Design of Goods and Services
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1 Design of Goods and Services Operations Management Chapter st of the ten OM strategy decisions Products TANGIBLE INTANGIBLE Product offerings exploit core competencies Technology Customization 3 1
2 Product Strategy Options Differentiation Low-cost Response 4 Product Life Cycle Introductory Phase Growth phase Maturity Phase Decline Phase 5 Product by Value Analysis Ranking of products based on dollar contribution to company Individual product contribution Total annual contribution Focuses the strategic direction for products 6 2
3 New product opportunities Understanding the customer Economic change Sociological and demographic change Technological change Political/legal change Other Market practice Professional standards Suppliers Distributors 7 New Product Impact Generally first mover will acquire major market square Hamilton Sundstrand 1 in 10 projects result in successful product Concept to market 15 to 20 years Millions of dollars of investment per project Thousands of new projects every year Only a fraction gain market acceptance or enough market share to be profitable 8 Product Development Concepts come from a variety of sources Internal External Must be evaluated every step of the process Ideas Firm s abilities or competencies Customer requirements Functional specifications Product specifications Design review Test market Introduction Evaluation Scope of product development team Scope of design and engineering teams 9 3
4 QFD- Quality Function Deployment Determining what the customer wants Translating the customers desires into the design Seven steps to House of Quality Identify customer Wants Determine how the product will satisfy Characteristics, features, aesthetics, attributes Relate the Wants to Hows Relate to the firm s Hows Develop importance ratings Evaluate competing products Consider technical attributes Your company Competing firms 10 Organizing product development Firm R&D Engineering Manufacturing 11 Issues for Product Design Manufacturability Value Engineering Robust design Modular design CAD computer aided design CAM computer aided manufacturing Virtual reality Value analysis Ethics Environmentally friendly designs 12 4
5 Product Development Continuum Internal Cost Shared Lengthy Speed Rapid High Risk Shared 13 External Development Strategies Purchasing technology by acquiring a firm Joint ventures FAW-VW Alliances 14 Defining the product What is the function of the product? How should the product be produced to fulfill its purpose? What levels of quality are required? Engineering Drawings Bill of Materials Listing of components (recipes) Portion-control standards Quality specifications 15 5
6 Documents for production Assembly chart Route sheet Work order Engineering change notice (ECN) Configuration management Product Life-Cycle Management (PLM) 16 Service Design Customer interaction Design Delivery Cost and Quality Customization delayed to last stages Modularize segments Customization One or the other or both Automation/reduced customer interaction 17 Moment of Truth Experience Detractors Standard Expectations Experience Enhancers Customer Satisfaction 18 6
7 Transition to Production Project managers Product development teams Integration of the product development and manufacturing organization Goal is to make sure the transition from R&D to manufacturing is as smooth as possible. 19 Fighting change is like holding your breath. If you persist you will die. 20 7
CP:
Adeng Pustikaningsih, M.Si. Dosen Jurusan Pendidikan Akuntansi Fakultas Ekonomi Universitas Negeri Yogyakarta CP: 08 222 180 1695 Email : adengpustikaningsih@uny.ac.id Operations Management Design of Goods
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