Ans: c

CHAPTER 6: THIẾT KẾ VÀ PHÁT 7. Which of the following is true regarding the relative
TRIỂN SẢN PHẨM predictability of the cycle of new product introductions?
a) new car models are predictable, but new fashion and new skin
(Product design & manufactring care products are not
b) new car models and new fashion are predictable, but new skin
planning) care products are not
c) new car models, new fashion, and new skin care products are all
predictable
1. The ease with which the product can be made is its
d) new car models, new fashion, and new skin care products are all
a) manufacturability
unpredictable
b) repeatability
e) new fashion and new skin care products are predictable, but new
c) readiness for manufacturing
car models are not
d) reliability
Ans: b
e) accountability
Ans: a
8. Lands’ End is a well-known benchmarking target because of
its __________ .
2. Service design differs from product design by including
a) catalog business
_____________ .
b) supply chain management
a) customer needs
c) success at resolving complaints
b) marketing personnel in the decision making process
d) labor relations
c) speed
e) environmental policies
d) quality
Ans: a
e) the esthetic and psychological benefits of the product
Ans: e
9. In 1997, who performed a large benchmarking study for
IBM?
3. A company’s product design supports its business strategies a) Boston Consulting Group
by b) Anderson Consulting
a) designing products that appeal to its customers c) i2 Technologies
b) designing as many products as possible d) Mercer Management Consultants
c) including the company’s mission somewhere in the product e) Manugistics
d) designing products that aid strategic planning activities Ans: d
e) designing the company’s strategy
Ans: a
10. When designing the Taurus model, what did Ford Motor
Company do with regard to BMW and Toyota?
4. Which of the following is not a step in product design? a) benchmarking
a) final design b) hired some of their employees
b) preliminary design and testing c) reverse engineering
c) idea development d) copied their quality management techniques
d) conceptual design e) bought some of their dealerships
e) product screening Ans: c
Ans: d
11. Reverse engineering is:
5. ___________ is a vital link between customers and product a) altering the basic design based on user input.
design. b) reengineering a failing product.
a) Engineering c) acquiring a competitor’s product and relabeling it for sale.
b) Accounting d) acquiring a competitor’s product and studying its design
c) The Internet features.
d) Operations e) changing your mind on the previous design.
e) Marketing Ans: d
Ans: e
12. Studying the practices of companies considered “best in
6. All product designs begin with ____________ . class” and comparing the performance of our company
a) a blueprint against their performance is
b) a cost analysis a) competition
c) an idea b) copying
d) a feasibility study c) frustration
e) a focus group d) benchmarking
e) notching produced, such as materials and labor, are
Ans: d a) fixed costs
13. Involving suppliers early in the design process is called: b) marginal revenue
a) reengineering c) sunk costs
b) disaggregation d) cost drivers
c) redesign e) variable costs
d) benchmarking Ans: e
e) supplier involvement
Ans: e
20. Which of the following is not a fixed cost?
14. Evaluating a product idea to determine its likelihood of a) land rent
success is b) materials
a) product screening c) overhead
b) estimating d) taxes
c) technological forecasting e) insurance
d) product windowing Ans: b
e) product evolution
Ans: a 21. In break-even analysis, what is the break-even point?
a) the quantity where revenue equals total cost
b) the quantity where revenue equals fixed cost
15. In product screening, issues such as “Will we need new c) the quantity where revenue equals variable cost
facilities and equipment?” and “Can material for d) the quantity beyond which the firm starts to lose money
production be readily obtained?” are addressed by e) the quantity where variable cost equals fixed cost
a) marketing Ans: a
b) finance
c) engineering
d) operations 22. In break-even analysis, in order to make a profit the
e) accounting company must
Ans: d a) sell above the break-even point
b) sell below the break-even point
16. In product screening, issues such as, “What is the market c) sell at a loss
size?” and “What is the long term-product potential?” d) sell at the break-even point
are addressed by: e) sell on consignment
a) marketing Ans: a
b) finance
c) engineering 23. For which of the following is break-even analysis not
d) operations appropriate?
e) accounting a) deciding how much of a product must be sold to make a profit
Ans: a b) evaluating different processes
c) deciding whether it is better to make or buy a product
17. Approximately what percentage of ideas do not make it d) deciding between different products
past the screening stage? e) deciding how to allocate overhead
a) 30% Ans: e
b) 50%
c) 60% 24. Which of the following is not included in the preliminary
d) 80% design and testing stage?
e) 90% a) the product design idea is evaluated according to the needs of
Ans: d the major business functions
b) design engineers translate general performance specifications
18. What technique is based on computing the quantity of into technical specifications
goods a company needs to sell to just cover its costs? c) “bugs” are worked out
a) net present value d) revising the design based on test results
b) break-even analysis e) prototypes are built and tested
c) internal rate of return Ans: a
d) activity based costing
e) variable 25. During the final design and testing stage:
a) the product design idea is evaluated according to the needs of
costing the major business functions.
Ans: b b) design engineers hand the product over to the final design
19. Costs that are proportional to the amount of units engineers.
c) the product specifications are drawn up. orders
d) marketing becomes involved for the first time. Ans: b
e) the product achieves full production.
Ans: c

26. Which one of these refers to reducing the number of parts 32. Building a bridge over the Mississippi River for a new
and features of the product whenever possible? highway uses a
a) design automation a) project process
b) design specification b) batch process
c) design reduction c) line process
d) design standardization d) continuous process
e) design simplification e) recycle process
Ans: e Ans: a

27. What refers to the use of common and interchangeable

parts? 33. The classes that you are taking at the university use a
a) design automation ___________ process.
b) design specification a) project
c) design reduction b) batch
d) design standardization c) line
e) design simplification d) continuous
Ans: d e) recycle
Ans: b

28. Which of the following is not a guideline for design for

manufacture? 34. What type of process is designed to produce a large volume
a) use modular design of a standardized product for mass production,
b) design parts for different products such as automobiles?
c) minimize parts a) project processes
d) rely on automated equipment b) batch processes
e) simplify operations c) line processes
Ans: d d) continuous processes
e) recycle processes
29. Maturity and decline are also referred to as: Ans: c
a) the early stages
b) the life cycle 35. Which type of process would be least likely to produce
c) the later stages goods for inventory rather than for a specific customer
d) design for manufacture stages request?
e) re-engineering stages a) project
Ans: c b) batch
c) line
30. Which type of operation is used to produce many different d) continuous
products with varying process requirements in lower e) remanufacturing
volumes? Ans: a
a) intermittent
b) repetitive
c) continuous 36. Which of the following is a tool for evaluating an operation
d) downstream in terms of the sequence of steps from inputs to
e) gateway outputs with the goal of improving its design?
Ans: a a) operations analysis
b) operations sequencing
31. Which of the following is not characteristic of intermittent c) process flow analysis
operations? d) input/output analysis
a) produce many different products with varying processing e) sequencing analysis
requirements Ans: c
b) capital intensive
c) workers need to be able to perform different tasks depending on
37. If the third stage of a repetitive line process cannot
the processing needs of the product
complete its activities as fast as stage one or two it has
d) general purpose equipment
become a:
e) volume of goods produced directly tied to number of customer
a) key work location
b) bottle neck a) assemble-to-deliver
c) place not to work b) make-to-stock
d) project process location c) assemble-to-order
e) none of these d) make-to-order
Ans: b e) make-to-package
38. Which of the following is correct sequence for relating Ans: c
product design, process selection, and arrangement of 44. Which product and service strategy has the longest delivery
equipment in the factory? lead time?
a) product design determines arrangement of equipment which a) assemble-to-deliver
determines process selection b) make-to-stock
b) product design determines process selection which determines c) assemble-to-order
arrangement of equipment d) make-to-order
c) process selection determines product design which determines e) make-to-package
arrangement of equipment Ans: d
d) process selection determines arrangement of equipment which
determines product design
e) arrangement of equipment determines process selection which 45. Pre-fabricated furniture with choices of fabric colors is an
determines product design example of which product and service strategy?
Ans: b a) assemble-to-deliver
b) make-to-stock
c) assemble-to-order
39. What type of operations focus on products in the early d) make-to-order
stage of the life cycle? e) make-to-package
a) repetitive Ans: c
b) downstream
c) gateway
d) intermittent 46. Which product and service strategy is typically seen in
e) recycle repetitive operations?
Ans: d a) assemble-to-deliver
b) make-to-stock
c) assemble-to-order
40. With respect to competitive priorities, intermittent d) make-to-order
operations compete more on _____________ compared to e) make-to-package
repetitive operations. Ans: b
a) cost and features
b) durability and cost
c) availability and reliability 47. If a firm’s facility layout is not correct it will create:
d) flexibility and delivery a) project processes
e) durability and features b) optimum outputs
Ans: d c) equal number of products
d) inefficiency
41. Intermittent operations group their resources based on e) job satisfaction
a) requirements of the product Ans: d
b) similar operations or functions
c) shape of the shop floor 48. Information Technology does not assist the firm in:
d) abilities of the labor force a) information storage
e) the number of machines b) information processing
Ans: b c) information creation
d) intra firm information communication
42. Compared to intermittent operations, repetitive operations e) inter firm information communication
a) have higher material handling costs Ans: c
b) have greater efficiency
c) have slower processing rates 69. The steps in the product design process include
d) have more flexibility a) Idea Development, Product Screening, Break-even analysis,
e) are less specialized Build
Ans: b b) Idea Development, Benchmarking, Preliminary Design, Final
Design
43. Which product and service strategy is used to produce c) Seek Competitors Design Specs, Product Screening,
standard components that can be combined to customer Manufacture, Sell
specifications? d) Seek Customer Input, Product Screening, Testing, Final Design
e) Idea Development, Product Screening, Preliminary Design &
Testing, Final Design 112. Blaster Radio Company is trying to decide whether or not
Ans: e (pg. 57) to introduce a new model. If they introduce it, there
will be additional fixed costs of $400,000 per year. The variable
costs have been estimated to be $20 per radio.
a) If Blaster sells the new radio model for $30 per radio, how many
must they sell to break even?
70. Which type of operational function represents an b) If Blaster sells 70,000 of the new radio model at the $30 price,
Assemble-to-Order? what will the contribution to profit be?
a) wedding invitations Ans: a) 40,000 radios (QBE = F/(SP - VC) = $400,000/($30 - $20)
b) corporate training = 40,000)
c) airline flights b) $300,000 (Profit = total revenue - total cost = SP*A -
d) legal services [F+VC*Q] = $30 * 70000 - [$400,000+ ($20*70000)]
e) vacation packages = $300,000)
Ans: b
113. Birdie Par owns a company that makes golf gloves. She is
thinking about introducing a new glove, which would
71. A series of stages that products pass through in their require an additional fixed cost of $20,000 per year. The
lifetime, characterized by changing product demands over variable costs for the new glove have been estimated to be
time is defined as $5 per glove.
a) Development life cycle a) If she sells the new glove for $15, how many must she sell to
b) Design program break even?
c) Product life cycle b) If she sells 3,000 gloves at the $15 price, what will the
d) Services life cycle contribution to profit be?
e) Product life methodology Ans: a) 2,000 gloves (QBE = F/(SP - VC) = $20,000/($15 - $5) =
Ans: c 2,000)
b) $10,000 (Profit = total revenue - total cost = SP*A - [F+VC*Q]
= $15 * 3000 - [$20,000+ ($5*3000)] = $10,000)
72. Why is a process flowchart useful?
a) for designing a product
b) for determining where the strengths are in a process 114. Bazooka Company is thinking about introducing a new
c) for determining where the weaknesses are in a process type of color printer. If they introduce it, their factory will
d) for seeing the totality of the operation and for identifying incur additional fixed costs of $37,000,000 per year. The
potential problem areas variable costs will be $261 per printer.
e) for benchmarking against other processes a) If Bazooka sells the new printer for $819, how many must they
Ans: d sell to break even?
b) If Bazooka sells 70,000 of the new printer at the $819 price,
108. What is the break-even volume given a fixed cost of what will the contribution to profit be?
$100,000, a variable cost per unit of $30, and a selling price
of $35? a) 66,308 printers (QBE = F/(SP - VC) = $37,000,000/($819 -
Ans: 20,000 units (QBE = F/(SP - VC) = $100,000/($35 - $30) = Ans: b) $2,060,000 (Profit = total revenue - total cost = SP*A - [F+
20,000) [$37,000,000+

($261*70,000)] = $2,060,000)
109. What is the break-even volume given a fixed cost of
$15,000,000, a variable cost per unit of $2.30, and a selling 115. Sam Smear owns a manufacturing company that makes
price of $12.80? ball point pens. Currently he is trying to decide between two
Ans: 1,428,571 units (QBE = F/(SP - VC) = $15,000,000/($12.80 - processes for making the pens. The first process will have a
$2.30) = 1,428,571) fixed cost of $200,000 per year and variable costs of $0.40 per
pen. The second process will have a fixed cost of $250,000 per
110. What is the break-even volume given insurance costs of year and variable costs of $0.30 per pen.
$30,000, materials costs of $6 per unit, taxes of $10,000, a) Identify which ranges of product volume are best for each
labor costs of $34 per unit, and a selling price of $80? process.
Ans: 1000 units (QBE = F/(SP - VC) = ($30,000 + $10,000)/($80 - b) If Sam makes 200,000 pens, which process provides a lower
($34 + $6.00)) = 1,000) cost?
Ans: a) the first process is better for volumes less than or equal to
111. If a firm has fixed costs of $250,000, a market-based 500,000 pens, the second process is better for
selling price of $50 per unit, and it expects to sell 20,000 volumes greater than or equal to 500,000 pens (Q = (F2 -
units, how low must its variable costs be to break even? F1)/( VC2 - VC1) = ($250,000-$200,000)/($0.40 -
Ans: $37.50 (VC= SP - F/ QBE) = $50 - $250,000 /20,000) = $0.30) = 500,000)
$37.50/unit) b) the first process
116. If a firm has fixed costs of $200,000, variable costs of $100
per unit, and it hopes to sell 1000 units, what selling
price must it charge in order to break even?
Ans: $300 (SP = F/ QBE + VC = $200,000/1000 + $100 = $300)

117. Languages, Inc. manufactures hand held computers that

translate between two languages. Based on their market
research, they have developed computers for French/English,
German/English, and Spanish/English. The process for making
the computers will have fixed costs of $2,000,000 per year and
variable costs of $50 per computer. The company believes that
it can sell at least 40,000 computers per year.
a) What should the price per computer be if the company wants to
break even at a volume of 40,000 computers per
year?
b) If they sell 60,000 computers at a price of $90 per computer,
what will the contribution to profit be?
Ans: a) $100 (SP = F/ QBE + VC = $2,000,000/40000 + $50 =
$100)
b) $400,000 (Profit = total revenue - total cost = SP*A -
[F+VC*Q] = $90 * 60,000 - [$2,000,000+
($50*60,000)] = $400,000)