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15 Chapter Objectives Be able to: • Explain why product design is important to the success of a business. • Describe the six dimensions of product design that are of particular interest to operations and supply chain managers. • Describe the five phases of product and service development and explain the difference between sequential development and concurrent engineering. • Discuss the different roles played by areas such as engineering and accounting during the development process. • Describe some of the most common approaches to improving product and service designs, including the Define-Measure-Analyze-Design-Verify (DMADV) process, quality function deployment (QFD), design for manufacturability (DFM), and target costing. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 15 - 2 15 Product Design and Development Product Design – The characteristics or features of a product or service that determine its ability to meet the needs of the user. Product Development Process– The overall process of strategy, organization, concept generation, product and marketing plan creation and evaluation, and commercialization of a new product. © Product Development and Management Association Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 15 - 3 15 Four Reasons for Developing New Products and Services New products or services can give firms a competitive advantage in the marketplace. New products or services provide benefits to the firm. Companies develop new products or services to exploit existing capabilities. Companies can use new product development to block out competitors. Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 15 - 4 15 Product Design Dimensions Repeatability Testability Serviceability Product volumes Product costs Match between the design and existing capabilities Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 15 - 5 15 Product Design Dimensions Repeatability Consistent production Tolerance to manufacturing variations (robustness) Testability Ease with which critical components or functions can be tested during production Serviceability Ease of repair, service, and evaluation Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall 15 - 6
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