Page 46 - DMGT501_OPERATIONS_MANAGEMENT

Operations Management

Notes 2.4.6 Product and Process Development
Once the detailed engineering is under way, the detailed product design provides the operations
team the basis for preparing plans for:
1. Materials acquisitions, and
2. Production.
This involves suppliers also. Suppliers are playing an increasingly important role with the
increase in outsourcing.
Operations activities involve:
1. Planning for production and control systems,
2. Computer information systems, and
3. Human resource systems.
Table 2.1: New Product Development Process – Inter-disciplinary Roles

Phases of Development
Functional Embodiment Design Detailed Design Product and Market
Activities Preliminary Definitive Detail Physical Process Introduc-
Design Design Design Evaluation Development tion
Examine Choose Detailed Refine details Develop process Evaluate
technologies; component design of of product charts. Evaluate field
develop systems. product; design; Help and test pilot experience
product ideas; Identify build full- build second- units; solve with
build models suppliers; scale phase problems. product.
Product or conduct build early prototypes prototypes.
Development
simulations. system conduct
prototypes; prototype
define testing.
product
architecture.
Provide Develop Conduct Conduct Prepare for Fill
market-based estimates of customer second-phase market rollout; distribution
inputs- sales and tests of customer train sales force channels;
identify target margins; prototypes; tests; evaluate and field service sell and
customers; conduct participate in prototypes; personnel; promote;
Define buyer early prototype plan prepare order interact
Marketing
value logic; interaction evaluation. marketing entry/process with key
Specify with rollout; system. customers.
attributes; customers. establish
investigate distribution
product plan.
concepts.
Propose and Develop cost Design Test and try Build pilot units Ramp up
investigate estimates; process; out tooling in commercial plan to
process define design and and process; refine volume
concepts. process develop equipment; process based on targets;
architecture; tooling; build second- pilot experience; meet
Manufac- conduct participate in phase train personnel targets for
turing process building full- prototypes; and verify quality,
simulation; scale install supply channel. yield and
validate prototypes. equipment cost.
suppliers. and specify
process
procedures.
Description of Initial Data for cost Updating of Feasibility of Collection
financial financial estimation. investment final plans. of actual
status. analysis, requirements, cost data.
Finance Return on Capital.
Investment,
Payback
period.
Information
Systems Classification; organization and tabulation of information at all levels of product development.
Input to the Assistance in Planning Initiation of
design of prototype for full production.
Suppliers
product and construction. scale
process. production.

40 LOVELY PROFESSIONAL UNIVERSITY