Product Design and Quality

Read the Forbes article, “The Forces That Are Transforming How Products Are Made.” Based on the content presented in the article, what forces and important organizational activities enable a firm to build quality into its products? Explain each of these along with their benefits. Your initial post should include examples and be at least 200-250 words. Respond to at least two of your classmate’s posts.

There are several forces and organizational activities that allow companies to build quality into their products. According to Ambruch (2013), among these are smart products and connectivity, servitization, digitization, personalization, globalization, and regulation. These factors are important if the company hopes to stay competitive in the modern global economy.

Smart products and connectivity has enabled both companies and consumers the ability to enjoy ubiquitous computing in modern society, we are connected with each other in both personal and business matters on a constant global scale. As technology continues to increase, there is not only an increased ability to communicate between customers and the companies that serve them, but an increased communication between computerized devices. For example, when a retail store scans the barcode on an item as it is sold, the inventory can be automatically updated by the register communicating with other computers. Additionally, as inventories become low, the retailer’s computer can automatically communicate with the supplier’s computer and initiate an automatic reorder.

Servitization is also improved through smart devices and connectivity. Because ubiquitous computing is now possible, companies and specifically their customer relationship management (CRM) programs can stay in constant contact with their customers. This allows for real-time feedback and instant data collection and processing. This enables company to meet the consumer’s needs in a more efficient manner.

Digitization has allowed companies to improve design, manufacturing, logistics, and marketing efforts through global collaboration. Additionally, product designs can go through build simulations on a computer screen prior to actual production. This enables the manufacture to work out many of the kinks in a product design that may have looked good on paper but lack in functionality and do not serve the intended purpose of the original design.

Personalization allows companies to more effectively monitor their CRM programs and effectively communicate with their customers. This allows a company to better respond to a customer’s needs and wants. Simply put, new technologies and personalization has taken the guesswork out of product improvements and design.

Globalization has not only increased our communication abilities, but it has changed all aspects of how we conduct business. Inputs on design, service, and logistics can now be effectively relayed between anyone across the globe. Additionally, globalization has allowed us to build, market and sell to anyone from any location.

Operating on a global economy provides many advantages. However, global regulatory compliance is necessary. Regulations on what is deemed acceptable in regards to health and safety while complying with environmental concerns, is not a global standard. What is acceptable in one country, may not be acceptable in another. Companies need to be aware of the different regulations between the different geographical areas where they conduct business, in order to succeed.

References

Ambruch, B. (2013). The forces that are transforming how products are made. Forbes. Retrieved from http://www.forbes.com/sites/ptc/2013/10/21/the-six-things-that-are-transforming-how-products-are-made/

Vonderembse, M. & White, G. (2013). Operations management. Retrieved from https://content.ashford.edu/books/AUBUS644