{"id":242,"date":"2018-06-19T19:07:40","date_gmt":"2018-06-19T19:07:40","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/suny-opmanagement\/?post_type=chapter&p=242"},"modified":"2018-07-05T15:56:30","modified_gmt":"2018-07-05T15:56:30","slug":"3-4-methods-for-improving-product-service-design","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-opmanagement\/chapter\/3-4-methods-for-improving-product-service-design\/","title":{"raw":"3.4: Methods for Improving Product & Service Design","rendered":"3.4: Methods for Improving Product & Service Design"},"content":{"raw":"
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DTUbroadcast: Thomas J. Howard's \"Integrated Product Development\"<\/h1>\r\n
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\r\n\r\nWatch this video to get an overview of the product development process and the need to improve product and service design. The video is interesting because the speaker walks you through his experience of designing a product for a company. An integrated product development process that includes steps for improving products and services that already exist is important.\r\n\r\nhttps:\/\/youtu.be\/BHRI2FMbG9A\r\n\r\n<\/div>\r\n<\/div>\r\n
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Open Ideo for IDEO: \"Introduction to IDEO\"<\/h1>\r\n
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\r\n\r\nWatch this video about OpenIDEO. This provides information on additional methods for improving product and service design using DQ. IDEO is an exemplar for the innovation process. This website provides you access to a platform that can provide you many tools and connections as you move forward in your career.\r\n\r\nhttps:\/\/youtu.be\/4vV5Z-4VN5w\r\n

10.7<\/span> Product Development<\/h1>\r\n
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Learning Objective<\/h3>\r\n
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  1. Describe the process of developing a product that meets customer needs.<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>\r\n

    Like PowerSki, every organization\u2014whether it produces goods or provides services\u2014sees Job 1 as furnishing customers with quality products. The success of a business depends on its ability to identify the unmet needs of consumers and to develop products that meet those needs at a low cost.Karl Ulrich and Steven Eppinger, Product Design and Development<\/em>, 2nd ed. (New York: Irwin McGraw-Hill, 2000), 3.<\/span> In other words, effective product development results in goods and services that can be sold at a profit. In addition, it results in high-quality products that not only satisfy consumer needs but also can be developed in a timely, cost-efficient manner. Accomplishing these goals entails a collaborative effort by individuals from all areas of an organization: operations management (including representatives from engineering, design, and manufacturing), marketing, accounting, and finance. In fact, companies increasingly assign representatives from various functional areas who work together as a project team<\/a><\/span> throughout the product development processes. This approach allows individuals with varied backgrounds and experience to provide input as the product is being developed.<\/p>\r\n\r\n

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    Product Development Is a Risky Proposition<\/h2>\r\n

    Not surprisingly, developing profitable products is difficult, and the success rate is low. On average, for every successful product, a company has twelve failures. At this rate, the firms on the Fortune<\/em> 1000 list waste over $60 billion a year in research and development.Tony Ulwick and John A. Eisenhauer, \u201cPredicting the Success or Failure of a New Product Concept,\u201d The Management Roundtable<\/em>,http:\/\/www.roundtable.com\/Event_Center\/I@WS\/I@WS_paper3.html<\/a> (accessed May 11, 2006).<\/span> There are several reasons why product development is such a risky proposition:<\/p>\r\n\r\n