Detailed Answer
(d) The requirement is to identify the process that involves
a systematic evaluation of the trade-offs between product
functionality and product cost while still satisfying customer
needs. Answer (d) is correct because this process is defined as
value engineering. Answer (a) is incorrect because activity-based
management is a system that strives for excellence through cost
reduction, process improvement, and productivity gains. Answer
(b) is incorrect because the Theory of Constraints refers to
methods to maximize operating income when faced with some
bottleneck operations. Answer (c) is incorrect because total
quality management involves the application of quality principles
to all company activities.