Product Design
4-1 Product and Service Design
Operations Management
William J. Stevenson
8th edition
4-2 Product and Service Design
CHAPTER
4
Product and
Service Design
Operations Management, Eighth Edition, by William J. Stevenson
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
4-3 Product and Service Design
Product and Service Design
•
Major factors in design strategy
Cost
Quality
• Time-to-market
• Customer satisfaction
• Competitive advantage
•
•
Product and service design – or redesign – should be closely tied to an organization’s strategy
4-4 Product and Service Design
Product or Service Design Activities
Translate customer wants and needs into product and service requirements
• Refine existing products and services
• Develop new products and services
• Formulate quality goals
• Formulate cost targets
• Construct and test prototypes
• Document specifications
•
4-5 Product and Service Design
Reasons for Product or Service Design
•
Economic
•
Social and demographic
•
Political, liability, or legal
•
Competitive
•
Technological
4-6 Product and Service Design
Objectives of Product and Service Design
•
Main focus
•
Secondary focus
•
Customer satisfaction
Function of product/service
Cost/profit
• Quality
• Appearance
• Ease of production/assembly
• Ease of maintenance/service
•
•
4-7 Product and Service Design
Designing For Operations
•
Taking into account the capabilities of the organization in designing goods and services 4-8 Product and Service Design
Legal, Ethical, and Environmental Issues
•
Legal
FDA, OSHA, IRS
Product liability
• Uniform commercial code
•
•
•
Ethical
•
Environmental
•
•
Releasing products with defects
EPA
4-9 Product and Service Design
Regulations & Legal Considerations
•
Product Liability - A manufacturer is liable
Operations Management
William J. Stevenson
8th edition
4-2 Product and Service Design
CHAPTER
4
Product and
Service Design
Operations Management, Eighth Edition, by William J. Stevenson
Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin
4-3 Product and Service Design
Product and Service Design
•
Major factors in design strategy
Cost
Quality
• Time-to-market
• Customer satisfaction
• Competitive advantage
•
•
Product and service design – or redesign – should be closely tied to an organization’s strategy
4-4 Product and Service Design
Product or Service Design Activities
Translate customer wants and needs into product and service requirements
• Refine existing products and services
• Develop new products and services
• Formulate quality goals
• Formulate cost targets
• Construct and test prototypes
• Document specifications
•
4-5 Product and Service Design
Reasons for Product or Service Design
•
Economic
•
Social and demographic
•
Political, liability, or legal
•
Competitive
•
Technological
4-6 Product and Service Design
Objectives of Product and Service Design
•
Main focus
•
Secondary focus
•
Customer satisfaction
Function of product/service
Cost/profit
• Quality
• Appearance
• Ease of production/assembly
• Ease of maintenance/service
•
•
4-7 Product and Service Design
Designing For Operations
•
Taking into account the capabilities of the organization in designing goods and services 4-8 Product and Service Design
Legal, Ethical, and Environmental Issues
•
Legal
FDA, OSHA, IRS
Product liability
• Uniform commercial code
•
•
•
Ethical
•
Environmental
•
•
Releasing products with defects
EPA
4-9 Product and Service Design
Regulations & Legal Considerations
•
Product Liability - A manufacturer is liable