Ensayo

Product design and process choice
1. New product development
New product development as a strategic need
* Technological innovation is now often the most important driver of competitive success.
* Many firms receive more than one-third of their sales and profits from products developed within the past five years
* Its increasing importance has been driven largely by:
*Globalization of markets
* Creation of advanced techniques that enable more rapid product design and allow shorter production runs to be economically feasible.
Both product and process innovations are critical
Before they want things to work (FUNCTIONALITY)
Now functionality is not enough. We live in a society with excess supply where firms need to add more and more value to their products.(DESIGN, STYLE, USER EXPERIENCE…)
Which is the most successful MP3 in the world?
iPod. Technologically speaking is one of the worst and it is very expensive, but Apple uses marketing very well and has good designs.
What is a new product?
1. A product that satisfies a new customer need
2. A product that satisfies a customer need that already was satisfied but better (offers more value or moreefficiency at a lower price)
Radical innovations vs. incremental innovations
The degree to which and innovation represents a departure from existing practices (How original is it?)
Radicalness means newness (to the world, industry, a firm…) and differences (significant or marginal from existing products and processes).
* Radical (disruptive): very new and different from prior solutions;embody new knowledge but it involves a high degree of risk.
* Incremental: makes a relatively minor change from (or adjustment to) existing prices (90%)
Firms need to find a balance in their innovations
Risk: technological uncertainty and demand uncertainty
An innovation that is radical to one firm may seem incremental to another. For example, digital cameras.
For Kodak it was a radicalinnovation because the core operation of it was films. However, for Sony it was an incremental innovation because they used to sell and manufacture video cameras, video electronics…i.e. it was an expert on electronics. The difference lies on the core operation of the company.
What are the objectives of the new product development process?
1. Maximizing the product´s fit with customer requirements(maximize value).
2. Minimizing the development cycle time (minimize time)
3. Controlling development costs (minimizing costs)
Development efforts must be not only effective, but also efficient.
Problem: coordination and cooperation (to solve the problem firms use cross-functional NPD teams). Cross-functional NPD teams to lead and manage the development process for the project.
How toorganize for innovation?
NPD requires activities that are responsibility of different departments.
Product development system
1) Ideas (from many sources)
2) Abilities
3) Customer requirements
4) Functional specifications* Slope for design and Scope of product
5) Product specifications* engineering teamsdevelopment team
6) Design review*
7) Test market*
8) Introduction
9) Evaluation*
*4. How the product will work?
*5. How the product will be made?
*6. Are these product specifications the best way to meet customer requirements?
*7. Does the product meet customer requirements?
*9. Success?

2. Layout
The layout is the configuration of departments, work centers and equipment, whosedesign involves particular emphasis on movement of work (customers and materials) through the system.
Why is the layout decision so important?
It is so important for three different things:
1. Requires significant investments of time and effort.
2. They implies long-term decisions
3. It has a significant impact on cost and efficiency production.
Types of layout
Static product...