Major factors in design strategy Cost Quality Time-to-market Customer satisfaction Competitive advantageProduct and Service Design
Objectives of Product and ServiceDesign Main focus Customer satisfaction Understand what the customer wants Secondary focus Function of product/service Cost/profit Quality Appearance Ease of production/assembly Ease of maintenance/service
Designing For OperationsBased on the capabilities of the organization indesigning goods and services.Failure to take this into account can:•Reduce productivity•Reduce quality•Increase costs
Typical Phases of Product DesignDevelopment Concept Development Product Planning Product/Process Engineering Pilot Production/Ramp-Up
Contract ManufacturersCompanies that specialize in manufacturing products forother companies have become successful.•Many companies outsource the product design function.• Product design differs significantly depending on theindustry.E.g. Consumer products understandingconsumer preferencesPharmaceuticals- Extensive clinical tests
Core competencyA company’s core competency is the one thingthat it can do better than its competitors.Product design/Cost/Quality/Dedication of its employees.Characteristics of core competency.•Provides potential access to wide variety of markets•Increases perceived customer benefits•Hard for competitors to imitate.