operman 4

Product Design

The process of deciding on the unique characteristics and features of the company's product

Major Factors in Design Strategy

Core strategic focus areas consisting of cost, quality, time-to-market, and customer satisfaction

Product or Service Design Activities

Core operations including translating customer needs into requirements, refining existing offerings, developing new ones, formulating quality/cost goals, building prototypes, and documenting specifications

Product or Service Life Cycle

The stages of demand a product or service passes through over time, including introduction, growth, maturity, saturation, and decline

Standardization

Extent to which there is an absence of variety in a product, service, or process

Reliability

The ability of a product, part, or system to perform its intended function under a prescribed set of conditions

Failure

Situation in which a product, part, or system does not perform as intended

Normal Operating Conditions

The set of conditions under which an item's reliability is specified

Methods for Improving Reliability

Strategies including component design, production/assembly techniques, testing, redundancy/backup, preventive maintenance, user education, and system design

Robust Design

Design that results in products or services that can function over a broad range of conditions

Global Product

A commercial product that is marketed throughout the world under the same brand name

Original Equipment Manufacturer (OEM)

Designs and manufactures a product based on its own specifications and sells to another company for branding and distribution

Original Design Manufacturer (ODM)

Designs and manufactures a product according to purchaser's specifications

Original Brand Manufacturer (OBM)

Sells an entire product that is manufactured by a second company under its own brand

Phases in Product Development Process

The sequential stages of product creation: idea generation, feasibility analysis, product specifications, process specifications, prototype development, design review, market test, product introduction, and follow-up evaluation

Sources of Product Ideas

Internal sources (employees, marketing, R&D) and external sources (customers, competitors, suppliers)

Design for Production (DFP)

Methods that evaluate manufacturing system performance as a function of product design variables to avoid problems or improve profitability

Service Design

A process which specifies what the customer is to experience, including physical, sensual, psychological, and physiological benefits

Service Delivery System

System consisting of facilities, processes, and skills required to execute a service

Explicit Services

The primary or core benefit of a service (e.g., hair styling)

Implicit Services

The secondary or psychological benefits tied to a service, such as courtesy or excitement characteristics