Design of Goods and Services

Introduction What: Design of goods and services Where: Answer “what should we produce” Why: Produce goods to achieve the mission

Product Strategy and Competitive Advantage Differentiation Strategy Cost-Leader Strategy Response Strategy Product Decision: develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage

Where New Product Opportunities Come From Economic Change Sociological and Demographic Change Technological Change Political / Legal Change Other Changes

Product Life Cycle Profit Loss Introduction Growth Maturity Decline Cost of Development & Manufacture Sales Revenue Sales, Cost & Profit . Profit Cash flow Loss Time Introduction Growth Maturity Decline

Life Cycle and Strategy Strategies change as products move through their life cycle Introduction Growth Maturity Decline

Product By Value Analysis Individual Dollar Contribution Total Annual Dollar Contribution Stampede Pancakes $3 $2.2M Whoop-up Bacon $2.50 $3.4M

Product Development Stages Idea Generation Does Firm Have Ability to Carry Out? Customer Requirements Functional Specification Product Specification Design Review Test Market Introduction Evaluation

Quality Function Deployment Identify customer wants Identify how product will satisfy wants Relate customer wants to product hows Identify relationships between hows Develop importance ratings Evaluate competing products

House of Quality Relationship Between Things We Can Do What We Can Do The Customer Wants Cust Importance Competitors

Organizing for Product Development Classic Approach Research and Development Engineering Manufacturing Departments hand product off

Organizing for Product Development Product Development Team Approach Team moves product from requirements definition to production Concurrent Engineering

Manufacturability Value Engineering Focuses on pre-production design improvement Reduces costs of production

Product Design Issues Robust Design Modular Design Computer Aided Design Value Analysis Green Manufacturing

Time-Based Competition Rapidly develop products and move them to market Acquire a Firm Joint Venture Alliance

Defining the Product Engineering Drawing Bill of Materials Make-or-Buy Decision Assembly Drawing Assembly Chart Route Sheet Work Order Engineering Change Notice