CHAPTER 4 KEY TERMS

1. Computer-aided design (CAD) Computer- 4. Delayed differentiation The process of

Aided Design (CAD) Computers are increasingly producing, but not quite completing, a product or
used for product design. Computer-aided design service until customer preferences are known.
(CAD) uses computer graphics for product
design. The designer can modify an existing Delayed differentiation is a postponement
design or create a new one on a monitor by tactic: the process of producing, but not quite
means of a light pen, a keyboard, a joystick, or a completing, a product or service, postponing completion
similar device. until customer preferences or specifications are known.
There are a number of variations of this. In the case of
Computer-aided design (CAD) Product design goods, almost finished units might be held in inventory
using computer graphics. until customer orders are received, at which time
customized features are incorporated, according to
2. Concurrent engineering Bringing engineering customer requests. For example, furniture makers can
design and manufacturing personnel together produce dining room sets, but not apply stain, allowing
early in the design phase. customers a choice of stains. Once the choice is made,
the stain can be applied in a relatively short time, thus
In its narrowest sense, concurrent engineering eliminating a long wait for customers, giving the seller a
means bringing design and manufacturing engineering competitive advantage.
people together early in the design phase to
simultaneously develop the product and the processes Do we have the necessary knowledge, skills,
for creating the product. More recently, this concept has equipment, capacity, and supply chain capability? For
been enlarged to include manufacturing personnel (e.g., products, this is known as manufacturability; for
materials specialists) and marketing and purchasing services, this is known as serviceability. 

personnel in loosely integrated, cross-functional teams.
In addition, the views of suppliers and customers are
frequently sought. The purpose, of course, is to achieve 5. Manufacturability The capa- bility of an
product designs that reflect customer wants as well as organization to produce an item at an accept-
manufacturing capabilities. able profit.
6. Serviceability The capability of an organization
3. Cradle-to-grave assessment The assessment to provide a service at an acceptable cost or
of the environmental impact of a product or profit.
service throughout its useful life. 7. Normal operating conditions -The set of
conditions under which an item’s reliability is
Cradle-to-grave assessment, also known as life cycle specified.
analysis, is the assessment of the environmental impact
of a product or service throughout its useful life, Reliabilities are always specified with respect to
focusing on such factors as global warming (the amount certain conditions, called normal operating
of carbon dioxide released into the atmosphere), smog conditions. These can include load, temperature, and
formation, oxygen depletion, and solid waste humidity ranges as well as operating procedures and
generation. For products, cradle-to-grave analysis takes maintenance schedules. Failure of users to heed these
into account impacts in every phase of a product’s life conditions often results in premature failure of parts or
cycle, from raw material extraction from the earth, or the complete systems. For example, using a pas- senger
growing and harvesting of plant materials, through car to tow heavy loads will cause excess wear and tear
fabrication of parts and assembly operations, or other on the drive train; driving over potholes or curbs often
processes used to create products, as well as the use results in untimely tire failure; and using a calculator to
or consumption of the product, and final disposal at the drive nails might have a marked impact on its
end of a product’s useful life. usefulness for performing mathematical operations.

8. Value analysis Examina- tion of the function of
parts and materials in an effort to reduce cost
and/or improve product performance.
Value analysis refers to an examination of the
function of parts and materials in an effort to reduce the
cost and/or improve the performance of a product.
Typical questions that would be asked as part of the
analysis include: Could a cheaper part or material be
used? Is the function necessary?
9. Remanufacturing Refurbish- ing used products
by replac- ing worn-out or defective
components.
An emerging concept in manufacturing is the
remanufacturing of products. Remanufacturing refers implies that every customer or item processed receives
to refurbishing used products by replacing worn-out or
defective components, and reselling the products. This a good example; each car, regardless of how clean or
can be done by the original manufacturer, or another
company. Among the products that have
remanufactured components are automobiles, printers, standardized goods.
copiers, cameras, computers, and telephones.
10. Design for disassembly (DFD) - Design so
that used products can be easily taken apart.
11. Recycling Recovering materi- als for future use.
Recycling means recover- ing materials for
future use. This applies not only to manufactured parts
but also to materials used during production, such as
lubricants and solvents. Reclaimed metal or plastic
parts may be melted down and used to make different
products.
12. Design for recycling
 (DFR) Design that
facilitates the recovery of materials and
components in used products for reuse.
The pressure to recycle has given rise to the
term design for recycling (DFR), referring to product
design that takes into account the ability to disassemble
a used product to recover the recyclable parts.
13. Product life cycle manage- ment (PLM) A
systematic approach to managing the series of
changes a product goes through, from its con-
ception to its end-of-life.
Product life cycle management (PLM) is a
systematic approach to managing the series of changes
a product goes through, from its conception, design,
and development, through production and any redesign,
to its end of life. PLM incorporates everything related to
a particular product. That includes data pertaining to
production processes, business processes, people, and
anything else related to the product.
14. Standardization Extent to which a product,
service, or process lacks variety.
Standardization refers to the extent to which
there is absence of vari- ety in a product, service, or
process. Standardized products are made in large
quantities of identi- cal items; calculators, computers,
and 2 percent milk are examples. Standardized service
essentially the same service. An automatic car wash is
dirty it is, receives the same ser- vice. Standardized
processes deliver standardized service or produce
15. Mass customization A strat- egy of producing
basically standardized goods, but incorporating
some degree of customization.
16. Modular design A form of standardization in
which com- ponent parts are grouped into
modules that are easily replaced or
interchanged.
Modular design is a form of standardization.
Modules represent groupings of component parts into
subassemblies, usually to the point where the individual
parts lose their separate identity. One familiar example
of modular design is computers, which have modular
parts that can be replaced if they become defective. By
arranging modules in different configu- rations, different
computer capabilities can be obtained.
17. Reliability is a measure of the ability of a
product, a part, a service, or an entire system to
per- form its intended function under a
prescribed set of conditions. The importance of
reliability is underscored by its use by
prospective buyers in comparing alternatives
and by sellers as one determinant of price.
 Reliability The ability of a product, part, or assembly focuses on reducing the number of parts
system to perform its intended function under a in an assembly, as well as on the assembly
prescribed set of conditions. methods and sequence that will be employed.
Another, more general term, manufacturability, is
18. Failure Situation in which a product, part, or sometimes used when referring to the ease with
system does not perform as intended. which products can be fabricated and/or assembled.
For example, a smoke alarm might fail to 23. Service Something that is done to or for a
respond to the presence of smoke (not operate at all), it customer.
might sound an alarm that is too faint to provide an 24. Service delivery system The facilities,
adequate warning (substandard perfor- mance), or it processes, and skills needed to provide a
might sound an alarm even though no smoke is present service.
(unintended response). 25. Product bundle The combi- nation of goods
and services provided to a customer.
19. Robust design Design that results in products 26. Service package The physical resources
or services that can function over a broad range
of conditions. needed
 to perform the service, the
accompanying goods, and the explicit and
The more robust a product or service, the less implicit services included.
likely it will fail due to a change in the envi- ronment in
which it is used or in which it is performed. Hence, the Service refers to an act, something that is done
more designers can build robustness into the product or to or for a customer (client, patient, etc.). It is
service, the better it should hold up, resulting in a higher provided by a service delivery system, which
level of customer satisfaction. includes the facilities, processes, and skills needed
to provide the service. Many services are not pure
20. Quality function deployment (QFD) An services, but part of a product bundle—the
approach that inte- grates the “voice of the cus- combination of goods and services provided to a
tomer” into both product and service customer. The service com- ponent in products is
development. increasing. The ability to create and deliver reliable
customer-oriented service is often a key competitive
The purpose is to ensure that customer differentiator. Successful companies combine
requirements are factored into every aspect of the customer- oriented service with their products.
process.
27. Service blueprint A method used in service
21. Design for manufacturing (DFM) The design to describe and analyze a pro- posed
designing of prod- ucts that are compatible with service.
an organization’s capabilities.
22. Design for assembly (DFA) Design that A useful tool for conceptualizing a service
focuses on reduc- ing the number of parts in
 a delivery system is the service blueprint, which is a
product and on assembly methods and method for describing and analyzing a service process.
sequence. A service blueprint is much like an architectural drawing,
but instead of showing building dimensions and other
Design for manufacturing (DFM) is used to construc- tion features, a service blueprint shows the
indicate the designing of products that are basic customer and service actions involved in a service
compatible with an organization’s capabilities. A operation.
related concept in manufacturing is design for
assembly (DFA). A good design must take into 28. Product liability The respon- sibility of a
account not only how a product will be fabricated, manufacturer
 for any injuries or damages
but also how it will be assembled. Design for caused by a faulty product.
 29. Uniform Commercial Code A product must be
suitable for its intended purpose.

Product liability can be a strong incentive for

design improvements. Product liability is the
responsibility of a manufacturer for any injuries or
damages caused by a faulty product because of poor
workmanship or design. Many business firms have
faced lawsuits related to their products, including
Firestone Tire & Rubber, Ford Motor Company, General
Motors, tobacco companies, and toy manufacturers.
Manufacturers also are faced with the implied
warranties created by state laws under the Uniform
Commercial Code, which says that prod- ucts carry an
implication of merchantability and fitness; that is, a
product must be usable for its intended purposes.

30. Reverse engineering Dis- mantling and

inspecting a competitor’s product to dis- cover
product improvements.

By studying a competitor’s products or services

and how the competi- tor operates (pricing policies,
return policies, warranties, location strategies, etc.), an
organi- zation can glean many ideas. Beyond that,
some companies purchase a competitor’s product and
then carefully dismantle and inspect it, searching for
ways to improve their own product. This is called
reverse engineering.

31. Research and development (R&D) Organized

efforts to increase scientific knowledge or
product innovation.

Research is another source of ideas for new or

improved products or services. Research and
development (R&D) refers to organized efforts that are
directed toward increasing scientific knowledge and
product or process innovation. Most of the advances in
semi- conductors, medicine, communications, and
space technology can be attributed to R&D efforts at
colleges and universities, research foundations,
government agencies, and private enterprises.

R&D efforts may involve basic research, applied

research, or development.