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Lecture Notes_Chapter 05 BUS508

Lecture Notes_Chapter 05 BUS508 - BUS 508 Lecture Notes...

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BUS 508 Lecture Notes Chapter 5 The Design of products and services Nature and Purpose of the Design Activity o Products, services and the processes which produce them all have to be designed. o Decisions taken during the design of a product or service will have an impact on the decisions taken during the design of the process which produces those products or services and vice versa. o Example—The troubled history of the Airbus A380 --What were the causes of the delays in the ‘time to market’ of the Airbus A380? --What were the effects of the delays in the ‘time to market’? The Design of Products/Services and Processes are Interrelated and Should be Treated Together o Products and services should be designed in such a way that they can be created effectively. o Product/service design has an impact on the process design and vice versa. o Processes should be designed so they can create all products and services which the operation is likely to introduce. The Overlap of Activities is Greater in Service Design o In manufacturing operations overlapping the activities of product and process design is beneficial. 1
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o In most service operations the overlap between service and process design is implicit in the nature of service. Why is design so important? UK Design Council Survey o Design helps businesses connect strongly with their customers. o 90% of businesses growing rapidly say design is significant to them, only 26% of static companies say the same. o Design reduces costs by making processes more efficient. It can also reduce the time to market for new products and services. o Almost 70% of companies seeing design as integral have developed new products and services in the last three years, compared to only a third of businesses overall.
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