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Why is good product and service design important? Good design makes good business sense because it translates customer needs into the shape and form of the product or service and so enhances profitability.

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> Chapter 5.1 The design of products and services Why is good product and service design important? Good design makes good business sense because it translates customer needs into the shape and form of the product or service and so enhances profitability. Design includes formalizing three particularly important issues: the concept, package and process implied by the design. Design is a process that itself must be designed according to the process design principles described in the previous chapter. What are the stages in product and service design? Concept generation transforms an idea for a product or service into a concept which captures the nature of the product or service and provides an overall specification for its design. Screening the concept involves examining its feasibility, acceptability and vulnerability in broad terms to ensure that it is a sensible addition to the company's product or service portfolio. Preliminary design involves the identification of all the component parts of the product or service and the way they fit together. Typical tools used during this phase include component structures and flow charts. Design evaluation and improvement involve re-examining the design to see whether it can be done in a better way, more cheaply or more easily. Typical techniques used here include quality function deployment, value engineering and Taguchi methods. Prototyping and final design involve providing the final details which allow the product or service to be produced. The outcome of this stage is a fully developed specification for the package of products and services, as well as a specification for the processes that will make and deliver them to customers. ...read more.


> Chapter 10 - The nature of planning and control What is planning and control? Planning and control is the reconciliation of the potential of the operation to supply products and services, and the demands of its customers on the operation. It is the set of day-to-day activities that run the operation on an ongoing basis. What is the difference between planning and control? A plan is a formalization of what is intended to happen at some time in the future. Control is the process of coping with changes to the plan and the operation to which it relates. Although planning and control are theoretically separable, they are usually treated together. The balance between planning and control changes over time. Planning dominates in the long term and is usually done on an aggregated basis. At the other extreme, in the short term, control usually operates within the resource constraints of the operation but makes interventions into the operation in order to cope with short-term changes in circumstances. How does the nature of demand affect planning and control? The degree of uncertainty in demand affects the balance between planning and control. The greater the uncertainty, the more difficult it is to plan, and greater emphasis must be placed on control. This idea of uncertainty is linked with the concepts of dependent and independent demand. Dependent demand is relatively predictable because it is dependent on some known factor. Independent demand is less predictable because it depends on the changes of the market of customer behaviour. The different ways of responding to demand can be characterized by differences in the P:D ratio of the operation. ...read more.


Most quality planning and control involves sampling the operation's performance in some way. Sampling can give rise to erroneous judgments which are classed as either type I or type II errors. Type I errors involve making corrections where none is needed. Type II errors involve not making corrections where they are in fact needed. How can statistical process control help quality planning and control? Statistical process control (SPC) involves using control charts to track the performance of one or more quality characteristics in the operation. The power of control charting lies in its ability to set control limits derived from the statistics of the natural variation of processes. These control limits are often set at � 3 standard deviations of the natural variation of the process samples. Control charts can be used for either attributes or variables. An attribute is a quality characteristic which has two states (for example, right or wrong). A variable is one which can be measured on a continuously variable scale. Process control charts allow operations managers to distinguish between the 'normal' variation inherent in any process and the variations which could be caused by the process going out of control. How can acceptance sampling help quality planning and control? Acceptance sampling helps managers to understand the risks they are taking when they make decisions about a whole batch of products on the basis of a sample taken from that batch. The risks of any particular sampling plan are shown on its operating characteristic (OC) curve. However, some of its assumptions make acceptance sampling controversial. ...read more.

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