Production & operation management


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Production & operation management

  1. 1. BBA 5thAfter mid-term Production & operations Management OBJECTIVES OF PRODUCT/SERVICE DESIGN1. To satisfy the needs and wants of customers. It means try to design such product/service whichsatisfies the needs and wants of the customers.2. To capture market share means that how many customers are using your product/service.3. To maintain market share means that try to retain your customers.4. To compete with your competitors means that try to compete with your competitors by price,quality etc. STEPS IN DESIGN PROCESS 1. Motivation: there must be a driving force which compels customer to buy your product/service. There must be some attraction/difference in your product/service to attract customer. 2. Customer: try to design your product/service according to the needs and wants of customers 3. R&D: try to make different product/service with existing product/service. It means that research among the customers and then apply those changes to the existing product/service which customer wants. 4. Manufacturability: try to make those products which are possible to manufacture. If you say that I will make such car which will fly in the air but this is impossible in Pakistan .so we should avoid these sorts of things which are not possible in real. 5. Forecast demand: try to predict demand means first we should forecast demand for the product that how much people will buy this product and how much cost will occur on this product/service. we made estimates in this portion. 6. General consideration: (PLS) try to study your product life cycle and then on the basis of your product life cycle make decision. Like if our product/service is on birth stage so should introduce oriented features to move toward growth stage. CRITICAL ISSUES IN PRODUCT/SERVICE DESIGN 1. Standardization: that process in which we design same products for everyone or we can say that we design same nature products for all customers like cellular services which are same for every customer. So standardization is an issue for a company because some people don’t like to purchase standardize products. E,g some customer have small feet and some have larger ,some customers have small height while some have larger height so it is difficult for a company to produce separate product for every customer.Prepared by; SAEED ULLAH JAN. SEC “B” Roll# 186 Page 1
  2. 2. BBA 5th 2. Mass customization: (Big customization) try to design your product according to the needs and wants of customers. It is opposite of standardization here we design products for the customers as they wants. Mass means big so it is also an issue for a company to design different products in large amount. 3. Product/service reliability: reliability means if we say that this product/service will work for 2 years and it works so we can say that this product/service is reliable. So try to design reliable products/services. It is also an issue for a company to design reliable products/services. 4. Product life cycle: >Introduction phase: In this stage the demand of product will be low and price of the product will be high. It is the most risky stage because the company’s future is dependent on this stage. >Growth stage: In this stage you will introduce some new technology to attract the customers. The demand of your product will start. Cost reduced and prices become low due to increase in demand and also due to production in this stage. Attraction of customers also increases in this stage. >Maturity stage: here you will add some new oriented features to the product. Profit will be high in this stage and no chance for your product to decline. Here demand will be on peak point. >Post maturity stage: here your competitors arise. So your customers start decreasing because competitors attract the customers due to new technology or we can say by strong competition. >Decline stage: In this stage the cost increases and your product start declining. Market share will be decrease and your cost will increase. After this stage death stage starts so there your revenue will be less and then you have to close your product.Prepared by; SAEED ULLAH JAN. SEC “B” Roll# 186 Page 2
  3. 3. BBA 5th DESIGN STRATEGIES 1. Design for manufacturing (DFM): here we plan such strategies that can be possible means we should plan those sorts of strategies which we can manufacture. Try to design those which we can make. Here first we should check the manufacturability. 2. Design for assembly (DFA): sometimes we remove some features from our product and make a new product. Here the price will become low due to the removal of features so cost will decrease. E,g SOS is not working here in Pakistan so they removed this feature from some cell phones due to which price falls and they present a new product with the removal of this feature. 3. Design for disassembly (DFD): this is the reciprocal of assembly. Here we add some features to the product and manufacture a new product. With the addition of these features the prices will be high. E,g Toyota vvt-I (now dual vvt-i). Cell phones were earlier black & white now they have colored display. 4. Design for recycling (DFR): here product is old but we add some features to that product. Here we don’t make a new product infact we recycle the old product. Shape, model etc is same only we add some features. When our product get old and we repair it in new form E,g camera, 5. Design for remanufacturing (DFR): here we make totally new product but add some old features or add some different features. E,g calculator and computer PHASES IN PRODUCT DEVELOPMENT PROCESS Steps involved in product development process 1. Idea generation: the first process is idea generation that either to produce a new product or modify the existing product. Ideas come from two sources. a. Internal source: these are ideas are generally taken from within the organization like employees, managers b. External source: these ideas are taken from market or customers. 2. Feasibility analysis: (cost-benefit-analysis) here we measure the cost that occurs on the implementation of ideas. In this stage the organization forecast the cost. Here we see the advantages and disadvantages. 3. Product specification: here we check/analyze the features of product. We get information about the product. 4. Process specification: here we specify the entire process. How will we run our process and how to make a new product? 5. Prototype development: here we make a sample of that product to check whether it works or not. After the success of sample then we will start manufacturing on huge scale. Here we can remove the faults from our product by receiving feedback. 6. Design review: here we review/check our prototype/sample in order to check that is it works/fine. Is it that product which we thought? We observe the prototype/sample to check the faults. 7. Market test: here we test the market means we sell out in limited scale to market then on the basis of this stage we will move towards the large scale production.Prepared by; SAEED ULLAH JAN. SEC “B” Roll# 186 Page 3
  4. 4. BBA 5th 8. Introduction to market: (production introduction) (commercialization). If the market test comes positive then we start commercialization in huge scale. Means if customers like our product then definitely we will start commercialization (large scale production). 9. Feedback: (follow up evaluation). Here you will get different feedbacks from your customers so you will make decision on the basis of majority means that you try to change the product by receiving same feedbacks (majority). SERVICE DESIGN: Difference between product (goods) and service designsPRODUCT: A set of attributes assembled in identifiable form in order to satisfy the need and wants ofyour customer. Product is a broad term but normally we use it for goods. Services without product: this is not possible because services are attached with the tangibles andthis the evidence. e,g if we purchased a mobile card so we use the service but what will be theevidence? Card will be the evidence in tangible form.Products (goods) without services: this is also not possible because goods are also attached with theservices. e,g if we make a product but without services how will customer use, suppose we make a fanfirst services are involved here during making of this item but later on due to services it comes tocustomer.Prepared by; SAEED ULLAH JAN. SEC “B” Roll# 186 Page 4
  5. 5. BBA 5th1. Tangibility: product/goods are tangible means they have physical shape while services are intangible.2. Homogeneity: products may be same but in services there must be some difference. Homogeneity lies in products only.3. Perish ability: products can be inventoried (stock) means products can be stored while we can’t store services.4. Ownership: products can be owned by someone while services can’t be owned, it can just be used.5. Services are produced and consumed at the same time while products are produced once then consumed later on somewhere else.Prepared by; SAEED ULLAH JAN. SEC “B” Roll# 186 Page 5