GMS 401 Chapter 4: GMS401 - Chapter 4 Textbook Notes
13 Feb 2017
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The screening process extends to the operations function. Optimum product development depends not only on support from other parts of the firm but also on the successful integration of all 10 of the om decisions, from product design to maintenance. Other changes may be brought through market practice, professional standards, suppliers, and distributors. Operations managers must be aware of these dynamics and be able to anticipate changes in product opportunities, the products themselves, product volume, and product mix: the importance of new products cannot be overestimated. Leading companies generate a substantial portion of their sales from products less than 5 years old. Companies need to be careful when introducing new products. Many new products do not succeed in the marketplace. Product selection, definition, and design occur frequently - perhaps hundreds of times for each financially successful product. Operations managers and their organizations must be able to accept risk and tolerate failure.
