OM 2

Question 1

Product

Answer 1

A need-satisfying offering of an
organization

May be a good or service

Question 2

Customers buy __________, not ______

Answer 2

Satisfaction ; parts

Question 3

Product Strategy Options

Answer 3

Product Differentiation

Low Cost

Rapid Response

Question 4

Generation of New Product
Opportunities (changes)

Answer 4

Economic change
Sociological and demographic change
Technological change
Political/legal change
Changes in
- market practice
- professional standards
- suppliers and distributors

Question 5

Product Components

Answer 5

Brand
Package
Product Idea
Physical Good
Features
Quality Level
Service

Question 6

Product Life Cycle

Answer 6

Introduction

Growth

Maturity

Decline

Question 7

What happens during the introduction Stage?

Answer 7

Fine-tuning
- research
- product development
- process modification and enhancement
- supplier development

Question 8

What happens during the growth stage?

Answer 8

➔ Product design begins to stabilize
➔ Effective forecasting of capacity
becomes necessary
➔ Adding or enhancing capacity may be
necessary

Question 9

➔ Competitors now established
➔ High volume, innovative production
may be needed
➔ Improved cost control, reduction in
options, paring down of product line

these are signs of a firm being in what stage?

Answer 9

Maturity Stage

Question 10

What must be done during the decline stage?

Answer 10

➔ Unless the product makes a special
contribution, must plan to terminate
offering

Question 11

___________ lists products in descending order of their individual dollar contribution to the firm.

Answer 11

Product by Value Analysis

Question 12

What are the Product Development Stages?

Answer 12

Idea generation
❖ Assessment of firm’s ability to carry out
❖ Customer Requirements
❖ Functional Specification
❖ Product Specifications
❖ Design Review
❖ Test Market
❖ Introduction to Market
❖ Evaluation

Question 13

What is Virtual Reality?

Answer 13

Computer technology used to develop
an interactive, 3-D model of a product.
➔ Especially helpful in design of layouts
(factory, store, home, office)

Question 14

This identifies what the customer wants and how the good/service will satisfy customer wants.

Answer 14

Quality Function Deployment

Question 15

_____________ provides basis for entry into the market and follows from marketing strategy.

Answer 15

Idea Generation Stage

Question 16

What occurs in the Customer Requirements Stage?

Answer 16

➔ Identifies & positions key product
benefits
◆ Stated in core benefits proposition (CBP)

➔ Identifies detailed list of product
attributes desired by customer

Question 17

In the ________________ stage, it defines product in terms of how the product would meet the desired attributes and it also identifies product’s engineering
characteristics

Answer 17

Functional Specification Stage

Question 18

What is value analysis?

Answer 18

➔ Focuses on design improvement during
production
➔ Seeks improvements leading either to a
better product or a product which can be
more economically produced.

Question 19

_____________________ determines how product will be made and gives physical specifications.

Answer 19

Product Specification Stage

Question 20

How is the Product Specification Stage defined?

Answer 20

Defined by engineering drawing

Question 21

Product design process using
cross-functional teams
◆ Marketing, engine➔ Product design process using
cross-functional teams
◆ Marketing, engineering,
manufacturing
➔ Translates customer preferences into
specific product characteristics
➔ Involves creating 4 tabular ‘Matrices’ or
‘Houses’
◆ Breakdown product design into
increasing levels of detail

These occur in which stage?

Answer 21

Quality Function Deployment

Question 22

How was organizing for product development done historically?

Answer 22

➔ Historically – distinct departments
◆ Duties and responsibilities are
defined
◆ Difficult to foster forward
thinking

Question 23

How was organizing for product development done historically?

Answer 23

Today – team approach
◆ Representatives from all
disciplines or functions
◆ Concurrent engineering – cross
functional team

Question 24

What are the benefits of environmentally friendly designs?

Answer 24

Benefits:
➔ Safe and environmentally sound
products
➔ Minimum raw material and energy
waste
➔ Product differentiation
➔ Environmental liability reduction
➔ Cost-effective compliance with
environmental regulations
➔ Recognition as good corporate citizen

Question 25

Green manufacturing involves?

Answer 25

➔ Make products recyclable
➔ Use recycled materials
➔ Use less harmful ingredients
➔ Use lighter components
➔ Use less energy
➔ Use less material

Question 26

What is time-based competition?

Answer 26

Product life cycles are becoming shorter.
Therefore, Faster developers of new products
gain on slower developers and obtain a
competitive advantage

Question 27

What are make-or-buy decisions?

Answer 27

➔ Decide whether or not you want (or
need) to produce an item
➔ May be able to purchase the item as a
“standard item” from another
manufacturer

Question 28

What are the Group Technology Benefits?

Answer 28

➔ Improved product design
➔ Reduced purchases
➔ Reduced work-in-process inventory
➔ Improved routing & machine loading
➔ Reduced setup & production times
➔ Simplified production planning &
control
➔ Simplified maintenance

Question 29

When are Decision trees useful?

Answer 29

➔ Particularly useful when there are a
series of decisions and outcomes which
lead to other decisions and outcomes.
➔ Considerations:
◆ Include all possible alternatives
and states of nature including
“doing nothing”
◆ Enter payoffs at end of branch
◆ Approach determining expected
values by “pruning” tree

Question 30

Steps in transition to production

Answer 30

➔ First issue: knowing when to move to
production!
➔ Second: must view product development
as evolutionary, not responsibility of
single individual/department
➔ Third: expect to need a trial production
period to work the bugs out
➔ Fourth: recognize that responsibility
must also transition

Question 31

Designing products at a
computer terminal or work
station
■ Design engineer
develops rough sketch
of product
■ Uses computer to draw
product
○ Often used with CAM

Answer 31

Computer - aided Design

Question 32

What is modular design?

Answer 32

○ Products designed in easily
segmented components.
○ Adds flexibility to both
production and marketing

Question 33

Benefits of CAD/CAM

Answer 33

○ Shorter design time
○ Database availability
○ New capabilities
■ Example: Focus more
on product ideas
○ Improved product quality
○ Reduced production costs

Question 34

What are the extensions of CAD?

Answer 34

○ Design for Manufacturing and
Assembly (DFMA)
○ 3-D Object Modeling
○ CAD/CAM – CAD info is
translated into machine control
instructions (CAM)