Lesson 5: Managing Projects

1. What is the most important driving force for product design or redesign?Why?

● The driving forces for product and service design or redesign are market
opportunities or threats:
1. Economic - Many new products and services go through a demand life
cycle. When a new item is introduced, it may be considered a curiosity.
Because potential buyers are unfamiliar with the item, demand is
generally low. Many prospective buyers understand that not all of the
bugs have been worked out and that the price may drop after the
introductory period. Low-volume production methods are used. Design
improvements usually result in a more dependable and less expensive
product over time. Demand grows as a result of these factors, as well as
increased awareness of the product or service. Higher production volume
will necessitate a variety of methods, all of which will contribute to lower
costs. The product or service reaches the next stage of its life cycle.
2. Social and Demographic - Product design is viewed as a critical activity
in the production of environmentally friendly products by organizations.
Companies are increasingly realizing that being good corporate citizens
boosts sales. In response to customer concerns, fast-food restaurants
have begun recycling programs and redesigned packaging materials and
systems. In other cases, being a good corporate citizen and protecting a
company's renewable resources go hand in hand; there are win-win
situations where an organization can actually design products and
processes that reduce costs and increase profits by recapturing pollutants
and reducing solid waste.
3. Political, Liability, or Legal - Legally, organizations are clearly liable for
the design and safe use of their products. Consumers who believe they
have been harmed by a defective product or service have legal recourse
under both civil and criminal statutes. However, only the most serious and
obvious offenses are frequently resolved in this manner. Often, however,
only the most serious and obvious offenses are settled in this way. More
difficult ethical issues in product design result when the evidence is not as
clear.
4. Competitive - Product design is a cross-functional, knowledge-intensive
job that has grown in importance in today's fast-paced, global competitive
environment. Because new products contribute significantly to sales
revenue, it is a critical strategic activity in many businesses. When
businesses are able to create unique products, they have the ability to
command higher prices.
 5. Cost or Availability - The goal of product design is to create a good or
service that has excellent functional utility and sales appeal at a
reasonable cost and in a reasonable amount of time. High-quality, low-
cost materials and methods should be used to manufacture the product. It
should be manufactured using equipment that is currently or will be
available when production begins. They use mass customization, which is
the low-cost, high-quality, high-volume delivery of individually customized
products. It is the ability to rapidly design and mass-produce customized
products at a cost comparable to non-customized products.
Customization, cost effectiveness refers to the ability to produce highly
differentiated products without significantly increasing costs.
6. Technological - Customers are demanding more product variety and
switching to products with cutting-edge technology faster than ever
before, making product design more important than ever. The effects of
increased product variety and shorter product life cycles multiply the
number of new and derivative products that must be designed. They are
examining how products work, how much they may cost to produce, and
how they may impact the environment using technology such as rapid
prototyping and computer-aided design. Firms are looking for and
implementing new technologies to help them design better products.

2. How often do you think should a company engage in newness of their product?
Why?

New Products development is the life blood of companies. The new products could be physical
tangible products such as automobiles, smartphones, or coffee maker machines. It could also
be services like IT software, new production processes, or a new marketing concept. The
development of new products is a straightforward concept. It is the transformation of a
customer's need into a reality-based solution, the creation of a tangible product or service from
an intangible idea, and the creation of new wealth. To be successful in implementing new
product development efforts, significant resources and market opportunities are typically
required. Because there is a high risk of failure when implementing new products, it is critical to
understand why new product development is important to businesses. The first and most
important reason for developing new products is to provide new value to customers. There is no
other reason for them to invest in new products or services if this is not the case. Customers, on
the other hand, will stick with a new product or service if it offers exceptional value. This new
and enhanced value is what keeps your business growing. If there is no other new value to offer
customers, the company will cease to exist and will eventually die. If the value offered does not
continue to rise, the company's market strength will dwindle as its competitors' market value
rises. Many new products on the market are simply incremental improvements over previous
versions, with only a few new features or slightly faster performance than the previous one.
These products may help the company by providing enough new values to increase sales
revenue, but they are hardly beneficial to society. In some cases, new products will benefit
society in ways other than the immediate satisfaction of the consumer. For example, some
innovative new drugs to treat incurable diseases are introduced, as are automotive safety
accessories that save hundreds of people's lives each year. Neither of these may provide
immediate satisfaction to the customer, but they both save lives and thus benefit society.

Lesson 6: Quality Management

1. What is Quality?

Quality can be defined as conformance to specifications. The degree to which a product meets
the design specifications offering a satisfaction factor that fulfils all the expectations that a
customer wants. Products are manufactured and controlled following normative regulations
accepted in the market, so that in case of an inspection by a regulatory body, the product
proves that it meets the requirements established by the related certifying organizations. Quality
begins with the design of a product in accordance with the customer specification, and it
continues with the use of established measurement standards, the use of appropriate materials,
the selection of a suitable manufacturing process, and so on. Quality is a relative term, and it is
generally used with reference to the end use of the product. The act of supervising all activities
and tasks that must be completed in order to maintain a desired level of excellence is known as
quality management. This includes developing and implementing a quality policy, as well as
creating and implementing quality planning and assurance, quality control, and quality
improvement. It is also known as total quality management (TQM).

2. Why is quality important to an organization?

A product's quality can be measured in terms of performance, dependability, and durability.

Quality is a critical factor that distinguishes one organization from its competitors. Quality
management tools ensure that changes in systems and processes result in higher-quality
products and services. Managing quality is crucial for organizations. Quality products help to
maintain customer satisfaction and loyalty and reduce the risk and cost of replacing faulty
goods. Companies can build a reputation for quality by gaining accreditation with a recognized
quality standard. The reputation of your company is influenced by quality. Because of the
growing importance of social media, customers and prospects can easily share both positive
and negative opinions about your product's quality on forums, product review sites, and social
networking sites like Facebook and Twitter.
Costs rise when quality suffers. If you do not have an effective quality control system in place,
you may have to pay for the cost of analyzing nonconforming goods or services to determine
the root causes and retesting products after they have been reworked. Quality Management
ensures increased revenues and higher productivity for the organization, helps organizations to
reduce waste and inventory, and helps an organization to design and create a product which the
customer actually wants and desires.

Lesson 7: Process Design

 1. Why are the process strategies important in producing quality goods and services?

A good process strategy in operations management will help your processes flow more
smoothly, which will have an impact on your overall operations management. A good process
strategy can provide numerous benefits when developing a product or service. These would
include cost savings as a result of analyzing all of your department's processes. Another
significant advantage is that it will enable you to create a lower-cost product. Typically, as your
processes become more cost-effective, your margins improve and you can produce higher-
quality products at a lower cost, which can help you gain market share. Numerous operational
decisions must be made that have both long-term and short-term implications for the
organization's ability to produce goods and services that add value to customers. If the
organization makes mostly good operational decisions in designing and implementing its
transformation system to meet the needs of customers, its long-term survival prospects are
greatly improved. Process focus is when you organize your production processes in such a way
that they run in low volume and high variety. Furthermore, this strategy will allow it to be more
adaptable. As a result, the products can be allowed to move at different times between
processes. While repetitive focus processes, for example, are more systematic and done in a
sequenced format. Typically, these facilities are organized in an assembly format. Repetitive
focus is less flexible than process focus, but it can be more efficient. One of the most complex
processes identified is mass customization. You produce goods at a rapid pace and at a low
cost to meet the specific needs of your customers. It is also commonly regarded as a flexible
strategy that can aid in the efficiency of your operations. In summary, looking at all of the
strategies shown above, you can see that there are a lot of important options to consider when it
comes to operations management. It is critical for operations managers to select the best
strategy for their company.

Lesson 8: Location Decisions

1. Discuss the importance of strategic location in operations management.

Being in the right location is critical to a company's success. If a company chooses the
wrong location, it may not have sufficient access to customers, workers, transportation,
materials, and so on. As a result, location frequently has a significant impact on a company's
profit and overall success. A location strategy is a plan for obtaining the best location for a
business by first identifying the company's needs and objectives, and then searching for
locations that have offerings that meet those needs and objectives. In general, this means the
company will strive to maximize opportunity while minimizing costs and risks.
A company's location strategy should be consistent with and integrated into its overall
corporate strategy. As a result, if a company aspires to be a global leader in
telecommunications equipment, for example, it must consider locating plants and warehouses in
regions that are consistent with its strategy and are well-located to serve its global customers.
Good location decisions can significantly boost a company’s long-term performance. Poor ones
can cost millions in lost talent, productivity and capital. Having a good location strategy allows
you to obtain the optimal location aligned to your organization’s needs and objectives, one that
allows your firm to maximize opportunity while minimizing costs and risks.
Matthijs Weeink, Director and Head of Business Location Consulting at JLL EMEA says,
“I’ve seen many cases where poor location strategy has led to longstanding negative impacts
for organizations. In one case, a company decided to decentralize to cut costs but leaving their
strategic location turned out to be a disaster. Although the firm eventually managed to lower
their real estate expenses, the move also resulted in a loss of talent and clients, costing them
millions of dollars in the process.”

Lesson 9: Layout Decisions

1. Why is there a need for layout planning?

In simple words, layout planning refers to the arrangement of all resources

available to an organization in the best way possible such that congestion is minimized
and consumption of physical space gets carried out to maximize efficiency and
productivity. Layout decisions are also important from a strategic standpoint because
they define an organization's competitive priorities in terms of processes, cost, customer
contact, flexibility, and capacity. A company's ability to make different strategic decisions
related to low-cost advantage, product or service differentiation, and so on is enhanced
by effective layout planning. The physical resources can be anything and everything
such as desks, chairs, cabinets, stationery, equipment, machines, tools, conveyer,
communication, power, and water supply lines, etc. Decisions about the arrangement of
resources in a business are made not only when a new facility is being designed; they
are made whenever there is a change in the arrangement of resources, such as the
addition of a new worker, the relocation of a machine, or the implementation of a new
procedure. Layout planning is also carried out whenever there is a facility expansion or a
space reduction. The arrangement of resources in a facility can have a significant impact
on a company's productivity. A poor layout can result in a lot of wasted time, energy, and
confusion, as demonstrated in the preceding examples. There are additional reasons
why layout planning is important. Face-to-face interaction between workers is important
in many work environments, such as office settings. Building good working relationships,
increasing the flow of information, and improving communication can all benefit from
proper layout planning.
The three main reasons due to which layout decisions are considered important
for an organization:
1. Essential investments in terms of money and effort are required for these
decisions.
2. Long-term commitments
3. These decisions leave a remarkable effect on short-term operations in terms of
cost and efficiency.

2. What are the differences between a product layout and a service layout?
 Product design is the process of identifying a market opportunity, clearly defining
the problem, developing a proper solution for that problem and validating the solution
with real users. On the other hand, service design is the activity of planning and
organising people, infrastructure, communication and material components of a service
in order to improve its quality and the interaction between service provider and
customers. The main difference between service design and product design is that
services are intangible.There are no hard and fast distinctions between service and
product design, but one could argue that service design is broader and more holistic,
whereas product design is often more vertical and specific.Service design and product
design are not mutually exclusive. Instead, service design is the broader, more holistic
activity, while product design is more focused. While a team may not be able to do both,
both are eventually required for a viable offering.

Lesson 10: Job Design and Work Measurement

1. Discuss the importance of the role of human resources in delivering effective and
efficient operations through job design and work measurement.

Human Resource Management (HRM) refers to formal systems designed for the
management of people within an organization. A human resource manager's responsibilities are
divided into three categories: staffing, employee compensation and benefits, and
defining/designing work. Essentially, the goal of human resource management is to increase an
organization's productivity by improving the effectiveness of its employees. Despite the ever-
increasing pace of change in the business world, this mandate is unlikely to change
fundamentally. Since the HRM department or manager is charged with managing the
productivity and development of workers at all levels, human resource personnel should have
access to-;and the support of-;key decision makers.Furthermore, the HRM department should
be located in such a way that it can effectively communicate with all areas of the company.
Job analysis and staffing, organization and utilization of workforce, measurement and
appraisal of workforce performance, implementation of reward systems for employees,
professional development of workers, and workforce maintenance are the primary
responsibilities associated with human resource management. In its most basic form, the HR
(Human Resources) department is a group in charge of managing the employee life cycle (i.e.,
recruiting, hiring, onboarding, training, and firing employees) as well as administering employee
benefits.
Job design is the process of arranging (or rearrangement) work in order to reduce or
eliminate job dissatisfaction and employee alienation caused by repetitive and mechanistic
tasks. Organizations attempt to increase productivity levels through job design by providing non-
monetary rewards such as greater satisfaction from a sense of personal achievement in
meeting the increased challenge and responsibility of one's work. A job design exercise may
employ techniques such as job enlargement, job enrichment, job rotation, and job simplification.
Job design is an essential component of human resource management. It has an impact on
organizational effectiveness. It also has a significant impact on the overall quality of life at work.
It creates the tasks necessary to complete the job successfully. Refers to the organizational
responsibilities attached to the job that must be fulfilled by the job performers, such as rules and
regulations, work schedules, and so on. Carrying out the responsibilities entrusted to employees
results in job satisfaction after successful job performance and motivates them further. The
responsibility for completing the job can be assigned to a group of workers who can work
together to complete the job in a timely manner. This will eliminate many of the ills that exist
among workers and at the workplace. Workers will also be motivated if a group is given an
incentive for completing a job early or doing more jobs in a short period of time.