1. An example of continuous innovations would include:

a. adding variety to Kellogg's existing cereal line.

b. adding new menu items in a restaurant.

c. using a slightly different mix of components for a laptop computer.

d. repositioning an existing product for a new market.

e. All of the above.

2. During the stage of the product life cycle, the production or service delivery processes are standardized, unit costs become lower, sales volume reaches its maximum potential, and there is increased competition, often leading to lower prices for the customer.

a. introduction

b. growth

c. decline

d. maturity

e. phase out

3. During the stage of the product life cycle, a product's sales start decreasing, and the price of products falls because there are many competitors and firms start divesting resources to other emerging products.

a. introduction

b. growth

c. decline

d. maturity

e. phase out

4. Quality Function Deployment (QFD) uses the following four matrices EXCEPT:

a. house of quality which links the voice of the customer to the product design attributes.

b. design matrix links the design attributes to the product components or features.

c. operating matrix links the product components to process decisions.

d. cost matrix links the operating costs to production control decisions.

e. control matrix links the operating processes to production planning and control decisions.