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Chapter 4

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Ryerson University
Global Management Studies
GMS 401
Sam Lampropoulos

C HAPTER 4: PRODUCT D ESIGN Product Design Process Product Design Determining the form and function of the product  Products are most often redesigned to invigorate their demand and to take advantage of technology 1. Product Approval Committee top management that oversees / directs the design and development activities. Authorize new products, review phase and allocate resources to ensure consistency between company strategy and design projects 2. Core Team is cross-functional teams empowered to plan and lead projects. Revolve issues, trade-off decisions and directing support staff. Team has max 8 members to ensure efficiency. Limits of authority should be defined  Phase reviews (stage-gates) are milestones during product design/development when progress of the core team is reviewed by product approval committee  Cost of changes multiplies with each phase (changing a sketch is easier than changing a prototype) escalator effect  Core team consists of product manager, product designer and manufacturing/operations rep. Team expands during each phase with marketing, accountants and such. Team-based approach = concurrent engineering 3. Structured Development Process use of project management techniques that involves breaking each phase into steps / activities to determine their precedence relationships, scheduling, execution and control. 1. Idea generation with preliminary assessment (scoping) ideas from customer‟s feedback, research, suppliers and competitors. Market, technical and financial evaluation 2. Building business case: What do customers want? Nature of product and assess technical feasibility. Set objectives / goals (performance, price, quality, launch date) 3. Development of product and process: Translate customer wants into product specifications like size, features. Concepts are developed and prototypes built. Determine the machines and equipment, plant layout and work center designs 4. Testing and validation: Perform external testing and begin trial runs 5. Launch. Sources of Ideas for New or Redesigned Products Front-line employee‟s feedback could improve the designed products as they have seen the problems in manufacturing/assembly operations or service delivery system first hand. Customer service and marketing/sales employees are aware of problems within the product from direct feedback from customers Customers can submit suggestions for improvements through surveys or focus groups CHAPTER 4: PRODUCT DESIGN Supplier of materials and parts/components and their contact within the organization can be full of information. Reverse Engineering involves dismantling a competitor‟s product to discover what it is composed of and how the components work, searching for own-product improvements  Can enable a company to „leapfrog‟ the competition by developing an even better product Research and Development (R&D) Lab scientists and engineers involved in creative work on systematic basis to increase knowledge directed toward product and process innovation  Costs are usually very high. R&D contributes to a company by developing the prototypes, testing the prototypes in engineering labs and improving product‟s reliability Key Issues in Product Design Life Cycle 1. Incubation During first introduction, demand might be low because potential buyers are not familiar with the product. Recognize the bugs might not have been worked out and the price might drop. Low volumes are produced 2. Growth Design improvements create reliable / less costly products. Demand grows due to increased awareness of product. High production volume involve automated production methods and contribute to lower costs 3. Maturity There are few, if any, design changes and demand levels off 4. Saturation leads to a decline in demand 5. Decline Attempt to prolong the useful life of a product by improving its reliability, reducing costs an introducing new substitute products C HAPTER 4: PRODUCT D ESIGN Standardization extent to which there is absence of variety in a part or product, made in large quantities of identical items. Every customer gets the same service or produce  Reducing variety they save time and money while increasing quality and reliability in their products  Reduces time training employees  Disadvantages: limited range of customers of who the p
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