Q1
Which of the following items is not a key consideration in making a process selection decision?
Consider the availability and cost of labor Consider market conditions. Consider capital
requirements. Consider the state of technology for product not process In a plant-within-a-plant
configuration, the plant is divided into sub-plants specializing in making certain types of
products in order to increase throughput and customer responsiveness
Answer: d. Consider the state of technology for product not process =Consider the
state of technology for both process and product
Q2
Which of the following statements is incorrect? In Quality Function Deployment, the customer
attributes are converted to Engineering characteristics (ECs) that are measurable and specific.
DFM is also known as the "House of Quality." Modular design makes it possible to have
relatively high product variety and low component variety. In QFD, the relative performance of
competitors is evaluated in order to determine how the company's product performs as
compared to its competitors. Usefulness is described in terms such as product features,
performance, and reliability.
Answer: b. DFM is also known as the "House of Quality."
Q3
Which of the following statements is incorrect? Attaining a competitive advantage via the
operations side of the business often involves the development of patented or proprietary
technology or equipment. An effective supply chain strategy should be aimed at achieving a
sustainable competitive advantage for only the final customer in the supply chain. Sustainability
refers to minimizing or eliminating the environmental impact of operations Attaining a
competitive advantage via the operations side of the business often involves having the ability
to serve a new market before competitors.
Answer: b. An effective supply chain strategy should be aimed at achieving a
sustainable competitive advantage for only the final customer in the supply chain.
=An effective supply chain strategy should be aimed at achieving a sustainable
competitive advantage for the entire supply chain.
, Q4
Which of the following statements is incorrect? The process design phase should occur
simultaneously with product design. Simultaneous process and product design will help
minimize product introduction lead times. In the pilot production and testing phase, prototypes
need to be built in order to evaluate. Simultaneous process and product design may be more
problematic because the design may be incompatible with the manufacturing equipment.
Answer: d. Simultaneous process and product design may be more problematic
because the design may be incompatible with the manufacturing equipment.
Q5
Which of the following statements is incorrect? Design greatly affects operations because
existing processes and products can constrain the technology available for new products.
Product design refers to either a physical, manufactured product or a service. Streamlining the
number of similar parts helps minimize the inadvertent use of the wrong part, reduces
inventory costs as less different storage locations are needed, and allows a firm to potentially
gain price concessions as larger order quantities can be placed. In the market pull strategy for
new product introduction, the market demands a product and a company has to figure out how
to make it (even if they do not currently have the technology to do so OR the manufacturing
processes must be invented). The market push strategy is a push strategy because the market
wants the product and is therefore pushing the product to market as compared
Answer: e. The market push strategy is a push strategy because the market wants the
product and is therefore pushing the product to market as compared to the supplier
trying to force the market to want their product. = The market pull strategy is a pull
strategy because the market wants the product and is therefore pulling the product to
market as compared to the supplier trying to force the market to want their product.
Q6
Which of the following statements is incorrect? A firm's operations strategy is usually derived
from its business strategy. A firm's corporate strategy is usually derived from its business
strategy. An operations strategy usually contains (among other things) objectives and strategic
decisions. As an organization's strategies flow from corporate strategy to determinations of
distinctive competencies, the strategies become more and more specific.
Answer: b. A firm's corporate strategy is usually derived from its business strategy.
Q7
Which of the following statements is incorrect? At the end of the concept development phase,
one of the concepts will be selected for the next development stage. The product design phase
is concerned with designing the new product/service. Supplier chain collaboration includes
working with customers to identify important & latent needs. The drawings and specifications
derived in the process design phase will be used to build production prototypes for testing and
evaluation.
Answer: d. The drawings and specifications derived in the process design phase will be
used to build production prototypes for testing and evaluation.