Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Economic
Q:
What are the risks of championing?
Q:
What is partly parallel development process? Is it universally used?
Q:
Which of the following measures assesses the ratio of the firms total profits from new products to its total expenditures?
a. Return on innovation
b. Average cycle time of the innovation
c. Percent of development projects meeting deadlines
d. Percent of development projects within the estimated budget
Q:
Additive manufacturing refers to:
a. printing a design by laying down thin horizontal cross sections of material.
b. printing a new design that converges with an old design by adding details.
c. constructing a model by injection molding.
d. constructing a model by machining a mold.
Q:
In the context of FMEA, which of the following formulas is used to calculate the risk priority number?
a. Risk priority number = total profits from new products/ total expenditures
b. Risk priority number = total profits from new products - total expenditures
c. Risk priority number = successful projects/ total project portfolio
d. Risk priority number = severity X likelihood of occurrence X inability of controls to detect
Q:
Jupiter Tech Inc. conducted a failure modes and effects analysis of a digital identification system that it had developed. The scores are as follows:
Severity = 4
Likelihood of occurrence = 2
Inability of controls to detect it = 3
What is the risk priority number of the digital identification system?
a. 24
b. 6
c. 2.67
d. 9
Q:
Which of the following is true of design for manufacturing (DFM) methods?
a. Considering manufacturing at an early stage of the design process can lengthen development cycle time.
b. It fails to structure the new product development process.
c. It is a method of facilitating integration between engineering and manufacturing.
d. It is a method by which firms identify potential failures in a system, and classify them according to their severity.
Q:
Alpha Cleaning Equipment Co. wants to use the house of quality matrix in designing and developing a new vacuum cleaning machine. The use of house of quality will typically:
a. provide a common language and framework for members of a project team to use.
b. blur the relationship between product attributes and customer requirements.
c. conceal the competitive shortcomings of the companys existing products.
d. hide design trade-offs.
Q:
Alpha Cleaning Equipment Co. wants to use the house of quality matrix in designing and developing a new vacuum cleaning machine. What is the last step that Alpha will have to take?
a. Determine the relative value or weight of customer requirements.
b. Create a new design based on the design targets.
c. Identify engineering attributes that determine the performance of the vacuum cleaner.
d. Evaluate competing products to determine how well they meet customer needs.
Q:
Alpha Cleaning Equipment Co. wants to use the house of quality matrix in designing and developing a new vacuum cleaning machine. What is the first step that Alpha should take?
a. Identify customer requirements.
b. Determine the relative value or weight of customer requirements.
c. Identify engineering attributes that determine the performance of the vacuum cleaner.
d. Evaluate competing products to determine how well they meet customer needs.
Q:
The stage after the investigation and conceptualization of the project is:
a. verifying and validating the proposed new project and its marketing.
b. building a business case that includes a defined product.
c. the actual design and development of the product
d. defining the test plans to be utilized in the next stage.
Q:
According to the stage-gate process developed by Robert G. Cooper, _____ are the results of the previous stage and are the inputs for the gate review.
a. criteria
b. outputs
c. deliverables
d. beta versions
Q:
Alpha Cleaning Equipment Co. has started the actual design and development of a new floor buffing machine. It also has the details of manufacturing, marketing, and operations of the new product. According to the stage-gate process, what is the next stage of the project?
a. Launch the product by producing it commercially and selling it.
b. Verify and validate the new product, its marketing, and production.
c. Form a focus group to make sure the product meets user expectations.
d. Build a business case to justify the project.
Q:
Alpha Cleaning Equipment Co. is developing a new street sweeper machine. It has a business plan and a detailed plan of action for the machine. According to the stage-gate process, what is the next stage of the project?
a. Launch the product by producing it commercially and selling it.
b. Verify and validate the new product, its marketing, and production.
c. Begin the actual design and development including the details of manufacturing, marketing, and operations.
d. Build a business case to justify the project.
Q:
_____ is a distributed problem-solving model whereby a design problem or production task is presented to people who voluntarily contribute their ideas and effort in exchange for compensation, intrinsic rewards, or a combination thereof.
a. Championing
b. Crowdsourcing
c. Partly parallel development
d. Sequential development
Q:
A DVD manufacturing company is considering involving the suppliers of the electronic components used in its DVD players/recorders in the concept development and design of a new version of its products. Research has shown that including suppliers will result in:
a. bringing products to the market more slowly because getting their input takes time.
b. an increased cost because they must be paid for their contributions.
c. a higher quality of product as their ideas can be incorporated into the design.
d. short-term supplier relations.
Q:
Matrix Technologies Inc. has recently developed a new personal digital assistant (PDA). The marketing director of the firm says that the firm should not use a large sample of customers to test the market for its new PDA. Instead, it should focus on the inputs of _____, because they have the same general needs as the marketplace, but are likely to face them earlier than the bulk of the market.
a. focus groups
b. lead users
c. antichampions
d. laggard customers
Q:
Dr. Peterson is a professor of Information Systems at MountNewfield University. She was asked to be a beta tester for the latest version of Microsoft Office a year before it was released because she tends to use such programs in an advanced way and often develops her own solutions to problems with the programs. She made several suggestions for its improvement. She is a(n):
a. lead user.
b. laggard customer.
c. expert technician.
d. consumer advocate.
Q:
Customers who face the same general needs of the marketplace but are likely to experience them months or years earlier than the rest of the market and stand to benefit disproportionately from solutions to those needs are referred to as _____.
a. laggards
b. intrapreneurs
c. early followers
d. lead users
Q:
Astech Inc. has been developing a new graphic design software. The firm releases a functional version of the software, and sends it to several lead users for testing. Based on the feedback from the lead users, the firm will improve the design of the product, and begin commercial production. This initial version of the product is referred to as the _____.
a. spiral model
b. substitute product
c. beta version
d. alpha model
Q:
A(n) _____ of a product is an early working prototype of a product released to users for testing and feedback.
a. beta version
b. substitute
c. spiral model
d. alpha model
Q:
An antichampion is:
a. a person who wishes to sabotage a new project.
b. a person who plays the role of the devils advocate.
c. a person who uses subjective criteria to evaluate a new project.
d. a person in a competing firm who sabotages market tests by promoting his companys products more heavily than normal.
Q:
Josh is the executive vice president of a bank. Recently the president of the bank asked Josh to use his influence to ensure that the online banking project was developed and implemented. Paul is being asked to be a:
a. devils advocate.
b. project champion.
c. entrepreneur.
d. mentor.
Q:
Which of the following statements is true of partly parallel development processes?
a. It enhances the probability that R&D will design products that are difficult to manufacture.
b. It requires costly iterations between design stages.
c. It shortens overall cycle time.
d. It initiates product design after concept development is complete.
Q:
Trekker Inc. has developed a product with a very short product development cycle. Which of the following results can it typically expect?
a. Its sales will be slow as consumers will already be committed to other products.
b. It will be able to provide complementary goods to enhance the attractiveness of its product.
c. It will be unable to fully amortize the fixed costs of development before the product becomes obsolete.
d. It will not be able to upgrade its product.
Q:
Which of the following is typically true regarding a firm with a long development cycle time?
a. It can quickly revise or upgrade its product offering.
b. Its cost of capital will increase.
c. It can take advantage of both first-mover and second-mover advantages.
d. It is more likely to be able to fully amortize the fixed costs of development before that generation becomes obsolete.
Q:
The time elapsed from project initiation to product launch, usually measured in months or years is referred to as _____.
a. diffusion of innovation time
b. technology trajectory
c. development cycle time
d. the Six Sigma period
Q:
Three-dimensional printing can generate a model in a few hours.
Q:
Computer-aided manufacturing (CAM) is faster and more flexible than traditional methods of manufacturing.
Q:
Using computer-aided design (CAD) to build and test product design increases cycle time.
Q:
In failure modes and effects analysis (FMEA), potential problems in a system are classified according to the time at which they occurred.
Q:
In the context of design rules for fabricated assembly products, minimizing the number of parts for a product reduces direct labor and material handling costs.
Q:
One of the drawbacks of Quality Function Deployment (QFD) is that it hinders cross-functional communication.
Q:
The house of quality uses a scale of one to ten to evaluate competing products.
Q:
Quality Function Deployment (QFD) was developed in Germany.
Q:
In the product development process, expenditures increase as uncertainty increases.
Q:
The criteria in the go/kill decision points are the questions or metrics used to make the decision regarding whether or not to kill the project or allow it to proceed.
Q:
In Stage 1 of the stage-gate process, the team builds a business case that includes a defined product, its business justification, and a detailed plan of action for the next stages.
Q:
Suppliers can contribute ideas for product improvement or increased development efficiency.
Q:
Oxygenic is a company that uses photodynamic therapy to treat cancer and has major divisions in Germany, Russia, and the United States. The scientists in Russia develop the cancer treatment methods, treatment clinics are organized in Germany, and the U.S. division gathers the finance and markets the treatment methods. What type of strategy is being employed by Oxygenic and what are the advantages and disadvantages of this type of strategy?
Q:
Phoenix Motor Company is considering using loosely-coupled organizational structure. They have asked for your evaluation of such a structure and if you would recommend it for an automobile manufacturer. Provide your answer.
Q:
Explain why a mechanistic organizational structure stifles creativity.
Q:
Biotrue produces tissues and diagnostics substances for three market segments: hospitals, universities, and pharmaceutical companies. The firm is trying to decide whether to decentralize its R&D activities by division or not. You have been called in as a consultant to explain the advantages and disadvantages of such a move. What will your opinion be?
Q:
What are some of the advantages and disadvantages of large firms in terms of R&D?
Q:
In a locally leveraged strategy to innovation, the R&D divisions _____.
a. are completely centralized
b. each play a different role in the companys overall R&D strategy
c. work on the full scope of development activities relevant to their business unit
d. do not share creative resources and innovative developments
Q:
Oxygenic is a company with major decentralized divisions in Germany, Russia, and the United States. The scientists in Russia develop cancer treatment methods. Treatment clinics are organized in Germany. The U.S. division gathers finance and markets the treatment methods. The activities of the different divisions are coordinated by the central office of the firm to meet companywide objectives. This is an example of a _____ strategy.
a. center-for-global
b. local-for-local
c. locally leveraged
d. globally linked
Q:
Not-invented-here syndrome occurs when:
a. a division of a firm is reluctant to adopt other divisions innovations.
b. a firm tends to always adopt innovations developed by competitors.
c. an innovation is openly accepted without testing its suitability.
d. developers of a failed innovation refuse to take responsibility for its failure.
Q:
M&P Inc., a consumer goods manufacturing firm, has subsidiaries throughout the globe that have to respond to varying local market requirements. Therefore, the firm has planned to adopt a local-for-local approach to innovation. Which of the following is true in this context?
a. The subsidiaries of M&P Inc. and their R&D divisions will be highly autonomous.
b. The subsidiaries will achieve economies of scale in R&D activities.
c. This approach will make diffusion of valuable innovations across the company simple.
d. This approach will reduce redundancy in activities.
Q:
The Sapphire Crystal Company wants to tightly control R&D activities and achieve specialization and economies of scale. At the same time, it wants to protect its core competencies and avoid significant redundancy in R&D activities. The _____ strategy is best suited to achieve this goal.
a. center-for-global
b. local-for-local
c. organic structure
d. disaggregation
Q:
Which of the following is true of loosely coupled organizational structures?
a. In loosely coupled structures, development and production activities have different objectives and standards.
b. The possibility of achieving synergies is low in loosely coupled structures.
c. They are useful in organizations characterized by activities that require the frequent exchange of complex or tacit knowledge.
d. They provide mechanisms for resolving conflict that are more effective or less expensive than those available in the market.
Q:
ErgoWorld manufactures office furniture. The company is considering adopting a modular production system. A modular system offers greater value to ErgoWorld when:
a. most customers are likely to agree on a single product configuration.
b. customers prefer to upgrade their products by replacing their entire system.
c. customers are willing to pay a premium price for extreme customization and personalization.
d. customers have heterogeneous demands which are expected to be met in a cost-effective way.
Q:
Modern Woods Furniture Company uses a limited number of components to make several different types of tables by configuring them in many possible ways. Customers can mix and match a number of components to meet their specific needs. Modern Woods is said to be applying:
a. product modularity.
b. mass standardization.
c. architectural innovation.
d. component parallelism.
Q:
Which of the following helps organizations collectively achieve both efficiency and flexibility?
a. Mechanistic structure
b. Organic structure
c. Modular system
d. Formalization
Q:
According to Schoonhoven and Jelinek, quasiformal structures are:
a. slow to respond to the need for changes.
b. useful in fostering interactions based on hierarchy.
c. less problem-focused than rest of the company.
d. not a part of the formal reporting structure.
Q:
Which of the following is true of skunk works?
a. They are isolated from the mainstream organization to which they belong.
b. They have a mechanistic structure.
c. They are bound by the demands of the rest of the organization.
c. They are teams that face high degrees of centralization of authority and bureaucracy.
Q:
Liam, an employee at Centaurs Inc., is a part of a new product development team that operates in a completely different manner from its parent organization. Within the team, there is considerable decentralization of authority, limited bureaucracy, and it also has its own unique culture. Liams team can be referred to as:
a. a mechanistic team.
b. skunk works.
c. an inorganic group.
d. a quality circle.
Q:
Which of the following is true of ambidextrous organizations?
a. They have uniform incentive plans for all employees within the organization.
b. They help achieve long-term innovation, but not short-term efficiency.
c. They fail to tolerate varying cultures and different sets of behavior from employees.
d. They have a complex organizational form that is composed of multiple internally inconsistent architectures.
Q:
Pipeline Designs Inc. is a firm that outsources designs for apparels and accessories to reputed fashion houses across Europe. Of late, it has been losing out on orders from important clients. A study conducted on the firm reflected that though the designers were highly capable, low levels of employee empowerment, motivation, and experimentation stifled their creativity. To tackle this problem the firm should:
a. adopt a mechanistic structure.
b. adopt high degrees of formalization and standardization.
c. adopt an organic structure.
d. avoid keeping its R&D activities decentralized.
Q:
Since much innovation arises from experimentation and improvisation, the _____ organization structure is typically considered better suited to creativity and innovation.
a. mechanistic
b. formalized
c. standardized
d. organic
Q:
A firm choosing to decentralize its R&D by divisions rather than centralizing it will have a greater possibility of:
a. maximizing economies of scale in R&D.
b. preventing redundant R&D activities from being performed in multiple divisions.
c. benefiting from the learning-curve effects.
d. matching new products to the requirements of the customers served.
Q:
Which of the following statements is true of standardization?
a. It can ensure that activities within the firm run smoothly and yield predictable outcomes.
b. It is defined as the degree to which the firm utilizes rules, procedures, and written documentation to structure the behavior of employees.
c. It involves the use of organic structures, instead of mechanistic ones.
d. It encourages the creativity and experimentation that leads to innovative ideas.
Q:
Pioneer Systems Inc. has a high degree of formalization. Employees in Pioneer Systems are more likely to:
a. exhibit high levels creativity and experimentation.
b. feel empowered to implement new solutions.
c. face morale and motivation problems.
d. face ambiguity as a result of the lack of formal rules and procedures.
Q:
Urban Fashions has become very profitable and now employs in large numbers. Serena, the owner of the firm, had been very informal in running the company. However, with the increase in the size of the firm, she feels that the informal ways of management have become ineffective. In order to structure the behavior of employees, Serena wants to introduce written codes of conduct and regulations into the firm. The method used by Serena is referred to as _____.
a. disintermediation
b. formalization
c. nationalization
d. decentralization
Q:
Large and hierarchical firms disaggregate in order to:
a. lengthen new product development cycles.
b. prevent large-scale downsizing.
c. become more responsive to technological changes.
d. curb the entrepreneurial culture within them.
Q:
Since a large company tends to have more bureaucracy, fixed costs, and commitments to large numbers of employees, customers, and suppliers than smaller firms, you can expect it to _____.
a. gamble more on big changes
b. be less responsive to technological changes
c. find it much simpler to monitor employees and reward them for their effort or success at innovation
d. experience higher rates of new product success
Q:
Altair Inc., the largest firm in the electronics market, is facing stiff competition from a relatively smaller firm, the Cygnus Group. Which of the following is an advantage that Cygnus has over Altair due its size?
a. Large fixed-asset bases
b. Multiple layers of administration
c. Flexibility and an entrepreneurial culture
d. Greater bureaucratic inertia due to well-developed policies and procedures
Q:
In the 1980s and 1990s, Neon Co. was the most successful firm in the television market. The firm believed that competitors would never be able to produce televisions comparable to its quality and cost. As a result, it was unable to respond to the new generations of television that Japanese competitors had begun to infiltrate the market with. Eventually, Neon lost its market leadership to its competitors. This is a typical example for the _____.
a. Giffen effect
b. Hawthorne effect
c. Idiosyncrasy credit
d. Icarus Paradox
Q:
Divine Laboratories, a 70 year old large pharmaceutical firm, has consistently invested heavily in R&D. Divine Laboratories would typically have:
a. better capabilities to take on larger innovation projects than smaller firms.
b. fewer rules and regulations than smaller firms.
c. a more effective governance system than smaller firms.
d. lesser bureaucratic inertia than smaller firms.
Q:
As a firm grows bigger it becomes:
a. easier to effectively monitor and motivate employees.
b. less vulnerable to bureaucratic inertia.
c. less efficient in R&D due to loss of managerial control.
d. increasingly easy for individual scientists to appropriate the returns of their efforts.
Q:
According to Bartlett and Ghoshal, for the transnational approach to R&D to work, reciprocal interdependence among the divisions of a firm must be discouraged.
Q:
The transnational approach to R&D leverages resources and capabilities that exist anywhere within the firm and deploys them when and where an opportunity to do so exists.
Q:
In globally linked strategies to innovation, R&D divisions are centralized.
Q:
Managers choose a local-for-local approach to innovation when they have a strong desire to control the evolution of a technology.
Q:
The customization of products and processes to a local market makes them particularly difficult to transfer to divisions serving different markets.
Q:
Loose coupling helps organizations reap significant synergies by being tightly integrated.
Q:
A loosely coupled structure is better suited for activities that involve exchange of tacit knowledge.
Q:
With advances in information technology, loosely coupled organizational structures are losing their popularity.
Q:
In a loosely coupled structure, development and production activities achieve coordination through tight integration.
Q:
Modular products become more valuable when customers have heterogeneous demands.
Q:
Quasiformal structures foster interactions based on hierarchy rather than on interests.