1.What is a product-by-value analysis, and what type of decisions does it help managers make? List the factors that influence new product opportunities. “With respect to the product decision, managers must be able to accept risk and tolerate failure.” Comment on why this is a necessary hazard in making new product decisions, given all the powerful tools and carefully built systems that support the managerial decision.
2.What is an operations manager’s most ethical activity? How is this duty environmentally sound? What two issues should be considered in combination in order to enhance the likelihood of ethical decisions in the realm of product design? Why is each important? List the specific guidelines that can help an operations manager achieve environmentally friendly designs. What are some of the benefits from using environmental teams for product design?
3.Discuss the advisability of using modular assemblies in manufacturing. What are the advantages and disadvantages? To what extent can these arguments be utilized in service products? List the external product development strategies. Explain how Product Life-Cycle Management (PLCM) impacts product design and cite an example.
4.JDI, Inc. is trying to decide whether to make-or-buy a part. Purchasing the part would cost them $1.50 each. If they design and produce it themselves, it will result in a per unit cost of $0.75. However, the initial design investment would be $50,000. Further, they realize that for this type of part, there is a 30% chance that the part will need to be redesigned at an additional cost of $50,000. Regardless of whether they make-or-buy the part, JDI will need 100,000 of these parts. Using decision tree analysis and EMV, what should JDI do?
5.Describe three popular measures of forecast accuracy. Explain the role of regression models (time series and otherwise) in forecasting. How is trend projection able to forecast? How is regression used for causal forecasting? List three advantages and disadvantages of the moving average forecasting model. Explain the meaning of the coefficient of determination.
6.Describe the seven steps involved in forecasting. List four quantitative forecasting models and three qualitative forecasting models. Explain the advantages and disadvantages of each. What is the difference between an associative and a time-series model? List the four components of a time series and which is rarely forecasted and why?
7.Explain the difference between value analysis and value engineering, and include the benefits of each. What is quality function deployment (QFD)? List the steps involved in building a House of Quality.
8.Many functions in a company are dependent on a forecast of product demand. There are quantitative and qualitative forecast methods. Compare, analyze, and contrast the two methods. List and describe the three major types of forecasts. Describe the three forecasting time horizons and their use. What are the realities of forecasting that companies must face?
