1. Global teams provide diversity while eliminating conflicts and miscommunication.

2. A 'House of Quality' is achieved when no department in a single location has more than 15%
rejects.
3. One of the main advantages of standardization is that it increases the potential variety of
products.
4. A disadvantage of standardization is the possibility of standardizing designs too early, may make
it difficult to modify in the future.
5. Reducing consumer choices makes service more efficient.
6. Product failures can be easier to remedy with modular design.
7. One motivation for an organization to redesign its product or service is to avoid the alternative of
downsizing the organization.
8. Most of the time what is called product or service design is actually a redesign of an existing
product or service.
9. A service blueprint is quite similar to an architectural drawing.
10. The process of dismantling and inspecting a competitor's product to discover product
improvement is called benchmarking.
11. To save money, it is essential that designers revise the production capabilities to meet the
requirements of the new products.
12. Basic research is done with the expectation that discoveries will have near-term commercial
application.
13. "Design for operations" takes into account the capabilities of the organization to produce or
deliver a given product or service. PRODUCTION
14. Consumers tend to resist purchasing products containing recycled materials.
15. One approach to extending a products life cycle is to promote alternate uses of the product.
16. "Quality Function Deployment" is a structured approach that guarantees that the highest quality
product or service will be designed.
17. Product liability means that a manufacturer is liable for any injuries and damages caused by a
faulty product because of poor workmanship or design.
18. Standardization refers to the extent to which there is absence of variety in a product, service, or
process.
19. 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.
1) Forecasting techniques generally assume an existing causal system that will continue to exist in
the future.
2) Forecasts for groups of items tend to be less accurate than forecasts for individual items because
forecasts for individual items don't include as many influencing factors.
3) Forecasts help managers plan both the system itself and provide valuable information for using
the system.
4) Organizations that are capable of responding quickly to changing requirements can use a shorter
forecast horizon and therefore benefit from more accurate forecasts.
5) Forecasts based on time series (historical) data are referred to as associative forecasts.
6) Time series techniques involve identification of explanatory variables that can be used to predict
future demand.
7) A consumer survey is an easy and sure way to obtain accurate input from future customers since
most people enjoy participating in surveys.
8) The Delphi approach involves the use of a series of questionnaires to achieve a consensus forecast.
9) The shorter the forecast period, the more accurately the forecasts tend to track what actually
happens.
10) Forecasting techniques that are based on time series data assume that future values of the series
will duplicate past values.
11) Forecasts based on an average tend to exhibit less variability than the original data.
12) The naive approach to forecasting requires a linear trend line.
13) In order to update a moving average forecast, the values of each data point in the average must be
known.
14) Forecasts of future demand are used by operations people to plan capacity.
15) An advantage of a weighted moving average is that recent actual results can be given more
importance than what occurred a while ago.
1. MRP works best if the inventory items have dependent demand.
2. Independent demand tends to be more 'lumpy' than dependent demand meaning that we need
large quantities followed by periods of no demand.
3. Lumpy demand for components results primarily from the periodic scheduling of batch
production.
4. The master production schedule states which end items are to be produced both when and how
many.
5. Net requirements equal gross requirements minus safety stock.
6. The master schedule needs to be for a period long enough to cover the stacked or cumulative lead
time necessary to produce the end items.
7. MRP, considering inventory position, bills of material, open purchase orders and lead times
guarantees a feasible production plan if the inputs to MRP are accurate.
8. The bill of materials indicates how much material will be needed to produce the quantities on a
given master production schedule.
9. A bill of materials contains a listing of all the assemblies, parts, and materials needed to produce
one unit of an end item.
10. The inventory records contain information on the status of each item by time period.
11. An assembly-time chart indicates gross and net requirements taking into account the current
available inventory.
12. Gross requirements for any given component is equal to the net requirements of that component's
immediate parent multiplied by the quantity per parent.
13. The term pegging refers to identifying the parent items that have generated a given set of material
requirement for a part or sub assembly.
14. One reason that accurate bills of material are important is that errors at one level become
magnified at lower levels because of the multiplication process used by MRP.
15. One of the primary output reports of MRP concerns changes to planned orders.
The goal of value analysis is to find ways of _______.
I. Reducing the cost of parts and materials
II. Improving the performance of the product or service
III. Incorporating multiple cultural values in global system design
a) Both I and III
b) Both I and II

One way to increase reliability is to:

a) improve component design
b) increase the number of service stations
c) increase mean repair time
d) increase the number of dependent components
e) none of the above

Which of the following is not a reason for redesigning a product or service?

A. to reduce labor or material cost
B. to increase the level of employee satisfaction
C. to increase the level of customer satisfaction
D. to attract and increase customer demand

A disadvantage of global teams for product design is that:

A. Customers may have different needs in different countries
B. The product designed may have increased marketability and utility
C. The diversity of an international team may be a detriment
D. Ease of face to face meetings is absent since members are located everywhere
E. Technology allows constant contact with team members

Mobile phones have evolved from devices intended to place and receive phone calls into handheld
multimedia communications devices, but in the eyes of some customers these new features make the
phones less desirable. This is an example of _________.
A. robust design
B. creeping featurism
C. sustainable design
D. quality function deployment
E. component commonality

One step that isn't part of service blueprinting is:

A. Eliminate boundaries for the service and decide on the level of interaction needed
B. Identify and determine the sequence of customer and service actions and interactions
C. Develop time estimates for each phase of the process
D. Understand the time variability involved
E. Identify potential failure points and develop a plan to minimize them

The research and development activity which starts after positive research results are available and
attempts to turn these results into useful commercial applications is:
A. basic research
B. applied research
C. development
The advantages of standardization include which of the following?
(I.) The opportunity to freeze design at a very early stage
(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

Products or services with a high degree of similarity of features and components are called:
A. generic
B. copy-cat
C. rip-offs
D. product families
E. product/service matrix

"Must have", "expected" and "excitement" characteristics are categories in the ____ model.
A. Bi-polar
B. Kano
C. Pareto
D. Quality
E. Service Matrix

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

Ideas for new or improved designs can come from:

A. customers
B. competitors
C. research and development departments
D. production departments
E. all of the above

The term ‘standardization' is closely associated with:

A. customization
B. high cost
C. longer lead times
D. variety
E. interchangeability
Service design generally differs from product design in which of the following ways?
A. Service design tends to focus on tangible factors.
B. There is less latitude in detecting and correcting errors prior to delivery.
C. There is a lesser requirement to be aware of competitors' offerings.
D. There is less visibility to customers.
E. There is no difference

The structural approach for integrating customer requirements into every aspect of product development
is known as:
A. total quality management
B. customer satisfaction
C. quality function deployment
D. customer integration
E. a product development team

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 above

One of these is not a characteristic of a well-designed service system:

A. User friendly
B. Robust
C. Distributed computer networks
D. Cost effective
E. Easy to sustain

Which of the following is not one of the phases of product design and development?
A. specify product specifications
B. conduct market test
C. specify process specifications
D. conduct design review
E. performance applied research

Forecasts based on judgment and opinion don't include

A. executive opinion
B. salesperson opinion
C. second opinions
D. customer surveys
E. Delphi methods
In business, forecasts are the basis for:
A. capacity planning
B. budgeting
C. sales planning
D. production planning
E. all of the above
Which of the following features would not generally be considered common to all forecasts?
A. Assumption of a stable underlying causal system.
B. Actual results will differ somewhat from predicted values.
C. Historical data is available on which to base the forecast.
D. Forecasts for groups of items tend to be more accurate than forecasts for individual items.
E. Accuracy decreases as the time horizon increases

One reason for using the Delphi method in forecasting is to:

A. avoid premature consensus (bandwagon effect)
B. achieve a high degree of accuracy
C. maintain accountability and responsibility
D. be able to replicate results
E. prevent hurt feelings

Which phrase most closely describes the Delphi technique?

A. associative forecast
B. consumer survey
C. series of questionnaires
D. developed in India
E. historical data

The forecasting method which uses anonymous questionnaires to achieve a consensus forecast is:
A. sales force opinions
B. consumer surveys
C. the Delphi method
D. time series analysis
E. executive opinions

Averaging techniques are useful for:

A. distinguishing between random and non-random variations
B. smoothing out fluctuations in time series
C. eliminating historical data
D. providing accuracy in forecasts
E. average people

Using the latest observation in a sequence of data to forecast the next period is:
A. a moving average forecast
B. a naive forecast
C. an exponentially smoothed forecast
D. an associative forecast
E. regression analysis

Moving average forecasting techniques do the following:

A. immediately reflect changing patterns in the data
B. lead changes in the data
C. smooth variations in the data
D. operate independently of recent data
E. assist when organizations are relocating
Which is not a characteristic of simple moving averages applied to time series data?
A. smoothes random variations in the data
B. weights each historical value equally
C. lags changes in the data
D. requires only last period's forecast and actual data
E. smoothes real variations in the data

In order to increase the responsiveness of a forecast made using the moving average technique, the
number of data points in the average should be:
A. decreased
B. increased
C. multiplied by a larger alpha
D. multiplied by a smaller alpha
E. eliminated if the MAD is greater than the MSE

The primary method for associative forecasting is:

A. sensitivity analysis
B. regression analysis
C. simple moving averages
D. centered moving averages
E. exponential smoothing

Which term most closely relates to associative forecasting techniques?

A. time series data
B. expert opinions
C. Delphi technique
D. consumer survey
E. predictor variables

Which of the following corresponds to the predictor variable in simple linear regression?
A. regression coefficient
B. dependent variable
C. independent variable
D. predicted variable
E. demand coefficient

Which of the following is not necessarily an element of a good forecast?

A. estimate of accuracy
B. timeliness
C. meaningful units
D. low cost
E. written