Process design focuses on the Multiplication and... Text Structure Work... EC ECmpus: Home and Work rules; training you use to make things. Technology; work design Training; technology Technology; work rules 2 Of the four strategies to reduce costs, minimizing work rules and increasing training to empower workers to find better ways to do things best describes which strategy? Offshoring Automation Outsourcing Process improvement 3 Economists discuss value in terms of . Customers talk about value in terms of Value; time and place Dimensions; utilities Cost and quality: scorecards Utilities: value dimensions 4 An open systems view argues that you need to recognize be quick to respond, and create more than rivals. Value; products Opportunities; value Processes; opportunities Success: profits Which of the following should not influence your choice of technology as you design a production or service process? Labor cost A desire to buy shiny new hardware Production volumes Financial resources and are the two types of decisions you need to make to achieve world-class operations management. Design; control Quality; control Design; quality Human resource; technology 7 Which of the following approaches can help you mitigate the challenges of poor forecasts? Minimize inventory Use all the forecasting techniques and average them together Obtain and use the best, most recent information available Always use simple forecasting techniques 8 If you want to be taken seriously as a supplier, you have to offer which two value dimensions? cost and delivery cost and quality innovation and delivery Agility and innovation You must meet minimum requirements across which of the five value dimensions? Cost, quality, and innovation All of them Cost and quality Delivery, and agility 10 Sustained success requires that you offer distinctive value, so you must differentiate yourself in one of which thare dimensions? Cost, quality, or innovation Innovation, delivery, or cost Quality, cost, or agility Agility, innovation, or delivery Dell pre-orders and stocks up on raw materials and components Purchasing pre-selected pre- packaged deli meat from a cold case A local coffee shop that prepares coffee or hot beverages depending on customer orders A customer ordering custom-sliced meat at a deli The difference between mass production and lean production is that: Mass and lean production utilize both methods of production based on cost reduction Lean utilizes both "push" and "pull" production based on customer demand Mass production uses the "push" method, and lean production uses the "pull" method Mass production uses the "pull" method, and lean production uses the "push" method 3 A lean system is one that strives to: Lower costs through acquisition of the cheapest resources available. Minimize the use of resources used to achieve the organization's goals. Offer a rigid product offering to customers so that operations can be more efficient. Maximize worker productivity through e.

1. Process design focuses on the Multiplication and... Text Structure Work... EC ECmpus: Home
and Work rules; training you use to make things. Technology; work design Training; technology
Technology; work rules 2 Of the four strategies to reduce costs, minimizing work rules and
increasing training to empower workers to find better ways to do things best describes which
strategy? Offshoring Automation Outsourcing Process improvement 3 Economists discuss value
in terms of . Customers talk about value in terms of Value; time and place Dimensions; utilities
Cost and quality: scorecards Utilities: value dimensions 4 An open systems view argues that you
need to recognize be quick to respond, and create more than rivals. Value; products
Opportunities; value Processes; opportunities Success: profits
Which of the following should not influence your choice of technology as you design a
production or service process? Labor cost A desire to buy shiny new hardware Production
volumes Financial resources and are the two types of decisions you need to make to achieve
world-class operations management. Design; control Quality; control Design; quality Human

2. resource; technology 7 Which of the following approaches can help you mitigate the challenges
of poor forecasts? Minimize inventory Use all the forecasting techniques and average them
together Obtain and use the best, most recent information available Always use simple
forecasting techniques 8 If you want to be taken seriously as a supplier, you have to offer which
two value dimensions? cost and delivery cost and quality innovation and delivery Agility and
innovation
You must meet minimum requirements across which of the five value dimensions? Cost, quality,
and innovation All of them Cost and quality Delivery, and agility 10 Sustained success requires
that you offer distinctive value, so you must differentiate yourself in one of which thare
dimensions? Cost, quality, or innovation Innovation, delivery, or cost Quality, cost, or agility
Agility, innovation, or delivery
Dell pre-orders and stocks up on raw materials and components Purchasing pre-selected pre-
packaged deli meat from a cold case A local coffee shop that prepares coffee or hot beverages
depending on customer orders A customer ordering custom-sliced meat at a deli The difference
between mass production and lean production is that: Mass and lean production utilize both
methods of production based on cost reduction Lean utilizes both "push" and "pull" production
based on customer demand Mass production uses the "push" method, and lean production uses
the "pull" method Mass production uses the "pull" method, and lean production uses the "push"
method 3 A lean system is one that strives to: Lower costs through acquisition of the cheapest
resources available. Minimize the use of resources used to achieve the organization's goals. Offer
a rigid product offering to customers so that operations can be more efficient. Maximize worker
productivity through elimination of breaks and training.
The rocks and river analogy suggests that productivity problems (i.e., rocks) accumulate when
hidden or covered up by what (i.e., what does the river represent)? Inventory Poor metrics Band-
aids Managerial apathy 5 TPS relies on which two core conceptual pillars for success? Respect
for people and punitive measurement systems Just-in-time and jidoka Push systems of
production and just-in-time inventories Methodology and philosophy 6 Emergency room patients
lined up to receive test results is a form of which type of waste? Waiting Over-processing
Transportation Inventory 7 Commuter trains with more cars than necessary is a form of which
type of waste? Over-processing Over-production poor metrics Motion
Engaging in process activities that the customer is not willing to pay for is an example of: Over-
processing Defects Over-production Jidoka Why is productivity an important metric for firms to

3. evaluate? It analyzes and optimizes a process. It creates a method to manage change. It allows
managers to spot problems or issues early and correct for them. It's an analysis tool based on
prevention. 10 Which of the following example would be a poor productivity measure, because
of possible outcome? Number of visits per hour at a doctor office Dollar value of widgets
produced per hour at a manufacturing plant Number of tables turned per hour Sales per week
based on square footage of a boutique
What type of innovation has Toyota leveraged to become a world-class manufacturer?
Continuous, incremental improvement Better, faster technology A differentiation strategy
Transformational innovation Transformational innovation relies on strategic leaps in or
technology. Process: product In-house; customer Software: process Communication: internet 3
What is the major drawback of transformational innovation strategies? They depend on strategic
breakthroughs. Transformational innovation helps you change the competitive rules. Customers
seldom appreciate transformational breakthroughs.
What is the customer's contribution to the New Product Development Team? Feedback on design
as well as how customers will actually use the product Technical expertise needed to translate
designs into an actual product/service Technical expertise needed to translate concepts into
product/service designs Process expertise to improve production efficiencies bring a number of
customers (usually 4 to 14 ) together with a moderator to discuss their experiences, needs, and
expectations regarding a new product concept. In-depth interviews Customer surveys Focus
groups Expert panels 6 What is the end goal for new product development? To make money To
create shareholder profit To solve customers' problerns profitably To invent new products 7 If a
product makes it past the first stage gate, your next step is to develop a rigorous Net present
value Profitability analysis Initial outlay Business case analysis
Which features do customers know they want, weighing them carefully as they decide between
your product and your competitor's product? Fully implemented features Basic features
Performance features Form features The Kano Model focuses your attention on how customers
will react to different features and invites you to compare each possible feature based on which
two crite What it should do and how it will do it Cost breakdown and price differentiation
Investment implementation and potential to satisfy customers How the product will perform and
how much the product will cost 10 If your product does not offer , customers won't buy it. Basic
features Form features Intangible features Fully implemented features
4 Which of the following contributes to agility? Hiring employees who follow the rules all of the

4. time Focusing on logistics, the function most responsible for agility Having strict rules that are
always followed Investing in effective information systems 5 An andon cord is useful for which
of the following? Training workers Wasting time Stopping a production process Mistake-
proofing a process 6 One of the benefits of implementing jidoka to a process is which of the
following? Problems can be effectively held off for resolution far in the future. Workers can
focus their energy on creativity and problem-solving. Workers can focus on just the repetitive
and mundane tasks of an operation. Workers can be fired. 7 What is the ultimate goal of a lean
system? Ensure that the whole process of manufacturing turns out the highest volumes possible.
Ensure that the whole process of manufacturing remains as the lowest possible cost. Single-piece
flow with zero inventory accumulation anywhere in the process. Attain equal division of labor.
Which two factors should drive your choice of facility location? Tax rates; materials cost The
cost of labor: access to technology Access to factor inputs: access to consumer markets Lifestyle
and safety issues; the cost of labor Success is driven by how you use resources. Which of the
following is harder for your competitors to copy? Products and services Strategy and products
Methods and strategy Processes and culture 3 Which of the following is a characteristic of an
open system? Changes in the environment seldom, if ever, happen. Changes in the environment
impact your strategy and ability to survive. The key to success is stay focused on what you do
best-always! To win, you need to recognize opportunities and threats, but think long and hard
before making any changes, Slow and steady wins the race.
Which of the following are important reasons to involve suppliers early in the NPD process?
Suppliers often possess important technical expertise related to processes or products; Suppliers
can share designs they have obtained from other customer Suppliers often possess vital materials
expertise; Suppliers often possess important technical expertise related to processes or products
Suppliers can share designs they have obtained from other customers; Suppliers are expert in
packing and shipping Suppliers are expert in packing and shipping; Suppliers often possess vital
materials expertise In a sequential, functionally oriented product design process, what almost
always happens when an idea gets tossed from one function to another? Product launch is
delayed and products get closer to production. Costs go up and product launch is delayed.
Product gets closer to production and launch is delayed. Products are improved and costs go up.
10 During the screening/scoping phase of new product development, you should ask two
questions, which of the following are those questions? Will the product meet the competitive
test? Does the product really fit the product strategy? Does the product really fit the product
strategy? How much profit will this product give the firm? Who is the target market for this new
product? Does the product really fit the product strategy? How much profit will this product give

5. the firm? Who is the target market for this new product?
Which of the following is an example of form utility? A car manufacturing company could sell
all the parts of their cars separately. However, by assembling the parts (and manufacturing cars),
this company adds significant value for their customers. If a car manufacturer sells exclusively
within the US, buying a car is not very attractive for Europeans. However, if the company
decides to open dealerships across Europe and sell cars overseas, the availability of its cars for
European customers increases. Customers often have to wait several weeks or even months for a
new car. However, many of them need their vehicles as soon as possible. Thus, if the
manufacturer manages to reduce delivery times by even just a few days, its cars become more
attractive to potential customers. This utility can be created whenever a client is handed the keys
to their new car, simply because from that moment they are free to do whatever they want to do
with it. 2 Which of the following is an example of time utility? If a car manufacturer sells
exclusively within the US, buying a car is not very attractive for Europeans. However, if the
company decides to open dealerships across Europe and sell cars overseas, the availability of its
cars for European customers increases. Customers often have to wait several weeks or even
months for a new car. However. many of them need their vehicles as soon as possible. Thus. If
the manufacturer manages to reduce delivery times by even just a few days, its cars become
more attractive to potential customers. This utility can be created whenever a client is handed the
keys to their new car, simply because from that moment they are free to do whatever they want
to do with it. A car manufacturing company could sell all the parts of their cars separately.
However, by assembling the parts (and manufacturing cars), this company adds significant value
for their customers.
During COVID, countless companies repositioned their products and added distribution channels
to reach customers at their homes. Observing the economic, public health, and market changes
helped these companies make the right choices to remain competitive throughout the pandemic.
In the face of government shutdowns, for example, Airbnb added online services to its business
model. And Peloton quickly pivoted to remote work, allowing it to take advantage of an
expanded labor market. This is an example of which value dimension? Quality Cost Agility
Delivery Chrysler offers a five-year, 50,000 mile warranty; Whirlpool Corporation promises that
parts for all models will be available for 15 years; Hewlett-Packard gives customers a 99%
uptime service guarantee on its computers; and Mercedes-Benz makes technicians available for
roadside assistance after normal dealer service hours. What value dimension is each of these
companies' focus? Cost Delivery Agility Quality 5 Companies introducing a new product often
cite its cost advantages. If Company X produces a coffee maker virtually identical to that of

6. Company Y, Company X may offer a version at a lower cost. If it comes with a reusable filter,
the savings on paper filters are highlighted in packaging and advertising. These are examples of
companies doing which of the following? Differentiating your product Avoiding disqualification
Creating tradeoffs and synergies Getting into the game
A seat belt manufacturer estimates the demand for replacement seat belts and then creates a plan
to manufacture those seat belts over a period of time. Once replacement seat belts start to roll off
the production line, they are packaged into boxes (for the purposes of this example, let's assume
100 replacement seat belts per box) and sent to distributors in priority order of where it is
anticipated the highest demand will be. These distributors then send the replacement seat belts to
the car dealerships, who hold several in stock so that when a customer comes in requiring a
replacement seat belt, they are able to replace it within a short period of time and the customer is
happy. Is this manufacturer using a push or a pull system? What could be a potential issue with
this system? Push system; it creates unneeded inventory throughout the system-manufacturer,
distributor, and dealership. Pull system; it creates unneeded inventory throughout the system-
manufacturer, distributor, and dealership. Pull system; it is unable to make rapid responses to
changes in demand. Push system: it is able to make rapid responses to changes in demand.
Apple's chief executive officer (CEO) Tim Cook parlayed the 16 years of supply management
experience he gained working at IBM and Compaq Computers to entirely revamp Apple's
manufacturing process. Starting as Apple's chief operating officer (COO) in 1998, Cook pulled
the company out of manufacturing, closing Apple's warehouses and factories around the world.
He opted instead to establish relationships with independent manufacturing contractors, many of
them located in China where labor and cost of goods were much cheaper. These manufacturers
would deliver products as needed. Cook credits these changes as a key factor in Apple's growth
and profitability. What system is Cook using and why would it increase profitability for Apple?
Just-in-time: Cook's supply chain improvements reduced the amount of time Apple's inventory
sat on the company's balance sheet. Batch system; Cooks changes produced small quantities of
output that greatly varied from one batch to the next. Continuous system: Cook's supply chain
processed flow through a series of steps or operations. Automation; Cook's changes kept costs of
production within reasonable levels. 8 The other day, I ordered a taco at the local taqueria. I
specifically asked for no guacamole because I really hate guacamole. Sadly, someone wasn't
paying attention, so my taco arrived fully guacamole laden. When I pointed out the error, the
server tossed the taco in the garbage and set the cook to work on a netv one. This is a perfect
example of which form of waste? How can this be avoided? Over-production; calculate and
control inventory days on hand Defects: track mistakes and correct behavior Inventory: start a
waste journal Motion; adopt the FIFO method

7. Waste of motion refers to movement of people, resources, or machinery. For example, multiple
staff may be operating one machine when only one person is necessary, resulting in time and
resource wastage. These inefficiencies can also be dangerous and lead to workplace injuries and
delay production. Waste of motion doesn't always have to be on a large scale. Small-scale waste
of motion includes things like rummaging through a pile of materials to find the right
component, walking to the printer across the warehouse, or even sifting through sheets of paper.
What is the key to reducing motion waste and what is a possible solution? Inventory software
can help waste by tracking and recording all key changes related to demand and sales trends.
Assess your workflows and layout to identify areas of waste and create a workflow process
document to ensure staff follow steps to reduce unplanned movement. Automate pick lists that
can be sent to mobile devices so your warehouse team doesn't have to keep picking up paper
orders. Monitor the quality of defects and create waste audits to regularly find where defects
arise. Joseph has a kiwifruit orchard, and he has all the required factors of production: land,
vines, workers, fertilizer, and water. He has decided how much of each input he will need, but he
hasn't yet decided how much fertilizer he will use. Joseph knows that if he increases the amount
of fertilizer, the output of kiwifruit will increase. However, it may reach a point where too much
fertilizer will poison the plant and decrease his output. The law of diminishing returns states that
there will be a point where the additional output of kiwifruit gained from one additional unit of
fertilizer will be less than the additional output of kiwifruit from the previous increase in
fertilizer. This table shows the output of kiwifruit per unit of fertilizer: At which point does
adding one additional unit of fertilizer hit the law of diminishing returns? Between 1 and 2
Between 2 and 3 Between 3 and 4
The iPhone has become a ubiquitous accessory around the world and changed the way we
communicate, connect, create, and much more. The company continues to be a disruptor and
pace-setter that competitors are constantly chasing. This is an example of what type of
innovation? Adjacent innovation Incremental innovation Breakthrough innovation
Transformational innovation Instead of putting customers on hold, JetBlue's call-in customer
service system now takes their number and calls them back later. This small upgrade effectively
addressed an immediate problem of phone call wait times and provided a new level of
convenience for JetBlue customers and employees alike. This is an example of what type of
innovation? Adjacent innovation Breakthrough innovation Transformational innovation
incremental innovation 13 Beth has dreams of opening a gourmet cupcake store. She does a
break-even analysis to determine how many cupcakes she'll have to sell to break even on her
investment. She's done the math, so she knows her fixed costs for one year are $10,000 and her

8. variable cost per unit is $0.50. She's done a competitor study and some other calculations and
determined her unit price to be $6.00. $10,000/($6$0.50)=1,819 cupcakes that Beth must sell in
one year to break even What is the limitation of this analysis? That break-even analysis does not
consider market demand. The contribution margin is the difference (more than zero) between the
product's selling price and its total variable cost. This margin contributes to offsetting fixed
costs. Fixed costs are those that remain the same no matter how much product or service is sold,
Kellogg's has revamped their whole end-to-end innovation capability to focus on the core food
design skills: investing in culinary to get closer to the real food experience; sensory, to equitably
learn with the consumer; a design studio and rapid process lab to speed up the prototyping; a
scaled-up pilot, which is now certified to make salable food; and finally, a Menuvation Center at
The Hatchery in Chicago to showcase the foods with partners and customers. Why is this end-to
end product development process effective? The team leaves a trail of learnings for the next
team. This process limits meddling by management. It allows the company to hit trends,
influence new trends, and grow the business. Each product has an elaborate product launch plan
that is held in strict secrecy.