CHAPTER OBJECTIVES © SOUTH-WESTERN EDUCATIONAL PUBLISHING PRODUCT PLANNING AND PRODUCTION MANAGEMENT nDiscuss the steps in new product development. nDiscuss.

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Presentation transcript:

CHAPTER OBJECTIVES © SOUTH-WESTERN EDUCATIONAL PUBLISHING PRODUCT PLANNING AND PRODUCTION MANAGEMENT nDiscuss the steps in new product development. nDiscuss the differences among manufacturing processes. nDescribe several important considerations in locating a manufacturing business and organizing the production process. nDescribe the ways businesses maintain product and service quality. nIdentify the characteristics of services that make them different from products and the challenges service businesses face in meeting customer needs. 2020

© SOUTH-WESTERN EDUCATIONAL PUBLISHING STEPS IN DEVELOPING NEW PRODUCTS nDevelop an idea for a new product that consumers want to buy. nTurn the idea into a workable product design. nBe able to produce the product and make it available to consumers at a price they are willing to pay.

© SOUTH-WESTERN EDUCATIONAL PUBLISHING DEVELOPING NEW PRODUCTS nCreating product ideas nConsumer research nProduct research nDesigning new products nProducing the product nMass production nContinuous processing nRepetitive production nIntermittent processing nCustom manufacturing

© SOUTH-WESTERN EDUCATIONAL PUBLISHING PLANNING A MANUFACTURING BUSINESS nLocating the business nAvailability of raw materials nTransportation methods nSupply and cost of energy and water nLand and building costs nLabor supply nLocation of customers nEconomic and legal factors

© SOUTH-WESTERN EDUCATIONAL PUBLISHING PLANNING A MANUFACTURING BUSINESS nProduction planning nBuilding layout nImproving production process

© SOUTH-WESTERN EDUCATIONAL PUBLISHING SERVICE BUSINESSES nNature of services nForm nAvailability nQuality nTiming nOperating a service business nChanges in service businesses

© SOUTH-WESTERN EDUCATIONAL PUBLISHING DIFFERENCES BETWEEN PRODUCTS AND SERVICES Products nTangible nAvailable whenever the purchaser wants them nQuality depends on manufacturing process but should not vary significantly among batches nCan be stored Services nIntangible nAvailable only from the person providing them nQuality depends on the skill of the provider and may vary from provider to provider nCannot be stored