Chapter 4 Objectives
1) It has implications for the success and prosperity of an organization which:
i. Translates customer want and needs
ii. Refines existing products/services
iii. Develops new products/services
iv. Formulates quality goals
v. Formulates cost targets
vi. Constructs and test prototypes
vii. Documents specifications
1) Economic (e.g. low demand, excessive warranty claims, the need to reduce costs)
2) Social and demographic (e.g., aging baby boomers, population shifts)
3) Political and demographic (e.g., government changes, safety issues, new regulations)
4) Competitive (e.g., new or changed products or services, new advertising/promotions)
5) Cost or availability (e.g., of raw materials, components, labor)
6) Technological (e.g., in product components, processes)
1) Customer satisfaction
1) Products are immediately available to customers
2) Interchangeable parts – lowers cost
3) Reduces time/cost to train employees
4) Lower design cost
1) Product liability – management is liable for injuries/damages caused by faulty product.
2) Must maintain ethical standards or risk damage to its reputation
3) Environmental issues are regulated
1) Idea generation
2) Feasibility analysis
3) Product specifications
4) Process specifications
5) Prototype development
6) Design review
7) Market test
8) Product introduction
9) Follow-up evaluation
1) Supply-chain based (Customers, suppliers, distributors, employees, etc.
2) Competitor based (reverse engineering)
3) Research based (Research and development R&D)
1) Concurrent engineering – design and manufacturing are brought together to design
2) Computer-Aided Design (CAD)
3) Production requirements
4) Recycling
5) Remanufacturing
6) Component Commonality
1) Degree of variation in service requirements
2) Degree of customer contact and customer involvement in the delivery system
1) Conceptualize
i. Idea generation
ii. Assessment of customer wants/needs
iii. Assessment of demand potential
2) Identify service package components needed (operations and marketing)
3) Determine performance specifications (operations and marketing)
4) Translate performance specifications into design specifications
5) Translate design specifications into delivery specifications
1) consistent with the organization mission
2) user friendly
3) robust if variability is a factor
4) Easy to sustain
5) Cost-effective
6) Value that is obvious to customers
7) Effective linkages between back of the house and front of the house operations(no contact with customer and direct contact with customers)
8) Have a single theme such as convenience or speed
9) Have design features/checks that will ensure reliable, high quality service
1) Variable requirements – creates need for robust design
2) Service can be difficult to describe
3) Customer contact is much higher
4) Service/Customer encounter.