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Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,1/7/2013,1-,0,DESIGN OF,PRODUCTS AND,SERVICES,Chapter Three,Copyright 2021 by The McGraw-Hill Companies,Inc.All rights reserved.,McGraw-Hill/Irwin,Learning Objectives,LO31:,Know the issues associated with product design and the typical processes used,by companies,.,LO32:,Illustrate how different criteria can impact the design of a product.,LO33:,Contrast how service products can have different design criteria compared to,manufactured products,.,LO34:,Evaluate the economic impact of a new product on a company.,LO35:,Illustrate how product development is measured in a company.,3-2,The Product Design Process,Companies continuously bring new products to market,Product design is integral to success,Product design differs significantly depending on the industry,Companies often outsource major functions,Contract manufacturer,:an organization capable of manufacturing and/or purchasing all the components needed to produce a finished product,3-,3,Core Competency,Core competency,:the one thing a company can do better than its competitors,A core competency has three characteristics:,It provides potential access to a wide variety of markets,It increases perceived customer benefits,It is hard for competitors to imitate,3-,4,Examples of Successes in Design,3-,5,Sun,Microsystems designs the SPARC chips used in its high-performance,workstations but,subcontracts the fabrication of those chips to specialized chip makers(while,maintaining ownership,of the intellectual property).,A,pharmaceutical company may purchase information on genetic targets from a,genomics company,contract with a specialist in combinatorial chemistry for rapid,synthesis and,screening of candidate compounds,and even utilize a contract research,organization to,conduct clinical trials but retain ownership of the intellectual property(,patents,experimental,data,trademarks,etc.)of the drug that eventually comes to market.,Dell,has developed a set of highly specialized systems that support its,make-to-order operating,strategy.Dell has created a set of proprietary logistical processes that,range from,the design of its web page through its information systems infrastructure(a,process that,has proved,difficult,for others to imitate).Dell owns the data about what,people are,buying and in which combinations.It also has been vertically integrated into,final assembly,facilities that are designed to,efficiently,produce in lot sizes of one.,Finally,while,it outsources components,Dell uses longer-term relationships with its,suppliers and,links them into its information system to support quick response.,Defer judgment,Build on the ideas of others,Stay focused on the topic,One person at a time,Go for quantity,Encourage wild ideas,Be visual,Brainstorming:A General Method for Problem Solving,3-,6,Six Phases of the Generic Development Process(Formal Process),Phase 0:Planning,Phase 1:Concept development,Phase 2:System-level design,Phase 3:Design detail,Phase 4:Testing and refinement,Phase 5:Production ramp-up,3-,7,Phase 0:Planning,Precedes project approval,Begins with corporate strategy,Includes assessment of technology developments and market objectives,Output is the project mission statement,3-,8,Phase 1:Concept Development,Needs of the target market are identified,Alternative product concepts are generated and evaluated,One or more concepts are selected for further development and testing,Concept,:a description of the form,function,and features of a product,3-,9,Phase 2:System-Level Design,Definition of the product architecture,Decomposition of the product into subsystems and components,Final assembly scheme for the production system is usually defined,Output:,Geometric layout of the product,Functional specifications for each subsystem,Preliminary process flow diagram,3-,10,Phase 3:Design Detail,Complete specification of the geometry,materials,and tolerances for all parts,Identification of all the standard parts to be purchased from suppliers,Process plan is established,Tooling is designed,Output:,Drawings describing the geometry of each part and its tooling,Specifications of purchased parts,Process plan,3-,11,Phase 4:Testing and Refinement,Construction and evaluation of multiple preproduction versions of product,Same geometry and material as production version,Not necessarily fabricated with the actual production processes,Prototypes tested to determine if the product will work as designed,3-,12,Phase 5:Production Ramp-Up,Product is made using the intended production system,Need to train workers and resolve any remaining problems,Products may be supplied to preferred customers for evaluation,Transition to ongoing production is gradual,3-,13,The Generic Product Development Process,3-,14,Generic Product Development Process,Technology-push products,:firm begins with new technology and looks for a market,Platform products,:built around a preexisting technologica
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