When a product service is designed:
detailed characteristics, how the product/service can be produced/delivered, produced/delivered determines design of production/delivery system
Sources of Product/Service Innovation
Customers, managers, marketing, operations, engineering, R&D
Technical and Economic Feasibility
determine advisability of establishing a project, if favorable engineers prepare an initial prototype
Prototype Design
design exhibits the basic form, fit, function, and will not be identical to the production model
Performance Testing
testing and redesign of the prototype continues until it is satisfactory
Marketing Sensing/Evaluation and Economic Evaluation
demonstrations to customers, market test, market surveys. Evaluation of production volume, costs, and profits. Then production design phase
Design of Production Model
production model will not be the final design, will undergo changes
Market Performance
should exhibit low cost, reliable quality, performance, ability to be produced in desired quantities
Continuous Modification
adapt to changing market conditions, production technology, manufacturing improvements
New Products to Market Faster
speed, tools, and technology
Value Analysis
design features are examined in terms of their cost/benefit value
Ease of Production
manufacturability
Specifications
precise information about the characteristics of the product
Tolerances
minimum and maximum limits that allows the item to function per design
Standardization
reduce variety among a group of products or parts
Simplification
reduces or eliminate the complexity of a part or product
Quality
determined by the customer’s perception of the degree of excellence of the product or service characteristics
Vertical Integration
amount of the production and distribution chain that is brought under the ownership of a company
Decision of Integration
based on cost, availability of capital, quality, technological capability, and more
Strategic Outsourcing
outsourcing of processes in order to react to quicker changes in customer needs, competitor actions, and technology
Product Flexibility
ability of the production system to quickly change from producing one product to another
Volume Flexibility
able to quickly increase or reduce volume of a product/service produced/delivered
Advantages of Automation
improves product quality, flexibility, and reduces labor and related costs
Disadvantages of Automation
equipment is expensive, integration can be difficult
Old Viewpoint
high quality products must be made in small batches by experts
New Viewpoint
high quality products can be mass produced using automation
Product Focused
lower labor skill, reduced worker training, reduced supervision
high initial cost, low product flexibility
Process Focused
high product flexibility, lower initial cost
higher labor skill, more worker training, more supervision, more complex planning and controlling
Cellular Manufacturing
organization of the shop floor into cells
Quasi-Manufacturing
production of goods take place along a production line
Customer-as-Participant
services may be standardized or customized, high degree of customer involvement
Customer-as-Product
personal attention to customer, customized service, high degree of contact
Assembly Chart
Gozinto Charts, macro-view on how materials are united
Process Charts
details how to build a product at each process