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Product - is anything that can be offered to market for attention, acquisition, use or consumption that might satisfy a wand or need. Service - any activity or benefits that one party can offer to another that is essentially intangible and does not result in the ownership of anything.
External
Customers Suppliers Competitors reverse engineering dismantling and inspecting of a competitors product to discover product improvements
Reverse engineering dismantling and inspecting of a competitors product to discover product improvements
Example: Taurus model of Ford Motor Company
Ethical
Releasing products with defects
Environmental
Dont design something that can harm the environment.
Saturation Maturity
Deman d
Decline Growth
Incubation
Time
Advantages of Standardization
Fewer parts to deal with in inventory & manufacturing Reduced training costs and time More routine purchasing, handling, and inspection procedures
Disadvantages of Standardization
Designs may be frozen with too many imperfections remaining. High cost of design changes increases resistance to improvements.
results
in
less
Mass Customization
Mass customization:
A strategy of producing standardized goods or services, but incorporating some degree degree of customization Delayed differentiation Modular design
Delayed Differentiation
is a postponement tactic; producing but not quite completing a product or service 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. It allows:
easier diagnosis and remedy of failures
Reliability
Reliability - the ability of a product, part, or system to perform its intended function under a prescribed set of conditions Failure - Situation in which a product, part, or system does not perform as intended Normal operating conditions - The set of conditions under which an items reliability is specified
Improving Reliability
Component design Production/assembly techniques
Testing
Redundancy/backup
Robust Design
Design that results in products or services that can function over a broad range of conditions
Concurrent Engineering
The bringing together of engineering design and manufacturing personnel early in the design phase.
New Product
Mfg
Design
Computer-Aided Design
Computer-Aided Design (CAD) is product design using computer graphics.
increases productivity of designers, 3 to 10 times creates a database for manufacturing information on product specifications provides possibility of engineering and cost analysis on proposed designs
Production Requirements
Manufacturability is the ease of fabrication and/or assembly which is important for cost, productivity and quality. Forecast of future demand can be useful, supplying information on the timing and volume of demand, and information on demands for new products and services
Recycling
Recycling: recovering materials for future use Recycling reasons
Cost savings Environment concerns Environment regulations
Differences Between Product and Service Design Tangible intangible Services created and delivered at the same time Services cannot be inventoried Services highly visible to customers Services have low barrier to entry Location important to service
Customized Clothing Dept. Store Purchase Telephone Purchase Internet Purchase None
Moderate Low
None
Low
Moderate
High
Correlation matrix
Design requirements
Customer requirements
Relationship matrix
Competitive assessment
Water resistance
Engineering Characteristics
Competitive evaluation
7 5 3 3 2
Reduce energy level to 7.5 ft/lb
X
X AB
AB
XAB A XB
X A
10
6
Maintain current level
6
Reduce force to 9 lb.
9
Reduce energy to 7.5 ft/lb.
2
Maintain current level
3
Maintain current level
Relationships:
Strong = 9 Medium = 3 Small = 1
5 4 3 2 1
B A X
BA X
B A X
B X A
BXA
BA X
Customer Satisfaction
Customer Needs
Operations Strategy Shorten time-to-market Package products and services Increase emphasis on component commonality Use multiple-use platforms Consider tactics for mass customization Look for continual improvement