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importance of production_management_system

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1.wat steps shud b taken for systematic development of new product?
2.State the objectives & factors affecting the design of product?
3.Wat are several stages involved in designing of product?
4.Diff between continuous & intermittent production system?
5.Objectives of production management?
2.State the objectives & factors affecting the
design of product?
Objectives
Product design is cross-functional, knowledge-intensive work that has become
increasingly important in today's fast-paced, globally competitive environment. It is a
key strategic activity in many firms because new products contribute significantly to
sales revenue. When firms are able to develop distinctive products, they have
opportunities to command premium pricing. Product design is a critical factor in
organizational success because it sets the characteristics, features, and performance of
the service or good that consumers demand. The objective of product design is to create
a good or service with excellent functional utility and sales appeal at an acceptable cost
and within a reasonable time. The product should be produced using high-quality, low-
cost materials and methods. It should be produced on equipment that is or will be
available when production begins. The resulting product should be competitive with or
better than similar products on the market in terms of quality, appearance,
performance, service life, and price.
THE INCREASING IMPORTANCE
OF PRODUCT DESIGN
Product design is more important than ever because customers are demanding greater
product variety and are switching more quickly to products with state-of-the-art
technology. The impacts of greater product variety and shorter product life cycles have
a multiplicative effect on the number of new products and derivative products that need
to be designed. For example, just a few years ago, a firm may have produced four
different products and each product may have had a product life cycle of ten years. In
this case, the firm must design four new products every ten years. Today, in order to be
competitive, this firm may produce eight different products with a life cycle of only five
years; this firm must introduce eight new products in five years. That represents sixteen
new products in ten years or one product every seven and one-half months. In this fast-
paced environment, product design ceases to be an ad hoc, intermittent activity and

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becomes a regular and routine action. For an organization, delays, problems, and
confusion in product design shift from being an annoyance to being life threatening.
PRODUCT DESIGN AND SUPPLY
CHAIN MANAGEMENT
Product design can also be an important mechanism for coordinating the activities of
key supply chain participants. As organizations outsource the production of sub-
assemblies and components, they also may be asking suppliers to participate in product
design. As they outsource design capabilities it is essential that they manage and
coordinate the flow of information among the supply chain participants. This can be
especially important as firms outsource components to two or more suppliers. Now,
there may be important design interfaces among two, three, or more suppliers. These
interfaces must be properly managed to ensure cost effective and timely designs.
Clearly, information and communication technologies become important parts of this
effort.
PRODUCT DESIGN: A KEY
TO ORGANIZATIONAL SUCCESS
Product design is an essential activity for firms competing in a global environment.
Product design drives organizational success because it directly and significantly impacts
nearly all of the critical determinants for success. Customers demand greater product
variety and are quick to shift to new, innovative, full-featured products. In addition,
customers make purchase decisions based on a growing list of factors that are affected
by product design. Previously, customers made purchase decisions based primarily on
product price and/or quality. While these factors are still important, customers are
adding other dimensions such as customizability, order-to-delivery time, product safety,
and ease and cost of maintenance. Environmental concerns are expanding to include
impacts during production, during the product's operating life, and at the end of its life
(recycle-ability). In addition, customers demand greater protection from defective
products, which leads to lower product liability losses. Safer and longer lasting products
lead to enhanced warrantee provision, which, in turn, impact customer satisfaction and
warrantee repair costs.
Programs and activities are being put in place so organizations can cope with these
dimensions. Organizations are embracing concepts such as mass customization, design
for manufacturing and assembly, product disposal, quality function deployment, and
time-based competition. They are using technology such as rapid prototyping and
computer-aided design to examine how products function, how much they may cost to

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1.wat steps shud b taken for systematic development of new product? 2.State the objectives & factors affecting the design of product? 3.Wat are several stages involved in designing of product? 4.Diff between continuous & intermittent production system? 5.Objectives of production management? 2.State the objectives & factors affecting the design of product? Objectives Product design is cross-functional, knowledge-intensive work that has become increasingly important in today's fast-paced, globally competitive environment. It is a key strategic activity in many firms because new products contribute significantly to sales revenue. When firms are able to develop distinctive products, they have opportunities to command premium pricing. Product design is a critical factor in organizational success because it sets the characteristics, features, and performance of the service or good that consumers demand. The objective of product design is to create a good or service with excellent functional utility and sales appeal at an acceptable cost and within a reasonable time. The product should be produced using high-quality, low-cost materials and methods. It should be produced on equipment that is or will be available when production begins. The resulting product should be competitive with or better than similar products on the market in terms of quality, appearance, performance, service life, and price. THE INCREASING IMPORTANCE OF PRODUCT DESIGN Product design is more important th ...
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