PART 3 Flashcards
Multinational companies must take into account cultural differences related to the product design.
Cultural Differences
Uses combined efforts of a team of designers working in different countries.
Virtual teams
Designs and manufactures a product based on its own specifications and sells to another company for branding and distribution.
Original Equipment Manufacturer (OEM)
Designs and manufactures a product according to purchaser’s specifications.
Original Design Manufacturer (ODM)
Sells an entire product that is manufactured by a second company under its own brand.
Original Brand Manufacturer (OBM)
9 Phases in Product Development Process
Idea Generation
Feasibility analysis
Product Specification
Process Specifications
Prototype Development
Design Review
Market Test
Product Introduction
Follow-up evaluation
Ideas for new or redesigned products or services can come from variety of sources, including customers, the supply chain, competitors, employees and research.
Idea Generation
Entails market analysis (demand), economic analysis (development and production cost, profit potential), and technical analysis (capacity requirements and availability, and skills needed).
Feasibility Analysis
This involved detailed descriptions of what is needed to meet (or exceed) customer wants, and requires collaboration between legal, marketing, and operations.
Product Specification
The process that will be needed to produce to the product or deliver the service. Alternatives must be weighed in terms of cost, availability or resources, profit potential, and quality. This involves accounting and operations.
Process Specifications
One (or a few) units are made to see if there are any problems with the product or process specifications.
Prototype Development
At this stage, any changes are made, or the project is abandoned. Marketing, finance, engineering, design, and operations collaborate to determine whether to proceed or abandon
Design Review
Used to determine the consumer acceptance. If unsuccessful, the product returns to the design review phase. This phase is handled by marketing.
Market Test
The new product is promoted. This phase is handled by marketing.
Product Introduction
Based on user feedback, changes may be made, or forecasts refined. This phase is handled by marketing.
Follow-up evaluation
