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Chapter 5 - Design - of - Goods - and - Services - Presentation

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23 views12 pages

Chapter 5 - Design - of - Goods - and - Services - Presentation

power point

Uploaded by

Emela Avdiu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Design of Goods and Services

Definition: The product life cycle (PLC) refers


to the stages a product goes through from
introduction to decline.

The product life cycle consists of four main


stages:

Introduction Introduction,

to Product
Life Cycle Growth,

Maturity, and

Decline.
Introduction: Product is
Growth: Sales increase as
launched, with initial
product gains
sales at zero. Marketing
Introduction efforts are high to build
awareness.
acceptance, with
improving profitability.

to Product
Life Cycle Maturity: Sales peak and
stabilize. Competition
Decline: Sales and profits
decline due to market
intensifies, prompting
saturation or changing
price reductions and
consumer preferences
promotions.
• Definition: A product development system is a
structured approach guiding new products from concept
to market.

• Phases:
• 1. Idea Generation: Sources include customers,
Product employees.
• 2. Screening: Evaluates ideas to select viable options.
Development • 3. Concept Development: Details product features and
System •
benefits.
4. Testing: Prototyping and testing with potential
customers.
• 5. Commercialization: Launch to market.

• This structure minimizes risks and aligns product


development with market needs.
House of Quality

• Definition: The House of Quality (HoQ) in Quality Function


Deployment (QFD) translates customer requirements into technical
specs.

• Components:
• 1. Customer Requirements: Expectations from the product.
• 2. Technical Requirements: Specifications the product must meet.
• 3. Relationships Matrix: Links customer and technical requirements.

• This tool ensures cross-departmental communication, meeting


customer expectations.
Time-Based
Competition

Definition: A 1. Streamlined
strategy where Processes:
Strategies:
companies compete Removing
on speed of delivery. unnecessary steps.

3. Enhanced Companies gain a


2. Reduced Lead
Flexibility: Adapting competitive edge by
Times: Faster
to changing quickly responding
product delivery.
demands. to customer needs.
Definitions:

Defining Goods: Tangible products that can


be stored and inventoried.
Goods
and Services: Intangible offerings

Services
produced and consumed
simultaneously.

Goods are physical items; services


are intangible, consumed at delivery.
Understanding these differences
aids operations management.
Production Documents

1. Bill of Materials (BOM):


Key Documents: Lists all components for
production.

3. Work Orders: Directs


2. Routing Sheets: Details
production on items to
production steps.
produce.

These documents ensure


4. Production Schedules:
smooth operations and
Plans resource allocation.
resource management.
Customer Participation in Services

Customer participation 1. Feedback: Insights on 2. Surveys: Structured 3. Focus Groups: In-depth


enhances service design needs and experiences. input on service quality. discussion on potential
and delivery through: services.

Customer engagement
improves service quality
and loyalty.
Decision • Definition: A decision tree visualizes decision-
making with multiple options and outcomes.

Trees in • Benefits:
Product •
•
1. Identifies Options: Outlines choices.
2. Evaluates Outcomes: Shows potential results.
Issues • 3. Facilitates Informed Choices: Data-driven
decisions.

• Decision trees help navigate uncertainty in


product development.
Real-Life Case Study: Apple Inc. - iPhone
Development

• Apple's iPhone development illustrates our concepts.

• 1. Product Life Cycle: iPhone went from introduction (2007), rapid growth, to maturity,
updated to stay competitive.
• 2. Product Development: Apple’s structured approach includes idea generation, testing, and
commercialization.
• 3. House of Quality: Apple uses QFD for customer-driven specifications (e.g., camera quality).
• 4. Time-Based Competition: Apple's rapid innovation keeps it ahead.
• 5. Goods and Services: iPhone (good) with services like iCloud enhance experience.
• 6. Production Documents: BOMs, routing sheets aid in managing Apple's complex supply
chain.
• 7. Customer Participation: Feedback and beta testing guide development.
• 8. Decision Trees: Apple uses decision trees for feature selection, evaluating costs and impact.

• Apple's success shows effective product management drives sustained success.


Conclusion

• In conclusion, designing goods and services is crucial. We've covered key


concepts, from product life cycles to customer participation, providing a
foundation for successful operations management. Thank you for your
attention!

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