Effective product strategy requires selecting, designing, and
defining a product and then transitioning that product to
production. Only when this strategy is carried out effectively
can the production function contribute its maximum to the
organization. The operations manager must build a product
development system that has the ability to conceive, design,
and produce products that will yield a competitive advantage
for the firm. As products move through their life cycle
(introduction, growth, maturity, and decline), the options
that the operations manager should pursue change. Both
manufactured and service products have a variety of techniques
available to aid in performing this activity efficiently.
Written specifications, bills of material, and engineering
drawings aid in defining products. Similarly, assembly
drawings, assembly charts, route sheets, and work orders are
often used to assist in the actual production of the product.
Once a product is in production, value analysis is appropriate
to ensure maximum product value. Engineering change
notices and configuration management provide product
documentation.