1
ANSWERS TO CHAPTER 3 QUESTIONS
ANSWER 3.1
Forming a concurrent team is the most suitable strategy for
this assignment. The steps to take are: (1) name selected staff
ANSWER 3.2
She should take the following steps: (1) benchmark externally
to define the current level of in-house quality performance and
pertinent metrics to assess quality performance; (2) set up a
quality improvement team (quality cycle), comprised of
ANSWER 3.3
The preemptive introduction of the first batch of
sophisticated products to a technologically un-advanced country
signifies a major competitive advantage for the company in that
marketplace. Only fools would give up that marketing entry and
associated expansion opportunity and hand it over to the
competition. Do not make the same mistake as the training manager
who suffers from a chronic lack of perspective. The company
should do the following:
A. Reject the suggestion of the training manager and continue to
honor the sales contact.
2
ANSWER 3.4
A change in business conditions is a valid reason for
manpower reduction. Yes, the engineer should be discharged with
severance pay. The company may want to retain the service of an
ANSWER 3.5
The company president should take the following steps:
A. Authorize market research to verify the existence of an
enlarged customer base for the company’s products.
B. Conduct an external benchmarking program to validate the
company’s marketing practice in order to be comparable to the
best in industry.
E. Create a New Products Division whose primary objectives are
to make, market and sell new products and provide service to the
enlarged target customer base.
F. Authorize resources and delegate the responsibility and
authority of program implementation to the New Products Division.
3
ANSWER 3.6
Acquire a small company to shorten the time to market and
thus more readily preserve its position in the marketplace.
Integrate its technology into the company, modify production line
ANSWER 3.7
The preferred members on this presidential task force should
be marketing/sales, design engineering, product development,
production, finance, logistics, and service. The specific
The task force should first get organized. Available data
are then to be reviewed. The task force should brainstorm
possible causes for the declining sales:
A. Was the product price too high in comparison to competition
due to high product cost?
B. Were the sales people ineffective due to poor training, low
morale, meager compensation, and/or inadequate equipment/
facilities?
E. Were the customers dissatisfied with the services (e.g.,
problem-solving, spare parts, order processing, etc.) offered?
F. Others.
4
ANSWER 3.8
Meeting customer’s requirements must always be the primary
goal of every company, even if it means a loss of profitability.
Re-organize the project to utilize external resources (e.g.,
drafting, model making, testing, design of specific parts,
quality control, etc.) for supplementing in-house capabilities in
ANSWER 3.9
Since the director’s need to know details may be brought
about by the need of his boss, the VP, it is not a good idea for
Sally to question Mark’s wisdom of raising so many detailed
questions. Read all progress reports, make notes at staff
ANSWER 3.10
As illustrated in Table 3.11, there are two additional
ladders besides the managerial ladder for engineers to consider:
5
3.11 Typical Career Ladder in Industry
Director Fellow
Director
Vice President