3. *Companies choose various ways to design
their products and the type of services they
provide. Which include: standardization,
mass customization, delayed
differentiation, modular design, and
robust design. Deciding which method to
use is very important along with deciding
the company's target market. Deciding the
right method, establishes good productivity
and efficient way of operations.
Product Design
4. *Major factors in design strategy
*Cost
*Quality
*Time-to-market (Timing)
*Customer satisfaction
*Competitive advantage
Product Design
Product design – or redesign – should be
closely tied to an organization’s strategy
5. • Increased emphasis on or attention to:
– Customer satisfaction
– Reducing time to introduce new product
– Reducing time to produce product
– The organization’s capabilities to produce or
deliver the item
– Environmental concerns
– Designing products that are “user friendly”
– Designing products that use less material
Trends in Product Design
6. Other Important Trends
Companies have switched from ignoring
operations strategy to recognizing the
importance of incorporating strategies into their
business decisions.
Companies have reduced the number of
workers and have made their companies
operate more efficiently by placing an emphasis
on cost control and productivity improvement.
Companies use revenue management to
manipulate prices and influence demand to
maximize revenues.
Trends in Product Design
7. *Translate customer wants and needs
into product requirements
*Refine existing products
*Develop new products
*Formulate quality goals
*Formulate cost targets
*Construct and test prototypes
*Document specifications
11. *Produce designs that are consistent
with the goals of the company
*Give customers the value they expect
*Make health and safety a primary
concern
*Consider potential harm to the
environment
12. *Standardization
*Extent to which there is an absence of
variety in a product
*The degree of Standardization?
*Standardized products are immediately
available to customers
Calculators & Cellphones
13. *Fewer parts to deal with in inventory
and manufacturing
*Design costs are generally lower
*Reduced training costs and time
*More routine purchasing, handling, and
inspection procedures
14. *Orders fillable from inventory
*Opportunities for long production runs
and automation
*Need for fewer parts justifies increased
expenditures on perfecting designs and
improving quality control procedures.
15. *Designs may be frozen with too
many imperfections remaining.
*High cost of design changes
increases resistance to
improvements.
*Decreased variety results in less
consumer appeal.
16. •Mass customization:
*A strategy of producing
standardized goods, but
incorporating some degree of
customization
*Delayed differentiation
*Modular design
17. Modular design is 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
* easier repair and replacement
* simplification of manufacturing and
assembly
18. *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 item’s
reliability is specified
22. The Four stages are:
1. Introduction: During the first stage,
the product is introduced into the
market. Proper research and
forecasting should be done to ensure
the product/service is adequate for a
specific market and for a specific time.
It is crucial to have a proper amount of
supply that can meet the expected
demand for the product/service.
23. The Four stages are:
2. Growth: The second stage involves
the increase in demand for the
product/service. Reputation for the
product grows and an accurate forecast
of demand is needed to determine the
length of time the product/service will
remain in the market. Enhancements
and improvements are common in this
stage..
24. The Four stages are:
3. Maturity/Saturation: This third stage
deals with the product reaching a steady
demand. Few or no improvements or
product changes are needed at this
stage. Forecasting should provide an
estimate of how long it will be before the
market dies down, causing the product
to die out..
25. The Four stages are:
4. Decline: The last stage involves
choosing to discontinue the
product/service, replacing the product
with a new product, or finding new uses
for the product.
26. Robust Design: Design that
results in products or services
that can function over a broad
range of conditions
Robust Design
27. 1.Modification of an existing
product
2.Expansion of an existing product
3.Clone of a competitor’s product
4.New product
28. 1. Idea generation
2. Feasibility analysis
3. Product specifications
4. Process specifications
5. Prototype development
6. Design review
7. Market test
8. Product introduction
9. Follow-up evaluation
30. Reverse engineering is the
dismantling and inspecting
of a competitor’s product to
discover product
improvements.
31. *Organized efforts to increase scientific
knowledge or product innovation & may
involve:
* Basic Research advances knowledge about a
subject without near-term expectations of
commercial applications.
* Applied Research achieves commercial
applications.
* Development converts results of applied
research into commercial applications.
32. *Manufacturability is the ease of
fabrication and/or assembly which is
important for:
*Cost
*Productivity
*Quality
33. Concurrent engineering
is the bringing together
of engineering design and
manufacturing personnel
early in the design phase.
34. *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
35. *Recycling: recovering materials for
future use
*Recycling reasons
*Cost savings
*Environment concerns
*Environment regulations
Recycling
39. *the combination of goods and
services provided to a customer
Product Bundle
40. *the physical resources needed to
perform a service (ex.
Accompanying goods, implicit and
explicit services)
Service Package
Service Plan Choose Service Strategy
Determine Target Market
Implementation
41. *oftentime created and at the same
time delivered (ex. Haircut,
massage)
*highly visible to customers
Services
42. Service blue-printing
a method used in a service design to describe
and analyze a proposed service
Characteristics of a well-designed service
system
Consistent with organization’s mission-vision
User friendly
Sustainability
Cost-effective
Phases
43. Challenges of service design
less likely to be encountered
compared with product design
Phases
44. *Define the service package in detail
*Focus on the operation from a customer
perspective
*Consider the image that the service package
will present
*Involvement of Managers
Guidelines for a successful service
design
45. *Recruitment, training and rewards are
consistent with service expectations
*Procedures are established to handle
predictable and unpredictable events
*Monitor, maintain, improve
Guidelines for a successful service
design
