Operation Management

Operations Management, 10e, Global Edition (Heizer/Render)

Chapter 5 Design of Goods and Services

1) A product strategy may focus on differentiation, low-cost, or rapid response.

2) The goal of the product decision is to develop and implement a product strategy that meets the needs of the marketplace with a competitive advantage.

3) Political/legal change and economic change are both factors influencing market opportunities for new products.

4) The four phases of the product life cycle are incubation, introduction, growth, and decline.

5) In the maturity stage of the product life cycle, operations managers will be concerned with keeping sufficient capacity available for the product.

6) Computer-aided design (CAD) refers to the use of specialized computer programs to direct and control manufacturing equipment.

7) Virtual reality technology can improve designs less expensively than the use of physical models or prototypes.

8) Quality function deployment refers to first, determining what will satisfy the customer, and second, translating the customers' desires into a target design.

9) Robust design is a method that ensures that small variation in production or assembly does not adversely affect the product.

10) One environmentally friendly approach to product design is to use lighter components.

11) An operations manager's most ethical activity is to enhance productivity while delivering desired goods and services. Unfortunately, this activity is not environmentally sound.

12) Two issues–viewing a product in terms of its impact on the entire economy and considering the life cycle of a product–combine to increase the likelihood of ethical decisions by managers.

13) Rapidly developing products and moving them to the market is part of time-based competition.

14) The customer may participate in the design of, and in the delivery of, services.

15) The expected value of each course of action in a decision tree is determined by...