[100% Correct]
1. When opening the Excel version of Capstone®, you should do what to Macros? *Ans* Enable
10. What trend can be explicitly observed in the industry in which your company is operating?
*Ans* c. Products become smaller and smaller.
100. Investing in CCE/Six Sigma can *Ans* c. reduce labor and material costs.
101. Within the Process Management Initiatives, channel support systems *Ans* c. increase demand.
102. Benchmarking reduces *Ans* d. Administrative Cost.
103. Which of the following is an example of a TQM initiative? *Ans* c. Quality Function Deployment
Effort
104. Within the process management initiatives, concurrent engineering *Ans* d. reduces R&D cycle
time.
105. The situation analysis consists of ______ parts. *Ans* 5
106. The situation analysis is *Ans* a. a team exercise.
b. designed to help your group understand the current market conditions.
c. designed to help your group understand how the industry will evolve over the next 8 years.
d. a five part analysis.
107. Which three customer groups "ride the wave of technology" and are considered to be in the high
technology segments? *Ans* a. Performance, High End, and Size
,108. When plotting the segment locations for each round *Ans* a. the goal is to determine the ideal
spot location for each segment during the 8 years.
109. Which of the following questions is answered by the demand analysis? *Ans* c. Are the market
segments growing at the same rate?
11. On perceptual map, the percentage of customers interested in a product positioned outside of the
rough cuts of that product is *Ans* 0%
110. Two points that should be considered in your strategy are *Ans* c. it is easy to confuse unit
market size with dollar market size.
111. What is the total cost in dollars for adding 1.0 million units of capacity to a production line with an
automation level of 1.0 and floor space costs per unit of $6? Assume automation costs per unit of $4.
*Ans* b. $10 million
1 000 000 (6 +4*1) = 10 000 000
112. If you are currently producing 100,000 units and your automation level is 10, how much will it cost
you to double your capacity? *Ans* b. $4,600,000
100 000 (6 + 4*10) = 4 600 000
113. What is the right formula for capacity investment? *Ans* d. Investment = Capacity x [$6 + ($4 x
Automation)]
114. If your current capacity is 10,000 units and your automation level is 5.0, what is the difference of
the investment between doubling your capacity and doubling your automation level? *Ans* a.
$60,000
10 000* (6+4*5) = 260 000, 10 000 * 4 *(10-5)=200 000, 260 000 - 200 000 = 60 000
,115. If you are currently producing 100,000 units at an automation level of 5, how much would it cost to
maximize automation? *Ans* c. $2,000,000
100 000 * 4 *(10 -5) = 2 000 000
116. As a manager you need to change the automation level of your segment from 2 to 5. The line has a
capacity of 2 million. How much would it cost? *Ans* b. $24 million
2 000 000 * (5-2) *4 = 24 000 000
117. Rapid movement of an existing product on the Perceptual Map requires *Ans* b. low
automation levels.
118. If a product's Price was $20, its Material $8, and its Labor $7, the Margin Per Unit would be:
*Ans* d. $5.
20 - (8 + 7) = 5
119. If the price/product is $10 and the material cost/product is $2 and the labor cost/product is $3,
what is the margin/product? *Ans* e. none of the above
10 - (2 + 3) = 5
12. MTBF is measured in *Ans* b. hour increments.
120. In the Capstone® simulation, what are the components of a product's minimum material cost?
*Ans* b. Reliability component cost and positioning component cost
, 121. The reliability component cost of a product with a 17,000 hour MTBF rating is: *Ans* a. $5.10.
17 000 * 0.3 /1 000 = 5.1
122. The best case margin potential for a product with a top price of $30 and a minimum cost of goods
sold of $15 is: *Ans* a. $45.
b. $2.
c. $450.
d. $.50.
e. none of the above. <---------
123. A point or some points you consider for your strategy are *Ans* a. strive to give your customers
the top two buying criteria.
b. the perceptual map is more important as a rough cut consideration than a fine cut distinction.
c. maximize the effectiveness of R&D, to achieve higher demand you must have a substantially better
offer, it does not matter how good your product is if you stock out.
124. In Capstone®, the spreadsheets allow team members to *Ans* a. make changes to variables.
b. observe the results of changes made to variables.
125. Each of the spreadsheets *Ans* a. work independently.
b. depend on values entered in other spreadsheets.
126. New products are created on which spreadsheet? *Ans* b. Research and Development
127. Using the R&D Spreadsheet to design your products, you have which of the following projects to
choose from? *Ans* a. Repositioning
b. Invention
c. Reliability adjustment