manufacture and assembly (DFMA
A standard that provides a
format allowing the electronic transmission of three-dimensional data
Standard for the exchange of product data (STEP)
The use of information technology to
control machinery.
Computer-aided manufacturing (CAM)
—An extension of CAD that builds prototypes and small lots.
3-D printing
A visual form of communication in which images substitute for
reality and typically allow the user to respond interactively
Virtual reality
A review of successful products that takes place during the production process
Value analysis
is part of ISO 14000; it assesses the environmental
impact of a product from material and energy inputs to disposal and environmental releases
Life cycle assessment (LCA
Competition based on time; rapidly developing
products and moving them to market.
Time-based competition
Internal development strategies include
(1) new internally developed products,
(2) enhancements to existing products
(3) migrations of existing products.
External development strategies include
(1) purchase the technology or expertise by
acquiring the developer,
(2) establish joint ventures
(3) develop alliances.
Firms establishing joint ownership to pursue new products or
markets.
Joint ventures
Cooperative agreements that allow firms to remain independent but
pursue strategies consistent with their individual missions.
Alliances
A drawing that shows the dimensions, tolerances,
materials, and finishes of a component.
Engineering drawing
A list of the components, their description, and the
quantity of each required to make one unit of a product.
Bill of material (BOM
The choice between producing a component or a service
and purchasing it from an outside source.
Make-or-buy decision
A product and component coding system that specifies the size, shape, and type of processing; it allows similar products to be grouped.
Group technology
An exploded view of a product.
Assembly drawing
A graphic means of identifying how components flow into subassemblies and final products
Assembly chart
A list of the operations necessary to produce a component with the material specified in the bill of material.
Route sheet
An instruction to make a given quantity of a particular item
Work order
A correction or modification of an
engineering drawing or bill of material
Engineering change notice (ECN)
A system by which a product’s planned and
changing components are accurately identified.
Configuration management
Software programs that tie together
many phases of product design and manufacture.
Product life cycle management (PLM
—A way to design processes to optimize
interaction between firms and their customers
Process-chain-network (PCN) analysis
A sequence of steps that provide value to process participants.
Process chain
To enhance service efficiency, companies:
(1) limit options,
(2) delay customization,
(3) modularize,
(4) automate
(5) design for the “moment of truth.
To form a decision tree:
(1) include all possible alternatives (including “do nothing”)
and states of nature;
(2) enter payoffs at the end of the appropriate branch;
(3) determine the expected value of each course of action by starting at the end
of the tree and working toward the beginning, calculating values at each step and
“pruning” inferior alternatives.
One of the arts of management is knowing when to move a product from
development to production; this move is known as
transition to production
