POM Chapter 7 VALUE ENGINEERING AND VALUE ANALYSYS

Which of the following components of the value chain is designed to provide information to potential customers and make products and services accessible to customers?

• Research and development (R&D) and design activities

• Suppliers and production-related activities

• Marketing and distribution activities

• Customer service activities

Which of the following is a non-value-added activity?

• Clear and truthful advertising

• Designs that meet engineering specifications but have limited customer input

• Competent and timely after-sales customer help

• Use of suppliers that provide high-quality inputs

Which of the following is a basic procedure related to activity-based costing (ABC)?

• Identifying activities

• Creating an associated activity cost pool

• Identifying an activity measure

• All of the above

At which stage of a product's life cycle is target cost determined?

• Planning and marketing analysis

• Product development

• Production design

• Concept design

Costs that are included as the cost of resources consumed in activities that prevent defects from occurring are called which type of quality costs?

• Prevention costs

• Appraisal costs

• Internal failure costs

• Unreliable equipment

Which of the following are techniques commonly used by organizations to manage costs over their value chain?

• Activity-based management

• The target costing process

• Just-in-time procedures

• All of the above

which of the following are benefits of the value engineering ?

• Cost reduction

• Robust Design

• Improvement in functions of the product

• Design for quality

The cost reduction technique in comparison to the worth of a product is known as

• Reverse engineering

• Value engineering

• Material engineering

• Quality engineering

Value analysis examines the

• Design of every component

• Method of manufacturing

• Material used

• All of the above

Value analysis is normally applied to

• New products

• Old products

• Future products

• Both (A) and (B)