Ch 3: Design of Products & Services

Question 1

new product opportunities (6)

Answer 1

• understanding the customer
• economic change
  -sociological/ demographic change
• technological change
• political/legal change
• market practice/suppliers/standards (ex. Netflix DVDs to streaming service)

Question 2

6 phases of Generic Development

Answer 2

phase 0: planning
1: concept development
2: system-level design
3: design detail
4: testing and refinement
5: production ramp-up

Question 3

phase 0: planning

Answer 3

market research/define market segments

Question 4

phase 1: concept development

Answer 4

begin to develop a product/conceptualize what a product may be

collect customer needs/identify lead users and competition

Question 5

phase 2: system-level design

Answer 5

blueprinting the process

develop plan, set target sales price point

(ex. process of getting into UGA and graduating – it can be boiled down to a step-by-step process)

Question 6

phase 3: design detail

Answer 6

adding detail to every stage of the system-level design – aka marketing plan

Question 7

phase 4: testing and refinement

Answer 7

trail-and-error/refining the product

promotion/launch materials, facilitate field testing

Question 8

phase 5: production ramp-up

Answer 8

produce the produce

*place early production with key customers

Question 9

user interface (UI)

Answer 9

company perspective- want you want the customer to do, not what the customer may actually do
(ex. LAPtop)

Question 10

user experience (UX)

Answer 10

what the customer actually does
the full experience of using the product
(ex. hooking laptop up to docking station)

Question 11

quality function deployment

Answer 11

• cross-functional teams
  (marketing, engineering) engage in market research
• converts customer expectations into clear objectives
• customer requirements forms House of Quality

Question 12

House of Quality (9)

Answer 12

1. customer wishes
2. relative importance
3. user opinion
4. strategy
5. product specifications
6. quality house
7. correlation
8. relevance
9. target values

Question 13

target output of the planning phase (phase 0)

Answer 13

mission statement

Question 14

what criteria involves designing a product so that it can be produced at low cost

Answer 14

value (produced at low cost while maintaining features designed by customer)

Question 15

industrial design

Answer 15

designing for aesthetics/for the user

Question 16

value analysis/value engineering

Answer 16

analysis w/ purpose of simplifying products/processes by achieving equivalent or better performance at lower cost

Question 17

for product design of consumer products what are 2 significant activities/things to know

Answer 17

• understanding customer preferences
• market testing new products

Question 18

ecodesign

Answer 18

incorporation of environmental consideration in product design

Question 19

the complete specification of the geometry, materials, and tolerances of all the unique parts in the product and the identification of all the standard parts to be purchased from suppliers

Answer 19

detail design

Question 20

3 general factors of designing a new product

Answer 20

• similarity to current services: new service should fit into current service experience
• similarity to current processes: operational cohesiveness
• financial justification

Question 21

economic analysis is useful in what 2 circumstances

Answer 21

• go/no-go milestones
• operational design and development decisions

Question 22

ecodesign adopts its approach on what 3 levels

Answer 22

• complete life cycle of product is considered
• product is considered a system
• multicriteria approach is considered

Question 23

most basic categories for cash flow (5)

Answer 23

development cost
ramp-up cost
marketing/support cost
production cost
sales revenue

Question 24

sensitivity analysis

Answer 24

uses financial model to answer “what if” questions by calculating change in NPV corresponding to a change in factors

Question 25

time-to-market measure

Answer 25

there are two aspects of this:
- frequency of new product introductions
- time from initial concept to market introduction

Question 26

productivity measure example

Answer 26

ex. # of engineering hours, cost of materials, etc

Question 27

design quality

Answer 27

product’s performance features vs customer expectations; inherent value in the market

Question 27

conformance quality

Answer 27

reliability of product in use; degree to which product design specifications are met

Question 28

quality measures (3)

Answer 28

conformance quality
design quality
defects per million opportunities

Question 29

defects per million opportunities

Answer 29

ability of a factory to produce the product; describes variability of a process

Question 30

technology-push products

Answer 30

firm begins w/ NEW technology and looks for a market – rare
(ex. GoreTex rainwear; Burton AK collection?)

Question 31

platform products

Answer 31

built around a preexisting technological subsystem – a lot of what we use today (ex. cellphones)

Question 32

process-intensive products

Answer 32

production process has an impact on the properties of product (ex. snack foods, breakfast cereals – processed things)

Question 33

customized products

Answer 33

new products are slight variations of existing configurations (ex. motors, batteries, containers)

Question 34

high-risk products

Answer 34

technical or market uncertainties create high risk of failures
(ex. medicine)

Question 35

quick-build products

Answer 35

once you have a product you are now consistently releasing, it becomes quick-build

rapid modeling and prototyping enables many design-build-test cycles

(ex. iphones – the design typically remains the same with variations as new versions are released)

Question 36

complex systems

Answer 36

systems must be decomposed into several subsystems and components

Question 37

generic/market-pull products

Answer 37

team begins w/ a market opportunity and selects tech. to meet customer needs
(ex. sporting goods – helmet, gloves..)

Question 38

product life cycle: introduction

Answer 38

research/prod development
supplier development

Question 39

product life cycle: growth

Answer 39

product design stabilizes
effective forecasting/capacity nececssary

Question 40

product life cycle: maturity

Answer 40

competitors est.
high volume, innovative production may be needed

Question 41

product life cycle: decline

Answer 41

unless product makes a special contribution, must plan to terminate offering

Question 42

product development: historical departments vs team approach

Answer 42

• historically we’ve used distinct departments where duties/responsibilities are defined. It is hard to foster forward-thinking
• today, we have a team approach where the org is cross-functional w/ concurrent engineering

Question 43

over the wall approach

Answer 43

the idea where a design is given and required to manufacture without considering costs – we have solved this through concurrent engineering

Question 44

concurrent engineering

Answer 44

simultaneous project development w/ open communication among all team members for the purpose of:
- reducing time to market
- decreasing cost
- improving quality/reliability

Question 45

concurrent engineering can be dangerous if not well-organized due to…

Answer 45

time – time is costly