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PRODUCTS AND DESIGN
 Major factors in design strategy
 Cost
 Quality
 Time-to-market
 Customer satisfaction
 Competitive advantage
Product and Service Design
Objectives of Product and Service
Design
 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 Operations
Based on the capabilities of the organization in
designing goods and services.
Failure to take this into account can:
•Reduce productivity
•Reduce quality
•Increase costs
Typical Phases of Product Design
Development
 Concept Development
 Product Planning
 Product/Process Engineering
 Pilot Production/Ramp-Up
Contract Manufacturers
Companies that specialize in manufacturing products for
other companies have become successful.
•Many companies outsource the product design function.
• Product design differs significantly depending on the
industry.
E.g. Consumer products understanding
consumer preferences
Pharmaceuticals- Extensive clinical tests
Core competency
A company’s core competency is the one thing
that 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.

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Product and Design

  • 2.  Major factors in design strategy  Cost  Quality  Time-to-market  Customer satisfaction  Competitive advantage Product and Service Design
  • 3.
  • 4.
  • 5. Objectives of Product and Service Design  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
  • 6. Designing For Operations Based on the capabilities of the organization in designing goods and services. Failure to take this into account can: •Reduce productivity •Reduce quality •Increase costs
  • 7.
  • 8. Typical Phases of Product Design Development  Concept Development  Product Planning  Product/Process Engineering  Pilot Production/Ramp-Up
  • 9. Contract Manufacturers Companies that specialize in manufacturing products for other companies have become successful. •Many companies outsource the product design function. • Product design differs significantly depending on the industry. E.g. Consumer products understanding consumer preferences Pharmaceuticals- Extensive clinical tests
  • 10. Core competency A company’s core competency is the one thing that 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.