Design of

Goods and
Services
1 Goods and
Services
Selection
“ Product selection is
choosing the right good or
service to provide
customers and clients.

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Product Strategy Options
Product decisions are fundamental to an
organizaton’s strategy and have major
implications throughout the operations
functions

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Generation of New
Product Opportunities
￮ Understanding the customer
￮ Economic change
￮ Sociological and demographic
change
￮ Technological change
￮ Political/legal change
￮ Other changes

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Product Life Cycle
￮ Introduction
￮ Research, product
development, modification,
supplier development
￮ Growth
￮ Stabilization of product
￮ Maturity
￮ Competitors are
established
￮ Decline
￮ Products are dying
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2
Product
Development
Product Development
￮ Innovation of products that offer
additional benefits to customer and
clients
￮ It may involve modification of an
existing product or development of a
new product

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Product Development
Stages
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3
Issues for
Product
Development
Issues for Product
Development
￮ Robust Design
￮ Modular Design
￮ Computer – Aided Design
￮ Virtual Reality
￮ Value Analysis

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4
Defining the
Product
Defining the Product
￮ Bill of Materials
￮ Make – or – Buy Decisions
￮ Group Technology

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5
Documents
for Production
Documents for
Production
Assembly Drawing Assembly Chart Route Sheet
An exploded view A graphic means A listing of the
of the product, of identifying how operations
usually via three- components flow necessary to
dimensional or into produce the
isometric drawing. subassemblies component with
and ultimately the material
into a final specified in the bill
product. of material.

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Documents for
Production
Work Order Engineering Configuration
Change Notice Management
An instruction to
make a given A correction or A system by
quantity of a modification of an which a product’s
particular item, engineering planned and
usually to a given drawing or bill of changing
schedule. material. components are
accurately
identified and for
which control and
accountability of
change are
maintained.

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6
Service
Design
Adding Service
Design
Limit the Options Delay Modularization
Customization
Customers may Modularize the
participate in the Design the service so that
design of the product so that customization
service, design customization is takes the form of
specifications delayed as late in changing
may take the form the process as modules.
of everything from possible.
a menu, to a list of
options

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Adding Service
Design
Automation Moment of Truth
Divide the the moment that
services into small exemplifies,
parts, and identify enhances, or
those parts that detracts from the
lend themselves customer’s
to automation. expectations.

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Thanks!

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Credits

￮ Heizer, J., Render, B. (2014).

Operations Management. New
Jersey: Prentice Hall
￮ Presentation template by
SlidesCarnival
￮ Photographs by Unsplash

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