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Operation Managment


Submitted By salman555au
Words 5535
Pages 23
Chapter 4
Product and service design
It is the major factor in
- Cost

- Customer satisfaction

- Quality

- Competitive advantage

- Time-to-market
Objectives of Product and Service Design
 Main focus
- Customer satisfaction

- Understand what the customer wants

 Secondary focus
- Function of product/service

- Appearance

- Cost/profit

- Ease of production/assembly

- Quality

- Ease of maintenance/service

Product or Service Design Activities
1. Translate customer wants and needs into product and service requirements
2. Refine existing products and services
3. Develop new products and services
4. Formulate quality goals
5. Formulate cost targets
6. Construct and test prototypes
7. Document specifications

Reasons Design or Re-Design : The driving forces for product and service design or redesign are market opportunities or threats:
- Economic

- Competitive

- Social and Demographic

- Cost or Availability

- Political, Liability, or Legal

- Technological

Regulations and Legal Considerations
 Product Liability : A manufacturer is liable for any injuries or damages caused by a faulty product.
 Uniform Commercial Code : Products carry an implication of merchantability and fitness.
Designers Adhere to Guidelines
- Produce designs that are consistent with the goals of the company
- Give customers the value they expect
- Make health and safety a primary concern
- Consider potential harm to the environment
Other Issues in Product and Service Design
- Product/service life cycles

- Robustness of design

- Degree of standardization

- Degree of newness

- Mass customization

- Cultural differences

- Product/service reliability

- Global product design

Phases in Product Design and Development
1. Idea generation

3. Product specifications

2. Feasibility analysis

4. Process

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