OM 300 Lecture Notes - Lecture 5: Computer-Aided Design, Quality Function Deployment, Modular Design
9 May 2017
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The first rule of business (cid:498)you have to have products that sell(cid:499: product design is a business issue. Product decision: the objective of the product decision is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage. Product life cycles: may be any length from a few hours to decades, the operations function must be able to introduce new products successfully. Fine tuning may warrant unusual expenses for: research, product development, process modification and enhancement, supplier development, growth phase. Adding or enhancing capacity may be necessary: maturity phase. High volume, innovative production may be needed. Improved cost control, reduction in options, paring down (cutting back) of product line: decline phase. Unless product makes a special contribution to the organization, must plan to terminate offering. New product opportunities: understanding the customer, economic change, sociological and demographic change, technological change, political/legal change, market practice, professional standards, suppliers, distributors.
