Opm

• Objective of product design


  To develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage
• Why design or redesign products and services

  • Market opportunities and threats
• Factors that give rise to market opportunities and threats

  • Economic (e.g., low demand, excessive warranty claims, the need to reduce costs)
  • Social and demographic (e.g., aging baby boomers, population shifts)
  • Political, liability, or legal (e.g., government changes, safety issues, new regulations)
  • Competitive (e.g., new or changed products or services, new advertising/promotions)
  • Cost or availability (e.g., of raw materials, components, labor)
  • Technological (e.g., in product components, processes)
• Key questions in product and service design (from a buyer's standpoint)

  What is the cost and what is the quality or performance?
• Key questions in product and service design (from the organization's standpoint)

  • Is there demand for it? What is the potential size of the market, and what is the expected demand profile (will demand be long term or short term, will it grow slowly or quickly)?
  • Can we do it? Do we have the necessary knowledge, skills, equipment, capacity, and supply chain capability? For products, this is known as manufacturability; for services, this is known as serviceability. Also, is outsourcing an option?
  • What level of quality is appropriate? What do customers expect? What level of quality do competitors provide for similar items? How would it fit with our current offerings?
  • Does it make sense from an economic standpoint? What are the potential liability issues, ethical considerations, sustainability issues, costs, and profits? For non-profits, is the cost within budget?
• Product Life Cycle - Introductory Phase


  • Fine tuning may warrant unusual expenses for research, product development, process modification and enhancement, supplier development
• Product Life Cycle - Growth Phase


  • Product design begins to stabilize, effective forecasting of capacity becomes necessary, adding or enhancing capacity may be necessary

  
• Product Life Cycle - Maturity Phase


  • Competitors now established, high volume, innovative production may be needed, improved cost control, reduction in options, paring down of product line

  
• Product Life Cycle - Decline Phase


  • Unless product makes a special contribution to the organization, must plan to terminate offering

  
• Standardization


  The extent to which a product, service, or process lacks variety
• Standardized products


  Made in large quantities of identical items
• Standardized service


  Every customer or item processed receives essentially the same service
• Standardized processes


  Deliver standardized service or produce standardized goods
• Mass customization


  A strategy of producing standardized goods or services, but incorporating some degree of customization in the final product or service
• Delayed differentiation


  • A postponement tactic, the process of producing, but not quite completing, a product or service, postponing completion until customer preferences or specifications are known
• Modular design


  • A form of standardization in which component parts are subdivided into modules that are easily replaced or interchanged
• Reliability


  A measure of the ability of a product, a part, a service, or an entire system to perform its intended function under a prescribed set of conditions
• Failure


  A situation in which an item does not perform as intended
• Robust design


  Design that results in products or services that can function over a broad range of conditions
• Phases in Product Development

  1. Idea generation

  2. Feasibility analysis

  3. Product specifications

  4. Process specifications
• Concurrent engineering


  • Bringing design and manufacturing engineering people together early in the design phase to simultaneously develop the product and the processes for creating the product - cross-functional teams
• Computer-aided design (CAD)


  Uses computer graphics for product design
• Quality Function Deployment (QFD)


  A process for determining customer requirements and translating them into attributes that each functional area can understand and act upon
• Steps in constructing a house of quality

  1. Identify customer wants

  2. Identify how the good/service will satisfy customer wants

  3. Relate customer wants to product hows

  4. Identify relationships between the firm's hows

  5. Develop importance ratings

  6. Evaluate competing products

  7. Compare performance to desirable technical attributes
• Service design


  The development or refinement of the overall service package, including the physical resources needed, accompanying goods, explicit services, and implicit services
• Steps in service blueprinting


  1. Establish boundaries for the service and decide on the level of detail needed

  2. Identify and determine the sequence of customer and service actions and interactions

  3. Develop time estimates for each phase of the process, as well as time variability

  4. Identify potential failure points and develop a plan to prevent or minimize them, as well as a plan to respond to service errors