goods & services design

8/19/2019 Goods & Services Design

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5 - 1© 2014 Pearson Education

Goods & ServicesDesign

PowerPoint presentation to accompany

Heizer and Render

Operations Management, Global Edition, Elevent EditionPrinciples o! Operations Management, Global Edition, "int Edition

PowerPoint slides by #e!! Heyl

22

© 2014 Pearson Education


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$earning Ob%ectives

' De!ine product life cycle

(' )*ild a house of quality

+' Eplain how time-based competition isimplemented by O

-' Eplain how the customer participates inthe desi!n and deli"ery of ser"ices


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► Or!ani$ations e%ist to pro"ide !oods orser"ices to society

► &reat products are the 'ey to success

► (op or!ani$ations typically focus on coreproducts

► )ustomers buy satisfaction* not +ust a

physical !ood or particular ser"ice► ,undamental to an or!ani$ations

strate!y with implications throu!hout theoperations function

Goods and Services Selection

http.//fortunecom/fortune500/wal-mart-stores-inc-1/

http://fortune.com/fortune500/wal-mart-stores-inc-1/http://fortune.com/fortune500/wal-mart-stores-inc-1/


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► &oods or ser"ices arethe basis for anor!ani$ationse%istence

► imited and predicablelife cycles requiresconstantly loo'in! for*desi!nin!* and

de"elopin! newproducts

► ew products !eneratesubstantial re"enue

Goods and Services Selection

(he hi!her thepercenta!e of salesfrom the last 5 years*the more li'ely the firmis to be a leader

503

403

#03

203

103

03

ndustryleader

(opthird

iddlethird

6ottomthird

Position o! !irm in its ind*stry

P e r c e n t o ! s a l e s ! r o m

n e w

p r o d * c

t s


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(he ob+ecti"e of the product decision：

Develop and implement a prod*ct strategy that meets the demands o! te mar.etplace with a competitive advantage

Prod*ct Decision

Prod*ct Strategy Options S*pport /ompetitive

0dvantage

► 7ifferentiation► ow cost► 8apid response.

fle%ibility* reliability* quic'ness


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Prod*ct $i!e /ycle

e!ati"ecash flow

ntroduction &rowth aturity 7ecline

: a l e s * c o s t * a n d

c a s h f l o w

)ost of de"elopment and production

)ashflow

et re"enue ;profit<

:ales re"enue

oss

,i!ure 52

► ay be any len!th from a few days to decades► (he operations function must be able to introduce new products successfully


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$i!e /ycle and Strategy

1ntrod*ctory Pase► ,ine tunin! may

warrant unusuale%penses for

1 8esearch

2 Productde"elopment

# Processmodification andenhancement

4 :upplierde"elopment

Growt Pase► Product desi!n be!ins

to stabili$e

► Effecti"e forecastin! of

capacity becomesnecessary

► >ddin!/ enhancin!capacity may be

necessary

to accommodate theincrease in productdemand


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Mat*rity Pase► )ompetitors now

established

► @i!h "olume* inno"ati"e

production may beneeded

► mpro"ed cost control*reduction in options*

parin! down of productline

for profitability and mar'et share

$i!e /ycle and Strategy

Decline Pase► Anless product

ma'es a specialcontribution to theor!ani$ation/ canbe sold withunusually hi!hcontribution

Production should beterminated


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Prod*ct2by23al*e 0nalysis

► ists products in descending order of theirindi"idual dollar contribution to the firm

► ists the total annual dollar contribution ofthe product

CClow contribution on a per-unit basis by a product may loo'substantially different if it represent a lar!e portion of thecompanyDs sales

► @elps mana!ement e"aluate alternati"e

strate!ies ;increase cash flow* mar'etin!penetration or reducin! cost<


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Generating "ew Prod*cts

1 Anderstandin! the customer

2 Economic chan!e

# :ociolo!ical and demo!raphicchan!e

4 (echnolo!ical chan!e

5 Political and le!al chan!e

9 )han!er brou!ht about throu!hmar'et practice* professionalstandards* suppliers* distributors


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45D Ho*se o! 4*ality

8elationshipmatri%

(echnicale"aluation

(ar!et "alues

Ghat thecustomer

wants

)ustomerimportance

ratin!s

Our importance ratin!s

Gei!htedratin!


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Ho*se o! 4*ality Eample

Hour team has been char!ed withdesi!nin! a new camera for &reat

)ameras* nc(he first action is to construct a@ouse of Iuality


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o w e l e c t r i c i t y r e q u i r e m e n t s

> l u m i n u m c o

m p o n e n t s

> u t o f o c u s

> u t o e % p o s u r e

@ i ! h n u m b e r

o f p i % e l s

E r ! o n o m i c d

e s i ! n

@ow to :atisfy

)ustomer Gants6at te

/*stomer 6ants

Relationsip

Matri

7ecnical

0ttrib*tes and

Eval*ation

How to Satis!y

/*stomer 6ants

1nterrelationsips

0 n a l y s i s o !

/ o m

p e t i t o r s


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)ustomer importance

ratin!;5 J hi!hest<

i!htwei!ht #

Easy to use 4

8eliable 5Easy to hold steady 2

@i!h resolution 1

Ghat thecustomer wants

6at te

/*stomer

6ants

Relationsip

Matri

7ecnical

0ttrib*tes and

Eval*ation

How to Satis!y

/*stomer 6ants

1nterrelationsips

0 n a l y s i s o !

/ o m p e t i t o r s


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i!htwei!ht #

Easy to use 4

8eliable 5

Easy to hold steady 2

@i!h resolution 1


@i!h relationship

edium relationship

ow relationship

8elationship matri%

6at te

/*stomer

6ants

Relationsip

Matri

7ecnical

0ttrib*tes and

Eval*ation

How to Satis!y

/*stomer 6ants

1nterrelationsips

0 n a l y s i s o !


@ow well what we do meets the customerDs want


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Gei!hted ratin!

i!htwei!ht #

Easy to use 4

8eliable 5


@i!h resolution 1

Our importance ratin!s 22 B 2= 2= #2 25

@i!h relationship J 5

edium relationship J #

ow relationship J 1

6at te

/*stomer

6ants

Relationsip

Matri

7ecnical

0ttrib*tes and

Eval*ation

How to Satis!y

/*stomer 6ants

1nterrelationsips

0 n a l y s i s o !



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)

o m p a n y >

)

o m p a n y 6

& P

& P

, &

& P

P P

i!htwei!ht #

Easy to use 4

8eliable 5


@i!h resolution 1

Our importance ratin!s 22 5

@ow well do competin! products meet

customer wants&J!ood * ,Jfair * PJpoor

6at te

/*stomer 6ants

Relationsip

Matri

7ecnical

0ttrib*tes and

Eval*ation

How to Satis!y

/*stomer 6ants

1nterrelationsips

0

n a l y s i s o !

/ o

m p e t i t o r s


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(ar!et "alues;(echnicalattributes<

(echnicale"aluation

)ompany > 0= 903 yes 1 o' &

)ompany 6 09 503 yes 2 o' ,

As 05 =53 yes 2 o' &

2 c i r c u i t s

, a i l u r e 1 p e r 1 0 * 0

0 0

P a n e l r a n ' i n

!

0 5

>

= 5 3

2 D t o K

6at te

/*stomer

6ants

Relationsip

Matri

7ecnical

0ttrib*tes and

Eval*ation

How to Satis!y

/*stomer 6ants

1nterrelationsips

0 n

a l y s i s o !

/ o

m p e t i t o r s


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)ompleted

@ouse of Iuality

o w e l e c t r i c i t y r e q u

i r e m e n t s

> l u m i n u m c

o m p o n e n t s

> u t o f o c u s

> u t o e % p o s u r e

@ i ! h n u m b e r o f p i %

e l s

E r ! o n o m i c d e s i ! n

) o m p a n y >

) o m p a n y 6

i!htwei!ht #

Easy to use 4

8eliable 5


@i!h resolution 1

Our importance ratin!s

& P

& P

, &

& P

P P

(ar!et "alues;(echnicalattributes<

(echnical

e"aluation

)ompany > 0= 903 yes 1 o' &

)ompany 6 09 503 yes 2 o' ,

As 05 =53 yes 2 o' &

0 5

>

= 5 3

2 D t o K

2 c i r c u i t s

, a i l u r e 1 p e r 1 0 *

0 0 0

P a n e l r a n ' i n !

22 B 2= 2= #2 25


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Ho*se o! 4*ality Se8*ence

,i!ure 54

7eployin! resources throu!h the or!ani$ation inresponse to customer requirements:how how quality effort will be deployed

satisfied by satisfied by satisfied by

7esi!n

characteristics

Iuality

plan

Production

process

:pecific

component


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Organizing !or Prod*ct Development

► (raditionally with distinct departments► ,i%ed duties and responsibilities are defined► 7ifficult to foster forward thin'in!

► > )hampion► Product mana!er dri"es the product throu!h the product

de"elopment system and related or!ani$ations

► (eam approach► )ross functional representati"es from all disciplines or

functions► 1 product de"elopment teams

2 desi!n for manufacturability teams

# "alue en!ineerin! teams► Lapanese Mwhole or!ani$ationN approach► o or!ani$ational di"isions ;not subdi"idin! or!ani$ation into different

departments<

►8F7research►

En!ineerD!

desi!n►nfctr en!nrD!►Productionproduce

;concurrent en!ineerin!

speedier product de"elopment<


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Prod*ct Development /ontin**m

► Product life cycles are becomin! shorter and therate of technolo!ical chan!e is increasin!

► 7e"elopin! new products faster can result in a

competitive advantage► 7ime2)ased /ompetition9

► competition based on time

► rapidly de"elopin! products and mo"in! them to

mar'et

►;so do theris' F e%pense<


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Prod*ct Development :PD; /ontin**m

1nternal Cost of PD Sared

$engty Speed of PD Rapid andlliances

Loint "entures

P*rcase technolo!y or e%pertiseby acquirin! the de"eloper

Internal Development Strategies

i!rations of eisting products

Enhancements to eisting products

ew internally de"eloped products

Size,color,features

Fitting issue:tech.,culture vs mission


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Prod*ct Development /ontin**m► 0lliances

Ased when new product are central to mission* butreso*rces are ac8*ired and si$able ris. is present )ooperati"e a!reements between independent or!ani$ations Aseful when technolo!y is de"elopin! 8educes ris's

► #oint 3ent*res 6oth or!ani$ations learn 8is's are shared; +oint ownership< E%ploitin! specific product opportunities that may not be

central to the firmDs mission► P*rcasing tecnology by ac8*iring a !irm

:peeds de"elopment ssues concern the fit between the acquired or!ani$ation and

product and the host

;"alue between the acquired or! and purchased or!<


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Service Design

► :er"ice typically includes direct interaction withthe customer

► Process-chain-networ' ;P)< analysisfocuses on the ways in which processes can bedesi!ned to optimize interaction betweenfirms and their customers


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Process2/ain2"etwor. :P/"; 0nalysis

▶ Direct interaction region includes process steps that

in"ol"e interaction between participants

▶ (he s*rrogate :s*bstit*te; interaction region includesprocess steps in which one participant is acting on anotherparticipantDs resources

▶ (he independent processing region includes steps inwhich the supplier and/or the customer is acting on resourceswhere each has maximum control

▶ >ll three re!ions ha"e similar operatin! issues but theappropriate way of handlin! the issues differs across re!ions

▶ :er"ice operations e%ist only within the area of direct andsurrogate interaction

▶ P) analysis pro"ides insi!ht to aid in positioning anddesigning processes that can achie"e strategic objectives


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0dding Service E!!iciency:er"ice producti"ity is notoriously low partially because of customer

in"ol"ement in the design or delivery of the ser"ice* or both (hiscomplicates the product desi!n challen!e

Gays to increase ser"ice efficiency

▶oment of truth. )ritical moments between the customer and theor!ani$ation that determine customer satisfaction

▶ Crucial relationship between the customer and the organization

▶imit the options▶ Pro"ide options to reduce ambiguity ▶ mpro"es efficiency and ability to meet customer e%pectations

▶7elay customi$ation ;hair salon* restaurant operate<

▶odulari$ation▶ Eases customi$ation of a ser"ice

▶ >utomation▶ 8educes cost* increases customer ser"ice

;tic'etless ser"ice "ia 'ios's*chec'-cashin! acti"ity "ia >(

goods & services design

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