Business Design and Analysis Quiz

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Questions and Answers

What does reverse engineering involve?

Reengineering a failing product.

Changing your mind on the previous design.

Acquiring a competitor's product and studying its design features. (correct)

Altering the basic design based on user input.

What is the break-even point in break-even analysis?

The quantity where revenue equals fixed cost.

The quantity where costs exceed revenue.

The quantity where revenue equals total cost. (correct)

The quantity where revenue exceeds variable cost.

Which of the options best describes benchmarking?

Measuring against business competitors.

Implementing best practices from industry leaders. (correct)

Evaluating internal performance metrics.

Studying market trends.

To achieve profit, a company must...

Sell above the break-even point. Signup and view all the answers

What does design simplification refer to?

Reducing the number of parts and features. Signup and view all the answers

Which competitive priority typically requires the use of more general-purpose equipment?

flexibility Signup and view all the answers

Which competitive priority would MOST require highly skilled hourly workers?

flexibility Signup and view all the answers

Order winners and qualifiers are said to:

change over time. Signup and view all the answers

Which of the following is an operations decision related to the structure of the production process?

facilities Signup and view all the answers

Why should technology be acquired by a company?

it supports the company's chosen competitive priorities. Signup and view all the answers

What are the three major functions through which every business is managed?

finance, marketing, and operations management Signup and view all the answers

Which function of a business is primarily concerned with managing cash flow and capital investments?

finance Signup and view all the answers

Which business function is accountable for planning and controlling the production processes?

operations management Signup and view all the answers

Which statement regarding business process reengineering is false?

it cannot be used to improve quality Signup and view all the answers

What is a primary objective of operations management regarding organizational efficiency?

eliminate activities that do not add value Signup and view all the answers

Which of the following activities does NOT add value?

waiting to see a doctor Signup and view all the answers

In the context of production, how is the transformation process characterized?

physical Signup and view all the answers

Which of the following best describes the role of the finance function within a business?

managing cash flow and capital investments Signup and view all the answers

Which of the following may not be considered an input of a transformation process?

managers Signup and view all the answers

Which activity does not add value in a process?

filling gas tanks at a service station Signup and view all the answers

What term describes long-term decisions that guide the overall organization?

strategic Signup and view all the answers

Which statement is correct regarding tactical and strategic decisions?

Tactical decisions focus on day-to-day activities. Signup and view all the answers

Which of the following tasks is not primarily associated with operations management?

advertising strategy Signup and view all the answers

Management science primarily emphasizes which of the following?

quantitative techniques for operations Signup and view all the answers

Which of the following is a true description of operations management?

It deals primarily with production processes. Signup and view all the answers

Which of the following activities adds value in a production process?

transporting goods to the market Signup and view all the answers

Which decision made by FedEx supports its business strategy?

Driving its fleet of tractor trailers and using a sophisticated bar code technology. Signup and view all the answers

Which of the following is a characteristic of operational efficiency?

Performing operations tasks effectively. Signup and view all the answers

What is the term for the process of observing the external environment?

Environmental scanning. Signup and view all the answers

Which of the following would NOT be considered a core competency?

An outdated technology framework. Signup and view all the answers

What must be formulated after developing a business strategy?

An operations strategy. Signup and view all the answers

Which competitive priority is associated with the use of more general-purpose equipment?

Cost Signup and view all the answers

Which competitive priority most necessitates highly skilled hourly workers?

Flexibility Signup and view all the answers

Order winners and qualifiers are best described as:

Changing over time Signup and view all the answers

Which option is an operations decision that primarily relates to production process structure?

Facilities Signup and view all the answers

What is a valid measure of productivity?

Partial productivity measure Signup and view all the answers

Study Notes

Reverse Engineering

Reverse engineering is a design based on user input
It is also reengineering a failing product and relabeling it for sale
It is about acquiring a competitor's product to study its features
It is changing your mind on a previous design

Studying Practices

Studying the practices of companies is considered "best in class"
Comparing your company against theirs

Supplier Involvement in Design

Supplier involvement in a design process is called reengineering
It is a design process that involves suppliers early in the process
Other related terms are reengineering, disaggregation, redesign, and involvement

Break-Even Analysis

Break-even analysis is used to find the break-even point
The break-even point is the quantity where revenue equals fixed costs
The quantity is where revenue equals total cost
The quantity where revenue equals variable costs to lose money.
The quantity beyond which the cost equals fixed cost.
In order to make a profit, the company must sell above the break-even point

Product Design Evaluation

The final design stage is evaluated based on major business needs
Initial product design is drawn up by design engineers
Product specifications are for the first time
The product reaches full production

Design Simplification

Design simplification refers to reducing the number of parts and features of a product.

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Description

Test your knowledge on reverse engineering, supplier involvement in design, and break-even analysis. This quiz covers key concepts related to business practices, product redesign, and financial metrics critical for business success.