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NEW QUESTION # 23
A functional team is best suited for which type of project?

• A. A project that demands total commitment from team members
• B. Product development that is totally new to the company
• C. Highly complex, requiring strong cross-disciplinary collaboration
• D. Relatively simple product line extensions or improvements

Answer: D

Explanation:
A functional team is best suited for relatively simple product line extensions or improvements. Functional teams consist of members from the same department or function who bring specialized skills and knowledge to the project. These teams are effective for projects that do not require extensive cross-disciplinary collaboration and can be managed within a single functional area. For highly complex projects or those requiring innovation across multiple disciplines, a cross-functional or project-specific team would be more appropriate. Reference: "Project Management: A Systems Approach to Planning, Scheduling, and Controlling" by Harold Kerzner explains the suitability of different types of teams for various project complexities.

NEW QUESTION # 24
What type of assesment helps a team achieve increased communication during the work of the project?

• A. Functional resource assesment as used in creating the project budget
• B. Project portfolio management assesment
• C. Work style assesment, like DiSC
• D. Personality assesment, like the Myers-Briggs Type Indicator

Answer: D

Explanation:
Personality assessments, such as the Myers-Briggs Type Indicator (MBTI), help team members understand each other's communication styles, strengths, and preferences. This understanding fosters better communication and collaboration within the team by allowing members to appreciate and leverage diverse perspectives and working styles. Reference: Myers, I.B., & Myers, P.B. (1995). Gifts Differing:
Understanding Personality Type. Davies-Black Publishing.

NEW QUESTION # 25
You are CEO of company A. Your company has grown organically through lots of acquisitions and you have a wide range of products that have been launched into a variety of markets, and your product teams have ideas to develop new products. You need to opimiize the investment across all of these existing and new products. What would you do?

• A. Give each team the same amount of money and ask them to proceed with development
• B. Tell the reams no to develop any new products
• C. Approve proects that cost less than $500K to develop
• D. Establish a portfolio management process

Answer: D

Explanation:
As the CEO of a company with a wide range of products and new product ideas, the best course of action is to establish a portfolio management process. This process involves evaluating, selecting, and prioritizing projects based on their potential returns, strategic alignment, risk, and resource requirements. By implementing a portfolio management process, you can ensure that investments are optimized across existing and new products, focusing resources on the most promising and strategically significant projects. This approach helps balance risk and reward, ensuring sustainable growth and efficient use of resources (Cooper, Edgett, & Kleinschmidt, 2001; PMI, 2013).

NEW QUESTION # 26
Which of the following is the product life cycle stage when the company must make tough decisions about what to do with the product as sales decrease?

• A. Maturity
• B. Decline
• C. Introduction
• D. Growth

Answer: B

Explanation:
The product life cycle stage when a company must make tough decisions about what to do with the product as sales decrease is the "Decline" stage. During this stage, sales and profits diminish due to various factors such as market saturation, technological advancements, or changes in consumer preferences. Companies must decide whether to discontinue the product, rejuvenate it through innovation or repositioning, or continue supporting it to serve a niche market.
References:
Kotler, P., & Keller, K. L. (2012). Marketing Management. Pearson.
Levitt, T. (1965). Exploit the Product Life Cycle. Harvard Business Review.

NEW QUESTION # 27
QFD (Quality Functional Deployment) is all of the following except:

• A. A structured method employing matrix analysis for linking what the market requires to how it will be accomplished in the development effort
• B. QFD limits the chance of omitting important design characteristics or interactions across design characteristics
• C. A tool designed to allow engineering and marketing departments to work independently while accomplishing a common goal of discovering how customer needs translate into product specifications
• D. This method is most valuable during the stage of development when a cross-functional team agrees on how customer needs translate into to product specifications and features that will address the needs

Answer: C

Explanation:
Quality Function Deployment (QFD) is a method that ensures that customer needs are integrated into product design. It is designed to foster collaboration between different functional areas, particularly engineering and marketing, and to systematically translate customer requirements into product specifications. Here are the truths and the exception regarding QFD:
A. QFD is not designed to allow engineering and marketing departments to work independently. Instead, it aims to integrate their efforts to ensure the product meets customer needs.
B. QFD limits the chance of omitting important design characteristics or interactions across design characteristics by providing a structured approach to identifying and addressing all relevant aspects of product design.
C. QFD employs matrix analysis, typically in the form of the House of Quality, to link customer requirements (the "whats") to how these requirements will be addressed in the product design (the "hows").
D. QFD is most valuable during the development stage when a cross-functional team agrees on translating customer needs into product specifications and features.
Thus, the correct answer is A: A tool designed to allow engineering and marketing departments to work independently while accomplishing a common goal of discovering how customer needs translate into product specifications.
References:
Akao, Y. (1990). Quality Function Deployment: Integrating Customer Requirements into Product Design. Productivity Press.
Hauser, J. R., & Clausing, D. (1988). The House of Quality. Harvard Business Review.

NEW QUESTION # 28
In the BCG Growh-State matrix cash-cow is defined as a product with high market share but low growth potential. What strategy should company adopt for this type of product?

• A. Carry out a detailed analysis of the product, the competitors, and the market, leading to clear strategy for the future of the product
• B. Take as much profit from the product as possible
• C. Sell the product while it is still making money
• D. Make significaant investment in product improvements

Answer: B

Explanation:
For a product classified as a "cash cow" in the BCG Growth-Share Matrix, the recommended strategy is to
"take as much profit from the product as possible." Cash cows generate more cash than is needed to maintain their market share due to their high market share and low growth potential. Companies should invest minimal resources in these products while maximizing cash flow to support other areas of the business.

NEW QUESTION # 29
Mission statements helps organizations to ____.

• A. Focus people and resources
• B. Plan to product launch
• C. Initiate ideas
• D. Borrow capital at a low rate

Answer: A

Explanation:
Mission statements help organizations to focus their people and resources by clearly defining the purpose and primary objectives of the organization. They provide direction and a sense of purpose, helping to align efforts across different departments and teams towards common goals. A well-crafted mission statement communicates the organization's core values and objectives, which guides decision-making and prioritizes resource allocation. This concept is widely accepted in management literature, where the mission statement is seen as a critical tool for strategic alignment and organizational coherence (Drucker, 1974; Campbell & Yeung, 1991).

NEW QUESTION # 30
Lean manufacturing is aimed at the elimination of waste in every area of production below except

• A. Customer relations
• B. Product design
• C. Packaging design
• D. Supplier networks and factory management

Answer: C

Explanation:
Lean manufacturing is a systematic method aimed at minimizing waste without sacrificing productivity. It focuses on optimizing efficiency and eliminating waste in various areas of production. Here are the areas it typically targets:
A. Customer relations: Improving interactions and satisfaction with customers. B. Supplier networks and factory management: Enhancing efficiency in the supply chain and within factory operations. C. Packaging design: While packaging can be optimized, it is not a primary focus area of lean manufacturing. D. Product design: Streamlining design processes to reduce waste and improve functionality and manufacturability.
Therefore, the correct answer is C: Packaging design.
References:
Womack, J. P., & Jones, D. T. (2003). Lean Thinking: Banish Waste and Create Wealth in Your Corporation. Free Press.
Liker, J. K. (2004). The Toyota Way: 14 Management Principles from the World's Greatest Manufacturer. McGraw-Hill.

NEW QUESTION # 31
Who is responsible for the strategic results of a new product development process in an organization?

• A. Chief executive
• B. Process owner
• C. Scrum manager
• D. Stage-Gate manager

Answer: B

Explanation:
The process owner is responsible for the strategic results of a new product development process in an organization. The process owner oversees the entire product development process, ensuring it aligns with the company's strategic goals, manages resources, and monitors progress to achieve desired outcomes. This role is crucial for maintaining accountability and driving continuous improvement in the product development process.
References:
Wheelwright, S. C., & Clark, K. B. (1992). "Revolutionizing Product Development: Quantum Leaps in Speed, Efficiency, and Quality". Free Press.
Cooper, R. G., Edgett, S. J., & Kleinschmidt, E. J. (2004). "Benchmarking Best NPD Practices".
Research-Technology Management.

NEW QUESTION # 32
In sustainable development to abbreviation D4E stands for...

• A. Development for the Environment
• B. Design for Extinction
• C. Design for Evolution
• D. Design for the Environment

Answer: D

Explanation:
In sustainable development, the abbreviation D4E stands for "Design for the Environment." This concept involves designing products with consideration for their environmental impact throughout their lifecycle, including material selection, manufacturing processes, usage, and disposal. The goal is to minimize negative environmental effects and promote sustainability.
References:
Graedel, T. E., & Allenby, B. R. (2003). Industrial Ecology. Pearson.
Sherwin, C. (2000). Design and Sustainability. Journal of Sustainable Product Design, 1(1), 3-11.

NEW QUESTION # 33
The following are included in what document type?
1. What needs to be done to do the work
2. Communicates essentials to all players, leading to integrated actions, providing targets and direction for outcomes
3. Defines the length of the process or cycle times
4. Defines requirements in terms that can be measured

• A. None of the above
• B. Product Innovation Charter (PIC)
• C. Product Protocol
• D. Product Concept Statement

Answer: C

Explanation:
The document type being described is a Product Protocol. This document is essential in new product development as it outlines the critical elements needed to ensure successful project execution and alignment among all stakeholders. Here's how the points align with a Product Protocol:
What needs to be done to do the work: The Product Protocol provides detailed descriptions of the tasks and responsibilities required to complete the project.
Communicates essentials to all players, leading to integrated actions, providing targets and direction for outcomes: It serves as a communication tool to ensure all team members and stakeholders are aligned and working towards the same goals.
Defines the length of the process or cycle times: It includes timelines and milestones that outline the duration and phases of the development process.
Defines requirements in terms that can be measured: The Product Protocol specifies measurable criteria for success, including performance, cost, quality, and other critical metrics.
Therefore, the correct answer is B: Product Protocol.
References:
Crawford, C. M., & Di Benedetto, C. A. (2014). New Products Management. McGraw-Hill Education.
PDMA (Product Development and Management Association). (2017). The PDMA Handbook of Innovation and New Product Development.

NEW QUESTION # 34
The purpose of the Business Case Stage is a detailed investigation of the project and involves primary research on the market and technology.

• A. False
• B. True

Answer: B

Explanation:
The Business Case Stage is indeed a detailed investigation phase in the new product development process. It involves extensive research and analysis to justify the project's viability and align it with strategic objectives.
This stage includes primary research on both the market and technology to ensure that the proposed product can meet market needs and is technically feasible.
Thus, the correct answer is A: True.
References:
Cooper, R. G. (2011). Winning at New Products: Creating Value Through Innovation. Basic Books.
Kahn, K. B., Castellion, G., & Griffin, A. (2005). The PDMA Handbook of New Product Development. John Wiley & Sons.

NEW QUESTION # 35
According to the PDMA Measurement Success Project, the most appropriate set of measures for assessing project-level success depends on the firm's project strategy.

• A. False
• B. True

Answer: B

Explanation:
According to the PDMA (Product Development and Management Association) Measurement Success Project, the most appropriate set of measures for assessing project-level success indeed depends on the firm's project strategy. Different strategies may prioritize different aspects of performance, such as time-to-market, innovation, cost control, or customer satisfaction. Therefore, aligning the success metrics with the strategic objectives of the project ensures that the evaluation is relevant and meaningful. References: Griffin, A.
(1997). PDMA Research on New Product Development Practices: Updating Trends and Benchmarking Best Practices. Journal of Product Innovation Management.

NEW QUESTION # 36
Your competitors have launch a new product. As you elevate your response to compete with them, you realize thaht the technology employed in your current product has reached its limits and cannot be improved to increase the performance to effectively compete and the only option is to consider superseding with newer and advanced technology. What stage on the technology S-Curve are you on?

• A. Maturity stage
• B. Embryonic stage
• C. Growth stage
• D. Laggard

Answer: A

Explanation:
The maturity stage on the technology S-Curve is characterized by the technology reaching its performance limits and experiencing diminishing returns on further investments. When a company's current technology can no longer be improved to compete effectively and the only option is to adopt newer and advanced technology, it indicates that the technology has matured. At this stage, incremental improvements are insufficient, and a technological leap is necessary to maintain competitiveness.

NEW QUESTION # 37
The sing of a mature product development process within an organization is the ability of the orgnization to:

• A. Include and integrate stakeholders and senior management throughout the development process
• B. Continously fill the pipeline with new products
• C. Use iterative and risk-limiting steps to facilitate effective and efficient new product development
• D. Develop its own best practices from the various models and experiences

Answer: C

Explanation:
The sign of a mature product development process within an organization is the ability to "use iterative and risk-limiting steps to facilitate effective and efficient new product development". This involves employing methodologies such as Agile or Lean, which focus on iterative cycles, constant feedback, and incremental improvements to reduce risk and enhance flexibility. Mature processes emphasize continuous learning and adaptation, enabling the organization to manage uncertainties and complexities in product development more effectively.

NEW QUESTION # 38
The product design specifications must use a set of metrics to ensure they are met during the desing work.
Suppose you are designing a new automobile. Which of the following is an acceeptable product design metric:

• A. There are a wide range of colors and fabrics available for the interior
• B. The car accelerates from 0 to 60 miles per hour in less than 6 seconds
• C. The seats are comfortable
• D. The towting capacity is adequate for most people to use a boat trailer

Answer: B

Explanation:
Product design specifications must be measurable to ensure they can be met and verified during the design and testing phases. A metric such as "The car accelerates from 0 to 60 miles per hour in less than 6 seconds" is specific, quantifiable, and testable, making it an appropriate design specification. Reference: Pugh, S.
(1991). Total Design: Integrated Methods for Successful Product Engineering. Addison-Wesley.

NEW QUESTION # 39
A software company is developing an update to a specific app for online shopping. The company has extensive experience with its target through previous product launches. Even if there are minor faults with the app, these can be quickly remedied after launch without significant negative customer response. Speed to market is critical. The company is seeking customer reaction to the improved features and functionality of the new app. What market reasarch approach would yuo recommend?

• A. Focus group
• B. In-house alpha testing followed by beta testing
• C. Factor analysis
• D. Test marketing

Answer: B

Explanation:
Given the scenario where the company has extensive experience with its target market and needs to quickly gauge customer reactions to the updated app features and functionality, the most suitable approach is in-house alpha testing followed by beta testing. This approach allows for:
Alpha testing: Internal testing to identify and fix major issues before exposing the product to real users.
Beta testing: Involves a select group of actual users who provide feedback on the new features and functionality in real-world conditions. Any minor faults identified can be quickly remedied, aligning with the company's capability to address issues rapidly post-launch.
This method balances the need for speed to market with obtaining valuable customer feedback. Reference:
"The Art of Software Testing" by Glenford Myers explains the stages and benefits of alpha and beta testing.

NEW QUESTION # 40
Which of the following are good sources for new product concepts?

• A. External sources from customers, including lead users
• B. All of the above are good sources for new product concepts
• C. External sources from educational institutions, inventors and other companies focused on pure research
• D. Internal sources from R&D, Marketing and/or operations

Answer: B

Explanation:
New product concepts can originate from a variety of sources, both internal and external. Internal sources include R&D, marketing, and operations teams who can leverage their knowledge and experience within the company to generate new ideas. External sources encompass educational institutions, inventors, and other companies engaged in pure research, providing a wealth of innovative ideas and technological advancements.
Customers, particularly lead users, are also valuable sources of new product concepts as they often provide insights into unmet needs and emerging trends.
References:
Ulrich, K. T., & Eppinger, S. D. (2015). Product Design and Development. McGraw-Hill Education.
Von Hippel, E. (1986). Lead Users: A Source of Novel Product Concepts. Management Science.

NEW QUESTION # 41
SCAMPER is an ideation technique that uses word stimuli including:

• A. Substitute, combine, modify
• B. Adapt, put to another use
• C. All of the above
• D. Reverse, eliminate

Answer: C

Explanation:
SCAMPER is a widely used ideation technique that involves using a series of prompts to stimulate creative thinking and problem-solving. The acronym SCAMPER stands for:
Substitute
Combine
Adapt
Modify (also Magnify, Minify)
Put to another use
Eliminate
Reverse (also Rearrange)
These prompts encourage looking at a problem or product from different perspectives to generate new ideas and solutions. Each of the components listed (Adapt, Put to another use; Substitute, Combine, Modify; Reverse, Eliminate) is a part of the SCAMPER technique, making "All of the above" the correct answer.
References to ideation techniques in product development literature, such as "Creative Problem Solving: An Introduction" by Donald J. Treffinger et al., provide detailed explanations of SCAMPER's use and effectiveness.

NEW QUESTION # 42
The process desgned to build a product through a series of fixedlength iterations givining teams a framework for shipping software on a regular cadence is called:

• A. Lean
• B. Scrum
• C. Agile
• D. Sprint

Answer: B

Explanation:
The process designed to build a product through a series of fixed-length iterations, giving teams a framework for shipping software on a regular cadence, is called Scrum. Scrum is a subset of Agile methodologies and focuses on delivering incremental updates to a product through iterative cycles called sprints, typically lasting
2-4 weeks. Each sprint includes planning, execution, and review phases, allowing teams to continuously improve and adapt based on feedback. This iterative approach promotes frequent delivery of functional software, enhancing adaptability and responsiveness to change (Schwaber & Sutherland, 2017; Rubin, 2012).

NEW QUESTION # 43
Which type of team has the following characteristic: Each functional organization designates a liaison person to "represent" it on a project coordination committee?

• A. Tiger
• B. Functional
• C. Heavyweight
• D. Lightweight

Answer: D

Explanation:
In the context of team structures for new product development, the characteristic described in the question fits a Lightweight team. Here are the key features of different team types and how they relate to the given characteristic:
A. Functional: Teams are organized strictly by functional areas, with limited coordination across functions.
B. Lightweight: In this structure, each functional organization designates a liaison person to "represent" it on a project coordination committee. This setup facilitates communication and coordination between different functional areas without removing team members from their primary functional roles.
C. Tiger: This involves forming a dedicated, cross-functional team taken out of their functional areas to work full-time on the project, providing high focus and autonomy.
D. Heavyweight: A stronger matrix where the project manager has significant authority, but team members are still functionally aligned and involved.
Thus, the correct answer is B: Lightweight.
References:
Clark, K. B., & Wheelwright, S. C. (1992). Organizing and Leading "Heavyweight" Development Teams. California Management Review.
Wheelwright, S. C., & Clark, K. B. (1992). Revolutionizing Product Development: Quantum Leaps in Speed, Efficiency, and Quality. Free Press.

NEW QUESTION # 44
According to a study by Robert Cooper and IRI (Industrial Research Institute) of 205 member companies, the most popular tools for managing the NPD portfolio were which of the following?

• A. Business strategy and bubble diagrams
• B. Financial method and checklists
• C. Bubble diagrams and checklists
• D. Financial method and Business strategy

Answer: D

Explanation:
According to the study by Robert Cooper and the Industrial Research Institute (IRI), the most popular tools for managing the New Product Development (NPD) portfolio among 205 member companies are the Financial method and Business strategy. The Financial method involves evaluating projects based on their expected financial returns, such as net present value (NPV) or internal rate of return (IRR). Business strategy involves aligning NPD projects with the company's strategic goals and priorities to ensure that new products support the overall business direction. References: Cooper, R. G., Edgett, S. J., & Kleinschmidt, E. J. (2001).
Portfolio Management for New Products: Picking the Winners. Basic Books.

NEW QUESTION # 45
Information gathered by other researchers for other purposes, the fit between research method and research purpose, unknown sample size, varying levels of quality, and dated information are all pitfalls of which type(s) of market research?

• A. Secondary market research
• B. Survey research
• C. All the above
• D. Voice of the customer

Answer: A

Explanation:
Secondary market research involves gathering existing data that has been collected by other researchers for different purposes. The pitfalls of secondary market research include:
Information gathered by other researchers for other purposes: The data might not be specific to your needs.
Fit between research method and research purpose: The methods used might not align with your research goals.
Unknown sample size: The size and demographics of the sample used in the original research might not be clear.
Varying levels of quality: The quality of data can vary widely, affecting reliability.
Dated information: The data might be outdated and not reflective of current market conditions.
These challenges can limit the applicability and usefulness of secondary market research for specific research questions. Reference: "Marketing Research: An Applied Orientation" by Naresh K. Malhotra discusses these pitfalls in detail.

NEW QUESTION # 46
What type of team structure should be chosen when the challenge is to break entirely from the past, enter a new market, or do something radically different technically or commercially?

• A. Functional
• B. Tiger
• C. Lightweight
• D. Heavyweight

Answer: B

NEW QUESTION # 47
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