Operations Management - Chapter 4

Global teams provide diversity while eliminating conflicts and miscommunication.

FALSE
Using globally diverse design teams increases the risks of conflicts and miscommunication.

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

FALSE
The house of quality is a means of integrating the voice of the customer into the product or service development process.

Concurrent Engineering is another term for sequential development.

FALSE
Concurrent engineering involves simultaneous product and production development.

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

FALSE
Standardization reduces the variety of products.

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

TRUE
Standardization locks firms into designs that aren't easily changed.

Reducing consumer choices makes service more efficient.

TRUE
Efficiency comes from the standardization that results from reduced consumer choices.

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

FALSE
Modular designs make inventory management easier and cheaper.

Product failures can be easier to remedy with modular design.

TRUE
Modular designs make it easy to change only portions of the design.

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

TRUE
The threat of downsizing often spurs product or service redesign.

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

TRUE
CAD tends to greatly increase designers' productivity.

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

TRUE
Usually the core product or service remains relatively unchanged even though other features are modified or enhanced.

A service blueprint is quite similar to an architectural drawing.

TRUE
A service blueprint shows the basic customer and service actions involved in a service operation.

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

FALSE
Dismantling and inspecting a competitor's product to discover product improvement is called reverse engineering.

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

FALSE
Saving money requires designers to ensure that new products can be produced using existing production capabilities.

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

TRUE
Both product and process must be considered in the product/service design question.

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

TRUE
Applied research is aimed at commercializing basic research.

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

FALSE
Basic research is done with no clear expectations regarding commercial application.

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

TRUE
Design for production is important to ensure that product or service design decisions are feasible.

Consumers tend to resist purchasing products containing recycled materials.

FALSE
Consumers are beginning to respond positively when informed that their purchases contain recycled materials.

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

TRUE
Concurrent engineering people concerned with manufacturing are actively engaged in the design phase.

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

FALSE
Concurrent engineering means that engineers, marketing, manufacturing and purchasing personnel often are jointly involved in the product design.

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

TRUE
Alternate uses extend product life cycles.

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

FALSE
Quality Function Deployment ensures that the voice of the customer is integrated into the product or service design question.

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
Product liability is a serious issue for manufacturers.

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

TRUE
Reverse engineering is a legitimate means of evaluating the competitive landscape.

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

TRUE
Product or process innovations often result from deliberate R&D programs.

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

TRUE
Standardization reduces variety and leads to greater efficiency.

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

TRUE
Re-manufacturing is a way of increasing sustainability.

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
How long a product stays in a particular phase of its life cycle depends greatly on the rate of technological change.

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

FALSE
Robust designs perform satisfactorily across a wide range of conditions.

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

FALSE
Taguchi design methods involve designing products that are relatively insensitive to environmental factors.

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

FALSE
QFD relates customer requirements to product designs and the capabilities necessary to carry these designs out.

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
QFD matrices link customer requirements with other product/process design elements.

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

TRUE
Customer contact is a critical service design issue.

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

TRUE
Greater reliability translates into a greater likelihood of the product working in normal conditions.

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

TRUE
Most business organizations focus on applied rather than basic research.

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

FALSE
Services can benefit from commonality in service elements.

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

FALSE
It is the lack of standardization that can at times lead to serious difficulties and competitive struggles.

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

FALSE
Failure means that the part or item does not function as it should.

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

TRUE
Reliable designs can be counted on to work over time.

Reliability can be improved by the use of backup components.

TRUE
Adding a backup component is often cheaper than increasing the reliability of a given component.

Delayed differentiation and modular design are tactics for mass customization.

TRUE
These allow variety without giving up too much in the way of standardization.

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

FALSE
Life-cycle assessment involves assessing the environmental impact of a product or service as it goes through its useful life.

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
Life-cycle assessment involves assessing the environmental impact of a product or service as it goes through its useful life.

The three R's - Reduce, Re-use and Recycle - are more applicable in service design than in product design.

FALSE
Services cannot be re-used or recycled.