Operations Management Deals With Planning, Term Paper

The name chosen for the new product must have no negative connotation in any language.

After all these have been established, it is time for the new product to be tested. Testing represents the final and most important filter the product must go through before being manufactured on a large scale and launched. The test’s objectives are connected to the elimination of any uncertainties emerged in the technical production phase or in the commercial preparation of the product. Testing consists in verifying the accordance between the prototype on the one hand and the existent standards on the other hand.

Launching the product is the final step in the product design process. It establishes the launching period (connected to the product’s nature: current, seasonal or strictly seasonal), the launching area (it is connected to the distribution strategy), choosing the most suitable distribution channels (long circuit or short circuit), market preparation (creating curiosity from the potential customers for the new product that will be launched), controlling the launch of the new product, and analyzing its evolution.

The product design process presented above has been established in complete accordance with the company’s both general strategy and marketing strategy. The company’s marketing strategy is based on innovation, on creating new products that can meet the customers’ requirements in matters of quality, price and accessibility.

Performance objectives

Performance planning is the most important phase of performance management (Performance Management Planning). The performance objectives for this process are related to time, cost, and quality. The company’s performance objectives come from three major categories: maintenance objectives, problem-solving or improvement objectives, and innovative objectives. For the cosmetics company discussed above the performance objectives are:

Maintenance objectives:

Continuing to provide research profiles within the next six months

Continuing the company’s research for new products within the next year

Continuing the development process for the company’s existent products within the next year

Improvement objectives:

Increase the company’s profitability

Increase the company’s share-market and gain better positioning on the market

Increase the company’s sales

Innovative objectives:

Employees will benefit from training courses so that they improve their future work performance.

As one may observe, the time schedule for these objectives are in disharmony with the product design process. On the one hand, these objectives are expected to be attained in very short periods of time: six months to one year. On the other hand, the product design process is a very long one, with many important steps to be followed, requiring great amounts of time, financial capital, and human capital. In other words, the product design process that the company is currently implementing cannot contribute to attaining the performance objectives established by the company’s top management. The current product design process will produce its effects on a long-term period of time.

Evaluation of the selected operation

The selected criteria for evaluating the company’s product design process are controlling and organizing. Operation control refers to creating and maintaining a positive workflow by utilizing the available resources and facilities (Wikipedia, 2007). As presented above in the operation’s design, the company is very preoccupied with continuously analyzing its available necessary resources, whether they are technical, financial or human. The company’s employees understand that a positive and continuous workflow is depending entirely on controlling and forecasting the company’s resources.

Operation organizing refers to organizing resources so that they ensure effective production of services and goods. This criterion is in strong connection with control, presented above. The company seems to be organizing its resources (material, financial, and human resources) very well, so that the production process is not affected by potential gaps in the resources stocks.


The operation design model presented above is a positive example of product and service design. The design presented above is a very well-structured process, containing all the steps that need to be followed in order to create new products and in order to ensure their future commercial success. The product design process in a very long and consistent one, engaging large amounts of time, financial resources and human resources as well. However, its success is based on its complexity: the more complex and well-structured it is, the more chances of success it has.

Appendix no. 1

Product renewal process plan

Appendix no. 2

The five structuring levels of the product

Reference List

McNamara, Carter. “Operations Management.” Free Management Library. 2007. Retrieved April 23, 2007 at http://www.managementhelp.org/ops_mgnt/ops_mgnt.htm.

Operations management.” Wikipedia, the free encyclopedia. 2007. Retrieved April 23, 2007 at http://en.wikipedia.org/wiki/Operations_management.

Product design.” Wikipedia, the free encyclopedia. 2007. Retrieved April 24, 2007 at http://en.wikipedia.org/wiki/Product_design.

Industrial design.” Wikipedia, the free encyclopedia. 2007. Retrieved April 24, 2007 at http://en.wikipedia.org/wiki/Industrial_design.

Erlendsson, Jon. “Creativity and Creativity Methods.” Retrieved April 24, 2007 at http://www.hi.is/~joner/eaps/mocrea1.htm.

Performance Management Planning.” University of Southern California. Office of Development Research. Retrieved April 24, 2007 at http://www.usc.edu/dept/source/performance.htm.

McNamara, Carter. “Product and Service Management (recurring activities to manage a product or service).” Product and Service Management. 2007. Retrieved April 24, 2007 at http://www.managementhelp.org/prod_mng/prod_mng.htm.

Strategic situation analysis (analysis and planning models)

Company’s objectives system

Marketing objectives system

Analysis of the search fields for new product ideas

Opportunity analysis:

new product objectives developing the new product concept testing the acceptability distributing the product on the market


Core product

Improved product

Potential product

Generic product

Expected product

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