choose to perform concept testing

Multiple Choice Questions on Chapter 1: Introduction

1. The most important criteria for the economic success of a company depends on its:
a) ability to hire many employees
b) access to up to date technological resources
c) ability to identify customer needs and quickly create products at low cost to meet
those needs
d) none of the above.
Answer: C

2. Which of the following factors is holistically responsible for the economic success of a
business?
a) marketing
b) design
c) manufacturing
d) product development
Answer: D

3. There are _____ specific dimensions which are commonly used to assess the
performance of a product development effort.
a) five
b) six
c) seven
d) eight
Answer: B

4. Product quality is ultimately reflected in the __________ and the price that customers
are willing to pay.
a) development cost
b) development time
c) market share
d) development capability
Answer: D

5. The performance of a product development process can be assessed by:

a) product quality and cost
b) development time, cost and capability
c) both a and b
 d) none of the above
Answer: C

6. The success of the product development process of a company primarily depends on:
a) the company name
b) high performance, product quality and cost, development time, cost & capabilities
c) distribution partners
d) company’s net worth
Answer:

7. The success of the product development process of a company primarily depends on:
a) product quality and cost
b) development time and cost
c) development capabilities
d) all of the above
Answer: D

8. Sustainable product development demands:

a) that the products should be made using cheapest labor
b) ecologically sound use of resources and reduction of hazardous waste byproducts
c) that the business organizations should be not-for-profit
d) larger development costs and time
Answer: B

9. Product development is an interdisciplinary activity with three central functions. These

are:
a) Design, Marketing, and Manufacturing
b) Design, Sales, and Marketing
c) Marketing, Manufacturing and Sales
d) Design, Finance, and Manufacturing
Answer: A

10. One of the core teams of product development is:

a) Finance
b) Marketing
c) Advertising
d) Legal
Answer: B
11. One of the core teams of product development is:
a) Finance
b) Advertising
c) Design
d) Legal
Answer: C

12. The core team of product development includes all of the following areas of expertise
except:
a) Finance
b) Manufacturing
c) Design
d) Marketing
Answer: A

13. The extended team may include the following area of expertise:
a) Marketing
b) Design
c) Legal
d) Manufacturing
Answer: D

14. The extended team does not include the following area of expertise:
a) Marketing
b) Finance
c) Legal
d) Sales
Answer: C

15. The most common development time period for the development of new products is:
a) About a year
b) 3-5 years
c) 6-9 years
d) Over 10 years
Answer: B
16. Which of the following factors is/are responsible for a product’s development cost?
a) Duration of the project
b) Number of people on the project team
c) Both a and b
d) none of the above
Answer: C

17. The product development team members usually gain satisfaction from:
a) creation of the product
b) a dynamic environment
c) budget enhancements
d) none of the above
Answer: B

18. Which of the following is not a challenge for product development?

a) the presence of high team spirit
b) to earn reasonable return on investment on the product.
c) the need to make product development decisions quickly and without complete
information
d) managing trade-offs to maximize the success of a product
Answer: A

19. Characteristics of a dysfunctional product development team includes

a) a lack of empowerment of the team
b) inadequate resources
c) a lack of cross-functional representation on the project team
d) all of the above
Answer: D

20. Which is the final phase of product development process?

a) System level design
b) Detail design
c) Testing and refinement
d) Production ramp-up
Answer: D
 Multiple choice questions on Chapter 2: Development Processes and Organizations

1. A well-defined product development process is useful for:

a) hiring new employees
b) assuring the quality of the developed product
c) discovering radically different production technology
d) opening new branches for the company
Answer: B

2. A well-defined product development process helps a company to improve its:

a) coordination among team members
b) planning of milestones
c) management quality
d) all of the above
Answer: D

3. The generic product development process consists of ________ phases.

a) four
b) three
c) six
d) seven
Answer: C

4. The planning activity for the product development process is often referred to as “
_______” since it precedes the project approval and launch of the actual product
development process.
a) Phase Zero
b) the beginning phase
c) Phase One
d) the Front-End phase
Answer: A

5. During the planning stage, the Marketing division’s task is to:

a) assess available technologies
b) identify production constraints and set supply chain strategy
c) articulate market opportunity and define market segments
d) assess new technology
Answer: C
6. During the planning stage, the Manufacturing division’s task is to:
a) identify production constraints and set supply chain strategy
b) articulate market opportunity and define market segments
c) consider product platforms and assess new technology
d) allocate project resources
Answer: A

7. During the planning stage, the Design division’s task is to:

a) demonstrate available technologies
b) identify production constraints
c) articulate market opportunity and define market segments
d) consider product platforms and architecture and assess new technology
Answer: D

8. During the concept development stage, the Design division:

a) collects customer needs and identifies lead users and competitive products
b) investigates the feasibility of product concepts, develops industrial design concepts,
and builds & tests experimental prototypes
c) facilitates economic analysis
d) investigate patent issues
Answer: B

9. During the concept development stage, the Marketing division:

a) collects customer needs and identify lead users and competitive products
b) investigates the feasibility of product concepts, develops industrial design concepts,
and builds & tests experimental prototypes.
c) facilitates economic analysis
d) facilitates make-buy analysis and identify service issues
Answer: A

10. During the concept development stage, the Manufacturing division:

a) collects customer needs and identifies lead users and competitive products
b) investigates the feasibility of product concepts, develops industrial design concepts,
and builds & tests experimental prototypes.
c) estimates manufacturing costs and addresses production feasibility
d) develops industrial design concepts
Answer: C
11. The planning phase is immediately followed by the:
a) System-Level Design Phase
b) Concept Development Phase
c) Testing and Refinement Phase
d) Production Ramp-Up Phase
Answer: B

12. The concept development phase is immediately followed by the:

a) System-Level Design Phase
b) Detail Design Phase
c) Testing and Refinement Phase
d) Production Ramp-Up Phase
Answer: A

13. The system-level design phase is immediately followed by the:

a) Concept Development Phase
b) Detail Design Phase
c) Testing and Refinement Phase
d) Production Ramp-Up Phase
Answer: B

14. The detail design phase is immediately followed by the:

a) Concept Development Phase
b) System-Level Design Phase
c) Testing and Refinement Phase
d) Production Ramp-Up Phase
Answer: C

15. The testing and refinement phase is immediately followed by the:

a) Concept Development Phase
b) System-Level Design Phase
c) Planning Phase
d) Production Ramp-Up Phase
Answer: D
16. During the system-level design phase, the Marketing division:
a) Identifies suppliers for key components
b) develops plans for product options and an extended product family
c) identifies service issues
d) develops product architecture
Answer: B

17. During the system-level design phase, the Manufacturing division:

a) identifies suppliers for key components, performs make-buy analysis, and defines
final assembly schemes
b) develops plans for product options and an extended product family
c) identifies service issues
d) develops product architecture
Answer: A

18. During the system-level design phase, the Design division:

a) develops product architecture and defines major subsystems and interfaces
b) refines industrial design
c) performs preliminary component engineering
d) all of the above
Answer: D

19. During the detail design phase, the Marketing division:

a) defines the piece-part production process
b) develops marketing plans
c) identifies service issues
d) facilitates economic analysis
Answer: B

20. During the detail design phase, the Design division:

a) identifies service issues
b) defines piece-part production processes, designs tooling, defines quality assurance
processes, and begins procurement of long-lead tooling
c) defines part geometry, chooses materials, assigns tolerances, and completes
industrial design control documentation
d) develops marketing plans
Answer: C
21. During the detail design phase, the Manufacturing division:
a) Identifies service issues
b) defines piece-part production processes, designs tooling, defines quality assurance
processes, and begins procurement of long-lead tooling.
c) defines part geometry, chooses materials, assigns tolerances, and completes
industrial design control documentation
d) develops marketing plans
Answer: B

22. During the testing and refinement phase, the Design division:
a) tests overall performance, reliability and durability
b) obtains regulatory approvals
c) assesses environmental impact
d) all of the above
Answer: D

23. During the testing and refinement phase, the Marketing division:
a) assesses environmental impact
b) develops promotion and launch materials and facilitate field testing
c) develops sales plans
d) trains workforce
Answer: B

24. During the testing and refinement phase, the Manufacturing division:
a) facilitates supplier ramp-up
b) refines fabrication and assembly processes
c) trains workforce and refines quality assurance processes
d) all of the above
Answer: D

25. During the production ramp-up phase, the Manufacturing division:

a) begins full operation of the production system
b) places early production with key customers
c) evaluates early production output
d) conducts post-project reviews
Answer: A
26. During the production ramp-up phase, the Marketing division:
a) begins full operation of production systems
b) places early production with key customers
c) evaluates early production output
d) conducts post-project reviews
Answer: B

27. During the production ramp-up phase, the Design division:

a) begins full operation of production systems
b) places early production with key customers
c) evaluates early production output
d) conducts post-project reviews
Answer: C

28. The Sales division develops sales plans during the _____________ phase.
a) concept development
b) detail design
c) testing and refinement
d) production ramp-up
Answer: C

29. The Legal division investigates patent issues during the ________ phase.
a) concept development
b) detail design
c) testing and refinement
d) production ramp-up
Answer: A

30. The Finance division provides planning goals during the _________ phase and economic
analysis during the ________ phase.
a) concept development, detail design
b) detail design, testing and refinement
c) concept development, system-level design
d) planning, concept development
Answer: D
31. The concept development phase consists of many sequential activities; however, the
whole process is often _______ in nature.
a) linear
b) iterative
c) circular
d) exponential
Answer: B

32. A bookcase is an example of a:

a) generic (market pull) product
b) process-intensive product
c) high-risk product
d) complex system
Answer: A

33. A cell phone is an example of a:

a) quick-build product
b) platform product
c) generic (market pull) product
d) high-risk product
Answer: A

34. Gore-Tex rainwear is an example of a:

a) quick-build product
b) platform product
c) generic (market pull) product
d) technology-push product
Answer: D

35. Pharmaceuticals are an example of:

a) quick-build products
b) generic (market pull) products
c) high-risk products
d) technology-push products
Answer: C
36. Computers are an example of:
a) quick-build products
b) platform products
c) generic (market pull) products
d) complex systems
Answer: B

37. An airplane is an example of a:

e) quick-build product
f) high-risk product
g) generic (market pull) product
h) complex system
Answer: H

38. Batteries are:

a) customized products
b) high-risk products
c) generic (market pull) products
d) complex systems
Answer: A

39. Breakfast cereals are:

a) customized products
b) high-risk products
c) process-intensive products
d) complex systems
Answer: C

40. Restaurant services are:

a) customized products
b) product-service systems
c) process-intensive products
d) complex systems
Answer: B

41. The process flow diagram for product development can be categorized as a:
a) generic product development process
b) spiral product development process
 c) complex system development process
d) all of the above
Answer: D

42. Many iteration cycles occur between Design and Testing in a:

a) generic product development process
b) spiral product development process
c) complex system product development process
d) none of the above
Answer: B

43. The ______________ includes parallel sets of Design and Testing for subsystems.
a) generic product development process
b) spiral product development process
c) complex system product development process
d) none of the above
Answer: C

44. A product development team’s members or groups can be linked together by:
a) reporting relationships
b) financial arrangements
c) physical layout
d) all of the above
Answer: D

45. A company’s organizational structure can be aligned with:

a) a function usually involving specialized education, training, or experience
b) a specific project
c) both a function and a project
d) all of the above
Answer: D

46. In functional organizations, employees are linked together based on:

a) similar functions
b) projects
c) similar behavioral attitudes
d) none of the above
Answer: A
47. In project organizations, employees are linked together based on:
a) similar functions
b) projects
c) similar behavioral attitudes
d) None of the above
Answer: B

48. The two variants of a matrix organization are:

a) lightweight and medium-weight
b) medium-weight and heavyweight
c) heavyweight and lightweight
d) none of the above
Answer: C

49. Multi-national corporations achieve cost saving through lower wages by establishing
______ product development teams.
a) core
b) extended
c) distributed
d) none of the above
Answer: C

50. Distributed product development teams are useful because of their:

a) access to information about regional markets and availability of technical expertise
b) cost saving through lower wages and location of manufacturing facilities and
suppliers
c) outsourcing to increase product development capacity
d) all of the above
Answer: D
 Multiple choice questions on Chapter 3: Opportunity Identification

21. In the context of product development, an opportunity is:

e) a financial revenue for a product
f) a market for a new product
g) an idea for a new product
h) none of the above
Answer: C

22. Two useful dimensions for categorizing opportunities for technology-based products are
knowledge of the _________, and knowledge of the__________.
a) technology; market
b) technology; legal system
c) legal system; market
d) finances; legal system
Answer: A

Figure 3-1: Examples of different types of opportunities

23. In Figure 3-1 above, the risk and uncertainty levels from Horizon 1 to Horizon 3
a) decrease
b) increase
c) do not change
d) increase and then decrease
Answer: B

24. An opportunity tournament is a process which:

e) filters a few exceptional opportunities from large numbers of options
f) generates a few mediocre opportunities
g) does not seek high quality opportunities
h) is not very helpful in the product development process
Answer: A

25. Following is not one of the ways to increase the number of excellent opportunities:
a) generate a large number of opportunities
b) generate a small number of opportunities
c) seek high quality of the opportunities generated
d) create high variance in the quality of opportunities
Answer: B

26. Opportunity Identification is a (n) _______ process compared to the rest of the product
development process.
a) Inexpensive
b) expensive
c) equally expensive
d) lengthy and difficult
Answer: D

27. The basic ways to create excellent opportunities are:

a) generating a large number of opportunities
b) seeking to generate high quality opportunities
c) creating a high variance in the quality of opportunities
d) all of the above
Answer: D

28. Opportunity identification can be divided into a _______ step process.

a) four
 b) five
c) six
d) seven
Answer: C

29. The first step of the opportunity identification process is to:

a) select exceptional opportunities
b) screen opportunities
c) establish a charter
d) develop promising opportunities
Answer: C

30. A narrow charter allows teams:

e) not to pursue any opportunity
f) to avoid wasting effort generating opportunities unlikely to be pursued
g) to generate opportunities that may otherwise have never been considered
h) to pursue unlimited opportunites
Answer: B

31. A broad charter is recommended for a new product because it:

a) helps to generate opportunities that may otherwise have never been considered
b) allows teams to avoid wasting effort generating opportunities unlikely to be pursued
c) allows teams not to pursue any opportunity
d) none of the above
Answer: A

32. Data shows that most of the innovation opportunities in organizations are generated:
e) by suppliers
f) by customers
g) internally
h) by distribution partners
Answer: C

33. Data shows that the two most useful sources of innovation opportunities in
organizations are generated:
a) Internally and by independent inventors
b) Externally and by customers
c) Internally and by customers
 d) in universities, and by distribution partners
Answer: C

34. Which of the following techniques is NOT a good practice to generate opportunities?
a) follow a personal passion
b) study customers
c) imitate, but better
d) have managers decide on their own
Answer: D

35. The textbook discusses Matt Kressy, an avid bicyclist, who invented the nutrient delivery
system. This is an example of generating opportunity by:
a) following a personal passion
b) compiling bug lists
c) pulling opportunities from VRIN resources
d) none of the above
Answer: A

36. The unique resources for a company to achieve above-average profits are:
a) capabilities
b) core competencies
c) competitive advantage
d) all of the above
Answer: D

37. To be competitive, a firm’s resources must be:

a) easily available
b) imitable
c) rare
d) substitutable
Answer: C

38. Following a personal passion, compiling bug lists, pulling opportunities from capabilities,
and studying customers are all ways to:
a) generate and sense opportunities
b) develop promising opportunities
c) screen opportunities
d) select exceptional opportunities
 Answer: A

39. Studying customers, considering implications of trends, mining sources, and imitating
products innovated by other firms are all ways to:
a) develop promising opportunities
b) generate and sense opportunities
c) screen opportunities
d) select exceptional opportunities
Answer: B

40. The “Trek Lime” bicycle as described in the textbook is an example of successfully
generating opportunities by using the “____________” approach.
a) imitate, but better
b) study customers
c) pull opportunities from capabilities
d) mine your sources
Answer: B

41. Looking for innovation opportunities by studying social, technological or environmental

trends is an effective way to:
a) develop promising opportunities
b) screen opportunities
c) generate and sense opportunities
d) select exceptional opportunities
Answer: C

42. Growing environmental awareness creates a market for green products. This is an
example of the “______________” approach to generating opportunities.
a) study customers
b) compile bug lists
c) imitate, but better
d) consider implications of trends
Answer: D

43. Driving an innovation “down market” can be a source for generating opportunities
based on the ______________ approach.
a) implication of trends
b) imitate, but better
 c) study customers
d) mine your sources
Answer: B

44. De-commoditizing a commodity can be a source for generating opportunities based on

the _____________ approach.
a) implication of trends
b) study customers
c) imitate, but better
d) mine your sources
Answer: C

45. Altoids, as described in the textbook, is an example of a product that was created by
using the “____________” approach for generating opportunities.
a) implication of trends
b) imitate, but better
c) study customers
d) mine your sources
Answer: B

46. Generating opportunities by imitation may draw from the following sources:
a) the media and marketing activities of other firms
b) de-commoditizing a commodity
c) importing geographically isolated innovations
d) all of the above
Answer: D

47. Howard Schultz was infatuated with Milan’s café culture and espresso-based drinks and
founded Starbucks. He used the “___________” approach to generating opportunities.
a) mine your sources
b) imitate, but better
c) compile bug lists
d) copy exactly
Answer: B

48. University and government laboratories and online idea submissions are among the
sources that can be used for generating opportunities based on the
“___________________” approach.
 a) mine your sources
b) imitate, but better
c) implication of trends
d) study customers
Answer: A

49. Lead users and representation in social networks are among the sources that can be
used for generating opportunities based on the “______________” approach.
a) imitate, but better
b) implication of trends
c) mine your sources
d) study customers
Answer: C

50. The cricket and softball leagues in Silicon Valley have played a key role in facilitating the
exchange of ideas leading to opportunities for new products. This is an example of the “
___________” approach in generating opportunities.
a) study customers
b) mine your sources
c) imitate, but better
d) compile bug lists
Answer: B

51. Generating opportunities using the “mine your sources” approach could involve:
a) lead users and representation in social networks
b) universities and government laboratories
c) online idea submission
d) all of the above
Answer: D
52. External sources for generating opportunities include:
a) lead users
b) representation in social networks
c) university and government laboratories
d) all of the above
Answer: D

53. The computer company Dell runs a Web site called Idea Storm for the purpose of:
a) collaborating with other computer companies
 b) fundraising to distribute laptops to the needy children
c) soliciting innovation opportunities from customers
d) rejecting unfeasible ideas
Answer: C

54. In the Opportunity Identification process, Web-based surveys are used to:
a) screen opportunities
b) generate opportunities
c) develop opportunities
d) reflect on opportunities
Answer: A

55. In the Opportunity Identification process, Multi-voting is a method used to:

a) generate opportunities
b) develop opportunities
c) screen opportunities
d) select exceptional opportunities
Answer: C

56. Developing promising opportunities involves:

a) pursuing a few screened opportunities
b) pursuing one ideal opportunity
c) pursuing the opportunities which do not have any uncertainty
d) none of the above
Answer: A

57. In the Opportunity Identification process, the real-win-worth technique is used to:
e) generate opportunities
f) select exceptional opportunities
g) develop available opportunities
h) reflect on opportunities
Answer: B

58. A great opportunity identifying process may result in a failed product due to:
a) changes in consumer demand
b) increases in the price of raw materials
c) competitors coming out with a superior product
d) all of the above
 Answer: D

59. A product development team should not consider following factor when reflecting on
their results and process of opportunity identification phase:
a) whether filtering criteria were biased or not
b) the number and type of opportunities considered
c) market success of the product
d) marketing and sales plan for the product
Answer: D

60. The last step of the opportunity identification process is to:

a) develop promising opportunities
b) screen opportunities
c) reflect on the results and the process
d) establish a charter
Answer: C
 Multiple Choice Questions on Chapter 4: Product Planning

1. In the product planning phase, __________ is chosen among the selected opportunities,
timing of projects are outlined, and _________ are allocated.
a) a portfolio of projects; resources
b) one project; resources
c) an easily reproducible project idea; minimal resources
d) any of the project ideas; huge resources
Answer: A

2. The product plan is regularly updated to reflect:

a) a competitive environment
b) changes in technology
c) information on the success of existing products
d) all of the above
Answer: D

3. Product planning decisions are generally made by:

a) new recruits
b) mid-level management
c) senior management
d) sales managers
Answer: C

4. Poor timing of market introductions of products may occur due to:

a) inefficiencies of competitors in the market
b) inefficiencies of the product planning process of the organization
c) inadequate budget approval
d) no particular reason
Answer: B

5. Frequent changes in the directions of projects may occur due to:

a) inefficiencies of competitors in the market
b) inefficiencies in system level design
c) inefficiencies of the product planning process of the organization
d) no particular reason
Answer: C
6. Without careful product planning, organizations may face:
a) inadequate coverage of target markets with competitive products
b) poor distribution of resources
c) initiation and subsequent cancellation of ill-conceived projects
d) all of the above
Answer: D

7. Product development projects can be classified into _____ types.

a) two
b) three
c) four
d) five
Answer: C

8. New product platform projects are based on:

e) the extension of an existing product platform
f) a new, common platform
g) radically different production technology
h) addition or modification of some features of existing product
Answer: B

9. Derivatives of existing product platform projects are based on:

a) the extension of an existing product platform
b) a new common platform
c) radically different production technology
d) addition or modification of some features of existing product
Answer: A

10. Some projects may only involve adding or modifying some features of existing products.
These projects are classified as:
a) new product platforms
b) derivatives of existing product platforms
c) fundamentally new product platforms
d) incremental improvements to existing product platforms
Answer: D

11. Fundamentally new products are based on:

e) a major development effort to extend a family of existing products
 f) derivatives of existing product platforms
g) radically different products or production technology
h) addition or modification of some features of existing product
Answer: C

12. An Ipad is an example of:

e) a new product platform
f) a derivative of an existing product
g) an incremental improvement to an existing product
h) a fundamentally new product
Answer: A

13. To develop a product plan and project mission statements, a ____________ process is
suggested.
a) Five-step
b) Six-step
c) Seven-step
d) Eight-step
Answer: A

14. Xerox Lakes project is an example of:

a) a new product platform
b) an existing product platform
c) a radically different production technology
d) a derivatives of existing product platform
Answer: C

15. The outcome of a product planning process is:

e) a vision statement
f) a new product
g) a mission statement
h) a new opportunity
Answer: C

16. The first step of developing product planning process starts with:
e) identifying opportunities
f) allocating resources and plan timing
g) evaluating and prioritizing projects
 h) complete pre-project planning
Answer: A

17. The second step of product planning process is to:

a) allocating resources and plan timing
b) select most promising projects to pursue
c) complete pre-project planning
d) identifying opportunities
Answer: B

18. An organization’s competitive strategy includes:

e) technology and cost leaderships
f) customer focus
g) following market trends
h) all of the above
Answer: D

19. A product segment map shows:

e) products that are used in different market segments, as well as those of the
competitors
f) product performance over the years
g) product life cycles
h) perceptual map of products used by the company.
Answer: A

20. Which of the following is not a basis for segmenting a market within a company?
a) Personal
b) Workgroup
c) Department
d) Industry
Answer: D

21. A key product planning decision making tool in technology-intensive business is a:

a) U curve
b) S curve
c) Y curve
d) Straight line plot
Answer: B
22. A product-technology roadmap shows:
a) relative cost of development project
b) architecture of a family of products
c) product performance
d) life cycles of available technologies
Answer: D

23. Managers may use the _____________ to balance an organization’s portfolio of the
development projects.
a) S curve
b) Technology roadmap
c) Product-process change matrix mapping
d) Product segment map
Answer: C

24. Aggregate planning process helps to:

a) plan introduction of new products in the market
b) allocate resources efficiently by pursuing only those projects that can be completed
with budgeted resources
c) acquire and implement new technologies
d) none of the above
Answer: B

25. Aggregate resource planning can be achieved by:

a) estimating resource demands over time
b) tracking product performance over time
c) identifying products for each market segments
d) evaluating new product opportunities
Answer: A

26. Pipeline management system determines the timing and sequence of projects by
considering factors, such as:
a) Timing of product introductions
b) Technology and market readiness
c) Competition
d) all of the above
Answer: D
27. A Product Plan includes the ___________, approved by the planning process, and
_____________.
a) final project; sequenced in time
b) set of projects; the allocated budget
c) final project; the allocated budget
d) set of projects; sequenced in time
Answer: D

28. A mission statement includes:

a) Brief description of the product
b) Benefit proposition and key Business goals
c) Target market, assumptions and constraints
d) All of the above

Answer: D

29. For the Lakes Project, Xerox adopted “zero to landfill” policy to achieve:
a) environmental sustainability
b) excellence in service
c) manufacturing capability
d) profitability
Answer: A

30. The Product Planning process is immediately followed by the:

a) System-level design phase
b) Detail design phase
c) Concept development phase
d) Testing and refinement phase
Answer: C
 Multiple Choice Questions on Chapter 5: Identifying Customer Needs

61. In the context of product development, identifying customer need is primarily necessary
for:
i) hiring project managers for the company
j) deciding prices for the company products
k) selling company products to them
l) creating products which meet customer needs
Answer: D

62. Identifying customer need helps the project team to proceed to the next phase of
product development, that is _______________
i) selecting project concept
j) establishing target specification
k) testing product concept
l) setting final specification
Answer: B

63. According to the text book, a _________step method can be used to identify customer
needs.
a) three
b) four
c) five
d) six
Answer: C

64. A _____________ precedes the identifying customer needs phase.

a) mission statement
b) vision statement
c) budget statement
d) financial statement
Answer: A

65. The ____________needs are the ones that the customers expect to be met, whereas
____________needs would surprise the customers.
a) critical, latent
b) latent, critical
c) critical, verbal
d) hidden, critical
 Answer: A

66. The latent customer needs are the those which

a) customers are unaware off and not fulfilled by existing products.
b) customers are fully aware off and fulfilled by existing products.
c) product developers recognize as critical customer needs.
d) are widely recognized by the consumers and retailers.
Answer: A

67. Raw data can be gathered from consumers commonly by:

a) interviewing
b) facilitating focus groups
c) observing the products in use
d) all of the above
Answer: D

68. Establishing the relative importance of customer need can be done only after:
i) organizing data into a hierarchy of customer needs
j) collecting raw data from customers
k) reflecting on the results and the process of identifying customer need
l) none of the above
Answer: A

69. Focus groups are one of the methods for:

a) interpreting raw data collected from customers
b) organizing data into a hierarchy of customer needs
c) gathering raw data from customers
d) reflecting on the results and the process of identifying customer need
Answer: C

70. An Interview with a customer to gather data usually takes:

e) one to two hours
f) four to five hours
g) whole day
h) many days
Answer: A
71. Which of the following is a technique to gather data by watching customers to use the
product in their natural environment?
e) Interview
f) Focus groups
g) Observation
h) All of the above
Answer: C

72. For a single-market segment, the guideline for choosing the number of customers to
Interview is between _____________.
a) 10 and 50
b) 20 and 100
c) 30 and 100
d) 50 and 150
Answer: A

73. Customers can be contacted for gathering data by:

a) making phone call using online directories
b) sending e-mail using online directories
c) attending social networking events
d) all of the above
Answer: D

74. Which of the following is not an effective way to interact with customers to collect data?
a) disregard non-verbal information
b) to be alert for surprises and the expression of latent need
c) use visual stimuli and props
d) suppress preconceived hypotheses about the product technology
Answer: A

75. Interactions with customers during the data collection process are commonly
documented by:
a) audio and/or video recording
b) taking notes
c) taking photography
d) all of the above
Answer: D
76. The final task in gathering data from customers is:
a) preparing customer data template
b) interpreting need from customer statement
c) writing “thank-you” notes to the customers involved in the process
d) none of the above
Answer: C

77. One of the fundamental guidelines to interpret raw customer data is:
e) Expressing the need in terms of “What” the product has to do, not in terms of
“How” it might do it
f) Expressing the need as an attribute of the product
g) use of positive, not negative phrasing
h) Avoiding the words “must” and “should”
Answer: A

78. Customer data can be organized into a hierarchy based on their need(s), such as
e) primary
f) secondary
g) tertiary
h) all of the above
Answer: D

79. The step-by-step process to create a hierarchical list for customer needs include:
a) printing or writing each need statement on a separate card or self-stick note
b) grouping the cards according to the similarity of the needs they express
c) choosing a label for each group
d) all of the above
Answer: D

80. Use of customer survey to establish relative importance of customer needs is ______
than using consensus among experienced team members.
e) less reliable
f) more reliable
g) less costly
h) quicker
Answer: B
 Multiple Choice Questions on Chapter 6: Product Specifications

31. The product specifications are:

a) expressed in the “language of customers”
b) not required to be labeled with the appropriate units.
c) the set of individual specifications consisting of a metric and a value.
d) specified in a particular unit
Answer: C

32. For technology-intensive products specifications are established at least ____________.

a) once
b) twice
c) three times
d) four times
Answer: B

33. Before generating product concepts product development team need to establish a:
i) detailed development plan.
j) product testing plan.
k) target specification.
l) final specification.
Answer: C

34. According to the text book, establishing target specifications is a ________ step method.
a) four
b) five
c) six
d) seven
Answer: A

35. The list of specification metrics should include _____________ variables.

a) dependent
b) independent
c) dummy
d) moderating
Answer: A
36. The following is not one of the guidelines for constructing the list of metrics while
establishing target specifications:
a) Metrics should be complete
b) Metrics should be practical
c) The metrics should not include the popular criteria for comparison in the market
place
d) Some needs cannot be translated into quantifiable metrics
Answer: C

37. The need-metrics matrix is a unique way to represent:

i) a popular criteria for comparison
j) a competitive benchmarking information
k) customer needs and the corresponding specification metrics
l) customer needs and ideal value of the metrics
Answer: C

38. To establish relative importance of different attributes of a product a ________ analysis

can be used.
a) regression
b) conjoint
c) house-of-quality
d) correlation
Answer: B

39. One of the “rooms” in the House of Quality can be used to:
i) collect raw data on the product
j) collect competitive benchmarking information
k) collect data on different production technologies
l) set marginally acceptable value for the product
Answer: B

40. One of the ways to set ideal and marginally acceptable target values for the metrics is
to:
a) specify target value as a lower bound, or a upper bound of a metrics
b) specify target value as both lower and upper bound of a metrics
c) specify a particular value of a metrics, or a set of discrete values
d) all of the above
Answer: D
41. The first step of the setting final specification includes:
i) developing technical models of the product
j) developing a cost model of the product
k) refining the specification, making trade-offs where necessary
l) flow down the specifications as appropriate.
Answer: A

42. The final specification does not include the ______.

a) customer importance factors
b) value of the metrics
c) units of the metrics
d) description of the metrics
Answer: A

43. The final specification includes:

a) marginal value of the metrics
b) ideal value of the metrics
c) relative importance
d) metrics description and value
Answer: D

44. Before setting final specifications the product development team has to:
i) generate product concepts
j) select product concepts
k) test product concepts
l) all of the above
Answer: D

45. According to the text book, a ________ step process can be proposed for setting final
specifications.
a) three
b) four
c) Five
d) Six
Answer: C
46. Developing a technical model may include building ______________ approximations of
the product.
i) analytical
j) physical
k) analytical or physical
l) both analytical and physical
Answer: D

47. The inputs of a technical model are:

i) different design variables
j) different metrics
k) specifications in terms of “customer languages”
l) product components
Answer: A

48. The outputs of a technical model are:

a) different design variables
b) specifications in terms of “customer languages”
c) different metrics
d) product components
Answer: C

49. The Target cost is the ___________ cost at which the company and its distribution
partners can make adequate profits while still offering a ________ price for the
customers.
e) material, competitive
f) distribution, above average
g) marketing, below average
h) manufacturing, competitive
Answer: D
 Figure 6-1: An example of a competitive map

50. A competitive map, as shown in Figure 6-1 helps to:

e) define ideal and marginally acceptable values for the metrics
f) develop a technical model for the product
g) refine the specifications, making trade-off when necessary
h) refine the technical model of the product
Answer: C

51. Which of the following tools is not used to refine the final specifications?
a) technical models
b) cost models
c) competitive maps
d) setting importance factor to metrics
Answer: D

52. A conjoint analysis is a statistical technique which uses customer data to:
e) construct a model of customer preference
f) create competitive benchmarking information
g) find associations between product attributes
h) the perceptual map of the product attributes
Answer: A
53. The following graph represents the conjoint analysis of the calorie attribute of three
chicken noodle soups. Which of the following statement(s) best describes the result?

a) most customers preferred soups which has 80 calories

b) most customers preferred soups which has 100 calories
c) most customers preferred soups which has 140 calories
d) the customers were indifferent to the calorie value of the soups.
Answer: A

54. The following graph represents the conjoint analysis of the Versatility attribute of
personal computers (PCs). It shows that the customers were indifferent when the
number of tasks to be done by the PCs (Versatility) was:

a) between 4 and 8
b) between 8 and 12
c) between 12 and 16
d) all of the above
Answer: C
55. An useful way to develop a cost model is to create a bill of materials which provides:
a) average cost estimates
b) low cost estimates
c) high cost estimates
d) both low and high cost estimates
Answer: D

56. One of the challenge in the flow-down process for highly complex products such as
automobiles is to ensure that:
a) the subsystems specifications in fact reflect the overall product specifications
b) the subsystems specifications in fact does not reflect the overall product
specifications
c) the subsystems matches their own specifications, without complying to the overall
product specifications
d) none of the above
Answer: A

57. Which of the following is not usually considered while estimating target costing:
a) customers willing to pay the price of the product
b) cost for potential recall of the product
c) the manufacturing cost of the product
d) profit margins that are required for each stage in the distribution channel
Answer: D

58. If you bought a cell-phone from a retailer for $150 (retailer kept a profit margin of 20%),
and the cell-phone manufacturer wanted to make 10% profit, then the target cost for
that cell-phone is:
e) $98.00
f) $103.00
g) $108.00
h) $208.00
Answer: C
59. If you bought a cell-phone from through a distributor((distributor kept a profit margin of
30%), and a retailer for $150 (retailer kept a profit margin of 20%), and the cell-phone
manufacturer wanted to make 10% profit, then the target cost for that cell-phone is:
a) $64.60
b) $75.60
c) $101.60
d) $105.60
Answer: B

60. Which one of the following questions is not to be considered while reflecting on the
result and the process of the final step of creating product specifications?
a) Is the product a winner?
b) Were all of the important types of customers in the target market interacted with?
c) How much uncertainties are there in the technical and cost model?
d) Is the concept chosen by the team best suited to target market?
Answer: B
 Multiple Choice Questions on Chapter 7: Concept Generation

61. After establishing target specification, the product development team proceeds to the
_______________ phase.
m) identifying customer needs
n) concept generation
o) test product concept
p) production ramp-up
Answer: B

62. Concept generation is a ___________ process which can be done _________ in

comparison to the rest of the development process.
e) relatively expensive, relatively quickly
f) relatively inexpensive, relatively quickly
g) relatively inexpensive, relatively slowly
h) relatively expensive, externally
Answer: B

63. An effective development team usually generates:

a) only one excellent concept.
b) a few mediocre concepts to choose from.
c) a few excellent concepts to choose from.
d) hundreds of concepts of which very few will merit serious consideration.
Answer: D

64. Which of the following is not one of the common reasons for the development team to
be dysfunctional during concept generation?
a) Involvement of all the team members in the concept generation process.
b) Ineffective integration of promising partial solutions.
c) Failure to consider entire categories of solutions.
d) Consideration of only a few alternatives proposed by the most assertive members of
the team
Answer: A

65. The first step of the five-step concept generation process is:
a) rank the concepts
b) clarify the problem
c) select one or more concepts
d) collect competitive benchmark information
 Answer: B

66. The five steps of concept generation process does not include:
a) clarifying the problem
b) translating customer needs in product specifications
c) searching externally and internally for the solutions
d) reflecting on the solutions and the process
Answer: B

67. Decomposition of a complex problem into a simpler subproblems can be done by:
a) functional decomposition
b) using sequence of user actions
c) identifying key customer needs
d) all of the above
Answer: A

68. According to the textbook, focusing initial efforts on the critical subproblems is a part of:
a) clarifying the problem at step 1
b) search externally at step 2
c) search internally at step 3
d) explore systematically at step 4
Answer: A

69. Interviewing lead users is one of the options a development team uses for finding
solutions to the subproblems as a part of:
a) internal search
b) external search
c) explore systematically
d) clarify the problem
Answer: B

70. A development team may use the option of consulting experts for finding solutions to
the subproblems as a part of:
a) external search
b) internal search
c) systematic exploration
d) clarification of the problem
Answer: A
71. External search for finding solutions to the subproblems involves:
a) interviewing lead users and consulting experts
b) searching patents and published literatures
c) benchmarking related products
d) all of the above
Answer: D

72. External search for finding solutions to the subproblems does not involve:
a) interviewing lead users and consulting experts
b) searching patents and published literatures
c) individual and group sessions of team members
d) benchmarking related products
Answer: C

73. To find solutions to the subproblems, the development team may search patents and
published literatures as a part of:
a) internal search
b) external search
c) exploring systematically
d) clarifying the problem
Answer: B

74. The internal search process can be useful in ___________ session(s).

a) individual
b) group
c) individual and/or group
d) none of the above
Answer: C

75. Suspension of judgement is one the guidelines for the ______________ process for both
individual and group sessions.
a) internal search
b) external search
c) exploring systematically
d) reflect on the solutions and the process
Answer: A
76. Welcoming ideas that may seem infeasible is one the guidelines for the
______________ process for both individual and group sessions.
a) internal search
b) external search
c) exploring systematically
d) reflect on the solutions and the process
Answer: A

77. The guidelines for finding solutions by the internal search process does not include:
a) generating a lot of ideas
b) benchmarking related products
c) welcoming ideas that may seem infeasible
d) building sketch models
Answer: B

78. One of the ways to generate concepts by searching internally in Individual and group
sessions is:
a) by making analogies
b) interviewing lead users
c) searching patents
d) benchmarking related products
Answer: A

79. One of the ways to generate concepts by searching internally in Individual and group
sessions is:
a) interviewing consulting experts
b) using “wish and wonder” approach
c) searching published literatures
d) searching patents
Answer: B

80. One of the ways to generate concepts by searching internally in Individual and group
sessions is:
a) interviewing lead users
b) searching published literatures
c) using gallery method
d) benchmarking related products
Answer: C
81. Which of the following is not one of the helpful hints provided in the textbook for
generating solution concepts using internal search method?
a) Distorting or modifying ideas
b) Interviewing lead users
c) Using related and unrelated stimuli,
d) Using gallery method
Answer:

82. Which of the following is not one of the helpful hints provided in the textbook for
generating solution concepts using internal search method?
a) By setting quantitative goals
b) Using related and unrelated stimuli
c) By searching patents
d) Using gallery method
Answer: C

83. The key idea of the Russian problem solving methodology called TRIZ is to:
a) identify a contradiction that is implicit in a problem
b) merge individual and group efforts
c) use related or unrelated stimuli in order to generate solution concepts
d) make analogies
Answer: A

84. In order to explore systematically in the concept generation process, the development
team uses the:
a) gallery method
b) concept classification tree
c) unrelated stimuli
d) sketch model
Answer: B

85. The classification tree does not provide the following benefit:
a) pruning of less promising branch and refinement of the problem decomposition for
a particular branch
b) potential solution by combining fragments from each column
c) refinement of the problem decomposition for a particular branch
d) exposure of inappropriate emphasis on certain branch
Answer: B
 Figure 7-1: an example of a classification tree

86. Figure7- 1 shows different options considered by the development team for providing
energy sources for the handheld nailer. Which of the following options does not fall
under the electrical energy source for the nailer?
a) wall outlet
b) battery
c) explosive system
d) fuel cell
Answer: C

87. One of the methods used by the development team for exploring the combinations of
concept solution fragments for the handheld nailer project is:
a) building sketch models
b) concept combination table
c) concept classification tree
d) gallery method
Answer: B
 Figure 7-2: An example of concept combination table for handheld nailer

88. The Figure 7-2 shows that ______________ option is used to convert electrical energy
to translational energy, followed by ____________ option for accumulating energy, and
finally ________________ option to apply translational energy to nail.
a) rail gun; moving mass; multiple impact
b) solenoid; spring; single impact
c) rotary motor w/ transmission; spring; push nail
d) rotary motor w/ transmission, spring; multiple impact
Answer: D

89. As shown in Figure 7-2 , which of the following is not one of the concept solution
fragments for applying translational energy to nail:
a) single impact
b) rail gun
c) multiple impact
d) push nail
Answer: B

90. While reflecting on the solutions and the process of concept generation, the
development team takes a look at some critical questions such as:
a) Is the team developing confidence that the solution space has been fully explored?
b) Are there alternative diagrams and alternative ways to decompose the problem?
c) Have external sources been thoroughly pursued, and everyone’s ideas been
accepted and integrated in the process?
d) All of the above
Answer: D

Multiple Choice Questions on Chapter 8: Concept Selection

91. The concept selection phase comes right after the ___________________ phase.
q) identifying customer need
r) concept generation
s) concepts testing
t) establishing target specification
Answer: B

Figure 8-1: The concept development funnel

92. Figure 1. shows a typical concept development funnel. It signifies that the concept
selection is an iterative process which is refined and improved by concept ___________,
and _____________ in order to select a few promising concepts for further
development.
a) generation; testing
b) screening; scoring
c) development; testing
d) planning; generation
Answer: B

93. As per the textbook, the method(s) used by development teams to choose among
different concepts is/are:
a) Intuition
b) Multivoting
c) Prototype and test
d) All of the above
Answer: D

94. Choosing a concept on the basis of “Product Champion” method means that:
 a) an influential member of the development team chooses a concept based on
personal preference
b) customers or clients help to choose the concepts.
c) the development team rates each concept against pre-specified selection criteria
d) the team makes a choice based on the group opinion on the strengths and
weaknesses of each concept.
Answer: A

95. Choosing a concept on the basis of “Pros and cons” method means that the:
a) development team rates each concept against pre-specified selection criteria
b) team lists the strength and weaknesses of each concept and makes a choice based
upon group opinion
c) organization builds and tests prototypes of each concept, making a selection based
upon test data
d) selection of concepts are based on the test results of prototypes built by the
organizations.
Answer: B

96. Choosing a concept on the basis of “intuition” method means that the:
a) development team rates each concept against pre-specified selection criteria
b) team lists the strength and weaknesses of each concept and makes a choice based
upon group opinion
c) concept is chosen by its feel. Explicit criteria or trade-offs are not used.
d) Concept is selected based on the personal preference of an influential member of
the product development team
Answer: C

97. The potential benefit(s) for using a structured concept selection method include(s):
a) a customer-focused product and a competitive design
b) better product-process coordination and reduced time to product introduction
c) effective group decision making and documentation of the decision process
d) all of the above
Answer: D

98. One of the potential benefits for using a structured concept selection method includes:
a) a customer-focused product
b) ineffective group decision making
c) useless product-process coordination
 d) increased time to product introduction
Answer: A

99. The following is not one of the potential benefits of a structured methods of concept
selection:
a) A competitive design
b) Increased time to product introduction
c) Better product-process coordination
d) Documentation of the decision process
Answer: B

100. According to the text book, each part of the concept selection phase can be
divided into a ______ process.
a) Four- step
b) Five-step
c) Six-step
d) Seven-step
Answer: C

101. As per text book, the first step of concept selection phase is to:
a) rank the concepts
b) prepare the selection matrix
c) rate the concepts
d) select one or more concepts
Answer: B

102. As described in the text book, both of the concept __________ and
___________ stages follow a six-step process.
a) generation, selection
b) screening, scoring
c) generation, screening
d) selection, scoring
Answer: B

103. While preparing the concept – screening matrix, the development team
chooses:
a) a benchmark or reference concept which is either an industry standard, or a
straightforward concept which is very familiar to the team members
 b) a benchmark or reference concept which is neither an industry standard, nor familiar
to the team members
c) several concepts which team members are not familiar with.
d) none of the above
Answer: A

104. As described in the text book, the selection criteria chosen by the development
team for the reusable syringe example was:
a) ease of handling
b) readability of dose setting
c) dose meter accuracy
d) all of the above
Answer: D

105. One of the selection criteria chosen by the development team for the reusable
syringe example in the text book was ______________ of the syringe.
a) size
b) shape
c) ease of use
d) price
Answer: C

106. The selection criteria chosen by the development team for the reusable syringe
example in the text book did not include
a) price
b) dose meter accuracy
c) ease of use
d) ease of manufacture
Answer: A
Answer Question 17-20 based on Figure 2

Figure 8-2: The concept-screening matrix for syringe example

107. The “+” sign in the Figure 8-2 indicates that the relative scores of the concept is:
a) worse that the reference concept for that criteria
b) better than the reference concept for that criteria
c) same as the reference concept for that criteria
d) added to the reference concept score
Answer: B

108. The “-” sign in Figure 8-2 indicates that the relative scores of the concept is::
a) worse that the reference concept for that criteria
b) better than the reference concept for that criteria
c) same as the reference concept for that criteria
d) subtracted from the reference concept score
Answer: A

109. The “0” sign in Figure 8-2 indicates that the relative scores of the concept is: :
a) worse that the reference concept for that criteria
b) better than the reference concept for that criteria
c) same as the reference concept for that criteria
d) not acceptable for further consideration
Answer: C

110. According to information in Figure 8-2, the top three concept variants which
were chosen to be pursued for further investigations are:
 a) A, B, and D
b) A, B, and E
c) A, B and C
d) B, C, and G
Answer: B

Figure 8-3: The concept-scoring matrix for syringe example

111. In Figure 8-3, the concept scores are determined by:

a) sum of the weighted scores
b) weighted sum of the ratings
c) sum of the ratings
d) average weighted score
Answer: B

112. In Figure 8-3, the highest ranked concept which was decided to be most
promising concept was:
a) A, the Master cylinder option
b) DF, the Lever Stop option
c) E, the Swash Ring option
d) G+, the Dial Screw+ option
Answer: B

113. At the concept scoring phase, scale compression can be avoided by using
_______ reference point(s) for various selection criteria.
a) a single
 b) two
c) different
d) same
Answer: C

114. The goal of the concept selection is to:

a) develop the best concept by combining and refining the available concepts
b) select the best concept
c) develop an average concept
d) test the best concept
Answer: A

115. Upon reflecting on the results and the process of the concept scoring phase, a
development team may enquires:
a) If both the group and individual sessions were effective in generating many good
concepts.
b) How the concept selection method can be modified to improve team performance?
c) Whether the results make sense to everyone
d) If any important criteria is missing from the screening matrix
Answer: B

116. One of the few caveats on concept selection process is:

a) ranking the concepts correctly
b) where to include cost
c) preparing the selection matrix
d) selecting one or more concepts
Answer: B

117. The following is not one of the few caveats on concept selection process:
a) decomposition of concept quality
b) to facilitate improvement of concepts
c) selecting concept(s) that are most promising and would be likely to result in
successful product(s).
d) subjective criteria
Answer: C

118. The concept selection process is applied

a) only during concept development phase
 b) throughout the subsequent design and development process
c) during the planning process
d) production ramp-up phase
Answer: B

119. Concept selection is a group process that facilitates

a) the selection of a winning concept
b) helps build team consensus
c) creates a record of the decision-making process
d) all of the above
Answer: D

120. According to the text book, the concept selection process is followed by:
a) setting final specification
b) setting target specification
c) testing of product concepts
d) planning for manufacturing
Answer: C