STUDY OUTLINE FOR CHAPTER 4
PRODUCT and SERVICE DESIGN

1. Why is product or service design strategically important?

For the success and prosperity of an organization. It has an impact on future activities. Consequently decisions in this area 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. (marketing, operations)

2) Develop new products and services. (marketing)

3) Formulate cost targets (accounting, finance, operations)

4) Document specifications

3. Give a few examples for each of these major reasons for design or redesign:

Economic-
14. Explain how global product design can be useful, and some cautions.

Having virtual teams in different countries can provide a range of comparative advantages over traditional teams such as engaging the best human resources from around the world without the need to assemble them all in one place, and operating on a 24-hour basis, thereby decreasing the time-to-market. It also allows for customer needs assessment to be done in more than one country with local resources, opportunities, and constraints to be taken into account. It can provide design outcomes that increase the marketability and utility of a product. The diversity of international team may yield different points of view and ideas and information enrich the design process.

Cautions: Care must be taken in managing the diversity, because if it is mismanaged, that can lead to conflict and miscommunications.

15. What are the main phases in design and development?

1) Feasibility analysis- entails market analysis (demand), economic analysis (development cost and production cost, profit potential), and technical analysis (capacity requirements and availability, and skills needed). Also, it is necessary to answer the question, Does it fit with the mission? It requires collaboration among marketing, finance, accounting, engineering, and operations.

2) Product specification-