...SUMMARY OF THEORETICAL READINGS CHAPTER 5: Design of Goods and Services BUS 502: Design of Goods and Service Many companies create variety of efficient and competitive ideas about their products and services to meet changing customers demand or target specific customer niches. Companies quickly design and create new innovations or new models to appeal to a variety of market niches. They also use new strategies and production techniques to make their product and service more competitive and satisfying to the customers. Product strategy defines the distance or length of the product line and links product decisions to investment and cash flow, market share and dynamics, product life cycle, and the organizations capabilities. GOODS AND SERVICES SELECTION Most companies concentrate or focus in selection of goods and services or product decision. They focus on creating a competitive advantage thru by differentiation in which companies’ can offer unique and high quality products, lower cost than their competitors, and rapid response to customers demand about executing rapid design and product development. Most of the companies give more attention or focus on product life cycle and strategy. Strategies change as product move through their life cycle. Product strategy involves selecting the best strategy for each product based on its position in the life cycle while product life cycle can be divided into four phases. In the introductory phase, product expenses are mostly high...
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...Design of goods and services at nestle As consumers become increasingly demanding of more social and environmental sustainability efforts from their favorite brands, Nestlé is one multinational that is responding in kind. The challenges for the world’s largest food company, however, are as complicated as the company’s long and tangled supply chain. Nestle is turning to lifecycle assessments, the latest in eco-design software and more sustainable innovations across the company’s operations and supply chain. From agriculture to packaging, Nestlé now competes with other leading consumer goods companies such as Unilever and P&G that are mitigating their impact on the environment and society while still providing value to consumers. Now Nestlé is in the midst of a massive reset as it reevaluates everything from its energy portfolio to the impact of water scarcity on its suppliers across the globe. Ecodex Nestlé’s sustainability and product development teams start with software programs such as Ecodex, which allows users to evaluate products’ impacts based on a variety of hypothetical criteria. By simulating changes in a design, recipe or manufacturing process, or even geographic shifts in sourcing, a Nestlé employee can view that proposed redesigned product’s ramifications on climate change, energy consumption, land use and effects on local water supplies and waste streams. The tool uses information specific to the food and beverage industry to provide rapid and accurate...
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...OM CHAPTER 7 PROCESS SELECTION, DESIGN, AND ANALYSIS DAVID A. COLLIER AND JAMES R. EVANS OM, Ch. 7 Process Selection, Design, and Analysis ©2009 South-Western, a part of Cengage Learning 1 Chapter 7 Learning Outcomes learning outcomes LO1 Describe the four types of processes used to produce goods and services. LO2 Explain the logic and use of the product-process matrix. LO3 Explain the logic and use of the service-positioning matrix. LO4 Describe how to apply process and value stream mapping for process design. process maps. LO5 Explain how to improve process designs and analyze LO6 Describe how to compute resource utilization and apply Little’s Law. OM, Ch. 7 Process Selection, Design, and Analysis ©2009 South-Western, a part of Cengage Learning 22 Chapter 7 Process Selection, Design, and Analysis called to make an airline flight reservation just an hour ago. The telephone rang five times before a recorded voice answered. “Thank you for calling ABC Travel Services,” it said. “To ensure the highest level of customer service, this call may be recorded for future analysis.” Next, I was asked to select from one of the following three choices: “If the trip is related to company business, press 1. Personal business, press 2. Group travel, press 3.” I pressed 1. I was then asked to select from the following four choices: “If this is a trip within the United States, press 1. International, press 2. Scheduled training, press 3. Related...
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...Process Design Matrix Delayne Santana University of Phoenix OPS/571 September, 19 2013 Prof: Jorge Melendez Mendez Process Design Matrix We start by defining a process for developing common manufactured goods that describes the essential steps necessary to design a product. These methods represent the basic sequence of steps or activities that a company uses to imagine, design, and launch a new product to the market. Many of these tasks involve more intellectual than physical activities. Some companies define and follow a precise and detailed process of development, while others may not even be able to describe its processes. According, (Chase & Jacobs) Each company uses a process that is different from any other association; in fact, the same organization can follow different process for different product groups or different markets to launch any product. So, is a process that can be pointed out as a compilation of equipment, method, public and systems that are used jointly to create certain goods and services. It is a plan of process inside the approach of an association that turns resources into goods and services. The purpose of this strategy of process is to design a process that meets client supplies and the details of the product within cost and other administrative restrictions. Note that the selected process will have a long-term effect on the competence and flexibility of production as well...
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...1. Define the production process (called Operations Assessment in Stage 2 of Stagegate model for product design) Determine how completed the input materials should be. These are make-or-buy decisions. Set production process objectives: − Capacity (or production speed), flexibility − Type of process (job shop, batch, assembly, continuous) − Cost (fixed, variable), process quality capability − Technology/extent of automation, production start date Determine the nature of process in general. 2. Production process development (in Stage 3 of Stage-gate model) 2.1 Conceptualize the design This answers the question: How do you get from inputs (materials) to output? That is, what is the sequence of major operations (activities) needed? * Develop a few alternative process concepts (sketches). Two approaches can be used: − Incremental: do one step at a time from start to end. − Hierarchical (top down): break the whole job into two operations, then divide each into sub-operations, etc., until the desired level of detail is reached. * Usually a process flow diagram is used to show the operations and the movement of materials through the operations. * Evaluate each alternative process concept. 2.2 Make an embodiment of the design * Choose one process concept and complete the design. * Build a prototype process (can use computer modelling) and test it. − Determine the resources (machines, equipment, and labour) needed, in general. − Estimate the costs...
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...data synchronization is another important part of standardizing data and removing friction from business transactions. There are huge benefits for both manufacturers and retailers if they are sharing the same product data. Companies in the retail and consumer products goods industries continue to work towards synchronizing data through net and other industry bodies. THE IMPORTANCE OF STANDARDIZATION In consulting to various clients I've been watching some shortcomings, which are not related to software or hardware, but the lack of and standardization: Processes, Service Instructions, and Trainings. The consequences of this are usually the loss of efficiency, higher operating costs, and the difficulty in developing a corporate image more homogeneous, which could be observed by their customers as a factor that differentiates the company from their competitors. It is recommended that all people of all levels of the organization are trained to meet the organization's commitment to provide products according to the quality required by a changing market, where requirements and customer expectations are increasing continuously. However it will be effective only if your company already has their Processes, Service Instructions, and Trainings, standardized, documented and easily accessible to everyone. This, therefore, will be the beginning of a process of continuous improvement towards Total Quality, exceeding expectations of your customers....
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...Regal uses CAD computer aided design; Regal uses JIT inventory to deliver parts as needed. GOODS & SERVICES SELECTION: The good or service provided is basis for an organization’s existence and the key to success; To maximize success, companies focus and concentrate on few products; Companies must look constantly for new products to design; Product Decision- to develop, implement a product strategy that meets the demands of the marketplace with a competitive advantage; Product strategy is 1 of 10 decisions of OM and focuses on developing a competitive advantage thru differentiation, low cost, rapid response, or combination of these. PRODUCT STRATEGY OPTIONS: Product Selection- the choosing of good or service to provide customers or clients; Differentiation- by offering a distinctly unique and high quality product; Taco Bell- has developed a low cost and high value product line; Toyota- a rapid response to changing customer demand; PRODUCT LIFE CYCLES: Intro Phase- the product is being fine-tuned for market, negative cash flow due to research, product development, process modification, and supplier development; Growth Phase- product design is stabilizing, requires effective forecasting of capacity requirements; Maturity Phase- high sales revenue, competitors are established, improved cost control, reduction in options of product line necessary for profitability and market share; Decline Phase- Sales and profits decreasing, can invest to bring good products up, otherwise terminate;...
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...provides detailed information on the shoppers’ behavior with a major emphasis on Britomart stores. The paper will relate different aspects of the Britomart stores from designs, merchandise, service, and other physical attributes which influence customer shopping behavior. Customer shopping behavior is a long process which starts from the point the customers chooses to shop to the moment they acquire the goods and services. For instance, customer service in retailing profoundly influences the shoppers’ behavior. Customer service can be the differentiation between similar offerings and incompetent customer service can kill a relationship. In this understanding, exceptional customer service can save a relationship and establish a long term profitable one. The following section will provide a detailed explanation and description of Britomart stores, which the paper majorly has focused. Description-Britomart Stores Shopping at Britomart stores offers the customer a wide range of products and services in the fashion industry. Britomart store is a large shopping ground, which allows their customers to move around freely and explore the items displayed in the different sections of the business. Britomart stores are neither malls nor a high street but an attractive precinct of streets, lanes, and open spaces. This design of the...
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...Design of Goods and Services Product strategy and the design of goods and services are very important in the success of a firm or business. Some companies see these factors as the basis for success of an organization. Some firms choose to focus on only a few products within their organization in order to maximize success. With a limited number of products to focus on, it gives firms the opportunity to better these products. Product life cycles and strategies are studied and implemented to achieve a competitive advantage. The product life cycle includes the introductory phase (research, product development, process modification and enhancement), the growth phase (effective forecasting of capacity requirements), the maturity phase (competitors are established, reduction in options, improved cost control), and the decline phase (dying products are rid of unless they are still contributing to the firm). (Heizer, Render 2011). In order for strategies to be successful the life cycle of products must be studied, and adjusted over time. In order to maximize success with product, and service design it is important to understand the different variables that go into them, and make them work. Variables such as: value analysis, aesthetics, generation of new products, service design, and even joint ventures are just a few of the many variables that determine the success of goods and services. The articles examined explain the effects of these subjects in various markets. Value analysis...
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... Operations Management adds value to the goods and services available to us. It is a process in which inputs are transformed into outputs. Specific measures should be taken in order to produce goods and services with the highest value; these measures are classified as the 10 Strategic Decisions of Operations Management. The 10 Strategic Decisions consist of the following: Design of goods and services, managing quality, process and capacity design, location strategy, layout strategy, human resources and job design, supply-chain management, inventory management, scheduling, and maintenance. In which, all of these decisions or steps are essential in creating goods and services with the best quality. Various companies have adopted this practice, and continue to apply it in all of their production processes. The multinational company, Frito Lay is an example of one of the many companies benefiting from implementing the 10 Strategic Decision. It is clearly seen in Frito Lay’s line of production that the value of their potato and corn chips are of the best quality. Frito Lay’s various chip brands are available all over the world. The design of goods and services are precise and are appropriate for the task at hand. Their managing quality is up-to-date and ensures consumer satisfaction as well, by conducting quality control on their raw materials through systematic inventory and controlled supply-chain. The process and capacity design, as well as the layout strategy of the factory...
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...STUDY OUTLINE FOR CHAPTER 4 PRODUCT AND SERVICE DESIGN 1. Why is product or service design strategically important? Product and service design has typically had strategic implications for the success and prosperity of an organization. Furthermore, it has an impact on future activities. Consequently decisions in this area are some of the most fundamental that managers must make. 2. List some of the things that product and service design does. 1)Translates customer wants and needs into product and service requirements. 2)Refine existing products and services. 3)Develops new products and/or services 4)Formulates quality goals, and cost targets. 3. Give a few examples for each of these major reasons for design or redesign: Economic -low demand, excessive warranty claims, the need to reduce costs. social and demographic -Aging baby boomers, population shifts. political, liability, legal -Government changes, safety issues, new regulations. Competitive -New or changes products or services, new advertising/promotions cost or availability -Raw materials, components, labor, water, energy Technological -Product components, processes 4. What are the key questions of product and service design? 1)Is there demand for it? What is the potential size of the market, and what is the expected demand profile? 2)Can we do it? Do we have the necessary knowledge, skills, equipment, capacity, and supply chain...
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...the overall business should still be profitable. One aspect of cost leadership arises from a business creating economies of scale. Economies of scale refers to cost advantages that can be created as a result of an increase in scale of business operations. Typically the cost savings come from being able to purchase lower cost per unit and from efficiencies created through improved use of technology and machinery. Goods/services differentiation is a key strategy applied by operations managers. Product differentiation means distinguishing products in some way from its competitors. Ways a product could be differentiated include: varying the actual product features, varying product quality, varying any improved features, varying the amount of time spent on a service, varying level of expertise brought to a service, varying qualifications and experience of the service provider and varying the quality of materials/ technology used in service delivery. For both goods and services, differentiation can be created from cross branding or strategic alliances. Goods and/or services in different industries Operations...
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...PRODUCT DESIGN Have you ever been with a group of friends and decided to order pizzas? One person wants pizza from Pizza Hut because he likes the taste of stuffed-crust pizza made with cheese in the crust. Someone else wants Gracias pizza because she likes the unique crispy-thin crust. A third wants pizza from Smokey’s because of the wood grilled oven taste. Even a simple product like a pizza can have different features unique to its producer. Different customers have different tastes, preferences, and product needs. The variety of product designs on the market appeal to the preferences of a particular customer group. Also, the different product designs have different processing requirements. This is what product design and process selection are all about. We can all relate to the product design of a pizza just from everyday life. Now consider the complexities involved in designing more sophisticated products. For example, Palm,Inc. (www.palm.com) is a leading provider of handheld computers whose slogan is “different people, different needs, different handhelds.” The company designs different products with differing capabilities, such as personal information management, wireless Internet access, and games, intended for different types of customers. The company also has to decide on the best process to produce the different types of handhelds. The challenge of product design can also be illustrated by an example of the Alza Corporation. Alza is a leader in designing new ways...
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...Process Design Matrix Summary OPS 571 Process Design Matrix Summary Process design is a method by which a business understands and defines the operation activities that enable the company to function. A Process design was concerned with developing operation processes to ensure that the company resources are used effectively, efficiently and meet customer requirement and satisfaction. Process designs also used to sustain, support organizational development and growth. Process design involves a different area of the company such as production, delivery of service and product and inventory. In this executive summary, I will discuss the appropriate design process for a product and service. I will use pizza home delivery service as an example for service and pizza as an example for product design process. Service Design Process The service process design I am familiar with is pizza home delivery service. It uses all the service design such as self-service, production line approach, and personal attention approach design. The production line approach is commonly used in food service industry. The production line approach the company has control over the process to ensure efficiency and effectivity of the product (Jacobs & Chase, 2011). In pizza home delivery service, the company needs to make sure that within thirty minutes the pizza can be delivered. The production line approach is used so that the company has a step by step process that the employee needs to follow...
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...Management February 16, 2012 * Discuss what makes a good design and how to measure design quality. * Describe the basic aspects of statistical process control * Explain what design quality refers to and discuss some of the tools and techniques for improving the design process Any design has a large impact on the quality of a service or product. Any product that is poorly designed may not meet customer needs or may be so difficult to make that the quality of the product is not very good. Designs that are costly can result in over priced products that lost market share. If a design process takes too long, a competitor can end up capturing the market by being the first to introduce the new products, services, or features. However, entering into the market prematurely can result in poor performance. Design may be an art, but any design process must be managed effectively (Russell and Taylor, 2011, P. 158). There are few processes that create an effective design. The first is to make sure the design matches product or service characteristics with customer requirements. Next, to make sure that the design ensures that customer requirements are met in the simplest and least costly manner. Thirdly, make sure that the design reduces the time required to design a new product or service. Finally, the design should minimize the revisions necessary to make a design workable (Russell and Taylor, 2011, P. 158). When beginning the design process, the designers must make sure that they...
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