CH 04

1. The stage in a product or service life cycle where some firms adopt a defensive research
posture is:
A) incubation
B) growth
C) maturity
D) saturation
E) decline

2. Which one of the following is not a factor of successful product and service design?
A) be aware of what the competitors are doing
B) be aware of what customers want
C) know what government regulations are
D) use computerized design techniques
E) know what new technologies are available

3. One possible disadvantage of modular design is:

A) training costs increase
B) failure diagnosis is more complex
C) the inability to disassemble some modules in order to replace a faulty part.
D) individual parts lose their identities
E) inventory problems arise

4. Which of the following is an issue that designers must take into account in product and
service design?
A) legal, environmental and ethical issues
B) reliability
C) standardization
D) range of operating conditions
E) all of the choices must be taken into account

Page 1
5. Design changes are most common in which stage(s) of the product life cycle?

I Growth
II Maturity
III Decline
A) I
B) I and II
C) II and III
D) I and III
E) I, II, and III

6. The usual phases for product and service design are which of the following?
I. Select core team
II. Idea generation
III. Market analysis
IV. Build a business case
V. Development
VI. Production process design
VII. Launch
A) II, III, V, VI, VII
B) I, II, V, VI, VII
C) II, IV, V, VI, VII
D) I, III, IV, VI, VII
E) I, IV, V, VI, VII

7. Which of the following is not a stage in the life cycle of products and services?
A) incubation
B) growth
C) adolescence
D) saturation
E) decline

8. Sony created the Walkman and thus developed a personal portable stereo market of
joggers and commuters. This was an example of which approach to finding new product
ideas?
A) Listening to market complaints
B) Gaps in the market
C) Exploring niche markets
D) Using new technology
E) Creating new market space

Page 2
 9. Which of the following is a disadvantage of standardization in product and service
design?
A) increased number of inventory items
B) increased training costs
C) decreased expenditures on perfecting designs
D) decreased product variety
E) all of the choices

10. The term that pertains to incorporating customer ideas in product design is:
A) TQM
B) CAD
C) QFD
D) robust design
E) reverse engineering

11. In a study of innovative projects at Hewlett-Packard, it was discovered that all of the
following were required ingredients for innovation EXCEPT:
A) successful sales strategies.
B) management support.
C) systematic product design process.
D) skilled and helpful people.
E) All of the choices are required ingredients

12. Which of the following is not a benefit of component commonality?

A) It increases reliability.
B) It provides savings in design time.
C) It provides savings in training time
D) It provides savings from bulk buying from suppliers
E) It reduces the inventory that dealers must carry

13. Ideas for new or improved designs can come from:

A) customers
B) competitors
C) research and development departments
D) employees
E) all of the choices are correct

Page 3
14. The advantages of standardization include which of the following?

I. Early freezing of designs

II. Fewer parts to deal with in inventory
III Reduced training cost and time
IV. Purchasing is more routine
A) I, II
B) I, IV
C) I, II, III
D) II, III, IV
E) I, II, III, IV

15. What does product and service design not usually involve?
A) Market and competitor analysis.
B) Build product prototypes, test, redesign
C) QFD (Quality Function Deployment/the voice of the customer)
D) Designing for mass-customization.
E) Conduct pilot production/service delivery runs.

16. Which of the following is not a typical source of ideas for new products/services?
A) Warranty claims
B) Marketing research
C) Inventory records
D) Reverse engineering
E) All of the choices are typical sources

17. Which of the following is not a potential source of competitive advantage from product
and service design?
A) shortening the time to market
B) designing environmentally friendly products
C) decreasing emphasis on component commonality
D) satisfying customer needs for product variety
E) all of the choices are sources of competitive advantage

Page 4
Answer Key
1. E
2. D
3. C
4. E
5. D
6. C
7. C
8. E
9. D
10. C
11. A
12. A
13. E
14. D
15. D
16. C
17. C

Page 5