Product Strategy and Life Cycles
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Questions and Answers

What is the impact of customer involvement on service productivity?

  • It complicates product design. (correct)
  • It reduces the need for customization.
  • It has no effect on service productivity.
  • It significantly enhances service productivity.

    • Which of the following methods helps ease the customization of services?

  • Modularization (correct)
  • Increase in service variables
  • Standardization
  • Over-customization

    • What does a 'moment of truth' refer to in service interactions?

  • The moment when service automation is applied.
  • The initial contact with the customer.
  • A critical moment influencing customer satisfaction. (correct)
  • The final stage of delivery.

    • How can automation benefit service operations?

    <p>It reduces costs and improves customer service.</p> Signup and view all the answers

    What is the first step in applying decision trees to product design?

    <p>Include all possible alternatives and states of nature.</p> Signup and view all the answers

    What is the main purpose of configuration management systems?

    <p>To manage engineering change notices (ECNs)</p> Signup and view all the answers

    Which document provides instructions to produce a specified quantity of an item?

    <p>Work order</p> Signup and view all the answers

    What does the Process-Chain-Network (PCN) analysis primarily focus on?

    <p>Optimizing interaction between firms and customers</p> Signup and view all the answers

    Which document helps track the operations and times required to produce a component?

    <p>Route sheet</p> Signup and view all the answers

    What is a characteristic of Product Life-Cycle Management (PLM) systems?

    <p>They combine various elements of product design and manufacture</p> Signup and view all the answers

    Which region of the PCN analysis involves direct interaction between participants?

    <p>Direct interaction region</p> Signup and view all the answers

    Which document shows the exploded view of a product for assembly purposes?

    <p>Assembly drawing</p> Signup and view all the answers

    What is a primary benefit of reduced tooling setup time in manufacturing?

    <p>Shortened production time</p> Signup and view all the answers

    What is a key reason for the trial production period in product development?

    <p>To ensure producibility</p> Signup and view all the answers

    Which transition approach involves both project managers and product development teams?

    <p>Project-based transition</p> Signup and view all the answers

    How does quality management contribute to a firm's profitability?

    <p>By enhancing customer satisfaction and reducing internal costs</p> Signup and view all the answers

    What must occur as a product moves through its life cycle?

    <p>Responsibilities must transition from design to line management</p> Signup and view all the answers

    What principle is NOT part of total quality management activities?

    <p>Profit maximization</p> Signup and view all the answers

    What is a demand of building a quality organization?

    <p>Fostering a strong commitment to continuous improvement</p> Signup and view all the answers

    What is NOT a common approach to managing the transition to production?

    <p>Consulting external experts</p> Signup and view all the answers

    Which of the following contributes to employee fulfillment in quality management?

    <p>Strong organizational commitment</p> Signup and view all the answers

    What is the primary objective of product decision-making?

    <p>To develop a product strategy that meets market demands</p> Signup and view all the answers

    Which of the following is NOT a phase of the product life cycle?

    <p>Expansion Phase</p> Signup and view all the answers

    What is emphasized during the maturity phase of a product's life cycle?

    <p>Competitors being established in the market</p> Signup and view all the answers

    Which strategy is exemplified by Taco Bell?

    <p>Low cost</p> Signup and view all the answers

    What is the purpose of Quality Function Deployment (QFD)?

    <p>To relate customer needs to product design</p> Signup and view all the answers

    Which of the following is an advantage of a team approach to product development?

    <p>Reduced time for market entry</p> Signup and view all the answers

    What does modular design provide to a product?

    <p>Enhanced flexibility in production and marketing</p> Signup and view all the answers

    What role does 'concurrent engineering' serve in product development?

    <p>Simultaneous performance of product development stages</p> Signup and view all the answers

    Which technology aids in creating interactive 3-D models of products?

    <p>Virtual reality technology</p> Signup and view all the answers

    What does the Bill of Materials (BOM) detail about a product?

    <p>Components and where they are used</p> Signup and view all the answers

    What is the main focus of sustainability in product design?

    <p>Meeting present needs without compromising future generations</p> Signup and view all the answers

    What drives the CAD/CAM system?

    <p>Computer-aided design system</p> Signup and view all the answers

    What is a characteristic of robust design?

    <p>Variations in production do not affect quality</p> Signup and view all the answers

    What does the term 'value analysis' focus on?

    <p>Design improvement during production</p> Signup and view all the answers

    What is the primary purpose of a Pareto chart?

    <p>To identify and plot problems or defects in descending order of frequency</p> Signup and view all the answers

    Which of the following statements about Quality Circles is true?

    <p>Quality Circles consist of trained employees solving problems regularly.</p> Signup and view all the answers

    What is a key benefit of resolving customer complaints on the first contact?

    <p>It reduces the overall cost of service.</p> Signup and view all the answers

    What does an internal benchmarking process facilitate?

    <p>It allows for performance comparisons across different areas of a large organization.</p> Signup and view all the answers

    Which statement best describes a flowchart?

    <p>It describes step-by-step processes in a structured format.</p> Signup and view all the answers

    What is the function of a Statistical Process Control Chart?

    <p>To plot statistical values over an extended period.</p> Signup and view all the answers

    What is one justification for making it easy for clients to complain?

    <p>It provides free market research.</p> Signup and view all the answers

    What is a characteristic of a histogram?

    <p>It displays the frequency of occurrences of a variable.</p> Signup and view all the answers

    Which concept refers to foolproof devices or techniques designed to ensure only acceptable products pass through?

    <p>Poka-yoke</p> Signup and view all the answers

    What should managers recognize as crucial for evaluating service quality?

    <p>The service process significantly affects customer satisfaction</p> Signup and view all the answers

    Which of the following is NOT a determinant of service quality?

    <p>Inventory control</p> Signup and view all the answers

    What characterizes 'variables' in quality measurement?

    <p>Measurements include dimensions like weight and speed</p> Signup and view all the answers

    Which option describes the concept of 'service recovery'?

    <p>Plans for when service failures occur</p> Signup and view all the answers

    What does 'responsiveness' in service quality refer to?

    <p>Willingness of employees to provide help and service</p> Signup and view all the answers

    Which of the following organizations emphasizes quick retrieval of baggage as a standard?

    <p>Alaska Airlines</p> Signup and view all the answers

    Which attribute of service quality pertains to trustworthiness and believability?

    <p>Credibility</p> Signup and view all the answers

    Which strategy should be included as part of a service recovery plan?

    <p>React promptly to customer complaints</p> Signup and view all the answers

    In quality management, what does 'tangibles' refer to?

    <p>Physical evidence associated with a service</p> Signup and view all the answers

    Which aspect of service quality involves keeping customers informed?

    <p>Communication</p> Signup and view all the answers

    Which standard indicates a receptionist should answer the phone by the second ring?

    <p>Jones Law Office</p> Signup and view all the answers

    Which quality attribute means possession of required skills to perform a service?

    <p>Competence</p> Signup and view all the answers

    What is a key challenge in measuring service quality compared to goods quality?

    <p>Intangible expectations of customers can vary widely</p> Signup and view all the answers

    Study Notes

    Product Decision

    • Organizations need to create a product strategy that meets market needs and anticipates trends for differentiation.Differentiation (e.g., Shouldice Hospital)
    • Low cost (e.g., Taco Bell)
    • Rapid response (e.g., Toyota)

    Product Life Cycles

    • Can range from a few days to decades.
    • Operations must successfully introduce new products.

    Life Cycle and Strategy

    Introductory Phase

    • Fine-tuning may require unusual expenses.
    • Research, product development, process modification, and supplier development are important.

    Growth Phase

    • Product design stabilizes.
    • Effective capacity forecasting is necessary.
    • Capacity enhancement/addition may be needed.

    Maturity Phase

    • Competitors are well-established.
    • High volume and innovative production may be needed.

    Decline Phase

    • If a product doesn't contribute significantly to the organization, a plan to terminate the offering must be made.
    • Cost control, reduced options, and paring down of the product line are possible actions.

    Product-By-Value Analysis

    • Lists products in descending order of their individual dollar contribution.
    • Lists the total annual dollar contribution of the product.
    • Helps management evaluate alternative strategies.

    Generating New Products

    • Understanding customer needs and trends in the market (Economic, Sociological and Demographic, Technological, Political and Legal, and Market practices).
    • Customer feedback, supplier, distributor insights are important.

    Quality Function Deployment (QFD)

    • Aims to ascertain customer desires and translate them into product designs.
    • Use of a planning matrix (House of quality) connects customer requirements with the firm's capabilities.

    Organizing for Product Development

    • Traditional approach: departments with defined roles and responsibilities.
    • Difficult to foster forward-thinking in a traditional approach.
    • A champion: A product manager driving the product through development process, involving related organizations.
    • Team approach: Cross-functional teams representing all disciplines, product development teams, design for manufacturability teams, and value-engineering teams.
    • Japanese approach: Whole organizational approach—no organizational divisions; product development teams, market requirements, cross-functional teams.

    Benefits: Robust Design

    • Reduced product complexity
    • Reduction of environmental impact
    • Additional standardization of components
    • Improved job design and job safety
    • Improved product maintainability
    • Typically results in lower cost and higher quality.

    Issues for Product Design

    • Robust design: Product design to withstand small variations in production and assembly.
    • Modular Design: Products designed in easily segmented components.
    • Computer-aided design (CAD): Using computers for product design and documentation. Improved accuracy, reduced development cycles, and deployment of info worldwide.
    • Computer aided manufacturing (CAM): Utilizing specialized computers and programs. Often driven by the CAD system.
    • Virtual reality tech: Enables an interactive, three-dimensional model of a product before a physical model. Effective in large-scale designs.

    Value Analysis

    • Focuses on design improvement during production, leading to products manufactured more economically, while reducing environmental impact.

    Sustainability and Life Cycle Assessment (LCA)

    • Meeting present needs without compromising the future.
    • Formal evaluation of environmental impact.

    Extensions of CAD

    • 3-D object modeling; Small prototype development; Design for Manufacturing and Assembly (DFMA), CAD through the internet, International data exchange (STEP), 3-D printing.

    Benefits of CAD/CAM

    • Product quality improvement.
    • Shorter design time.
    • Reduced production costs.
    • Database availability (access to designs).
    • New range of product capabilities available.

    Product Development Continuum

    • Product development is evolutionary and continuous,
    • Products transition from design to production in a timely manner.
    • Ensuring successful production through considerations of tooling, quality control, and training are essential.
    • Products transition through their lifecycle with management responsibilities adjusting throughout

    Managing Quality Supports

    • Differentiation, low cost, and response strategies.
    • Helps firms increase sales and reduce costs.

    Building a quality organization is a demanding task.

    Defining Quality

    • An operations manager's objective is to build a total quality management (TQM) system identifying and satisfying customer needs.

    Different Views of Quality

    • User-based (better performance and features).
    • Manufacturing-based (conformance to standards).
    • Product-based (specific and measurable attributes).

    Implications of Quality

    • Company reputation.
    • Perception of new products.
    • Employment practices.
    • Supplier relations.
    • Product liability and risks.
    • Global implications and competitive advantage.

    ISO 9000 International Quality Standards

    • International recognition.
    • Encourages quality procedures, detailed documentation.
    • 2015 revision emphasizes risk-based thinking.

    Costs of Quality

    • Prevention costs (reduce potential defects).
    • Appraisal costs (evaluate products/services).
    • Internal failure costs (defective parts/services before delivery).
    • External failure costs (defects post-delivery).

    Process-Chain Network (PCN) Analysis

    • Identifies direct and indirect interactions.
    • Focuses on interactions between firms and clients to optimize operations.

    Adding Service Efficiency

    • Improves service productivity.
    • Complicates product design, limits choices, and increases efficiency.
    • Improves ability to meet customer expectations, delay customization, and enhance modularization.
    • Streamlines service automation, reducing costs, and increases customer service.

    Moment of Truth

    • Critical organizational moments impacting customer satisfaction.

    Documents for Services

    • High volume of customer interaction necessitates distinct details.
    • Scripts and storyboards utilized.

    Procedure for Product Decisions

    • Consider all alternatives.
    • Calculate expected values of alternatives.
    • Prune the tree to select the best alternative based on expected values.

    Process Definition (Chain-Network):

    • Focuses on optimizing process interaction.
    • Steps that directly involve participants, substitute interactions, and independent processing.

    Seven Concepts of TQ M

    • Continuous improvement (never-ending).
    • Covers people, equipment, suppliers, procedures.
    • Every operation, including parts and components, can be improved.
    • Kaizen (ongoing process improvement).
    • Six Sigma (process improvement, zero defects).

    Statistical Process Control

    • Uses statistics and control charts to identify corrections.
    • Drives process improvement, involves measurements and when indicated, finding assignable causes for deviations and initiating corrections

    Tools of TQM

    • Check sheets: Record data systematically.
    • Scatter diagrams.
    • Cause-and-effect diagrams (fishbone diagrams): Identify causes for effects.
    • Pareto charts: Prioritize problems based on frequency.
    • Flowchart (process diagram).
    • Histogram.
    • Statistical Process Control Chart.

    Quality Circles

    • Groups of employees working together to solve problems.
    • Trained in planning, problem-solving, and statistical methods.
    • Facilitation can improve effectiveness.

    Best Practices for Resolving Customer Complaints

    • Make complaints easy.
    • Respond quickly.
    • Resolve complaints on the first contact.
    • Use computers to manage complaints.
    • Recruit customer-focused staff.

    Internal Benchmarking

    • Used when organizations are large enough to gain insights, allowing data access for improvement.

    Flow Charts

    • Graphical representation of steps and procedures for tasks, often relevant to quality processes.

    Statistical Process Control (SPC) Charts

    • Use of statistical tools (charts) in conjunction with process measurements for corrective action and improvement.

    Control Charts

    • Graphical tool for process control using data to monitor variations.

    Inspection

    • Item examination to verify quality meets standards.
    • Detecting defective items.
    • Identifying process or product deficiencies.

    When and Where to Inspect

    • Supplier's plant during production.
    • Upon receipt of goods.
    • Before costly irreversible processes.
    • During phases of production or service.
    • Before customer delivery.
    • When customer contact occurs.

    Service Industry Inspection

    • Organizations examine characteristics (e.g., speed of service, product accuracy, etc.).
    • Standardized metrics are used to assess performance and customer interactions.

    Attributes Versus Variables

    • Attributes: Categories or qualities (good/bad, acceptable/unacceptable).
    • Variables: Specific measurable values (e.g., weight, speed, dimension).

    Service Quality

    • Intangible differences between products.
    • Customers expect intangible service experiences.
    • Service processes are crucial.
    • Service is evaluated against customer expectations.

    Determinants of Service Quality

    • Reliability.
    • Responsiveness.
    • Competence, access.
    • Courtesy.
    • Communication.
    • Credibility.
    • Security/freedom from doubt.
    • Understanding customers' needs.
    • Tangibles.

    Service Recovery Strategy

    • Plan for handling service failures.
    • Example: Marriott's Learn routine.

    Benchmarking (selecting best practices for performance)

    • What to benchmark.
    • Forming benchmark teams.
    • Identifying and analyzing benchmarking info.

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    Description

    This quiz covers the various strategies involved in product development, including differentiation and cost management. It also explores the different phases of the product life cycle, from introduction to decline, and the operational challenges at each stage. Test your understanding of how to effectively manage product strategies to maintain a competitive edge.

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