Ch. 3 Flashcards
What is the product design & the 4 steps to follow?
- Determining the characteristics, form, function of the product
- Must be aligned to the firm’s competitive priorities
- Idea development
- Product screening
- Preliminary design
- Final design
Describe each step from product design.
Step 1 - Idea Development - Someone thinks of a need and a product/service design to satisfy it: sources are customers, marketing, engineering, competitors, benchmarking, reverse engineering.
Step 2 - Product Screening - Every business needs a formal/structured evaluation process: need to fit with facility and labor skills, size of market, contribution margin, break-even analysis, return on sales.
Step 3 – Preliminary Design and Testing - Technical specifications are developed, prototypes built, testing starts.
Step 4 – Final Design - based on test results, facility, equipment, material, and labour skills defined, suppliers identified.
What is the break-even analysis used for?
To compute the quantity of goods company needs to sell to cover its costs
What is the quality function in the product screening phase used for?
To translate customer requirements into appropriate technical requirements for each stage of product or service development and production.
What is concurrent engineering?
Concurrent engineering is a method by which several teams within an organization work simultaneously to develop new products and services. By engaging in multiple aspects of development concurrently, the amount of time involved in getting a new product to the market is decreased significantly
Process selection is based on five considerations, name them.
- Type of process: intermittent, repetitive, continuous.
- Degree of vertical integration
- Flexibility of resources
- Mix between capital & human resources
- Degree of customer contact
What are the types of manufacturing processes?
*Hint: there are four
- Job Shop (small scale)
- Batch (moderate volume)
- Repetitive (high volume of standardize goods & assembly lines)
- Continuous
What are the manufacturing processes based on operations?
Intermittent Operations
1. Project process (custom jobs)
2. Batch process
(Bakery, education classes, printing shop)
Repetitive Operations
- Line process (assembly line)
- Continuous process (oil, water plant)
What is a “focused factory” and “mass customization”?
Focused factory: specialized in high quantity, standardized product
Mass custom.: high quantity and high variety efficiently
ex: Subway
Process design includes two tools, what are they?
- Process flow analysis (helps to identify elements like potential problems)
- Process flowchart (separate steps in the process)
In the design considerations, there are 4 manufacturing strategies. What are they?
- Make-to-stock (MTS) - Dominoes pizza, its most popular kind already prep
- Assemble-to-order (ATO) - Harley Davidson
- Make-to-order (MTO) - Dominoes pizza
- Engineered-to-order (ETO) - airplane
How do you design a service in the service industry?
- Identify the type of service
- pure service (hotel)
- Quasi-manufacturing (bank)
- mixed service (warehouses) - Service package
- physical good
- sensorial benefits (human senses)
- psychological experience (relaxed, comfort, happy) - Differing design
- substitute tech for ppl (atm machines)
- get customer involved
- high customer attention (Ritz hotel)
