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College of Business Administration, CSUS

MGMT 180 – Operations Management

Chapter 4 – Product and Service Design

Learning Objectives

❑ Explain the importance of product design to the success of a business.

❑ Define the four product strategies – market leader, follow-the-leader, application-oriented, and production efficiency.

❑ Discuss the main advantage and disadvantage of each of the four product strategies.

❑ Describe how the team approach to product design can be implemented in practice.

❑ Explain the major advantages of the team approach to product design.

❑ Define the terms standardization, simplification, reliability, robust design, design for manufacturability, design for recycling, design for disassembly, design for remanufacturing, and component commonality. Explain the importance of those concepts.

❑ Explain how the extent of customer contact affects the design of a service delivery system.

❑ Explain how the degree of labor intensity affects the design of a service delivery system.

❑ Provide an example of a service delivery using the Internet, mail contact, on-site technology, phone contact, face-to-face tight specifications, face-to-face loose specifications, and face-to-face total customization.

Issue to Think About

How will the Internet affect the future of service delivery systems?

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