Chapter 04 - Product and Service Design

Chapter 04
Product and Service Design


True / False Questions

1. Global teams provide diversity while eliminating conlicts and miscommunication.
FALSE

AACSB: MD
Difficulty: Medium
TLO: 14
Taxonomy: Knowledge

!. " #$ouse o %uality& is achieved when no department in a single location has more than
1'( re)ects.
FALSE

Difficulty: Eay
TLO: !
Taxonomy: Knowledge

*. Concurrent +ngineering is another term or se,uential development.
FALSE

Difficulty: Eay
TLO: !
Taxonomy: Knowledge

4. -ne o the main advantages o standardi.ation is that it increases the potential variety o
products.
FALSE

Difficulty: Medium
TLO: 4
Taxonomy: Knowledge

4-1
Chapter 04 - Product and Service Design
'. " disadvantage o standardi.ation is the possibility o standardi.ing designs too early/
which may ma0e it diicult to modiy in the uture.
TRE

Difficulty: Medium
TLO: 4
Taxonomy: Knowledge

1. 2educing consumer choices ma0es service more eicient.
TRE

Difficulty: Eay
TLO: 14
Taxonomy: Knowledge

3. 4odular design increases costs o purchasing and controlling inventory compared to non-
modular.
FALSE

Difficulty: Medium
TLO: 4
Taxonomy: Knowledge

5. Product ailures can be easier to remedy with modular design.
TRE

Difficulty: Medium
TLO: 4
Taxonomy: Knowledge

6. -ne motivation or an organi.ation to redesign its product or service is to avoid the
alternative o downsi.ing the organi.ation.
TRE

Difficulty: Eay
TLO: "
Taxonomy: Knowledge

4-!
Chapter 04 - Product and Service Design
10. " ma)or beneit o Computer "ided Design 7C"D8 is the increased productivity o
designers.
TRE

AACSB: #T
Difficulty: Eay
TLO: 1$
Taxonomy: Knowledge

11. 4ost o the time what is called product or service design is actually a redesign o an
e9isting product or service.
TRE

Difficulty: Eay
TLO: "
Taxonomy: Knowledge

1!. " service blueprint is ,uite similar to an architectural drawing.
TRE

AACSB: %T
Difficulty: Eay
TLO: 1&
Taxonomy: Knowledge

1*. :he process o dismantling and inspecting a competitor&s product to discover product
improvement is called benchmar0ing.
FALSE

Difficulty: Eay
TLO: !
Taxonomy: Knowledge

4-*
Chapter 04 - Product and Service Design
14. :o save money/ it is essential that designers revise the production capabilities to meet the
re,uirements o the new products.
FALSE

AACSB: %T
Difficulty: Medium
TLO: 1$
Taxonomy: Knowledge

1'. 4any ;S manuacturers are now shiting their ocus rom products to both product and
process improvements.
TRE

Difficulty: Medium
TLO: "
Taxonomy: Knowledge

11. "pplied research has the ob)ective o achieving commercial applications or new ideas.
TRE

Difficulty: Eay
TLO: !
Taxonomy: Knowledge

13. <asic research is done with the e9pectation that discoveries will have near-term
commercial application.
FALSE

Difficulty: Eay
TLO: !
Taxonomy: Knowledge

4-4
Chapter 04 - Product and Service Design
15. =Design or production= ta0es into account the capabilities o the organi.ation to produce
or deliver a given product or service.
TRE

Difficulty: Eay
TLO: 1$
Taxonomy: Knowledge

16. Consumers tend to resist purchasing products containing recycled materials.
FALSE

Difficulty: Medium
TLO: '
Taxonomy: Knowledge

!0. =Concurrent engineering= brings people concerned with manuacturing into the design
phase earlier than in the =over-the-wall= approach.
TRE

Difficulty: Eay
TLO: 1$
Taxonomy: Knowledge

!1. =Concurrent engineering= means that at least two engineers are involved in product design
at the same time.
FALSE

Difficulty: Eay
TLO: 1$
Taxonomy: Knowledge

4-'
Chapter 04 - Product and Service Design
!!. -ne approach to e9tending a product&s lie cycle is to promote alternate uses o the
product.
TRE

Difficulty: Eay
TLO: '
Taxonomy: Knowledge

!*. =%uality >unction Deployment= is a structured approach that guarantees that the highest
,uality product or service will be designed.
FALSE

AACSB: %T
Difficulty: Eay
TLO: !
Taxonomy: Knowledge

!4. Product liability means that a manuacturer is liable or any in)uries and damages caused
by a aulty product because o poor wor0manship or design.
TRE

Difficulty: Medium
TLO: '
Taxonomy: Knowledge

!'. :he process o dismantling and inspecting a competitor&s product to discover
improvement is called reverse engineering.
TRE

Difficulty: Eay
TLO: !
Taxonomy: Knowledge

4-1
Chapter 04 - Product and Service Design
!1. 2esearch and development 72?D8 reers to organi.ed eorts that are directed toward
increasing scientiic 0nowledge and product 7or process8 innovation.
TRE

Difficulty: Eay
TLO: !
Taxonomy: Knowledge

!3. Standardi.ation reers to the e9tent to which there is absence o variety in a product/
service/ or process.
TRE

Difficulty: Eay
TLO: 4
Taxonomy: Knowledge

!5. 2e-manuacturing reers to removing some o the components o old products and reusing
them in new products.
TRE

Difficulty: Eay
TLO: (
Taxonomy: Knowledge

!6. :he demand or a product and the rate o technological change have signiicant impact on
the length o a given phase o the product lie cycle.
TRE

Difficulty: Eay
TLO: '
Taxonomy: Knowledge

4-3
Chapter 04 - Product and Service Design
*0. 2obust design describes a product that will perorm satisactorily so long as it is used in a
very narrow range o conditions.
FALSE

Difficulty: Eay
TLO: 1$
Taxonomy: Knowledge

*1. :aguchi design methods involve identiying the optimal operating or environmental
conditions or a given product.
FALSE

Difficulty: Medium
TLO: 1$
Taxonomy: Knowledge

*!. %uality unction deployment 7%>D8 is based on a set o standards which relate customer
re,uirements to company capabilities.
FALSE

Difficulty: )a*d
TLO: !
Taxonomy: Knowledge

**. :he ,uality unction deployment 7%>D8 matrices are oten reerred to as the =$ouse o
%uality= because/ when completed/ they =house= all o the customer&s ,uality re,uirements.
FALSE

Difficulty: Medium
TLO: !
Taxonomy: Knowledge

4-5
Chapter 04 - Product and Service Design
*4. Service design oten must ta0e into account the degree o customer contact re,uired.
TRE

Difficulty: Eay
TLO: 11
Taxonomy: Knowledge

*'. 2eliability reers to the ability o a product to perorm its intended unction under normal
conditions.
TRE

Difficulty: Eay
TLO: &
Taxonomy: Knowledge

*1. "pplied research is the ma)or 2 ? D eort o business organi.ations because o the desire
or commercial applications.
TRE

Difficulty: Eay
TLO: !
Taxonomy: Knowledge

*3. Commonality o components is beneicial or manuacturing but not or services.
FALSE

AACSB: %T
Difficulty: Medium
TLO: +
Taxonomy: Knowledge

4-6
Chapter 04 - Product and Service Design
*5. Standardi.ation can at times lead to serious diiculties and competitive struggles/
particularly when systems are running under dierent conditions.
FALSE

Difficulty: Medium
TLO: 1
Taxonomy: Knowledge

*6. :he term ailure as applied to reliability means that a part or item does not unction at all.
FALSE

Difficulty: Medium
TLO: 1$
Taxonomy: Knowledge

40. 2eliability can be deined in terms o a particular point in time or in terms o length o
service.
TRE

Difficulty: Eay
TLO: 1$
Taxonomy: Knowledge

41. 2eliability can be improved by the use o bac0up components.
TRE

Difficulty: Eay
TLO: 1$
Taxonomy: Knowledge

4!. Delayed dierentiation and modular design are tactics or mass customi.ation.
TRE

AACSB: CA
Difficulty: Medium
TLO: 1$
Taxonomy: Knowledge

4-10
Chapter 04 - Product and Service Design
4*. @ie-cycle assessment involves incorporating where the product or service is in its lie-
cycle into system-design decision-ma0ing.
FALSE

Difficulty: Medium
TLO: +
Taxonomy: Knowledge

44. :he goal o lie-cycle assessment is to incorporate the environmental impact o products
or services into product-design or service-design decision-ma0ing.
TRE

Difficulty: Medium
TLO: +
Taxonomy: Knowledge

4'. :he three 2s A 2educe/ 2e-use and 2ecycle A are more applicable in service design than
in product design.
FALSE

Difficulty: Medium
TLO: (
Taxonomy: Knowledge


!ultiple Choice Questions

41. :he goal o value analysis is to ind ways o BBBBBBBBB.
". C. 2educing the cost o parts and materials
<. CC. Cmproving the perormance o the product or service
C. CCC. Cncorporating multiple cultural values in global system design
D. <oth C and CCC
E" <oth C and CC

Difficulty: Medium
TLO: (
Taxonomy: Knowledge

4-11
Chapter 04 - Product and Service Design
43. Dhen considering re-use issues or a given product/ an important actor to ta0e into
account is that product&s BBBBBBBBB.
". +thical impact
<. 2eliability
C. Durability
D. Design or assembly
E" Eone o the above

Difficulty: Medium
TLO: (
Taxonomy: Knowledge

45. Cncorporating design or disassembly 7D>D8 principles in product design helps irms with
BBBBBBBBBBB design issues.
". @egal
<. Social
C" 2e-use
D. 2everse engineering
+. 2e-engineering

Difficulty: Medium
TLO: (
Taxonomy: Knowledge

46. Designing or recycling helps acilitate BBBBBBBB.
". 2educed legal liability
#" Compliance with regulatory environments
C. Cncreased product reliability
D. 2educed standardi.ation costs
+. Eone o the above

Difficulty: Medium
TLO: (
Taxonomy: Knowledge

4-1!
Chapter 04 - Product and Service Design
'0. -ne way to increase reliability is toF
A" improve component design
<. increase the number o service stations
C. increase mean repair time
D. increase the number o dependent components
+. none o the above

Difficulty: Medium
TLO: &1$
Taxonomy: Knowledge

'1. -ne way to increase reliability is toF
". eliminate bac0up component
#" improve preventive maintenance procedures
C. increase mean repair time
D. increase the number o independent components
+. none o the above

Difficulty: Eay
TLO: 1$
Taxonomy: Knowledge

'!. Dhich o the ollowing is not a reason or redesigning a product or serviceG
". to reduce labor or material cost
#" to increase the level o employee satisaction
C. to increase the level o customer satisaction
D. to attract and increase customer demand
+. to increase ,uality

Difficulty: Eay
TLO: "
Taxonomy: Knowledge

4-1*
Chapter 04 - Product and Service Design
'*. " disadvantage o global teams or product design is thatF
". Customers may have dierent needs in dierent countries
<. :he product designed may have increased mar0etability and utility
C. :he diversity o an international team may be a detriment
D" +ase o ace to ace meetings is absent since members are located everywhere
+. :echnology allows constant contact with team members

AACSB: MD
Difficulty: Medium
TLO: '
Taxonomy: Knowledge

'4. :he stage in a product or service lie cycle where some irms adopt a deensive research
posture isF
". incubation
<. growth
C. maturity
D. saturation
E" decline

Difficulty: Medium
TLO: "
Taxonomy: Knowledge

''. -ne step that isn&t part o service blueprinting isF
A" +liminate boundaries or the service and decide on the level o interaction needed
<. Cdentiy and determine the se,uence o customer and service actions and interactions
C. Develop time estimates or each phase o the process
D. ;nderstand the time variability involved
+. Cdentiy potential ailure points and develop a plan to minimi.e them

Difficulty: )a*d
TLO: 11
Taxonomy: Knowledge

4-14
Chapter 04 - Product and Service Design
'1. :he research and development activity which starts ater positive research results are
available and attempts to turn these results into useul commercial applications isF
". basic research
<. applied research
C" development
D. redesign
+. commercial research

Difficulty: Medium
TLO: ,
Taxonomy: Knowledge

'3. :he advantages o standardi.ation include which o the ollowingG
7C.8 :he opportunity to ree.e design at a very early stage
7CC.8 >ewer parts to deal with in inventory
7CCC.8 2educed training cost and time
7CH.8 Purchasing is more routine
". C/ CC
<. C/ CH
C. C/ CC/ CCC
D" CC/ CCC/ CH
+. C/ CC/ CCC/ CH

Difficulty: )a*d
TLO: 4
Taxonomy: Knowledge

'5. Products or services with a high degree o similarity o eatures and components are
calledF
". generic
<. copy-cat
C. rip-os
D" product amilies
+. productIservice matri9

Difficulty: Medium
TLO: 4
Taxonomy: Knowledge

4-1'
Chapter 04 - Product and Service Design
'6. =4ust have=/ =e9pected= and =e9citement= characteristics are categories in the BBBB
model.
". <i-polar
#" Jano
C. Pareto
D. %uality
+. Service 4atri9

Difficulty: Medium
TLO: &
Taxonomy: Knowledge

10. -ne possible disadvantage o modular design is thatF
". replacement and repair is more diicult
<. ailure diagnosis is more comple9
C" number o conigurations o modules decreases
D. individual parts lose their identities
+. inventory problems arise

Difficulty: Medium
TLO: 1$
Taxonomy: Knowledge

11. Cn the area o product and service design/ the acronym C"D reers toF
". conceptually appropriate design
#" computer aided design
C. commercial applications design
D. competitive advantage design
+. completely automated design

AACSB: #T
Difficulty: Eay
TLO: 1$
Taxonomy: Knowledge

4-11
Chapter 04 - Product and Service Design
1!. Dhich o the ollowing statements about C"D is not trueG
". Ct increases the productivity o designers.
<. Ct uses computer graphics.
C. Ct re,uires a good data base.
D. Some systems permit engineering or cost analysis o proposed designs.
E" Ct is used successully by 15( o the manuacturing companies.

AACSB: #T
Difficulty: )a*d
TLO: 1$
Taxonomy: Knowledge

1*. Dhich one o the ollowing is not a actor o successul product and service designG
". be aware o what the competitors are doing
<. be aware o what customers want
C. 0now what government regulations are
D" use computeri.ed design techni,ues
+. 0now what new technologies are available

AACSB: %T
Difficulty: Medium
TLO: ,
Taxonomy: Knowledge

14. "s part o a strategy or improving competitiveness/ a manager may have to initially
sacriiceF
". research and development
#" short-term perormance
C. employee pay raises
D. product or service ,uality
+. personal incentive bonuses

AACSB: E-
Difficulty: Medium
TLO: 1
Taxonomy: Knowledge

4-13
Chapter 04 - Product and Service Design
1'. Cdeas or new or improved designs can come romF
". customers
<. competitors
C. research and development departments
D. production departments
E" all o the above

Difficulty: Eay
TLO: !
Taxonomy: Knowledge

11. :he process o dismantling and inspecting a competitor&s new or revised product or the
purpose o gleaning design ideas is calledF
". design by imitation
<. product analysis
C" reverse engineering
D. benchmar0ing
+. disassembly

Difficulty: Eay
TLO: !
Taxonomy: Knowledge

13. :he term #degrees o newness& is associated withF
". average age o employees
<. average length o time on the )ob
C. total years o business e9perience
D" degree o design change
+. average age o the capital e,uipment

Difficulty: )a*d
TLO: &
Taxonomy: Knowledge

4-15
Chapter 04 - Product and Service Design
15. :he term #standardi.ation& is closely associated withF
". customi.ation
<. high cost
C. longer lead times
D. variety
E" interchangeability

AACSB: %T
Difficulty: Medium
TLO: 4
Taxonomy: Knowledge

16. Service design generally diers rom product design in which o the ollowing waysG
". Service design tends to ocus on tangible actors.
#" :here is less latitude in detecting and correcting errors prior to delivery.
C. :here is a lesser re,uirement to be aware o competitors& oerings.
D. :here is less visibility to customers.
+. :here is no dierence

Difficulty: )a*d
TLO: 14
Taxonomy: Knowledge

30. :he structural approach or integrating customer re,uirements into every aspect o product
development is 0nown asF
". total ,uality management
<. customer satisaction
C" ,uality unction deployment
D. customer integration
+. a product development team

Difficulty: Eay
TLO: !
Taxonomy: Knowledge

4-16
Chapter 04 - Product and Service Design
31. Dhich o the ollowing is an issue that designers must ta0e into account in product and
service designG
". legal/ environmental/ and ethical issues
<. reliability
C. standardi.ation
D. range o operating conditions
E" all o the above

AACSB: E-
Difficulty: Medium
TLO: &
Taxonomy: Knowledge

3!. -ne o these is not a characteristic o a well-designed service systemF
". ;ser riendly
<. 2obust
C" Distributed computer networ0s
D. Cost eective
+. +asy to sustain

Difficulty: Medium
TLO: 1&
Taxonomy: Knowledge

3*. " ormal way to document customer re,uirements isF
". consumer surveys
#" ,uality unction deployment 7%>D8
C. ocus groups
D. Delphi techni,ue
+. salesImar0eting matri9

Difficulty: Medium
TLO: !
Taxonomy: Knowledge

4-!0
Chapter 04 - Product and Service Design
34. Dhich o the ollowing is not true about re-manuacturingG
". 2e-manuactured products can be sold at lower cost.
<. :he process re,uires mostly uns0illed and semis0illed wor0ers.
C. :here is less depletion o natural resources.
D" Ct produces high ,uality products easily.
+. 2e-manuacturing is mainly carried out by small and mid-si.ed companies.

Difficulty: Medium
TLO: (
Taxonomy: Knowledge

4-!1