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