CHAPTER 5 - CHAPTER 5: DESIGN OF GOODS AND SERVICES...

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CHAPTER 5: DESIGN OF GOODS AND SERVICES TRUE/FALSE 1. Regal Marine's attempts to keep in touch with customers and respond to the marketplace are made impossible because consumer tastes change and maritime engineering improves. False (Introduction, easy) 2. A product strategy may focus on differentiation, low-cost, or rapid response. True (Introduction, easy) 3. The goal of the product decision is to develop and implement a product strategy that meets the needs of the marketplace with a competitive advantage. True (Introduction, moderate) 4. Political/legal change and economic change are both factors influencing market opportunities for new products. True (Goods and services selection, easy) 5. The four phases of the product life cycle are incubation, introduction, growth, and decline. False (Goods and services selection, moderate) 6. In the maturity stage of the product life cycle, operations managers will be concerned with keeping sufficient capacity available for the product. False (Goods and services selection, moderate) 7. Relatively few new product ideas, perhaps only 1 in 250, become successfully marketed products. True (Goods and services selection, moderate) 8. 3M’s goal is to produce 30% of its profit from products introduced in the last 4 years. True (Introduction, difficult) 9. Computer-aided design (CAD) refers to the use of specialized computer programs to direct and control manufacturing equipment. False (Generating new products, moderate) {AACSB: Use of IT} 10. Virtual reality technology can improve designs less expensively than the use of physical models or prototypes. True (Generating new products, moderate) {AACSB: Use of IT} 11. Quality function deployment refers to first, determining what will satisfy the customer, and second, translating the customers’ desires into a target design. True (Product development, moderate) 12. Robust design is a method that ensures that small variation in production or assembly does not adversely affect the product. True (Issues for product design, moderate)
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13. Modular design exists only in tangible products; it makes no sense in services. False (Issues for product design, moderate) 14. One environmentally friendly approach to product design is to use lighter components. True (Issues for product design, moderate) {AACSB: Ethical Reasoning} 15. An operations manager's most ethical activity is to enhance productivity while delivering desired goods and services. Unfortunately, this activity is not environmentally sound. False (Issues for product design, moderate) {AACSB: Ethical Reasoning} 16. 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. True (Issues for product design, moderate) {AACSB: Ethical Reasoning} 17. Rapidly developing products and moving them to the market is part of time-based competition. True (Time-based competition, moderate)
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CHAPTER 5 - CHAPTER 5: DESIGN OF GOODS AND SERVICES...

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