Chapter Five

Characteristic in the introductory phase of the product life cycle

products are “fine-tuned”

Alternate name for 3D printing

additive manufacturing; builds products by adding material layer upon layer

Alliances

cooperative agreements that allow firms to remain independent but use complementing strengths

Bill of materials

create a list of the hierarchy of components, their description, and the quantity of each required to make one unit of a product

Engineering change notice

correction or modification of an engineering drawing or bill of material

Delayed customization example

operation of a hair salon

Objective of product decision

develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage

Product strategy options

differentiation, low cost, and rapid response

Growth phase of life cycle

products begin to stabilize, adding or enhancing capacity may be necessary

Maturity phase

competitors now established, high-volume innovative production may be needed, improved cost control

Decline phase

management must plan to terminate offering unless product makes a special contribution to the organization

Quality function deployment

determine what will satisfy the customer and translate those customer desires into the target design

QFD House of Quality

what the customer wants, target values, technical evaluation, competitive assessment, relationship matrix, how to satisfy customer wants, and interrelationships

House of Quality Sequence

customer requirements, design characteristics, specific components, production process, and quality plan

Robust design

product is designed so that small variations in production or assembly do not adversely affect the product

Modular design

products designed in easily segmented components; adds flexibility to both production and marketing

Extensions of Computer Aided Design

3D object modeling, design for manufacturing and assembly, through the internet, international data exchange through STEP, and 3D printing

Variations in make-or-buy decisions

quality, cost, delivery schedules

Designing more efficient services

limit the options, delay customizations, modularize, automate, and focus on the moment of truth

Application of decision trees to product design

include all possible alternatives and states of nature, enter payoffs at end of branch, and determine the expected monetary value of each course of action

Make-or-buy decision

choice between producing a component or service and purchasing it from an outside source

Modularize

customization takes the form of changing modules