CHAPTER 5: DESIGN OF GOODS AND SERVICES GOODS AND SERVICES SELECTION Product Strategy Options Support Competitive Advantage
Product selection is choosin the ood or ser!ice to "ro!ide custo#ers or clients$ Product Decision is the %&sis 'or co#"&nies e(istence li)e the ood or ser!ice the or&ni*&tion "ro!ides to societ+$ socie t+$ To" To" or&ni*&tions t+"ic&ll+ 'ocus on core "roducts 'or e(&#"le: ,Hond&: enines , -icroso't: PC so't.&re , Intel: co#"uter chi"s
Throuh "roduct decision/ custo#ers %u+ s&tis'&ction/ not 0ust & "h+sic&l ood or "&rticul&r ser!ice$ 1 "roduct str&te+ o"tions &re: 2Di''erenti&tion$ 2Lo. cost$ 2R&"id res"onse$
Product Life Cycles
-&+ %e &n+ lenth 'ro# & 'e. hours to dec&des$ The o"er&tions 'unction #ust %e &%le to introduce ne. "roducts success'ull+$
Life Cycle and Strategy
Introduction: Fine tunin #&+ .&rr&nt unusu&l e("enses 'or: ,Rese&rch$ ,Product de!elo"#ent$ ,Process #odi'ic&tion &nd enh&nce#ent$ ,Su""lier de!elo"#ent$
Growth: 2Product desin %eins to st&%ili*e$ 2E''ecti!e 'orec&stin o' c&"&cit+ %eco#es necess&r+$ 2Addin or enh&ncin c&"&cit+ #&+ %e necess&r+$
Maturity: 2Co#"etitors no. est&%lished$ 2Hih !olu#e/ inno!&ti!e "roduction #&+ %e needed$ 2I#"ro!ed cost control/ reduction in o"tions/ "&rin do.n o' "roduct line$
Decline: 23nless "roduct #&)es & s"eci&l contri%ution to the or&ni*&tion/ #ust "l&n to ter#in&te o''erin$
Product-by-Value Analysis
2Lists "roducts in descendin order o' their indi!idu&l doll&r contri%ution to the 'ir#$ 2Lists the tot&l &nnu&l doll&r contri%ution o' the "roduct$ 2Hel"s #&n&e#ent e!&lu&te <ern&ti!e str&teies$
GENERATING NE4 PROD3CTS New Product Analysis
$ 3nderst&ndin the custo#er$ 6$ Econo#ic ch&ne$ 1$ Socioloic&l &nd de#or&"hic ch&ne$ 7$ Technoloic&l ch&ne$ 5$ Politic&l8le&l ch&ne$ 9$ -&r)et "r&ctice/ "ro'ession&l st&nd&rds/ su""liers/ distri%utors$ PROD3CT DEVELOP-ENT Product Development System
uality !unction Deployment "!D#
2Identi'+ custo#er .&nts$ 2Identi'+ ho. the ood8ser!ice .ill s&tis'+ custo#er .&nts$ 2Rel&te custo#er .&nts to "roduct ho.s$ 2Identi'+ rel&tionshi"s %et.een the 'ir#s ho.s$ 2De!elo" i#"ort&nce r&tins$ 2E!&lu&te co#"etin "roducts$ 2Co#"&re "er'or#&nce to desir&%le technic&l &ttri%utes$
Organi$ing for Product Development •
Historic&ll+ , distinct de"&rt#ents
,Duties &nd res"onsi%ilities &re de'ined$ ,Di''icult to 'oster 'or.&rd thin)in$ •
Tod&+ , te&# &""ro&ch
,Cross 'unction&l , re"resent&ti!es 'ro# &ll disci"lines or 'unctions$ ,Concurrent enineerin , cross 'unction&l te&#$
%anufacturability and Value &ngineering •
;ene'its:
,Reduced co#"le(it+ o' "roducts$ ,Addition&l st&nd&rdi*&tion o' "roducts$ ,I#"ro!ed 'unction&l &s"ects o' "roduct$ ,I#"ro!ed 0o% desin &nd 0o% s&'et+$ ,I#"ro!ed #&int&in&%ilit+ o' the "roduct$ ,Ro%ust desin$
ISS3ES FOR PROD3CT DESIGN 'obust Design
2Product is desined so th&t s#&ll !&ri&tions in "roduction or &sse#%l+ do not &d!ersel+ &''ect the "roduct$ 2T+"ic&ll+ results in lo.er cost &nd hiher
2Products desined in e&sil+ se#ented co#"onents$
2Adds 'le(i%ilit+ to %oth "roduction &nd #&r)etin$ 2I#"ro!ed &%ilit+ to s&tis'+ custo#er re
23sin co#"uters to desin "roducts &nd "re"&re enineerin docu#ent&tion$ 2Shorter de!elo"#ent c+cles/ i#"ro!ed &ccur&c+/ lo.er cost$ 2In'or#&tion &nd desins c&n %e de"lo+ed .orld.ide$ Computer-Aided %anufacturing "CA%#
23tili*in s"eci&li*ed co#"uters &nd "ror&# to control #&nu'&cturin e$ Virtual 'eality (ec)nology
2Co#"uter technolo+ used to de!elo" &n inter&cti!e/ 12D #odel o' & "roduct 'ro# the %&sic CAD d&t&$ 2Allo.s "eo"le to ?see the 'inished desin %e'ore & "h+sic&l #odel is %uilt$ 2Ver+ e''ecti!e in l&re2sc&le desins such &s "l&nt l&+out$ Value Analysis
2Focuses on desin i#"ro!e#ent durin "roduction$ 2See)s i#"ro!e#ents le&din either to & %etter "roduct or & "roduct .hich c&n %e "roduced #ore econo#ic&ll+$ &t)nics and &nvironmentally !riendly Designs
Guidelines: $ -&)e "roducts rec+cl&%le 6$ 3se rec+cled #&teri&ls 1$ 3se less h&r#'ul inredients 7$ 3se lihter co#"onents 5$ 3se less ener+ 9$ 3se less #&teri&l
TI-E2;ASED CO-PETITION 2Product li'e c+cles &re %eco#in shorter &nd the r&te o' technoloic&l ch&ne is incre&sin$ 2De!elo"in ne. "roducts '&ster c&n result in & co#"etiti!e &d!&nt&e$ Purc)asing (ec)nology by Ac*uiring a !irm +oint Ventures , Fir#s est&%lishin 0oint o.nershi" to "ursue ne. "roduct o' #&r)et$
Alliances , Coo"er&ti!e &ree#ents th&t &llo. 'ir#s to re#&in inde"endent %ut use
co#"le#entin strenth to "ursue str&teies consistent .ith their indi!idu&l #issions$
DEFINING A PROD3CT 2First de'inition is in ter#s o' 'unctions$ 2Riorous s"eci'ic&tions &re de!elo"ed durin the desin "h&se$ 2-&nu'&ctured "roducts .ill h&!e &n enineerin dr&.in$ 2;ill o' #&teri&l =;O-> lists the co#"onents o' & "roduct$ %a,e-or-uy Decisions
2Distinuishes %et.een .h&t the 'ir# .&nts to "roduce &nd .h&t it .&nts to "urch&se$ .roup (ec)nology
2A "roduct &nd co#"onent codin s+ste# th&t s"eci'ies the t+"es o' "rocessin &nd the "&r&#eters o' the "rocessin$ 2Allo.s si#il&r "roducts to %e rou"ed$
DOC3-ENTS FOR PROD3CTION •
Enineerin dr&.in
2Sho.s di#ensions/ toler&nces/ &nd #&teri&ls$ 2Sho.s codes 'or Grou" Technolo+$ •
;ill o' -&teri&l
2Lists co#"onents/
2So't.&re "ror&#s th&t &tte#"ts to %rin toether "h&ses o' "roduct desin &nd #&nu'&cture$
SERVICE DESIGN %oments-of-(rut) Computer Company /otline
APPLICATION OF DECISION TREES TO PROD3CT DESIGN 2P&rticul&rl+ use'ul .hen there &re & series o' decisions &nd outco#es .hich le&d to other decisions &nd outco#es$ 2Procedures: • • •
Include &ll "ossi%le <ern&ti!es &nd st&tes o' n&ture 2 includin @doin nothin$ Enter "&+o''s &t end o' %r&nch$ Deter#ine the e("ected !&lue o' e&ch %r&nch &nd @"rune the tree to 'ind the <ern&ti!e .ith the %est e("ected !&lue$
