Mgt 3325 - Home   Spring 2010   Email to Dr. Lyons     PatLyons Home
[ Calendar12:20 | 1:25 | Class Participation AI | App of OM | Table of Contents | Search ] 
[ Ch 1 | 2 | 3 | 4 | 5 | 6 | 6S | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | | HW1 | 2 | 3 | 4 | | Career1| 2 | 3 | 4 ]
[ SJU | TCB | CareerCenter | StudentInfo | CareerLinks | Internships ] [NYC Teaching Fellows] [ SJU Closing ] [H1N1SelfAssessment]

Ch 5 - Design of Goods and Services  

  1. *Product Selection  (p158)    (Items preceded with an * are most appropriate for class participation.)
    1. Consider threats and opportunities in the firm’s environment
           (Part of Strategy Development Process - SWOT - Chapter 2, p43)
      1. Economic changes - example, reduced interest rates (p161)
      2. Sociological and demographic changes - example, reduced family size
      3. Technological changes - example, increased use of quantitative models
      4. Political changes - examples, American Recovery and Reinvestment Act - http://recovery.gov/, collapse of USSR
    2. Consider the firm’s strengths and weaknesses
           Capital, mgt ability, productivity, market positions, technical competence
    3. Then select products that match firm’s strengths with opportunities, while avoiding threats and weaknesses. (Mgt 4329)
    4. Discussion Item - the above SWOT Analysis can be applied to the products that you will personally produce.  Give an example of an opportunity that would be appropriate for you to exploit.  What would be a corresponding strength?
    5. Discussion Item - view Coca-Cola's "Happiness Machine" video made here in Marillac Cafeteria, http://CokeURL.com/HappinessMachine.  Why did Coke choose St. John's?
  2. Product Development   (p162)
    1. Product Development Stages (Fig 5.3, p163)
    2. *Value Engineering - the process of improving a product by making it easier to produce (producability, p166, general term for manufacturability).  Value Engineering applies to both goods and services. Benefits:
      1. Reduced costs
      2. Reduced complexity
      3. Improved maintainability
  3. Defining the Product  (p174)
    1. *Written Specifications - documents that specify measurable characteristics of the product.
      1. Needed for quality assurance.  Fig 5.7 - cheese; p175, McDonald’s fries have 60 specifications
      2. Insurance product specified by policy.  (Old insurance joke: Do you want Fire and Theft, or Fire or Theft?)
    2. *Bill-of-Material - a list of components, their descriptions and the quantity of each required to make one unit of product. (Fig 5.9)
      1. The bill-of-material of a complex product may reference the bills-of-material of subassemblies.
    3. *Engineering Drawing - a document showing the dimensions, tolerances, materials and finishes of a component. (Fig 5.8)
    4. *Moment-of-Truth - the contact event between customer and service provider.  Dialog scripts are specified so that the service provider meets or exceeds customer expectations. (Fig. 5.13, p180)
      1. Dialog scripts are used for service provider training.
      2. Note by PJL - my chapter outlines are my Moment-of-Truth scripts for my contact events with you.
  4. Documents for Production  (p176)
    1. *Assembly Drawing - shows an exploded view of a product.  (Fig 5.11a)
    2. *Assembly Chart - shows in schematic form how a product is assembled. (Fig 5.11b)
    3. *Route Sheet - lists the operations necessary to produce a product.  (Useful in job shops)
  5. Linear Programming (Module B, p707)       (Quantitative models (such as Linear Programming) and the Internet are major contributors to the increase in US productivity.  For this reason, it is important for you to understand these models.  As shown below, Linear Programming can be used in Product Design to determine the best product mix.)
    1. *General Linear Programming Model
      1. Define decision variables
      2. Define objective function
      3. Define constraints
    2. Methods of Solution (For your info only)
      1. Graphical - useful with only two decision variables. (See pages 708-712).
      2. Simplex - can be used with more than two decision variables.
    3. Shader Electronics - p707
      1. Define decision variables
                X1 = number of x-pods to be produced
                X2 = number of BlueBerrys to be produced
      2. Define objective function
                Maximize profit = 7 X1 + 5 X2
      3. Define constraints
        Note: similar to high school algebra, only use £ rather than =, because we do not know before hand if all the resource will be used.
                4 X1 + 3 X2   £ 240    Electronic
                2 X1 + 1 X2   £   100    Assembly
                            Do Assigned HW
                                        (This page was last edited on January 24, 2010 .)