- Description
OPS 571T Wk 1 – Practice: Week 1 Knowledge Check
Which phase of the generic development process involves construction and evaluation of multiple preproduction versions of the product?
Multiple Choice
Testing and refinement
Concept development
System-level design
Design detail
Production ramp-up
The Tuff Wheels was getting ready to start its development project for a new product to be added to their small motorized vehicle line for children. The new product is called the Kiddy Dozer. It will look like a miniature bulldozer, complete with caterpillar tracks and a blade. Tuff Wheels has forecasted the demand and the cost to develop and produce the new Kiddy Dozer. The table below contains the relevant information for this project.
Development cost $ 1,000,000
Estimated development time 9 months
Pilot testing $ 200,000
Ramp-up cost $ 400,000
Marketing and support cost $ 150,000 per year
Sales and production volume 60,000 per year
Unit production cost $ 100
Unit price $ 170
Interest rate 8 %
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Tuff Wheels also has provided the project plan shown below. As can be seen in the project plan, the company thinks that the product life will be three years until a new product must be created.
Assume all cash flows occur at the end of each period.
A process that emphasizes cross-functional integration and concurrent development of a product and its associated processes is known as ___________. (Choose the correct answer to fill in the blank.)
Multiple Choice
cross-functional design
concurrent engineering
integrated process planning
integrated product planning
team planning
Similarity of projects allows for a streamlined and highly structured development process in which variant of the generic product development process?
Multiple Choice
Technology-push products
Customized products
Complex systems
Quick-build products
Process-intensive products
Concept development assumes a proven technology in which variant of the generic product development process?
Multiple Choice
Technology-push products
Quick-build products
Complex systems
Platform products
Process-intensive products
A reason that firms must develop more new products than ever is which of the following?
Multiple Choice
Product life cycles are shorter
Commitments to joint venture partners
They are replacing old customers with new ones
To amortize heavy investments in development labs
The increased difficulty of defending patents and trade names
Which of the following is primarily used to help design products that will connect product attributes with customer desires?
Multiple Choice
Phase 0: Planning
House of quality matrix
Value analysis/value engineering
Concurrent engineering
System-level design
Economic analysis of product development projects is useful in which of the following circumstances?
Multiple Choice
Factory location
Distribution decisions
Go/no-go milestones
Demand estimation
Pricing
Advocates of financial modeling of product design projects argue that:
Multiple Choice
Financial analysis focuses on measurable quantities only.
Financial analysis brings discipline and control to the product development process.
Sufficiently rigorous financial analysis can accurately forecast the product’s profit potential.
Financial analysis is as solid as the assumptions that go into the model.
Financial analysis nurtures innovation and creativity.
Performance measures discussed for development projects does not include
Multiple Choice
Frequency of new product introductions
Yield
Percentage sales coming from very old products
Cost of materials and tooling
conformance – reliability in use
What is it about service processes that makes their design and operation so different from manufacturing processes?
Multiple Choice
Lack of skilled personnel
Poor management
Complexity of the processes
Lack of automated equipment
Direct customer involvement in the process
System integration and validation are an important step in which variant of the generic product development process?
Multiple Choice
Technology-push products
Customized products
Complex systems
Quick-build products
Process-intensive products
Which of the following is a characteristic of concurrent engineering?
Multiple Choice
Integrated computer-assisted design
Using automated guided vehicles
Separate development teams working at once
Having an excellent forecasting system
The design-build-test cycle
The aim of quality function deployment (QFD) is:
Multiple Choice
To facilitate house of quality analysis
To provide value analysis/value engineering input
To integrate design for manufacturing and assembly (DFMA)
To facilitate better cooperation between business functions
To get the voice of the customer into the design of a product
Design for manufacturing and assembly delivers product improvements by emphasizing which of the following?
Multiple Choice
Reducing product quality during the assembly process
Simplification of the product by reducing the number of separate parts
Reducing equipment in the production process
Designing products so they can be manufactured by a virtual factory
Designing products that customers will want
Sensitivity analysis of the base-case financial model is a useful tool for which of the following reasons?
Multiple Choice
To determine how long the development process can profitably last
To understand how many technical people are needed to make the project a success
To help understand the basic trade-offs of resources committed and cash received
To identify the necessary product launch date
To set marketing and sales budgets
The most basic categories of cash flow for a typical new product do not include:
Multiple Choice
Depreciation
Ramp-up cost
Development cost
Sales revenue
Marketing cost
What dimension of competitiveness does quality in product design affect?
Multiple Choice
Engineering hours per project
The cost of ongoing service
Responsiveness to customer needs
Aesthetics of design
None of these