1. Design of Goods and Services

2. Introduction What: Design of goods and services
Where: Answer “what should we produce”
Why: Produce goods to achieve the mission

3. Product Strategy and Competitive Advantage
Differentiation Strategy
Cost-Leader Strategy
Response Strategy
Product Decision: develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage

4. Where New Product Opportunities Come From
Economic Change
Sociological and Demographic Change
Technological Change
Political / Legal Change
Other Changes

5. Product Life Cycle Profit Loss Introduction Growth Maturity Decline
Cost of
Development
& Manufacture
Sales Revenue
Sales, Cost & Profit .
Profit
Cash flow
Loss
Time
Introduction
Growth
Maturity
Decline

6. Life Cycle and Strategy
Strategies change as products move through their life cycle
Introduction
Growth
Maturity
Decline

7. Product By Value Analysis
Individual Dollar Contribution
Total Annual Dollar Contribution
Stampede Pancakes $3
$2.2M
Whoop-up Bacon
$2.50
$3.4M

8. Product Development Stages
Idea Generation
Does Firm Have Ability to Carry Out?
Customer Requirements
Functional Specification
Product Specification
Design Review
Test Market
Introduction
Evaluation

9. Quality Function Deployment
Identify customer wants
Identify how product will satisfy wants
Relate customer wants to product hows
Identify relationships between hows
Develop importance ratings
Evaluate competing products

10. House of Quality Relationship Between Things We Can Do What We Can Do
The
Customer
Wants
Cust Importance
Competitors

11. Organizing for Product Development
Classic Approach
Research and Development
Engineering
Manufacturing
Departments hand product off

12. Organizing for Product Development
Product Development Team Approach
Team moves product from requirements definition to production
Concurrent Engineering

13. Manufacturability Value Engineering
Focuses on pre-production design improvement
Reduces costs of production

14. Product Design Issues Robust Design Modular Design
Computer Aided Design
Value Analysis
Green Manufacturing

15. Time-Based Competition
Rapidly develop products and move them to market
Acquire a Firm
Joint Venture
Alliance

16. Defining the Product Engineering Drawing Bill of Materials
Make-or-Buy Decision
Assembly Drawing
Assembly Chart
Route Sheet
Work Order
Engineering Change Notice