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Design of Goods and Services. 10 July. 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.

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Presentation Transcript
introduction
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
Product Strategy and Competitive Advantage
  • Differentiation Strategy
  • Cost-Leader Strategy
  • Response Strategy
where new product opportunities come from
Where New Product Opportunities Come From
  • Economic Change
  • Sociological and Demographic Change
  • Technological Change
  • Political / Legal Change
  • Other Changes
product life cycle
Product Life Cycle

Cost of

Development

& Manufacture

Sales Revenue

Sales, Cost & Profit .

Profit

Cash flow

Loss

Time

Introduction

Growth

Maturity

Decline

life cycle and strategy
Life Cycle and Strategy
  • Strategies change as products move through their life cycle
    • Introduction
    • Growth
    • Maturity
    • Decline
product development stages
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
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
House of Quality

Relationship

Between Things

We Can Do

What We Can Do

What

The

Customer

Wants

Cust Importance

Competitors

organizing for product development
Organizing for Product Development
  • Classic Approach
    • Research and Development
    • Engineering
    • Manufacturing
  • Departments hand product off
organizing for product development12
Organizing for Product Development
  • Product Development Team Approach
  • Team moves product from requirements definition to production
manufacturability
Manufacturability
  • Value Engineering
  • Focuses on pre-production design improvement
  • Reduces costs of production
product design issues
Product Design Issues
  • Robust Design
  • Modular Design
  • Computer Aided Design
  • Value Analysis
  • Environmentally Friendly Design
time based competition
Time-Based Competition
  • Rapidly develop products and move them to market
  • Acquire a Firm
  • Joint Venture
  • Alliance
defining the product
Defining the Product
  • Engineering Drawing
  • Bill of Materials
  • Assembly Drawing
  • Assembly Chart
  • Route Sheet
  • Work Order
  • Engineering Change Notice