Agenda

1
Agenda

• Ch. 11 - Product Innovation Process
• Collect Problem 10 - p 540
• Check on Case and Presentation Progress

2
Problem 10.16
3
Product Trends

• Shift to Service Economy
• Globalization of Markets
• Rise of Consumerism
• Time / Speed
• Quality
• Litigation
• Ecological Correctness / Green Movement

4
Types of Service Buyers(Fitzsimmons, date
unknown)

• Economizers
• Personalized Care
• Convenience Seekers
• Ethical / Loyal Customers

5
Types of Services

• Zero-Say
• Minimum Say
• Mandated with Options
• Elective Services
• Luxury

6
Matrix of Service Processes(Schmenner, 1986)
Customization
Low
High
Service Factory
Service Shop
Low
Labor Intensity
Mass Service
Professional Service
High
7
Product Bundle

• Type of Service

Type of Buyer
Product Bundle
Type of Service Process
Supporting Facilities Supporting Goods Explicit
Services Implicit Benefits
8
Product Architecture

• Continuum

Standard
Custom
Examples of each? Cost/Benefit of each
end? Whats in the middle?
9
Standardization

• Lower Product-Design Costs
• Lower Component-Design Costs
• Lower Production Costs
• Lower Delivery Costs
• Quicker Delivery
• Recognition
• Simplified Value Comparisons

10
Approaches

• Over the wall
• Formal Committee
• Early Supplier Involvement
• Concurrent Engineering

11
Tools for Product Innovation

• Design for Manufacture (DFM) - Integrate the
  product designers with the product makers
• Design for Assembly (DFA) - reduce assembly costs
  and increase quality by making assembly easier
• Design for Post-Sale Service
• Design for Recycling

12
Midterm Topics

• Elements of value
• Processes
• Decision making process
• Pareto analysis
• Check sheets
• Benchmarking
• Process flow analysis

• Reengineering
• Qualitative forecast
• Quantitative forecast
• Demand management
• Product architecture
• Services
• Process categories
• Standardization