CHAPTER 5

Question 1

Although the term products may often refer to tangible goods, it also refers to
offerings by service organizations. True or false?

Answer 1

True

Question 2

—The selection, definition, and design of products.

Answer 2

Product Decision

Question 3

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

Answer 3

Product-by-value analysis

Question 4

A process for determining customer
requirements (customer “wants”) and translating them into attributes (the
“hows”) that each functional area can understand and act on

Answer 4

Quality function deployment (QFD

Question 5

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

Answer 5

House of quality

Question 6

—Teams charged with moving from market
requirements for a product to achieving product success

Answer 6

Product development teams

Question 7

Simultaneous performance of the various stages of
product development

Answer 7

Concurrent engineering

Question 8

Activities that help improve a
product’s design, production, maintainability, and use.

Answer 8

Manufacturability and value engineering

Question 9

A design that can be produced to requirements even with unfavorable conditions in the production process

Answer 9

Robust design

Question 10

A design in which parts or components of a product are
subdivided into modules that are easily interchanged or replaced.

Answer 10

Modular design

Question 11

—Interactive use of a computer to develop and
document a product

Answer 11

Computer-aided design (CAD)

Question 12

—Software that allows designers
to look at the effect of design on manufacturing of a product.

Answer 12

Design for manufacture and assembly (DFMA

Question 13

A standard that provides a
format allowing the electronic transmission of three-dimensional data

Answer 13

Standard for the exchange of product data (STEP)

Question 14

The use of information technology to
control machinery.

Answer 14

Computer-aided manufacturing (CAM)

Question 15

—An extension of CAD that builds prototypes and small lots.

Answer 15

3-D printing

Question 16

A visual form of communication in which images substitute for
reality and typically allow the user to respond interactively

Answer 16

Virtual reality

Question 17

A review of successful products that takes place during the production process

Answer 17

Value analysis

Question 18

is part of ISO 14000; it assesses the environmental
impact of a product from material and energy inputs to disposal and environmental releases

Answer 18

Life cycle assessment (LCA

Question 19

Competition based on time; rapidly developing
products and moving them to market.

Answer 19

Time-based competition

Question 20

Internal development strategies include

Answer 20

(1) new internally developed products,
(2) enhancements to existing products
(3) migrations of existing products.

Question 21

External development strategies include

Answer 21

(1) purchase the technology or expertise by
acquiring the developer,
(2) establish joint ventures
(3) develop alliances.

Question 22

Firms establishing joint ownership to pursue new products or
markets.

Answer 22

Joint ventures

Question 23

Cooperative agreements that allow firms to remain independent but
pursue strategies consistent with their individual missions.

Answer 23

Alliances

Question 24

A drawing that shows the dimensions, tolerances,
materials, and finishes of a component.

Answer 24

Engineering drawing

Question 25

A list of the components, their description, and the
quantity of each required to make one unit of a product.

Answer 25

Bill of material (BOM

Question 26

The choice between producing a component or a service
and purchasing it from an outside source.

Answer 26

Make-or-buy decision

Question 27

A product and component coding system that specifies the size, shape, and type of processing; it allows similar products to be grouped.

Answer 27

Group technology

Question 28

An exploded view of a product.

Answer 28

Assembly drawing

Question 29

A graphic means of identifying how components flow into subassemblies and final products

Answer 29

Assembly chart

Question 30

A list of the operations necessary to produce a component with the material specified in the bill of material.

Answer 30

Route sheet

Question 31

An instruction to make a given quantity of a particular item

Answer 31

Work order

Question 32

A correction or modification of an
engineering drawing or bill of material

Answer 32

Engineering change notice (ECN)

Question 33

A system by which a product’s planned and
changing components are accurately identified.

Answer 33

Configuration management

Question 34

Software programs that tie together
many phases of product design and manufacture.

Answer 34

Product life cycle management (PLM

Question 35

—A way to design processes to optimize
interaction between firms and their customers

Answer 35

Process-chain-network (PCN) analysis

Question 36

A sequence of steps that provide value to process participants.

Answer 36

Process chain

Question 37

To enhance service efficiency, companies:

Answer 37

(1) limit options,
(2) delay customization,
(3) modularize,
(4) automate
(5) design for the “moment of truth.

Question 38

To form a decision tree:

Answer 38

(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.

Question 39

One of the arts of management is knowing when to move a product from
development to production; this move is known as

Answer 39

transition to production