GMS 401 Chapter Notes - Chapter 4: Computer-Aided Design, Modular Design, Technological Change
12 Feb 2018
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Generating new products: since profit must be generated from new products, product selection, definition, and design must take place on a continuing basis. Importance of new products: operations managers and their organizations must be able to accept risk and tolerate failure, they must accommodate a high volume of new product ideas while maintaining the activities to which they are already committed. Product life cycles: there are 4 phases to a product"s life: Introductory phase- firms warrant expenditures for: research, product development, process modification and enhancement, and supplier development. Growth phase- this when the product has begun to stabilize. Adding capacity or enhancing existing capacity to accommodate the increase in product demand may be necessary. Maturity phase- this is when competitors are established and high volume innovative production is done. Improved cost control, reduction in options and a paring down of the product line may be effective. Issues for product design: techniques that are important to product design:
