Page 65 - DMGT501_OPERATIONS_MANAGEMENT

Unit 2: Product and Service Design

This question requires students to demonstrate an understanding of the competing Notes
requirements of the market and how the market determines the requirements for new
product design. How do you identify such challenges?
Indicative Content
Maruti Udyog built a competitive advantage that it has retained for over 25 years by
creating a product that met consumer requirements and yet could be profitably priced
between the price of a two wheeler and a 4-wheeler. We are now seeing the full circle
taking place; with the introduction of the Swift, Maruti is moving into the higher priced
segment and TELCO is attempting to replace it in the low cost segment.
This fact has to be analyzed in terms of the different options available to TELCO to bring
in a product with the defined characteristics. The students have to develop a product
development plan and focus on issues and problems that this plan may encounter. They
have to suggest remedies to offset the problems and bring the project to fruition.
The role of technology in determining both the nature of challenges could usefully be
mentioned. This could lead to some key activities like research and development and
favourable innovative conditions. Illustration by reference to examples from other
companies with which the students are familiar is important.
17. How do you classify products? What are the factors that provide value to the product?
Explain.
18. Why is the area of product development so important to the future of the company? Can
you categorize industries on the basis of the pressures they feel due to product
development? Explain.
19. What are the steps and stages of product development? Is it possible to reduce the time and
the number of stages and come out with a new product and service? Give details of
procedures and techniques.
20. Differentiate between fixed costs and variable costs and explain how they help in
determining the breakeven point.
21. Explain the following in relation to new product development:
(a) Standardization

(b) Simplification
(c) Speed to Market
(d) Activity Based Costing
(e) Value Engineering
(f) Modular Design

22. How does Design for Manufacturability (DFM) work? How are DFM and Value Engineering
different? Explain with examples.
Work out the design of any simple object of your choice using the principles of DFM?
23. How do product development strategies relate to the other organizational strategies (i.e.,
competitive and functional)? What is the difference between single and multi-business
organizations? Provide examples.
The following is the outline of a debate focusing upon one of the key methods of corporate
development, strategic alliances, and how their use might be affected by an organization's
view of the different approaches to corporate (multi-business level) strategy.

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