On This Page
This set of Product Design and Value Engineering Multiple Choice Questions & Answers (MCQs) focuses on Product Design And Value Engineering Set 3
Q1 | _____ is the stage of new-product development in which the product and marketing program are tested in more realistic market settings.
- Business analysis
- Idea generation
- Test marketing
- Marketing strategy development
Q2 | All of the following are accurate descriptions of test marketing, except which one?
- Test marketing is the stage at which the product and marketing program are introduced into realistic market settings.
- Test marketing by consumer-packaged goods firms has been increasing in recent years.
- Test marketing costs can be high, and it takes time that may allow competitors to gain advantages.
- Companies often do not test market simple line extensions.
Q3 | Introducing a new product into the market is called _____.
- test marketing
- new product development
- experimenting
- commercialization
Q4 | A company getting ready to launch a new product must make several decisions. However, the company must first decide on _____.
- whether to launch the product in a single location
- whether to launch the product in a region
- whether to launch the product into full national or international distribution
- timing of the new product introduction
Q5 | _____ is a new-product development approach in which one company department works to complete its stage of the process before passing the new product along to the next department and stage.
- Team-based product development
- Simultaneous product development
- Sequential product development
- Product life-cycle analysis
Q6 | In order to get their new products to market more quickly, many companies are adopting a faster, team-oriented approach called _____.
- sequential product development
- simultaneous product development
- commercialization
- introduction timing
Q7 | All of the following statements are accurate descriptions of the simultaneous product development approach to new product development, except which one?
- The simultaneous product development approach is also known as collaborative product development.
- Company departments work closely together through cross-functional teams.
- Companies assemble a team of people from various departments that stay with the new product from start to finish.
- Companies often pass the new product from department to department in each stage of the process.
Q8 | All of the following are accurate descriptions of new-product development approaches used by companies in the commercialization phase of the process, except which one?
- New-product development teams in the simultaneous approach tend to stay with the new product from start to finish.
- In the simultaneous approach, top management gives the product development team general strategic direction but no clear-cut product idea or work plan.
- In order to get their new products to market more quickly, many companies are adopting a faster approach called sequential product development.
- The simultaneous team-based approach can be riskier and more costly than the slower, more orderly sequential approach.
Q9 | All of the following are limitations of the simultaneous team-based approach to new-product development, except which one?
- Superfast product development can be riskier and more costly than the slower, more orderly sequential approach.
- This approach often creates increased organizational tension and confusion.
- The objective of this approach is to ensure that rushing a product to market doesn't adversely affect its quality.
- Top management gives the product development team a clear-cut product idea or work plan.
Q10 | All of the following statements accurately reflect the requisites of new-product success, except which one?
- Thinking of a few good ideas, turning them into products, and finding customers for them.
- A systematic approach for finding new ways to create value for target consumers, from generating and screening new-product ideas to creating and rolling out want-satisfying products to customers.
- New-product success requires a total-company commitment.
- At firms known for their new-product success, their culture does not encourage, support, and reward innovation.
Q11 | ____ begins when the company finds and develops a new-product idea. During product development, sales are zero and the company's investment costs mount.
- Introduction
- Growth
- Maturity
- Product development
Q12 | _____ is a period of slow sales growth as the product is introduced into the market. Profits are nonexistent in this stage because of the heavy expenses of product introduction.
- Growth
- Product development
- Maturity
- Introduction
Q13 | ____ is a period of market acceptance and increasing profits.
- Product development
- Maturity
- Growth
- Introduction
Q14 | _____ is the course of a product's sales and profits over its lifetime, involving five distinct stages: product development, introduction, growth, maturity, and decline.
- Product life cycle
- Maturity
- Growth
- Decline
Q15 | What does the term PLC stands for?
- Product life cycle
- Production life cycle
- Product long cycle
- Production long cycle
Q16 | Which of the following is stage of Product Life Cycle?
- Introduction Stage
- Growth stage
- Decline stage
- All of the above
Q17 | The purchase cost of product is included into cost of maintenance and is subtracted from discounted alvage value to calculate _____
- Purchase cycle cost
- Cost of responsiveness
- Life cycle cost
- Assurance cost
Q18 | Value for Value Engineering analysis purposes is defined as ________.
- Purchase value
- Saleable value
- Depreciated value
- Function/Cost
Q19 | Material Requirements Planning DOES NOT include _______.
- Material price
- Bill of material
- Inventory level
- Production schedule
Q20 | In Total Productive Maintenance, Unplanned downtime Losses include;
- Equipment Breakdown
- Shift Changes
- Unplanned maintenance
- Options (A) & (C)
Q21 | Productivity increases when __________.
- inputs increase while outputs remain the same
- inputs decrease while outputs remain the same
- outputs decrease while inputs remain the same
- inputs and outputs increase proportionately
Q22 | Which of these is correct with respect to a product developed or a service performed?
- Neither bad grade nor quality is acceptable
- Grade and quality is the same thing.
- Bad quality is acceptable, but bad grade is not.
- Bad grade is acceptable, but bad quality is not.
Q23 | Value analysis examines the ________.
- Design of every component
- Method of manufacturing
- Material used
- All of the above
Q24 | Value analysis is normally applied to _____.
- New products
- Old products
- Future products
- Both (A) and (B)
Q25 | Value can be defined as the combination of _______ which ensures the ultimate economy and satisfaction of the customer.
- Efficiency, quality, service and price
- Efficiency, quality, service and size
- Economy, quality, service and price
- Efficiency, material, service and price