CHAP 3 OM Flashcards
begins with product and service design. Decisions made in this area impacts organizations overall success.
Customer Satisfaction
3 Key Considerations in Process Design
Flexibility, Production Time, Cost
involves deciding on the best methods for production based on the product design, volume, and variety.
Process Selection
Ability of the production system to adapt to changes.
Flexibility
The total expenses involved in producing goods or services.
Cost
The speed at which products or services can be developed and delivered.
Production Time
focus on the arrangement of equipment, workspaces, and resources to maximize efficiency and reduce waste.
Layout decisions
are influenced by decisions made in product and service design.
Layout decisions
Focuses on human element on production system
Work Design
are crucial assets to an organization, according to manager
employees or workers
The various activities and responsibilities of product and service design include the following:
Translate customer wants and needs, into product and service requirements. (marketing, operations)
Refine existing product and services. (marketing)
Develop new product and/or services. (marketing, operations)
Formulate Quality Goods. (marketing, operations)
Formulate cost targets. (accounting, finance)
Construct and test prototypes. (operations, marketing, engineering)
Document Specifications.
The Main Forces that initiate design or redesign are
Market opportunities and threats
The factors that give rise to market opportunities and threats can be one or more changes in:
ECONOMIC – low demand; excessive warranty claim; the need to reduce cost
SOCIAL AND DEMOGRAPHIC- aging baby boomers; population shifts
POLITICAL, LIABILITY OR LEGAL- government changes; safety issues; new regulations
COMPETITIVE- new or changed products or services; new advertising/promotion
COST OR AVAILABILITY- of raw materials; components; labour
TECHNOLOGICAL- in product component processes
The main focus of product and service design is
customer satisfaction
need to understand what the customer wants and design with that in mind.
Designers
is the primary source of THIS information (customer wants)
Marketing
The high on list priorities of product and service design, to stand out
Quality
Government that regulates organizations:
Bureau of Food and Drug
Occupational health and safety adminitrations
DENR
Organizations generally want designers to adhere to guidelines such as the following:
Produce designs that are consistent with the goals of organizations.
Give customers the value they expect.
Make health and safety a primary concern.
Consider potential to harm the environment.
7 Other Issues in Product and Service Design
Life cycle, Standardization, Reliability, Robust Design, The Degree of Newness, Cultural Differences, Global Product Design
a strategy of producing standardized goods or services, but incorporating some degree of customization in the final product or services.
mass customization
is the stages through which a product or its category bypass.
Life cycles
the process of producing but not quite completing.
delayed differentiation
modules represent groupings of component parts into subassemblies.
modular design
is a measure of the ability of a product, a part, a service, or an entire system to perform its intended function under a prescribed set of conditions
Reliability
are development could be a more sustainable solution; as a part of Globalization
Global Product design
also called the Taguchi Method, greatly improves engineering productivity. By consciously considering the noise factors (environmental variation during the product’s usage, manufacturing variation, and component deterioration) and the cost of failure in the field the Robust Design method helps ensure customer satisfaction.
Robust design
products design in companies that operate globally also must take into account any cultural differences of different countries or regions related to the product
Cultural differences
products or service design change can range from the modification of an existing product or service to an entirely new product or service
The Degree of Newness
9 PHASES IN PRODUCT DESIGN AND DEVELOPMENT
Idea Generator, Feasilibility Analysis, Product Specifications, Process specifications, Prototype development, Design review, Market Test, Production Introduction, Follow-up evaluation
product development begin with ideas.
Idea Generator
entail market analysis (demand), economic analysis (development cost and production cost, profit potential), and technical analysis(capacity requirements and availability, and the skills needed), can answer the question “Does it fit with the mission?”
Feasibility analysis
making any necessary changes, or abandoning.
Design review
involves detailed descriptions of what is needed to meet (or exceed) customer wants, and requires collaboration between legal, marketing and operations.
Product specifications
units are made to see if there are any problems with the product or process specifications.
Prototype development
alternatives must be weighed in terms of cost, availability of resources, profit potential, and quality.
Process specifications
determining if changes are needed, and refining forecasts.
Follow-up evaluation
used to determine the extent of consumer acceptance.
Market test
promoting the product
Production introduction
refers to an act, something that is done for the customer.
Service
the combination of goods and services provided to a customer.
Product bundle
the physical resources needed to perform the service, the accompanying goods, and the explicit and implicit services needed
Service package
the facilities, processes; and skills needed to provide a service.
Service delivery system
must contend with issues that may be insignificant or non-existent for managers in a production setting.
Service operations manager
8 DIFFERENCES BETWEEN SERVICE DESIGN AND PRODUCT DESIGN
Products are generally tangible; services are generally intangible
Oftentimes services can be created and at the same time delivered. (haircut; carwash)
Services cannot be inventoried.
Services are highly visible to the customers and must be designed with that in mind. (spa)
Begins with the choice of a service strategy, determines and focused on the service, target market
Service Design
a method used in a service design to describe and analyse a proposed service.
Service blue printing
Characteristics of well-designed service system
being consistent with the organization mission
Being user friendly.
Being robust of variability is a factor.
Being easy to sustain
Being cost- effective.
service design presents some SPECIAL CHALLENGES that are LESS LIKELY to be ENCOUNTERED IN PRODUCT DESIGN, in part, because service design also involves design of the delivery system.
Challenges of service design
9 GUIDELINES FOR SUCCESFUL SERVICE DESIGN
Define the service package in detail
Consider the image that the service package will present
Define quality for both tangible and intangibles
Established procedures to handle both predictable and unpredictable events.
refers to the PLAN an organization develops to MANAGE ITS OPERATIONS efficiently and effectively to achieve its overall business objectives
Operation strategy
is a futile area for achieving competitive satisfaction.
Product and service design
6 Potential sources of such benefits include the following: (OPERATION STRATEGY)
Using multiple-use platforms.
Continually monitoring products and service for small improvements.
Shorten the time it takes to get new or redesign goods and services to the markets
