Module 3 Flashcards
What is product descision?
the selection, definition, and design of products
Introductory Phase
Product Lifecycle
Because products in the introductory phase are still being “fine-tuned” for the market, as are their production techniques, they may warrant unusual expenditures for (1) research, (2) product development, (3) process modification and enhancement, and (4) supplier development. For example, when the iPhone was first introduced, the features desired by the public were still being determined. At the same time, operations managers were still groping for the best manufacturing techniques.
Growth Phase
Product Lifecycle
In the growth phase, product design has begun to stabilize, and effective forecasting of capacity requirements is necessary. Adding capacity or enhancing existing capacity to accommodate the increase in product demand may be necessary.
Maturity Phase
Product Lifecycle
By the time a product is mature, competitors are established. So high-volume, innovative production may be appropriate. Improved cost control, reduction in options, and a paring down of the product line may be effective or necessary for profitability and market share.
Decline Phase
Product Lifecycle
Management may need to be ruthless with those products whose life cycle is at an end. Dying products are typically poor products in which to invest resources and managerial talent. Unless dying products make some unique contribution to the firm’s reputation or its product line or can be sold with an unusually high contribution, their production should be terminated.
Pareta Principle
when applied to product mix
Resources are to be invested in the critical few and not the trivial many
Product-by-value analysis
A list of products in descending order of their individual dollar contribution to the firm, as well as the total dollar contribution of the product
Quality function deployment
a process for determining customer requirements and translating the into the attributes that each funcitional area can understand and act on
House of Quality
a part of the quality function deployement process that utilizes a planning matrix to relate customer wants to how the firm is going to meet those wants
Steps to build house of quality
- Identify customer wants.
- Identify how the good/service will satisfy customer wants.
- Relate customer wants to product hows.
- Identify relationships between the firm’s hows.
- Develop importance ratings
- Evaluate competing products.
- Determine the desirable technical attributes, your performance, and the competitor’s performance against these attributes
Concurrent Engineering
Simulaneous performance of the various stages of product development
Manufacturability and value engineering benefits
Reduced complexity of the product.
Reduction of environmental impact.
Additional standardization of components.
Improvement of functional aspects of the product.
Improved job design and job safety.
Improved maintainability (serviceability) of the product.
Robust design.
Value Analysis
a review of successful product that takes place during the production process
Time Based Competition
Competition based on time; rapidly developing products and moving them to market
Engineering Drawing
a drawing that shows the dimensions, tolerances, materials, and finishes of a component
Bill of Material
a list of the hierarchy of components, their description, and the quantity of each required to make one unit of a prouct
Group Technology
a product and component coding system that specifies the size, shape, and type of processing; allows products to be grouped
Assembly Drawing
shows a blown up view of the product
Assembly Chart
a graphic means of identifying how components flow into subassemblies and final products
Route Sheet
A listing of the operations necessary to produce a component with the material specified in the bill of material
Work Order
Instruction to make a given quantity of a particular item
Engineering change notice
a correction or modification of and engineering drawing or bill of material
Configuration Management
a system by which product’s planned and changing components are accurately identified
