Page 35 - DMGT501_OPERATIONS_MANAGEMENT

Unit 2: Product and Service Design

Objectives Notes

After studying this unit, you will be able to:
Discuss the objectives of designing

Understand legal and environmental issues
Explain Lifecycles
Describe product design and development
Define delayed differentiation
Discuss commonality

Explain the mass customization
Define standardization
Discuss the modular design and service design

Explain design for manufacturability
State differences between manufacturing and service design
Define reliability
Discuss computer-aided design

Introduction

Product decisions often make or break companies. Studies indicate that nearly two out of three
new products fail after launch. In addition, companies in many sectors are under continual
pressure to speed up the pace of product development – even to adapt products that are still in
the pipeline to the demands of a constantly changing marketplace. This unit will discuss product
and service design, which are crucial areas in operations management.

2.1 Objectives of Designing

The objectives of product and service design can be divided into two broad categories:
1. Main Focus:
(a) Customer Satisfaction

(b) Understanding what customer needs
2. Secondary Focus:
(a) Function of product/service
(b) Cost
(c) Profit

(d) Quality
(e) Appearance
(f) Ease of production/Assembly

(g) Ease of maintenance/servicing

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