Design of Products and Services - Chapter 3 Flashcards
(27 cards)
Importance of new product & service development (NPD) for companies:
quickly designing an launching new products/service helps companies stay competitive and meet changing customer demands.
- Adapts to changing customer needs
- Stays ahead of competitors
- Is essential for long-term success
Outsourcing
performed by an external CO to help their production and focus on NPD –> specifically manufacturing outsourcing is called ‘contract manufacturer’
Contract Manufacturer
is an organization that performs manufacturing not for itself, but as a service to another firm
A CO’s core competency (thing one can do better than others) has 3 characteristics:
- Provides potential access to a wide variety of markets
- Increases perceived customer benefits
- Hard for competitors to imitate
When a CO is not in manufacturing they usually outsource contract manufacturers (core competency)
What is Product Development Process (PDP)?
the basic steps and various criteria needed to design a product – involves intellectual and conceptual activities
- some firms follow a precise and detailed PDP but others may not even be able to describe their processes.
- every firm usually has different processes for different product groups.
6 Phases of Generic PDP (formal process)
Phase 0: Planning
Phase 1: Concept development
Phase 2: System-level design
Phase 3: Design detail
Phase 4: Testing and refinement
Phase 5: Production ramp-up
Phase 0: Planning
Precedes project approval
Begins with corporate strategy
Includes assessment of technology developments and market objectives
Output: is the project mission statement
Phase 1: Concept Development
Needs of the target market are identified
Alternative product concepts are generated and evaluated
Output: one or more concepts are selected for further development and testing
Concept
a description of the form, function, and features of a product
Phase 2: System-Level Design
Definition of the product architecture
Decomposition of the product into subsystems and components
Final assembly scheme for the production system is usually defined
Output:
- Layout of the product
- Functional specifications for each subsystem
- Preliminary process flow diagram
Phase 3: Design Detail
Complete specification of the geometry, materials, and tolerances for all parts
Identification of all the standard parts to be purchased from suppliers
Process plan is established
Tooling is designed
Output:
- Drawings describing the geometry of each part and its tooling
- Specifications of purchased parts
- Process plan
Phase 4: Testing and Refinement
Construction and evaluation of multiple preproduction versions of product
- Same geometry and material as production version
- Not necessarily fabricated with the actual production processes
Output: Prototypes tested to determine if the product will work as designed
Phase 5: Production Ramp-Up
Product is made using the intended production system
Need to train workers and resolve any remaining problems
Products may be supplied to preferred customers for evaluation
Output: Transition to ongoing production is gradual
Quality Function Deployment (QFD):
is a systematic NPD approach that integrates customer’s needs into the design and development of products or services, using interfunctional teams (marketing, engineering, manufacturing) and tools like the House of Quality.
House of Quality
visual tool that links customer needs to design features –> helps teams prioritize what matters most to customers in product development
Value Analysis/ Value Engineering (VA/VE)
simplifies products and processes
Objective: achieve better performance at a lower cost while maintaining all functional requirements defined by customers
Designing service products:
designing new services (or service products) are very different –> due to customer involvement which adds variability
What 3 factors determine how different a new service is?
Similarity to current services (customer experience)
Similarity to current processes (company operations)
Financial justification (cost of development)
Why is measuring PDP important?
Keeps the firm competitive
Responds to changing customer needs and competitors
Identifies and acts on new opportunities
Ensures efficiency in developing new products/services
What are typical success measures NPD projects?
Time-to-Market: How quickly and frequently products are launched –> time from initial concept to market introduction
Productivity: Efficiency in using resources like engineering hours required, and cost of materials, tooling, and testing
Quality: How well the product meets customer needs
Sustainable OSCM
Strategy to create and sustain value for current shareholders.
Adding sustainability ensures that today’s goals don’t limit the ability of future generations to meet their own needs.
Triple bottom line:
Economic Prosperity
Social Responsibility
Environmental Stewardship
Social responsibility
fair and beneficial business practices towards labour, community and region in which a firm conducts its business
Economic prosperity
firm is obligated to compensate shareholders who provide capital
