Exam
Concept Development - ✔✔concerned with idea generation and the evaluation of alternative ideas for
the new product. During this phase, several product concepts usually are generated and evaluated. The
physical product is not designed during concept development; rather, different approaches to defining
and meeting market needs are considered and the best approach is selected by the company
Product Design - ✔✔concerned with designing the physical new product. At the beginning, the firm has
a general idea of what the new product will be but not too many specifics. At the end of the product
design phase, the firm has a set of product specifications and digital images (or engineering drawings)
specified in sufficient detail that production prototypes can be built and tested
*many different trade-offs considered
Process Design - ✔✔consists of planning the resources, tasks, and training needed for manufacturing
the new product (should be taking place simultaneously with product design). Manufacturing should not
wait for the final design to be completed before process design begins.
Marketing Misalignment - ✔✔product does not meet marketing needs resulting in lower sales and the
product may need to be redesigned or eliminated
Technology Misalignment - ✔✔occurs when the product designed by engineering cannot be made by
operations
Concurrent Engineering - ✔✔bringing engineering design and manufacturing personnel together early in
the design phase
Collaboration - ✔✔collaboration with customers means tapping into their knowledge and expertise to
design products they are willing to buy
Criteria for a Supplier to be considered a potential collaborator - ✔✔- Technical expertise: Does the
supplier have technical expertise that the company does not have?
- Capability: Can the supplier meet targets for cost, quality, and product performance?
,- Capacity: Can the supplier meet the product development schedule and the ramp-up to production?
- Low risk: what is the risk that the supplier will not perform as expected?
Quality Function Deployment (QFD) - ✔✔A facilitated workshop technique that helps to determine
critical characteristics for new product development.
- tool for linking customer requirement to technical product specifications
House of Quality - ✔✔a matrix that helps a product design team translate customer requirements into
operating and engineering goals
Customer Attributes (CAs) - ✔✔represent the voice of the customer. Determined through market
research involving potential customers of the product to define the important attributes of the product
Engineering Characteristics (ECs) - ✔✔done by determining how each of the customer attributes can be
met by the new product design
Target Value - ✔✔determined by the importance of various customer attributes, the linkages to ECs,
and the desired performance of the new product relative to those of the competitors
Modular Design - ✔✔makes it possible to have relatively high product variety and low component
variety at the same time
Transformation Process - ✔✔- raw materials converted to component parts
- components requiring assembly
5 Major Operations Decisions - ✔✔- Process: How will we make it?
- Quality: How will we consistently make it to our customer's needs?
- Capacity: How much should we make?
Inventory: How much should we keep in stock?
- Supply Chain: How will we source it from our suppliers, and how will we deliver it to the customer?
, Objective of Operations Strategy - ✔✔A consistent pattern of business decisions for operations and the
associated supply chain that are linked to the business strategy and other functional strategies, leading
to a competitive advantage for the firm
New Product Design Process - ✔✔- Concept Development
→ idea generation
→ evaluation of alternative ideas
- Product Design → Preliminary Process Design
→ design of the physical product
→ design of the production process
- Pilot Production/Testing
→ testing production prototypes
→ finalizing production process
→ finalizing 'information package' specifying details
- Final Product Design
Sequential Approach - ✔✔→ functions (marketing, engineering, operations) operate without consulting
each other
→ this is the 'over the wall' approach
→ often results in misalignment
Concurrent Approach - ✔✔→ functions cooperate, work together over the same time frame
→ interaction continues throughout the development process
5 Types of Product Flow - ✔✔1) continuous process
2) assembly line
3) batch
4) job shop