15                      Chapter Objectives
      Be able to:
      •    Explain why product design is important to the success of a business.
      •    Describe the six dimensions of product design that are of particular interest 
           to operations and supply chain managers. 
      •    Describe the five phases of product and service development and explain 
           the difference between sequential development and concurrent 
           engineering. 
      •    Discuss the different roles played by areas such as engineering and 
           accounting during the development process.
      •    Describe some of the most common approaches to improving product and 
           service designs, including the Define-Measure-Analyze-Design-Verify 
           (DMADV) process, quality function deployment (QFD), design for 
           manufacturability (DFM), and target costing. 
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         15                        Product Design and 
                                            Development
         Product Design – The characteristics or features of a 
             product or service that determine its ability to meet 
             the needs of the user.
         Product Development Process– The overall process 
             of strategy, organization, concept generation, 
             product and marketing plan creation and 
             evaluation, and commercialization of a new 
             product.              © Product Development and Management Association
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         15 Four Reasons for Developing 
                            New Products and Services
         New products or services can give firms a 
             competitive advantage in the marketplace.
         New products or services provide benefits to the 
             firm.
         Companies develop new products or services to 
             exploit existing capabilities.
         Companies can use new product development to 
             block out competitors.
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         15 Product Design Dimensions
         Repeatability
         Testability 
         Serviceability 
         Product volumes
         Product costs
         Match between the design and existing capabilities
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         15 Product Design Dimensions
         Repeatability
               Consistent production 
               Tolerance to manufacturing variations (robustness)
         Testability
               Ease with which critical components or functions can be 
                  tested during production
         Serviceability
               Ease of repair, service, and evaluation
                         Copyright © 2013 Pearson Education, Inc. publishing as Prentice Hall              15 - 6