Rather Than Relying on Design Engineers Alone to Design New

question 89

Essay

Rather than relying on design engineers alone to design new products, the CEO of Quokka Resources wants to form teams of people from several departments to develop more creative products. These teams will consist of design engineers, manufacturing engineers, marketing staff and purchasing staff. Quokka's CEO believes that these teams will develop more creative products than design engineers did when working alone. Identify three potential constraints that might interfere with the CEO's expected benefits of team-based decision making and creativity.

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Definitions:

Logistics Department

The division within a company responsible for the management of the movement of goods and services from suppliers to customers.

Operating Divisions

Distinct segments within a company, each responsible for certain operations or business units.

Fixed Costs

Outlays that do not fluctuate with production or sales figures, such as office rent, salary payments, and insurance policies.

Return On Investment (ROI)

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the net profit from the investment by its original cost.