MULTIPLE CHOICE.    Choose the one alternative that best completes the statement or answers the question.

1)
There are five main stages in design of products or services. Which is the correct sequence?

1)

_______
A)
Preliminary design, Screening, Concept generation, Prototyping and final design, Evaluation and improvement.
B)
Concept generation, Screening, Preliminary design, Evaluation and improvement, Prototyping and final design.
C)
Preliminary design, Screening, Concept generation, Evaluation and improvement, Prototyping and final design.
D)
Concept generation, Screening, Preliminary design, Prototyping and final design, Evaluation and improvement.

2)
There are five main stages in design of products or services.    Which is the correct sequence?

2)

_______
A)
Preliminary design, Screening, Concept generation, Evaluation and improvement, Prototyping and final design.
B)
Concept generation, Screening, Preliminary design, Prototyping and final design, Evaluation and improvement.
C)
Preliminary design, Screening, Concept generation, Prototyping and final design, Evaluation and improvement.
D)
Concept generation, Screening, Preliminary design, Evaluation and improvement, Prototyping and final design.

3)
As part of concept generation, a company may use focus groups.    A focus group will typically comprise

3)

_______
A)
Staff who take apart competitors' services/products and focus on how they have been made
B)
Seven to ten participants who are unfamiliar with each other and have certain characteristics in common that relate to the
particular topic
C)
Contact staff in a service organisation or the salesperson in a product-orientated organisation
D)
People identified at random by street market researchers

4)
There are many techniques that can be used for documenting processes or blueprinting, all of which have two main
features
4)

_______
A)
Flow-process charts and the customer-processing framework
B)
Specify the component products and services and define the processes to create the package
C)
Show the flow of materials/people/information through the operation and identify the different activities that take place
during the process
D)
Determine the overall shape of the product or service and the way in which the product or service operates

5)
The main purpose of Taguchi methods is to

5)

_______
A)
Test the robustness of a design
B)
Reduce costs and prevent any unnecessary costs before producing the product or service
C)
Create a 'house of quality'
D)
Articulate the 'voice of the customer'

6)
Which of the following is not a factor that can significantly reduce time to market for a product or service

6)

_______
A)
Separation of the design of products and services from the design of the processes which will produce them
B)
An organisational structure which reflects the development project
C)
Simultaneous development of the various stages in the overall process
D)
An early resolution of design conflict and uncertainty

7)
Which one of the following is NOT a named symbol in a flow process chart?

7)

_______
A)
A movement
B)
A delay
C)
Storage
D)
A selection
E)
An operation

8)
What is the correct order in which the following elements of a customer-processing framework should be assembled
(assuming the customer has already selected a preferred service operation)?

8)

_______
A)
Point of entry/Response time/Point of impact/Delivery/Point of departure/Follow-up
B)
Point of entry/Response time/Point of impact/Point of departure/Follow-up
C)
Point of entry/Point of impact/Delivery/Point of departure/Follow-up
D)
Point of entry/Response time/Point of impact/Delivery/Follow-up

9)
The final stage of the design activity will NOT involve which one of the following elements

9)

_______
A)
Computer-aided design (CAD)
B)
Screening
C)
Virtual prototyping
D)
Computer simulations
E)
Wire-frame modelling

10)
Which of the following is NOT important in reducing a design's 'time to market' (TTM)

10)

______
A)
Simultaneous development
B)
Project-based organisation structures
C)
Early conflict resolution
D)
Last in first out (LIFO)
E)
Simultaneous engineering

11)
The stages of product design do NOT include   

11)

______
A)
Prototyping and final design
B)
Evaluation and improvement
C)
Preliminary design
D)
Screening
E)
The scale

12)
Transferring a design idea into a concept does not include   

12)

______
A)
Benefits

B)

Purpose

C)

Form

D)

Prototype

E)

Function

13)
The common types of blueprinting techniques do not include

13)
______
A)
Simple flow charts
B)
Gantt charts
C)
Routing sheets
D)
Process flow charts
E)
The customer processing framework

14)
What is the evaluation criteria fro the following evaluation question How much will we have to reorganise our activities
to produce it?

14)

______
A)
Acceptability

B)

Vulnerability

C)

Feasibility

15)
What is the evaluation criteria fro the following evaluation question What is the risk of us being unable to produce it
acceptably?

15)

______
A)
Feasibility

B)

Vulnerability

C)

Acceptability

16)
What is the evaluation criteria fro the following evaluation question Do we have the capabilities to produce it?
16)

______
A)
Acceptability

B)

Feasibility

C)

Vulnerability

17)
A design concept is the set of expected benefits that the customer is buying.

17)

______
A)
True

B)

False

18)
A design package defines the relationship between the 'component' products and services.

18)

______
A)
True

B)

False

19)
Form is the way in which the product or service operates.

19)

______
A)
True

B)

False
 20)
Purpose is the overall shape of the product or service.

20)

______
A)
True

B)

False

21)
Benefits are the advantages the product or service will bring to customers.

21)

______
A)
True

B)

False

22)
Form is the overall shape of the product or service.

22)

______
A)
True

B)

False

23)
Reverse engineering is taking apart a product to understand how a competing organisation has made it.

23)

______
A)
True

B)

False
 24)
A focus group will typically comprise a small group of people who know each other well.

24)

______
A)
True

B)

False

25)
Specifying the component products and services in the package is normally part of

25)

______
A)
Prototyping and final design
B)
Evaluation and improvement
C)
Preliminary design
D)
Concept generation
E)
Screening

26)
CAD may be used in which part of the design process?

26)

______
A)
Concept generation
B)
Evaluation and improvement
C)
Screening
D)
Preliminary design
E)
Prototyping and final design

27)
Feasibility analysis would normally be used in which part of the design process?

27)
______
A)
Screening
B)
Prototyping and final design
C)
Concept generation
D)
Evaluation and improvement
E)
Preliminary design

28)
Why is the timescale for product development in the computing and electronics industry relatively short?

28)

______
A)
Electronic products are simple to manufacture.
B)
There is a high demand for secondhand products, forcing new goods into the market.
C)
There is a rapid rise and decline of products in the computing and electronics market.
D)
There is little competition in the computing and electronics market.

29)
A company may use focus groups as part of concept generation. A focus group will typically comprise

29)

______
A)
Staff who take apart competitors' services/products and focus on how they have been made
B)
People identified at random by street market researchers
C)
Contact staff in a service organisation or the salesperson in a product-orientated organisation
D)
Seven to ten participants who are unfamiliar with each other and have certain characteristics in common that relate to the
particular topic

30)
If a product is well designed, an organisation will benefit financially from its launch.

30)

______
A)
True
 B)

False

31)
The nature of product and service design is the same for different types of operation.

31)

______
A)
True

B)

False

32)
There are similarities in product and service design across industries.

32)

______
A)
True

B)

False

33)
Where should product or service design start?   

33)

______
A)
With the operations manager.
B)
With human resources, operations, and marketing.
C)
With the customer.
D)
With the marketing department.

34)
Product and service design should start with the customer and finish with those in Human Resources.

34)

______
 A)
True

B)

False

35)
The 'design' of a theme park and new drug are essentially the same.

35)

______
A)
True

B)

False

36)
Operations managers are indirectly responsible for the design of goods and services.

36)

______
A)
True

B)

False

37)
Operations managers are directly responsible for product and service design.

37)

______
A)
True

B)

False

38)
A 'process' is one aspect of a product or service. It describes the package of components that provide benefits defined in
the concept.

38)
______
A)
True

B)

False

39)
Concepts comprise of a package of products and/or services.

39)

______
A)
True

B)

False

40)
'Food' and 'drink' are not aspects of a concept for a restaurant.

40)

______
A)
True

B)

False

41)
In the case of a washing machine, a guarantee can be considered a 'core' part of the package.

41)

______
A)
True

B)

False

42)
To make a final design, 'components' need to be connected in some way by having the relationship between them
formalised.

42)
______
A)
True

B)

False

43)
Which of the following is correct?

43)

______
A)
Screening is the first stage of product or service design.
B)
Evaluation comes before prototyping.
C)
Preliminary design comes after concept generation, but before screening.
D)
Concept generation comes after screening.

44)
The stages of design are the same for all companies.

44)

______
A)
True

B)

False

45)
The underlying principle of product or service design is to refine an original idea over time.

45)

______
A)
True

B)

False

46)
The design funnel depicts the progressive reduction of design options from many to one.
46)

______
A)
True

B)

False

47)
The cost of changing the design of a product or service reduces over time.

47)

______
A)
True

B)

False

48)
Ideas for new products can come from

48)

______
A)
The research and development department
B)
Interviews with customers
C)
Sources within the organisation
D)
All of the above

49)
Structured interviews are considered to be the most effective means of generating ideas.

49)

______
A)
True

B)

False
 50)
Services are easier to reverse engineer because they are more transparent to competitors.

50)

______
A)
True

B)

False

51)
Not all concepts which are generated during concept generation can be developed into products and services.

51)

______
A)
True

B)

False

52)
Which of these is NOT an example of a 'feasibility' criteria?

52)

______
A)
Do we have access to sufficient finance to develop and launch it?
B)
Is the market likely to be big enough?
C)
How much market share could it gain?
D)
Do we have the capability to produce it?

53)
The risk of being unable to produce a product or service acceptably relates to 'feasibility' in evaluating a concept.

53)

______
A)
True

B)
False

54)
The amount of money that an electronics company stands to lose from the launch of a new laptop if things do not go to
plan relates to the concept's 'vulnerability'.

54)

______
A)
True

B)

False

55)
Vertical integration is

55)

______
A)
Increasing the number of customers
B)
The purchase of competitor businesses
C)
Reducing the number of direct suppliers
D)
The extent to which an organisation owns the network of which it is part

56)
Second-tier suppliers in Company A network are

56)

______
A)
Stand by suppliers of goods to Company A
B)
Suppliers of goods directly to Company A
C)
Suppliers of goods/services to companies that, in turn, supply Company A
D)
Suppliers of 'non-core' goods directly to Company A

57)
According to Lord Sieff of Marks and Spencer what are the three most important things in retailing?

57)

______
 A)
Customers, staff and quality goods.
B)
Quality suppliers, quality shops and quality staff.
C)
Quality goods, keen prices and helpful staff.
D)
Location, location, location.

58)
The centre-of-gravity method to find a location for a factory works by

58)

______
A)
Locating near to the main customer
B)
Locating in a place that minimises total transport costs to and from the location
C)
Locating near to a cluster of suppliers
D)
Locating near to the main supplier

59)
An advantage of a capacity-lagging strategy is that

59)

______
A)
There is always sufficient capacity to meet demand
B)
Utilisation of the plants is always relatively low
C)
There is no ability to exploit short-term increases in demand
D)
Over-capacity problems are minimised if forecasts are optimistic

60)
Which of the following was NOT a key driver of the heavy Japanese investment in the UK in the 1990s?

60)

______
A)
Common cultural traditions.
B)
A critical mass of Japanese companies and supporting infrastructure.
C)
Language compatibility with the USA.
D)
A keen and willing workforce.
E)
Generous government funded financial support.

61)
The only reason that causes organisations to make location decisions is a change in demand for goods and services.

61)

______
A)
True

B)

False

62)
Of the supply-side influences community factors include all, bar one, of the following considerations

62)

______
A)
Government financial assistance
B)
Image of the location
C)
History of labour relations
D)
Local amenities
E)
Language

63)
An organisation's vertical integration strategy does NOT include

63)

______
A)
The investment in distribution warehouses
B)
The directions of any expansion
C)
Upstream or downstream expansion
D)
The extent of the process span required
E)
The balance among the integrated stages

64)
Supply-side influences on the design of operations would NOT include   

64)

______
A)
Labour skills
B)
Land costs
C)
Labour costs
D)
Transportation factors
E)
Energy costs

65)
If a car assembly operation were to buy a component maker this is a form of

65)

______
A)
Upstream integration

B)

Downstream integration

66)
If a car assembly operation were to buy a wholesaler this is a form of

66)

______
A)
Upstream integration

B)

Downstream integration

67)
If a component maker were to buy a raw materials supplier this is a form of

67)

______
A)
Upstream integration

B)
Downstream integration

68)
If a retailer were to buy a wholesaler this is a form of

68)

______
A)
Upstream integration

B)

Downstream integration

69)
If a wholesaler were to buy an assembly operation this is a form of

69)

______
A)
Upstream integration

B)

Downstream integration

70)
Over-capacity problems are minimised if forecasts are optimistic.

70)

______
A)
Capacity-leading strategy

B)

Capacity-lagging strategy

71)
Capital spending on the plants is delayed.

71)

______
A)
Capacity-leading strategy

B)
Capacity-lagging strategy

72)
Any critical start-up problems with new plants are less likely to affect supply to customers.

72)

______
A)
Capacity-leading strategy

B)

Capacity-lagging strategy

73)
There is always sufficient capacity to meet demand, therefore revenue is maximised and customers are satisfied.

73)

______
A)
Capacity-leading strategy

B)

Capacity-lagging strategy

74)
Determine whether the stated disadvantage is created by a capacity-leading strategy or a capacity-lagging strategy
Capital spending on plant early.

74)

______
A)
Capacity-leading strategy

B)

Capacity-lagging strategy

75)
Determine whether the stated disadvantage is created by a capacity-leading strategy or a capacity-lagging strategy No
ability to exploit short-term increase in demand.

75)

______
A)
Capacity-leading strategy
 B)

Capacity-lagging strategy

76)
Determine whether the stated disadvantage is created by a capacity-leading strategy or a capacity-lagging strategy
Under-supply position even worse if there are start-up problems with the new plants.

76)

______
A)
Capacity-leading strategy

B)

Capacity-lagging strategy

77)
Determine whether the stated disadvantage is created by a capacity-leading strategy or a capacity-lagging strategy
Utilisation of the plants is always relatively low, therefore costs will be high.

77)

______
A)
Capacity-leading strategy

B)

Capacity-lagging strategy

78)
The location decision is determined by the relative strength of supply-side and demand-side factors.    Are Energy costs
supply side or demand side.

78)

______
A)
Supply-side factor

B)

Demand-side factor

79)
The location decision is determined by the relative strength of supply-side and demand-side factors.    Are Labour skills
supply-side or demand-side.

79)
______
A)
Supply-side factor

B)

Demand-side factor

80)
The location decision is determined by the relative strength of supply-side and demand-side factors.    Are Community
factors supply-side or demand-side.

80)

______
A)
Supply-side factor

B)

Demand-side factor

81)
The location decision is determined by the relative strength of supply-side and demand-side factors.    Are Convenience
for customers supply-side or demand-side.

81)

______
A)
Supply-side factor

B)

Demand-side factor

82)
The centre-of-gravity method is used to find a location that minimises transportation costs.

82)

______
A)
True

B)

False

83)
The weighted-score method to find a location is based on calculating the weight of goods to be transported to give an
indication of relative costs.

83)

______
A)
True

B)

False

84)
An advantage of a smoothing with inventory strategy is that it reduces the risk of product deterioration and obsolescence.

84)

______
A)
True

B)

False

85)
A demand forecast predicts a company's

85)

______
A)
Material funding requirements
B)
Output
C)
Profitability
D)
Capacity requirements
E)
Sales

86)
Sales of computers over the last five months were January 34 / February 37 / March 28 / April 37 / May 39. What is the
difference between the three-month moving average forecast for May and the actual sales?

86)

______
A)
3
 B)

C)

D)

E)

87)
No operation exists in isolation.

87)

______
A)
True

B)

False

88)
Operations managers are not involved in designing the shape and form of the network in which their operation is set.

88)

______
A)
True

B)

False

89)
Network design decisions start with setting the maximum cost an organisation is willing to pay its suppliers for goods or
services.

89)

______
A)
True
 B)

False

90)
Strategic network design decisions help to

90)

______
A)
All of the below
B)
Influence the location of each operation
C)
Influence the overall shape of an operation's network
D)
Determine how an operation should manage its overall capacity within the network

91)
A supply network perspective means setting an operation in the context of all other operations with which it interacts.

91)

______
A)
True

B)

False

92)
Which of the following is NOT a supply side element of the Britvic National Distribution Centre?

92)

______
A)
Bottling plant

B)

Inbound logistics
C)
Local distribution depots

D)

Drinks' manufacturers
 93)
Second-tier suppliers may also supply an operation directly, thus missing out a link in the network.

93)

______
A)
True

B)

False

94)
Second-tier customers are the main customer group for an operation.

94)

______
A)
True

B)

False

95)
The suppliers and customers who have direct contact with an operation are called its 'Immediate Supply Network'

95)

______
A)
True

B)

False

96)
The suppliers and customers who have direct contact with an operation are called its

96)

______
A)
Directed Supply Network

B)

Total Supply Network

C)
Focused Supply Network

D)

Immediate Supply Network

97)
All the operations that form the network of suppliers' suppliers and customers' customers are called the Global Supply
Network.

97)

______
A)
True

B)

False

98)
For a plastic homewares manufacturer, a chemical company is most likely to be a

98)

______
A)
First-tier customer

B)

First-tier supplier

C)

Second-tier supplier

99)
For a plastic homewares manufacturer, a packaging company is most likely to be a

99)

______
A)
Second-tier customer

B)

First-tier supplier
C)
Second-tier supplier
 D)

First-tier customer

100)
For a shopping mall, a cleaning materials company is most likely to be a

100)

_____
A)
Second-tier customer

B)

Second-tier supplier
C)
First-tier customer

D)

First-tier supplier

101)
Every link in a supply network contributes equally to the operation's success.

101)

_____
A)
True

B)

False

102)
The vertical integration decision is concerned with how much of the network the operation should own.

102)

_____
A)
True

B)

False

103)
Capacity management, location and vertical integration decisions all rely on assumptions regarding future demand.
103)

_____
A)
True

B)

False

104)
The most common example of network reconfiguration has come in the attempts made by many companies to reduce the
number of suppliers with whom they have direct contact.

104)

_____
A)
True

B)

False

105)
The strategy of expanding on the demand side of the network is sometimes called backward integration.

105)

_____
A)
True

B)

False

106)
Upstream vertical integration refers to the strategy of expanding on the supply side of the network.

106)

_____
A)
True

B)

False

107)
Downstream vertical integration refers to the strategy of expanding on the demand side of the network.
107)

_____
A)
True

B)

False

108)
Late delivery penalties in a supply contract can encourage good delivery performance, but distance and organisational
barriers may inhibit communication.

108)

_____
A)
True

B)

False

109)
If the activity is considered to be of strategic importance.

109)

_____
A)
Explore outsourcing this activity

B)

Explore keeping this activity in-house

110)
If the company's operations performance is considered superior to that of potential suppliers.

110)

_____
A)
Explore keeping this activity in-house

B)

Explore outsourcing this activity

111)
If the company does not have specialised knowledge in the production of the product.

111)

_____
A)
Explore outsourcing this activity

B)

Explore keeping this activity in-house

112)
Community factors are those influences on an operation's cost that derive from the social, political and economic
environment of its site.

112)

_____
A)
True

B)

False

113)
Which of the following is a qualitative approach to forecasting?   

113)

_____
A)
Delphi method

B)

Regression analysis
C)
Causal models

D)

Time series analysis

114)
What term is used to describe the extra costs that are incurred in running an operation as it gets larger?

114)

_____
A)
Negative returns on investment

B)

Diseconomies of scale             
C)
Downshifting

D)

Critical point index

1)

B
2)
D
3)
B
4)
C
5)
A
6)
A
7)
D
8)
A
9)
B
10)
D
11)
E
12)
D
13)
B
14)
A
15)
B
16)
B
17)
A
18)
B
19)
B
 20)
B
21)
A
22)
A
23)
A
24)
B
25)
C
26)
E
27)
A
28)
C
29)
D
30)
B
31)
B
32)
A
33)
C
34)
B
35)
B
36)
A
37)
B
38)
B
39)
A
40)
B
41)
B
42)
A
43)
B
44)
B
45)
A
 46)
A
47)
B
48)
D
49)
B
50)
B
51)
A
52)
C
53)
B
54)
A
55)
D
56)
C
57)
D
58)
B
59)
D
60)
A
61)
B
62)
B
63)
A
64)
A
65)
A
66)
B
67)
A
68)
A
69)
A
70)
B
71)
B
 72)
A
73)
A
74)
A
75)
B
76)
B
77)
A
78)
A
79)
A
80)
A
81)
B
82)
A
83)
B
84)
B
85)
E
86)
C
87)
A
88)
B
89)
B
90)
A
91)
A
92)
C
93)
A
94)
B
95)
A
96)
D
97)
B
 98)
C
99)
B
100)
B
101)
B
102)
A
103)
A
104)
A
105)
B
106)
A
107)
A
108)
A
109)
B
110)
A
111)
A
112)
A
113)
A
114)
B