Product Design and Process Selection

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C H A P T E R

Product Design and Process Selection

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B e f o r e s t u d y i n g t h i s c h a p t e r y o u s h o u l d k n o w o r, i f n e c e s s a r y, r e v i e w

1. Differences between manufacturing and service organizations, Chapter 1, pp. 4 – 6. 2. Differences between strategic and tactical decisions, Chapter 1, pp. 6 – 8. 3. Competitive priorities, Chapter 2, pp. 28 – 33.

LEARNING OBJECTIVES

After completing this chapter you should be able to

1 2 3 4

Define product design and explain its strategic impact on the organization. Describe the steps used to develop a product design. Use break-even analysis as a tool in deciding between alternative products. Identify different types of production processes and explain their characteristics.

5 6 7 8

Describe the steps used in process design and selection. Understand how to use a process flowchart. Understand current technological advancements and how they impact process design. Understand issues of designing service operations.

CHAPTER OUTLINE

Product Design 42 Steps in Product Design 44 Links to Practice: IBM Corporation 45 Factors to Consider in Product Design 48 Process Selection 52 Relationship between Product Design and Process Selection 59 Links to Practice: Babcock & Wilcox Company 60 Manufacturing Technology Decisions 62 Links to Practice: Performing Robotic Surgery 65 Designing Services 66 OM Across the Organization 70 OM Is Everywhere 71 Case: Biddy’s Bakery (BB) 74

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Have you ever been with a group of friends on a Friday night and decide to order pizzas? One person wants pizza from Pizza Hut because he likes the taste of stuffed-crust pizza made with cheese in the crust. Someone else wants Donato’s pizza because she likes the unique crispy-thin crust. A third wants pizza from Spagio’s because of the wood-grilled-oven taste. Even a simple product like a pizza can have different...