CHAPTER 4PRODUCT AND SERVICE DESIGN
In planning the production system, major decisions are made concerning the design of the product orservices as well as the design of the production processes. Entrepreneurs usually formulate newbusinesses based on a unique product or a service idea. In existing firms, new products or services areintroduced when the competition for existing products increases or as existing products approach the endof their product life cycle. Even after a few new products are launched, and even if these products aresuccessful, since they have limited life cycles, companies always seek and consider new productpossibilities. If a company continuously monitors new product possibilities, and if there is a productfailure among the current products, or if there is a significant change in the product market, then thecompany can still be in position to release a new product to fill the void. This chapter focuses on thedesign of the products and services. The main topics in this chapter include:1.The reasons, trends, and objectives of Product and Service Design.2.The Design Process (Designing for mass customization, reliability, robust design, etc.).3.Research and Development.4.Standardization.5.Product Design (concurrent engineering, computer aided design, remanufacturing).6.Service Design.7.Quality Function Deployment.8.Operations Strategy.There aren’t many things more important to an organization than its products and/or services and there isa rather obvious connection between the design of those products and/or services and the organization’ssuccess. Consequently, organizations are vitally concerned about achieving outstanding product andservice design so they can compete in today’s global marketplace.
Answers to Discussion and Review Questions
1.Organizations redesign their products and services for a variety of reasons. Among them arecustomer dissatisfaction, government regulation, competition, liability claims, technologicalinnovation (products and methods) and changes in costs and availability of such inputs asmaterials, labor and energy.2.Applied research is research with a specific “commercial” application goal; basic research isintended to increase knowledge about a subject or area.3.CAD refers to computer-aided design: computer graphics used for product design. A designercan easily modify an existing design or create a new one. The designer can readily obtain avariety of different perspectives as well as other pertinent information that speeds the process andfrees the designer to concentrate on creative aspects of design.4.The main advantages of standardization are:a.Less variety of parts to deal with.b.Permits standardized training, purchasing, inspection and material handling. It may alsopermit automation.
Operations Management, 9/e