Ch4&4sGSC - Chapter 4: Product and Service Design...

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Chapter 4: Product and Service Design Major Objectves 1. Customer satisfaction 2. Cost, Quality, Competitive advantage Product or Service Design Activities 1. Translate customer wants and needs into product and service requirements 2. Modify existing products/Develop new products and services 3. Construct and test prototypes Reasons for Product or Service Design Economic conditions Social and demographic conditions Competition Technology
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Legal, Ethical, and Environmental Issues Legal: FDA, OSHA, IRS, Product liability Ethical: Releasing products with defects Environmental: EPA Other Issues in Product and Service Design Extent of standardization Mass customization Product/service Reliability
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Standardization Extent to which there is an absence of variety in a product or service Standardized products are immediately available to customers Advantages of Standardization 2. Design costs are generally lower 3. More routine purchasing, handling, and inspection procedures 4. Quality is more consistent etc. Disadvantages of Standardization 1. Designs may be frozen with too many imperfections remaining. 2. High cost of design changes increases resistance to improvements. etc.
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Mass customization: A strategy of producing standardized goods or services, but incorporating some degree of customization 1. Delayed differentiation: It is a postponement tactic. It involves
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This note was uploaded on 02/14/2011 for the course ECONOMICS 131 taught by Professor Larkin,m during the Spring '11 term at CUNY City.

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Ch4&4sGSC - Chapter 4: Product and Service Design...

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